Document:

Exhibit 10.16

SECOND AMENDMENT

This SECOND AMENDMENT (this “Amendment”),
is entered into as of June 28, 2006 (the “Second
Amendment Effective Date”), by and among DYNCORP INTERNATIONAL LLC
(successor by merger to DI FINANCE SUB LLC), a Delaware limited liability
company (“Company”), DYNCORP INTERNATIONAL INC. (formerly known
as DI ACQUISITION CORP.), a
Delaware corporation (“Holdings”), and CERTAIN SUBSIDIARIES OF COMPANY (together
with Holdings, the “Guarantors”),
as guarantors, the lenders party
hereto, GOLDMAN SACHS CREDIT PARTNERS L.P. (“GSCP”), as
administrative agent (together with its permitted successors in such capacity, “Administrative
Agent”), and BANK OF AMERICA, N.A., as issuing bank (together
with its permitted successors in such capacity, “Issuing Bank”).

RECITALS

WHEREAS, Company, the Guarantors, the lenders from time to time party thereto
(the “Lenders”), GSCP, as Administrative
Agent, Collateral Agent, joint lead arranger and joint book runner, Bear
Stearns Corporate Lending Inc., as Syndication Agent, Bear, Stearns &
Co. Inc., as joint lead arranger and joint book runner, and Bank of America,
N.A., as Issuing Bank and Documentation Agent, are parties to that certain
$420,000,000 Credit and Guaranty Agreement dated as of February 11, 2005
(as amended pursuant to that certain First Amendment and Waiver dated as of January 9,
2006, and as further amended, restated supplemented or otherwise modified from
time to time, the “Existing Credit Agreement”).

WHEREAS, Company has requested that the Existing
Credit Agreement be amended to, among other things, provide for new term loans
(the “New Term Loans”). The cash proceeds of
any such New Term Loans will be used solely (a) to repay in full the
outstanding principal amount of, and accrued interest on, all Existing Term
Loans of Existing Term Loan Lenders as of the Second Amendment Effective Date
and (b) for other general corporate purposes. Company has appointed GSCP
to act as sole lead arranger, sole bookrunner and syndication agent for this
Amendment.

WHEREAS, certain existing Lenders with outstanding
Term Loans (each, an “Existing Term Loan Lender”)
that execute and deliver a signature page to this Amendment specifically
in the capacity of a “Continuing Lender” (a “Continuing
Lender”) are willing to make New Term Loans in an aggregate
principal amount up to, but not in excess of, the aggregate principal amount of
such Existing Term Loan Lender’s outstanding Term Loans immediately prior to
the Second Amendment Effective Date (“Existing Term Loans”)
subject to the terms and conditions of the Amended Credit Agreement (as defined
below).

WHEREAS, the Requisite Lenders are willing to effect
such amendment (and the other amendments set forth herein), and the Continuing
Lenders are willing to make New Term Loans as contemplated hereby, in each case
on the terms and subject to the conditions as more particularly set forth in
the Amended Credit Agreement.

WHEREAS,
Company has requested
that the Administrative Agent be given the authority by the Lenders holding Revolving
Commitments to make such modifications to the Amended Credit Agreement at any
time prior to the Revolving Commitment Termination Date, so as to increase the
Revolving Commitments by up to $30,000,000.

 

WHEREAS, attached hereto as Exhibit A is a conformed copy of the Existing
Credit Agreement which contains all of the specific modifications, amendments
and supplements necessary or desirable in connection with the New Term Loans
and certain other amendments requested by Company (including the schedules and
exhibits thereto, the “Amended Credit Agreement”).

NOW, THEREFORE, in consideration of the premises made hereunder, and for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, hereby agree
as follows:

Section 1.               Definitions. Unless
otherwise expressly defined herein, all capitalized terms used herein and
defined in the Amended Credit Agreement shall be used herein as so defined.

Section 2.               Amendments to the Existing
Credit Agreement. The Existing Credit Agreement is hereby amended and
modified in its entirety from and after the Second Amendment Effective Date as
reflected in the Amended Credit Agreement. Any provision of the Existing Credit
Agreement which is different from that set forth in the Amended Credit
Agreement shall be superseded in all respects by the provisions of the Amended
Credit Agreement.

Section 3.               Waiver of Obligation to Obtain
Certain Landlord Personal Property Collateral Access Agreements and Foreign
Pledges. Subject to the satisfaction of the conditions set forth in Section 4,
Administrative Agent and the Requisite Lenders hereby permanently waive the
obligation of the Credit Parties to (a) use their best efforts to obtain
Landlord Personal Property Collateral Access Agreements with respect to the
Leasehold Properties located at 8445
Freeport Parkway, Irving, Texas 75063 and 6500 West Freeway Fort Worth,
Texas 76116 and (b) (i) deliver all documentation necessary to
perfect the Collateral Agent’s security interest in 65% of the voting stock of
DynCorp (Australia) Pty Ltd. and DynCorp International FZ-LLC (collectively,
the “Excluded Subsidiaries”) and (ii) complete
all actions necessary to perfect such security interest in the Excluded Subsidiaries
in Australia and the United Arab Emirates.

Section 4.               Conditions Precedent. This
Amendment shall become effective on the Second Amendment Effective Date upon
satisfaction of each of the conditions precedent set forth in Sections 3.2 and
3.3 of the Amended Credit Agreement.

Section 5.               Designated Senior Debt. Each
of the Company and the Guarantors party hereto that are “Guarantors” as such
term is defined in the Senior Subordinated Note Agreement hereby specifically
designate the “Senior Debt” (as defined in the Senior Subordinated Note
Agreement) incurred under the Existing Credit Agreement, this Amendment and the
Amended Credit Agreement as “Designated Senior Debt” for purposes of the Senior
Subordinated Note Agreement.

Section 6.               Representations and Warranties;
Lenders’ Acknowledgment.

(a)           Each Credit Party hereby represents
and warrants to the Agents and the Lenders that, as of the date hereof and
after giving effect to this Amendment, (i) all representations and
warranties set forth in the Amended Credit Agreement and in any other Credit
Document are true and correct in all material respects as if made again on and
as of such date (except those, if any, which by their terms specifically relate
only to an earlier date, in which case such representations and warranties
shall have been true and correct in all material respects as of such earlier
date), (ii) no event shall have occurred and be continuing or would result
from the making of the New Term Loans that would constitute a Default or Event
of Default, and (iii) the Amended Credit Agreement and all other Credit
Documents are and remain legal, valid, binding and enforceable obligations of
the Credit Parties in accordance with the terms thereof 

 

 2
 

except
as may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws relating to or limiting creditors’ rights generally or by
equitable principles (regardless of whether enforcement is sought in equity or
at law).

(b)           Each Lender, by delivering its
signature page to this Amendment and, if applicable, funding its New Term
Loan on the Second Amendment Effective Date, shall be deemed to have
acknowledged receipt of, and consented to and approved, each Credit Document
and each other document required to be approved by any Agent, Requisite Lenders
or Lenders, as applicable, on the Second Amendment Effective Date.

(c)           Each Continuing Lender hereby commits
to make New Term Loans on the Second Amendment Effective Date in the manner
contemplated by Section 2.1(a) of the Amended Credit Agreement.

(d)           Each Existing Term Loan Lender
executing this Amendment that is not a Continuing Lender hereby agrees to the
making of the New Term Loans but does not hereby undertake any commitment to
make New Term Loans.

Section 7.               Survival of Representations
and Warranties. All representations and warranties made in this Amendment,
the Amended Credit Agreement or any other Credit Document shall survive the
execution and delivery of this Amendment, and no investigation by Agents or
Lenders shall affect the representations and warranties or the right of Agents
and Lenders to rely upon them. If any representation or warranty made in this
Amendment or the Amended Credit Agreement is false in any material respect as
of the date made or deemed made, then such shall constitute an Event of Default
under the Amended Credit Agreement. The agreements of the Lenders set forth in
Sections 2.17, 9.3(b) and 9.6 of the Amended Credit Agreement shall
survive the payment of the Loans, the cancellation or expiration of the Letters
of Credit and the reimbursement of any amounts drawn thereunder, and the
termination thereof.

Section 8.               Reference to Agreement. Each
of the Credit Documents and any and all other agreements, documents or
instruments previously executed and/or delivered pursuant to the terms of the
Existing Credit Agreement are hereby amended so that any reference in such
Credit Documents to the Credit Agreement, whether direct or indirect, shall
mean a reference to the Amended Credit Agreement. This Amendment shall
constitute a Credit Document under the Amended Credit Agreement.

Section 9.               Governing Law. THIS
AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.

Section 10.             Execution. This Amendment
may be executed in any number of counterparts and by different parties hereto
in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Amendment by telecopier  or electronic
mail shall be effective as delivery of a manually executed counterpart of this
Amendment. This Amendment shall be binding upon each signatory hereto, its
successors and assigns.

Section 11.             Limited Effect. This
Amendment relates only to the specific matters expressly covered herein, shall
not be considered to be a waiver of any rights or remedies any Lender may have
under the Amended Credit Agreement or under any other Credit Document, except
as expressly 

 

 3
 

provided
herein, and shall not be considered to create a course of dealing or to
otherwise obligate in any respect any Lender to execute similar or other
amendments or grant any waivers under the same or similar or other
circumstances in the future.

Section 12.             Headings. Sections headings
in the Amendment are included for convenience of reference only and shall not
constitute a part of this Amendment for any other purposes.

[signature pages follow]

 

 4
 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their respective officers thereunto duly authorized, as of the date first
above written.

	
   

  	
   

  	
  DYNCORP
  INTERNATIONAL LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ H. Montgomery Hougen

  	
   

  
	
   

  	
   

  	
  Name:

  	
  H. Montgomery Hougen

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President, Secretary

  	
   

  
	
   

  	
   

  	
   

  	
  and Deputy General Counsel

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DYNCORP INTERNATIONAL
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ H. Montgomery Hougen

  	
   

  
	
   

  	
   

  	
  Name:

  	
  H. Montgomery Hougen

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DIV CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ H. Montgomery Hougen

  	
   

  
	
   

  	
   

  	
  Name:

  	
  H. Montgomery Hougen

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President, Secretary

  	
   

  
	
   

  	
   

  	
   

  	
  and Deputy General Counsel

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DTS
  AVIATION SERVICES LLC

  
	
   

  	
   

  	
  DYNCORP
  AEROSPACE OPERATIONS LLC

  
	
   

  	
   

  	
  DYNCORP
  INTERNATIONAL SERVICES LLC

  
	
   

  	
   

  	
  DYN
  MARINE SERVICES LLC

  
	
   

  	
   

  	
  DYN
  MARINE SERVICES OF VIRGINIA LLC

  
	
   

  	
   

  	
  SERVICES
  INTERNATIONAL LLC

  
	
   

  	
   

  	
  WORLDWIDE
  HUMANITARIAN SERVICES LLC

  
	
   

  	
   

  	
  WORLDWIDE
  RECRUITING AND STAFFING SERVICES LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  DYNCORP
  INTERNATIONAL LLC

  
	
   

  	
   

  	
   

  	
  its sole Member
  and Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ H.
  Montgomery Hougen

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  H. Montgomery
  Hougen

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President,
  Secretary and Deputy General Counsel

  	
   

  
													

 

 

 5
 

 

	
   

  	
   

  	
  ADMINISTRATIVE AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS L.P.,

  
	
   

  	
   

  	
  as
  Administrative Agent and a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Robert
  Schatzman

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signatory

  	
   

  

 

 

 6
 

 

	
   

  	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
   

  	
  as Issuing Bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael J.
  Landini

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael J.
  Landini

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President

  

 

 

 7

 

 

EXHIBIT
A TO SECOND AMENDMENT

TO CREDIT AND GUARANTY AGREEMENT

CREDIT
AND GUARANTY AGREEMENT

dated
as of February 11, 2005

as
amended as of January 9, 2006,

as further amended as of June 28, 2006

among

DYNCORP
INTERNATIONAL LLC,

as Borrower

DYNCORP
INTERNATIONAL INC. and THE OTHER GUARANTORS PARTY HERETO,

as Guarantors,

VARIOUS
LENDERS Party Hereto,

GOLDMAN
SACHS CREDIT PARTNERS L.P.,

as Administrative Agent, Collateral Agent, Syndication Agent, Lead Arranger and
Book Runner,

and

BANK
OF AMERICA, N.A.,

as Issuing Bank and Documentation Agent

$431,550,000
Senior Secured Credit Facilities

 

 

 

TABLE
OF CONTENTS

	
  

  	
   

  	
  Page

  
	
  SECTION 1. DEFINITIONS AND INTERPRETATION

  	
   

  	
  2

  
	
  1.1.
  Definitions

  	
   

  	
  2

  
	
  1.2.
  Accounting Terms

  	
   

  	
  35

  
	
  1.3.
  Interpretation, etc.

  	
   

  	
  36

  
	
  1.4.
  Interrelationship with the Existing Credit Agreement

  	
   

  	
  36

  
	
  SECTION 2. LOANS AND LETTERS OF CREDIT

  	
   

  	
  37

  
	
  2.1.
  Term Loans

  	
   

  	
  37

  
	
  2.2.
  Revolving Loans

  	
   

  	
  38

  
	
  2.3.
  Swing Line Loans

  	
   

  	
  39

  
	
  2.4.
  Issuance of Letters of Credit and Purchase of Participations Therein

  	
   

  	
  42

  
	
  2.5.
  Pro Rata Shares; Availability of Funds

  	
   

  	
  46

  
	
  2.6.
  Use of Proceeds

  	
   

  	
  47

  
	
  2.7.
  Evidence of Debt; Register; Lenders’ Books and Records; Notes

  	
   

  	
  47

  
	
  2.8.
  Interest on Loans

  	
   

  	
  48

  
	
  2.9.
  Conversion/Continuation

  	
   

  	
  51

  
	
  2.10.
  Default Interest

  	
   

  	
  51

  
	
  2.11.
  Fees

  	
   

  	
  52

  
	
  2.12.
  Scheduled Payments

  	
   

  	
  52

  
	
  2.13.
  Voluntary Prepayments/Commitment Reductions/Call Protection

  	
   

  	
  54

  
	
  2.14.
  Mandatory Prepayments/Commitment Reductions

  	
   

  	
  56

  
	
  2.15.
  Application of Prepayments/Reductions

  	
   

  	
  58

  
	
  2.16.
  General Provisions Regarding Payments

  	
   

  	
  60

  
	
  2.17.
  Ratable Sharing

  	
   

  	
  61

  
	
  2.18.
  Making or Maintaining Eurodollar Rate Loans

  	
   

  	
  62

  
	
  2.19.
  Increased Costs; Capital Adequacy

  	
   

  	
  64

  
	
  2.20.
  Taxes; Withholding, etc.

  	
   

  	
  65

  
	
  2.21.
  Obligation to Mitigate

  	
   

  	
  67

  
	
  2.22.
  Defaulting Lenders

  	
   

  	
  68

  
	
  2.23.
  Removal or Replacement of a Lender

  	
   

  	
  69

  
	
  2.24.
  Increase in Revolving Commitments

  	
   

  	
  70

  
	
  SECTION 3. CONDITIONS PRECEDENT

  	
   

  	
  71

  
	
  3.1.
  Closing Date

  	
   

  	
  71

  
	
  3.2.
  Conditions to Each Credit Extension

  	
   

  	
  76

  
	
  3.3.
  Conditions to Obligation to Fund the New Term Loan Commitments on the Second
  Amendment Effective Date

  	
   

  	
  77

  
	
  3.4.
  Effect of Agreement on Other Credit Documents

  	
   

  	
  80

  
	
  SECTION 4. REPRESENTATIONS AND WARRANTIES

  	
   

  	
  80

  

 

 ii
 

 

 

	
  4.1. Organization; Requisite Power and Authority; Qualification

  	
   

  	
  80

  
	
  4.2.
  Capital Stock and Ownership

  	
   

  	
  81

  
	
  4.3.
  Due Authorization

  	
   

  	
  81

  
	
  4.4. No
  Conflict

  	
   

  	
  81

  
	
  4.5.
  Governmental Consents

  	
   

  	
  81

  
	
  4.6.
  Binding Obligation

  	
   

  	
  82

  
	
  4.7.
  Historical Financial Statements

  	
   

  	
  82

  
	
  4.8.
  Projections

  	
   

  	
  82

  
	
  4.9. No
  Material Adverse Change

  	
   

  	
  82

  
	
  4.10.
  Intentionally Omitted

  	
   

  	
  82

  
	
  4.11.
  Adverse Proceedings, etc.

  	
   

  	
  82

  
	
  4.12.
  Payment of Taxes

  	
   

  	
  83

  
	
  4.13.
  Properties

  	
   

  	
  83

  
	
  4.14.
  Environmental Matters

  	
   

  	
  84

  
	
  4.15.
  No Defaults

  	
   

  	
  84

  
	
  4.16.
  Material Contracts

  	
   

  	
  85

  
	
  4.17.
  Governmental Regulation

  	
   

  	
  85

  
	
  4.18.
  Margin Stock

  	
   

  	
  85

  
	
  4.19.
  Employee Matters

  	
   

  	
  85

  
	
  4.20.
  Employee Benefit Plans

  	
   

  	
  85

  
	
  4.21.
  Certain Fees

  	
   

  	
  86

  
	
  4.22.
  Solvency

  	
   

  	
  86

  
	
  4.23.
  Related Agreements

  	
   

  	
  86

  
	
  4.24.
  Compliance with Statutes, etc

  	
   

  	
  87

  
	
  4.25.
  Disclosure

  	
   

  	
  87

  
	
  4.26.
  Patriot Act

  	
   

  	
  88

  
	
  SECTION 5. AFFIRMATIVE COVENANTS

  	
   

  	
  88

  
	
  5.1.
  Financial Statements and Other Reports

  	
   

  	
  88

  
	
  5.2.
  Existence

  	
   

  	
  93

  
	
  5.3.
  Payment of Taxes and Claims

  	
   

  	
  93

  
	
  5.4.
  Maintenance of Properties

  	
   

  	
  93

  
	
  5.5.
  Insurance

  	
   

  	
  94

  
	
  5.6.
  Inspections

  	
   

  	
  94

  
	
  5.7.
  Lenders Meetings

  	
   

  	
  94

  
	
  5.8.
  Compliance with Laws

  	
   

  	
  94

  
	
  5.9.
  Environmental

  	
   

  	
  95

  
	
  5.10.
  Subsidiaries

  	
   

  	
  96

  
	
  5.11.
  Additional Material Real Estate Assets

  	
   

  	
  96

  
	
  5.12.
  Interest Rate Protection

  	
   

  	
  97

  

 

 iii
 

 

 

	
  5.13. Further Assurances

  	
   

  	
  97

  
	
  5.14.
  Non-Consolidation

  	
   

  	
  97

  
	
  SECTION 6. NEGATIVE COVENANTS

  	
   

  	
  98

  
	
  6.1.
  Indebtedness

  	
   

  	
  98

  
	
  6.2.
  Liens

  	
   

  	
  100

  
	
  6.3.
  Equitable Lien

  	
   

  	
  103

  
	
  6.4. No
  Further Negative Pledges

  	
   

  	
  103

  
	
  6.5.
  Restricted Junior Payments

  	
   

  	
  103

  
	
  6.6.
  Restrictions on Subsidiary Distributions

  	
   

  	
  106

  
	
  6.7.
  Investments

  	
   

  	
  106

  
	
  6.8.
  Financial Covenants

  	
   

  	
  108

  
	
  6.9.
  Fundamental Changes; Disposition of Assets; Acquisitions

  	
   

  	
  111

  
	
  6.10.
  Disposal of Subsidiary Interests

  	
   

  	
  112

  
	
  6.11.
  Sales and Lease Backs

  	
   

  	
  113

  
	
  6.12.
  Transactions with Shareholders and Affiliates.

  	
   

  	
  113

  
	
  6.13.
  Conduct of Business

  	
   

  	
  113

  
	
  6.14.
  Permitted Activities of Holdings

  	
   

  	
  113

  
	
  6.15.
  Amendments or Waivers of Purchase Agreement and Organizational Documents

  	
   

  	
  114

  
	
  6.16.
  Amendments or Waivers with respect to Subordinated Indebtedness

  	
   

  	
  114

  
	
  6.17.
  Fiscal Year

  	
   

  	
  114

  
	
  6.18.
  Designated Senior Debt

  	
   

  	
  114

  
	
  SECTION 7. GUARANTY

  	
   

  	
  115

  
	
  7.1.
  Guaranty of the Obligations

  	
   

  	
  115

  
	
  7.2.
  Contribution by Guarantors

  	
   

  	
  115

  
	
  7.3.
  Payment by Guarantors

  	
   

  	
  116

  
	
  7.4.
  Liability of Guarantors Absolute

  	
   

  	
  116

  
	
  7.5.
  Waivers by Guarantors

  	
   

  	
  118

  
	
  7.6.
  Guarantors’ Rights of Subrogation, Contribution, etc.

  	
   

  	
  119

  
	
  7.7.
  Subordination of Other Obligations

  	
   

  	
  120

  
	
  7.8.
  Continuing Guaranty

  	
   

  	
  120

  
	
  7.9.
  Authority of Guarantors or Company

  	
   

  	
  120

  
	
  7.10.
  Financial Condition of Company

  	
   

  	
  120

  
	
  7.11.
  Bankruptcy, etc.

  	
   

  	
  121

  
	
  7.12.
  Discharge of Guaranty Upon Sale of Guarantor

  	
   

  	
  121

  
	
  SECTION 8. EVENTS OF DEFAULT

  	
   

  	
  122

  
	
  8.1.
  Events of Default

  	
   

  	
  122

  
	
  SECTION 9. AGENTS

  	
   

  	
  125

  
	
  9.1.
  Appointment of Agents

  	
   

  	
  125

  

 

 iv
 

 

 

	
  9.2. Powers and Duties

  	
   

  	
  125

  
	
  9.3.
  General Immunity

  	
   

  	
  126

  
	
  9.4.
  Agents Entitled to Act as Lender

  	
   

  	
  127

  
	
  9.5.
  Lenders’ Representations, Warranties and Acknowledgment

  	
   

  	
  128

  
	
  9.6.
  Right to Indemnity

  	
   

  	
  128

  
	
  9.7.
  Successor Administrative Agent and Swing Line Lender

  	
   

  	
  129

  
	
  9.8.
  Collateral Documents and Guaranty

  	
   

  	
  129

  
	
  SECTION 10. MISCELLANEOUS

  	
   

  	
  131

  
	
  10.1.
  Notices

  	
   

  	
  131

  
	
  10.2.
  Expenses

  	
   

  	
  131

  
	
  10.3.
  Indemnity

  	
   

  	
  132

  
	
  10.4.
  Set Off

  	
   

  	
  133

  
	
  10.5.
  Amendments and Waivers

  	
   

  	
  133

  
	
  10.6.
  Successors and Assigns; Participations

  	
   

  	
  135

  
	
  10.7.
  Independence of Covenants

  	
   

  	
  140

  
	
  10.8.
  Survival of Representations, Warranties and Agreements

  	
   

  	
  140

  
	
  10.9.
  No Waiver; Remedies Cumulative

  	
   

  	
  140

  
	
  10.10.
  Marshalling; Payments Set Aside

  	
   

  	
  140

  
	
  10.11.
  Severability

  	
   

  	
  141

  
	
  10.12.
  Obligations Several; Independent Nature of Lenders’ Rights

  	
   

  	
  141

  
	
  10.13.
  Headings

  	
   

  	
  141

  
	
  10.14.
  APPLICABLE LAW

  	
   

  	
  141

  
	
  10.15.
  CONSENT TO JURISDICTION

  	
   

  	
  141

  
	
  10.16.
  WAIVER OF JURY TRIAL

  	
   

  	
  142

  
	
  10.17.
  Confidentiality

  	
   

  	
  143

  
	
  10.18.
  Usury Savings Clause

  	
   

  	
  143

  
	
  10.19.
  Counterparts

  	
   

  	
  144

  
	
  10.20.
  Effectiveness

  	
   

  	
  144

  
	
  10.21.
  Patriot Act

  	
   

  	
  144

  
	
  10.22.
  Electronic Execution of Assignments

  	
   

  	
  144

  

 

 v
 

 

 

	
  APPENDICES:

  	
  A

  	
  Revolving Commitments

  
	
   

  	
  B

  	
  Notice Addresses

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
  4.1

  	
  Jurisdictions of Organization and Qualification

  
	
   

  	
  4.2

  	
  Capital Stock and Ownership

  
	
   

  	
  4.13

  	
  Real Estate Assets

  
	
   

  	
  4.14

  	
  Environmental Matters

  
	
   

  	
  4.16

  	
  Material Contracts

  
	
   

  	
  4.20

  	
  ERISA Matters

  
	
   

  	
  4.23

  	
  Governmental Approvals

  
	
   

  	
  6.1

  	
  Certain Indebtedness

  
	
   

  	
  6.2

  	
  Certain Liens

  
	
   

  	
  6.6

  	
  Restrictions on Subsidiary Distributions

  
	
   

  	
  6.7

  	
  Certain Investments

  
	
   

  	
  6.12

  	
  Certain Affiliate Transactions

  
	
   

  	
   

  	
   

  
	
   

  	
  A-1

  	
  Funding Notice

  
	
  EXHIBITS:

  	
  A-2

  	
  Conversion/Continuation Notice

  
	
   

  	
  A-3

  	
  Issuance Notice

  
	
   

  	
  B-1

  	
  New Term Loan Note

  
	
   

  	
  B-2

  	
  Revolving Loan Note

  
	
   

  	
  B-3

  	
  Swing Line Note

  
	
   

  	
  C

  	
  Compliance Certificate

  
	
   

  	
  D

  	
  Opinions of Counsel

  
	
   

  	
  E

  	
  Assignment Agreement

  
	
   

  	
  F

  	
  Certificate Re Non-bank Status

  
	
   

  	
  G-1

  	
  Second Amendment Effective Date Certificate

  
	
   

  	
  G-2

  	
  Second Amendment Effective Date Solvency Certificate

  
	
   

  	
  H

  	
  Counterpart Agreement

  
	
   

  	
  I

  	
  Pledge and Security Agreement

  
	
   

  	
  J

  	
  Mortgage

  
	
   

  	
  K

  	
  Landlord Waiver and Consent Agreement

  
	
   

  	
  L

  	
  Reaffirmation Agreement

  
	
   

  	
  M

  	
  Joinder Agreement

  

 

 vi

 

CREDIT
AND GUARANTY AGREEMENT

This CREDIT AND GUARANTY AGREEMENT,
dated as of February 11, 2005, as amended by the First Amendment dated as
of January 9, 2006 (the Credit and Guaranty Agreement, as amended by the
First Amendment, the “Existing Credit Agreement”)
and as further amended by the Second Amendment dated as of June 28, 2006
(the “Amended Credit Agreement” or this “Agreement”) is entered into by and among DYNCORP INTERNATIONAL LLC (successor by merger to DI FINANCE
SUB LLC), a Delaware limited liability company (“Company”), DYNCORP INTERNATIONAL INC.
(formerly known as DI ACQUISITION
CORP.), a Delaware corporation (“Holdings”),
and CERTAIN SUBSIDIARIES OF COMPANY,
as Guarantors, the Lenders party hereto from time to time, GOLDMAN SACHS CREDIT PARTNERS L.P. (“GSCP”), as Lead Arranger and Book Runner,
as Administrative Agent (together with its permitted successors in such
capacity, “Administrative Agent”),
as Collateral Agent (together with its permitted successor in such capacity, “Collateral Agent”), and as
Syndication Agent (together with its permitted successors in such capacity, “Syndication Agent”), and BANK OF AMERICA, N.A., as Issuing Bank (together with its
permitted successors in such capacity, “Issuing Bank”)
and as Documentation Agent (together with its permitted successors in such
capacity, “Documentation Agent”).

RECITALS:

WHEREAS,
capitalized terms used in these Recitals shall have the respective meanings set
forth for such terms in Section 1.1 hereof;

WHEREAS, Company is
the borrower under the Existing Credit Agreement by and among Company,
Holdings, certain Subsidiaries of Company as Guarantors, GSCP and Bear, Stearns &
Co. Inc., as Lead Arrangers, Bear Stearns Corporate Lending Inc., as
Syndication Agent, GSCP, as Administrative Agent and Collateral Agent, Bank of
America, N.A., as Issuing Bank and Documentation Agent, and the Lenders party
thereto;

WHEREAS, Company
has requested to borrow, and certain Lenders party to the Amended Credit
Agreement have agreed to lend, New Term Loans in an aggregate principal amount
equal to $341,550,000. The proceeds of the New Term Loans will be used solely
to repay in full the outstanding principal amount of all Existing Term Loans of
Existing Term Loan Lenders as of the Second Amendment Effective Date;

WHEREAS, Company has requested, and the Requisite Lenders have agreed,
to permit Company to increase the Revolving Commitments by up to $30,000,000,
which increases would be allocated to additional Lenders or to existing Lenders
that had agreed to provide such additional Revolving Commitments; and

 

WHEREAS, Company has requested,
and Requisite Lenders have agreed, to enter into this Agreement, to amend the
Existing Agreement in accordance with Section 10.5 thereof, effective as
of the Second Amendment Effective Date upon satisfaction or waiver of the
conditions precedent set forth in Sections 3.2 and 3.3.

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

SECTION 1.   DEFINITIONS
AND INTERPRETATION

1.1   Definitions. The following terms used herein,
including in the preamble, recitals, exhibits and schedules hereto, shall have
the following meanings:

“Accounting Change”
means, with respect to any Person, any change in accounting principles
applicable to such Person and required by the promulgation of any rule,
regulation, pronouncement or opinion by the Financial Accounting Standards
Board of the American Institute of Certified Public Accountants, or, if
applicable, the Securities and Exchange Commission (or its successor agency).

“Acquisition” means the acquisition by DI
Acquisition Corp. of DynCorp International LLC pursuant to the Purchase
Agreement and the Merger.

“Act” as defined in Section 4.26.

“Adjusted Eurodollar Rate”
means, for any Interest Rate Determination Date with respect to an Interest
Period for a Eurodollar Rate Loan, the rate per annum obtained by dividing (and
rounding upward to the next whole multiple of 1/16 of 1%) (i) (a) the
rate per annum (rounded to the nearest 1/100 of 1%) equal to the rate
determined by Administrative Agent to be the offered rate which appears on the page of
the Telerate Screen which displays an average British Bankers Association
Interest Settlement Rate (such page currently being page number 3740
or 3750, as applicable) for deposits (for delivery on the first day of such
period) with a term equivalent to such period in Dollars, determined as of
approximately 11:00 a.m. (London, England time) on such Interest Rate
Determination Date, or (b) in the event the rate referenced in the
preceding clause (a) does not appear on such page or service or if
such page or service shall cease to be available, the rate per annum
(rounded to the nearest 1/100 of 1%) equal to the rate determined by
Administrative Agent to be the offered rate on such other page or other
service which displays an average British Bankers Association Interest
Settlement Rate for deposits (for delivery on the first day of such period)
with a term equivalent to such period in Dollars, determined as of
approximately 11:00 a.m. (London, England time) on such Interest Rate
Determination Date, or (c) in the event the rates referenced in the
preceding clauses (a) and 

 2
 

 

(b) are not
available, the rate per annum (rounded to the nearest 1/100 of 1%) equal to the
offered quotation rate to first class banks in the London interbank market by
GSCP for deposits (for delivery on the first day of the relevant period) in
Dollars of amounts in same day funds comparable to the principal amount of the
applicable Loan of Administrative Agent, in its capacity as a Lender, for which
the Adjusted Eurodollar Rate is then being determined with maturities
comparable to such period as of approximately 11:00 a.m. (London, England
time) on such Interest Rate Determination Date, by (ii) an amount equal to
(a) one minus (b) the Applicable Reserve Requirement.

“Administrative Agent”
as defined in the preamble hereto.

“Adverse Proceeding”
means any action, suit, proceeding (whether administrative, judicial or
otherwise), governmental investigation or arbitration (whether or not
purportedly on behalf of Holdings or any of its Subsidiaries) at law or in
equity, or before or by any Governmental Authority, domestic or foreign
(including any Environmental Claims), whether pending or, to the knowledge of
Holdings or any of its Subsidiaries, threatened in writing against or affecting
Holdings or any of its Subsidiaries or any property of Holdings or any of its
Subsidiaries.

“Affected Lender”
as defined in Section 2.18(b).

“Affected Loans” as
defined in Section 2.18(b).

“Affiliate” means,
as applied to any Person, any other Person directly or indirectly controlling,
controlled by, or under common control with, that Person. For the purposes of
this definition, “control” (including, with correlative meanings, the terms “controlling”,
“controlled by” and “under common control with”), as applied to any Person,
means the possession, directly or indirectly, of the power (i) to vote 10%
or more of the Securities having ordinary voting power for the election of
directors of such Person or (ii) to direct or cause the direction of the
management and policies of that Person, whether through the ownership of voting
securities or by contract or otherwise.

“Agent” means each
of Syndication Agent, Administrative Agent, Collateral Agent and Documentation
Agent.

“Aggregate Amounts Due”
as defined in Section 2.17.

“Aggregate Payments”
as defined in Section 7.2.

“Agreement” means
this Credit and Guaranty Agreement, dated as of February 11, 2005, as it
may be amended, supplemented or otherwise modified from time to time.

 3
 

 

“Applicable Margin’’
and “Applicable Revolving Commitment Fee
Percentage’’ mean (i) with respect to Revolving Loans that are
Eurodollar Rate Loans and the Applicable Revolving Commitment Fee Percentage, (a) from
the Closing Date until the date of delivery of the Compliance Certificate and
the financial statements for the first full Fiscal Quarter following the
Closing Date, a percentage, per annum, determined by reference to the following
table as if the Leverage Ratio then in effect were 5.00:1.00; and (b) thereafter,
a percentage, per annum, determined by reference to the Leverage Ratio in
effect from time to time as set forth below:

	
  Leverage

  Ratio

  	
   

  	
  Applicable Margin

  for Revolving Loans

  	
   

  	
  Applicable Revolving

  Commitment

  Fee Percentage

  	
   

  
	
  > 5.00:1.00

  	
   

  	
  2.50

  	
  %

  	
  0.50

  	
  %

  
	
  <
  5.00:1.00

  	
   

  	
  2.25

  	
  %

  	
  0.50

  	
  %

  
	
  > 4.00:1.00

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  < 4.00:1.00

  	
   

  	
  2.00

  	
  %

  	
  0.50

  	
  %

  

 

and (ii) with respect to Swing Line Loans and
Revolving Loans that are Base Rate Loans, an amount equal to (a) the
Applicable Margin for Eurodollar Rate Loans as set forth in clause (i)(a) or
(i)(b) above, as applicable, minus (b) 1.00% per annum. Each change
in the Applicable Margin or the Applicable Revolving Commitment Fee Percentage
shall become effective three Business Days after the date on which
Administrative Agent shall have received the applicable financial statements
and a Compliance Certificate pursuant to Section 5.1(d) calculating
the Leverage Ratio as at the end of the Fiscal Quarter to which such Compliance
Certificate relates. At any time Company has not submitted to Administrative
Agent the applicable information as and when required under Section 5.1(d),
the Applicable Margin and the Applicable Revolving Commitment Fee Percentage
shall be determined for the period from the date such information was required
to have been delivered under Section 5.1(d) until three Business Days
after the actual delivery thereof as if the Leverage Ratio were in excess of
5.00:1.00 for such period. Within one Business Day of receipt of the applicable
information under Section 5.1(d), Administrative Agent shall give each
Lender telefacsimile or telephonic notice (confirmed in writing) of the
Applicable Margin and the Applicable Revolving Commitment Fee Percentage in
effect from such date.

“Applicable Reserve Requirement”
means, at any time, for any Eurodollar Rate Loan, the maximum rate, expressed
as a decimal, at which reserves (including, without limitation, any basic
marginal, special, supplemental, emergency or other reserves) are required to
be maintained with respect thereto against “Eurocurrency liabilities” (as such
term is defined 

 4
 

 

in Regulation D) under
regulations issued from time to time by the Board of Governors of the Federal
Reserve System or other applicable banking regulator. Without limiting the
effect of the foregoing, the Applicable Reserve Requirement shall reflect any
reserves required to be maintained by such member banks with respect to (i) any
category of liabilities which includes deposits by reference to which the
applicable Adjusted Eurodollar Rate of a Loan is to be determined, or (ii) any
category of extensions of credit or other assets which include Eurodollar Rate
Loans. A Eurodollar Rate Loan shall be deemed to constitute Eurocurrency
liabilities and as such shall be deemed subject to reserve requirements without
benefits of credit for proration, exceptions or offsets that may be available
from time to time to the applicable Lender. The rate of interest on Eurodollar
Rate Loans shall be adjusted automatically on and as of the effective date of
any change in the Applicable Reserve Requirement.

“Asset Sale” means
a sale, lease or sub-lease (as lessor or sublessor), sale and leaseback,
assignment, conveyance, transfer or other disposition to, or any exchange of
property with, any Person (other than Company or any Subsidiary), in one
transaction or a series of transactions, of all or any part of Holdings’ or any
of its Subsidiaries’ businesses, assets or properties of any kind, whether
real, personal, or mixed and whether tangible or intangible, whether now owned
or hereafter acquired, including, without limitation, the Capital Stock of any
of Holdings’ Subsidiaries, other than (i) inventory (or other assets)
sold, leased, subleased, licensed, sublicensed or consigned in the ordinary
course of business (excluding any such sales by operations or divisions
discontinued or to be discontinued), (ii) equipment or other assets
(including leases of real property) sold, replaced, abandoned, leased or
otherwise disposed of that is obsolete, worn-out, condemned or no longer used
or useful in the business of Holdings, Company or any of its Subsidiaries, (iii) dispositions,
by means of trade-in, of equipment used in the ordinary course of business, so
long as such equipment is replaced, substantially concurrently, by like-kind
equipment, (iv) the use or transfer of Cash and Cash Equivalents in a
manner that is not prohibited by the terms of this Agreement or the other
Credit Documents, (v) the licensing, on a non-exclusive basis, of patents,
trademarks, copyrights and other intellectual property rights in the ordinary
course of business, (vi) the creation of a Permitted Lien under Section 6.2,
(vii) the compromise or settlement of any dispute, claim or legal
proceeding with respect to any receivable or other claim under a Contractual
Obligation for less than the total unpaid balance thereof in the ordinary
course of business, (viii) to the extent allowable under Section 1031
of the Internal Revenue Code, any exchange of like property for use in a
business of Company or any of its Subsidiaries permitted by Section 6.13
and (ix) sales of other assets for aggregate consideration of less than
$500,000 with respect to any transaction or series of related transactions and
less than $1,000,000 in the aggregate during any Fiscal Year.

“Assignment Agreement”
means an Assignment and Assumption Agreement substantially in the form of Exhibit E,
with such amendments or modifications as may be approved by Administrative
Agent.

 5
 

 

“Assignment Effective Date” as
defined in Section 10.6(b).

“Authorized Officer”
means, as applied to any Person, any individual holding the position of
chairman of the board (if an officer), chief executive officer, president or
one of its vice presidents (or the equivalent thereof), and such Person’s chief
financial officer or treasurer.

“Bankruptcy Code”
means Title 11 of the United States Code entitled “Bank­ruptcy,” as now
and hereafter in effect, or any successor statute.

“Base Rate” means,
for any day, a rate per annum equal to the greater of (i) the Prime Rate
in effect on such day and (ii) the Federal Funds Effective Rate in effect
on such day plus 1⁄2 of 1%. Any change in the Base Rate due to a change in the
Prime Rate or the Federal Funds Effective Rate shall be effective on the
effective day of such change in the Prime Rate or the Federal Funds Effective
Rate, respectively.

“Base Rate Loan” means
a Loan bearing interest at a rate determined by reference to the Base Rate.

“Beneficiary” means
each Agent, Issuing Bank, Lender and Lender Counterparty.

“Board of Directors” means,
with respect to any Person, (i) in the case of any corporation, the board
of directors of such Person, (ii) in the case of any limited liability
company, the board of managers of such Person, (iii) in the case of any
limited partnership, the Board of Directors of the general partner of such
Person and (iv) in any other case, the functional equivalent of the
foregoing.

“Business Day”
means (i) any day excluding Saturday, Sunday and any day which is a legal
holiday under the laws of the State of New York or is a day on which banking
institutions located in such state are authorized or required by law or other
governmental action to close and (ii) with respect to all notices,
determinations, fundings and payments in connection with the Adjusted
Eurodollar Rate or any Eurodollar Rate Loans, the term “Business Day” shall mean any day which is
a Business Day described in clause (i) and which is also a day for trading
by and between banks in Dollar deposits in the London interbank market.

“Capital Lease”
means, as applied to any Person, any lease of any property (whether real, personal
or mixed) by that Person as lessee that, in conformity with GAAP, is or should
be accounted for as a capital lease on the balance sheet of that Person.

 6
 

 

“Capital Stock”
means any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent
ownership interests in a Person (other than a corporation), including, without
limitation, partnership interests and membership interests, and any and all
warrants, rights or options to purchase or other arrangements or rights to
acquire any of the foregoing.

“Cash” means money,
currency or an unencumbered credit balance in any demand or Deposit Account.

“Cash Equivalents”
means, as at any date of determination, (i) marketable securities (a) issued
or directly and unconditionally guaranteed as to interest and principal by the
United States Government or (b) issued by any agency of the United States
the obligations of which are backed by the full faith and credit of the United
States, in each case maturing within one year after such date; (ii) marketable
direct obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof,
in each case maturing within one year after such date and having, at the time
of the acquisition thereof, one of the two highest ratings obtainable from
S&P or Moody’s; (iii) commercial paper maturing no more than one year
from the date of creation thereof and having, at the time of the acquisition
thereof, one of the two highest ratings obtainable from S&P or Moody’s; (iv) certificates
of deposit or bankers’ acceptances maturing within one year after such date and
issued or accepted by any Lender or by any commercial bank organized under the
laws of the United States of America or any state thereof or the District of
Columbia that (a) is at least “adequately capitalized” (as defined in the
regulations of its primary Federal banking regulator) and (b) has Tier 1
capital (as defined in such regulations) of not less than $100,000,000; (v) shares
of any money market mutual fund that (a) has substantially all of its
assets invested continuously in the types of investments referred to in clauses
(i) through (iv) above, (b) has net assets of not less than
$250,000,000, and (c) has one of the two highest ratings obtainable from
S&P or Moody’s when acquired; and (vi) repurchase obligations with a
term of not more than 90 days for underlying securities of the types described
in clause (i) above entered into with any bank meeting the qualifications
specified in clause (iv) above.

“Certificate re Non-Bank Status”
means a certificate substantially in the form of Exhibit F.

“Change of Control”
means, (i) the Permitted Holders shall fail to own, or to have the power
to vote or direct the voting of, Voting Stock of Holdings representing more
than 35% of the voting power of the total outstanding Voting Stock of Holdings;
(ii) any person or “group” (within the meaning of Rules 13d-3
and 13d-5 under the Exchange Act) other than the Permitted Holders (A) shall
beneficially own a percentage of the economic interests in the Voting Stock of
Holdings on a fully-diluted basis that is greater than the percentage of the
economic interests in the Voting Stock of Holdings on a fully-diluted basis
then held by the 

 7
 

 

Permitted Holders, taken
together, or (B) shall have obtained the power (whether or not exercised)
to elect a majority of the members of the board of directors (or similar
governing body) of Holdings; (iii) the majority of the seats (other than
vacant seats) on the board of directors (or similar governing body) of Holdings
cease to be occupied by Persons who either (a) were members of the board
of directors of Holdings on the Second Amendment Effective Date or (b) were
either (x) nominated for election by the board of directors of Holdings, a
majority of whom were directors on the Second Amendment Effective Date or whose
election or nomination for election was previously approved by a majority of
such directors or (y) designated or appointed by the Permitted
Holders; or (iv) any “change of control” or similar event under the
Senior Subordinated Note Documents or any other documents governing
Indebtedness of Holdings or any of its Subsidiaries shall occur.

“Class” means (i) with
respect to Lenders, each of the following classes of Lenders: (a) Lenders
having Term Loan Exposure and (b) Lenders having Revolving Exposure
(including Swing Line Lender) and (ii) with respect to Loans, each of the
following classes of Loans: (a) Term Loans and (b) Revolving Loans
(including Swing Line Loans).

“Closing Date”
means February 11, 2005.

“Collateral” means,
collectively, all of the real, personal and mixed property (including Capital
Stock) in which Liens are purported to be granted pursuant to the Collateral
Documents as security for the Obligations.

“Collateral Agent” as
defined in the preamble hereto.

“Collateral Documents”
means the Pledge and Security Agreement, the Reaffirmation Agreement, the
Mortgages, the Landlord Personal Property Collateral Access Agreements, if any,
and all other instruments, documents and agreements delivered by any Credit
Party pursuant to this Agreement or any of the other Credit Documents in order
to grant to Collateral Agent, for the benefit of Lenders, a Lien on any real,
personal or mixed property of that Credit Party as security for the
Obligations.

“Collateral Questionnaire”
means a certificate in form satisfactory to Collateral Agent that provides
information with respect to the personal or mixed property of each Credit
Party.

“Commitment” means
any Revolving Commitment or Term Loan Commitment.

“Company” means
initially, Finance Sub, and upon consummation of the Acquisition and the
Merger, DynCorp International LLC.

 8
 

 

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

“Consolidated Adjusted EBITDA”
means, for any period, the Consolidated Net Income of Company and its
Subsidiaries for such period plus (i) the sum, without duplication, of the
following amounts to the extent deducted in computing such Consolidated Net
Income: (a) Consolidated Interest Expense, (b) federal, state and
local franchise taxes and other taxes based on income or profits, (c) total
depreciation expense, (d) total amortization expense, (e) other non-Cash
items (excluding any such non-Cash item to the extent that it represents
an accrual or reserve for potential Cash items in any future period or
amortization of a prepaid Cash item that was paid in a prior period), (f) management
fees paid by Company in accordance with Section 6.12, (g) restructuring
charges in an amount not to exceed $10,000,000 incurred in connection with the
transactions contemplated by this Agreement and the Related Agreements, (h) transition
expenses in an amount not to exceed $5,000,000 incurred in connection with the
transactions contemplated by this Agreement and the Related Agreements, (i) any
goodwill impairment charges and (j) write-off of deferred financing costs
in an amount not to exceed $3,000,000 per Fiscal Year minus (ii) other
non-Cash items increasing Consolidated Net Income for such period
(excluding any such non-Cash item to the extent it represents the
reversal of an accrual or reserve for potential Cash item in any prior period
or the accrual of revenue in the ordinary course of business); provided,
that Consolidated Adjusted EBITDA for each of the Fiscal Quarters ended at July 2,
2004, October 1, 2004 and December 31, 2004 shall be deemed to equal
$25,255,000, $33,340,000 and $29,846,000,
respectively.

“Consolidated Capital Expenditures”
means, for any period, the aggregate of all expenditures of Company and its
Subsidiaries during such period determined on a consolidated basis that, in
accordance with GAAP, are or should be included in “purchase of property and
equipment;” provided that “Consolidated Capital Expenditures” shall not
include any expenditures (i) for replacements and substitutions for
capital assets, to the extent made with the proceeds of insurance in accordance
with Section 2.14(b), (ii) made as part of a Permitted Acquisition, (iii) for
replacements and substitutions for capital assets, to the extent made with the
proceeds of assets sold, exchanged or otherwise disposed in accordance with,
and permitted by, Section 6.9(b) and (c) or (iv) paid for
with the proceeds from the issuance or sale of Capital Stock of Holdings and
the corresponding equity investment by Holdings in Company reflected in
the consolidated statement of cash flows of Company and its Subsidiaries.

“Consolidated Cash Interest Expense”
means, for any period, Consolidated Interest Expense for such period, excluding
any amount not payable in Cash.

“Consolidated Current Assets”
means, as at any date of determination, the total assets of Company and its
Subsidiaries on a consolidated basis that may properly be classified as current
assets in conformity with GAAP, excluding Cash and Cash Equivalents.

 9
 

 

“Consolidated Current Liabilities”
means, as at any date of determination, the total liabilities of Company and
its Subsidiaries on a consolidated basis that may properly be classified as
current liabilities in conformity with GAAP, excluding the current portion of
long term debt and short term debt.

“Consolidated Excess Cash Flow”
means, for any period, an amount (if positive) equal to: (i) the sum,
without duplication, of the amounts for such period of (a) Consolidated
Adjusted EBITDA, plus (b) the Consolidated Working Capital Adjustment,
except to the extent attributable to an Asset Sale in respect of which Company
has made a mandatory prepayment of the Loans in accordance with Section 2.14(a),
minus (ii) the sum, without duplication, of the amounts for such
period of (a) voluntary and scheduled repayments of Indebtedness of
Company and its Subsidiaries (excluding (x) repayments of Revolving Loans
or Swing Line Loans except to the extent the Revolving Commitments are
permanently reduced in connection with such repayments), (b) Consolidated
Capital Expenditures (net of any proceeds of any related financings with
respect to such expenditures), (c) Consolidated Cash Interest Expense, (d) provisions
for current taxes based on income of Company and its Subsidiaries and payable
in cash with respect to such period, and (e) management fees permitted
under Section 6.12.

“Consolidated Interest Expense”
means, for any period, total interest expense (including that portion
attributable to Capital Leases in accordance with GAAP and capitalized
interest) of Company and its Subsidiaries on a consolidated basis with respect
to all outstanding Indebtedness of Company and its Subsidiaries (after taking
into account the effect of any Interest Rate Agreements), including all
amortization of debt issuance costs and original issue discount, non-cash
interest payments, the interest component of any deferred payment obligations,
the interest component of all payments associated with Capital Leases, imputed
interest with respect to commissions, discounts and other fees and charges
incurred in respect of letter of credit or bankers’ acceptance financings,
commissions, discounts and other fees and charges owed with respect to letters
of credit and net payments made under Interest Rate Agreements, but excluding,
however, any amounts referred to in Section 2.11(d) payable on or
before the Closing Date.

“Consolidated Net Income”
means, for any period, (i) the net income (or loss) of Company and its
Subsidiaries on a consolidated basis for such period taken as a single
accounting period determined in conformity with GAAP, minus (ii) (a) the
income (or loss) of any Person (other than a Subsidiary of Company) in which
any other Person (other than Company or any of its Subsidiaries) has a joint
interest, except to the extent of the amount of cash dividends or other cash
distributions actually paid to Company or any of its Subsidiaries by such
Person during such period, (b) the income (or loss) of any Person accrued
prior to the date it becomes a Subsidiary of Company or is merged into or
consolidated with Company or any of its Subsidiaries or that Person’s assets
are acquired by Company or any of its Subsidiaries, (c) the income of any
Subsidiary of Company to the extent that the declaration or payment of
dividends 

 10
 

 

or similar distributions
by that Subsidiary of that income is not at the time permitted by operation of
the terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulation applicable to that Subsidiary, (d) any
after-tax gains or losses attributable to Asset Sales (or transactions
that are excluded from Asset Sales by clause (ix) of the definition
thereof) or returned surplus assets of any Pension Plan, (e) (to the
extent not included in clauses (a) through (d) above) any net
extraordinary or nonrecurring gains or net extraordinary or nonrecurring
losses, (f) the cumulative effect of a change in accounting principles and
(g) any net loss resulting from Currency Agreements entered into in the
ordinary course of business and not for speculative purposes.

“Consolidated Total Debt”
means, as at any date of determination, the aggregate stated balance sheet
amount of all Indebtedness of Company and its Subsidiaries determined on a
consolidated basis in accordance with GAAP.

“Consolidated Working Capital”
means, as at any date of determination, the excess of Consolidated Current
Assets over Consolidated Current Liabilities.

“Consolidated Working Capital
Adjustment” means, for any period on a consolidated basis,
the amount (which may be a negative number) by which Consolidated Working
Capital as of the beginning of such period exceeds (or is less than)
Consolidated Working Capital as of the end of such period.

“Continuing Lenders” means those
Lenders under the Existing Credit Agreement immediately prior to the Second
Amendment Effective Date that execute and deliver a signature page to the
Second Amendment specifically in the capacity of a “Continuing Lender”.

“Contractual Obligation”
means, as applied to any Person, any provision of any Security issued by that
Person or of any indenture, mortgage, deed of trust, contract, undertaking,
agreement or other instrument to which that Person is a party or by which it or
any of its properties is bound or to which it or any of its properties is
subject.

“Contributing Guarantors”
as defined in Section 7.2.

“Conversion/Continuation Date”
means the effective date of a continuation or conversion, as the case may be,
as set forth in the applicable Conversion/Continuation Notice.

“Conversion/Continuation Notice”
means a Conversion/Continuation Notice substantially in the form of Exhibit A-2.

“Counterpart Agreement”
means a Counterpart Agreement substantially in the form of Exhibit H
delivered by a Credit Party pursuant to Section 5.10.

 11
 

 

“Credit Date” means
the date of a Credit Extension.

“Credit Document”
means any of this Agreement, the Notes, if any, the Collateral Documents, any
documents or certificates executed by Company in favor of Issuing Bank relating
to Letters of Credit, and all other documents, instruments or agreements
executed and delivered by a Credit Party for the benefit of any Agent, Issuing
Bank or any Lender in connection herewith.

“Credit Extension”
means the making of a Loan or the issuance of a Letter of Credit.

“Credit Party”
means each Person (other than any Agent, Issuing Bank or any Lender or any
other representative thereof) from time to time party to a Credit Document.

“Currency Agreement”
means any foreign exchange contract, currency swap agreement, futures contract,
option contract, synthetic cap or other similar agreement or arrangement, each
of which is for the purpose of hedging the foreign currency risk associated
with Holdings’ and its Subsidiaries’ operations and not for speculative
purposes.

“Default” means a
condition or event that, after notice or lapse of time or both, would
constitute an Event of Default.

“Default Excess”
means, with respect to any Defaulting Lender, the excess, if any, of such
Defaulting Lender’s Pro Rata Share of the aggregate outstanding principal
amount of Loans of all Lenders (calculated as if all Defaulting Lenders (other
than such Defaulting Lender) had funded all of their respective Defaulted
Loans) over the aggregate outstanding principal amount of all Loans of such
Defaulting Lender.

“Default Period”
means, with respect to any Defaulting Lender, the period commencing on the date
of the applicable Funding Default and ending on the earliest of the following
dates:  (i) the date on which all
Commitments are cancelled or terminated and/or the Obligations are declared or
become immediately due and payable, (ii) the date on which (a) the
Default Excess with respect to such Defaulting Lender shall have been reduced
to zero (whether by the funding by such Defaulting Lender of any Defaulted
Loans of such Defaulting Lender or by the non-pro rata application of any
voluntary or mandatory prepayments of the Loans in accordance with the terms of
Section 2.13 or Section 2.14 or by a combination thereof) and (b) such
Defaulting Lender shall have delivered to Company and Administrative Agent a
written reaffirmation of its intention to honor its obligations hereunder with
respect to its Commitments, and (iii) the date on which Company,
Administrative Agent and Requisite Lenders waive all Funding Defaults of such
Defaulting Lender in writing.

 12
 

 

“Defaulted Loan” as
defined in Section 2.22.

“Defaulting Lender”
as defined in Section 2.22.

“Deposit Account”
means a demand, time, savings, passbook or like account with a bank, savings
and loan association, credit union or like organization, other than an account
evidenced by a negotiable certificate of deposit.

“Documentation Agent”
as defined in the preamble hereto.

“Dollars” and the
sign “$” mean the lawful money of
the United States of America.

“Domestic Subsidiary”
means any Subsidiary organized under the laws of the United States of America,
any State thereof or the District of Columbia.

“Eligible Assignee”
means (i) any Lender, any Affiliate of any Lender and any Related Fund
(any two or more Related Funds being treated as a single Eligible Assignee for
all purposes hereof), and (ii) any commercial bank, insurance company,
investment or mutual fund or other entity that is an “accredited investor” (as
defined in Regulation D under the Securities Act) and which extends credit
or buys loans as one of its businesses; provided, no Affiliate of
Holdings or Sponsor shall be an Eligible Assignee.

“Employee Benefit Plan”
means any “employee benefit plan” as defined in Section 3(3) of ERISA
which is (or, if such plan were terminated at such time, would under Section 4069
of ERISA be deemed to be) sponsored, maintained or contributed to by, or
required to be contributed by, Holdings, any of its Subsidiaries or any of
their respective ERISA Affiliates.

“Environmental Claim”
means any written: notice, notice of violation, claim, action, suit,
proceeding, demand, abatement order or other order or directive (conditional or
otherwise), by any Governmental Authority or any other Person, arising (i) pursuant
to or in connection with any actual or alleged violation of any Environmental
Law; (ii) in connection with any Hazardous Material or any actual or
alleged Hazardous Materials Activity; or (iii) in connection with any
actual or alleged damage, injury, threat or harm to health, safety, natural
resources or the environment.

“Environmental Laws”
means any and all foreign or domestic, federal or state (or any subdivision of
either of them), statutes, ordinances, orders, rules, regulations, judgments,
Governmental Authorizations, or any other requirements of Governmental
Authorities relating to (i) any Hazardous Materials Activity; (ii) the
generation, use, storage, transportation or disposal 

 13
 

 

of Hazardous Materials;
or (iii) occupational safety and health, industrial hygiene, or the
protection of human, plant or animal health or welfare, in any manner
applicable to Holdings or any of its Subsidiaries or any Facility.

“ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time to time,
and any successor thereto.

“ERISA Affiliate”
means, as applied to any Person, (i) any corporation which is a member of
a controlled group of corporations within the meaning of Section 414(b) of
the Internal Revenue Code of which that Person is a member; (ii) any trade
or business (whether or not incorporated) which is a member of a group of
trades or businesses under common control within the meaning of Section 414(c) of
the Internal Revenue Code of which that Person is a member; and (iii) any
member of an affiliated service group within the meaning of Section 414(m) or
(o) of the Internal Revenue Code of which that Person, any corporation
described in clause (i) above or any trade or business described in clause
(ii) above is a member. Any former ERISA Affiliate of Holdings or any of
its Subsidiaries shall continue to be considered an ERISA Affiliate of Holdings
or any such Subsidiary within the meaning of this definition with respect to
the period such entity was an ERISA Affiliate of Holdings or such Subsidiary
and with respect to liabilities arising after such period for which Holdings or
such Subsidiary could be liable under the Internal Revenue Code or ERISA.

“ERISA Event” means
(i) a “reportable event” within the meaning of Section 4043 of ERISA
and the regulations issued thereunder with respect to any Pension Plan
(excluding those for which the provision for 30-day notice to the PBGC
has been waived by regulation); (ii) the failure to meet the minimum
funding standard of Section 412 of the Internal Revenue Code with respect
to any Pension Plan (whether or not waived in accordance with Section 412(d) of
the Internal Revenue Code) or the failure to make by its due date a required
installment under Section 412(m) of the Internal Revenue Code with
respect to any Pension Plan or the failure to make any required contribution to
a Multiemployer Plan; (iii) the provision by the administrator of any
Pension Plan pursuant to Section 4041(a)(2) of ERISA of a notice of
intent to terminate such plan in a distress termination described in Section 4041(c) of
ERISA; (iv) the withdrawal by Holdings, any of its Subsidiaries or any of
their respective ERISA Affiliates from any Pension Plan with two or more
contributing sponsors or the termination of any such Pension Plan resulting in
liability to Holdings, any of its Subsidiaries or any of their respective ERISA
Affiliates pursuant to Section 4063 or 4064 of ERISA; (v) the
institution by the PBGC of proceedings to terminate any Pension Plan, or the
occurrence of any event or condition which might constitute grounds under ERISA
for the termination of, or the appointment of a trustee to administer, any
Pension Plan; (vi) the imposition of liability on Holdings, any of its
Subsidiaries or any of their respective ERISA Affiliates pursuant to Section 4062(e) or
4069 of ERISA or by reason of the application of Section 4212(c) of
ERISA; (vii) the withdrawal of Holdings, any of its Subsidiaries or any of
their respective ERISA Affiliates in a 

 14
 

 

complete or partial
withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any
Multiemployer Plan if there is any potential liability therefor, or the receipt
by Holdings, any of its Subsidiaries or any of their respective ERISA
Affiliates of notice from any Multiemployer Plan that it is in reorganization
or insolvency pursuant to Section 4241 or 4245 of ERISA, or that it
intends to terminate or has terminated under Section 4041A or 4042 of
ERISA; (viii) the occurrence of an act or omission which could give rise
to the imposition on Holdings, any of its Subsidiaries or any of their
respective ERISA Affiliates of fines, penalties, taxes or related charges under
Chapter 43 of the Internal Revenue Code or under Section 409, Section 502(c),
(i) or (l), or Section 4071 of ERISA in respect of any Employee
Benefit Plan; (ix) the assertion of a material claim (other than routine
claims for benefits) against any Employee Benefit Plan other than a
Multiemployer Plan or the assets thereof, or against Holdings, any of its
Subsidiaries or any of their respective ERISA Affiliates in connection with any
Employee Benefit Plan; (x) receipt from the Internal Revenue Service of
notice of the failure of any Pension Plan (or any other Employee Benefit Plan
intended to be qualified under Section 401(a) of the Internal Revenue
Code) to qualify under Section 401(a) of the Internal Revenue Code,
or the failure of any trust forming part of any Pension Plan to qualify for
exemption from taxation under Section 501(a) of the Internal Revenue
Code; or (xi) the imposition of a Lien pursuant to Section 401(a)(29) or
412(n) of the Internal Revenue Code or pursuant to ERISA with respect to
any Pension Plan.

“Eurodollar Rate Loan”
means a Loan bearing interest at a rate determined by reference to the Adjusted
Eurodollar Rate.

“Event of Default”
means each of the conditions or events set forth in Section 8.1.

“Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time, and
any successor statute.

“Existing Indebtedness”
means Indebtedness described in Schedule 6.1.

“Existing Term Loan” means a
term loan made to Company pursuant to this Agreement in existence immediately
prior to the Second Amendment Effective Date.

“Existing Term Loan Commitment” means
the commitment of an Existing Term Loan Lender to make or otherwise fund an
Existing Term Loan pursuant to Section 2.1(a) of the Existing Credit
Agreement on the Closing Date, and “Existing Term Loan
Commitments” means such commitments of all such Lenders in the
aggregate.

“Existing Term Loan Lender”
means a Lender who funded or made an Existing Term Loan.

 15

 

“Facility” means
any real property (including all buildings, fixtures or other improvements
located thereon) now, hereafter or heretofore owned, leased, operated or used
by Holdings or any of its Subsidiaries or any of their respective predecessors
or Affiliates.

“Fair Share” as
defined in Section 7.2.

“Fair Share Contribution Amount”
as defined in Section 7.2.

“Federal Funds Effective Rate”
means for any day, the rate per annum (expressed, as a decimal, rounded
upwards, if necessary, to the next higher 1/100 of 1%) equal to the weighted
average of the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers on such day, as
published by the Federal Reserve Bank of New York on the Business Day next
succeeding such day; provided, (i) if such day is not a Business
Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next
succeeding Business Day, and (ii) if no such rate is so published on such
next succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate charged to Administrative Agent, in its capacity as a Lender, on
such day on such transactions as determined by Administrative Agent.

“Finance Sub” means
DI Finance Sub LLC, a Delaware limited liability company.

“Financial Officer Certification”
means, with respect to the financial statements for which such certification is
required, the certification of the chief financial officer of Holdings that
such financial statements fairly present, in all material respects, the
financial condition of Holdings and its Subsidiaries as at the dates indicated
and the results of their operations and their cash flows for the periods
indicated, subject to changes resulting from audit and normal year-end
adjustments and the absence of footnotes.

“Financial Plan” as
defined in Section 5.1(i).

“First Priority”
means, with respect to any Lien purported to be created in any Collateral
pursuant to any Collateral Document, that such Lien is the only Lien to which
such Collateral is subject, other than any Permitted Lien.

“Fiscal Quarter”
means a fiscal quarter of any Fiscal Year.

“Fiscal Year” means
the fiscal year of Company and its Subsidiaries ending on the Friday closest to
March 31 of each calendar year.

 16
 

 

“Flood Hazard Property”
means any Real Estate Asset subject to a mortgage in favor of Collateral Agent,
for the benefit of the Lenders, and located in an area designated by the
Federal Emergency Management Agency as having special flood or mud slide
hazards.

“Foreign Subsidiary”
means any Subsidiary that is not a Domestic Subsidiary.

“Funding Default”
as defined in Section 2.22.

“Funding Guarantors”
as defined in Section 7.2.

“Funding Notice”
means a notice substantially in the form of Exhibit A-1.

“GAAP” means,
subject to the limitations on the application thereof set forth in Section 1.2,
United States generally accepted accounting principles in effect as of the date
of determination thereof.

“Governmental Acts”
means any act or omission, whether rightful or wrongful, of any present or
future de jure or de facto Governmental Authority.

“Governmental Authority”
means any federal, state, municipal, national or other government, governmental
department, commission, board, bureau, court, agency or instrumentality or
political subdivision thereof or any entity or officer exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to any government or any court, in each case whether associated with a state of
the United States, the United States, or a foreign entity or government.

“Governmental Authorization”
means any permit, license, authorization, plan, directive, consent order or
consent decree of or from any Governmental Authority.

“Grantor” as
defined in the Pledge and Security Agreement.

“GSCP” as defined
in the preamble hereto.

“Guaranteed Obligations” as
defined in Section 7.1.

“Guarantor” means
each of Holdings and each Domestic Subsidiary of Holdings (other than Company).

“Guarantor Subsidiary”
means each Guarantor other than Holdings.

“Guaranty” means
the guaranty of each Guarantor set forth in Section 7.

 17
 

 

“Hazardous Materials”
means any chemical, material or substance under any Environmental Law.

“Hazardous Materials Activity”
means any activity, event or occurrence involving any Hazardous Materials,
including the use, manufacture, possession, storage, holding, presence,
existence, location, Release, threatened Release, discharge, placement,
generation, transportation, processing, construction, treatment, abatement,
removal, remediation, disposal, disposition or handling of any Hazardous
Materials, and any corrective action or response action with respect to any of
the foregoing.

“Hedge Agreement”
means an Interest Rate Agreement or a Currency Agreement entered into with a
Lender Counterparty in order to satisfy the requirements of this Agreement.

“Highest Lawful Rate”
means the maximum lawful interest rate, if any, that at any time or from time
to time may be contracted for, charged, or received under the laws applicable
to any Lender from time to time in effect.

“Historical Financial Statements”
means as of the Closing Date, (i) the audited financial statements of
Holdings and its Subsidiaries, for the immediately preceding two Fiscal Years,
consisting of balance sheets and the related consolidated statements of income,
stockholders’ equity and cash flows for such Fiscal Years, and (ii) the
unaudited financial statements of Holdings and its Subsidiaries as at the most
recently ended Fiscal Quarter, consisting of a balance sheet and the related
consolidated statements of income, stockholders’ equity and cash flows for the
three-, six-or nine-month period, as applicable, ending on
such date, and, in the case of clauses (i) and (ii), certified by the
chief financial officer of Company that they fairly present, in all material
respects, the financial condition of Holdings and its Subsidiaries as at the
dates indicated and the results of their operations and their cash flows for
the periods indicated, subject, in the case of clause (ii), to changes
resulting from audit and normal year-end adjustments and the absence of
footnotes.

“Holdings” as
defined in the preamble hereto.

“Increased Amount Date”
as defined in Section 2.24.

“Increased-Cost Lenders”
as defined in Section 2.23.

“Indebtedness”, as
applied to any Person, means, without duplication, (i) all indebtedness
for borrowed money; (ii) that portion of obligations with respect to
Capital Leases that is properly classified as a liability on a balance sheet in
conformity with GAAP; (iii) notes payable and drafts accepted representing
extensions of credit whether or not representing 

 18
 

 

obligations for borrowed
money (excluding accounts payable which are classified as current liabilities
in accordance with GAAP and which are not more than 90 days past due); (iv) any
obligation owed for all or any part of the deferred purchase price of property
or services (excluding any such obligations incurred under ERISA), which
purchase price is (a) due more than six months from the date of incurrence
of the obligation in respect thereof or (b) evidenced by a note or similar
written instrument; (v) all indebtedness secured by any Lien on any
property or asset owned or held by that Person regardless of whether the
indebtedness secured thereby shall have been assumed by that Person or is
nonrecourse to the credit of that Person; (vi) the face amount of any
letter of credit issued for the account of that Person or as to which that
Person is otherwise liable for reimbursement of drawings; (vii) the direct
or indirect guaranty, endorsement (otherwise than for collection or deposit in
the ordinary course of business), co-making, discounting with recourse or
sale with recourse by such Person of the obligation of another; (viii) any
obligation of such Person the primary purpose or intent of which is to provide
assurance to an obligee that the obligation of the obligor thereof will be paid
or discharged, or any agreement relating thereto will be complied with, or the
holders thereof will be protected (in whole or in part) against loss in respect
thereof; (ix) any liability of such Person for an obligation of another
through any agreement (contingent or otherwise) (a) to purchase,
repurchase or otherwise acquire such obligation or any security therefor, or to
provide funds for the payment or discharge of such obligation (whether in the
form of loans, advances, stock purchases, capital contributions or otherwise)
or (b) to maintain the solvency or any balance sheet item, level of income
or financial condition of another if, in the case of any agreement described
under subclauses (a) or (b) of this clause (ix), the primary purpose
or intent thereof is as described in clause (viii) above; and (x) all
obligations of such Person in respect of any exchange traded or over the
counter derivative transaction, including, without limitation, any Interest
Rate Agreement and Currency Agreement, whether entered into for hedging or
speculative purposes; provided, in no event shall obligations under any
Interest Rate Agreement and any Currency Agreement be deemed “Indebtedness” for
any purpose under Section 6.8. For purposes of this definition, (A) the
amount of any Indebtedness represented by a guaranty or other similar instrument
shall be the lesser of the principal amount of the obligations guaranteed and
still outstanding and the maximum amount for which the guaranteeing Person may
be liable pursuant to the terms of the instrument embodying such Indebtedness, (B) the
amount of any Indebtedness described in clause (v) above for which
recourse is limited to certain property of such Person shall be the lower of
the amount of the obligation and the fair market value of the property securing
such obligation, and (C) the principal amount of the Indebtedness under
any Interest Rate Agreement or Currency Agreement at any time shall be equal to
the amount payable as a result of the termination of such Interest Rate
Agreement or Currency Agreement at such time.

“Indemnified Liabilities”
means, collectively, any and all liabilities, obligations, losses, damages
(including natural resource damages), penalties, claims (including
Environmental Claims), costs (including the costs of any investigation, study,
sampling, testing, 

 19
 

 

abatement, cleanup,
removal, remediation or other response action necessary to remove, remediate,
clean up or abate any Hazardous Materials Activity), expenses and disbursements
of any kind or nature whatsoever (including the reasonable fees and
disbursements of counsel for Indemnitees in connection with any investigative,
administrative or judicial proceeding commenced or threatened by any Person,
whether or not any such Indemnitee shall be designated as a party or a
potential party thereto, and any fees or expenses incurred by Indemnitees in
enforcing this indemnity), whether direct, indirect or consequential and
whether based on any federal, state or foreign laws, statutes, rules or
regulations (including securities and commercial laws, statutes, rules or
regulations and Environmental Laws), on common law or equitable cause or on
contract or otherwise, that may be imposed on, incurred by, or asserted against
any such Indemnitee, in any manner relating to or arising out of (i) this
Agreement or the other Credit Documents or the transactions contemplated hereby
or thereby (including the Lenders’ agreement to make Credit Extensions or the
use or intended use of the proceeds thereof, or any enforcement of any of the
Credit Documents (including any sale of, collection from, or other realization
upon any of the Collateral or the enforcement of the Guaranty)); or (ii) any
Environmental Claim or any Hazardous Materials Activity relating to or arising
from, directly or indirectly, any past or present activity, operation, land ownership,
or practice of Holdings or any of its Subsidiaries.

“Indemnitee” as
defined in Section 10.3.

“Installment” as
defined in Section 2.12.

“Installment Date”
as defined in Section 2.12.

“Interest Coverage Ratio”
means the ratio as of the last day of any Fiscal Quarter of (i) Consolidated
Adjusted EBITDA for the four-Fiscal Quarter period then ended, to (ii) Consolidated
Cash Interest Expense for such four-Fiscal Quarter period.

“Interest Payment Date”
means with respect to (i) any Revolving Loan that is a Base Rate Loan,
each March 31, June 30, September 30 and December 31 of
each year, commencing on the first such date to occur after the Closing Date
and the final maturity date of such Loan; (ii) any Revolving Loan that is
a Eurodollar Rate Loan, the last day of each Interest Period applicable to such
Loan; provided, in the case of each Interest Period of longer than three
months “Interest Payment Date” shall also include each date that is three
months, or an integral multiple thereof, after the commencement of such
Interest Period; and (iii) Term Loans, each April 1, July 1, October 1
and January 1 of each year, commencing on July 1, 2005 through the
final maturity date of such Loan.

“Interest Period”
means, in connection with a Eurodollar Rate Loan, an interest period of one-,
two-, three- or six-months (or nine- or twelve-months, if
available to all Lenders), as selected by Company in the applicable Funding
Notice or Conversion/Continuation Notice, (i) 

 20
 

 

initially, commencing on
the Credit Date or Conver­sion/Continuation Date thereof, as the case may be;
and (ii) thereafter, commencing on the day on which the immediately
preceding Interest Period expires; provided, (a) if an Interest
Period would otherwise expire on a day that is not a Business Day, such
Interest Period shall expire on the next succeeding Business Day unless no
further Business Day occurs in such month, in which case such Interest Period
shall expire on the immediately preceding Business Day; (b) any Interest
Period that begins on the last Business Day of a calendar month (or on a day
for which there is no numerically corresponding day in the calendar month at
the end of such Interest Period) shall, subject to clauses (c) and (d), of
this definition, end on the last Business Day of a calendar month; (c) no
Interest Period with respect to any portion of the Term Loans shall extend
beyond the Term Loan Maturity Date; and (d) no Interest Period with
respect to any portion of the Revolving Loans shall extend beyond the Revolving
Commitment Termination Date.

“Interest Rate Agreement”
means any interest rate swap agreement (whether from fixed to floating or from
floating to fixed), interest rate cap agreement, interest rate collar
agreement, interest rate hedging agreement 
or other similar agreement or arrangement, each of which is for the
purpose of hedging the interest rate exposure associated with Holdings’ and its
Subsidiaries’ operations and not for speculative purposes.

“Interest Rate Determination Date”
means, with respect to any Interest Period, the date that is two Business Days
prior to the first day of such Interest Period.

“Internal Revenue Code”
means the Internal Revenue Code of 1986, as amended to the Closing Date and
from time to time hereafter, and any successor statute.

“Investment” means (i) any
direct or indirect purchase or other acquisition by Holdings or any of its
Subsidiaries of, or of a beneficial interest in, any of the Securities of any
other Person (other than a Guarantor Subsidiary); (ii) any direct or
indirect purchase or other acquisition for value, by any Subsidiary of Holdings
from any Person (other than Holdings or any Guarantor Subsidiary), of any
Capital Stock of such Person; and (iii) any direct or indirect loan,
advance (other than advances to officers and employees for moving,
entertainment and travel expenses, drawing accounts and similar expenditures in
the ordinary course of business) or capital contribution by Holdings or any of
its Subsidiaries to any other Person (other than Holdings or any Guarantor Subsidiary),
including all indebtedness and accounts receivable from that other Person that
are not current assets or did not arise from sales to that other Person in the
ordinary course of business. The amount of any Investment shall be the original
cost of such Investment plus the cost of all additions thereto, without any
adjustments for increases or decreases in value, or write-ups, write-downs
or write-offs with respect to such Investment, minus the amount received
upon the sale, liquidation, repayment or return of such Investment.

 21
 

 

“Issuance Notice”
means an Issuance Notice substantially in the form of Exhibit A-3.

“Issuing Bank”
means Bank of America, N.A., as Issuing Bank hereunder, together with its
permitted successors and assigns in such capacity.

“Joinder Agreement” means a
Joinder Agreement substantially in the form of Exhibit M.

“Joint Venture”
means a joint venture, partnership or other similar arrangement, whether in
corporate, partnership or other legal form; provided, in no event shall
any corporate Subsidiary of any Person be considered to be a Joint Venture to
which such Person is a party.

“Landlord Personal Property
Collateral Access Agreement” means a Landlord Waiver and
Consent Agreement substantially in the form of Exhibit K with such amendments
or modifications as may be approved by Collateral Agent (such approval not to
be unreasonably withheld, conditioned or delayed).

“Lead Arranger”
means GSCP.

“Leasehold Property”
means any leasehold interest of any Credit Party as lessee under any lease of
real property, other than any such leasehold interest designated from time to
time by Collateral Agent in its sole discretion as not being required to be
included in the Collateral.

“Lender” and “Lenders” means (a) prior to the Second Amendment Effective
Date, each financial institution listed on the signature pages hereto as a
Lender, (b) effective as of the Second Amendment Effective Date, the
Persons signing the Second Amendment as either a Continuing Lender or a
Revolving Lender and (c) any other Person that becomes a party hereto
pursuant to an Assignment Agreement or a Joinder Agreement; provided
that the term “Lenders”, when used in the context of a particular Commitment
shall mean the Lenders having that Commitment.

“Lender
Counterparty” means
each Lender or any Affiliate of a Lender counterparty to a Hedge Agreement
(including any Person who is a Lender (or any Affiliate thereof) as of the date
of such Hedge Agreement but subsequently ceases to be a Lender) including,
without limitation, each such Affiliate that enters into a joinder agreement
with Collateral Agent.

“Letter of Credit”
means a commercial or standby letter of credit issued or to be issued by
Issuing Bank pursuant to this Agreement.

 22
 

 

“Letter of Credit Sublimit”
means the lesser of (i) $60,000,000 and (ii) the aggregate unused
amount of the Revolving Commitments then in effect.

“Letter of Credit Usage”
means, as at any date of determination, the sum (without duplication) of (i) the
maximum aggregate amount which is, or at any time thereafter may become,
available for drawing under all Letters of Credit then outstanding, and (ii) the
aggregate amount of all drawings under Letters of Credit honored by Issuing
Bank and not theretofore reimbursed by or on behalf of Company.

“Leverage Ratio”
means the ratio as of the last day of any Fiscal Quarter of (i) Consolidated
Total Debt as of such day to (ii) Consolidated Adjusted EBITDA for the
four-Fiscal Quarter period ending on such date.

“Lien” means (i) any
lien, mortgage, pledge, assignment, security interest, charge or encumbrance of
any kind (including any agreement to give any of the foregoing, any conditional
sale or other title retention agreement, and any lease in the nature thereof)
and any option, trust or other preferential arrangement having the practical
effect of any of the foregoing and (ii) in the case of Securities
constituting Collateral, any purchase option, call or similar right of a third
party with respect to such Securities.

“Loan” means a Term
Loan, a Revolving Loan and a Swing Line Loan.

“Margin Stock” as
defined in Regulation U of the Board of Governors of the Federal Reserve
System as in effect from time to time.

“Material Adverse Effect”
means a material adverse effect on and/or material adverse developments with
respect to (i) the business, operations, properties, assets or financial
condition of Holdings and its Subsidiaries taken as a whole; (ii) the
ability of the Company or the Credit Parties, taken as a whole, to fully and
timely perform its or their Obligations; (iii) the legality, validity,
binding effect or enforceability against a Credit Party of a material Credit
Document to which it is a party; or (iv) the rights, remedies and benefits
available to, or conferred upon, any Agent and any Lender or any Secured Party
under any material Credit Document.

“Material Contract”
means any contract or other written agreement to which Holdings or any of its
Subsidiaries is a party (other than the Credit Documents) for which breach,
nonperformance, cancellation or failure to renew could reasonably be expected
to have a Material Adverse Effect.

“Material Real Estate Asset’’
means (i) (a) any fee-owned Real Estate Asset having a fair
market value in excess of $1,000,000 as of the date of the acquisition thereof
and 

 23
 

 

(b) all Leasehold
Properties other than those with respect to which the aggregate payments under
the term of the lease are less than $1,000,000 per annum or (ii) any Real
Estate Asset that the Requisite Lenders have determined in their reasonable
discretion is material to the business, operations, properties, assets,
financial condition or prospects of Holdings and its Subsidiaries, taken as a
whole.

“Merger” means the merger of DI
Finance Sub LLC with and into DynCorp International LLC, with DynCorp
International LLC as the survivor.

“Moody’s” means
Moody’s Investors Service, Inc.

“Mortgage” means a
mortgage or deed of trust substantially in the form of Exhibit J, as it
may be amended, supplemented or otherwise modified from time to time.

“Multiemployer Plan”
means any Employee Benefit Plan which is a “multiemployer plan” as defined in Section 3(37)
of ERISA.

“NAIC” means The
National Association of Insurance Commissioners, and any successor thereto.

“Narrative Report”
means, with respect to the financial statements for which such narrative report
is required, a narrative report describing the operations of Company and
its Subsidiaries in the form prepared for presentation to senior management
thereof for the applicable month, Fiscal Quarter or Fiscal Year and for the
period from the beginning of the then current Fiscal Year to the end of such
period to which such financial statements relate; provided, that such
narrative report may be in the form of a management’s discussion and analysis
of financial condition and results of operations customarily included in
filings made with the Securities and Exchange Commission.

“Net Asset Sale Proceeds”
means, with respect to any Asset Sale, an amount equal to:  (i) Cash payments (including any Cash
received by way of deferred payment pursuant to, or by monetization of, a note
receivable or otherwise, but only as and when so received) received by Holdings
or any of its Subsidiaries from such Asset Sale (net of purchase price
adjustments reasonably expected to be payable in connection therewith; provided
that to the extent such purchase price adjustment is determined to be not
payable or is otherwise not paid within 180 days of such Asset Sale (other than
as a result of a dispute with respect to such purchase price adjustment which
is subject to a resolution procedure set forth in the applicable transaction
documents), such proceeds shall constitute Net Asset Sale Proceeds), minus
(ii) any bona fide costs incurred in connection with such Asset Sale,
including (a) income or gains taxes payable by the seller as a result of
any gain recognized in connection with such Asset Sale and any transfer,
documentary or other taxes payable in connection therewith, (b) payment of
the 

 24
 

 

outstanding principal
amount of, premium or penalty, if any, and interest on any Indebtedness (other
than the Loans) that is secured by a Lien on the stock or assets in question
and that is required to be repaid under the terms thereof as a result of such
Asset Sale, (c) a reasonable reserve for any indemnification payments
(fixed or contingent) attributable to seller’s indemnities and representa­tions
and warranties to purchaser in respect of such Asset Sale undertaken by
Holdings or any of its Subsidiaries in connection with such Asset Sale
including, without limitation, pension and other post-employment benefit
liabilities and liabilities related to environmental matters associated with
such Asset Sale, and (d) brokerage fees, accountants’ fees, investment
banking fees, legal fees, costs and expenses, survey costs, title insurance
premiums and other customary fees, costs and expenses actually incurred in
connection with such Asset Sale.

“Net Insurance/Condemnation Proceeds”
means an amount equal to:  (i) any
Cash payments or proceeds received by Holdings or any of its Subsidiaries (a) under
any casualty insurance policy in respect of a covered loss thereunder or (b) as
a result of the taking of any assets of Holdings or any of its Subsidiaries by
any Person pursuant to the power of eminent domain, condemnation or otherwise,
or pursuant to a sale of any such assets to a purchaser with such power under
threat of such a taking, minus (ii) (a) any actual and
reasonable costs incurred by Holdings or any of its Subsidiaries in connection
with the adjustment or settlement of any claims of Holdings or such Subsidiary
in respect of such loss, eminent domain, condemnation or otherwise or such
sale, including, without limitation, payment of the outstanding principal
amount of, premium or penalty, if any, and interest on any Indebtedness (other
than the Loans) that is secured by a Lien on the assets in question and that is
required to be repaid under the terms thereof as a result of such loss, eminent
domain, condemnation or otherwise or such sale, and (b) any bona fide
costs incurred in connection with any sale of such assets as referred to in
clause (i)(b) of this definition, including income taxes payable as a
result of any gain recognized in connection therewith and any transfer,
documentary or other taxes payable in connection therewith.

“New Revolving Commitments”
as defined in Section 2.24.

“New Revolving Lender”
as defined in Section 2.24.

“New Revolving Loan”
as defined in Section 2.24.

“New Term Loan” means a term
loan made to Company on the Second Amendment Effective Date pursuant to Section 2.1(a) of
this Agreement, as amended by the Second Amendment.

“New Term Loan Commitment” means
the commitment of a Lender, if any, to make or otherwise fund a New Term Loan
hereunder pursuant to Section 2.1(a) of this 

 25
 

 

Agreement, as amended by
the Second Amendment, on the Second Amendment Effective Date; and “New Term Loan Commitments” means such commitments of all
such Lenders in the aggregate. The amount of each Lender’s New Term Loan
Commitment, if any, is on file with the Administrative Agent or contained in
the applicable Assignment Agreement, subject to any adjustment or reduction
pursuant to the terms and conditions hereof. The aggregate amount of the New
Term Loan Commitments as of the Second Amendment Effective Date is $341,550,000.

“New
Term Loan Lender” means each Lender with a New Term Loan
Commitment or with outstanding New Term Loans.

“New Term Loan Note” means a
promissory note in the form Exhibit B-1, as it may be amended,
supplemented or otherwise modified from time to time.

“Non-Consenting Lender” as defined in Section 2.23.

“Non-US Lender”
as defined in Section 2.20(c).

“Note” means a New
Term Loan Note, a Revolving Loan Note or a Swing Line Note.

“Notice” means a
Funding Notice, an Issuance Notice, or a Conversion/Continuation Notice.

“Obligations” means
all obligations of every nature of each Credit Party from time to time owed to
the Agents (including former Agents), the Lenders or any of them and Lender
Counterparties, under any Credit Document or Hedge Agreement, whether for
principal, interest (including interest which, but for the filing of a petition
in bankruptcy with respect to such Credit Party, would have accrued on any
Obligation, whether or not a claim is allowed against such Credit Party for
such interest in the related bankruptcy proceeding), reimbursement of amounts
drawn under Letters of Credit, payments for early termination of Hedge
Agreements, fees, expenses, indemnification or otherwise.

“Obligee Guarantor”
as defined in Section 7.7.

“Organizational Documents”
means (i) with respect to any corporation, its certificate or articles of
incorporation or organization, as amended, and its by-laws, as amended,
or, as the case may be, its memorandum and articles, as amended, (ii) with
respect to any limited partnership, its certificate of limited partnership, as
amended, and its partnership agreement, as amended, (iii) with respect to
any general partnership, its partnership agreement, as amended, (iv) with
respect to any limited liability company, its articles of organization, as
amended, and its operating agreement, as amended, and (v) with respect to
any other Person, comparable 

 26
 

 

instruments and
documents, as amended. In the event any term or condition of this Agreement or
any other Credit Document requires any Organizational Document to be certified
by a secretary of state or similar governmental official, the reference to any
such “Organizational Document” shall only be to a document of a type
customarily certified by such governmental official.

“PBGC” means the
Pension Benefit Guaranty Corporation or any successor thereto.

“Pension Plan”
means any Employee Benefit Plan, other than a Multiemployer Plan, which is
subject to Section 412 of the Internal Revenue Code or Section 302 of
ERISA.

“Permitted Acquisition”
means any acquisition by Company or any of its wholly-owned Subsidiaries,
whether by purchase, merger or otherwise, of all or substantially all of the
assets of, all of the Capital Stock of, or a business line or unit or a
division of, any Person; provided,

(i)            immediately prior to, and after
giving effect thereto, no Default or Event of Default shall have occurred and
be continuing or would result therefrom;

(ii)           all transactions in connection
therewith shall be consummated, in all material respects, in accordance with
all applicable laws and in conformity with all applicable Governmental
Authorizations;

(iii)          in the case of the acquisition of
Capital Stock, all of the Capital Stock (except for any such Securities in the
nature of directors’ qualifying shares required pursuant to applicable law)
acquired or otherwise issued by such Person or any newly formed Subsidiary of
Company in connection with such acquisition shall be owned 100% by Company or a
Guarantor Subsidiary thereof, and Company shall have taken, or caused to be
taken, as of the date such Person becomes a Subsidiary of Company, each of the
actions set forth in Sections 5.10 and/or 5.11, as applicable;

(iv)          Company and its Subsidiaries shall be
in compliance with the financial covenants set forth in Section 6.8 on a
pro forma basis after giving effect to such acquisition as of the last day of
the Fiscal Quarter most recently ended (as determined in accordance with Section 6.8(d));

(v)           Company shall have delivered to
Administrative Agent (A) at least 10 Business Days prior to such proposed
acquisition, a Compliance Certificate evidencing compliance with Section 6.8
as required under clause (iv) above, together with all relevant
financial information with respect to such acquired assets, including, 

 27
 

 

without
limitation, the aggregate consideration for such acquisition and any other
information required to demonstrate compliance with Section 6.8; and

(vi)          any Person or assets or division as
acquired in accordance herewith shall be in same business or lines of business
in which Company and/or its Subsidiaries are engaged as of the Closing Date or
any business reasonably related thereto.

“Permitted Holders”
means (a) Sponsor and its Affiliates and (b) any Person whose voting
rights with respect to Holdings’ Voting Stock are controlled by Sponsor and its
Affiliates.

“Permitted Liens”
means each of the Liens permitted pursuant to Section 6.2.

“Person” means and
includes natural persons, corporations, limited partnerships, general
partnerships, limited liability companies, limited liability partnerships,
joint stock companies, Joint Ventures, associations, companies, trusts, banks,
trust companies, land trusts, business trusts or other organizations, whether
or not legal entities, and Governmental Authorities.

“Pledge and Security Agreement”
means the Pledge and Security Agreement to be executed by Company and each
Guarantor substantially in the form of Exhibit I, as it may be amended,
supplemented or otherwise modified from time to time.

“Prime Rate” means
the rate of interest quoted in The Wall
Street Journal, Money Rates Section as the Prime Rate
(currently defined as the base rate on corporate loans posted by at least 75%
of the nation’s thirty (30) largest banks), as in effect from time to time. The
Prime Rate is a reference rate and does not necessarily represent the lowest or
best rate actually charged to any customer. Administrative Agent or any other
Lender may make commercial loans or other loans at rates of interest at, above
or below the Prime Rate.

“Principal Office”
means, for each of Administrative Agent, Swing Line Lender and Issuing Bank,
such Person’s “Principal Office” as set forth on Appendix B, or such other
office or office of a third party or sub-agent, as appropriate, as such Person
may from time to time designate in writing to Company, Administrative Agent and
each  Lender.

“Projections” as
defined in Section 4.8.

“Pro Rata Share”
means (i) with respect to all payments, computations and other matters
relating to the Term Loan of any Lender, the percentage obtained by dividing (a) the
Term Loan Exposure of that Lender by (b) the aggregate Term Loan Exposure
of all Lenders; and (ii) with respect to all payments, computations and
other matters relating to the 

 28
 

 

Revolving Commitment or
Revolving Loans of any Lender or any Letters of Credit issued or participations
purchased therein by any Lender or any participations in any Swing Line Loans
purchased by any Lender, the percentage obtained by dividing (a) the
Revolving Exposure of that Lender by (b) the aggregate Revolving Exposure
of all Lenders. For all other purposes with respect to each Lender, “Pro Rata
Share” means the percentage obtained by dividing (A) an amount equal to
the sum of the Term Loan Exposure and the Revolving Exposure of that Lender, by
(B) an amount equal to the sum of the aggregate Term Loan Exposure and the
aggregate Revolving Exposure of all Lenders.

“Purchase Agreement” means that
certain Purchase Agreement, dated as of December 12, 2004 (as amended,
supplemented or otherwise modified through the Closing Date, among Computer
Sciences Corporation, Seller, The Veritas Capital Fund II, L.P. and Holdings.

“Real Estate Asset”
means, at any time of determination, any interest (fee, leasehold or otherwise)
then owned by any Credit Party in any real property.

“Reaffirmation Agreement” means
a Reaffirmation Agreement substantially
in the form of Exhibit L to be executed by Company and each
Guarantor on the Second Amendment Effective Date, as it may be amended,
supplemented or otherwise modified from time to time.

“Refunded Swing Line Loans”
as defined in Section 2.3(b)(iv).

“Register” as
defined in Section 2.7(b).

“Regulation D”
means Regulation D of the Board of Governors of the Federal Reserve
System, as in effect from time to time.

“Reimbursement Date”
as defined in Section 2.4(d).

“Related Agreements”
means, collectively, the Purchase Agreement and the Senior Subordinated Note
Documents.

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

“Release” means any
release, spill, emission, leaking, pumping, pouring, injection, escaping,
deposit, disposal, discharge, dispersal, dumping, leaching or migration of any
Hazardous Material into the indoor or outdoor environment (including the
abandonment or 

 29
 

 

disposal of any barrels,
containers or other closed receptacles containing any Hazardous Material).

“Release Documents” as defined
in Section 9.8(a).

“Replacement Lender”
as defined in Section 2.23.

“Repricing Prepayment” as
defined in Section 2.13(c).

“Requisite Class Lenders”
means, at any time of determination, (i) for the Class of Lenders
having Term Loan Exposure, Lenders holding more than 50% of the aggregate Term
Loan Exposure of all Lenders; and (ii) for the Class of Lenders
having Revolving Exposure, Lenders holding more than 50% of the aggregate
Revolving Exposure of all Lenders.

“Requisite Lenders”
means one or more Lenders having or holding Term Loan Exposure and/or Revolving
Exposure and representing more than 50% of the sum of (i) the aggregate
Term Loan Exposure of all Lenders and (ii) the aggregate Revolving
Exposure of all Lenders.

“Restricted Junior Payment”
means (i) any dividend or other distribution, direct or indirect, on
account of any shares of any class of stock of Holdings or Company now or
hereafter outstanding, except a dividend payable solely in shares of that class
of stock to the holders of that class; (ii) any redemption, retirement,
sinking fund or similar payment, purchase or other acquisition for value,
direct or indirect, of any shares of any class of stock of Holdings or Company
now or hereafter outstanding; (iii) any payment made to retire, or to
obtain the surrender of, any outstanding warrants, options or other rights to
acquire shares of any class of stock of Holdings or Company now or hereafter
outstanding; and (iv) any payment or prepayment of principal of, premium,
if any, or interest on, or redemption, purchase, retirement, defeasance
(including in-substance or legal defeasance), sinking fund or similar
payment with respect to, any Subordinated Indebtedness.

“Revolving Commitment”
means the commitment of a Lender to make or otherwise fund any Revolving Loan
and to acquire participations in Letters of Credit and Swing Line Loans
hereunder and “Revolving Commitments” means
such commitments of all Lenders in the aggregate.  The amount of each Lender’s Revolving
Commitment, if any, is set forth on Appendix A-2 or in the applicable
Assignment Agreement, subject to any adjustment or reduction pursuant to the
terms and conditions hereof. The aggregate amount of the Revolving Commitments
as of the Second Amendment Effective Date is $90,000,000.

“Revolving Commitment Period”
means the period from the Closing Date to but excluding the Revolving
Commitment Termination Date.

 30

 

“Revolving Commitment Termination
Date” means the earliest to occur of (i) the fifth
anniversary of the Closing Date, (ii) the date the Revolving Commitments
are permanently reduced to zero pursuant to Section 2.13(b) or 2.14,
and (iii) the date of the termination of the Revolving Commitments
pursuant to Section 8.1.

“Revolving Exposure”
means, with respect to any Lender as of any date of determination, (i) prior
to the termination of the Revolving Commitments, that Lender’s Revolving
Commitment; and (ii) after the termination of the Revolving Commitments,
the sum of (a) the aggregate outstanding principal amount of the Revolving
Loans of that Lender, (b) in the case of Issuing Bank, the aggregate
Letter of Credit Usage in respect of all Letters of Credit issued by that
Lender (net of any participations by Lenders in such Letters of Credit),  (c) the aggregate amount of all
participations by that Lender in any outstanding Letters of Credit or any
unreimbursed drawing under any Letter of Credit, (d) in the case of Swing
Line Lender, the aggregate outstanding principal amount of all Swing Line Loans
(net of any participations therein by other Lenders), and (e) the
aggregate amount of all participations therein by that Lender in any
outstanding Swing Line Loans.

“Revolving Loan”
means a Loan made by a Lender to Company pursuant to Section 2.2(a) and/or
2.22.

“Revolving Loan Note”
means a promissory note in the form of Exhibit B-2, as it may be
amended, supplemented or otherwise modified from time to time.

“S&P” means
Standard & Poor’s Ratings Group, a division of The McGraw Hill
Corporation.

“Second Amendment” means the
Second Amendment dated as of June 28, 2006.

“Second Amendment Effective Date”
means June 28, 2006.

“Second Amendment Effective Date
Certificate” means a Second Amendment Effective Date
Certificate substantially in the form of Exhibit G-1.

“Second Amendment Effective Date Solvency
Certificate” means a Second Amendment Effective Date Solvency
Certificate substantially in the form of Exhibit G-2.

“Secured Parties”
has the meaning assigned to that term in the Pledge and Security Agreement.

 31
 

 

“Securities” means
any stock, shares, partnership interests, voting trust certificates,
certificates of interest or participation in any profit-sharing agreement
or arrangement, options, warrants, bonds, debentures, notes, or other evidences
of indebtedness, secured or unsecured, convertible, subordinated or otherwise,
or in general any instruments commonly known as “securities” or any
certificates of interest, shares or participations in temporary or interim
certificates for the purchase or acquisition of, or any right to subscribe to,
purchase or acquire, any of the foregoing.

“Securities Act”
means the Securities Act of 1933, as amended from time to time, and any successor
statute.

“Seller” means
DynCorp.

“Senior Subordinated Note Agreement”
means any indenture, note purchase agreement or other agreement pursuant to
which the Senior Subordinated Notes are issued as in effect on the Closing Date
and thereafter amended from time to time subject to the requirements of this
Agreement.

“Senior Subordinated Note Documents”
means the Senior Subordinated Notes, the Senior Subordinated Note Agreement,
the Senior Subordinated Note Guarantees and all other documents executed and delivered
with respect to the Senior Subordinated Notes or the Senior Subordinated Note
Agreement.

“Senior Subordinated Note Guarantees”
shall mean the guarantees of the Guarantor Subsidiaries pursuant to the Senior
Subordinated Note Agreement.

“Senior Subordinated Notes”
means the 9.5% Senior Subordinated Notes due 2013 issued by Company and DIV
Capital Corporation and any registered notes issued by Company and DIV Capital
Corporation in exchange for, and as contemplated by, such notes with
substantially identical terms as such notes.

“Settlement Confirmation”
as defined in Section 10.6(b).

“Settlement Service”
as defined in Section 10.6(d).

“Significant Subsidiary” means
any Subsidiary that would be a “significant subsidiary” as defined in Article 1,
Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities
Act, as such Regulation is in effect on the Closing Date.

“Solvency Certificate” means
a Solvency Certificate of the chief financial officer of Holdings substantially
in the form of Exhibit G-2.

 32
 

 

“Solvent” means,
with respect to any Credit Party, that as of the date of determination, both (i) (a) the
sum of such Credit Party’s debt (including contingent liabilities) does not
exceed the present fair saleable value of such Credit Party’s present assets; (b) such
Credit Party’s capital is not unreasonably small in relation to its business as
contemplated on the Closing Date and reflected in the Projections or with
respect to any transaction contemplated or undertaken after the Closing Date;
and (c) such Person has not incurred and does not intend to incur, or
believe (nor should it reasonably believe) that it will incur, debts beyond its
ability to pay such debts as they become due (whether at maturity or
otherwise); and (ii) to the extent different from the standard set forth
in clause (i), such Person is “solvent” within the meaning given that term and
similar terms under the Bankruptcy Code and applicable laws in the states of
California, Delaware, Nevada, Texas and Virginia relating to fraudulent transfers
and conveyances. For purposes of this definition, the amount of any contingent
liability at any time shall be computed as the amount that, in light of all of
the facts and circumstances existing at such time, represents the amount that
can reasonably be expected to become an actual or matured liability
(irrespective of whether such contingent liabilities meet the criteria for
accrual under Statement of Financial Accounting Standard No.5).

“Sponsor” means
Veritas Capital Management II, L.L.C.

“Subject Transaction”
as defined in Section 6.8(d).

“Subordinated Indebtedness”
means (i) all obligations under the Senior Subordinated Note Documents and
(ii) Indebtedness that is subordinated in right of payment to the
Obligations on terms substantially the same as the subordination provisions
contained in the Senior Subordinated Note Documents or otherwise reasonably
satisfactory to the Administrative Agent.

“Subsidiary” means,
with respect to any Person, any corporation, partnership, limited liability
company, association, joint venture or other business entity of which more than
50% of the Voting Stock of such entity is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person or a combination thereof; provided, in determining the
percentage of ownership interests of any Person controlled by another Person,
no ownership interest in the nature of a “qualifying share” of the former
Person shall be deemed to be outstanding.

“Swing Line Lender”
means GSCP in its capacity as Swing Line Lender hereunder, together with its
permitted successors and assigns in such capacity.

“Swing Line Loan”
means a Loan made by Swing Line Lender to Company pursuant to Section 2.3.

 33
 

 

“Swing Line Note”
means a promissory note in the form of Exhibit B-3, as it may be
amended, supplemented or otherwise modified from time to time.

“Swing Line Sublimit”
means the lesser of (i) $5,000,000, and (ii) the aggregate unused
amount of Revolving Commitments then in effect.

“Syndication Agent”
as defined in the preamble hereto.

“Tax” means any
present or future tax, levy, impost, duty, assessment, charge, fee, deduction
or withholding of any nature and whatever called, by whomsoever, on whomsoever
and wherever imposed, levied, collected, withheld or assessed; provided,
“Tax on the overall net income” of a Person shall be construed as a reference
to a tax imposed by the jurisdiction in which that Person is organized or in
which that Person’s applicable principal office (and/or, in the case of a
Lender, its lending office) is located or in which that Person (and/or, in the
case of a Lender, its lending office) is deemed to be doing business on all or
part of the net income, profits or gains (whether worldwide, or only insofar as
such income, profits or gains are considered to arise in or to relate to a
particular jurisdiction, or otherwise) of that Person (and/or, in the case of a
Lender, its applicable lending office).

“Term Loan” means a
New Term Loan.

“Term Loan Commitment”
means the New Term Loan Commitment of a Lender and “Term Loan Commitments” means such commitments of all Lenders
in the aggregate.

“Term Loan Exposure”
means, with respect to any Lender, as of any date of determination, the
outstanding principal amount of the Term Loans of such Lender; provided,
at any time prior to the making of the Term Loans, the Term Loan Exposure of
any Lender shall be equal to such Lender’s Term Loan Commitment.

“Term Loan Maturity Date”
means the earlier of (i) the sixth anniversary of the Closing Date, and (ii) the
date that all Term Loans shall become due and payable in full hereunder,
whether by acceleration or otherwise.

“Terminated Lender”
as defined in Section 2.23.

“Total Utilization of Revolving
Commitments” means, as at any date of determination, the sum
of (i) the aggregate principal amount of all outstanding Revolving Loans
(other than Revolving Loans made for the purpose of repaying any Refunded Swing
Line Loans or reimbursing Issuing Bank for any amount drawn under any Letter of
Credit, but not yet so 

 34
 

 

applied), (ii) the
aggregate principal amount of all outstanding Swing Line Loans, and (iii) the
Letter of Credit Usage.

“Transaction Costs”
means the fees, costs and expenses payable by Holdings, Company or any of
Company’s Subsidiaries on or before the Closing Date or within a reasonable
period of time thereafter in connection with the transactions contemplated by
the Credit Documents and the Related Agreements, which Transaction Costs shall
not exceed $40,000,000.

“Type of Loan” means
(i) with respect to either Term Loans or Revolving Loans, a Base Rate Loan
or a Eurodollar Rate Loan, and (ii) with respect to Swing Line Loans, a
Base Rate Loan.

“UCC” means the
Uniform Commercial Code (or any similar or equivalent legislation) as in effect
in any applicable jurisdiction.

“Unadjusted Eurodollar Rate Component”
means that component of the interest costs to Company in respect of a
Eurodollar Rate Loan that is based upon the rate obtained pursuant to clause (i) of
the definition of Adjusted Eurodollar Rate.

“Voting Stock” of any Person as
of any date means the Capital Stock of such Person (for the purposes of this
definition, the “issuer”) that is at that time entitled (without regard to the
occurrence of any contingency) to vote in the election of the Person or Persons
(whether directors, managers, trustees, or other Persons performing similar
functions) having the power to direct or cause the direction of the management
and policies of the issuer.

1.2.   Accounting
Terms. Except as otherwise expressly provided herein, all
accounting terms not otherwise defined herein shall have the meanings assigned
to them in conformity with GAAP. Financial
statements and other information required to be delivered by Holdings to
Lenders pursuant to Section 5.1(a), 5.1(b) and 5.1(c) shall be
prepared in accordance with GAAP as in effect at the time of such preparation
(and delivered together with the reconciliation statements provided for in Section 5.1(e),
if applicable). Notwithstanding the foregoing, calculations in connection with
the definitions, covenants and other provisions hereof shall utilize accounting
principles and policies in conformity with those used to prepare the Historical
Financial Statements. In the event that any Accounting Change shall occur and
such change results in a change in the method of calculation of financial
covenants, standards or terms in this Agreement, then Company and
Administrative Agent agree to enter into negotiations to amend such provisions
of this Agreement so as to equitably reflect such Accounting Change with the
desired result that the criteria for evaluating Company’s financial condition
shall be the same after such Accounting Change as if such Accounting Change had
not been made. Until such time as such an amendment shall have been executed
and delivered by Company and the 

 35
 

 

Requisite Lenders, all
financial covenants, standards and terms in this Agreement shall continue to be
calculated or construed as if such Accounting Change had not occurred.

1.3.   Interpretation,
etc. Any of the terms defined herein may, unless the context
otherwise requires, be used in the singular or the plural, depending on the
reference. References herein to any
Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix,
a Schedule or an Exhibit, as the case may be, hereof unless otherwise
specifically provided. The use herein of the word “include” or “including”,
when following any general statement, term or matter, shall not be construed to
limit such statement, term or matter to the specific items or matters set forth
immediately following such word or to similar items or matters, whether or not
no limiting language (such as “without limitation” or “but not limited to” or
words of similar import) is used with reference thereto, but rather shall be
deemed to refer to all other items or matters that fall within the broadest
possible scope of such general statement, term or matter.

1.4.   Interrelationship
with the Existing Credit Agreement.

(a)           This Agreement is
intended to incorporate certain amendments to the provisions of the Existing
Credit Agreement and, except as expressly modified herein, (x) all of the
terms and provisions of the Existing Credit Agreement apply for the period
prior to the Second Amendment Effective Date, including any determinations of
payment dates, interest rates, compliance with covenants and other obligations,
accuracy of representations and warranties, Events of Default or any amount
that may be payable to the Administrative Agent or the Lenders (or their
assignees or replacements hereunder), and (y) the obligations under the
Existing Credit Agreement that became due and payable prior to the Second
Amendment Effective Date shall, from and after the Second Amendment Effective
Date, continue to be owing and be subject to the terms of this Agreement. All
references in the Notes and the other Credit Documents to (i) the “Credit
Agreement” shall be deemed to refer to this Agreement and (ii) the “Lenders”
or a “Lender” or to the “Administrative Agent” shall mean such terms as defined
in this Agreement. As to all periods occurring on or after the Second Amendment
Effective Date, all of the covenants set forth in the Existing Credit Agreement
shall be of no further force and effect (with respect to such periods), it
being understood that (x) all obligations of Holdings, Company and their
Subsidiaries under the Existing Credit Agreement shall be governed by this
Agreement from and after the Second Amendment Effective Date and (y) the
terms, provisions and covenants contained in the Existing Credit Agreement
shall continue to apply for all periods prior to the Second Amendment Effective
Date, and the effectiveness of this Agreement shall not excuse or waive any
failure to comply with any of the terms, provisions or covenants contained in
the Existing Credit Agreement for any period prior to the Second Amendment
Effective Date, except as otherwise provided in the Second Amendment.

(b)           Company, Holdings,
the Agents and the Lenders acknowledge and agree that all principal, interest,
fees, costs, reimbursable expenses and indemnification obligations 

 36
 

 

accruing or
arising under or in connection with the Existing Credit Agreement which remain
unpaid and outstanding as of the Second Amendment Effective Date shall be and
remain outstanding and payable as an obligation under this Agreement and the
other Credit Documents.

SECTION 2.  LOANS AND LETTERS OF CREDIT

2.1.   Term Loans.

(a)   Loan Commitments. Subject to the terms
and conditions hereof, each of the New Term Loan Lenders severally agrees,
pursuant to the Second Amendment, to make on the Second Amendment Effective
Date a New Term Loan to Company in an amount equal to its New Term Loan
Commitment; provided that each Continuing Lender having a New Term Loan
Commitment shall make New Term Loans on the Second Amendment Effective Date by
exchanging its Existing Term Loans for New Term Loans in the manner
contemplated by this Section 2.1 and by the Second Amendment. If any
Continuing Lender’s New Term Loan Commitment is greater than the amount of its
Existing Term Loans, such Continuing Lender shall comply with Section 2.1(b)(ii).
Company may make only one borrowing under the New Term Loan Commitments which
shall be made on the Second Amendment Effective Date. Any amount borrowed under
this Section 2.1(a) and subsequently repaid or prepaid may not be
reborrowed. Subject to Sections 2.12, 2.13(a) and 2.14, all amounts owed
hereunder with respect to the New Term Loans shall be paid in full no later
than the Term Loan Maturity Date. Each Lender’s New Term Loan Commitment shall
terminate immediately and without further action on the Second Amendment
Effective Date after giving effect to the funding of such Lender’s New Term
Loan Commitment on such date.

(b)   Borrowing Mechanics for Term Loans.

(i)   Company
shall deliver to Administrative Agent a fully executed Funding Notice for the
New Term Loans no later than one (1) Business Day prior to the Second
Amendment Effective Date. Promptly upon receipt by Administrative Agent of such
Funding Notice, Administrative Agent shall notify each Lender of the proposed
borrowing.

(ii)   Each Lender
with a New Term Loan Commitment (other than a Continuing Lender that is
exchanging its Existing Term Loans for New Term Loans in accordance with Section 2.1(a))
shall make its New Term Loan available to Administrative Agent not later than
12:00 p.m. (New York City time) on the Second Amendment Effective Date, by
wire transfer of same day funds in Dollars, at the Principal Office designated
by Administra­tive Agent. Upon satisfaction or waiver of the conditions
precedent specified in Section 3.3, Administrative Agent shall make the 

 37
 

 

proceeds of the New Term Loans available to Company on the
Second Amendment Effective Date by causing an amount of same day funds in
Dollars equal to the proceeds of all such Term Loans received by Administrative
Agent from Lenders to be credited to the account of Company at the Principal
Office designated by Administrative Agent or to such other account as may be
designated in writing to Administrative Agent by Company.

(iii)   The
Interest Period (and the respective Adjusted Eurodollar Rate) in effect on the
Second Amendment Effective Date in respect of the Existing Term Loans that are
being exchanged for New Term Loans on the Second Amendment Effective Date (the “Current Interest Period”) will continue to be in effect for
such New Term Loans following the Second Amendment Effective Date and will end
on the last day of the Current Interest Period, and for any New Term Loans
funded on the Second Amendment Effective Date the initial Interest Period will
end on the last day of the Current Interest Period and the Adjusted Eurodollar
Rate during such initial Interest Period will equal the Adjusted Eurodollar
Rate applicable to the New Term Loans exchanged for Existing Term Loans during
the Current Interest Period.

2.2.   Revolving Loans.

(a)   Revolving Commitments. During the
Revolving Commitment Period, subject to the terms and conditions hereof, each
Lender severally agrees to make Revolving Loans to Company in an aggregate
amount up to but not exceeding such Lender’s Revolving Commitment; provided,
that after giving effect to the making of any Revolving Loans in no event shall
the Total Utilization of Revolving Commitments exceed the Revolving Commitments
then in effect. Amounts borrowed pursuant to this Section 2.2(a) may
be repaid and reborrowed during the Revolving Commitment Period. Each Lender’s
Revolving Commitment shall expire on the Revolving Commitment Termination Date
and all Revolving Loans and all other amounts owed hereunder with respect to
the Revolving Loans and the Revolving Commitments shall be paid in full no
later than such date.

(b)   Borrowing Mechanics for Revolving Loans.

(i)   Except
pursuant to Section 2.4(d) and Section 2.3(b)(iv), Revolving
Loans that are Base Rate Loans shall be made in an aggregate minimum amount of
$1,000,000 and integral multiples of $500,000 in excess of that amount, and
Revolving Loans that are Eurodollar Rate Loans shall be in an aggregate minimum
amount of $1,000,000 and integral multiples of $500,000 in excess of that
amount.

(ii)   Whenever
Company desires that Lenders make Revolving Loans, Company shall deliver to
Administrative Agent a fully executed Funding Notice no later 

 38
 

 

than 10:00 a.m. (New York City time) at least three
Business Days in advance of the proposed Credit Date in the case of a
Eurodollar Rate Loan, and at least one Business Day in advance of the proposed
Credit Date in the case of a Revolving Loan that is a Base Rate Loan.

(iii)   Notice of
receipt of each Funding Notice in respect of Revolving Loans, together with the
amount of each Lender’s Pro Rata Share thereof, if any, together with the
applicable interest rate, shall be provided by Administrative Agent to each
applicable Lender by telefacsimile with reasonable promptness, but (provided
Administrative Agent shall have received such notice by 10:00 a.m. (New
York City time)) not later than 2:00 p.m. (New York City time) on the same
day as Administrative Agent’s receipt of such Notice from Company.

(iv)   Each Lender
shall make the amount of its Revolving Loan available to Administrative Agent
not later than 2:00 p.m. (New York City time) on the applicable Credit
Date by wire transfer of same day funds in Dollars, at the Principal Office
designated by Administrative Agent. Except as provided herein, upon
satisfaction or waiver of the conditions precedent specified herein,
Administrative Agent shall make the proceeds of such Revolving Loans available
to Company on the applicable Credit Date by causing an amount of same day funds
in Dollars equal to the proceeds of all such Revolving Loans received by Administrative
Agent from Lenders to be credited to the account of Company at the Principal
Office designated by Administrative Agent or such other account as may be
designated in writing to Administrative Agent by Company.

2.3.   Swing Line Loans.

(a)   Swing Line Loan Commitment. During the
Revolving Commitment Period, subject to the terms and conditions hereof, Swing
Line Lender hereby agrees to make Swing Line Loans to Company in the aggregate
amount up to but not exceeding the Swing Line Sublimit; provided, that
after giving effect to the making of any Swing Line Loan, in no event shall the
Total Utilization of Revolving Commitments exceed the Revolving Commitments
then in effect. Amounts borrowed pursuant to this Section 2.3 may be
repaid and reborrowed during the Revolving Commitment Period. Swing Line Lender’s
Revolving Commitment shall expire on the Revolving Commitment Termination Date
and all Swing Line Loans and all other amounts owed hereunder with respect to
the Swing Line Loans and the Revolving Commitments shall be paid in full no
later than such date.

(b)   Borrowing Mechanics for Swing Line Loans.

(i)   Swing Line
Loans shall be made in an aggregate minimum amount of $500,000 and integral
multiples of $100,000 in excess of that amount.

 39
 

 

(ii)   Whenever
Company desires that Swing Line Lender make a Swing Line Loan, Company shall
deliver to Administrative Agent a Funding Notice no later than 12:00 p.m.
(New York City time) on the proposed Credit Date.

(iii)   Swing Line
Lender shall make the amount of its Swing Line Loan available to Administrative
Agent not later than 2:00 p.m. (New York City time) on the applicable
Credit Date by wire transfer of same day funds in Dollars, at Administrative
Agent’s Principal Office. Except as provided herein, upon satisfaction or
waiver of the conditions precedent specified herein, Administrative Agent shall
make the proceeds of such Swing Line Loans available to Company on the
applicable Credit Date by causing an amount of same day funds in Dollars equal
to the proceeds of all such Swing Line Loans received by Administrative Agent
from Swing Line Lender to be credited to the account of Company at
Administrative Agent’s Principal Office, or to such other account as may be
designated in writing to Administrative Agent by Company.

(iv)   With
respect to any Swing Line Loans which have not been voluntarily prepaid by
Company pursuant to Section 2.13, Swing Line Lender may at any time in its
sole and absolute discretion, deliver to Administrative Agent (with a copy to
Company), no later than 11:00 a.m. (New York City time) at least one
Business Day in advance of the proposed Credit Date, a notice (which shall be
deemed to be a Funding Notice given by Company) requesting that each Lender
holding a Revolving Commitment make Revolving Loans that are Base Rate Loans to
Company on such Credit Date in an amount equal to the amount of such Swing Line
Loans (the “Refunded Swing Line Loans”) outstanding on the date such notice is given which
Swing Line Lender requests Lenders to prepay. Anything contained in this
Agreement to the contrary notwithstanding, (1) the proceeds of such
Revolving Loans made by the Lenders other than Swing Line Lender shall be
immediately delivered by Administrative Agent to Swing Line Lender (and not to
Company) and applied to repay a corresponding portion of the Refunded Swing
Line Loans and (2) on the day such Revolving Loans are made, Swing Line
Lender’s Pro Rata Share of the Refunded Swing Line Loans shall be deemed to be
paid with the proceeds of a Revolving Loan made by Swing Line Lender to
Company, and such portion of the Swing Line Loans deemed to be so paid shall no
longer be outstanding as Swing Line Loans and shall no longer be due under the
Swing Line Note of Swing Line Lender but shall instead constitute part of Swing
Line Lender’s outstanding Revolving Loans to Company and shall be due under the
Revolving Loan Note issued by Company to Swing Line Lender. Company hereby
authorizes Administrative Agent and Swing Line Lender to charge Company’s
accounts with Administrative Agent and Swing Line Lender (up to the amount
available in each such account) in order to immediately pay Swing Line Lender
the amount of the Refunded Swing Line Loans to the extent of the proceeds of such
Revolving Loans made by 

 40
 

 

Lenders,
including the Revolving Loans deemed to be made by Swing Line Lender, are not
sufficient to repay in full the Refunded Swing Line Loans. If any portion of
any such amount paid (or deemed to be paid) to Swing Line Lender should be
recovered by or on behalf of Company from Swing Line Lender in bankruptcy, by
assignment for the benefit of creditors or otherwise, the loss of the amount so
recovered shall be ratably shared among all Lenders in the manner contemplated
by Section 2.17.

(v)   If for any
reason Revolving Loans are not made pursuant to Section 2.3(b)(iv) in
an amount sufficient to repay any amounts owed to Swing Line Lender in respect
of any outstanding Swing Line Loans on or before the third Business Day after demand
for payment thereof by Swing Line Lender, each Lender holding a Revolving
Commitment shall be deemed to, and hereby agrees to, have purchased a
participation in such outstanding Swing Line Loans, and in an amount equal to
its Pro Rata Share of the applicable unpaid amount together with accrued
interest thereon. Upon one Business Day’s notice from Swing Line Lender, each
Lender holding a Revolving Commitment shall deliver to Swing Line Lender an
amount equal to its respective participation in the applicable unpaid amount in
same day funds at the Principal Office of Swing Line Lender. In order to
evidence such participation each Lender holding a Revolving Commitment agrees
to enter into a participation agreement at the request of Swing Line Lender in form
and substance reasonably satisfactory to Swing Line Lender. In the event any
Lender holding a Revolving Commitment fails to make available to Swing Line
Lender the amount of such Lender’s participation as provided in this paragraph,
Swing Line Lender shall be entitled to recover such amount on demand from such
Lender together with interest thereon for three Business Days at the rate
customarily used by Swing Line Lender for the correction of errors among banks
and thereafter at the Base Rate, as applicable.

(vi)  
Notwithstanding anything contained herein to the contrary, (1) each
Lender’s obligation to make Revolving Loans for the purpose of repaying any
Refunded Swing Line Loans pursuant to the second preceding paragraph and each
Lender’s obligation to purchase a participation in any unpaid Swing Line Loans
pursuant to the immediately preceding paragraph shall be absolute and
unconditional and shall not be affected by any circumstance, including without
limitation (A) any set-off, counterclaim, recoupment, defense or
other right which such Lender may have against Swing Line Lender, any Credit
Party or any other Person for any reason whatsoever; (B) the occurrence or
continuation of a Default or Event of Default; (C) any adverse change in
the business, operations, properties, assets, condition (financial or
otherwise) or prospects of any Credit Party; (D) any breach of this
Agreement or any other Credit Document by any party thereto; or (E) any
other circumstance, happening or event whatsoever, whether or not similar to
any of the foregoing; provided that such obligations of each Lender are 

 41
 

 

subject
to the condition that Swing Line Lender believed in good faith that all
conditions under Section 3.2 to the making of the applicable Refunded
Swing Line Loans or other unpaid Swing Line Loans, were satisfied at the time
such Refunded Swing Line Loans or unpaid Swing Line Loans were made, or the
satisfaction of any such condition not satisfied had been waived by the
Requisite Lenders prior to or at the time such Refunded Swing Line Loans or
other unpaid Swing Line Loans were made; and (2) Swing Line Lender shall
not be obligated to make any Swing Line Loans (A) if it has elected not to
do so after the occurrence and during the continuation of a Default or Event of
Default or (B) at a time when a Funding Default exists unless Swing Line
Lender has entered into arrangements satisfactory to it and Company to
eliminate Swing Line Lender’s risk with respect to the Defaulting Lender’s
participation in such Swing Ling Loan, including by cash collateralizing such
Defaulting Lender’s Pro Rata Share of the outstanding Swing Line Loans.

2.4.   Issuance of Letters of
Credit and Purchase of Participations Therein.

(a)   Letters of Credit. During the
Revolving Commitment Period, subject to the terms and conditions hereof,
Issuing Bank agrees to issue Letters of Credit for the account of Company in
the aggregate amount up to but not exceeding the Letter of Credit Sublimit; provided,
(i) each Letter of Credit shall be denominated in Dollars; (ii) the
stated amount of each Letter of Credit shall not be less than $250,000 or such
lesser amount as is acceptable to Issuing Bank; (iii) after giving effect
to such issuance, in no event shall the Total Utilization of Revolving Commit­ments
exceed the Revolving Commitments then in effect; (iv) after giving effect
to such issuance, in no event shall the Letter of Credit Usage exceed the
Letter of Credit Sublimit then in effect; (v) in no event shall any
standby Letter of Credit have an expiration date later than the earlier of (1) the
Revolving Commitment Termination Date and (2) the date which is one year
from the date of issuance of such standby Letter of Credit; and (vi) in no
event shall any commercial Letter of Credit (x) have an expiration date
later than the earlier of (1) the Revolving Commitment Termination Date
and (2) the date which is 180 days from the date of issuance of such
commercial Letter of Credit or (y) be issued if such commercial Letter of
Credit is otherwise unacceptable to Issuing Bank in its reasonable discretion. Subject
to the foregoing, Issuing Bank may agree that a standby Letter of Credit will
automatically be extended for one or more successive periods not to exceed one
year each, unless Issuing Bank elects not to extend for any such additional
period; provided, Issuing Bank shall not extend any such Letter of
Credit if it has received written notice that an Event of Default has occurred
and is continuing at the time Issuing Bank must elect to allow such extension; provided,
further, in the event a Funding Default exists, Issuing Bank shall not
be required to issue any Letter of Credit unless Issuing Bank has entered into
arrangements satisfactory to it and Company to eliminate Issuing Bank’s risk
with respect to the participation in Letters of Credit of the Defaulting Lender,
including by cash collateralizing such Defaulting Lender’s Pro Rata Share of
the Letter of Credit Usage.

 42

 

(b)   Notice of Issuance. Whenever Company
desires the issuance of a Letter of Credit, it shall deliver to Administrative
Agent an Issuance Notice no later than 12:00 p.m. (New York City time) at
least three Business Days (in the case of standby letters of credit) or five
Business Days (in the case of commercial letters of credit), or in each case
such shorter period as may be agreed to by Issuing Bank in any particular
instance, in advance of the proposed date of issuance. Upon satisfaction or
waiver of the conditions set forth in Section 3.2, Issuing Bank shall
issue the requested Letter of Credit only in accordance with Issuing Bank’s
standard operating procedures. Upon the issuance of any Letter of Credit or
amendment or modification to a Letter of Credit, Issuing Bank shall promptly
notify each Lender of such issuance, which notice shall be accompanied by a
copy of such Letter of Credit or amendment or modification to a Letter of
Credit and the amount of such Lender’s respective participation in such Letter
of Credit pursuant to Section 2.4(e).

(c)   Responsibility of Issuing Bank With
Respect to Requests for Drawings and Payments. In determining whether to
honor any drawing under any Letter of Credit by the beneficiary thereof,
Issuing Bank shall be responsible only to examine the documents delivered under
such Letter of Credit with reasonable care so as to ascertain whether they
appear on their face to be in accordance with the terms and conditions of such
Letter of Credit. As between Company and Issuing Bank, Company assumes all
risks of the acts and omissions of, or misuse of the Letters of Credit issued
by Issuing Bank, by the respective beneficiaries of such Letters of Credit. In
furtherance and not in limitation of the foregoing, Issuing Bank shall not be
responsible for: (i) the form, validity, sufficiency, accuracy,
genuineness or legal effect of any document submitted by any party in
connection with the application for and issuance of any such Letter of Credit,
even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged; (ii) the validity or
sufficiency of any instrument transferring or assigning or purporting to
transfer or assign any such Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason; (iii) failure of the beneficiary of
any such Letter of Credit to comply fully (so long as such beneficiary has
complied substantially) with any conditions required in order to draw upon such
Letter of Credit; (iv) errors, omissions, interruptions or delays in
transmission or delivery of any messages, by mail, cable, telegraph, telex or
otherwise, whether or not they be in cipher; (v) errors in interpretation
of technical terms; (vi) any loss or delay in the transmission or
otherwise of any document required in order to make a drawing under any such
Letter of Credit or of the proceeds thereof; (vii) the misapplication by
the beneficiary of any such Letter of Credit of the proceeds of any drawing
under such Letter of Credit; or (viii) any consequences arising from
causes beyond the control of Issuing Bank, including any Governmental Acts;
none of the above shall affect or impair, or prevent the vesting of, any of
Issuing Bank’s rights or powers hereunder. Without limiting the foregoing and
in furtherance thereof, any action taken or omitted by Issuing Bank under or in
connection with the Letters of Credit or any documents and certificates
delivered thereunder, if taken or omitted in good faith, shall not give rise to
any 

 43
 

 

liability on the part of Issuing Bank
to Company. Notwithstanding anything to the contrary contained in this Section 2.4(c),
Company shall retain any and all rights it may have against Issuing Bank for
any liability arising solely out of the gross negligence, willful misconduct or
bad faith of Issuing Bank.

(d)   Reimbursement by Company of Amounts Drawn
or Paid Under Letters of Credit. In the event Issuing Bank has determined
to honor a drawing under a Letter of Credit, it shall immediately notify
Company and Administrative Agent, and Company shall reimburse Issuing Bank on
or before the Business Day immediately following the date on which such drawing
is honored (the “Reimbursement Date”) in an amount in Dollars and in same day funds equal
to the amount of such honored drawing; provided, anything contained
herein to the contrary notwithstanding, (i) unless Company shall have
notified Administrative Agent and Issuing Bank prior to 10:00 a.m. (New
York City time) on the date such drawing is honored that Company intends to
reimburse Issuing Bank for the amount of such honored drawing with funds other
than the proceeds of Revolving Loans, Company shall be deemed to have given a
timely Funding Notice to Administrative Agent requesting Lenders to make
Revolving Loans that are Base Rate Loans on the Reimbursement Date in an amount
in Dollars equal to the amount of such honored drawing, and (ii) subject
to satisfaction or waiver of the conditions specified in Section 3.2,
Lenders shall, on the Reimbursement Date, make Revolving Loans that are Base
Rate Loans in the amount of such honored drawing, the proceeds of which shall
be applied directly by Administrative Agent to reimburse Issuing Bank for the
amount of such honored drawing; and provided  further, if for any
reason proceeds of Revolving Loans are not received by Issuing Bank on the
Reimbursement Date in an amount equal to the amount of such honored drawing,
Company shall reimburse Issuing Bank, on demand, in an amount in same day funds
equal to the excess of the amount of such honored drawing over the aggregate
amount of such Revolving Loans, if any, which are so received. Nothing in this Section 2.4(d) shall
be deemed to relieve any Lender from its obligation to make Revolving Loans on
the terms and conditions set forth herein, and Company shall retain any and all
rights it may have against any Lender resulting from the failure of such Lender
to make such Revolving Loans under this Section 2.4(d).

(e)   Lenders’ Purchase of Participations in
Letters of Credit. Immediately upon the issuance of each Letter of Credit,
each Lender having a Revolving Commitment shall be deemed to have purchased,
and hereby agrees to irrevocably purchase, from Issuing Bank a participation in
such Letter of Credit and any drawings honored thereunder in an amount equal to
such Lender’s Pro Rata Share (with respect to the Revolving Commitments) of the
maximum amount which is or at any time may become available to be drawn thereunder.
In the event that Company shall fail for any reason to reimburse Issuing Bank
as provided in Section 2.4(d), Issuing Bank shall promptly notify each
Lender of the unreimbursed amount of such honored drawing and of such Lender’s
respective participation therein based on such Lender’s Pro Rata 

 44
 

 

Share of the Revolving Commitments. Each
Lender shall make available to Issuing Bank an amount equal to its respective
participation, in Dollars and in same day funds, at the office of Issuing Bank
specified in such notice, not later than 12:00 p.m. (New York City time)
on the first business day (under the laws of the jurisdiction in which such
office of Issuing Bank is located) after the date notified by Issuing Bank. In
the event that any Lender fails to make available to Issuing Bank on such
business day the amount of such Lender’s participation in such Letter of Credit
as provided in this Section 2.4(e), Issuing Bank shall be entitled to
recover such amount on demand from such Lender together with interest thereon
for three Business Days at the rate customarily used by Issuing Bank for the
correction of errors among banks and thereafter at the Base Rate. Nothing in
this Section 2.4(e) shall be deemed to prejudice the right of any
Lender to recover from Issuing Bank any amounts made available by such Lender
to Issuing Bank pursuant to this Section in the event that it is
determined that the payment with respect to a Letter of Credit in respect of
which payment was made by such Lender constituted gross negligence, willful
misconduct or bad faith on the part of Issuing Bank. In the event Issuing Bank
shall have been reimbursed by other Lenders pursuant to this Section 2.4(e) for
all or any portion of any drawing honored by Issuing Bank under a Letter of
Credit, such Issuing Bank shall distribute to each Lender which has paid all
amounts payable by it under this Section 2.4(e) with respect to such
honored drawing such Lender’s Pro Rata Share of all payments subsequently
received by Issuing Bank from Company in reimbursement of such honored drawing
when such payments are received. Any such distribution shall be made to a
Lender at its primary address set forth below its name on Appendix B or at such
other address as such Lender may request.

(f)   Obligations Absolute. The
obligation of Company to reimburse Issuing Bank for drawings honored
under the Letters of Credit issued by it and to repay any Revolving Loans made
by Lenders pursuant to Section 2.4(d) and the obligations of Lenders
under Section 2.4(e) shall be unconditional and irrevocable and shall
be paid strictly in accordance with the terms hereof under all circumstances
including any of the following circumstances: (i) any lack of validity or
enforceability of any Letter of Credit; (ii) the existence of any claim,
set-off, defense or other right which Company or any Lender may have at
any time against a beneficiary or any transferee of any Letter of Credit (or
any Persons for whom any such transferee may be acting), Issuing Bank, Lender
or any other Person or, in the case of a Lender, against Company, whether in
connection herewith, the transactions contemplated herein or any unrelated
transaction (including any underlying transaction between Company or one of its
Subsidiaries and the beneficiary for which any Letter of Credit was procured); (iii) any
draft or other document presented under any Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect; (iv) payment by Issuing
Bank under any Letter of Credit against presentation of a draft or other
document which does not substantially comply with the terms of such Letter of
Credit; (v) any adverse change in the business, operations, properties,
assets, condition (financial or otherwise) or prospects of Holdings or any of
its Subsidiaries; (vi) any breach hereof or of any other Credit Document
by 

 45
 

 

any party thereto; (vii) any
other circumstance or happening whatsoever, whether or not similar to any of
the foregoing; or (viii) the fact that an Event of Default or a Default
shall have occurred and be continuing; provided, in each case, that
payment by Issuing Bank under the applicable Letter of Credit shall not have
constituted gross negligence, willful misconduct or bad faith of Issuing Bank
under the circumstances in question.

(g)   Indemnification. Without duplication
of any obligation of Company under Section 10.2 or 10.3, in addition to
amounts payable as provided herein, Company hereby agrees to protect,
indemnify, pay and save harmless Issuing Bank from and against any and all
claims, demands, liabilities, damages, losses, costs, charges and expenses
(including reasonable fees, expenses and disbursements of counsel and allocated
costs of internal counsel) which Issuing Bank may incur or be subject to as a
consequence, direct or indirect, of (i) the issuance of any Letter of
Credit by Issuing Bank, other than as a result of (1) the gross
negligence, willful misconduct or bad faith of Issuing Bank or (2) the
wrongful dishonor by Issuing Bank of a proper demand for payment made under any
Letter of Credit issued by it, or (ii) the failure of Issuing Bank to
honor a drawing under any such Letter of Credit as a result of any Governmental
Act.

2.5.   Pro Rata Shares; Availability of Funds.

(a)   Pro Rata Shares. All Loans shall be
made, and all participations purchased, by Lenders simultaneously and
proportionately to their respective Pro Rata Shares, it being understood that
no Lender shall be responsible for any default by any other Lender in such
other Lender’s obligation to make a Loan requested hereunder or purchase a
participation required hereby nor shall any Term Loan Commitment or any
Revolving Commitment of any Lender be increased or decreased as a result of a
default by any other Lender in such other Lender’s obligation to make a Loan
requested hereunder or purchase a participation required hereby.

(b)   Availability of Funds. Unless
Administrative Agent shall have been notified by any Lender prior to the
applicable Credit Date that such Lender does not intend to make available to
Administrative Agent the amount of such Lender’s Loan requested on such Credit
Date, Administrative Agent may assume that such Lender has made such amount
available to Administra­tive Agent on such Credit Date and Administrative Agent
may, in its sole discretion, but shall not be obligated to, make available to
Company a corresponding amount on such Credit Date. If such corresponding
amount is not in fact made available to Administrative Agent by such Lender,
Administrative Agent shall be entitled to recover such corresponding amount on
demand from such Lender together with interest thereon, for each day from such
Credit Date until the date such amount is paid to Administrative Agent, at the
customary rate set by Administrative Agent for the correction of errors among
banks for three Business Days and thereafter at the Base Rate. If such Lender
does not pay such corresponding amount forthwith upon Administrative Agent’s
demand therefor, Administrative Agent shall promptly notify 

 46
 

 

Company and Company shall immediately
pay such corresponding amount to Administrative Agent together with interest
thereon, for each day from such Credit Date until the date such amount is paid
to Administrative Agent, at the rate payable hereunder for Base Rate Loans for
such Class of Loans. Nothing in this Section 2.5(b) shall be
deemed to relieve any Lender from its obligation to fulfill its Term Loan
Commitments and Revolving Commitments hereunder or to prejudice any rights that
Company may have against any Lender as a result of any default by such Lender
hereunder.

2.6.   Use of Proceeds. The proceeds of the New Term Loans
made on the Second Amendment Effective Date shall be applied by Company to
repay in full the outstanding principal amount of, and accrued interest on, all
Existing Term Loans of Existing Term Loan Lenders as of the Second Amendment
Effective Date. The proceeds of the Revolving Loans, Swing Line Loans and
Letters of Credit made after the Closing Date shall be applied by Company for
working capital and general corporate purposes of Holdings and its Subsidiaries,
including Permitted Acquisitions. No portion of the proceeds of any Credit
Extension shall be used in any manner that causes or might cause such Credit
Extension or the application of such proceeds to violate Regulation T,
Regulation U or Regulation X of the Board of Governors of the Federal
Reserve System or any other regulation thereof or to violate the Exchange Act.

2.7.   Evidence of Debt; Register; Lenders’
Books and Records; Notes.

(a)   Lenders’ Evidence of Debt. Each Lender
shall maintain on its internal records an account or accounts evidencing the
Obligations of Company to such Lender, including the amounts of the Loans made
by it and each repayment and prepayment in respect thereof. Any such
recordation shall be conclusive and binding on Company, absent manifest error; provided,
that the failure to make any such recordation, or any error in such
recordation, shall not affect any Lender’s Revolving Commitments or Company’s
Obligations in respect of any applicable Loans; and provided  further,
in the event of any inconsistency between the Register and any Lender’s
records, the recordation in the Register shall govern.

(b)   Register. Administrative Agent (or its
agent or sub-agent appointed by it) shall maintain at the Principal Office a
register for the recordation of the names and addresses of Lenders and the
Revolving Commitments and Loans of each Lender from time to time (the “Register”). The Register, as in effect at the
close of business on the preceding Business Day, shall be available for inspection
by Company or any Lender at any reasonable time and from time to time upon
reasonable prior notice. Administrative Agent shall record, or shall cause to
be recorded, in the Register the Revolving Commitments and the Loans in
accordance with the provisions of Section 10.6, and each repayment or
prepayment in respect of the principal amount of the Loans, and any such
recordation shall be conclusive and binding on Company and each Lender, absent
manifest error; provided, failure to make any such recordation, or any
error in such recordation, shall not affect any Lender’s Revolving Commitments
or Company’s 

 47
 

 

Obligations in respect of any Loan. Company
hereby designates GSCP to serve as Company’s agent solely for purposes of
maintaining the Register as provided in this Section 2.7, and Company
hereby agrees that, to the extent GSCP serves in such capacity, GSCP and its
officers, directors, employees, agents, sub-agents and affiliates shall
constitute “Indemnitees.”

(c)   Notes. If so requested by any Lender
by written notice to Company (with a copy to Administrative Agent) at least two
Business Days prior to the Second Amendment Effective Date, or at any time
thereafter, Company shall execute and deliver to such Lender (and/or, if
applicable and if so specified in such notice, to any Person who is an assignee
of such Lender pursuant to Section 10.6) on the Second Amendment Effective
Date (or, if such notice is delivered after the Second Amendment Effective
Date, promptly after Company’s receipt of such notice) a Note or Notes to
evidence such Lender’s New Term Loan, Revolving Loan or Swing Line Loan, as the
case may be.

2.8.   Interest on Loans.

(a)   Except as otherwise set forth herein, each Class of
Loan shall bear interest on the unpaid principal amount thereof from the date
made through repayment (whether by acceleration or otherwise) thereof as
follows:

(i)   in the case
of Revolving Loans:

(1) if a Base Rate Loan, at the
Base Rate plus the Applicable Margin; or

(2) if a Eurodollar Rate Loan,
at the Adjusted Eurodollar Rate plus the Applicable Margin;

(ii)   in the case
of Swing Line Loans, at the Base Rate plus the Applicable Margin; and

(iii)   in the
case of Term Loans:

(1) if a Base Rate Loan, at the
Base Rate plus 1.25% per annum (provided however that
at such time on or after March 31, 2007 that the Leverage Ratio is less
than 3.5.0:1.0, such Loans shall thereafter bear interest at the Base Rate plus
1.00% per annum); or

(2) if a Eurodollar Rate Loan,
at the Adjusted Eurodollar Rate plus 2.25% per annum (provided

 48
 

 

however that at such time on
or after March 31, 2007 that the Leverage Ratio is less than 3.5:1.0, such
Loans shall thereafter bear interest at the Adjusted Eurodollar Rate plus 2.00%
per annum).

(b)   The basis for determining the rate of interest
with respect to any Loan (except a Swing Line Loan which can be made and
maintained as Base Rate Loans only), and the Interest Period with respect to
any Eurodollar Rate Loan, shall be selected by Company and notified to
Administrative Agent and Lenders pursuant to the applicable Funding Notice or
Conver­sion/Continuation Notice, as the case may be. If on any day a Loan is
outstanding with respect to which a Funding Notice or Conversion/Continuation
Notice has not been delivered to Administrative Agent in accordance with the
terms hereof specifying the applicable basis for determining the rate of
interest, then for that day such Loan shall be a Base Rate Loan.

(c)   In connection with Eurodollar Rate Loans
there shall be no more than ten (10) Interest Periods outstanding at any
time. In the event Company fails to specify between a Base Rate Loan or a
Eurodollar Rate Loan in the applicable Funding Notice or
Conversion/Continuation Notice, such Loan (if outstanding as a Eurodollar Rate
Loan) will be automatically converted into a Base Rate Loan on the last day of
the then-current Interest Period for such Loan (or if outstanding as a
Base Rate Loan will remain as, or (if not then outstanding) will be made as, a
Base Rate Loan). In the event Company fails to specify an Interest Period for
any Eurodollar Rate Loan in the applicable Funding Notice or
Conversion/Continuation Notice, Company shall be deemed to have selected an
Interest Period of one month. As soon as practicable after 10:00 a.m. (New
York City time) on each Interest Rate Determination Date, Administrative Agent
shall determine (which determination shall, absent manifest error, be final,
conclusive and binding upon all parties) the interest rate that shall apply to
the Eurodollar Rate Loans for which an interest rate is then being determined
for the applicable Interest Period and shall promptly give notice thereof (in
writing or by telephone confirmed in writing) to Company and each Lender.

(d)   Interest payable pursuant to Section 2.8(a) shall
be computed (i) in the case of Base Rate Loans on the basis of a 365-day
or 366-day year, as the case may be, and (ii) in the case of Eurodollar
Rate Loans, on the basis of a 360-day year, in each case for the actual number
of days elapsed in the period during which it accrues. In computing interest on
any Loan, the date of the making of such Loan or the first day of an Interest
Period applicable to such Loan or, with respect to a Term Loan, the last
Interest Payment Date with respect to such Term Loan or, with respect to a Base
Rate Loan being converted from a Eurodollar Rate Loan, the date of conversion
of such Eurodollar Rate Loan to such Base Rate Loan, as the case may be, shall
be included, and the date of payment of such Loan or the expiration date of an
Interest Period applicable to such Loan or, with respect to a Base Rate Loan
being converted to a Eurodollar Rate Loan, the date of conversion of such Base
Rate Loan to such Eurodollar Rate Loan, as the 

 49
 

 

case may be, shall be excluded; provided,
if a Loan is repaid on the same day on which it is made, one day’s interest
shall be paid on that Loan.

(e)   Except as otherwise set forth herein,
interest on each Loan (i) with respect to Revolving Loans, shall accrue on
a daily basis and shall be payable in arrears on each Interest Payment Date
with respect to interest accrued on and to each such payment date; (ii) with
respect to Term Loans, shall accrue on a daily basis on and to the March 31st, June 30th, September 30th and December 31st most recently ended prior to such payment date
and shall be payable in arrears on each Interest Payment Date; (iii) shall
accrue on a daily basis and shall be payable in arrears upon any prepayment of
that Loan, whether voluntary or mandatory, to the extent accrued on the amount
being prepaid; and (iv) shall accrue on a daily basis and shall be payable
in arrears at maturity of the Loans, including final maturity of the Loans; provided,
however, with respect to any voluntary prepayment of a Base Rate Loan, accrued
interest shall instead be payable on the applicable Interest Payment Date.

(f)   Company agrees to pay to Issuing Bank, with
respect to drawings honored under any Letter of Credit, interest on the amount
paid by Issuing Bank in respect of each such honored drawing from the date such
drawing is honored to but excluding the date such amount is reimbursed by or on
behalf of Company at a rate equal to (i) for the period from the date such
drawing is honored to but excluding the applicable Reimbursement Date, the rate
of interest otherwise payable hereunder with respect to Revolving Loans that
are Base Rate Loans, and (ii) thereafter, a rate which is 2% per annum in
excess of the rate of interest otherwise payable hereunder with respect to
Revolving Loans that are Base Rate Loans.

(g)   Interest payable pursuant to Section 2.8(f) shall
be computed on the basis of a 365/366-day year for the actual number of
days elapsed in the period during which it accrues, and shall be payable on
demand or, if no demand is made, on the date on which the related drawing under
a Letter of Credit is reimbursed in full. Promptly upon receipt by Issuing Bank
of any payment of interest pursuant to Section 2.8(f), Issuing Bank shall
distribute to each Lender, out of the interest received by Issuing Bank in
respect of the period from the date such drawing is honored to but excluding
the date on which Issuing Bank is reimbursed for the amount of such drawing
(including any such reimbursement out of the proceeds of any Revolving Loans),
the amount that such Lender would have been entitled to receive in respect of
the letter of credit fee that would have been payable in respect of such Letter
of Credit for such period if no drawing had been honored under such Letter of
Credit. In the event Issuing Bank shall have been reimbursed by Lenders for all
or any portion of such honored drawing, Issuing Bank shall distribute to each
Lender which has paid all amounts payable by it under Section 2.4(e) with
respect to such honored drawing such Lender’s Pro Rata Share of any interest
received by Issuing Bank in respect of that portion of such honored drawing so
reimbursed by Lenders for the period from the date on which Issuing Bank was so
reimbursed by Lenders to but excluding the date on which such portion of such honored
drawing is reimbursed by Company.

 50
 

 

2.9.   Conversion/Continuation.

(a)   Subject to Section 2.18 and so long as
no Default or Event of Default shall have occurred and then be continuing,
Company shall have the option:

(i)   to convert
at any time all or any part of any Term Loan or Revolving Loan equal to
$1,000,000 and integral multiples of $500,000 in excess of that amount from one
Type of Loan to another Type of Loan; provided, a Eurodollar Rate Loan
may only be converted on the expiration of the Interest Period applicable to
such Eurodollar Rate Loan unless Company shall pay all amounts due under Section 2.18
in connection with any such conversion; or

(ii)   upon the
expiration of any Interest Period applicable to any Eurodollar Rate Loan, to
continue all or any portion of such Loan equal to $1,000,000 and integral
multiples of $500,000 in excess of that amount as a Eurodollar Rate Loan.

(b)   Company shall deliver a
Conversion/Continuation Notice to Administra­tive Agent no later than 10:00 a.m.
(New York City time) at least one Business Day in advance of the proposed
conversion date (in the case of a conversion to a Base Rate Loan) and at least
three Business Days in advance of the proposed conversion/continuation date (in
the case of a conversion to, or a continuation of, a Eurodollar Rate Loan). Except
as otherwise provided herein, a Conversion/Continuation Notice for conversion
to, or continuation of, any Eurodollar Rate Loans (or telephonic notice in lieu
thereof) shall be irrevocable on and after the related Interest Rate
Determination Date, and Company shall be bound to effect a conversion or
continuation in accordance therewith.

2.10.   Default Interest. Upon
the occurrence and during the continuance of an Event of Default, the principal
amount of all Loans outstanding and, to the extent permitted by applicable law, any
interest payments on the Loans or any fees or other amounts owed hereunder,
shall thereafter bear interest (including post-petition interest in any
proceeding under the Bankruptcy Code or other applicable bankruptcy laws)
payable on demand at a rate that is 2% per annum in excess of the interest rate
otherwise payable hereunder with respect to the applicable Loans (or, in the
case of any such fees and other amounts, at a rate which is 2% per annum in
excess of the interest rate otherwise payable hereunder for Base Rate Loans); provided,
in the case of Eurodollar Rate Loans, upon the expiration of the Interest
Period in effect at the time any such increase in interest rate is effective
such Eurodollar Rate Loans shall thereupon become Base Rate Loans and shall
thereafter bear interest payable upon demand at a rate which is 2% per annum in
excess of the interest rate otherwise payable hereunder for Base Rate Loans. Payment
or acceptance of the increased rates of interest provided for in this Section 2.10
is not a permitted alternative to timely payment and shall not constitute a
waiver of any Event of Default or otherwise prejudice or limit any rights or
remedies of Administrative Agent or any Lender.

 51
 

 

2.11.   Fees.

(a)   Company agrees to pay to Lenders having
Revolving Exposure:

(i)   commitment
fees equal to (1) the average of the daily difference between (a) the
Revolving Commitments, and (b) the Total Utilization of Revolving
Commitments, times (2) the Applicable Revolving Commitment Fee Percentage;
and

(ii)   letter of
credit fees equal to (1) the Applicable Margin for Revolving Loans that
are Eurodollar Rate Loans, times (2) the average aggregate daily maximum
amount available to be drawn under all such Letters of Credit (regardless of
whether any conditions for drawing could then be met and determined as of the
close of business on any date of determination).

All fees referred to in this Section 2.11(a) shall
be paid to Administrative Agent at its Principal Office and upon receipt,
Administrative Agent shall promptly distribute to each Lender its Pro Rata
Share thereof.

(b) 
 Company agrees to pay directly to
Issuing Bank, for its own account, the following fees:

(i)   a fronting
fee equal to 0.125%, per annum, times the average aggregate daily maximum
amount available to be drawn under all Letters of Credit (determined as of the
close of business on any date of determination); and

(ii)   such
documentary and processing charges for any issuance, amendment, transfer or
payment of a Letter of Credit as are in accordance with Issuing Bank’s standard
schedule for such charges provided to the Company and as in effect at the time
of such issuance, amendment, transfer or payment, as the case may be.

(c)   All fees referred to in Section 2.11(a) and
2.11(b)(i) shall be calculated on the basis of a 360-day year and
the actual number of days elapsed and shall be payable quarterly in arrears on April 1,
July 1, October 1 and January 1 of each year during the
Revolving Commitment Period, commencing on the first such date to occur after
the Closing Date, and on the Revolving Commitment Termination Date.

(d)   In addition to any of the foregoing fees,
Company agrees to pay to Agents such other fees in the amounts and at the times
separately agreed upon.

2.12.   Scheduled Payments.
The principal amounts of the New Term Loans shall be repaid in consecutive
quarterly installments (each, an “Installment”)
in the aggregate amounts 

 52
 

 

set forth below on the
dates set forth below (each, an “Installment
Date”), commencing July 1, 2006:

	
  Installment Date

  	
   

  	
   

  	
   

  	
  New Term Loan Installments

  	
   

  
	
  July 1,
  2006

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  October 1,
  2006

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  January 1,
  2007

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  April 1,
  2007

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  July 1,
  2007

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  October 1,
  2007

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  January 1,
  2008

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  April 1,
  2008

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  July 1,
  2008

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  October 1,
  2008

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  January 1,
  2009

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  April 1,
  2009

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  July 1,
  2009

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  October 1,
  2009

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  January 1,
  2010

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  April 1,
  2010

  	
   

  	
  $

  	
  862,500

  	
   

  
	
  July 1,
  2010

  	
   

  	
  $

  	
  81,937,500

  	
   

  
	
  October 1,
  2010

  	
   

  	
  $

  	
  81,937,500

  	
   

  
	
  January 1,
  2011

  	
   

  	
  $

  	
  81,937,500

  	
   

  
	
  Term Loan Maturity Date

  	
   

  	
  $

  	
  81,937,500

  	
   

  

 

 53
 

 

Notwithstanding
the foregoing, (x) such Installments shall be reduced in connection with
any voluntary or mandatory prepayments of the New Term Loans in accordance with
Sections 2.13, 2.14 and 2.15, as applicable; and (y) the New Term
Loans, together with all other amounts owed hereunder with respect thereto,
shall, in any event, be paid in full no later than the Term Loan Maturity Date.

2.13.   Voluntary
Prepayments/Commitment Reductions/Call Protection.

(a)   Voluntary Prepayments.

(i)   Any time and
from time to time:

(1)        with respect to Base Rate Loans, Company may prepay any such
Loans without penalty or premium on any Business Day in whole or in part, in an
aggregate minimum amount of $1,000,000 and integral multiples of $500,000 in
excess of that amount;

(2)        with respect to Eurodollar Rate Loans, subject to Section 2.18(c),
Company may prepay any such Loans without penalty or premium on any Business
Day in whole or in part in an aggregate minimum amount of $1,000,000 and
integral multiples of $500,000 in excess of that amount; and

(3)        with respect to Swing Line Loans, Company may prepay any such
Loans without penalty or premium on any Business Day in whole or in part in an
aggregate minimum amount of $500,000, and in integral multiples of $100,000 in
excess of that amount.

(ii)   All such
prepayments shall be made:

(1)        upon not less than one Business Day’s prior written or
telephonic notice in the case of Base Rate Loans;

 54
 

 

(2)        upon not less than three Business Days’ prior written or
telephonic notice in the case of Eurodollar Rate Loans; and

(3)        upon written or telephonic notice on the date of prepayment,
in the case of Swing Line Loans;

in each case given to Administrative Agent or Swing
Line Lender, as the case may be, by 12:00 noon (New York City time) on the date
required and, if given by telephone, promptly confirmed in writing to
Administrative Agent (and Administrative Agent will promptly transmit such
telephonic or original notice for Term Loans or Revolving Loans, as the case
may be, by telefacsimile or telephone to each Lender) or Swing Line Lender, as
the case may be. Upon the giving of any such notice, the principal amount of
the Loans specified in such notice shall become due and payable on the
prepayment date specified therein. Any such voluntary prepayment shall be
applied as specified in Section 2.15(a).

(b)   Voluntary Commitment Reductions.

(i)   Company may,
upon not less than three Business Days’ prior written or telephonic notice
confirmed in writing to Administrative Agent (which original written or
telephonic notice Administrative Agent will promptly transmit by telefacsimile
or telephone to each applicable Lender), at any time and from time to time
terminate in whole or permanently reduce in part, without premium or penalty,
the Revolving Commitments in an amount up to the amount by which the Revolving
Commitments exceed the Total Utilization of Revolving Commitments at the time
of such proposed termination or reduction; provided, any such partial
reduction of the Revolving Commitments shall be in an aggregate minimum amount
of $1,000,000 and integral multiples of $500,000 in excess of that amount.

(ii)   Company’s
notice to Administrative Agent shall designate the date (which shall be a
Business Day) of such termination or reduction and the amount of any partial
reduction, and such termination or reduction of the Revolving Commitments shall
be effective on the date specified in Company’s notice and shall reduce the
Revolving  Commitment of each Lender
proportionately to its Pro Rata Share thereof.

(c)   New Term Loan Call Protection. In the
event that, prior to the first anniversary of the Second Amendment Effective
Date, any New Term Loan Lender receives a Repricing Prepayment (as defined
below), then, at the time thereof, Company shall pay to such New Term Loan
Lender a prepayment premium equal to 1.0% of the amount of such Repricing
Prepayment. As used herein, with respect to any New Term Loan Lender, a “Repricing Prepayment” is the amount of principal of the
New Term Loans of such New Term Loan 

 55
 

 

Lender that is either (a) prepaid by
Company substantially concurrently with the incurrence by Company or any of its
Subsidiaries of new replacement term loans that have interest rate margins
lower than the percentages then in effect under Section 2.8(a)(iii) for
the New Term Loans so prepaid or (b) received by such New Term Loan
Lender as a result of the mandatory assignment of such New Term Loans in the
circumstances described in Section 2.23 following the failure of such New
Term Loan Lender to consent to an amendment of this Agreement (other than the
Second Amendment) that would have the effect of reducing the interest margins
with respect to such New Term Loans.

2.14.   Mandatory
Prepayments/Commitment Reductions.

(a)   Asset Sales. Except as provided below,
no later than the second Business Day following the date of receipt by Holdings
or any of its Subsidiaries of any Net Asset Sale Proceeds, Company shall prepay
the Loans and/or the Revolving Commitments shall be permanently reduced as set
forth in Section 2.15(b) in an aggregate amount equal to all Net
Asset Sale Proceeds. So long as no Default or Event of Default shall have
occurred and be continuing, and to the extent that aggregate Net Asset Sale
Proceeds from the Closing Date through the applicable date of determination do
not exceed $5,000,000, Company shall have the option, directly or through one
or more of its Subsidiaries, to invest Net Asset Sale Proceeds within one
hundred eighty (180) days after receipt thereof in other assets useful in the
business of Company and its Subsidiaries; provided, however, that
as to any Net Asset Sale Proceeds that have not been so invested, or applied to
prepay Loans within one hundred eighty (180) days after such Net Asset Sale
Proceeds were received, Company or one of its Subsidiaries shall either (i) prepay
the Loans and/or permanently reduce the Revolving Commitments with such Net
Asset Sale Proceeds or (ii) have entered into a binding commitment to
invest such Net Asset Sale Proceeds in such assets within 360 days after
receipt thereof.  Pending any such
investment or prepayments, all such Net Asset Sale Proceeds shall be applied to
prepay Revolving Loans to the extent outstanding (without a reduction in
Revolving Commitments). Any Net Asset Sale Proceeds which have not been
invested or applied to prepay Loans as required above within 180 or, if a
binding commitment to invest such Net Asset Sale Proceeds was entered into as
provided above, 360 days after receipt shall be applied to prepay Loans at such
time.

(b)   Insurance/Condemnation Proceeds. Except
as provided below, no later than the second Business Day following the date of
receipt by Holdings or any of its Subsidiaries, or Administrative Agent as loss
payee, of any Net Insurance/Condemnation Proceeds, Company shall prepay the
Loans and/or the Revolving Commitments shall be permanently reduced as set
forth in Section 2.15(b) in an aggregate amount equal to such Net
Insurance/Condemnation Proceeds. So long as no Default or Event of Default
shall have occurred and be continuing, and to the extent that aggregate Net
Insurance/Condemnation Proceeds from the Closing Date through the applicable
date of determination do not exceed $5,000,000, Company shall have the option,
directly or through one or more of its Subsidiaries to invest such Net

 56
 

 

Insurance/Condemnation Proceeds
within one hundred eighty (180) days of receipt thereof in other assets useful
in the business of Holdings and its Subsidiaries, which investment may include
the repair, restoration or replacement of the applicable assets thereof; provided,
however, that as to any Net Insurance/Condemnation Proceeds that have
not been so invested, or applied to prepay Loans within one hundred eighty
(180) days after such Net Insurance/Condemnation Proceeds were received,
Company or one of its Subsidiaries shall either (i) prepay the Loans and/or
permanently reduce the Revolving Commitments with such Net
Insurance/Condemnation Proceeds or (ii) have entered into a binding
commitment to invest such Net Insurance/Condemnation Proceeds in such assets
within 360 days after receipt thereof.  Pending any such investment or prepayments,
all such Net Insurance/Condemnation Proceeds shall be applied to prepay
Revolving Loans to the extent outstanding (without a reduction in Revolving
Commitments). Any Net Insurance/Condemnation Proceeds which have not been
invested or applied to prepay Loans as required above within 180 or, if a
binding commitment to invest such Net Insurance/Condemnation Proceeds was
entered into as provided above, 360 days after receipt shall be applied to
prepay Loans at such time.

(c) 
 Issuance of Equity Securities. No
later than the second Business Day following the receipt by Holdings of any
Cash proceeds from a capital contribution to, or the issuance of any Capital
Stock of, Holdings or any of its Subsidiaries (other than pursuant to any
employee stock or stock option compensation plan), Company shall prepay the
Loans and/or the Revolving Commitments shall be permanently reduced as set
forth in Section 2.15(b) in an aggregate amount equal to 50% of such
proceeds, net of underwriting discounts and commissions and other reasonable
costs and expenses associated therewith, including reasonable legal fees and
expenses; provided, during any period in which the Leverage Ratio
(determined for any such period by reference to the most recent Compliance
Certificate delivered pursuant to Section 5.1(d) calculating the
Leverage Ratio) shall be 5.00:1.00 or less, Company shall only be required to
make the prepayments and/or reductions otherwise required hereby in an amount
equal to 25% of such net proceeds.

(d)   Issuance of Debt. No later than the
second Business Day following the receipt by Holdings or any of its
Subsidiaries of any Cash proceeds from the incurrence of any Indebtedness of
Holdings or any of its Subsidiaries (other than with respect to any
Indebtedness permitted to be incurred pursuant to Section 6.1), Company
shall prepay the Loans and/or the Revolving Commitments shall be permanently
reduced as set forth in Section 2.15(b) in an aggregate amount equal
to 100% of such proceeds, net of underwriting discounts and commissions and
other reasonable costs and expenses associated therewith, including reasonable
legal fees and expenses.

(e)   Consolidated Excess Cash Flow. In the
event that there shall be Consolidated Excess Cash Flow for any Fiscal Year
(commencing with the Fiscal Year ending in 2007, it being acknowledged that no
prepayment from Consolidated Excess Cash Flow will be 

 57
 

 

required for the Fiscal Year ending
in 2006), Company shall, no later than ninety days after the end of such Fiscal
Year, prepay the Loans and/or the Revolving Commitments shall be permanently
reduced as set forth in Section 2.15(b) in an aggregate amount equal
to 75% of such Consolidated Excess Cash Flow; provided, (x) during
any period in which the Leverage Ratio (determined for any such period by
reference to the most recent Compliance Certificate delivered pursuant to Section 5.1(d) calculating
the Leverage Ratio) shall be less than 5.00:1.00 and greater than or equal to
3.25:1.00, Company shall only be required to make the prepayments and/or
reductions otherwise required hereby in an amount equal to 50% of such
Consolidated Excess Cash Flow and (y) during any period in which the
Leverage Ratio (determined for any such period by reference to the most recent
Compliance Certificate delivered pursuant to Section 5.1(d) calculating
the Leverage Ratio) shall be less than 3.25:1.00, Company shall only be
required to make the prepayments and/or reductions otherwise required hereby in
an amount equal to 25% of such Consolidated Excess Cash Flow.

(f)   Revolving Loans and Swing Loans. Company
shall from time to time prepay first,
the Swing Line Loans without reduction of Commitments, and second, the Revolving Loans without
reduction of Commitments to the extent necessary so that the Total Utilization
of Revolving Commitments shall not at any time exceed the Revolving Commitments
then in effect.

(g)   Prepayment Certificate. Concurrently
with any prepayment of the Loans and/or reduction of the Revolving Commitments
pursuant to Sections 2.14(a) through 2.14(e), Company shall deliver to
Administrative Agent a certificate of an Authorized Officer demonstrating the
calculation of the amount of the applicable net proceeds or Consolidated Excess
Cash Flow, as the case may be. In the event that Company shall subsequently
determine that the actual amount received exceeded the amount set forth in such
certificate, Company shall concurrently therewith deliver to Administrative
Agent a certificate of an Authorized Officer demonstrating the derivation of
such excess, and, if required by this Section 2.14, shall promptly make an
additional prepayment of the Loans and/or the Revolving Commitments shall be
permanently reduced in an amount equal to such excess.

2.15.   Application of
Prepayments/Reductions.

(a)   Application of Voluntary Prepayments by
Type of Loans. Any prepayment of any Loan pursuant to Section 2.13(a) shall
be applied as specified by Company in the applicable notice of prepayment; provided,
in the event Company fails to specify the Loans to which any such prepayment
shall be applied, such prepayment shall be applied as follows:

first, to repay
outstanding Swing Line Loans to the full extent thereof without reduction of
Commitments;

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second, to repay
outstanding Revolving Loans to the full extent thereof without reduction of
Commitments; and

third, to prepay
the Term Loans to the full extent thereof.

Any prepayment of any Term Loans pursuant to Section 2.13(a) shall
be further applied, at the Company’s option, either (i) first, to such scheduled prepayments with respect thereto due on the
Installment Dates occurring within the 12 months following such prepayment
and, second, on a pro rata basis to reduce the
scheduled remaining Installments of principal on such Term Loan or (ii) on
a pro rata basis to reduce the scheduled remaining Installments of principal on
such Term Loan.

(b)   Application of Mandatory Prepayments by
Type of Loans. Any amount required to be paid pursuant to Sections 2.14(a) through
2.14(e) shall be applied as follows:

first, to prepay
Term Loans on a pro rata basis to the remaining scheduled Installments of
principal of the Term Loans;

second, to prepay
the Swing Line Loans to the full extent thereof and to permanently reduce the
Revolving Commitments by the amount of such prepayment;

third, to prepay
the Revolving Loans to the full extent thereof and to further permanently
reduce the Revolving Commitments by the amount of such prepayment;

fourth, to prepay
outstanding reimbursement obligations with respect to Letters of Credit and to
further permanently reduce the Revolving Loan Commitments by the amount of such
prepayment;

fifth, to cash
collateralize Letters of Credit and to further permanently reduce the Revolving
Loan Commitments by the amount of such cash collateralization; and

sixth, to further
permanently reduce the Revolving Commitments to the full extent thereof.

(c)   Application of Prepayments of Loans to
Base Rate Loans and Eurodollar Rate Loans. Considering each Class of
Loans being prepaid separately, any prepayment thereof shall be applied first
to Base Rate Loans to the full extent thereof before application to Eurodollar
Rate Loans, in each case in a manner which minimizes the amount of any payments
required to be made by Company pursuant to Section 2.18(c).

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2.16.   General Provisions
Regarding Payments.

(a)   All payments by Company of principal,
interest, fees and other Obligations shall be made in Dollars in same day
funds, without defense, setoff or counterclaim, free of any restriction or
condition, and delivered to Administrative Agent not later than 12:00 noon (New
York City time) on the date due at the Principal Office designated by
Administrative Agent for the account of Lenders; for purposes of computing
interest and fees, funds received by Administrative Agent after that time on
such due date shall be deemed to have been paid by Company on the next
succeeding Business Day.

(b)   All payments in respect of the principal
amount of any Loan (other than voluntary prepayments of Revolving Loans) shall
be accompanied by payment of accrued interest on the principal amount being
repaid or prepaid.

(c)   Administrative Agent (or its agent or
sub-agent appointed by it) shall promptly distribute to each Lender at such
address as such Lender shall indicate in writing, such Lender’s applicable Pro
Rata Share of all payments and prepayments of principal and interest due
hereunder, together with all other amounts due thereto, including, without
limitation, all fees payable with respect thereto, to the extent received by
Administrative Agent.

(d)   Notwithstanding the foregoing provisions
hereof, if any Conver­sion/Continuation Notice is withdrawn as to any Affected
Lender or if any Affected Lender makes Base Rate Loans in lieu of its Pro Rata
Share of any Eurodollar Rate Loans, Administrative Agent shall give effect
thereto in apportioning payments received thereafter.

(e)   Subject to the provisos set forth in the
definition of “Interest Period” as they may apply to Revolving Loans, whenever
any payment to be made hereunder with respect to any Loan shall be stated to be
due on a day that is not a Business Day, such payment shall be made on the next
succeeding Business Day and, with respect to Revolving Loans only, such
extension of time shall be included in the computation of the payment of
interest hereunder or of the Revolving Commitment fees hereunder.

(f)   Company hereby authorizes Administrative
Agent to charge Company’s accounts with Administrative Agent in order to cause
timely payment to be made to Administrative Agent of all principal, interest,
fees and expenses due hereunder (subject to sufficient funds being available in
its accounts for that purpose).

(g)   Administrative Agent shall deem any payment
by or on behalf of Company hereunder that is not made in same day funds prior
to 12:00 p.m. (New York City time) to be a non-conforming payment. Any
such payment shall not be deemed to have been received by Administra­tive Agent
until the later of (i) the time such funds become available funds, and (ii) 

 60
 

 

the applicable next Business Day. Administrative
Agent shall give prompt telephonic notice to Company and each applicable Lender
(confirmed in writing) if any payment is non-conforming. Any non-conforming
payment (other than voluntary payments) may constitute or become a Default or
Event of Default in accordance with the terms of Section 8.1(a). Interest
shall continue to accrue on any principal as to which a non-conforming
payment is made until such funds become available funds (but in no event less
than the period from the date of such payment to the next succeeding applicable
Business Day) at the rate determined pursuant to Section 2.10 from the
date such amount was due and payable until the date such amount is paid in
full.

(h)   If an Event of Default shall have occurred
and not otherwise been waived, and the maturity of the Obligations shall have
been accelerated pursuant to Section 8.1, all payments or proceeds
received by Agents hereunder in respect of any of the Obligations, shall be
applied in accordance with the application arrangements described in Section 7.2
of the Pledge and Security Agreement.

2.17.   Ratable Sharing. Lenders
hereby agree among themselves that, except as otherwise provided in the Collateral
Documents with respect to amounts realized from the exercise of rights with respect to
Liens on the Collateral, if any of them shall, whether by voluntary payment
(other than a voluntary prepayment of Loans made and applied in accordance with
the terms hereof), through the exercise of any right of set-off or banker’s
lien, by counterclaim or cross action or by the enforcement of any right under
the Credit Documents or otherwise, or as adequate protection of a deposit
treated as cash collateral under the Bankruptcy Code, receive payment or
reduction of a proportion of the aggregate amount of principal, interest,
amounts payable in respect of Letters of Credit, fees and other amounts then
due and owing to such Lender hereunder or under the other Credit Documents
(collectively, the “Aggregate Amounts Due”
to such Lender) which is greater than the proportion received by any other
Lender in respect of the Aggregate Amounts Due to such other Lender, then the
Lender receiving such proportionately greater payment shall (a) notify
Administrative Agent and each other Lender of the receipt of such payment and (b) apply
a portion of such payment to purchase participations (which it shall be deemed
to have purchased from each seller of a participation simultaneously upon the
receipt by such seller of its portion of such payment) in the Aggregate Amounts
Due to the other Lenders so that all such recoveries of Aggregate Amounts Due
shall be shared by all Lenders in proportion to the Aggregate Amounts Due to
them; provided, if all or part of such proportionately greater payment
received by such purchasing Lender is thereafter recovered from such Lender
upon the bankruptcy or reorganization of Company or otherwise, those purchases
shall be rescinded and the purchase prices paid for such participations shall
be returned to such purchasing Lender ratably to the extent of such recovery,
but without interest. Company expressly consents to the foregoing arrangement
and agrees that to the extent permitted by law any holder of a participation so
purchased may exercise any and all rights of banker’s lien, set-off or
counterclaim with respect to any and all monies owing by 

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Company to that holder
with respect thereto as fully as if that holder were owed the amount of the
participation held by that holder.

2.18.   Making or Maintaining
Eurodollar Rate Loans.

(a)   Inability to Determine Applicable Interest
Rate. In the event that Administrative Agent shall have determined (which
determination shall, absent manifest error, be final and conclusive and binding
upon all parties hereto), on any Interest Rate Determination Date with respect
to any Eurodollar Rate Loans, that by reason of circumstances affecting the
London interbank market adequate and fair means do not exist for ascertaining
the interest rate applicable to such Loans on the basis provided for in the
definition of Adjusted Eurodollar Rate, Administrative Agent shall on such date
give notice (by telefacsimile or by telephone confirmed in writing) to Company
and each Lender of such determination, whereupon (i) no Loans may be made
as, or converted to, Eurodollar Rate Loans until such time as Administrative
Agent notifies Company and Lenders that the circumstances giving rise to such
notice no longer exist, and (ii) any Funding Notice or Conver­sion/Continuation
Notice given by Company with respect to the Loans in respect of which such
determination was made shall be deemed to be rescinded by Company.

(b)   Illegality or Impracticability of
Eurodollar Rate Loans. In the event that on any date any Lender shall have
determined (which determination shall, absent manifest error, be final and
conclusive and binding upon all parties hereto but shall be made only after
consultation with Company and Administrative Agent) that the making,
maintaining or continuation of its Eurodollar Rate Loans (i) has become
unlawful as a result of compliance by such Lender in good faith with any law,
treaty, governmental rule, regulation, guideline or order (or would conflict
with any such treaty, governmental rule, regulation, guideline or order not
having the force of law even though the failure to comply therewith would not
be unlawful), or (ii) has become impracticable, as a result of
contingencies occurring after the Second Amendment Effective Date which
materially and adversely affect the London interbank market or the position of
such Lender in that market, then, and in any such event, such Lender shall be
an “Affected
Lender” and
it shall on that day give notice (by telefacsimile or by telephone confirmed in
writing) to Company and Administrative Agent of such determination (which
notice Administrative Agent shall promptly transmit to each other Lender). Thereafter
(1) the obligation of the Affected Lender to make Loans as, or to convert
Loans to, Eurodollar Rate Loans shall be suspended until such notice shall be
withdrawn by the Affected Lender, (2) to the extent such determination by
the Affected Lender relates to a Eurodollar Rate Loan then being requested by
Company pursuant to a Funding Notice or a Conversion/Continuation Notice, the
Affected Lender shall make such Loan as (or continue such Loan as or convert
such Loan to, as the case may be) a Base Rate Loan, (3) the Affected
Lender’s obligation to maintain its outstanding Eurodollar Rate Loans (the “Affected Loans”) shall be terminated at the earlier
to occur of the expiration of the Interest Period then in effect with respect
to the Affected Loans or when required by law, and (4) 

 62
 

 

the Affected Loans shall
automatically convert into Base Rate Loans on the date of such termination. Notwithstanding
the foregoing, to the extent a determination by an Affected Lender as described
above relates to a Eurodollar Rate Loan then being requested by Company
pursuant to a Funding Notice or a Conversion/Continuation Notice, Company shall
have the option, subject to the provisions of Section 2.18(c), to rescind
such Funding Notice or Conversion/Continuation Notice as to all Lenders by
giving notice (by telefacsimile or by telephone confirmed in writing) to
Administrative Agent of such rescission on the date on which the Affected
Lender gives notice of its determination as described above (which notice of
rescission Administrative Agent shall promptly transmit to each other Lender). Except
as provided in the immediately preceding sentence, nothing in this Section 2.18(b) shall
affect the obligation of any Lender other than an Affected Lender to make or
maintain Loans as, or to convert Loans to, Eurodollar Rate Loans in accordance
with the terms hereof.

(c)   Compensation for Breakage or Non-Commencement
of Interest Periods. Company shall compensate each Lender, upon written
request by such Lender (which request shall set forth the basis for requesting
such amounts), for all reasonable losses, expenses and liabilities (including
any interest paid by such Lender to lenders of funds borrowed by it to make or
carry its Eurodollar Rate Loans and any loss, expense or liability sustained by
such Lender in connection with the liquidation or re-employment of such
funds but excluding loss of anticipated profits) which such Lender may sustain:
(i) if for any reason (other than a default by such Lender) a borrowing of
any Eurodollar Rate Loan does not occur on a date specified therefor in a
Funding Notice or a telephonic request for borrowing, or a conversion to or
continuation of any Eurodollar Rate Loan does not occur on a date specified
therefor in a Conversion/Continuation Notice or a telephonic request for
conversion or continuation; (ii) if any prepayment or other principal
payment of, or any conversion of, any of its Eurodollar Rate Loans occurs on a
date prior to the last day of an Interest Period applicable to that Loan; or (iii) if
any prepayment of any of its Eurodollar Rate Loans is not made on any date
specified in a notice of prepayment given by Company.

(d)   Booking of Eurodollar Rate Loans. Subject
to Section 2.21, any Lender may make, carry or transfer Eurodollar Rate
Loans at, to, or for the account of any of its branch offices or the office of
an Affiliate of such Lender.

(e)   Assumptions Concerning Funding of
Eurodollar Rate Loans. Calculation of all amounts payable to a Lender under
this Section 2.18 and under Section 2.19 shall be made as though such
Lender had actually funded each of its relevant Eurodollar Rate Loans through
the purchase of a Eurodollar deposit bearing interest at the rate obtained
pursuant to clause (i) of the definition of Adjusted Eurodollar Rate in an
amount equal to the amount of such Eurodollar Rate Loan and having a maturity
comparable to the relevant Interest Period and through the transfer of such
Eurodollar deposit from an offshore office of such Lender to a domestic office
of such Lender in the United States of America; provided, however,
each Lender may fund each of its 

 63
 

 

Eurodollar Rate Loans in any manner
it sees fit and the foregoing assumptions shall be utilized only for the
purposes of calculating amounts payable under this Section 2.18 and under Section 2.19.

2.19.   Increased Costs;
Capital Adequacy.

(a)   Compensation For Increased Costs. In
the event that any Lender (which term shall include Issuing Bank for purposes
of this Section 2.19(a)) shall determine (which determination shall,
absent manifest error, be final and conclusive and binding upon all parties
hereto) that any law, treaty or governmental rule, regulation or order, or any
change therein or in the interpretation, administration or application thereof
(including the introduction of any new law, treaty or governmental rule,
regulation or order), or any determination of a court or governmental
authority, in each case that becomes effective after the Second Amendment
Effective Date, or compliance by such Lender with any guideline, request or
directive issued or made after the Second Amendment Effective Date by any
central bank or other governmental or quasi-governmental authority
(whether or not having the force of law): (i) imposes, modifies or holds
applicable any reserve (including any marginal, emergency, supplemental,
special or other reserve), special deposit, compulsory loan, FDIC insurance or
similar requirement against assets held by, or deposits or other liabilities in
or for the account of, or advances or loans by, or other credit extended by, or
any other acquisition of funds by, any office of such Lender (other than any
such reserve or other requirements with respect to Eurodollar Rate Loans that
are reflected in the definition of Adjusted Eurodollar Rate); or (ii) imposes
any other condition (other than with respect to a Tax matter) on or affecting
such Lender (or its applicable lending office) or its obligations hereunder or
the London interbank market; and the result of any of the foregoing is to
increase the cost to such Lender of agreeing to make, making or maintaining
Loans hereunder or to reduce any amount received or receivable by such Lender
(or its applicable lending office) with respect thereto; then, in any such
case, Company shall promptly pay to such Lender, upon receipt of the statement
referred to in the next sentence, such additional amount or amounts (in the
form of an increased rate of, or a different method of calculating, interest or
otherwise as such Lender in its sole discretion shall determine) as may be
necessary to compensate such Lender for any such increased cost or reduction in
amounts received or receivable hereunder. Such Lender shall deliver to Company
(with a copy to Administrative Agent) a written statement, setting forth in
reasonable detail the basis for calculating the additional amounts owed to such
Lender under this Section 2.19(a), which statement shall be conclusive and
binding upon all parties hereto absent manifest error.

(b)   Capital Adequacy Adjustment. In the
event that any Lender (which term shall include Issuing Bank for purposes of
this Section 2.19(b)) shall have determined that the adoption,
effectiveness, phase-in or applicability after the Second Amendment
Effective Date of any law, rule or regulation (or any provision thereof)
regarding capital adequacy, or any change therein or in the interpretation or
administration thereof by any Governmental Authority, central 

 64
 

 

bank or comparable agency charged
with the interpretation or administration thereof, or compliance by any Lender
(or its applicable lending office) with any guideline, request or directive
regarding capital adequacy (whether or not having the force of law) of any such
Governmental Authority, central bank or comparable agency, has or would have
the effect of reducing the rate of return on the capital of such Lender or any
corporation controlling such Lender as a consequence of, or with reference to,
such Lender’s Loans or Revolving Commitments or Letters of Credit, or
participations therein or other obligations hereunder with respect to the Loans
or the Letters of Credit to a level below that which such Lender or such
controlling corporation could have achieved but for such adoption,
effectiveness, phase-in, applicability, change or compliance (taking into
consideration the policies of such Lender or such controlling corporation with
regard to capital adequacy), then from time to time, within five Business Days
after receipt by Company from such Lender of the statement referred to in the
next sentence, Company shall pay to such Lender such additional amount or
amounts as will compensate such Lender or such controlling corporation on an
after-tax basis for such reduction. No Lender shall be entitled to
request any payment pursuant to this Section 2.19(b) unless such
Lender is generally demanding payment under comparable provisions of its
agreements with similarly situated borrowers. Such Lender shall deliver to
Company (with a copy to Administrative Agent) a written statement, setting
forth in reasonable detail the basis for calculating the additional amounts
owed to Lender under this Section 2.19(b), which statement shall be
conclusive and binding upon all parties hereto absent manifest error.

2.20.   Taxes; Withholding,
etc.

(a)   Payments to Be Free and Clear. All
sums payable by any Credit Party hereunder and under the other Credit Documents
shall (except to the extent required by law) be paid free and clear of, and
without any deduction or withholding on account of, any Tax (other than a Tax
on the overall net income of any Lender) imposed, levied, collected, withheld
or assessed by or within the United States of America or any political
subdivision in or of the United States of America or any other jurisdiction
from or to which a payment is made by or on behalf of any Credit Party or by
any federation or organization of which the United States of America or any
such jurisdiction is a member at the time of payment.

(b)   Withholding of Taxes. If any Credit
Party or any other Person is required by law to make any deduction or
withholding on account of any such Tax from any sum paid or payable by any
Credit Party to Administrative Agent or any Lender (which term shall include
Issuing Bank for purposes of this Section 2.20(b)) under any of the Credit
Documents: (i) Company shall notify Administrative Agent of any such
requirement or any change in any such requirement as soon as Company becomes
aware of it; (ii) Company shall pay any such Tax before the date on which
penalties attach thereto, such payment to be made (if the liability to pay is
imposed on any Credit Party) for its own account or (if that liability is
imposed on Administrative Agent or such Lender, as the case may be) on behalf
of and in the name of

 65
 

 

Administrative Agent or such Lender; (iii) the
sum payable by such Credit Party in respect of which the relevant deduction,
withholding or payment is required shall be increased to the extent necessary
to ensure that, after the making of that deduction, withholding or payment,
Administrative Agent or such Lender, as the case may be, receives on the due
date a net sum equal to what it would have received had no such deduction,
withholding or payment been required or made; and (iv) within thirty days
after paying any sum from which it is required by law to make any deduction or
withholding, and within thirty days after the due date of payment of any Tax
which it is required by clause (ii) above to pay, Company shall deliver to
Administrative Agent evidence satisfactory to the other affected parties of
such deduction, withholding or payment and of the remittance thereof to the
relevant taxing or other authority; provided, no such additional amount shall
be required to be paid to any Lender under clause (iii) above except to
the extent that any change after the Second Amendment Effective Date (in the case
of each Lender listed on the signature pages of the Second Amendment on
the Second Amendment Effective Date) or after the effective date of the
Assignment Agreement pursuant to which such Lender became a Lender (in the case
of each other Lender) in any such requirement for a deduction, withholding or
payment as is mentioned therein shall result in an increase in the rate of such
deduction, withholding or payment from that in effect at the Second Amendment
Effective Date or at the date of such Assignment Agreement, as the case may be,
in respect of payments to such Lender.

(c)   Evidence of Exemption From U.S.
Withholding Tax. Each Lender that is not a United States Person (as such
term is defined in Section 7701(a)(30) of the Internal Revenue Code) for U.S.
federal income tax purposes (a “Non-US Lender”) shall deliver to Administrative
Agent for transmission to Company, on or prior to the Second Amendment
Effective Date (in the case of each Lender listed on the signature pages of
the Second Amendment on the Second Amendment Effective Date) or on or prior to
the date of the Assignment Agreement pursuant to which it becomes a Lender (in
the case of each other Lender), and at such other times as may be necessary in
the determination of Company or Administrative Agent (each in the reasonable
exercise of its discretion), (i) two original copies of Internal Revenue
Service Form W-8BEN or W-8ECI (or any successor forms),
properly completed and duly executed by such Lender, and such other
documentation required under the Internal Revenue Code or otherwise reasonably
requested by Company to establish that such Lender is not subject to deduction
or withholding of United States federal income tax with respect to any payments
to such Lender of principal, interest, fees or other amounts payable under any
of the Credit Documents, or (ii) if such Lender is not a “bank” or other
Person described in Section 881(c)(3) of the Internal Revenue Code
and cannot deliver documentation pursuant to clause (i) above, a
Certificate re Non-Bank Status together with two original copies of
Internal Revenue Service Form W-8BEN (or any successor form),
properly completed and duly executed by such Lender, and such other
documentation required under the Internal Revenue Code or otherwise reasonably
requested by Company to establish that such Lender is 

 66
 

 

not subject to deduction or
withholding of United States federal income tax with respect to any payments to
such Lender of interest payable under any of the Credit Documents. Each Lender
required to deliver any forms, certificates or other evidence with respect to
United States federal income tax withholding matters pursuant to this Section 2.20(c) hereby
agrees, from time to time after the initial delivery by such Lender of such
forms, certificates or other evidence, whenever a lapse in time or change in
circumstances renders such forms, certificates or other evidence obsolete or
inaccurate in any material respect, that such Lender shall promptly deliver to
Administrative Agent for transmission to Company two new original copies of
Internal Revenue Service Form W-8BEN or W-8ECI, or a
Certificate re Non-Bank Status and two original copies of Internal
Revenue Service Form W-8BEN (or any successor form), as the case may
be, properly completed and duly executed by such Lender, and such other
documentation required under the Internal Revenue Code or otherwise reasonably
requested by Company to confirm or establish that such Lender is not subject to
deduction or withholding of United States federal income tax with respect to
payments to such Lender under the Credit Documents, or notify Administrative
Agent and Company of its inability to deliver any such forms, certificates or
other evidence. Company shall not be required to pay any additional amount to any
Non-US Lender under Section 2.20(b)(iii) if such Lender shall
have failed (1) to deliver the forms, certificates or other evidence
referred to in the second sentence of this Section 2.20(c), or (2) to
notify Administrative Agent and Company of its inability to deliver any such
forms, certificates or other evidence, as the case may be; provided, if
such Lender shall have satisfied the requirements of the first sentence of this
Section 2.20(c) on the Second Amendment Effective Date or on the date
of the Assignment Agreement pursuant to which it became a Lender, as
applicable, nothing in this last sentence of Section 2.20(c) shall
relieve Company of its obligation to pay any additional amounts pursuant this Section 2.20
in the event that, as a result of any change in any applicable law, treaty or
governmental rule, regulation or order, or any change in the interpretation,
administration or application thereof, such Lender is no longer properly
entitled to deliver forms, certificates or other evidence at a subsequent date
establishing the fact that such Lender is not subject to withholding as
described herein.

2.21.   Obligation
to Mitigate. Each Lender (which term shall include Issuing
Bank for purposes of this Section 2.21) agrees that, as promptly as
practicable after the officer
of such Lender responsible for administering its Loans or Letters of Credit, as
the case may be, becomes aware of the occurrence of an event or the existence
of a condition that would cause such Lender to become an Affected Lender or
that would entitle such Lender to receive payments under Section 2.18,
2.19 or 2.20, it will, to the extent not inconsistent with the internal
policies of such Lender and any applicable legal or regulatory restrictions,
use reasonable efforts to (a) make, issue, fund or maintain its Credit
Extensions, including any Affected Loans, through another office of such Lender,
or (b) take such other measures as such Lender may deem reasonable, if as
a result thereof the circumstances which would cause such Lender to be an
Affected Lender would cease to exist or the additional amounts which would
otherwise be required to be paid to 

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such Lender pursuant to Section 2.18,
2.19 or 2.20 would be materially reduced and if, as determined by such Lender
in its sole discretion, the making, issuing, funding or maintaining of such
Revolving Commitments, Loans or Letters of Credit through such other office or
in accordance with such other measures, as the case may be, would not otherwise
adversely affect such Revolving Commitments, Loans or Letters of Credit or the
interests of such Lender in any material respect; provided, such Lender
will not be obligated to utilize such other office pursuant to this Section 2.21
unless Company agrees to pay all incremental expenses incurred by such Lender
as a result of utilizing such other office as described in clause (i) above.
A certificate as to the amount of any such expenses payable by Company pursuant
to this Section 2.21 (setting forth in reasonable detail the basis for
requesting such amount) submitted by such Lender to Company (with a copy to
Administrative Agent) shall be conclusive absent manifest error.

2.22.   Defaulting Lenders. Anything
contained herein to the contrary notwithstanding, in the event that any Lender
defaults (a “Defaulting Lender”) in its
obligation to fund (a “Funding Default”) any Revolving Loan or its portion of any
unreimbursed payment under Section 2.3(b)(iv) or 2.4(e) (in each
case, a “Defaulted Loan”), then (a) during
any Default Period with respect to such Defaulting Lender, such Defaulting
Lender shall be deemed not to be a “Lender” for purposes of voting on any
matters (including the granting of any consents or waivers) with respect to any
of the Credit Documents; (b) to the extent permitted by applicable law,
until such time as the Default Excess with respect to such Defaulting Lender
shall have been reduced to zero, (i) any voluntary prepayment of the
Revolving Loans shall, if Company so directs at the time of making such
voluntary prepayment, be applied to the Revolving Loans of other Lenders as if
such Defaulting Lender had no Revolving Loans outstanding and the Revolving
Exposure of such Defaulting Lender were zero, and (ii) any mandatory
prepayment of the Revolving Loans shall, if Company so directs at the time of
making such mandatory prepayment, be applied to the Revolving Loans of other
Lenders (but not to the Revolving Loans of such Defaulting Lender) as if such
Defaulting Lender had funded all Defaulted Loans of such Defaulting Lender, it
being understood and agreed that Company shall be entitled to retain any
portion of any mandatory prepayment of the Revolving Loans that is not paid to
such Defaulting Lender solely as a result of the operation of the provisions of
this clause (b); (c) such Defaulting Lender’s Revolving Commitment and
outstanding Revolving Loans and such Defaulting Lender’s Pro Rata Share of the
Letter of Credit Usage shall be excluded for purposes of calculating the
Revolving Commitment fee payable to Lenders in respect of any day during any
Default Period with respect to such Defaulting Lender, and such Defaulting
Lender shall not be entitled to receive any Revolving Commitment fee pursuant
to Section 2.11 with respect to such Defaulting Lender’s Revolving
Commitment in respect of any Default Period with respect to such Defaulting
Lender; and (d) the Total Utilization of Revolving Commitments as at any
date of determination shall be calculated as if such Defaulting Lender had
funded all Defaulted Loans of such Defaulting Lender. No Revolving Commitment
of any Lender shall be increased or otherwise affected, and, except as
otherwise expressly provided in this Section 2.22, performance 

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by Company of its
obligations hereunder and the other Credit Documents shall not be excused or
otherwise modified as a result of any Funding Default or the operation of this Section 2.22.
The rights and remedies against a Defaulting Lender under this Section 2.22
are in addition to other rights and remedies which Company may have against
such Defaulting Lender with respect to any Funding Default and which
Administrative Agent or any Lender may have against such Defaulting Lender with
respect to any Funding Default.

2.23.   Removal or
Replacement of a Lender. Anything contained herein to the
contrary notwithstanding, in the event that: (a) (i) any Lender (an “Increased-Cost Lender”)
shall give notice to Company that such Lender is an Affected Lender or that
such Lender is entitled to receive payments under Section  2.18, 2.19
or 2.20, (ii) the circumstances which have caused such Lender to be an
Affected Lender or which entitle such Lender to receive such payments shall
remain in effect, and (iii) such Lender shall fail to withdraw such notice
within five Business Days after Company’s request for such withdrawal; or (b) (i) any
Lender shall become a Defaulting Lender, (ii) the Default Period for such
Defaulting Lender shall remain in effect, and (iii) such Defaulting Lender
shall fail to cure the default as a result of which it has become a Defaulting
Lender within five Business Days after Company’s request that it cure such
default; or (c) in connection with any proposed amendment, modification,
termination, waiver or consent with respect to any of the provisions hereof as
contemplated by Section 10.5(b), the consent of Requisite Lenders shall
have been obtained but the consent of one or more of such other Lenders (each a
“Non-Consenting Lender”) whose
consent is required shall not have been obtained; then, with respect to each
such Increased-Cost Lender, Defaulting Lender or Non-Consenting
Lender (the “Terminated Lender”), Company may,
by giving written notice to Administrative Agent and any Terminated Lender of
its election to do so, elect to cause such Terminated Lender (and such
Terminated Lender hereby irrevocably agrees) to assign its outstanding Loans
and its Revolving Commitments, if any, in full to one or more Eligible
Assignees (each a “Replacement Lender”)
in accordance with the provisions of Section 10.6; provided, (1) on
the date of such assignment, the Replacement Lender shall pay to Terminated
Lender an amount equal to the sum of (A) an amount equal to the principal
of, and all accrued interest on, all outstanding Loans of the Terminated
Lender, (B) an amount equal to all unreimbursed drawings that have been
funded by such Terminated Lender, together with all then unpaid interest with
respect thereto at such time and (C) an amount equal to all accrued, but
theretofore unpaid fees owing to such Terminated Lender pursuant to Section 2.11;
(2) on the date of such assignment, Company shall pay any amounts payable
to such Terminated Lender pursuant to Section 2.18(c), 2.19 or 2.20; and (3) in
the event such Terminated Lender is a Non-Consenting Lender, each
Replacement Lender shall consent, at the time of such assignment, to each
matter in respect of which such Terminated Lender was a Non-Consenting
Lender; provided, Company may not make such election with respect to any
Terminated Lender that is also an Issuing Bank unless, prior to or
simultaneously with the effectiveness of such election, Company shall have
caused each outstanding Letter of Credit issued thereby to be cancelled. 

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Upon the prepayment of
all amounts owing to any Terminated Lender and the termination of such
Terminated Lender’s Revolving Commitments, if any, such Terminated Lender shall
no longer constitute a “Lender” for purposes hereof; provided, any
rights of such Terminated Lender to indemnification hereunder shall survive as
to such Terminated Lender.

2.24.   Increase
in Revolving Commitments. Company may by written notice to
Administrative Agent elect to request on no more than five occasions prior to
the Revolving Commitment
Termination Date, an increase to the existing Revolving Loan Commitments (any
such increase, the “New Revolving Commitments”),
by an aggregate amount not in excess of $30,000,000 and not less than
$1,000,000 individually. Each such notice shall specify (A) the date
(each, an “Increased Amount Date”)
on which Company proposes that the New Revolving Commitments shall be
effective, which shall be a date not less than 10 Business Days after the date
on which such notice is delivered to Administrative Agent; provided that
only one Business Day’s notice shall be required in connection with any such
increase on the Second Amendment Effective Date and (B) the identity of
each Lender or other Person that is an Eligible Assignee (each, a “New Revolving Lender”) to whom Company
proposes any portion of such New Revolving Commitments be allocated and the
amounts of such allocations; provided that any Lender approached to
provide all or a portion of the New Revolving Commitments may elect or decline,
in its sole discretion, to provide a New Revolving Commitment. Such New
Revolving Commitments shall become effective as of such Increased Amount Date; provided
that (1) no Default or Event of Default shall exist on such Increased
Amount Date before or after giving effect to such New Revolving Commitments; (2) Company
and its Subsidiaries shall be in pro forma compliance with each of the
covenants set forth in Section 6.8 as of the last day of the most recently
ended Fiscal Quarter after giving effect to such New Revolving Commitments; (3) the
New Revolving Commitments shall be effected pursuant to one or more Joinder
Agreements executed and delivered by Company, the New Revolving Lender and
Administrative Agent, and each of which shall be recorded in the Register and
each New Revolving Lender shall be subject to the requirements set forth in Section 2.20(c);
(4) Company shall make any payments required pursuant to Section 2.18(c) in
connection with the New Revolving Commitments; and (5) Company shall
deliver or cause to be delivered any documents reasonably requested by
Administrative Agent in connection with any such transaction.

On any Increased Amount Date on which New Revolving Commitments are
effected, subject to the satisfaction of the foregoing terms and conditions, (a) each
of the Revolving Lenders shall assign to each of the New Revolving Lenders, and
each of the New Revolving Lenders shall purchase from each of the Revolving
Loan Lenders, at the principal amount thereof (together with accrued interest),
such interests in the Revolving Loans outstanding on such Increased Amount Date
as shall be necessary in order that, after giving effect to all such
assignments and purchases, such Revolving Loans will be held by existing
Revolving Loan Lenders and New Revolving Lenders ratably in accordance with
their Revolving Loan Commitments after giving effect to the addition of such
New Revolving Commitments to the 

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Revolving Loan Commitments, (b) each New
Revolving Commitment shall be deemed for all purposes a Revolving Loan
Commitment and each Loan made thereunder (a “New
Revolving Loan”) shall be deemed, for all purposes, a Revolving Loan
and (c) each New Revolving Lender shall become a Lender with respect to
the New Revolving Commitment and all matters relating thereto.

Administrative Agent shall notify Lenders promptly upon receipt of
Company’s notice of each Increased Amount Date and in respect thereof the New
Revolving Commitments and the New Revolving Lenders.

The terms and provisions of the New
Revolving Loans shall be identical to the Revolving Loans. Each Joinder
Agreement may, without the consent of any other Lenders, effect such amendments
to this Agreement and the other Credit Documents as may be necessary or
appropriate, in the opinion of the Administrative Agent, to effect the
provisions of this Section 2.24.

SECTION 3.  CONDITIONS PRECEDENT

3.1.   Closing Date. The
obligation of any Lender to make a Credit Extension under the Existing Credit
Agreement on the Closing Date was subject to the satisfaction, or waiver in accordance with Section 10.5,
of the following conditions on or before the Closing Date. Solely for purposes
of the historical conditions set forth in this Section 3.1, capitalized
terms used in this Section 3.1 and defined in the Existing Credit
Agreement shall have the meanings specified in the Existing Credit Agreement as
applicable as of the Closing Date.

(a)   Credit Documents. Administrative Agent
shall have received sufficient copies of each Credit Document originally
executed and delivered by each applicable Credit Party for each Lender.

(b)   Organizational
Documents; Incumbency. Administrative Agent shall have received (i) sufficient
copies of each Organizational Document executed and delivered by each Credit
Party, as applicable, and, to the extent applicable, certified as of a recent
date by the appropriate governmental official, for each Lender, each dated the
Closing Date or a recent date prior thereto; (ii) signature and incumbency
certificates of the officers of such Person executing the Credit Documents to
which it is a party; (iii) resolutions of the Board of Directors or
similar governing body of each Credit Party approving and authorizing the
execution, delivery and performance of this Agreement and the other Credit
Documents and the Related Agreements to which it is a party or by which it or
its assets may be bound as of the Closing Date, certified as of the Closing
Date by its secretary or an assistant secretary as being in full force and
effect without modification or amendment; (iv) a good standing certificate
(or the equivalent) from the 

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applicable
Governmental Authority of each Credit Party’s jurisdiction of incorporation,
organization or formation and in each jurisdiction in which it is qualified as
a foreign corporation or other entity to do business, each dated a recent date
prior to the Closing Date; and (v) such other documents as Administrative
Agent may reasonably request.

(c)   Organizational and Capital Structure. The
organizational structure and capital structure of Holdings and its
Subsidiaries, both before and after giving effect to the Acquisition, shall be
as set forth on Schedule 4.1.

(d)   Capitalization of Holdings and Company.
On or before the Closing Date, Holdings or its parent entity shall have issued (i) common
equity in Holdings or such parent entity to Permitted Holders of not less than
$100,000,000 and (ii) preferred equity in Holdings to the Seller and other
investors reasonably acceptable to the Lenders of not less than $125,000,000,
all on terms and conditions reasonably satisfactory to the Lenders (the “Equity Financing”) and the Company shall have
received the proceeds thereof from Holdings and the gross proceeds of the
Senior Subordinated Notes in an aggregate principal amount not less than
$320,000,000 which, together with the proceeds from borrowings made on the
Closing Date pursuant to this Agreement, shall be sufficient to consummate the
Acquisition and pay all related fees, commissions and expenses. The terms of
the Equity Financing and the agreements relating thereto, to the extent
relevant to the financing pursuant to this Agreement, shall be reasonably satisfactory
in all material respects to Administrative Agent.

(e)   Consummation of Transactions Contemplated
by Related Agreements.

(i)   (1) All
conditions to the issuance and sale of the Senior Subordinated Notes shall have
been satisfied or the fulfillment of any such conditions shall have been waived
with the consent of Administrative Agent, (2) the terms of the Senior
Subordinated Note Documents shall be reasonably satisfactory in all respects to
Administrative Agent and its counsel, and (3) Company shall have issued
$320,000,000 in aggregate face value of the Senior Subordinated Notes.

(ii)   (1) The
structure utilized to consummate the Acquisition, the terms thereof, the costs
and expenses incurred in connection therewith, the pro forma capitalization of
the Company after giving effect to the Acquisition and the definitive
documentation relating thereto shall be in form and substance reasonably
satisfactory to Administrative Agent, (2) the Purchase Agreement shall be
in full force and effect on the Closing Date, (3) the Acquisition shall
have been consummated pursuant to the Purchase Agreement, and (4) all
conditions precedent to the consummation of the Acquisition shall have been
satisfied or, with the prior approval of Administrative Agent, waived.

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(iii)   There
shall not exist (pro forma for the Acquisition and
the financing thereof) any default or event of default under any of the Credit
Documents, or under any other material Indebtedness of the Company or its
Subsidiaries.

(iv)  
Administrative Agent shall have received a fully executed or conformed
copy of each Related Agreement and any documents executed in connection
therewith.

(f)   Existing Indebtedness. On the Closing
Date, Holdings and its Subsidiaries shall have (i) repaid in full all
Existing Indebtedness listed in Part A of Schedule 6.1, (ii) terminated
any commitments to lend or make other extensions of credit thereunder, (iii) delivered
to Administrative Agent all documents or instruments necessary to release all
Liens securing Existing Indebtedness listed in Part A of Schedule 6.1 or
other obligations of Holdings and its Subsidiaries thereunder being repaid on
the Closing Date, and (iv) made arrangements satisfactory to
Administrative Agent with respect to the cancellation of any letters of credit
outstanding thereunder or the issuance of Letters of Credit to support the
obligations of Holdings and its Subsidiaries with respect thereto.

(g)   Transaction Costs. On or prior to the
Closing Date, Company shall have delivered to Administrative Agent Company’s
reasonable best estimate of the Transaction Costs (other than fees payable to
any Agent).

(h)   Governmental Authorizations and Consents.
Each Credit Party shall have obtained all Governmental Authorizations and
all consents of other Persons, in each case that are necessary in connection
with the transactions contemplated by the Credit Documents and the Related
Agreements (except for any Governmental Authorizations or consents the absence
of which could not reasonably be expected to have a Material Adverse Effect)
and each of the foregoing shall be in full force and effect and in form and
substance reasonably satisfactory to Administrative Agent. All applicable
waiting periods shall have expired without any action being taken or threatened
by any competent Governmental Authority which would restrain, prevent or
otherwise impose materially adverse conditions on the transactions contemplated
by the Credit Documents or the Related Agreements or the financing thereof and
no action, request for stay, petition for review or rehearing, reconsideration,
or appeal with respect to any of the foregoing shall be pending, and the time
for any applicable agency to take action to set aside its consent on its own
motion shall have expired.

(i)   Personal Property Collateral. In order
to create in favor of Collateral Agent, for the benefit of Secured Parties, a
valid, perfected First Priority security interest in the personal property
Collateral, Collateral Agent shall have received:

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(i)   evidence
reasonably satisfactory to Collateral Agent of the compliance by each Credit
Party of their obligations under the Pledge and Security Agreement and the
other Collateral Documents (including, without limitation, their obligations to
execute and deliver originals of securities, instruments and chattel paper and
any agreements governing deposit and/or securities accounts as provided
therein);

(ii)   a completed
Collateral Questionnaire dated the Closing Date and executed by an Authorized
Officer of each Credit Party, together with all attachments contemplated
thereby, including (A) the results of a recent search, by a Person
satisfactory to Collateral Agent, of all effective UCC financing statements (or
equivalent filings) made with respect to any personal or mixed property of any
Credit Party in the jurisdictions specified in the Collateral Questionnaire,
together with copies of all such filings disclosed by such search, and (B) UCC
termination statements (or similar documents) duly executed by all applicable
Persons for filing in all applicable jurisdictions as may be necessary to
terminate any effective UCC financing statements (or equivalent filings)
disclosed in such search (other than any such financing statements in respect
of Permitted Liens);

(iii)   opinions
of counsel (which counsel shall be reasonably satisfactory to Collateral Agent)
with respect to the creation and perfection of the security interests in favor
of Collateral Agent in such Collateral and such other matters governed by the
laws of each jurisdiction in which any Credit Party is organized as Collateral
Agent may reasonably request, in each case in form and substance reasonably
satisfactory to Collateral Agent;

(iv)   evidence
that each Credit Party shall have taken or caused to be taken any other action,
executed and delivered or caused to be executed and delivered any other
agreement, document and instrument (including without limitation, (i) a
Landlord Personal Property Collateral Access Agreement executed by the landlord
of any Leasehold Property and by the applicable Credit Party and (ii) any
intercompany notes evidencing Indebtedness permitted to be incurred pursuant to
Section 6.1(b)) and made or caused to be made any other filing and
recording (other than as set forth herein) reasonably required by Collateral
Agent; and

(v)   evidence
satisfactory to the Collateral Agent that Company has retained, at its sole
cost and expense, a service provider acceptable to the Collateral Agent for the
tracking of all such financing statements and notification to the Collateral
Agent, of, among other things, the upcoming lapse or expiration thereof.

(j)   Environmental Reports. Administrative
Agent shall have received reports and other information concerning any
environmental liabilities as are delivered by Seller under 

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the Purchase Agreement, in form,
scope and substance reasonably satisfactory to Administrative Agent.

(k)   Financial Statements; Projections. Lenders
shall have received from Holdings (i) the Historical Financial Statements,
(ii) pro forma consolidated and consolidating balance sheets of Holdings
and its Subsidiaries as at the Closing Date, and reflecting the consummation of
the Acquisition, the related financings and the other transactions contemplated
by the Credit Documents to occur on or prior to the Closing Date, which pro
forma financial statements shall be in form and substance reasonably
satisfactory to Administrative Agent, and (iii) the Projections.

(l)   Evidence of Insurance. Collateral
Agent shall have received a certificate from Company’s insurance broker or
other evidence satisfactory to it that all insurance required to be maintained
pursuant to Section 5.5 is in full force and effect, together with
endorsements naming the Collateral Agent, for the benefit of Lenders, as
additional insured and loss payee thereunder to the extent required under Section 5.5.

(m)   Opinions of Counsel to Credit Parties.
Lenders and their respective counsel shall have received originally executed
copies of the favorable written opinion of Schulte Roth & Zabel LLP,
special New York counsel for the Credit Parties, substantially in the form of Exhibit D
and as to such other matters as Administrative Agent or Syndication Agent may
reasonably request, dated as of the Closing Date and otherwise in form and substance
reasonably satisfactory to Administrative Agent (and each Credit Party hereby
instructs such counsel to deliver such opinions to Agents and Lenders).

(n)   Fees. Company shall have paid to
Syndication Agent, Administrative Agent and Documentation Agent, the fees
payable on the Closing Date referred to in Section 2.11(d).

(o)   Solvency Certificate. On the Closing
Date, Administrative Agent shall have received a Solvency Certificate from
Company dated the Closing Date and addressed to Syndication Agent,
Administrative Agent and Lenders, and in form, scope and substance reasonably
satisfactory to Administrative Agent, with appropriate attachments and
demonstrating that the Company and its Subsidiaries, taken as a whole, are, and
after giving effect to the consummation of the Acquisition, will be Solvent.

(p)   Closing Date Certificate. Holdings and
Company shall have delivered to Administrative Agent an originally executed
Closing Date Certificate, together with all attachments thereto.

(q)   Credit Rating. The credit facilities
provided for under this Agreement shall have been assigned a credit rating by
either S&P and/or Moody’s.

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(r)   Closing Date. Lenders shall have made
the Term Loans to Company on or before March 31, 2005.

(s)   No Litigation. There shall not exist
any action, suit, investigation, litigation or proceeding or other legal or
regulatory developments, pending or threatened in any court or before any
arbitrator or Governmental Authority that, in the reasonable opinion of
Administrative Agent, singly or in the aggregate, materially impairs the
Acquisition, the financing thereof or any of the other transactions
contemplated by the Credit Documents or the Related Agreements, or that could
reasonably be expected to have a Material Adverse Effect.

(t)   Completion of Proceedings. All
partnership, corporate and other proceedings taken or to be taken in connection
with the transactions contemplated hereby and all documents incidental thereto
not previously found acceptable by Administrative Agent and its counsel shall
be reasonably satisfactory in form and substance to Administrative Agent and
such counsel, and Administrative Agent and such counsel shall have received all
such counterpart originals or certified copies of such documents as Administrative
Agent may reasonably request.

(u)   Minimum EBITDA; Maximum Total Leverage.
The pro forma Consolidated Adjusted EBITDA
of the Company, after giving effect to the Acquisition, for the twelve-month
period ended December 31, 2004 shall not be less than $107.4 million. The
ratio of pro forma Consolidated
Total Debt to pro forma
Consolidated Adjusted EBITDA, after giving effect to the Acquisition, for the
twelve-month period ended December 31, 2004, shall not be greater than
6.20:1.00.

Each Lender, by
delivering its signature page to this Agreement and funding a Loan on the
Closing Date, shall be deemed to have acknowledged receipt of, and consented to
and approved, each Credit Document and each other document required to be
approved by any Agent, Requisite Lenders or Lenders, as applicable on the
Closing Date.

3.2.  Conditions to
Each Credit Extension.

(a)   Conditions Precedent. The obligation
of each Lender to make any Loan, or Issuing Bank to issue any Letter of Credit,
on any Credit Date, including the Second Amendment Effective Date, are subject
to the satisfaction, or waiver in accordance with Section 10.5, of the
following conditions precedent:

(i)  
Administrative Agent shall have received a fully executed and delivered
Funding Notice or Issuance Notice, as the case may be;

(ii)   as of such
Credit Date, the representations and warranties contained herein and in the
other Credit Documents shall be true and correct in all material respects 

 76
 

 

on and as of that Credit Date to the same extent as though
made on and as of that date, except to the extent such representations and
warranties specifically relate to an earlier date, in which case such
representations and warranties shall have been true and correct in all material
respects on and as of such earlier date;

(iii)   as of such
Credit Date, no event shall have occurred and be continuing or would result
from the consummation of the applicable Credit Extension that would constitute
an Event of Default or a Default;

(iv)   on or
before the date of issuance of any Letter of Credit, Administra­tive Agent
shall have received all other information required by the applicable Issuance
Notice, and such other documents or information as Issuing Bank may reasonably
require in connection with the issuance of such Letter of Credit; and

(v)   after giving
effect to such Credit Extension and the anticipated use of proceeds thereof,
the aggregate Cash and Cash Equivalents of Holdings and its Subsidiaries will
not exceed $10,000,000.

(b)   Notices. Any Notice shall be executed
by an Authorized Officer in a writing delivered to Administrative Agent. In
lieu of delivering a Notice, Company may give Administrative Agent telephonic
notice by the required time of any proposed borrowing, conversion/continuation
or issuance of a Letter of Credit, as the case may be; provided each
such notice shall be promptly confirmed in writing by delivery of the
applicable Notice to Administrative Agent on or before the applicable date of
borrowing, continuation/conversion or issuance. Neither Administrative Agent
nor any Lender shall incur any liability to Company in acting upon any
telephonic notice referred to above that Administrative Agent believes in good
faith to have been given by a duly authorized officer or other person authorized
on behalf of Company or for otherwise acting in good faith.

3.3.  Conditions
to Obligation to Fund the New Term Loan Commitments on the Second Amendment
Effective Date.  The obligation of any New Term
Loan Lender to make a
Credit Extension under this Agreement on the Second Amendment Effective Date is
subject to the satisfaction, or waiver in accordance with Section 10.5, of
the following conditions on or before the Second Amendment Effective Date:

(a)           Credit
Documents. Administrative Agent shall have received (i) the Second
Amendment, executed and delivered by a duly authorized officer of the Company,
Holdings, each other Guarantor, the Agents, the Issuing Bank, the Requisite
Lenders (as defined in the Existing Credit Agreement) and the Continuing
Lenders, (ii) if requested by any Lender making a New Term Loan on the
Second Amendment Effective Date, a New Term Loan Note substantially in the form
of Exhibit B-1, (iii) the Reaffirmation Agreement, executed and

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delivered by a duly authorized officer of each Grantor under the Pledge
and Security Agreement and each Guarantor and (iv) sufficient copies of
each Credit Document executed and delivered by each applicable Credit Party for
each Lender.

(b)           Organizational
Documents; Incumbency. Administrative Agent shall have received (i) 
copies of each Organizational Document executed and delivered by each Credit
Party, as applicable, and, to the extent applicable, certified as of a recent
date by the appropriate governmental official, each dated the Second Amendment
Effective Date or a recent date prior thereto or, if there has been no change
in such Organizational Documents since the Closing Date, a certificate of the
secretary or assistant secretary of such Credit Party to that effect; (ii) signature
and incumbency certificates of the officers of such Credit Party executing the
Credit Documents to which it is a party; (iii) resolutions of the Board of
Directors or similar governing body of each Credit Party approving and
authorizing the execution, delivery and performance of this Agreement and the
other Credit Documents to which it is a party or by which it or its assets may
be bound as of the Second Amendment Effective Date, certified as of the Second
Amendment Effective Date by its secretary or an assistant secretary as being in
full force and effect without modification or amendment; (iv) a good
standing certificate from the applicable Governmental Authority of each Credit
Party’s jurisdiction of incorporation, organization or formation and in each
jurisdiction in which it is qualified as a foreign corporation or other entity
to do business, each dated a recent date prior to the Second Amendment
Effective Date; and (v) such other documents as Administrative Agent may
reasonably request in writing.

(c)           Letter of Direction.
On or prior to the Second Amendment Effective Date, Company shall have
delivered to Lead Arranger and Administrative Agent a letter of direction with
respect to the proceeds of the New Term Loans.

(d)           Consents and
Approvals. All necessary governmental, shareholder and third-party
approvals and consents necessary in connection with the transactions
contemplated hereby shall have been received or waived and shall be in full
force and effect, and all applicable waiting periods shall have expired without
any action being taken by any applicable authority.

(e)           Collateral
Questionnaire. Collateral Agent shall have received from Company and each
applicable Guarantor an updated Collateral Questionnaire dated the Second
Amendment Effective Date and executed by an Authorized Officer of each Credit
Party, together with all attachments contemplated thereby, including the
results of a recent search, by a Person reasonably satisfactory to Collateral
Agent, of all effective UCC financing statements (or equivalent filings) made
with respect to any personal or mixed property of any Credit Party in the
jurisdictions specified in the Collateral Questionnaire, together with copies
of all such filings disclosed by such search.

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(f)            Evidence of
Insurance. Administrative Agent shall have received a certificate from
Company’s insurance broker or other evidence reasonably satisfactory to it that
all insurance required to be maintained pursuant to Section 5.5 is in full
force and effect and that Collateral Agent, for the benefit of Lenders has been
named as additional insured and loss payee thereunder to the extent required
under Section 5.5.

(g)           Opinions of Counsel
to Credit Parties. Lenders and their respective counsel shall have received
an originally executed copy of the favorable written opinion of Schulte Roth &
Zabel LLP, special New York counsel for the Credit Parties, addressed to the
Agents and the Lenders substantially in the same form and substance as the
opinion delivered in connection with the closing under the Existing Credit
Agreement.

(h)           Fees. All costs,
fees, expenses (including, without limitation, reasonable legal fees and
expenses, title premiums and recording taxes and fees) and other compensation
payable to Lead Arranger and Administrative Agent shall have been paid to the
extent due.

(i)            Second Amendment
Effective Date Solvency Certificate. On the Second Amendment Effective
Date, Administrative Agent shall have received a Second Amendment Effective
Date Solvency Certificate from Company dated the Second Amendment Effective
Date and addressed to Administrative Agent and Lenders, and in form, scope and
substance reasonably satisfactory to Administrative Agent, with appropriate
attachments and demonstrating that after giving effect to the consummation of
the transactions contemplated hereby, Company and its Subsidiaries, on a
consolidated basis, are and will be Solvent.

(j)            Second Amendment
Effective Date Certificate. Holdings and Company shall have delivered to
Administrative Agent an originally executed Second Amendment Effective Date
Certificate, together with all attachments thereto.

(k)           No
Litigation. There shall not exist any action, suit, investigation,
litigation or proceeding or other legal or regulatory development, pending or
threatened in any court or before any arbitrator or Governmental Authority,
that singly or in the aggregate materially impairs the transactions
contemplated by the Credit Documents or that would reasonably be expected to
have a Material Adverse Effect.

(l)            Completion
of Proceedings. All limited liability company, partnership, corporate and
other proceedings taken or to be taken in connection with the transactions
contemplated hereby shall be satisfactory in form and substance to
Administrative Agent and its counsel, and Administrative Agent and such counsel
shall have received all such counterpart originals or certified copies of such
documents as Administrative Agent may reasonably request.

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Each Lender, by
delivering its signature page to the Second Amendment and/or funding a
Loan on the Second Amendment Effective Date, shall be deemed to have
acknowledged receipt of, and consented to and approved, each Credit Document
and each other document required to be approved by any Agent, Requisite Lenders
or Lenders, as applicable on the Second Amendment Effective Date.

3.4.  Effect
of Agreement on Other Credit Documents.  By its signature on the Existing Credit
Agreement or on the Second Amendment, each Credit Party acknowledges and agrees that this
Agreement is a valid amendment of the Existing Credit Agreement made in
accordance with the terms thereof and binding against such Credit Party and
that each Credit Document (other than this Agreement) shall continue to be
valid and binding against such Credit Party and its assets and properties as of
and after the Second Amendment Effective Date (with any references to the
Existing Credit Agreement in any such Credit Document construed as references
to this Agreement).

SECTION 4.  REPRESENTATIONS AND WARRANTIES

In order to induce Lenders and Issuing Bank to enter into this
Agreement and to make each Credit Extension to be made thereby, each Credit
Party represents and warrants to each Lender and Issuing Bank, on the Closing
Date and on each Credit Date (including the Second Amendment Effective Date),
that the following statements are true and correct (it being understood that (i) any
representations and warranties made on and as of a Credit Date other than the
Closing Date shall be true and correct to the same extent as though made on and
as of that date, except to the extent such representations and warranties
specifically relate to an earlier date, in which case such representations and
warranties shall have been true and correct on and as of such earlier date and (ii) the
representations and warranties made on the Second Amendment Effective Date are
deemed to be made concurrently with the consummation of the transactions
contemplated hereby):

4.1.  Organization;
Requisite Power and Authority; Qualification.  Each
of Holdings and its Subsidiaries (a) is duly organized, validly existing
and in good standing under the
laws of its jurisdiction of organization as identified in Schedule 4.1, (b) has
all requisite power and authority to own and operate its properties, to carry
on its business as now conducted and as proposed to be conducted, to enter into
the Credit Documents to which it is a party and to carry out the transactions
contemplated thereby, and (c) is qualified to do business and in good
standing in every jurisdiction where its assets are located and wherever
necessary to carry out its business and operations, except in jurisdictions
where the failure to be so qualified or in good standing has not had, and could
not be reasonably expected to have, a Material Adverse Effect.

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4.2.  Capital Stock and
Ownership.  The Capital Stock of each of Holdings
and its Subsidiaries has been duly authorized and validly issued and is fully
paid and non-assessable.
Except as set forth on Schedule 4.2, as of the Closing Date, there was no
existing option, warrant, call, right, commitment or other agreement to which
Holdings or any of its Subsidiaries is a party requiring, and there was no
membership interest or other Capital Stock of Holdings or any of its
Subsidiaries outstanding which upon conversion or exchange would require, the
issuance by Holdings or any of its Subsidiaries of any additional membership
interests or other Capital Stock of Holdings or any of its Subsidiaries or
other Securities convertible into, exchangeable for or evidencing the right to
subscribe for or purchase, a membership interest or other Capital Stock of
Holdings or any of its Subsidiaries. Schedule 4.2 correctly sets forth the
ownership interest of Holdings and each of its Subsidiaries in their respective
Subsidiaries as of the Closing Date both before and after giving effect to the
Acquisition.

4.3.  Due Authorization.  The
execution, delivery and performance of the Credit Documents have been duly
authorized by all necessary action on the part of each Credit Party that is a party thereto.

4.4.  No Conflict.  The
execution, delivery and performance by the Credit Parties of the Credit
Documents to which they are parties and the consummation of the transactions contemplated by the Credit
Documents do not and will not (a) violate (i) any provision of any
law or any governmental rule or regulation applicable to Holdings or any
of its Subsidiaries, (ii) any of the Organizational Documents of Holdings
or any of its Subsidiaries, or (iii) any order, judgment or decree of any
court or other agency of government binding on Holdings or any of its
Subsidiaries, except in the case of clauses (i) and (iii) to the
extent such violation could not reasonably be expected to have a Material
Adverse Effect; (b) conflict with, result in a breach of or constitute
(with due notice or lapse of time or both) a default under any material
Contractual Obligation of Holdings or any of its Subsidiaries; (c) result
in or require the creation or imposition of any Lien upon any of the properties
or assets of Holdings or any of its Subsidiaries (other than any Liens created
under any of the Credit Documents in favor of Collateral  Agent, on behalf of Secured Parties); or (d) require,
as of the Closing Date, any approval of stockholders, members or partners or
any approval or consent of any Person under any Contractual Obligation of
Holdings or any of its Subsidiaries, except for any such approval or consent (i) which
was obtained on or before the Closing Date and disclosed in writing to Lenders
or (ii) where the failure to obtain such approval or consent would not be
reasonably expected to have a Material Adverse Effect.

4.5.  Governmental
Consents.  The execution, delivery and performance
by the Credit Parties of the Credit Documents to which they are parties and the
consummation of the transactions
contemplated by the Credit Documents do not and will not require any
registration with, consent or approval of, or notice to, or other action to,
with or by, any Governmental Authority except as have been obtained or made and
are in full force and effect and except for 

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filings and recordings
with respect to the Collateral made, or otherwise delivered to Collateral Agent
for filing and/or recordation, as of the Closing Date, except for
registrations, consents, approvals, notices or actions the failure to obtain or
make could not reasonably be expected to have a Material Adverse Effect.

4.6.  Binding
Obligation.  Each Credit Document has been duly
executed and delivered by each Credit Party that is a party thereto and is the
legally valid and binding obligation
of such Credit Party, enforceable against such Credit Party in accordance with
its respective terms, except as may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting creditors’
rights generally or by equitable principles relating to enforceability.

4.7.  Historical
Financial Statements.  The Historical Financial
Statements were prepared in conformity with GAAP and fairly present, in all
material respects, the financial position, on a consolidated
basis, of the Persons described in such financial statements as at the
respective dates thereof and the results of operations and cash flows, on a
consolidated basis, of the entities described therein for each of the periods
then ended, subject, in the case of any such unaudited financial statements, to
the absence of footnotes and changes resulting from audit and normal year-end
adjustments. As of the Closing Date, any contingent liability or liability for
taxes, long-term leases or unusual forward or long-term commitments
of Holdings and its Subsidiaries which in any such case is material in relation
to the business, operations, properties, assets or financial condition of
Holdings and its Subsidiaries taken as a whole has been reflected in the most
recent Historical Financial Statements or the notes thereto to the extent
required by GAAP or otherwise disclosed in a Schedule hereto.

4.8.  Projections.  On
and as of the Closing Date, the Projections of Holdings and its Subsidiaries for
the period Fiscal Year 2005 through and including Fiscal Year 2008 (the “Projections”)
were based on good faith estimates and assumptions made by the management of
Holdings believed to be reasonable at the time made; provided, the
Projections are not to be viewed as facts and that actual results during the
period or periods covered by the Projections may differ from such Projections
and that the differences may be material.

4.9.  No Material
Adverse Change.  Since April 2, 2004, no
event, circumstance or change has occurred that has caused or evidences, either
in any case or in the aggregate,
a Material Adverse Effect.

4.10.  Intentionally
Omitted.

4.11.  Adverse
Proceedings, etc.  There are no Adverse
Proceedings, individually or in the aggregate, that could reasonably be
expected to have a Material Adverse Effect.
Neither Holdings nor any of its Subsidiaries (a) is in violation of any
applicable laws (including 

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Environmental Laws) that,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, or (b) is subject to or in default with respect
to any final judgments, writs, injunctions, decrees, rules or regulations
of any court or other Governmental Authority that, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.

4.12.  Payment of Taxes.  Except
as otherwise permitted under Section 5.3, all federal and other material
tax returns and reports of Holdings and its Subsidiaries required to be filed by any of them have been timely
filed, and all taxes shown on such tax returns to be due and payable and all
assessments, fees and other governmental charges upon Holdings and its
Subsidiaries and upon their respective properties, assets, income, businesses
and franchises which are due and payable have been paid when due and payable. Holdings
knows of no proposed tax assessment against Holdings or any of its Subsidiaries
which is not being actively contested by Holdings or such Subsidiary in good
faith and by appropriate proceedings; provided, such reserves or other
appropriate provisions, if any, as shall be required in conformity with GAAP
shall have been made or provided therefor.

4.13.  Properties.

(a)   Title. Each of Holdings and its
Subsidiaries (i) has good, sufficient and legal title to (in the case of
fee interests in real property) or valid leasehold interests in (in the case of
leasehold interests in real or personal property), and (ii) is the owner
of (in the case of all other personal property), all of their respective properties
and assets reflected in their respective Historical Financial Statements
referred to in Section 4.7 and in the most recent financial statements
delivered pursuant to Section 5.1, in each case except for assets disposed
of since the date of such financial statements in the ordinary course of
business or as otherwise permitted under Section 6.9 and except for such
disposals or defects that neither individually nor in the aggregate could
reasonably be expected to have a Material Adverse Effect. All such properties
and assets are free and clear of Liens, except Permitted Liens.

(b)   Real Estate. Schedule 4.13
contains a true, accurate and complete list of (i) all Real Estate Assets
located within the United States as of the Closing Date, (ii) all Real
Estate Assets with a monthly lease payment of $10,000 or more located outside
of the United States as of November 30, 2004, (iii) all leases,
subleases or assignments of leases (together with all amendments,
modifications, supplements, renewals or extensions of any thereof) affecting
each Real Estate Asset of any Credit Party located in the United States as of
the Closing Date, regardless of whether such Credit Party is the landlord or
tenant (whether directly or as an assignee or successor in interest) under such
lease, sublease or assignment and (iv) all leases, subleases or
assignments of leases (together with all amendments, modifications,
supplements, renewals or extensions of any thereof) with a monthly lease
payment of $10,000 or more affecting each Real Estate Asset of any Credit Party
located outside of the United States as of 

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November 30, 2004, regardless of
whether such Credit Party is the landlord or tenant (whether directly or as an
assignee or successor in interest) under such lease, sublease or assignment. Each
agreement listed in clauses (iii) and (iv) of the immediately
preceding sentence is in full force and effect and Holdings and its
Subsidiaries do not have knowledge of any default that has occurred and is
continuing thereunder, and each such agreement constitutes the legally valid
and binding obligation of each applicable Credit Party, enforceable against
such Credit Party in accordance with its terms, except as enforcement may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
relating to or limiting creditors’ rights generally or by equitable principles.

4.14.  Environmental
Matters.  Except as set forth in Schedule 4.14:
(i) neither Holdings nor any of its Subsidiaries nor any of their
respective Facilities or operations have received a written order, consent
decree or settlement agreement that remains outstanding from any Person
relating to any Environmental Law in effect during the term of this Agreement
or any Environmental Claim that, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect; (ii) to Holdings’
or its Subsidiaries’ knowledge, neither Holdings nor any of its Subsidiaries
has received any letter or request for information under Section 104
of the Comprehensive Environmen­tal Response, Compensation, and Liability Act
(42 U.S.C. § 9604) or any comparable state law; (iii) there are and,
to each of Holdings’ and its Subsidiaries’ knowledge, there have been, no
conditions, occurrences, or Hazardous Materials Activities which could
reasonably be expected to form the basis of an Environmental Claim against
Holdings or any of its Subsidiaries that, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect; (iv) neither
Holdings nor any of its Subsidiaries nor, to any Credit Party’s knowledge, any
predecessor of Holdings or any of its Subsidiaries has operated a facility to
treat Hazardous Materials; (v) none of Holdings’ or any of its
Subsidiaries’ operations involves the generation, transportation, treatment,
storage or disposal of hazardous waste, as defined under 40 C.F.R. Parts 260-270
or any state equivalent, except in compliance in all material respects with
applicable Environmental Laws; (vi) to Holdings’ or its Subsidiaries’
knowledge, compliance with Environmental Laws could not be reasonably expected
to have, individually or in the aggregate, a Material Adverse Effect; (vii) to
Holdings’ or its Subsidiaries’ knowledge, there exists no Release of Hazardous
Materials at any Facility or any Hazardous Materials Activity in violation of
Environmental Laws, which individually or in the aggregate, could reasonably be
expected to have, a Material Adverse Effect.

4.15.  No Defaults.  Neither
Holdings nor any of its Subsidiaries is in default in the performance,
observance or fulfillment of any of the obligations, covenants or conditions contained in any of its
Contractual Obligations, and no condition exists which, with the giving of
notice or the lapse of time or both, could constitute such a default, except
where the consequences, direct or indirect, of such default or defaults, if
any, could not reasonably be expected to have a Material Adverse Effect.

 

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4.16.       Material Contracts. Schedule 4.16
contains a true, correct and complete list of all the Material Contracts in
effect on the Closing Date, and except as described thereon, all such Material Contracts
are in full force and effect and, to the knowledge of Holdings and its
Subsidiaries, no defaults currently exist thereunder.

4.17.       Governmental Regulation. Neither Holdings
nor any of its Subsidiaries is subject to regulation under the Federal Power
Act or the Investment Company Act of 1940 or under any other federal
or state statute or regulation which may limit its ability to incur
Indebtedness. Neither Holdings nor any of its Subsidiaries is a “registered
investment company” or a company “controlled” by a “registered investment
company” or a “principal underwriter” of a “registered investment company” as
such terms are defined in the Investment Company Act of 1940.

4.18.       Margin Stock. Neither Holdings nor any of
its Subsidiaries is engaged principally, or as one of its important activities,
in the business of extending credit for the purpose
of purchasing or carrying any Margin Stock. No part of the proceeds of the
Loans made to such Credit Party will be used to purchase or carry any such
Margin Stock or to extend credit to others for the purpose of purchasing or
carrying any such Margin Stock or for any purpose that violates, or is
inconsistent with, the provisions of Regulation T, U or X of said Board of
Governors.

4.19.       Employee Matters. Neither Holdings nor any
of its Subsidiaries is engaged in any unfair labor practice that could
reasonably be expected to have a Material Adverse
Effect. There is (a) no unfair labor practice complaint pending against
Holdings or any of its Subsidiaries, or to the knowledge of Holdings and
Company, threatened against any of them before the National Labor Relations
Board and no grievance or arbitration proceeding arising out of or under any
collective bargaining agreement that is so pending against Holdings or any of
its Subsidiaries or to the knowledge of Holdings and Company, threatened
against any of them, (b) no strike or work stoppage in existence or
threatened involving Holdings or any of its Subsidiaries, and (c) to the
knowledge of Holdings and Company, no union representation question existing
with respect to the employees of Holdings or any of its Subsidiaries and, to
the knowledge of Holdings and Company, no union organization activity that is
taking place, except (with respect to any matter specified in clause (a), (b) or
(c) above, either individually or in the aggregate) such as is not
reasonably likely to have a Material Adverse Effect.

4.20.       Employee Benefit Plans. Holdings, each of
its Subsidiaries and each of their respective ERISA Affiliates are in
compliance in all material respects with all applicable provisions and
requirements of ERISA and the Internal Revenue Code and the regulations and
published interpretations thereunder with respect to each Employee Benefit
Plan, and have performed all their obligations under each Employee Benefit Plan
in all material respects. Except as set forth on Schedule 4.20, each Employee
Benefit Plan which is intended to qualify

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under Section 401(a) of
the Internal Revenue Code has received a favorable determination letter from
the Internal Revenue Service indicating that such Employee Benefit Plan is so
qualified and nothing has occurred subsequent to the issuance of such
determination letter which would cause such Employee Benefit Plan to lose its
qualified status. No liability to the PBGC (other than required premium payments),
the Internal Revenue Service, any Employee Benefit Plan or any trust
established under Title IV of ERISA has been or is expected to be incurred by
Holdings, any of its Subsidiaries or any of their ERISA Affiliates that, either
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect. No ERISA Event has occurred or is reasonably expected
to occur. Except to the extent required under Section 4980B of the
Internal Revenue Code or similar state laws, no Employee Benefit Plan provides
health or welfare benefits (through the purchase of insurance or otherwise) for
any retired or former employee of Holdings, any of its Subsidiaries or any of
their respective ERISA Affiliates (other than life insurance policies for terminated
employees in the ordinary course of business consistent with past practice). The
present value of the aggregate benefit liabilities under each Pension Plan
sponsored, maintained or contributed to by Holdings, any of its Subsidiaries or
any of their ERISA Affiliates, (determined as of the end of the most recent
plan year on the basis of the actuarial assumptions specified for funding
purposes in the most recent actuarial valuation for such Pension Plan), did not
exceed the aggregate current value of the assets of such Pension Plan in an
amount that could reasonably be expected to have a Material Adverse Effect. As
of the most recent valuation date for each Multiemployer Plan for which the
actuarial report is available, none of Holdings, its Subsidiaries or their
respective ERISA Affiliates would become subject to any material liability
under ERISA if Holdings, its Subsidiaries or any of their respective ERISA
Affiliates were to withdraw completely (within the meaning of Section 4203
of ERISA) from all Multiemployer Plans, based on information available pursuant
to Section 4221(e) of ERISA. Holdings, each of its Subsidiaries and
each of their ERISA Affiliates have complied in all material respects with the
requirements of Section 515 of ERISA with respect to each Multiemployer
Plan and are not in material “default” (as defined in Section 4219(c)(5) of
ERISA) with respect to payments to a Multiemployer Plan.

4.21.       Certain Fees. No broker’s or finder’s fee or
commission will be payable by or on behalf of Sponsor, Holdings or Company with
respect hereto or any of the transactions
contemplated hereby.

4.22.       Solvency. The Credit Parties, taken as a
whole, are and, upon the incurrence of any Obligation by such Credit Parties on
any date on which this representation and
warranty is made, will be, Solvent.

4.23.       Related Agreements.

(a)   Delivery. Holdings and Company have
delivered to Administrative Agent complete and correct copies of (i) each
Related Agreement and of all exhibits and schedules

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thereto as of the Closing Date and (ii) copies
of any material amendment, restatement, supplement or other modification to or
waiver of each Related Agreement entered into after the Closing Date.

(b)   Representations and Warranties. Except
to the extent otherwise expressly set forth in this Agreement or the applicable
Related Agreement or in the schedules to this Agreement or the applicable
Related Agreement, and subject to the qualifications set forth therein, each of
the representations and warranties given by Holdings or Finance Sub in any
Related Agreement is true and correct in all material respects as of the
Closing Date (or as of any earlier date to which such representation and
warranty specifically relates). Notwithstanding anything in the Related
Agreement to the contrary, the representations and warranties of Holdings set
forth in this Section 4.23 shall, solely for purposes hereof, survive the
Closing Date for the benefit of Lenders.

(c)   Governmental Approvals. Except as set
forth on Schedule 4.23, as of the Closing Date, all Governmental Authorizations
and all other authorizations, approvals and consents of any other Person
required by the Related Agreements or to consummate the Acquisition had been
obtained and were in full force and effect.

(d)   Conditions Precedent. On the Closing
Date, (i) all of the conditions to effecting or consummating the
transactions set forth in the Related Agreements have been duly satisfied or,
with the consent of Administrative Agent, waived, and (ii) the
transactions contemplated by Related Agreements have been consummated in
accordance with the Related Agreements and all applicable laws.

4.24.       Compliance with Statutes, etc. Each of
Holdings and its Subsidiaries is in compliance with all applicable statutes,
regulations and orders of, and all applicable restrictions imposed by, all
Governmental Authorities, in respect of the conduct of its business and the
ownership of its property (including compliance with all applicable
Environmental Laws with respect to any Real Estate Asset or governing its
business and the requirements of any permits issued under such Environmental
Laws with respect to any such Real Estate Asset or the operations of Holdings
or any of its Subsidiaries), except such non-compliance that,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

4.25.       Disclosure. No representation or warranty of
any Credit Party contained in any Credit Document or in any other documents,
certificates or written statements furnished
to Lenders by or on behalf of Holdings or any of its Subsidiaries for use in
connection with the transactions contemplated hereby contained (as of the date
such Credit Document or other document, certificate or statement was so
furnished) any untrue statement of a material fact or omitted to state a
material fact (known to Holdings or Company, in the case of any document not
furnished by either of them) necessary in order to make the statements
contained herein or

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therein (taken as a
whole) not misleading in light of the circumstances in which the same were made.
As of the Closing Date, there are no facts known (or which should upon the
reasonable exercise of diligence be known) to Holdings or Company (other than
matters of a general economic nature) that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect and that
have not been disclosed herein or in such other documents, certificates and
statements furnished to Lenders for use in connection with the transactions
contemplated hereby.

4.26.       Patriot
Act. To the extent applicable, each Credit Party is in compliance,
in all material respects, with the (i) Trading with the Enemy Act, as
amended, and each of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle
B, Chapter V, as amended) and any other enabling legislation or executive order
relating thereto, and (ii) Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act
of 2001) (the “Act”). No part of the proceeds of
the Loans will be used, directly or indirectly, for any payments to any
governmental official or employee, political party, official of a political
party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper
advantage, in violation of the United States Foreign Corrupt Practices Act of
1977, as amended.

SECTION 5.  AFFIRMATIVE COVENANTS

Each Credit Party covenants and agrees that so long as any Commitment
is in effect and until payment in full of all Obligations (other than
contingent indemnification Obligations) and cancellation or expiration or
cash-collateralization, in a manner satisfactory to the Administrative Agent,
of all Letters of Credit, each Credit Party shall perform, and shall cause each
of its Subsidiaries to perform, all covenants in this Section 5.

5.1.         Financial Statements and Other Reports. Holdings
will deliver to Administrative Agent, Lead Arrangers and Lenders:

(a)   Monthly Reports. As soon as available,
and in any event within 30 days after the end of each month ending after the
Closing Date, the consolidated balance sheet of Company and its Subsidiaries as
at the end of such month and the related consolidated statements of income,
stockholders’ equity and cash flows of Company and its Subsidiaries for such
month and for the period from the beginning of the then current Fiscal Year to
the end of such month, setting forth in each case in comparative form the
corresponding figures for the corresponding periods of the previous Fiscal Year
and the corresponding figures from the Financial Plan for the current Fiscal
Year, to the extent prepared on a monthly basis, all in reasonable detail,
together with a Financial Officer Certification with respect thereto;

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(b)   Quarterly Financial Statements. As
soon as available, and in any event within 45 days (or such shorter period in
which Holdings or Company shall have filed its Quarterly Report on Form 10-Q)
after the end of each of the first three Fiscal Quarters of each Fiscal Year,
the consolidated and consolidating balance sheets of Company and its
Subsidiaries as at the end of such Fiscal Quarter and the related consolidated
(and with respect to statements of income, consolidating) statements of income,
stockholders’ equity and cash flows of Company and its Subsidiaries for such
Fiscal Quarter and for the period from the beginning of the then current Fiscal
Year to the end of such Fiscal Quarter, setting forth in each case in
comparative form the corresponding figures for the corresponding periods of the
previous Fiscal Year and the correspond­ing figures from the Financial Plan for
the current Fiscal Year, all in reasonable detail, together with a Financial
Officer Certification and a Narrative Report with respect thereto;

(c)   Annual Financial Statements. As soon
as available, and in any event within 90 days (or such shorter period in which
Holdings or Company shall have filed its Annual Report on Form 10-K)
after the end of each Fiscal Year, (i) the consolidated and consolidating
balance sheets of Company and its Subsidiaries as at the end of such Fiscal
Year and the related consolidated (and with respect to statements of income,
consolidating) statements of income, stockholders’ equity and cash flows of
Company and its Subsidiaries for such Fiscal Year, setting forth in each case
in comparative form the corresponding figures for the previous Fiscal Year and
the corresponding figures from the Financial Plan for the Fiscal Year covered
by such financial statements, in reasonable detail, together with a Financial
Officer Certification and a Narrative Report with respect thereto; and (ii) with
respect to such consolidated financial statements a report thereon of Deloitte &
Touche LLP or other independent certified public accountants of recognized
national standing selected by Company, and reasonably satisfactory to
Administrative Agent (which report shall be unqualified as to going concern and
scope of audit, and shall state that such consoli­dated financial statements
fairly present, in all material respects, the consolidated financial position
of Company and its Subsidiaries as at the dates indicated and the results of
their operations and their cash flows for the periods indicat­ed in conformity
with GAAP applied on a basis consistent with prior years (except as otherwise
disclosed in such financial state­ments) and that the examination by such
accountants in connection with such consolidated financial statements has been
made in accordance with generally accepted auditing standards) together with a
written statement by such independent certified public accountants stating (1) that
their audit examination has included a review of the terms of the Credit
Documents, (2) whether, in connection therewith, any condition or event
that constitutes a Default or an Event of Default has come to their attention
and, if such a condition or event has come to their attention, specifying the
nature and period of existence thereof, and (3) that nothing has come to
their attention that causes them to believe that the information contained in
any Compliance Certificate is not correct or that the matters set forth in such
Compliance Certificate are not stated in accordance with the terms hereof;

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(d)   Compliance Certificate. Together with
each delivery of financial statements of Company and its Subsidiaries pursuant
to Sections 5.1(b) and 5.1(c), a duly executed and completed Compliance
Certificate;

(e)   Statements of Reconciliation after Change
in Accounting Principles. If, as a result of any change in accounting
principles and policies from those used in the preparation of the Historical
Financial Statements, the consolidated financial statements of Company and its
Subsidiaries delivered pursuant to Section 5.1(b) or 5.1(c) will
differ in any material respect from the consolidated financial statements that
would have been delivered pursuant to such subdivisions had no such change in
accounting principles and policies been made, then, together with the first
delivery of such financial statements after such change, one or more statements
of reconciliation for the most recent prior financial statements in form and
substance reasonably satisfactory to Administrative Agent;

(f)   Notice of Default. Promptly upon any
senior officer of Holdings or Company obtaining knowledge (i) of any
condition or event that constitutes a Default or an Event of Default or that
notice has been given to Holdings or Company with respect thereto; (ii) that
any Person has given any notice to Holdings or any of its Subsidiaries or taken
any other action with respect to any event or condition set forth in Section 8.1(b);
or (iii) of the occurrence of any event or change that has caused or evidences,
either in any case or in the aggregate, a Material Adverse Effect, a
certificate of its Authorized Officers specifying the nature and period of
existence of such condition, event or change, or specifying the notice given
and action taken by any such Person and the nature of such claimed Event of
Default, Default, default, event or condition, and what action Company has
taken, is taking and proposes to take with respect thereto;

(g)   Notice of Litigation. Promptly upon
any senior officer of Holdings or Company obtaining knowledge of (i) the
institution of, or non-frivolous written threat of, any Adverse
Proceeding not previously disclosed in writing by Company to Lenders, or (ii) any
material development in any Adverse Proceeding that, in the case of either (i) or
(ii) if adversely determined, could be reasonably expected to have a
Material Adverse Effect, or seeks to enjoin or otherwise prevent the consumma­tion
of, or to recover any damages or obtain relief as a result of, the transactions
contemplated hereby, written notice thereof together with such other
information as may be reasonably available to Holdings or Company to enable
Lenders and their counsel to evaluate such matters;

(h)   ERISA. (i) Promptly upon becoming
aware of the occurrence of any ERISA Event, a written notice specifying the
nature thereof, what action Holdings, any of its Subsidiaries or any of their
respective ERISA Affiliates has taken, is taking or proposes to take with
respect thereto and, when known, any action taken or threatened by the Internal
Revenue Service, the Department of Labor or the PBGC with respect thereto; and (ii) with
reasonable

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promptness, copies of (1) each
Schedule B (Actuarial Information) to the annual report (Form 5500
Series) filed by Holdings, any of its Subsidiaries or any of their respective
ERISA Affiliates with the Internal Revenue Service with respect to each Pension
Plan; (2) all notices received by Holdings, any of its Subsidiaries or any
of their respective ERISA Affiliates from a Multiemployer Plan sponsor
concerning an ERISA Event; and (3) copies of such other documents or
governmental reports or filings relating to any Employee Benefit Plan as
Administrative Agent shall reasonably request;

(i)   Financial Plan. As soon as practicable
and in any event no later than thirty days after the beginning of each Fiscal
Year, a consolidated plan and financial forecast for such Fiscal Year and each
Fiscal Year (or portion thereof) through the final maturity date of the Loans
(a “Financial
Plan”),
including (i) a forecasted consolidated balance sheet and forecasted
consolidated statements of income and cash flows of Holdings and its
Subsidiaries for each such Fiscal Year, together with pro forma Compliance
Certificates for each such Fiscal Year and an explanation of the assumptions on
which such forecasts are based, (ii) forecasted consolidated statements of
income and cash flows of Holdings and its Subsidiaries for each month of the
first such Fiscal Year covered in such Financial Plan, (iii) forecasts demonstrating
projected compliance with the requirements of Section 6.8 through the
final maturity date of the Loans and (iv) forecasts demonstrating adequate
liquidity through the final maturity date of the Loans without giving effect to
any additional debt or equity offerings not reflected in the Projections,
together, in each case, with an explanation of the assumptions on which such
forecasts are based all in form and substance reasonably satisfactory to
Agents;

(j)   Insurance Report. As soon as practicable
and in any event by the last day of each Fiscal Year, a report in form and
substance satisfactory to Administrative Agent outlining all material insurance
coverage maintained as of the date of such report by Holdings and its
Subsidiaries and all material insurance coverage planned to be maintained by
Holdings and its Subsidiaries in the immediately succeeding Fiscal Year;

(k)   Notice of Change in Board of Directors.
With reasonable promptness, written notice of any change in the Board of
Directors of Holdings or Company;

(l)   Notice Regarding Material Contracts. Promptly,
and in any event within ten Business Days (i) after any Material Contract
of Holdings or any of its Subsidiaries is terminated or amended in a manner
that could reasonably be expected to have a Material Adverse Effect or (ii) any
new Material Contract is entered into, a written statement describing such
event, with copies of such material amendments or new contracts, delivered to
Administrative Agent (to the extent such delivery is permitted by the terms of
any such Material Contract, provided, no such prohibition on delivery shall be
effective if it were bargained for by Holdings or its applicable Subsidiary
with the intent of avoiding compliance with this Section 5.1(l)), and an
explanation of any actions being taken with respect thereto;

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(m)   Environmental Reports and Audits. As
soon as practicable following receipt thereof, copies of all environmental
audits and reports with respect to environmental matters at any Facility or
which relate to any environmental liabilities of Holdings or its Subsidiaries
which, in any such case, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect;

(n)   Information Regarding Collateral.
(a)  Company will furnish to Collateral Agent prompt written notice of any
change (i) in any Credit Party’s corporate name, (ii) in any Credit
Party’s identity or corporate structure or (iii) in any Credit Party’s
Federal Taxpayer Identification Number. Company agrees not to effect or permit
any change referred to in the preceding sentence unless all filings have been
made under the Uniform Commercial Code or otherwise that are required in order
for Collateral Agent to continue at all times following such change to have a
valid, legal and perfected security interest in all the Collateral as
contemplated in the Collateral Documents. Company also agrees promptly to
notify Collateral Agent if any material portion of the Collateral is damaged or
destroyed;

(o)   Annual Collateral Verification. Each
year, at the time of delivery of annual financial statements with respect to
the preceding Fiscal Year pursuant to Section 5.1(c), Company shall
deliver to Collateral Agent an Officer’s Certificate (i) either confirming
that there has been no change in such information since the date of the
Collateral Questionnaire delivered on the Closing Date or the date of the most
recent certificate delivered pursuant to this Section and/or identifying
such changes and (ii) certifying that all Uniform Commercial Code
financing statements (including fixtures filings, as applicable) or other
appropriate filings, recordings or registrations, have been filed of record in
each governmental, municipal or other appropriate office in each jurisdiction identified
in the Collateral Questionnaire or in the Officer’s Certificate updating such
Collateral Questionnaire pursuant to clause (i) above to the extent
necessary to protect and perfect the security interests under the Collateral
Documents for a period of not less than 18 months after the date of such
certificate (except as noted therein with respect to any continuation
statements to be filed within such period);

(p)   Notices to or from Holders of Subordinated
Indebtedness. Copies of all notices, reports, certificates and other
information furnished to or received from any of the holders of Subordinated
Indebtedness or any other agent or representative of such holders (including
any notices or other documents relating to any default or potential default under
the Senior Subordinated Note Documents, but in any event excluding routine
notices, reports and certificates of an administrative nature), in each case
promptly after the same are so furnished or received; furthermore, on the date
of the occurrence thereof under the Senior Subordinated Note Documents, notice
that any or all of the obligations under the Senior Subordinated Note Documents
have been accelerated; and

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(q)   Other Information. (A) Promptly
upon their becoming available, copies of (i) all financial statements,
reports, notices and proxy statements sent or made available generally by
Holdings to its security holders (acting in such capacity) generally or by any
Subsidiary of Holdings to its security holders other than Holdings or another
Subsidiary of Holdings, (ii) all regular and periodic reports and all
registration statements and prospectuses, if any, filed by Holdings or any of
its Subsidiaries with any securities exchange or with the Securities and
Exchange Commission or any governmental or private regulatory authority, (iii) all
press releases and other statements made available generally by Holdings or any
of its Subsidiaries to the public concerning material developments in the
business of Holdings or any of its Subsidiaries, and (B) such other
information and data with respect to Holdings or any of its Subsidiaries as
from time to time may be reasonably requested by Administrative Agent or any
Lender.

5.2.         Existence. Except as otherwise permitted
under Section 6.9, each Credit Party will, and will cause each of its
Subsidiaries to, at all times preserve and keep in full force and effect (i) its existence and (ii) all
rights and franchises, licenses and permits, except in the case of clause (ii) to
the extent that the failure to do so could not reasonably be expected to have a
Material Adverse Effect; provided, no Credit Party or any of its
Subsidiaries shall be required to preserve any such existence, right,
franchise, license or permit if such Person’s Board of Directors shall
determine that the preservation thereof is no longer desirable in the conduct
of the business of such Person, and that the loss thereof will not materially
and adversely affect such Person or the Lenders.

5.3.         Payment of Taxes and Claims. Each Credit
Party will, and will cause each of its Subsidiaries to, pay all Taxes imposed
upon it or any of its properties or assets or in respect of any of its income,
businesses or franchises before any penalty or fine accrues thereon, and all
liabilities (including claims for labor, services, materials and supplies) for
sums that have become due and payable and that by law have or may become a Lien
upon any of its properties or assets, prior to the time when any penalty or
fine shall be incurred with respect thereto; provided, no such Tax or
claim need be paid if it is being contested in good faith by appropriate
proceedings promptly instituted and diligently conducted, so long as (a) adequate
reserve or other appropriate provision, as shall be required in conformity with
GAAP shall have been made therefor, and (b) in the case of a Tax or claim
which has or may become a Lien against any of the Collateral, such contest
proceedings conclusively operate to stay the sale of any portion of the
Collateral to satisfy such Tax or claim. No Credit Party will, nor will it
permit any of its Subsidiaries to, file or consent to the filing of any
consolidated income tax return with any Person (other than Holdings or any of
its Subsidiaries).

5.4.         Maintenance of Properties. Each Credit
Party will, and will cause each of its Subsidiaries to, maintain or cause to be
maintained in good repair, working order and condition, ordinary wear and
tear excepted, all material properties used or useful in the business of

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Holdings and its
Subsidiaries and from time to time will make or cause to be made all
appropriate repairs, renewals and replacements thereof.

5.5.         Insurance. Holdings will maintain or cause
to be maintained, with financially sound and reputable insurers, such public
liability insurance, third party property damage
insurance, business interruption insurance and casualty insurance with respect
to liabilities, losses or damage in respect of the assets, properties and
businesses of Holdings and its Subsidiaries as may customarily be carried or
maintained under similar circumstances by Persons of established reputation
engaged in similar businesses, in each case in such amounts (giving effect to
self-insurance), with such deductibles, covering such risks and otherwise
on such terms and conditions as shall be customary for such Persons. Without
limiting the generality of the foregoing, Holdings will maintain or cause to be
maintained (a) flood insurance with respect to each Flood Hazard Property
that is located in a community that participates in the National Flood
Insurance Program, in each case in compliance with any applicable regulations
of the Board of Governors of the Federal Reserve System, and (b) replacement
value casualty insurance on the Collateral under such policies of insurance,
with such insurance companies, in such amounts, with such deductibles, and
covering such risks as are at all times carried or maintained under similar
circumstances by Persons of established reputation engaged in similar
businesses. Each such policy of insurance shall (i) name Collateral Agent,
on behalf of Lenders, as an additional insured thereunder as its interests may
appear and (ii) in the case of each casualty insurance policy, contain a
loss payable clause or endorsement, reasonably satisfactory in form and substance
to Collateral Agent, that names Collateral Agent, on behalf of Lenders, as the
loss payee thereunder and provides for at least thirty days’ prior written
notice to Collateral Agent of any modification or cancellation of such policy.

5.6.         Inspections. Each Credit Party will, and
will cause each of its Subsidiaries to, permit any authorized representatives
designated by the Administrative Agent to visit
and inspect any of the properties of any Credit Party and any of its respective
Subsidiaries, to inspect, copy and take extracts from its and their financial
and accounting records, and to discuss its and their affairs, finances and
accounts with its and their officers and independent public accountants, all
upon prior reasonable notice and at such reasonable times during normal
business hours and as often as may reasonably be requested.

5.7.         Lenders Meetings. Holdings and Company
will, upon the request of Administrative Agent or Requisite Lenders,
participate in a meeting of Administrative Agent and Lenders once during each Fiscal Year
to be held at Company’s corporate offices (or at such other location as may be
agreed to by Company and Administrative Agent) at such time as may be agreed to
by Company and Administrative Agent.

5.8.         Compliance with Laws. Each Credit Party
will comply, and shall cause each of its Subsidiaries and all other Persons, if
any, on or occupying any Facilities to comply,
with the

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requirements of all applicable laws, rules,
regulations and orders of any Governmental Authority (including all
Environmental Laws), noncompliance with which could reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect.

 

5.9.         Environmental.

(a)   Environmental Disclosure. Holdings
will deliver to Administrative Agent and Lenders:

(i)   promptly
upon the occurrence thereof, written notice describing in reasonable detail (1) any
Release required to be reported to any federal, state or local governmental or
regulatory agency under any applicable Environmental Laws, (2) any remedial
action taken by Holdings or any other Person in response to (A) any
Hazardous Materials Activities the existence of which could reasonably be
expected to result in one or more Environmental Claims  which, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect, or (B) any
Environmental Claims that, individually or in the aggregate, could reasonably
be expected to result in a Material Adverse Effect;

(ii)   as soon as
practicable following the sending or receipt thereof by Holdings or any of its
Subsidiaries, a copy of any and all written communications with respect to (1) any
Environmental Claims that, individually or in the aggregate, could reasonably
be expected to result in a Material Adverse Effect, (2) any Release
required to be reported to any federal, state or local governmental or
regulatory agency, and (3) any written request for information from any
governmental agency identifying Holdings or any of its Subsidiaries as
potentially responsible for any Hazardous Materials Activity;

(iii)   prompt
written notice describing in reasonable detail (1) any proposed
acquisition of stock, assets, or property by Holdings or any of its
Subsidiaries that could reasonably be expected to (A) expose Holdings or
any of its Subsidiaries to, or result in, Environmental Claims that could
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect or (B) affect the ability of Holdings or any of its
Subsidiaries to maintain in full force and effect all material Governmental
Authorizations required under any Environmental Laws for their respective
operations and (2) any proposed action to be taken by Holdings or any of
its Subsidiaries to modify current operations in a manner that could reasonably
be expected to subject Holdings or any of its Subsidiaries to any additional
obligations or requirements under any Environmental Laws that would be
reasonably expected to have a Material Adverse Effect; and

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(iv)   with
reasonable promptness, such other documents and information as from time to
time may be reasonably requested by Administrative Agent in relation to any
matters disclosed pursuant to this Section 5.9.

(b)   Hazardous Materials Activities, Etc. Each
Credit Party shall promptly take, and shall cause each of its Subsidiaries
promptly to take, any and all actions reasonably necessary to (i) cure any
violation of applicable Environmental Laws by such Credit Party or its
Subsidiaries that could reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect, and (ii) make an appropriate
response to any Environmental Claim against such Credit Party or any of its
Subsidiaries and discharge any obligations it may have to any Person thereunder
where failure to do so could reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect.

5.10.       Subsidiaries. In the event that any Person
becomes a Domestic Subsidiary of Company, Company shall (a) promptly cause
such Domestic Subsidiary to become a
Guarantor hereunder and a Grantor under the Pledge and Security Agreement by
executing and delivering to Administrative Agent and Collateral Agent a
Counterpart Agreement, and (b) take all such actions and execute and
deliver, or cause to be executed and delivered, all such documents,
instruments, agreements, and certificates as are similar to those described in
Sections 3.1(b), 3.1(i), and 3.1(l). In the event that any Person becomes a
Foreign Subsidiary of Company, and the ownership interests of such Foreign
Subsidiary are owned by Company or by any Domestic Subsidiary thereof, Company
shall, or shall cause such Domestic Subsidiary to, deliver all such documents,
instruments, agreements, and certificates as are similar to those described in Section 3.1(b)(i),
(iv) and (v), and Company shall take, or shall cause such Domestic
Subsidiary to take, all of the actions referred to in Section 3.1(i)(i) necessary
to grant and to perfect a First Priority Lien in favor of Collateral Agent, for
the benefit of Secured Parties, under the Pledge and Security Agreement in 65%
of such ownership interests. With respect to each such Subsidiary, Company
shall promptly send to Administrative Agent written notice setting forth with
respect to such Person (i) the date on which such Person became a
Subsidiary of Company, and (ii) all of the data required to be set forth
in Schedules 4.1 and 4.2 with respect to Subsidiaries of Company; provided,
such written notice shall be deemed to supplement Schedules 4.1 and 4.2
for all purposes hereof.

5.11.       Additional Material Real Estate Assets. In
the event that any Credit Party acquires a Material Real Estate Asset, or a
Real Estate Asset owned or leased on the Closing Date becomes a
Material Real Estate Asset, and such interest has not otherwise been made
subject to the Lien of the Collateral Documents in favor of Collateral Agent,
for the benefit of Secured Parties, then such Credit Party, promptly but in any
event not more than 60 days (i) after acquiring such Material Real Estate
Asset (in the case of any Material Real Estate Asset owned by a Credit Party)
or (ii) after request by the Collateral Agent (in the case of any Material
Real Estate Asset leased by a Credit Party), shall take all such actions and
execute and deliver, or

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cause to be executed and
delivered, all such mortgages, documents, instruments, agreements, title
policies, landlord waivers and/or estoppels, reports, opinions and
certificates, which may include items similar to those described in Sections
3.1(i) and 3.1(j), with respect to each such Material Real Estate Asset
that Collateral Agent shall reasonably request to create in favor of Collateral
Agent, for the benefit of Secured Parties, a valid and, subject to any filing
and/or recording referred to herein, perfected First Priority Lien in such
Material Real Estate Assets. In addition to the foregoing, Company shall, at
the request of Requisite Lenders, deliver, from time to time, to Administrative
Agent such appraisals as are required by law or regulation of Real Estate Assets
with respect to which Collateral Agent has been granted a Lien.

5.12.       Interest Rate Protection. No later than 90
days following the Closing Date and at all times thereafter, Company shall
maintain, or caused to be maintained, in effect one or more Interest Rate
Agreements for a term of not less than three years and otherwise in form and
substance reasonably satisfactory to Administrative Agent, which Interest Rate
Agreements shall effectively limit the Unadjusted Eurodollar Rate Component of
the interest costs to Company with respect to an aggregate notional principal
amount of not less than 50% of the aggregate principal amount of Term Loans
outstanding from time to time (based on the assumption that such notional
principal amount was a Eurodollar Rate Loan with an Interest Period of three
months).

5.13.       Further Assurances. At any time or from time
to time upon the request of Administrative Agent, each Credit Party will, at
its expense, promptly execute, acknowledge
and deliver such further documents and do such other acts and things as
Administrative Agent or Collateral Agent may reasonably request in order to
effect fully the purposes of the Credit Documents. In furtherance and not in
limitation of the foregoing, each Credit Party shall take such actions as
Administrative Agent or Collateral Agent may reasonably request from time to
time to ensure that the Obligations are guarantied by the Guarantors and are
secured by substantially all of the assets of Holdings and its Domestic
Subsidiaries and all of the outstanding Capital Stock of Company and its
Domestic Subsidiaries and first-tier Foreign Subsidiaries (subject to
limitations contained in the Credit Documents with respect to Foreign
Subsidiaries).

5.14.       Non-Consolidation. Unless otherwise consented
to by Agents or Requisite Lenders, Holdings will and will cause each of its
Subsidiaries to:  (i)  maintain
entity records and books of account
separate from those of any other entity which is an Affiliate of such entity; (ii) not
commingle its funds or assets with those of any other entity which is an
Affiliate of such entity (except pursuant to cash management systems reasonably
acceptable to the Administrative Agent); and (iii) provide that its Board
of Directors or other analogous governing body will hold all appropriate
meetings to authorize and approve such entity’s actions, which meetings will be
separate from those of other entities.

 

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SECTION 6.  NEGATIVE COVENANTS

Each Credit Party covenants and agrees that, so long as any Commitment
is in effect and until payment in full of all Obligations (other than
contingent indemnification Obligations) and cancellation or expiration or
cash-collateralization, in a manner satisfactory to the Administrative Agent,
of all Letters of Credit, such Credit Party shall perform, and shall cause each
of its Subsidiaries to perform, all covenants in this Section 6.

6.1.   Indebtedness.
No Credit Party shall, nor shall it permit any of its
Subsidiaries to, directly or indirectly, create, incur, assume or guaranty, or
otherwise become or remain directly or
indirectly liable with respect to any Indebtedness, except:

(a)   the Obligations;

(b)   (i) Indebtedness of any Guarantor
Subsidiary to Company or to any other Guarantor Subsidiary, or of Company to
any Guarantor Subsidiary; (ii) Indebtedness of any Subsidiary of Company
that is not a Guarantor to Company or any Subsidiary of Company in an aggregate
principal amount that, together with
Indebtedness under the proviso of Section 6.1(h), does not exceed
$7,500,000 at any time; and (iii) Indebtedness of Company or any Guarantor
Subsidiary to any Subsidiary of Company that is not a Guarantor; provided,
(A) all such Indebtedness under this clause (b) shall be evidenced by
promissory notes and all such notes shall be subject to a First Priority Lien
pursuant to the Pledge and Security Agreement (except to the extent that the
Indebtedness is owed to a Foreign Subsidiary), (B) all such Indebtedness
shall be unsecured and subordinated in right of payment to the payment in full
of the Obligations pursuant to the terms of the applicable promissory notes or
an intercompany subordination agreement that in any such case, is reasonably
satisfactory to Administrative Agent, and (C) any payment by any such
Guarantor Subsidiary under any guaranty of the Obligations shall result in a
pro tanto reduction of the amount of any Indebtedness owed by such Subsidiary
to Company or to any of its Subsidiaries for whose benefit such payment is
made;

(c)   the Senior Subordinated Notes in an aggregate
principal amount not to exceed $320,000,000;

(d)   Indebtedness incurred by Holdings or any of
its Subsidiaries arising from agreements providing for indemnification,
adjustment of purchase price or similar obligations, or from guaranties or
letters of credit, surety bonds or performance bonds securing the performance
of Company or any such Subsidiary pursuant to such agreements, in connection
with Permitted Acquisitions or permitted dispositions of any business, assets
or Subsidiary of Holdings or any of its Subsidiaries;

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(e)   Indebtedness which may be deemed to exist
pursuant to any guaranties, performance, surety, statutory, appeal or similar
obligations incurred in the ordinary course of business;

(f)   Indebtedness in respect of netting services,
overdraft protections and otherwise in connection with deposit accounts;

(g)   guaranties in the ordinary course of business
of the obligations of suppliers, customers, franchisees and licensees of
Holdings and its Subsidiaries;

(h)   guaranties by Company of Indebtedness of a
Subsidiary and guaranties by a Subsidiary of Company of Indebtedness of Company
or a Subsidiary of Company with respect to, in each case, Indebtedness
otherwise permitted to be incurred pursuant to this Section 6.1; provided,
that the aggregate amount of Indebtedness of Subsidiaries of Company that are
not Guarantors which has been guaranteed by Company and the Guarantor
Subsidiaries, together with Indebtedness under
clause (b)(ii), shall not exceed $7,500,000 at any time;

(i)   Existing Indebtedness not refinanced on the
Closing Date;

(j)   Indebtedness with respect to Capital Leases
and purchase money Indebtedness in an aggregate amount not to exceed at any
time $25,000,000; provided, any such Indebtedness (i) shall be
secured only by the asset acquired in connection with the incurrence of such
Indebtedness, and (ii) shall constitute not less than 95% of the aggregate
consideration paid with respect to such asset;

(k)   Indebtedness in an amount not to exceed
$10,000,000 in the aggregate at any time outstanding (i) consisting of
Subordinated Indebtedness issued to a seller in connection with a Permitted
Acquisition or (ii) incurred or assumed by
Company and its Subsidiaries as a result of Permitted Acquisitions (A) that
is unsecured or secured only by collateral consisting of property, plant and
equipment of the acquired business or entity that was provided by such business
or entity prior to the consummation of any such Permitted Acquisition and (B) that
was not incurred in anticipation of any such Permitted Acquisition;

(l)   Indebtedness
under Hedge Agreements required pursuant to, and entered into in accordance
with, Section 5.12 or other Interest Rate Agreements or Currency
Agreements entered into in the ordinary course of business and not for
speculative purposes;

(m)   obligations on account of non-current
accounts payable which the applicable Credit Party is contesting in good faith
and by appropriate proceedings diligently conducted and with respect to which
adequate reserves have been established and are being maintained in accordance
with GAAP;

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(n)   other unsecured Indebtedness of Holdings and
its Subsidiaries, which is subordinated to the Obligations in a manner
satisfactory to Administrative Agent in an aggregate amount not to exceed at
any time $15,000,000;

(o)   Indebtedness incurred by Foreign Subsidiaries
of Company in an aggregate principal amount not exceeding $5,000,000 at any
time; and

(p)   any extensions, renewals, refinancings or
replacements of Indebtedness described in subsection (c)(i), (i), (j) or (l) above,
including renewals and extensions expressly provided for in the agreements
evidencing any such Indebtedness as the same are in effect on the Closing Date;
provided that such extensions, renewals, refinancings and replacements
of any such Indebtedness shall be permitted only so long as the covenants,
events of default, subordination and other provisions thereof (including any
guarantees thereof) are not less favorable to the obligor thereon or to the
Lenders than the Indebtedness being extended, renewed refinanced or replaced,
and the average life to maturity thereof is greater than or equal to that of
the Indebtedness being extended, renewed refinanced or replaced; provided,
further, such Indebtedness permitted under this subsection (p) shall
not (i) include Indebtedness of an obligor that was not an obligor with
respect to the Indebtedness being extended, renewed, refinanced or replaced, (ii) exceed
in principal amount the Indebtedness being renewed, extended, refinanced or
replaced (plus accrued interest thereon and premium, if any) or (iii) be
incurred, created or assumed if any Default or Event of Default has occurred
and is continuing or would result therefrom.

6.2.   Liens. No Credit Party shall, nor shall it permit any of its
Subsidiaries to, directly or indirectly, create, incur, assume or permit to
exist any Lien on or with respect to any
property or asset of any kind (including any document or instrument in respect
of goods or accounts receivable) of Holdings or any of its Subsidiaries,
whether now owned or hereafter acquired, or any income or profits therefrom, or
file or permit the filing of, or permit to remain in effect, any financing
statement or other similar notice of any Lien with respect to any such
property, asset, income or profits under the UCC of any State or under any
similar recording or notice statute, except:

(a)   Liens in favor of Collateral Agent for the
benefit of Secured Parties granted pursuant to any Credit Document;

(b)   Liens for Taxes that are not yet required to
be paid pursuant to Section 5.3;

(c)   statutory Liens of landlords, carriers,
warehousemen, mechanics, repairmen, workmen and materialmen, and other Liens
imposed by law (other than any such Lien imposed pursuant to Section 401(a)(29)
or 412(n) of the Internal Revenue Code or by ERISA), in each case incurred
in the ordinary course of business (i) for amounts not yet overdue or (ii) for

 100
 

 

amounts that are overdue and that (in
the case of any such amounts overdue for a period in excess of fifteen days)
are being contested in good faith by appropriate proceedings, so long as such
reserves or other appropriate provisions, if any, as shall be required by GAAP
shall have been made for any such contested amounts;

(d)   Liens incurred in the ordinary course of
business in connection with workers’ compensation, unemployment insurance and
other types of social security, or to secure the performance of tenders,
statutory obligations, surety and appeal bonds, bids, leases, government
contracts, trade contracts, performance and return-of-money bonds
and other similar obligations (exclusive of obligations for the payment of
borrowed money or other Indebtedness), so long as no foreclosure, sale or
similar proceedings have been commenced with respect to any portion of the
Collateral on account thereof;

(e)   easements, rights-of-way,
restrictions, encroachments, and other minor defects or irregularities in
title, in each case which do not and will not interfere in any material respect
with the ordinary conduct of the business of Holdings or any of its
Subsidiaries;

(f)   any interest or title of a lessor or
sublessor under any lease of real or personal property which is not a Capital
Lease;

(g)   Liens solely on any cash earnest money
deposits made by Holdings or any of its Subsidiaries in connection with any
letter of intent or purchase agreement for a Permitted Acquisition;

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

(i)   Liens in favor of customs and revenue
authorities or freight handlers or forwarders to secure payment of customs
duties in connection with the importation of goods;

(j)   any zoning or similar law or right reserved
to or vested in any Governmental Authority;

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

(l)   Liens described in Schedule 6.2 or on a
title report delivered with respect to any Real Estate Asset subject to a
Mortgage;

 101
 

 

(m)   Liens securing Indebtedness permitted
pursuant to Section 6.1(j); provided, any such Lien shall encumber
only the asset acquired, constructed or improved with the proceeds of such
Indebtedness and substitutions and replacements thereof and accessions and
attachments thereto, and extensions, renewals and replacements of such Liens; provided,
that any extension, renewal or replacement is no more restrictive in any
material respect than the Liens so extended, renewed or replaced and does not
extent to any additional property or assets;

(n)   any
attachment or judgment Lien not constituting an Event of Default under Section 8.1(h);

(o)   customary
security deposits under operating leases in the ordinary course of business;

(p)   customary
rights of set off, bankers’ lien, refund or charge back under deposit
agreements, the Uniform Commercial Code or common law of banks or other financial
institutions where Company or any of its Subsidiaries maintains deposits (other
than deposits intended as cash collateral) in the ordinary course of business;

(q)   any leases
or subleases granted to others in the ordinary course of business of Company
and its Subsidiaries not interfering in any material respect with the business
of Company and its Subsidiaries;

(r)   Liens to
secure Indebtedness permitted by Sections 6.1(i) and 6.1(o);

(s)   Liens in
connection with permitted repurchase obligations;

(t)   Liens upon specific items of inventory or
other goods and proceeds of any Person securing such Person’s obligations in
respect of bankers’ acceptances issued or created for the account of such
Person to facilitate the purchase, shipment or storage of such inventory or
other goods;

(u)   Liens in favor of any Credit Party;

(v)   (i) Liens on property, plant and equipment of a Person existing at the time such
Person is merged with or into or consolidated with Holdings or a Subsidiary
thereof; provided, that such Liens were in existence prior to and were
not incurred in connection with or in contemplation of such merger or
consolidation and do not extend to any assets other than those of the Person
merged into or consolidated with Holdings or such Subsidiary and (ii) extensions,
renewals and replacements of any Liens set forth in clause (i) of this
subsection (v); provided, that any such extension, renewal or
replacement is no more restrictive in any material 

 102
 

 

respect than the Lien so extended,
renewed or replaced and does not extend to any additional property or assets;

(w)   (i) Liens on property, plant and equipment existing at the time of acquisition
thereof by Holdings or any Subsidiary of Holdings, provided, that such
Liens were in existence prior to such acquisition and not incurred in
contemplation of such acquisition and (ii) extensions, renewals and
replacements of any Liens set forth in clause (i) of this subsection (w); provided,
that any such extension, renewal or replacement is no more restrictive in any
material respect than the Lien so extended, renewed or replaced and does not
extend to any additional property or assets; and

(x)   other Liens on assets other than the
Collateral securing Indebtedness in an aggregate amount not to exceed $1,000,000
at any time outstanding.

6.3.   Equitable Lien. If any Credit Party or any of its
Subsidiaries shall create or assume any Lien upon any of its properties or
assets, whether now owned or hereafter acquired,
other than Permitted Liens, it shall make or cause to be made effective
provisions whereby the Obligations will be secured by such Lien equally and
ratably with any and all other Indebtedness secured thereby as long as any such
Indebtedness shall be so secured; provided, notwithstanding the foregoing,
this covenant shall not be construed as a consent by Requisite Lenders to the
creation or assumption of any such Lien not otherwise permitted hereby.

6.4.   No Further Negative Pledges. Except with respect to (a) specific
property encumbered to secure payment of particular Indebtedness or to be sold
pursuant to an executed
agreement with respect to a permitted sale or other disposition of assets or
property, (b) the Senior Subordinated Note Documents as in effect on the
Closing Date, and (c) restrictions by reason of customary provisions
restricting assignments, subletting or other transfers contained in leases,
licenses and similar agreements entered into in the ordinary course of business
(provided that such restrictions are limited to the property or assets secured
by such Liens or the property or assets subject to such leases, licenses or
similar agreements, as the case may be), no Credit Party nor any of its
Subsidiaries shall enter into any agreement prohibiting the creation or
assumption of any Lien upon any of its properties or assets, whether now owned
or hereafter acquired.

6.5.   Restricted Junior Payments. No Credit Party shall, nor shall
it permit any of its Subsidiaries or Affiliates through any manner or means or
through any other Person to,
directly or indirectly, declare, order, pay, make or set apart, or agree to
declare, order, pay, make or set apart, any sum for any Restricted Junior
Payment except that:

(a)   Company may make regularly scheduled payments
of interest in respect of the Senior Subordinated Notes and any other
Subordinated Indebtedness in accordance with the 

 103
 

 

terms of, and only to the extent
required by, and subject to the subordination provisions contained in, the
indenture or other agreement pursuant to which such Subordinated Indebtedness
was issued;

(b)   so long as no Default or Event of Default
shall have occurred and be continuing or shall be caused thereby, Company may
make Restricted Junior Payments to Holdings (i) in an aggregate amount not
to exceed $750,000 in any Fiscal Year, to the extent necessary to permit
Holdings or its parent entity to pay general administrative costs and expenses
and out-of-pocket legal, accounting and filing and other general corporate
overhead costs of Holdings or its parent entity actually incurred by Holdings
or its parent entity and (ii) to the extent necessary to permit Holdings
to discharge the consolidated tax liabilities of Holdings and its Subsidiaries
and to pay franchise taxes and other fees required to maintain its existence,
in each case so long as Holdings applies the amount of any such Restricted
Junior Payment for such purpose;

(c)   Subsidiaries
of Company may make Restricted Junior Payments (i) to Company or to any
parent entity of such Subsidiary which is a Subsidiary and (ii) on a pro
rata basis to the other equity holders of such Subsidiary;

(d)   so
long as no Default or Event of Default shall have occurred and be continuing or
shall be caused thereby, the Company may repurchase, redeem or otherwise
acquire or retire for value any Capital Stock of the Company or any of its
Subsidiaries held by any current or former officer, director, consultant or
employee of the Company or any of its Subsidiaries, or his or her estate,
spouse, former spouse, or family member (or pay principal or interest on any
Indebtedness issued in connection with such repurchase, redemption or other
acquisition) and may make Restricted Junior Payments to Holdings utilized for
the repurchase, redemption or other acquisition or retirement for value of any
Capital Stock of Holdings held by any current or former officer, director,
employee or consultant of the Company or any of its Subsidiaries, or his or her
estate, spouse, former spouse, or family member (or for the payment of
principal or interest on any Indebtedness issued in connection with such
repurchase, redemption or other acquisition) in each case, pursuant to
any equity subscription agreement, stock option agreement, shareholders’
agreement or similar agreement or benefit plan of any kind; provided that
the aggregate price paid for all such repurchased, redeemed, acquired or
retired Equity Interests may not exceed $1,000,000 in any calendar
year period (with unused amounts in any immediately preceding calendar year
being carried over to the succeeding calendar year subject to a maximum
carry-over amount of $2,000,000 in any calendar year); provided further, that
such amount in any calendar year may be increased by an amount not to exceed:

(i)   to the extent of any such proceeds
that are not required to be applied to prepay Loans in accordance with Section 2.14,
the cash proceeds from the sale of Capital Stock of Company and, to the
extent contributed to Company as common equity 

 104
 

 

capital, Capital Stock of any of Company’s direct
or indirect parent entities, in each case to members of management, directors
or consultants of Company, any of its Subsidiaries or any of its direct or
indirect parent entities that occurs after the Closing Date, plus

(ii)   the cash proceeds of key person life
insurance policies received by Company and its Subsidiaries after the Closing
Date, less

(iii)   the amount of any payments previously made
pursuant to clauses (i) and (ii) of this clause (d);

(e)   Company and its Subsidiaries may redeem or
repurchase Capital Stock in exchange for Capital Stock or with the proceeds of
a substantially contemporaneous sale of Capital Stock, or a substantially
contemporaneous receipt of a capital contribution, to the extent of any such
proceeds that are not required to be applied to prepay Loans in accordance with
Section 2.14;

(f)   Company and its Subsidiaries may repay,
repurchase, redeem or otherwise acquire for value any Subordinated Indebtedness
with the proceeds of Indebtedness permitted by Section 6.1(n) or (p) or
with the proceeds of a substantially contemporaneous sale of Capital Stock, or
a substantially contemporaneous receipt of a capital contribution, to the
extent of any such proceeds that are not required to be applied to prepay Loans
in accordance with Section 2.14;

(g)   Company and its Subsidiaries may repurchase
Capital Stock which repurchase is deemed to occur upon any “cashless” exercise
of stock options, warrants or other convertible securities;

(h)   the redemption, repurchase or other
acquisition for value of any Capital Stock of any Foreign Subsidiary that is
held by any Person that is not an Affiliate of Company to the extent required
by applicable laws, rules or regulations; provided that the amount of any
such redemptions, repurchases or other acquisitions shall not exceed $5,000,000
during the term of this Agreement; and

(i)   so long as no Default or Event of Default
shall have occurred and be continuing or shall be caused thereby, Holdings may
declare and pay dividends to the holders of its Capital Stock and repurchase,
redeem or otherwise acquire for value any Capital Stock of Holdings
(collectively, “share repurchases”), and Company may pay dividends to Holdings
for such purpose, if after giving effect to such dividend or share repurchase,
the aggregate amount of such dividends and share repurchases during the term of
this Agreement does not exceed (i) $10,000,000 plus (ii) so long as
the Leverage Ratio is less than 3.25:1.00 on a pro forma basis after giving
effect to such dividend or share repurchase, 25% of the Consolidated Excess
Cash 

 105
 

 

Flow for each Fiscal Year of Company
ended prior to the date of such dividend or share repurchase on a cumulative
basis (commencing with the Fiscal Year ended March 31, 2006).

6.6.   Restrictions on Subsidiary Distributions. Except as provided
herein, no Credit Party shall, nor shall it permit any of its Subsidiaries to,
create or otherwise cause or suffer
to exist or become effective any consensual encumbrance or restriction of any kind
on the ability of any Subsidiary of Company to (a) pay dividends or make
any other distributions on any of such Subsidiary’s Capital Stock owned by
Company or any other Subsidiary of Company, (b) repay or prepay any
Indebtedness owed by such Subsidiary to Company or any other Subsidiary of
Company, (c) make loans or advances to Company or any other Subsidiary of
Company, or (d) transfer any of its property or assets to Company or any
other Subsidiary of Company other than restrictions (i) existing under
this Agreement, (ii) in the Senior Subordinated Note Documents as in
effect on the Closing Date or as modified in accordance with this Agreement, (iii) in
agreements evidencing Indebtedness permitted by Section 6.1(j) that
impose restrictions on the property so acquired, (iv) by reason of
customary provisions restricting assignments, subletting or other transfers
contained in leases, licenses, joint venture agreements and similar agreements
otherwise permitted hereunder, (v) arising under applicable laws, rules,
regulations or orders, (vi) that are or were created by virtue of any
transfer of, agreement to transfer or option or right with respect to any
property, assets or Capital Stock not otherwise prohibited under this
Agreement, (vii) any instrument governing Indebtedness or Capital Stock of
a Person acquired by Company and its Subsidiaries as in effect at the time of
such acquisition (except to the extent such Indebtedness or Capital Stock was
incurred or issued in connection with or in contemplation of such acquisition),
which encumbrance or restriction is not applicable to any Person, or the
properties or assets of any Person, other than the Person or 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, (viii) in
agreements set forth on Schedule 6.6, (ix) provisions in agreements or
instruments that prohibit the payment of dividends or the making of other
distributions with respect to Capital Stock other than on a pro rata basis and (x) imposed
by any amendments, modifications restatements, renewals, increases,
supplements, refundings, replacements or refinancings of the contracts,
instruments or obligations referred to in clauses (i) through (ix) above;
provided that the encumbrances or
restrictions in such amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings are not
materially more restrictive, in the good faith judgment of the Board of
Directors of Holdings, taken as a whole, than the encumbrances or restrictions
prior to such amendment, modification, restatement, renewal, increase,
supplement, refunding, replacement or refinancing.

6.7.   Investments. No Credit Party shall, nor shall it permit any
of its Subsidiaries to, directly or indirectly, make or own any Investment in
any Person, including without limitation
any Joint Venture, except:

 106
 

 

(a)   Investments in Cash and Cash Equivalents;

(b)   (i) Investments owned as of the Closing
Date in any Subsidiary; (ii) Investments made after the Closing Date in
any Guarantor Subsidiary; and (iii) Investments made after the Closing
Date in any Subsidiary of Company that is not a Guarantor in an aggregate
amount, together with any sales, leases, licenses and other dispositions of
assets permitted under Section 6.9(b), not to exceed $7,500,000 at any
time;

(c)   Investments (i) received in satisfaction
or partial satisfaction of delinquent accounts and disputes with customers or
suppliers of such Person in the ordinary course of business; (ii) acquired
as a result of foreclosure of a Lien securing an Investment or the transfer of
the assets subject to such Lien in lieu of foreclosure and (iii) consisting
of deposits, prepayments and other credits to suppliers made in the ordinary
course of business consistent with the past practices of Holdings and its
Subsidiaries;

(d)   intercompany loans to the extent permitted
under Section 6.1(b);

(e)   Consolidated Capital Expenditures permitted
by Section 6.8(c);

(f)   loans and advances to employees of Holdings
and its Subsidiaries made in the ordinary course of business in an aggregate
principal amount not to exceed $1,000,000 in the aggregate at any time; and
payroll, travel and similar advances to employees to cover matters that are
expected at the time of such advances ultimately to be treated as expenses for
accounting purposes and that are made in the ordinary course of business;

(g)   Investments made in connection with Permitted
Acquisitions permitted pursuant to Section 6.9;

(h)   Investments described in Schedule 6.7;

(i)   extensions of credit to customers or
advances, deposits and payment to or with suppliers, lessors or utilities or
for workers’ compensation, in each case, in the ordinary course of business
that are recorded as accounts receivable, prepaid expenses or deposits on the
balance sheet of the Company and its Subsidiaries prepared in accordance with
GAAP;

(j)   Investments
constituting non-Cash consideration received by Company or any of its
Subsidiaries in connection with permitted Asset Sales and other sales and
dispositions permitted under Section 6.9;

(k)   Investments
under Hedge Agreements to the extent permitted under Section 6.1;

 107
 

 

(l)   Investments
consisting of loans by Company to Holdings for purposes otherwise permitted
under Section 6.5 to be distributed to Holdings;

(m)   Investments
in joint ventures having an aggregate value (measured on the date each such
Investment was made and without giving effect to subsequent changes in value),
when taken together with all other Investments made pursuant to this clause (m) since
the Closing Date, not to exceed $20,000,000; provided that the Capital
Stock of any joint venture created or acquired after the Closing Date owned by
the Company or any of its Subsidiaries shall be pledged to the Collateral
Agent; and

(n)   other Investments in an aggregate amount not
to exceed at any time $5,000,000.

Notwithstanding the foregoing, in no
event shall any Credit Party make any Investment which results in or
facilitates in any manner any Restricted Junior Payment not otherwise permitted
under the terms of Section 6.5.

6.8.   Financial Covenants.

(a)   Interest Coverage Ratio. Company shall
not permit the Interest Coverage Ratio as of the last day of any Fiscal
Quarter, beginning with the first Fiscal Quarter of the Fiscal Year ending in
2006 (“FQ1 2006”), to be less than the correlative
ratio indicated:  

	
  Fiscal

  Quarter

  	
   

  	
  Interest

  Coverage Ratio

  	
   

  
	
  FQ1 2006

  	
   

  	
  2.00:1.00

  	
   

  
	
  FQ2 2006

  	
   

  	
  2.00:1.00

  	
   

  
	
  FQ3 2006

  	
   

  	
  2.00:1.00

  	
   

  
	
  FQ4 2006

  	
   

  	
  2.00:1.00

  	
   

  
	
  FQ1 2007

  	
   

  	
  2.05:1.00

  	
   

  
	
  FQ2 2007

  	
   

  	
  2.10:1.00

  	
   

  
	
  FQ3 2007

  	
   

  	
  2.20:1.00

  	
   

  
	
  FQ4 2007

  	
   

  	
  2.30:1.00

  	
   

  
	
  FQ1 2008

  	
   

  	
  2.50:1.00

  	
   

  
	
  FQ2 2008

  	
   

  	
  2.50:1.00

  	
   

  
	
  FQ3 2008

  	
   

  	
  2.50:1.00

  	
   

  

 

 108
 

 

 

	
  Fiscal

  Quarter

  	
   

  	
  Interest

  Coverage Ratio

  	
   

  
	
  FQ4 2008

  	
   

  	
  2.50:1.00

  	
   

  
	
  FQ1 2009

  	
   

  	
  2.75:1.00

  	
   

  
	
  FQ2 2009

  	
   

  	
  2.75:1.00

  	
   

  
	
  FQ3 2009

  	
   

  	
  2.75:1.00

  	
   

  
	
  FQ4 2009

  	
   

  	
  2.75:1.00

  	
   

  
	
  FQ1 2010

  	
   

  	
  3.00:1.00

  	
   

  
	
  FQ2 2010

  	
   

  	
  3.00:1.00

  	
   

  
	
  FQ3 2010

  	
   

  	
  3.00:1.00

  	
   

  
	
  FQ4 2010

  	
   

  	
  3.00:1.00

  	
   

  
	
  FQ1 2011

  	
   

  	
  3.20:1.00

  	
   

  
	
  FQ2 2011

  	
   

  	
  3.20:1.00

  	
   

  
	
  FQ3 2011 and thereafter

  	
   

  	
  3.20:1.00

  	
   

  

 

(b)   Leverage Ratio. Company shall not
permit the Leverage Ratio as of the last day of any Fiscal Quarter, beginning
with the first Fiscal Quarter of the Fiscal Year ending in 2006 (“FQ1 2006”), to exceed the correlative ratio
indicated:

	
  Fiscal

  Quarter

  	
   

  	
  Leverage Ratio

  	
   

  
	
  FQ1 2006

  	
   

  	
  6.00:1.00

  	
   

  
	
  FQ2 2006

  	
   

  	
  6.00:1.00

  	
   

  
	
  FQ3 2006

  	
   

  	
  6.00:1.00

  	
   

  
	
  FQ4 2006

  	
   

  	
  6.00:1.00

  	
   

  
	
  FQ1 2007

  	
   

  	
  5.75:1.00

  	
   

  
	
  FQ2 2007

  	
   

  	
  5.50:1.00

  	
   

  
	
  FQ3 2007

  	
   

  	
  5.25:1.00

  	
   

  
	
  FQ4 2007

  	
   

  	
  5.00:1.00

  	
   

  
	
  FQ1 2008

  	
   

  	
  4.50:1.00

  	
   

  

 

 109
 

 

 

	
  Fiscal

  Quarter

  	
   

  	
  Leverage Ratio

  	
   

  
	
  FQ2 2008

  	
   

  	
  4.50:1.00

  	
   

  
	
  FQ3 2008

  	
   

  	
  4.50:1.00

  	
   

  
	
  FQ4 2008

  	
   

  	
  4.50:1.00

  	
   

  
	
  FQ1 2009

  	
   

  	
  4.00:1.00

  	
   

  
	
  FQ2 2009

  	
   

  	
  4.00:1.00

  	
   

  
	
  FQ3 2009

  	
   

  	
  4.00:1.00

  	
   

  
	
  FQ4 2009

  	
   

  	
  4.00:1.00

  	
   

  
	
  FQ1 2010

  	
   

  	
  3.50:1.00

  	
   

  
	
  FQ2 2010

  	
   

  	
  3.50:1.00

  	
   

  
	
  FQ3 2010

  	
   

  	
  3.50:1.00

  	
   

  
	
  FQ4 2010

  	
   

  	
  3.50:1.00

  	
   

  
	
  FQ1 2011

  	
   

  	
  3.00:1.00

  	
   

  
	
  FQ2 2011

  	
   

  	
  3.00:1.00

  	
   

  
	
  FQ3 2011 and thereafter

  	
   

  	
  3.00:1.00

  	
   

  

 

(c)   Maximum
Consolidated Capital Expenditures. Holdings shall not, and shall not permit
its Subsidiaries to, make or incur Consolidated Capital Expenditures, in any
Fiscal Year indicated below, in an aggregate amount for Holdings and its
Subsidiaries in excess of the corresponding amount set forth below opposite
such Fiscal Year:

	
  Fiscal Year

  	
   

  	
  Consolidated

   Capital Expenditures

  	
   

  
	
  2006

  	
   

  	
  $

  	
  8,000,000

  	
   

  
	
  2007

  	
   

  	
  $

  	
  8,000,000

  	
   

  
	
  2008

  	
   

  	
  $

  	
  8,000,000

  	
   

  
	
  2009

  	
   

  	
  $

  	
  8,000,000

  	
   

  
	
  2010

  	
   

  	
  $

  	
  8,000,000

  	
   

  
	
  2011

  	
   

  	
  $

  	
  8,000,000

  	
   

  

 

 110
 

 

(d)   Certain Calculations. With respect to
any period during which a Permitted Acquisition or an Asset Sale has occurred
(each, a “Subject Transaction”), for purposes of determining compliance with the
financial covenants set forth in this Section 6.8 (but not for purposes of
determining the Applicable Margin or Applicable Commitment Fee Percentage),
Consolidated Adjusted EBITDA shall be calculated with respect to such period on
a pro forma basis (including pro forma adjustments arising out of events which
are directly attributable to a specific transaction, are factually supportable
and are expected to have a continuing impact, in each case determined in good
faith on a basis consistent with Article 11 of Regulation S-X
promulgated under the Securities Act and as interpreted by the staff of the
Securities and Exchange Commission, which would include cost savings resulting
from head count reduction, closure of facilities and similar restructuring
charges, which pro forma adjustments shall be certified by the chief financial
officer of Holdings) using the historical audited financial statements of any
business so acquired or to be acquired or sold or to be sold and the
consolidated financial statements of Holdings and its Subsidiaries which shall
be reformulated as if such Subject Transaction, and any Indebtedness incurred
or repaid in connection therewith, had been consum­mated or incurred or repaid
at the beginning of such period (and assuming that such Indebtedness bears
interest during any portion of the applicable measurement period prior to the
relevant acquisition at the weighted average of the interest rates applicable
to outstanding Loans incurred during such period).

6.9.   Fundamental Changes;
Disposition of Assets; Acquisitions. No Credit Party shall,
nor shall it permit any of its Subsidiaries to, enter into any transaction of
merger or consolidation,
or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution),
or convey, sell, lease or sub-lease (as lessor or sublessor), exchange,
transfer or otherwise dispose of, in one transaction or a series of
transactions, all or any part of its business, assets or property of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible,
whether now owned or hereafter acquired, or acquire by purchase or otherwise
(other than purchases or other acquisitions of inventory, supplies,
intellectual property, materials and equipment and Capital Expenditures in the
ordinary course of business) the business, all or substantially all of the
property or fixed assets of, or stock or other evidence of beneficial ownership
of, any Person or any division or line of business or other business unit of any
Person, except:

(a)   any Subsidiary of Company may be merged with
or into Company or any Guarantor Subsidiary, or be liquidated, wound up or
dissolved, or all or any part of its business, property or assets may be
conveyed, sold, leased, transferred or otherwise disposed of, in one
transaction or a series of transactions, to Company or any Guarantor
Subsidiary; provided, in the case of such a merger, Company or such
Guarantor Subsidiary, as applicable shall be the continuing or surviving
Person; and any Subsidiary of Company which is not a Guarantor Subsidiary may
be merged with or into any other Subsidiary which is not a Guarantor 

 

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Subsidiary, or be liquidated, wound
up or dissolved, or all or any part of its business, property or assets may be
conveyed, sold, leased, transferred or otherwise disposed of, in one
transaction or a series of transactions to any Subsidiary which is not a
Guarantor Subsidiary;

(b)   sales, leases, licenses or other dispositions
of assets that do not constitute Asset Sales; provided, that the fair
market value of assets sold, leased, licensed, or otherwise disposed of to
Subsidiaries of Company that are not Guarantors, together with any Investments
permitted under Section 6.7(b)(iii), shall not exceed $7,500,000 in any
Fiscal Year;

(c)   Asset Sales, the proceeds of which (valued at
the principal amount thereof in the case of non-Cash proceeds consisting
of notes or other debt Securities and valued at fair market value in the case
of other non-Cash proceeds) (i) are less than $1,000,000 with
respect to any single Asset Sale or series of related Asset Sales and (ii) when
aggregated with the proceeds of all other Asset Sales made within the same
Fiscal Year, are less than $2,000,000; provided (1) the
consideration received for such assets shall be in an amount at least equal to
the fair market value thereof (determined in good faith by the Board of
Directors of Company), (2) no less than 75% thereof shall be paid in Cash,
and (3) the Net Asset Sale Proceeds thereof shall be applied as required
by Section 2.14(a);

(d)   Permitted Acquisitions, the consideration for
which constitutes less than $50,000,000 in the aggregate from the Closing Date
to the date of determination;

(e)   Investments made in accordance with Section 6.7;

(f) 
 the lapse of registered intellectual
property of Company or any of its Subsidiaries that is no longer useful and the
lapse of which could not reasonably be expected to result in a Material Adverse
Effect;

(g)   the settlement or write-off of accounts receivable
or sale of overdue accounts receivable for collection in the ordinary course of
business consistent with past practice; and

(h)   the termination, surrender or sublease of a
real estate lease of Company or any of its Subsidiaries in the ordinary course
of business.

6.10.   Disposal of
Subsidiary Interests. Except for any sale of all of its
interests in the Capital Stock of any of its Subsidiaries in compliance with
the provisions of Section 6.9,
no Credit Party shall, nor shall it permit any of its Subsidiaries to, (a) directly
or indirectly sell, assign, pledge or otherwise encumber or dispose of any
Capital Stock of any of its Subsidiaries, except to qualify directors if
required by applicable law; or (b) permit any of its Subsidiaries directly
or indirectly to sell, assign, pledge or otherwise encumber or dispose of any
Capital 

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Stock of any of its
Subsidiaries, except to another Credit Party (subject to the restrictions on
such disposition otherwise imposed hereunder), or to qualify directors if required
by applicable law.

6.11.   Sales and Lease-Backs.
No Credit Party shall, nor shall it permit any of its
Subsidiaries to, directly or indirectly, become or remain liable as lessee or
as a guarantor or other surety
with respect to any lease of any property (whether real, personal or mixed),
whether now owned or hereafter acquired, which such Credit Party (a) has
sold or transferred or is to sell or to transfer to any other Person (other
than Holdings or any of its Subsidiaries), or (b) intends to use for substantially
the same purpose as any other property which has been or is to be sold or
transferred by such Credit Party to any Person (other than Holdings or any of
its Subsidiaries) in connection with such lease.

6.12.   Transactions with
Shareholders and Affiliates. No Credit Party shall, nor shall
it permit any of its Subsidiaries to, directly or indirectly, enter into or
permit to exist any
transaction (including the purchase, sale, lease or exchange of any property or
the rendering of any service) with any Affiliate of Holdings, on terms that are
less favorable to Holdings or that Subsidiary, as the case may be, than those
that might be obtained at the time from a Person who is not an Affiliate; provided,
the foregoing restriction shall not apply to (a) any transaction (i) between
Company and any Guarantor Subsidiary, (ii) between two or more Guarantor
Subsidiaries and (iii) between two or more Subsidiaries that are not
Guarantors; (b) reasonable and customary fees paid to and indemnification
arrangements entered into with members of the Board of Directors (or similar
governing body) of Holdings and its Subsidiaries; (c) (i) so long as
no Default or Event of Default has occurred and is continuing, payment of
management fees to Sponsor and its Affiliates in an amount not to exceed
$300,000 per Fiscal Year, which amount may be increased by an amount equal to
$300,000 per Fiscal Year for each Permitted Acquisition consummated during such
Fiscal Year, subject to a maximum aggregate amount of management fees of
$2,000,000 in any twelve-month period and (ii) reimbursement of reasonable
expenses actually incurred by Sponsor and its Affiliates; (d) transactions
described in Schedule 6.12; (e) any transactions contemplated by and effected
in connection with the transactions contemplated hereby, including the payment
of fees and expenses related thereto; and (f) any transaction otherwise
permitted by Section 6.1, 6.2, 6.5, 6.7 or 6.9.

6.13.   Conduct of Business. From
and after the Closing Date, no Credit Party shall, nor shall it permit any of
its Subsidiaries to, engage in any business other than (i) the businesses engaged in by such Credit
Party on the Closing Date and similar or related businesses and (ii) such
other lines of business as may be consented to by Requisite Lenders.

6.14.   Permitted Activities
of Holdings. Holdings shall not (a) incur, directly or
indirectly, any Indebtedness or any other obligation or liability whatsoever
other than the Indebtedness
and obligations under the Credit Documents and the Related Agreements; (b) create
or suffer to exist any Lien upon any property or assets now owned or hereafter
acquired by 

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it other than the Liens
created under the Collateral Documents to which it is a party or permitted
pursuant to Section 6.2; (c) engage in any business or activity or
own any assets other than (i) holding 100% of the Capital Stock of
Company, (ii) performing its obligations and activities incidental thereto
under the Credit Documents, and to the extent not inconsistent therewith, the
Related Agreements; and (iii) making Restricted Junior Payments and
Investments to the extent permitted by this Agreement; (d) consolidate
with or merge with or into, or convey, transfer or lease all or substantially
all its assets to, any Person; (e) sell or otherwise dispose of any
Capital Stock of any of its Subsidiaries except as permitted under Section 6.9
and 6.10; (f) create or acquire any Subsidiary or make or own any
Investment in any Person other than Company; or (g) fail to hold itself
out to the public as a legal entity separate and distinct from all other
Persons.

6.15.   Amendments or Waivers
of Purchase Agreement and Organizational Documents. No Credit
Party shall, nor shall it permit any of its Subsidiaries to, agree to any amendment, restatement,
supplement or other modification to, or waiver of, any of its material rights
under the Purchase Agreement or the terms of any of its Organizational
Documents after the Closing Date if the effect of such amendment, restatement,
supplement, modification or waiver would be adverse to any Credit Party or
Lenders, without in each case obtaining the prior written consent of Requisite
Lenders to such amendment, restatement, supplement or other modification or
waiver.

6.16.   Amendments or Waivers
with respect to Subordinated Indebtedness. No Credit Party
shall, nor shall it permit any of its Subsidiaries to, amend or otherwise
change the terms of any
Subordinated Indebtedness, or make any payment consistent with an amendment
thereof or change thereto, if the effect of such amendment or change is to
increase the interest rate on such Subordinated Indebtedness, change (to
earlier dates) any dates upon which payments of principal or interest are due
thereon, change any event of default or condition to an event of default with
respect thereto (other than to eliminate any such event of default or increase
any grace period related thereto), change the redemption, prepayment or
defeasance provisions thereof, change the subordination provisions of such
Subordinated Indebtedness (or of any guaranty thereof), or if the effect of
such amendment or change, together with all other amendments or changes made,
is to increase materially the obligations of the obligor thereunder or to
confer any additional rights on the holders of such Subordinated Indebtedness
(or a trustee or other representative on their behalf) which would be adverse
to any Credit Party or Lenders.

6.17.   Fiscal Year. No
Credit Party shall, nor shall it permit any of its Subsidiaries to change its
Fiscal Year-end from the Friday closest to March 31.

6.18.   Designated Senior Debt. The Company shall
not designate any Indebtedness other than Indebtedness under this Agreement and
the other Credit Documents as “Designated
Senior Debt” under the Senior Subordinated Note Agreement without the prior
written consent of the Requisite Lenders.

 

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SECTION 7.  GUARANTY

7.1.   Guaranty of the
Obligations. Subject to the provisions of Section 7.2,
Guarantors jointly and severally hereby irrevocably and unconditionally
guaranty to Administrative
Agent for the ratable benefit of the Beneficiaries the due and punctual payment
in full of all Obligations when the same shall become due, whether at stated
maturity, by required prepayment, declaration, acceleration, demand or
otherwise (including amounts that would become due but for the operation of the
automatic stay under Section 362(a) of the Bankruptcy Code,
11 U.S.C. § 362(a)) (collectively, the “Guaranteed
Obligations”).

7.2.   Contribution by
Guarantors. All Guarantors desire to allocate among
themselves (collectively, the “Contributing Guarantors”),
in a fair and equitable manner, their obligations arising under this
Guaranty. Accordingly, in the event any payment or distribution is made on any
date by a Guarantor (a “Funding Guarantor”)
under this Guaranty such that its Aggregate Payments exceeds its Fair Share as
of such date, such Funding Guarantor shall be entitled to a contribution from
each of the other Contributing Guarantors in an amount sufficient to cause each
Contributing Guarantor’s Aggregate Payments to equal its Fair Share as of such
date. “Fair Share” means, with respect to a
Contributing Guarantor as of any date of determination, an amount equal to (a) the
ratio of (i) the Fair Share Contribution Amount with respect to such
Contributing Guarantor to (ii) the aggregate of the Fair Share
Contribution Amounts with respect to all Contributing Guarantors multiplied by (b) the
aggregate amount paid or distributed on or before such date by all Funding
Guarantors under this Guaranty in respect of the obligations Guaranteed. “Fair Share Contribution Amount” means, with respect to a
Contributing Guarantor as of any date of determination, the maximum aggregate
amount of the obligations of such Contributing Guarantor under this Guaranty
that would not render its obligations hereunder or thereunder subject to
avoidance as a fraudulent transfer or conveyance under Section 548 of
Title 11 of the United States Code or any comparable applicable provisions of
state law; provided, solely for purposes of calculating the “Fair Share Contribution Amount” with respect to any
Contributing Guarantor for purposes of this Section 7.2, any assets or
liabilities of such Contributing Guarantor arising by virtue of any rights to
subrogation, reimbursement or indemnification or any rights to or obligations
of contribution hereunder shall not be considered as assets or liabilities of
such Contributing Guarantor. “Aggregate Payments”
means, with respect to a Contributing Guarantor as of any date of
determination, an amount equal to (1) the aggregate amount of all payments
and distributions made on or before such date by such Contributing Guarantor in
respect of this Guaranty (including, without limitation, in respect of this Section 7.2),
minus (2) the aggregate amount of all payments received on or before such
date by such Contributing Guarantor from the other Contributing Guarantors as
contributions under this Section 7.2. The amounts payable as contributions
hereunder shall be determined as of the date on which the related payment or
distribution is made by the applicable Funding Guarantor. The allocation among
Contributing Guarantors of their obligations as set forth in this Section 7.2

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shall not be construed in
any way to limit the liability of any Contributing Guarantor hereunder. Each
Guarantor is a third party beneficiary to the contribution agreement set forth
in this Section 7.2.

7.3.   Payment by Guarantors.
Subject to Section 7.2, Guarantors hereby jointly and
severally agree, in furtherance of the foregoing and not in limitation of any
other right which any Beneficiary
may have at law or in equity against any Guarantor by virtue hereof, that upon
the failure of Company to pay any of the Guaranteed Obligations when and as the
same shall become due, whether at stated maturity, by required prepayment,
declaration, acceleration, demand or otherwise (including amounts that would
become due but for the operation of the automatic stay under Section 362(a) of
the Bankruptcy Code, 11 U.S.C. § 362(a)), Guarantors will upon demand
pay, or cause to be paid, in Cash, to Administrative Agent for the ratable
benefit of Beneficiaries, an amount equal to the sum of the unpaid principal
amount of all Guaranteed Obligations then due as aforesaid, accrued and unpaid
interest on such Guaranteed Obligations (including interest which, but for
Company’s becoming the subject of a case under the Bankruptcy Code, would have
accrued on such Guaranteed Obligations, whether or not a claim is allowed
against Company for such interest in the related bankruptcy case) and all other
Guaranteed Obligations then owed to Beneficiaries as aforesaid.

7.4.   Liability of
Guarantors Absolute. Each Guarantor agrees that its
obligations hereunder are irrevocable, absolute, independent and unconditional
and shall not be affected
by any circumstance which constitutes a legal or equitable discharge of a
guarantor or surety other than payment in full of the Guaranteed Obligations. In
furtherance of the foregoing and without limiting the generality thereof, each
Guarantor agrees as follows:

(a)   this Guaranty is a guaranty of payment when
due and not of collectability. This Guaranty is a primary obligation of each
Guarantor and not merely a contract of surety;

(b)   Administrative Agent may enforce this
Guaranty upon the occurrence of an Event of Default notwithstanding the
existence of any dispute between Company and any Beneficiary with respect to
the existence of such Event of Default;

(c)   the obligations of each Guarantor hereunder
are independent of the obligations of Company and the obligations of any other
guarantor (including any other Guarantor) of the obligations of Company, and a
separate action or actions may be brought and prosecuted against such Guarantor
whether or not any action is brought against Company or any of such other
guarantors and whether or not Company is joined in any such action or actions;

(d)   payment by any Guarantor of a portion, but
not all, of the Guaranteed Obligations shall in no way limit, affect, modify or
abridge any Guarantor’s liability for any portion of the Guaranteed Obligations
which has not been paid. Without limiting the generality 

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of the foregoing, if
Administrative Agent is awarded a judgment in any suit brought to enforce any
Guarantor’s covenant to pay a portion of the Guaranteed Obligations, such
judgment shall not be deemed to release such Guarantor from its covenant to pay
the portion of the Guaranteed Obligations that is not the subject of such suit,
and such judgment shall not, except to the extent satisfied by such Guarantor,
limit, affect, modify or abridge any other Guarantor’s liability hereunder in
respect of the Guaranteed Obligations;

(e)   any Beneficiary, upon such terms as it deems
appropriate, without notice or demand and without affecting the validity or
enforceability hereof or giving rise to any reduction, limitation, impairment,
discharge or termination of any Guarantor’s liability hereunder, from time to
time may (i) renew, extend, accelerate, increase the rate of interest on,
or otherwise change the time, place, manner or terms of payment of the
Guaranteed Obligations; (ii) settle, compromise, release or discharge, or
accept or refuse any offer of performance with respect to, or substitutions
for, the Guaranteed Obligations or any agreement relating thereto and/or
subordinate the payment of the same to the payment of any other obligations; (iii) request
and accept other guaranties of the Guaranteed Obligations and take and hold security
for the payment hereof or the Guaranteed Obligations; (iv) release,
surrender, exchange, substitute, compromise, settle, rescind, waive, alter,
subordinate or modify, with or without consideration, any security for payment
of the Guaranteed Obligations, any other guaranties of the Guaranteed
Obligations, or any other obligation of any Person (including any other
Guarantor) with respect to the Guaranteed Obligations; (v) enforce and
apply any security now or hereafter held by or for the benefit of such
Beneficiary in respect hereof or the Guaranteed Obligations and direct the
order or manner of sale thereof, or exercise any other right or remedy that
such Beneficiary may have against any such security, in each case as such
Beneficiary in its discretion may determine consistent herewith or the
applicable Hedge Agreement and any applicable security agreement, including
foreclosure on any such security pursuant to one or more judicial or
nonjudicial sales, whether or not every aspect of any such sale is commercially
reasonable, and even though such action operates to impair or extinguish any
right of reimbursement or subrogation or other right or remedy of any Guarantor
against Company or any security for the Guaranteed Obligations; and (vi) exercise
any other rights available to it under the Credit Documents or the Hedge
Agreements; and

(f)   this Guaranty and the obligations of
Guarantors hereunder shall be valid and enforceable and shall not be subject to
any reduction, limitation, impairment, discharge or termination for any reason
(other than payment in full of the Guaranteed Obligations), including the
occurrence of any of the following, whether or not any Guarantor shall have had
notice or knowledge of any of them: (i) any failure or omission to assert
or enforce or agreement or election not to assert or enforce, or the stay or
enjoining, by order of court, by operation of law or otherwise, of the exercise
or enforcement of, any claim or demand or any right, power or remedy (whether
arising under the Credit Documents or the Hedge Agreements, at law, in equity
or 

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otherwise) with respect
to the Guaranteed Obligations or any agreement relating thereto, or with
respect to any other guaranty of or security for the payment of the Guaranteed
Obligations; (ii) any rescission, waiver, amendment or modification of, or
any consent to departure from, any of the terms or provisions (including
provisions relating to events of default) hereof, or of any of the other Credit
Documents, any of the Hedge Agreements or any agreement or instrument executed
pursuant thereto, or of any other guaranty or security for the Guaranteed
Obligations, in each case whether or not in accordance with the terms hereof or
such Credit Document, such Hedge Agreement or any agreement relating to such
other guaranty or security; (iii) the Guaranteed Obligations, or any
agreement relating thereto, at any time being found to be illegal, invalid or
unenforceable in any respect; (iv) the application of payments received
from any source (other than payments received pursuant to the other Credit
Documents or any of the Hedge Agreements or from the proceeds of any security
for the Guaranteed Obligations, except to the extent such security also serves
as collateral for indebtedness other than the Guaranteed Obligations) to the
payment of indebtedness other than the Guaranteed Obligations, even though any
Beneficiary might have elected to apply such payment to any part or all of the
Guaranteed Obligations; (v) any Beneficiary’s consent to the change, reorganization
or termination of the corporate structure or existence of Holdings or any of
its Subsidiaries and to any correspond­ing restructuring of the Guaranteed
Obligations; (vi) any failure to perfect or continue perfection of a
security interest in any collateral which secures any of the Guaranteed
Obligations; (vii) any defenses, set-offs or counterclaims which
Company may allege or assert against any Beneficiary in respect of the
Guaranteed Obligations, including failure of consideration, breach of warranty,
payment, statute of frauds, statute of limitations, accord and satisfaction and
usury; and (viii) any other act or thing or omission, or delay to do any
other act or thing, which may or might in any manner or to any extent vary the
risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.

7.5.   Waivers by Guarantors.
Each Guarantor hereby waives, for the benefit of
Beneficiaries: (a) any right to require any Beneficiary, as a condition of
payment or performance by such
Guarantor, to (i) proceed against Company, any other guarantor (including
any other Guarantor) of the Guaranteed Obligations or any other Person, (ii) proceed
against or exhaust any security held from Company, any such other guarantor or
any other Person, (iii) proceed against or have resort to any balance of
any Deposit Account or credit on the books of any Beneficiary in favor of
Company or any other Person, or (iv) pursue any other remedy in the power
of any Beneficiary whatsoever; (b) any defense arising by reason of the
incapacity, lack of authority or any disability or other defense of Company or
any other Guarantor including any defense based on or arising out of the lack
of validity or the unenforceability of the Guaranteed Obligations or any
agreement or instrument relating thereto or by reason of the cessation of the
liability of Company or any other Guarantor from any cause other than payment
in full of the Guaranteed Obligations; (c) any defense based upon any
statute or rule of law which provides that the obligation of a surety must
be neither larger in amount nor in other respects more 

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burdensome than that of
the principal; (d) any defense based upon any Beneficiary’s errors or
omissions in the administration of the Guaranteed Obligations, except behavior
which amounts to gross negligence, willful misconduct or bad faith; (e) (i) any
principles or provisions of law, statutory or otherwise, which are or might be
in conflict with the terms hereof and any legal or equitable discharge of such
Guarantor’s obligations hereunder, (ii) the benefit of any statute of
limitations affecting such Guarantor’s liability hereunder or the enforcement
hereof, (iii) any rights to set-offs, recoupments and counterclaims,
and (iv) promptness, diligence and any requirement that any Beneficiary
protect, secure, perfect or insure any security interest or lien or any
property subject thereto; (f) notices, demands, presentments, protests,
notices of protest, notices of dishonor and notices of any action or inaction,
including acceptance hereof, notices of default hereunder, under the Hedge
Agreements or under any agreement or instrument related thereto, notices of any
renewal, extension or modification of the Guaranteed Obligations or any
agreement related thereto, notices of any extension of credit to Company and
notices of any of the matters referred to in Section 7.4 and any right to
consent to any thereof; and (g) any defenses or benefits that may be
derived from or afforded by law which limit the liability of or exonerate
guarantors or sureties, or which may conflict with the terms hereof.

7.6.   Guarantors’ Rights of
Subrogation, Contribution, etc. Until the Guaranteed
Obligations shall have been indefeasibly paid in full and the Revolving
Commitments shall have
terminated and all Letters of Credit shall have expired or been cancelled, each
Guarantor hereby waives any claim, right or remedy, direct or indirect, that
such Guarantor now has or may hereafter have against Company or any other
Guarantor or any of its assets in connection with this Guaranty or the
performance by such Guarantor of its obligations hereunder, in each case
whether such claim, right or remedy arises in equity, under contract, by
statute, under common law or otherwise and including without limitation (a) any
right of subrogation, reimbursement or indemnification that such Guarantor now
has or may hereafter have against Company with respect to the Guaranteed
Obligations, (b) any right to enforce, or to participate in, any claim,
right or remedy that any Beneficiary now has or may hereafter have against
Company, and (c) any benefit of, and any right to participate in, any
collateral or security now or hereafter held by any Beneficiary. In addition,
until the Guaranteed Obligations shall have been indefeasibly paid in full and
the Revolving Commitments shall have terminated and all Letters of Credit shall
have expired or been cancelled, each Guarantor shall withhold exercise of any
right of contribution such Guarantor may have against any other guarantor
(including any other Guarantor) of the Guaranteed Obligations, including,
without limitation, any such right of contribution as contemplated by Section 7.2.
Each Guarantor further agrees that, to the extent the waiver or agreement to
withhold the exercise of its rights of subrogation, reimbursement,
indemnification and contribution as set forth herein is found by a court of
competent jurisdiction to be void or voidable for any reason, any rights of
subrogation, reimbursement or indemnification such Guarantor may have against
Company or against any collateral or security, and any rights of contribution
such Guarantor may have against any such other guarantor, shall be junior and 

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subordinate to any rights
any Beneficiary may have against Company, to all right, title and interest any
Beneficiary may have in any such collateral or security, and to any right any
Beneficiary may have against such other guarantor. If any amount shall be paid
to any Guarantor on account of any such subrogation, reimbursement,
indemnification or contribution rights at any time when all Guaranteed
Obligations shall not have been finally and indefeasibly paid in full, such
amount shall be held in trust for Administrative Agent on behalf of
Beneficiaries and shall forthwith be paid over to Administrative Agent for the
benefit of Beneficiaries to be credited and applied against the Guaranteed
Obligations, whether matured or unmatured, in accordance with the terms hereof.

7.7.   Subordination of Other
Obligations. Any Indebtedness of Company or any Guarantor now
or hereafter held by any Guarantor (the “Obligee Guarantor”)
is hereby subordinated
in right of payment to the Guaranteed Obligations, and any such indebtedness
collected or received by the Obligee Guarantor after an Event of Default has
occurred and is continuing shall be held in trust for Administrative Agent on
behalf of Beneficiaries and shall forthwith be paid over to Administrative
Agent for the benefit of Beneficiaries to be credited and applied against the
Guaranteed Obligations but without affecting, impairing or limiting in any
manner the liability of the Obligee Guarantor under any other provision hereof.

7.8.   Continuing Guaranty. This
Guaranty is a continuing guaranty and shall remain in effect until all of the
Guaranteed Obligations shall have been paid in full and the Revolving Commitments shall have
terminated and all Letters of Credit shall have expired or been cancelled. Each
Guarantor hereby irrevocably waives any right to revoke this Guaranty as to
future transactions giving rise to any Guaranteed Obligations.

7.9.   Authority of
Guarantors or Company. It is not necessary for any
Beneficiary to inquire into the capacity or powers of any Guarantor or Company
or the officers, directors
or any agents acting or purporting to act on behalf of any of them.

7.10.   Financial Condition
of Company. Any Credit Extension may be made to Company or
continued from time to time, and any Hedge Agreements may be entered into from time to time, in each
case without notice to or authorization from any Guarantor regardless of the
financial or other condition of Company at the time of any such grant or
continuation or at the time such Hedge Agreement is entered into, as the case
may be. No Beneficiary shall have any obligation to disclose or discuss with
any Guarantor its assessment, or any Guarantor’s assessment, of the financial
condition of Company. Each Guarantor has adequate means to obtain information
from Company on a continuing basis concerning the financial condition of
Company and its ability to perform its obligations under the Credit Documents
and the Hedge Agreements, and each Guarantor assumes the responsibility for
being and keeping informed of the financial condition of Company and of all
circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations.
Each Guarantor hereby waives and relinquishes any 

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duty on the part of any
Beneficiary to disclose any matter, fact or thing relating to the business,
operations or conditions of Company now known or hereafter known by any
Beneficiary.

7.11.   Bankruptcy, etc.  (a)  So long as any Guaranteed
Obligations remain outstanding, no Guarantor shall, without the prior written
consent of Administrative Agent acting
pursuant to the instructions of Requisite Lenders, commence or join with any
other Person in commencing any bankruptcy, reorganization or insolvency case or
proceeding of or against Company or any other Guarantor. The obligations of
Guarantors hereunder shall not be reduced, limited, impaired, discharged,
deferred, suspended or terminated by any case or proceeding, voluntary or
involuntary, involving the bankruptcy, insolvency, receivership,
reorganization, liquidation or arrangement of Company or any other Guarantor or
by any defense which Company or any other Guarantor may have by reason of the
order, decree or decision of any court or administrative body resulting from
any such proceeding.

(b)   Each Guarantor acknowledges and agrees that
any interest on any portion of the Guaranteed Obligations which accrues after
the commencement of any case or proceeding referred to in clause (a) above
(or, if interest on any portion of the Guaranteed Obligations ceases to accrue
by operation of law by reason of the commencement of such case or proceeding,
such interest as would have accrued on such portion of the Guaranteed Obligations
if such case or proceeding had not been commenced) shall be included in the
Guaranteed Obligations because it is the intention of Guarantors and
Beneficiaries that the Guaranteed Obligations which are guaranteed by
Guarantors pursuant hereto should be determined without regard to any rule of
law or order which may relieve Company of any portion of such Guaranteed
Obligations. Guarantors will permit any trustee in bankruptcy, receiver, debtor
in possession, assignee for the benefit of creditors or similar person to pay
Administrative Agent, or allow the claim of Administrative Agent in respect of,
any such interest accruing after the date on which such case or proceeding is
commenced.

(c)   In the event that all or any portion of the
Guaranteed Obligations are paid by Company, the obligations of Guarantors
hereunder shall continue and remain in full force and effect or be reinstated,
as the case may be, in the event that all or any part of such payment(s) are
rescinded or recovered directly or indirectly from any Beneficiary as a
preference, fraudulent transfer or otherwise, and any such payments which are
so rescinded or recovered shall constitute Guaranteed Obligations for all
purposes hereunder.

7.12.   Discharge of Guaranty
Upon Sale of Guarantor. If all of the Capital Stock of any
Guarantor or any of its successors in interest hereunder shall be sold or
otherwise disposed of
(including by merger or consolidation) in accordance with the terms and conditions
hereof, the Guaranty of such Guarantor or such successor in interest, as the
case may be, hereunder shall automatically be discharged and released without
any further action by any Beneficiary or any other Person effective as of the
time of such Asset Sale.

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SECTION 8.  EVENTS OF DEFAULT

8.1.   Events of Default. If
any one or more of the following conditions or events shall occur:

(a)   Failure to Make Payments When Due. Failure
by Company to pay (i) when due any installment of principal of any Loan,
whether at stated maturity, by acceleration, by notice of voluntary prepayment,
by mandatory prepayment or otherwise; (ii) when due any amount payable to
Issuing Bank in reimbursement of any drawing under a Letter of Credit; or (iii) any
interest on any Loan or any fee or any other amount due hereunder within five
days after the date due; or

(b)   Default in Other Agreements. (i) Failure
of any Credit Party or any of their respective Subsidiaries to pay when due any
principal of or interest on or any other amount payable in respect of one or
more items of Indebtedness (other than Indebtedness referred to in Section 8.1(a))
in an individual principal amount of $2,500,000 or more or with an aggregate
principal amount of $5,000,000 or more, in each case beyond the grace period,
if any, provided therefor; or (ii) breach or default by any Credit Party
with respect to any other material term of (1) one or more items of
Indebtedness in the individual or aggregate principal amounts referred to in
clause (i) above or (2) any loan agreement, mortgage, indenture or
other agreement relating to such item(s) of Indebtedness, in each case
beyond the grace period, if any, provided therefor, if the effect of such
breach or default is to cause, or to permit the holder or holders of that
Indebtedness (or a trustee on behalf of such holder or holders), to cause, that
Indebtedness to become or be declared due and payable (or redeemable) prior to
its stated maturity or the stated maturity of any underlying obligation, as the
case may be; or

(c)   Breach of Certain Covenants. Failure
of any Credit Party to perform or comply with any term or condition contained
in Section 2.6, Section 5.2(i) or Section 6; or

(d)   Breach of Representations, etc. Any
representation, warranty, certification or other statement made or deemed made
by any Credit Party in any Credit Document or in any statement or certificate
at any time given by any Credit Party or any of its Subsidiaries in writing
pursuant hereto or thereto or in connection herewith or therewith shall be
false in any material respect as of the date made or deemed made; or

(e)   Other Defaults Under Credit Documents.
Any Credit Party shall default in the performance of or compliance with any
term contained herein or any of the other Credit Documents, other than any such
term referred to in any other paragraph of this Section 8.1, and such
default shall not have been remedied or waived within thirty days after the
earlier of (i) an officer of such Credit Party becoming aware of such
default or (ii) receipt by Company of notice from Administrative Agent or
any Lender of such default; or

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(f)   Involuntary Bankruptcy; Appointment of
Receiver, etc. (i) A court of competent jurisdiction shall enter a
decree or order for relief in respect of Holdings, Company, any Significant
Subsidiary of Company or any group of Subsidiaries constituting a Significant
Subsidiary of Company in an involuntary case under the Bankruptcy Code or under
any other applicable bankruptcy, insolvency or similar law now or hereafter in
effect, which decree or order is not stayed; or any other similar relief shall
be granted under any applicable federal or state law; or (ii) an
involuntary case shall be commenced against Holdings, Company, any Significant
Subsidiary of Company or any group of Subsidiaries constituting a Significant
Subsidiary of Company under the Bankruptcy Code or under any other applicable
bankruptcy, insolvency or similar law now or hereafter in effect; or a decree
or order of a court having jurisdiction in the premises for the appointment of
a receiver, liquidator, sequestrator, trustee, custodian or other officer
having similar powers over Holdings, Company, any Significant Subsidiary of
Company or any group of Subsidiaries constituting a Significant Subsidiary of
Company, or over all or a substantial part of its property, shall have been
entered; or there shall have occurred the involuntary appointment of an interim
receiver, trustee or other custodian of Holdings, Company, any Significant
Subsidiary of Company or any group of Subsidiaries constituting a Significant
Subsidiary of Company for all or a substantial part of its property; or a
warrant of attachment, execution or similar process shall have been issued
against any substantial part of the property of Holdings, Company, any
Significant Subsidiary of Company or any group of Subsidiaries constituting a
Significant Subsidiary of Company, and any such event described in this clause (ii) shall
continue for sixty days without having been dismissed, bonded or discharged; or

(g)   Voluntary Bankruptcy; Appointment of
Receiver, etc. (i) Holdings, Company, any Significant Subsidiary of
Company or any group of Subsidiaries constituting a Significant Subsidiary of
Company shall have an order for relief entered with respect to it or shall
commence a voluntary case under the Bankruptcy Code or under any other
applicable bankruptcy, insolvency or similar law now or hereafter in effect, or
shall consent to the entry of an order for relief in an involuntary case, or to
the conversion of an involuntary case to a voluntary case, under any such law,
or shall consent to the appointment of or taking possession by a receiver,
trustee or other custodian for all or a substantial part of its property; or
Holdings, Company, any Significant Subsidiary of Company or any group of
Subsidiaries constituting a Significant Subsidiary of Company shall make any
assignment for the benefit of creditors; or (ii) Holdings, Company, any
Significant Subsidiary of Company or any group of Subsidiaries constituting a
Significant Subsidiary of Company shall be unable, or shall fail generally, or
shall admit in writing its inability, to pay its debts as such debts become
due; or the Board of Directors of Holdings, Company, any Significant Subsidiary
of Company or any group of Subsidiaries constituting a Significant Subsidiary
of Company (or any committee thereof) shall adopt any resolution or otherwise
authorize any action to approve any of the actions referred to herein or in Section 8.1(f);
or

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(h)   Judgments and Attachments. Any money
judgment, writ or warrant of attachment or similar process involving (i) in
any individual case an amount in excess of $2,500,000 or (ii) in the
aggregate at any time an amount in excess of $5,000,000 (in either case to the
extent not adequately covered by insurance as to which a solvent and
unaffiliated insurance company has acknowledged coverage excluding customary
deductibles) shall be entered or filed against Holdings or any of its
Subsidiaries or any of their respective assets and shall remain undischarged,
unvacated, unbonded or unstayed for a period of sixty days (or in any event
later than five days prior to the date of any proposed sale thereunder); or

(i)   Dissolution. Any order, judgment or
decree shall be entered against Holdings, Company, any Significant Subsidiary
of Company or any group of Subsidiaries constituting a Significant Subsidiary
of Company decreeing the dissolution or split up of such Person and such order
shall remain undischarged or unstayed for a period in excess of thirty days; or

(j)   Employee Benefit Plans. (i) There
shall occur one or more ERISA Events which individually or in the aggregate
results in or might reasonably be expected to result in liability of Holdings,
any of its Subsidiaries or any of their respective ERISA Affiliates in excess
of $2,500,000 during the term hereof; or (ii) there exists any fact or
circumstance that reasonably could be expected to result in the imposition of a
Lien or security interest under Section 412(n) of the Internal
Revenue Code or under ERISA; or

(k)   Change of Control. A Change of Control
shall occur; or

(l)   Guaranties, Collateral Documents and other
Credit Documents. At any time after the execution and delivery thereof, (i) the
Guaranty for any reason, other than the satisfaction in full of all
Obligations, shall cease to be in full force and effect (other than in
accordance with its terms) or shall be declared to be null and void or any
Guarantor shall repudiate its obligations thereunder, (ii) this Agreement
or any material Collateral Document ceases to be in full force and effect
(other than by reason of a release of Collateral in accordance with the terms
hereof or thereof or the satisfaction in full of the Obligations in accordance
with the terms hereof) or shall be declared null and void, or Collateral Agent
shall not have or shall cease to have a valid and perfected Lien in any
Collateral purported to be covered by the Collateral Documents with the
priority required by the relevant Collateral Document, in each case for any
reason other than the failure of Collateral Agent or any Secured Party to take
any action within its control, or (iii) any Credit Party shall contest the
validity or enforceability of any Credit Document in writing or deny in writing
that it has any further liability, including with respect to future advances by
Lenders, under any Credit Document to which it is a party; or

(m)   Failure of Merger to Occur. The Merger
shall not have occurred on the Closing Date;

 

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THEN, (1) upon the occurrence of any Event of Default
described in Section 8.1(f) or 8.1(g), automatically, and (2) upon
the occurrence of any other Event of Default, at the request of (or with the
consent of) Requisite Lenders, upon notice to Company by Administrative Agent, (A) the
Revolving Commitments, if any, of each Lender having such Revolving Commitments
and the obligation of Issuing Bank to issue any Letter of Credit shall
immediately terminate; (B) each of the following shall immediately become
due and payable, in each case without presentment, demand, protest or other
requirements of any kind, all of which are hereby expressly waived by each
Credit Party: (I) the unpaid principal amount of and accrued interest on
the Loans and (II) all other Obligations; provided, the foregoing
shall not affect in any way the obligations of Lenders under Section 2.3(b)(iv) or
Section 2.4(e); (C) Administrative Agent may cause Collateral Agent
to enforce any and all Liens and security interests created pursuant to the
Collateral Documents; and (D) Administrative Agent shall direct Company to
pay (and Company hereby agrees upon receipt of such notice, or upon the
occurrence of any Event of Default specified in Section 8.1(f) and (g) to
pay) to Administrative Agent such additional amounts of cash, to be held as
security for Company’s reimbursement Obligations in respect of Letters of
Credit then outstanding, equal to the Letter of Credit Usage at such time.

SECTION 9.  AGENTS

9.1.         Appointment
of Agents. GSCP is hereby appointed Syndication Agent
hereunder, and each Lender hereby authorizes Syndication Agent to act as its
agent in accordance with the
terms hereof and the other Credit Documents. GSCP is hereby appointed
Administrative Agent hereunder and under the other Credit Documents and each
Lender hereby authorizes Administrative Agent to act as its agent in accordance
with the terms hereof and the other Credit Documents. Bank of America, N.A. is
hereby appointed Documentation Agent hereunder, and each Lender hereby authorizes
Documentation Agent to act as its agent in accordance with the terms hereof and
the other Credit Documents. Each Agent hereby agrees to act upon the express
conditions contained herein and the other Credit Documents, as applicable. The
provisions of this Section 9 are solely for the benefit of Agents and
Lenders and no Credit Party shall have any rights as a third party beneficiary
of any of the provisions thereof. In performing its functions and duties
hereunder, each Agent shall act solely as an agent of Lenders and does not
assume and shall not be deemed to have assumed any obligation towards or
relationship of agency or trust with or for Holdings or any of its Subsidiaries.
Each of Syndication Agent and Documenta­tion Agent, without consent of or
notice to any party hereto, may assign any and all of its rights or obligations
hereunder to any of its Affiliates. As of the Closing Date, neither GSCP, in
its capacity as Syndication Agent, nor Bank of America, N.A., in its capacity
as Documentation Agent, shall have any obligations but shall be entitled to all
benefits of this Section 9.

9.2.         Powers and Duties. Each Lender irrevocably
authorizes each Agent to take such action on such Lender’s behalf and to
exercise such powers, rights and remedies hereunder
and 

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under the other Credit
Documents as are specifically delegated or granted to such Agent by the terms
hereof and thereof, together with such powers, rights and remedies as are
reasonably incidental thereto. Each Agent shall have only those duties and
responsibilities that are expressly specified herein and the other Credit
Documents. Each Agent may exercise such powers, rights and remedies and perform
such duties by or through its agents or employees. No Agent shall have, by
reason hereof or any of the other Credit Documents, a fiduciary relationship in
respect of any Lender; and nothing herein or in any of the other Credit
Documents, expressed or implied, is intended to or shall be so construed as to
impose upon any Agent any obligations in respect hereof or any of the other
Credit Documents except as expressly set forth herein or therein.

9.3.         General Immunity.

(a)   No Responsibility for Certain Matters.
No Agent shall be responsible to any Lender for the execution, effectiveness,
genuineness, validity, enforceability, collectability or sufficiency hereof or
any other Credit Document or for any representations, warranties, recitals or
statements made herein or therein or made in any written or oral statements or
in any financial or other statements, instruments, reports or certificates or
any other documents furnished or made by any Agent to Lenders or by or on
behalf of any Credit Party, any Lender or any Person providing the Settlement
Service to any Agent or any Lender in connection with the Credit Documents and
the transactions contemplated thereby or for the financial condition or
business affairs of any Credit Party or any other Person liable for the payment
of any Obligations, nor shall any Agent be required to ascertain or inquire as
to the performance or observance of any of the terms, conditions, provisions,
covenants or agreements contained in any of the Credit Documents or as to the
use of the proceeds of the Loans or as to the existence or possible existence
of any Event of Default or Default or to make any disclosures with respect to
the foregoing. Anything contained herein to the contrary notwithstanding,
Administrative Agent shall not have any liability arising from confirmations of
the amount of outstanding Loans or the Letter of Credit Usage or the component
amounts thereof.

(b)   Exculpatory Provisions. No Agent nor
any of its officers, partners, directors, employees or agents shall be liable
to Lenders for any action taken or omitted by any Agent under or in connection
with any of the Credit Documents except to the extent caused by such Agent’s
gross negligence or willful misconduct. Each Agent shall be entitled to refrain
from any act or the taking of any action (including the failure to take an
action) in connection herewith or any of the other Credit Documents or from the
exercise of any power, discretion or authority vested in it hereunder or
thereunder unless and until such Agent shall have received instructions in
respect thereof from Requisite Lenders (or such other Lenders as may be
required to give such instructions under Section 10.5) and, upon receipt
of such instructions from Requisite Lenders (or such other Lenders, as the case
may be), such Agent shall be entitled to act or (where so instructed) refrain
from acting, or to exercise such power, discretion or authority, in accordance
with such instructions. Without prejudice to the generality of the foregoing, (i) each
Agent shall 

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be entitled to rely, and shall be
fully protected in relying, upon any communication, instrument or document
believed by it to be genuine and correct and to have been signed or sent by the
proper Person or Persons, including any Settlement Confirmation or other
communication issued by any Settlement Service, and shall be entitled to rely
and shall be protected in relying on opinions and judgments of attorneys (who
may be attorneys for Holdings and its Subsidiaries), accountants, experts and
other professional advisors selected by it; and (ii) no Lender shall have
any right of action whatsoever against any Agent as a result of such Agent
acting or (where so instructed) refraining from acting hereunder or under any
of the other Credit Documents in accordance with the instructions of Requisite
Lenders (or such other Lenders as may be required to give such instructions
under Section 10.5).

(c)   Delegation of Duties. Administrative
Agent may perform any and all of its duties and exercise its rights and powers
under this Agreement or under any other Credit Document by or through any one
or more sub-agents appointed by Administrative Agent. Administrative Agent and
any sub-agent may perform any and all of their duties and exercise their rights
and powers by or through their respective Affiliates. The exculpatory,
indemnification and other provisions of this Section 9.3 and of Section 9.6
shall apply to any Affiliates of Administrative Agent and shall apply to their
respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent. All
of the rights, benefits and privileges (including the exculpatory and
indemnification provisions) of this Section 9.3 and of Section 9.6
shall apply to any such sub-agent and to the Affiliates of any such sub-agent,
and shall apply to their respective activities as sub-agent as if such
sub-agent and Affiliates were named herein. Notwithstanding anything herein to
the contrary, with respect to each sub-agent appointed by Administrative Agent,
(i) such sub-agent shall be a third party beneficiary under this Agreement
with respect to all such rights, benefits and privileges (including exculpatory
rights and rights to indemnification) and shall have all of the rights and
benefits of a third party beneficiary, including an independent right of action
to enforce such rights, benefits and privileges (including exculpatory rights
and rights to indemnification) directly, without the consent or joinder of any
other Person, against any or all of the Credit Parties and the Lenders, (ii) such
rights, benefits and privileges (including exculpatory rights and rights to
indemnification) shall not be modified or amended without the consent of such
sub-agent, and (iii) such sub-agent shall only have obligations to
Administrative Agent and not to any Credit Party, Lender or any other Person,
and no Credit Party, Lender or any other Person shall have any rights, directly
or indirectly, as a third party beneficiary or otherwise, against such
sub-agent.

9.4.         Agents Entitled to Act as Lender. The
agency hereby created shall in no way impair or affect any of the rights and
powers of, or impose any duties or obligations upon, any Agent in its
individual capacity as a Lender hereunder. With respect to its participation in
the Loans and the Letters of Credit, each Agent shall have the same rights and
powers hereunder as 

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any other Lender and may
exercise the same as if it were not performing the duties and functions
delegated to it hereunder, and the term “Lender” shall, unless the context
clearly otherwise indicates, include each Agent in its individual capacity. Any
Agent and its Affiliates may accept deposits from, lend money to, own
securities of, and generally engage in any kind of banking, trust, financial
advisory or other business with Holdings or any of its Affiliates as if it were
not performing the duties specified herein, and may accept fees and other
consideration from Company for services in connection herewith and otherwise
without having to account for the same to Lenders.

9.5.         Lenders’ Representations, Warranties and Acknowledgment.
Each Lender represents and warrants that it has made its own independent
investigation of the financial
condition and affairs of Holdings and its Subsidiaries in connection with
Credit Extensions hereunder and that it has made and shall continue to make its
own appraisal of the creditworthiness of Holdings and its Subsidiaries. No
Agent shall have any duty or responsibility, either initially or on a
continuing basis, to make any such investigation or any such appraisal on
behalf of Lenders or to provide any Lender with any credit or other information
with respect thereto, whether coming into its possession before the making of
the Loans or at any time or times thereafter, and no Agent shall have any
responsibility with respect to the accuracy of or the completeness of any
information provided to Lenders.

9.6.         Right to Indemnity. Each Lender, in
proportion to its Pro Rata Share, severally agrees to indemnify each Agent, to
the extent that such Agent shall not have been reimbursed by any Credit Party, for and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses (including counsel fees and
disbursements) or disbursements of any kind or nature whatsoever which may be
imposed on, incurred by or asserted against such Agent in exercising its
powers, rights and remedies or performing its duties hereunder or under the
other Credit Documents or otherwise in its capacity as such Agent in any way
relating to or arising out of this Agreement or the other Credit Documents; provided,
no Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from such Agent’s gross negligence or willful
misconduct. If any indemnity furnished to any Agent for any purpose shall, in
the opinion of such Agent, be insufficient or become impaired, such Agent may
call for additional indemnity and cease, or not commence, to do the acts
indemnified against until such additional indemnity is furnished; provided,
in no event shall this sentence require any Lender to indemnify any Agent
against any liability, obligation, loss, damage, penalty, action, judgment,
suit, cost, expense or disbursement in excess of such Lender’s Pro Rata Share
thereof; and provided  further, this sentence shall not be deemed
to require any Lender to indemnify any Agent against any liability, obligation,
loss, damage, penalty, action, judgment, suit, cost, expense or disbursement
described in the proviso in the immediately preceding sentence.

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9.7.         Successor Administrative Agent and Swing Line Lender. Administrative
Agent may resign at any time by giving thirty days’ prior written notice
thereof to Lenders and
Company, and Administrative Agent may be removed at any time with or without
cause by an instrument or concurrent instruments in writing delivered to
Company and Administrative Agent and signed by Requisite Lenders. Upon any such
notice of resignation or any such removal, Requisite Lenders shall have the
right, upon five Business Days’ notice to Company, to appoint a successor
Administrative Agent; provided that so long as no Event of Default then
exists, such successor Administrative Agent shall have been approved in writing
by the Company. Upon the acceptance of any appointment as Administrative Agent
hereunder by a successor Administrative Agent, that successor Administrative
Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring or removed Administrative Agent and the
retiring or removed Administrative Agent shall promptly (i) transfer to
such successor Administrative Agent all sums, Securities and other items of
Collateral held under the Collateral Documents, together with all records and
other documents necessary or appropriate in connection with the performance of
the duties of the successor Administrative Agent under the Credit Documents,
and (ii) execute and deliver to such successor Administrative Agent such
amendments to financing statements, and take such other actions, as may be
necessary or appropriate in connection with the assignment to such successor
Administrative Agent of the security interests created under the Collateral
Documents, whereupon such retiring or removed Administrative Agent shall be
discharged from its duties and obligations hereunder. After any retiring or
removed Administrative Agent’s resignation or removal hereunder as
Administrative Agent, the provisions of this Section 9 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent hereunder. Any resignation or removal of GSCP or its
successor as Administrative Agent pursuant to this Section shall also
constitute the resignation or removal of GSCP or its successor as Swing Line
Lender, and any successor Administrative Agent appointed pursuant to this Section shall,
upon its acceptance of such appointment, become the successor Swing Line Lender
for all purposes hereunder. In such event (a) Company shall prepay any
outstanding Swing Line Loans made by the retiring or removed Administrative
Agent in its capacity as Swing Line Lender, (b) upon such prepayment, the
retiring or removed Administrative Agent and Swing Line Lender shall surrender
any Swing Line Note held by it to Company for cancellation, and (c) Company
shall issue, if so requested by successor Administrative Agent and Swing Line
Loan Lender, a new Swing Line Note to the successor Administrative Agent and
Swing Line Lender, in the principal amount of the Swing Line Loan Sublimit then
in effect and with other appropriate insertions.

9.8.         Collateral Documents and Guaranty.

(a)   Agents under Collateral Documents and
Guaranty. Each Lender hereby further authorizes Administrative Agent or
Collateral Agent, as applicable, on behalf of and for the benefit of Lenders,
to be the agent for and representative of Lenders with respect to the

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Guaranty, the Collateral and the
Collateral Documents. Subject to Section 10.5, without further written consent
or authorization from Lenders, Administra­tive Agent or Collateral Agent, as
applicable may execute any documents or instruments necessary to (i) release
any Lien encumbering any item of Collateral that is the subject of a sale or
other disposition of assets permitted hereby or to which Requisite Lenders (or
such other Lenders as may be required to give such consent under Section 10.5)
have otherwise consented or (ii) release any Guarantor from the Guaranty
pursuant to Section 7.12 or with respect to which Requisite Lenders (or
such other Lenders as may be required to give such consent under Section 10.5)
have otherwise consented. Without limiting the generality of the foregoing,
upon the termination of the Commitments and the payment of all Obligations then
due and payable and the cancellation, expiration or cash collateralization (in
a manner reasonably acceptable to Administrative Agent, but in no event to
exceed 105% of the face amount thereof) of all Letters of Credit, (i) the Liens created by the Collateral Documents
shall terminate and all rights to the Collateral shall revert to the applicable
Credit Party, and (ii) Collateral Agent will, upon a Credit Party’s
request and at such Credit Party’s expense, (x) return to such Credit
Party such of the Collateral as shall not have been sold or otherwise disposed
of or applied pursuant to the terms of the Credit Documents and (y) at
such Credit Party’s expense, execute and deliver to such Credit Party such UCC
termination statements, releases, mortgage releases, discharges of security
interests, reassignments of Intellectual Property, terminations of control
agreements and other similar discharge or release documents (and, if
applicable, in recordable form) (collectively, “Release Documents”) as are necessary to release, of record,
the Liens and security interests granted pursuant to this Agreement and any
other Credit Documents as such Credit Party
shall reasonably request to evidence such termination, all without any
representation, warranty or recourse whatsoever. If a Credit Party shall
acquire any property or asset securing Indebtedness in accordance with Section 6.1(j) or
(k) and such Credit Party is prohibited at the time of acquisition (and in
the case of Section 6.1(k), so long as such prohibition is not agreed to
in contemplation of such acquisition) by any agreement or contractual
arrangement from allowing the Collateral Agent to have a Lien on such property
or assets, the Collateral Agent will, upon such Credit Party’s request and at
such Credit Party’s expense, execute and deliver to such Credit Party such
Release Documents with respect to such property or asset as such Credit Party
shall reasonably request to evidence the release of Collateral Agent’s Lien on
the property or asset so acquired.

(b)   Right to Realize on Collateral and Enforce
Guaranty. Anything contained in any of the Credit Documents to the contrary
notwithstanding, Company, Administrative Agent, Collateral Agent and each
Lender hereby agree that (i) no Lender shall have any right individually
to realize upon any of the Collateral or to enforce the Guaranty, it being
understood and agreed that all powers, rights and remedies hereunder may be
exercised solely by Administrative Agent, on behalf of Lenders in accordance
with the terms hereof and all powers, rights and remedies under the Collateral
Documents may be exercised solely by Collateral Agent, and (ii) in the
event of a foreclosure by Collateral Agent on any of the Collateral pursuant

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to a public or private sale,
Collateral Agent or any Lender may be the purchaser of any or all of such
Collateral at any such sale and Collateral Agent, as agent for and
representative of Secured Parties (but not any Lender or Lenders in its or
their respective individual capacities unless Requisite Lenders shall otherwise
agree in writing) shall be entitled, for the purpose of bidding and making
settlement or payment of the purchase price for all or any portion of the
Collateral sold at any such public sale, to use and apply any of the Obligations
as a credit on account of the purchase price for any collateral payable by
Collateral Agent at such sale.

SECTION 10.  MISCELLANEOUS

10.1.       Notices. Unless otherwise specifically
provided herein, any notice or other communication herein required or permitted
to be given to a Credit Party, Syndication Agent,
Collateral Agent, Administrative Agent, Swing Line Lender, Issuing Bank or
Documentation Agent, shall be sent to such Person’s address as set forth on
Appendix B or in the other relevant Credit Document, and in the case of any
Lender, the address as indicated on Appendix B or otherwise indicated to
Administrative Agent and Company in writing. Each notice hereunder shall be in
writing and may be personally served or sent by telefacsimile or United States certified
or registered mail or courier service and shall be deemed to have been given
when delivered in person or by courier service and signed for against receipt
thereof, upon receipt of telefacsimile, or three Business Days after depositing
it in the United States mail with postage prepaid and properly addressed; provided,
no notice to any Agent shall be effective until received by such Agent; provided
further, any such notice or other communication shall at the request of
Administrative Agent be provided to any sub-agent appointed pursuant to Section 9.3(c) hereof
as designated by Administrative Agent from time to time.

10.2        Expenses. Whether or not the transactions
contemplated hereby shall be consum­mated, Company agrees to pay promptly (a) all
the actual and reasonable costs and expenses
incurred by the Lead Arrangers and each Agent in connection with preparation of
the Credit Documents and any consents, amendments, waivers or other
modifications thereto; (b) all the costs of furnishing all opinions by
counsel for Company and the other Credit Parties; (c) the reasonable fees,
expenses and disbursements of counsel to Agents (in each case including
allocated costs of internal counsel) in connection with the negotiation,
preparation, execution and administration of the Credit Documents and any
consents, amendments, waivers or other modifications thereto and any other
documents or matters requested by Company; (d) all the actual costs and
reasonable expenses of creating and perfecting Liens in favor of Collateral
Agent, for the benefit of Lenders pursuant hereto, including filing and
recording fees, expenses and taxes, stamp or documentary taxes, search fees,
title insurance premiums and reasonable fees, expenses and disbursements of
counsel to each Agent and of counsel providing any opinions that any Agent or
Requisite Lenders may reasonably request in respect of the Collateral or the
Liens created pursuant to the Collateral Documents; (e) all the actual
costs and reasonable

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fees, expenses and
disbursements of any auditors, accountants, consultants or appraisers; (f) all
the actual costs and reasonable expenses (including the reasonable fees,
expenses and disbursements of any appraisers, consultants, advisors and agents
employed or retained by Collateral Agent and its counsel) in connection with
the custody or preservation of any of the Collateral; (g) all other actual
and reasonable costs and expenses incurred by each Agent in connection with the
syndication of the Loans and Commitments and the negotiation, preparation and
execution of the Credit Documents and any consents, amendments, waivers or
other modifications thereto and the transactions contemplated thereby; and (h) after
the occurrence of an Event of Default, all costs and expenses, including reasonable
attorneys’ fees (including allocated costs of internal counsel) and costs of
settlement, incurred by any Agent and Lenders in enforcing any Obligations of
or in collecting any payments due from any Credit Party hereunder or under the
other Credit Documents by reason of such Default or Event of Default (including
in connection with the sale of, collection from, or other realization upon any
of the Collateral or the enforcement of the Guaranty) or in connection with any
refinancing or restructuring of the credit arrangements provided hereunder in
the nature of a “work-out” or pursuant to any insolvency or bankruptcy
cases or proceedings.

10.3.       Indemnity.

(a)   In addition to the payment of expenses
pursuant to Section 10.2, whether or not the transactions contemplated
hereby shall be consummated, each Credit Party agrees to defend (if requested
by the Indemnitees and subject to Indemnitees’ selection of counsel),
indemnify, pay and hold harmless, each Agent, Lead Arranger and Lender and the
Issuing Bank and the officers, partners, directors, trustees, employees,
agents, sub-agents and Affiliates of each Agent, each Lead Arranger, each
Lender and the Issuing Bank (each, an “Indemnitee”), from and against any and all Indemnified
Liabilities; provided, no Credit Party shall have any obligation to any
Indemnitee hereunder with respect to any Indemnified Liabilities to the extent
such Indemnified Liabilities arise from the gross negligence or willful
misconduct of that Indemnitee. To the extent that the undertakings to defend,
indemnify, pay and hold harmless set forth in this Section 10.3 may be
unenforceable in whole or in part because they are violative of any law or
public policy, the applicable Credit Party shall contribute the maximum portion
that it is permitted to pay and satisfy under applicable law to the payment and
satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of
them.

(b)   To the extent permitted by applicable law, no
Credit Party shall assert, and each Credit Party hereby waives, any claim
against Lenders, Agents, Lead Arrangers and Issuing Bank and their respective
Affiliates, directors, employees, attorneys, agents or sub-agents, on any
theory of liability, for special, indirect, consequential or punitive damages  (as opposed to direct or actual damages)
(whether or not the claim therefor is based on contract, tort or duty imposed
by any applicable legal requirement) arising out of, in connection with, as a
result of, or in any way related to, this Agreement or any Credit Document or
any agreement or instrument 

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contemplated hereby or thereby or
referred to herein or therein, the transactions contemplated hereby or thereby,
any Loan or the use of the proceeds thereof or any act or omission or event
occurring in connection therewith, and each of Holdings and Company hereby
waives, releases and agrees not to sue upon any such claim or any such damages,
whether or not accrued and whether or not known or suspected to exist in its
favor.

10.4.       Set-Off. In addition to any rights now
or hereafter granted under applicable law and not by way of limitation of any
such rights, upon the occurrence of any Event of
Default each Lender is hereby authorized by each Credit Party at any time or
from time to time subject to the consent of Administrative Agent (such consent
not to be unreasonably withheld or delayed), without prior notice to any Credit
Party or to any other Person (other than Administrative Agent), any such notice
being hereby expressly waived, to set off and to appropriate and to apply any
and all deposits (general or special, including Indebtedness evidenced by
certificates of deposit, whether matured or unmatured, but not including trust
accounts) and any other Indebtedness at any time held or owing by such Lender
to or for the credit or the account of any Credit Party against and on account
of the obligations and liabilities of any Credit Party to such Lender
hereunder, the Letters of Credit and participations therein and under the other
Credit Documents, including all claims of any nature or description arising out
of or connected hereto, the Letters of Credit and participations therein or
with any other Credit Document, irrespective of whether or not (a) such
Lender shall have made any demand hereunder or (b) the principal of or the
interest on the Loans or any amounts in respect of the Letters of Credit or any
other amounts due hereunder shall have become due and payable pursuant to Section 2
and although such obligations and liabilities, or any of them, may be
contingent or unmatured. Administrative Agent and each Lender agree promptly to
notify Company after any such set-off and application made by such Person.

10.5.       Amendments and Waivers.

(a)   Requisite Lenders’ Consent. Subject to
Section 10.5(b) and 10.5(c), no amendment, modification, termination
or waiver of any provision of the Credit Documents, or consent to any departure
by any Credit Party therefrom, shall in any event be effective without the
written concurrence of the Requisite Lenders.

(b)   Affected Lenders’ Consent. Without the
written consent of each Lender  (other
than a Defaulting Lender) that would be affected thereby, no amendment,
modification, termination, or consent shall be effective if the effect thereof
would:

(i)   extend the
scheduled final maturity of any Loan or Note;

(ii)   waive,
reduce or postpone any scheduled repayment (but not prepayment);

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(iii)   extend the
stated expiration date of any Letter of Credit beyond the Revolving Commitment
Termination Date;

(iv)   reduce the
rate of interest on any Loan (other than any waiver of any increase in the
interest rate applicable to any Loan or any reimbursement obligation in respect
of any Letter of Credit pursuant to Section 2.8(f) or 2.10) or any
fee payable hereunder;

(v)   extend the
time for payment of any such interest or fees;

(vi)   reduce the
principal amount of any Loan or any reimbursement obligation in respect of any
Letter of Credit;

(vii)   amend,
modify, terminate or waive any provision of this Section 10.5(b) or Section 10.5(c);

(viii)   amend the
definition of “Requisite Lenders” or “Pro Rata Share”; provided, with the consent of Requisite Lenders, additional
extensions of credit pursuant hereto may be included in the determination of “Requisite Lenders” or “Pro Rata Share” on substantially the same basis as
the Existing Term Loan Commitments, the Existing Term Loans, the Revolving
Commitments and the Revolving Loans are included on the Closing Date;

(ix)   release all
or substantially all of the Collateral or all or substantially all of the
Guarantors from the Guaranty except as expressly provided in the Credit
Documents; or

(x)   consent to
the assignment or transfer by any Credit Party of any of its rights and
obligations under any Credit Document except as otherwise provided herein.

(c)   Other Consents. No amendment,
modification, termination or waiver of any provision of the Credit Documents,
or consent to any departure by any Credit Party therefrom, shall:

(i)   increase any
Revolving Commitment of any Lender over the amount thereof then in effect
without the consent of such Lender; provided, no amendment, modification
or waiver of any condition precedent, covenant, Default or Event of Default
shall constitute an increase in any Revolving Commitment of any Lender;

 

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(ii)   amend,
modify, terminate or waive any provision hereof relating to the Swing Line
Sublimit or the Swing Line Loans without the consent of Swing Line Lender;

(iii)   amend the
definition of “Requisite Class Lenders” without the consent of Requisite Class Lenders of
each Class; provided, with the consent of the Requisite Lenders,
additional extensions of credit pursuant hereto may be included in the
determination of such “Requisite Class Lenders” on substantially the same basis as the Existing Term
Loan Commitments, the Existing Term Loans, the Revolving Commitments and the
Revolving Loans are included on the Closing Date;

(iv)   alter the
required application of any repayments or prepayments as between Classes
pursuant to Section 2.15 without the consent of Requisite Class Lenders
of each Class which is being allocated a lesser repayment or prepayment as
a result thereof; provided, Requisite Lenders may waive, in whole or in
part, any prepayment so long as the application, as between Classes, of any portion
of such prepayment which is still required to be made is not altered;

(v)   amend,
modify, terminate or waive any obligation of Lenders relating to the purchase
of participations in Letters of Credit as provided in Section 2.4(e) without
the written consent of Administrative Agent and of Issuing Bank; or

(vi)   amend,
modify, terminate or waive any provision of Section 9 as the same applies
to any Agent, or any other provision hereof as the same applies to the rights
or obligations of any Agent, in each case without the consent of such Agent.

(d)   Execution of Amendments, etc. Administrative
Agent may, but shall have no obligation to, with the concurrence of any Lender,
execute amendments, modifications, waivers or consents on behalf of such  Lender. Any waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
it was given. No notice to or demand on any Credit Party in any case shall
entitle any Credit Party to any other or further notice or demand in similar or
other circumstances. Any amendment, modification, termination, waiver or
consent effected in accordance with this Section 10.5 shall be binding
upon each Lender at the time outstanding, each future Lender and, if signed by
a Credit Party, on such Credit Party.

10.6.       Successors and Assigns; Participations.

(a)   Generally. This Agreement shall be
binding upon the parties hereto and their respective successors and assigns and
shall inure to the benefit of the parties hereto and the successors and assigns
of Lenders. No Credit Party’s rights or obligations hereunder nor any interest
therein may be assigned or delegated by any Credit Party without the prior
written

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consent of all Lenders. Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby and, to the extent expressly contemplated hereby, Affiliates
of each of the Agents and Lenders) any legal or equitable right, remedy or claim
under or by reason of this Agreement.

(b)   Register. Company, Administrative
Agent and Lenders shall deem and treat the Persons listed as Lenders in the
Register as the holders and owners of the corresponding Commitments and Loans
listed therein for all purposes hereof, and no assignment or transfer of any
such Commitment or Loan shall be effective, in each case, unless and until
recorded in the Register following receipt of (x) a written or electronic
confirmation of an assignment issued by a Settlement Service pursuant to Section 10.6(d) (a
“Settlement Confirmation”) or (y) an
Assignment Agreement effecting the assignment or transfer thereof, in each
case, as provided in Section 10.6(d). Each assignment shall be recorded in
the Register on the Business Day the Settlement Confirmation or Assignment
Agreement is received by the Administrative Agent, if received by 12:00 noon
New York City time, and on the following Business Day if received after such
time, prompt notice thereof shall be provided to Company and a copy of such
Assignment Agreement or Settlement Confirmation shall be maintained, as
applicable. The date of such recordation of a transfer shall be referred to
herein as the “Assignment Effective Date.”  Any request, authority or consent of any Person
who, at the time of making such request or giving such authority or consent, is
listed in the Register as a Lender shall be conclusive and binding on any
subsequent holder, assignee or transferee of the corresponding Commitments or
Loans. The Register shall be available for inspection by the Company or any
Lender at any reasonable time upon reasonable notice.

(c)   Right to Assign. Each Lender shall
have the right at any time to sell, assign or transfer all or a portion of its
rights and obligations under this Agreement, including, without limitation, all
or a portion of its Commitment or Loans owing to it or other Obligation (provided,
however, that each such assignment shall be of a uniform, and not
varying, percentage of all rights and obligations under and in respect of any
Loan and any related Commitments):

(i)   to any
Person meeting the criteria of clause (i) of the definition of the term of
“Eligible Assignee” upon the giving of notice to Administrative Agent; and

(ii)   to any
Person meeting the criteria of clause (ii) of the definition of the term “Eligible
Assignee” and, in the case of assignments of Revolving Loans or Revolving
Commitments to any such Person (except in the case of assignments made by or to
GSCP), consented to by each of Company and Administrative Agent (such consent
not to be (x) unreasonably withheld or delayed or, (y) in the case of
Company, required at any time an Event of Default shall have occurred and then
be continuing); provided, further each such assignment pursuant to this Section 10.6(c)(ii) shall
be in an aggregate

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amount of not less than (A) $5,000,000 (or such lesser
amount as may be agreed to by Company and Administrative Agent or as shall
constitute the aggregate amount of the Revolving Commitments and Revolving
Loans of the assigning Lender) with respect to the assignment of the Revolving
Commitments and Revolving Loans and (B) $1,000,000 (or such lesser amount
as may be agreed to by Company and Administrative Agent or as shall constitute
the aggregate amount of the Term Loan of the assigning Lender) with respect to
the assignment of Term Loans; provided further, that (1) simultaneous
assignments by or to two or more related funds will be treated as one
assignment for purposes of determining whether the minimum assignment
requirement is met and (2) no consent of Company or Administrative Agent
shall be required in connection with any assignments to or from GSCP during
primary syndication.

(d)   Mechanics. Assignments of Term Loans
by Lenders may be made via an electronic settlement system acceptable to
Administrative Agent as designated in writing from time to time to the Lenders
by Administrative Agent (the “Settlement
Service”). Each such assignment shall be effected by the assigning
Lender and proposed assignee pursuant to the procedures then in effect under
the Settlement Service, which procedures shall be consistent with the other
provisions of this Section 10.6. Each assignor Lender and proposed
assignee shall comply with the requirements of the Settlement Service in
connection with effecting any transfer of Loans pursuant to the Settlement
Service. Administrative Agent’s and Company’s consent shall be deemed to have
been granted pursuant to Section 10.6(c)(ii) with respect to any
transfer effected through the Settlement Service. Subject to the other
requirements of this Section 10.6, assignments and assumptions of Term
Loans may also be effected by manual execution and delivery to the
Administrative Agent of an Assignment Agreement with, in the case of assignments to Persons meeting the requirements of clause (ii) of
the definition of “Eligible Assignee”, the prior written consent of each
of Company and Administrative Agent (such consent not to be (x) unreasonably
withheld or delayed or (y) in the case of Company, required at any time an
Event of Default shall have occurred and then be continuing). Initially,
assignments and assumptions of Term Loans shall be effected by such manual
execution until Administrative Agent notifies Lenders to the contrary. Assignments
and assumptions of Revolving Loans and Revolving Commitments shall only be
effected by manual execution and delivery to the Administrative Agent of an
Assignment Agreement. Assignments made pursuant to the foregoing provision
shall be effective as of the Assignment Effective Date. In connection with all
assignments there shall be delivered to Administrative Agent such forms,
certificates or other evidence, if any, with respect to United States federal
income tax withholding matters as the assignee under such Assignment Agreement
may be required to deliver pursuant to Section 2.20(c). Notwithstanding
anything herein or in any Assignment Agreement to the contrary and (i) unless
notice to the contrary is delivered to the Lenders from the Administrative Agent
or (ii) so long as no Default or Event of Default has occurred and is
continuing, payment to the assignor by the assignee in respect of the
settlement of an assignment of any Term Loan (but not any

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Revolving
Loan or Revolving Commitment) shall include such compensation to the assignor
as may be agreed upon by the assignor and the assignee with respect to all
unpaid interest which has accrued on such Term Loan to but excluding the
Assignment Effective Date. On and after the applicable Assignment Effective
Date, the applicable assignee shall be entitled to receive all interest paid or
payable with respect to the assigned Term Loan, whether such interest accrued
before or after the applicable Assignment Effective Date.

(e)   Representations and Warranties of Assignee.
Each Lender, upon execution and delivery hereof or upon succeeding to an
interest in the Commitments and Loans, as the case may be, represents and
warrants as of the Closing Date or as of the Assignment Effective Date  that (i) it is an Eligible Assignee; (ii) it
has experience and expertise in the making of or investing in commitments or
loans such as the applicable Commit­ments or Loans, as the case may be; and (iii) it
will make or invest in, as the case may be, its Commitments or Loans for its
own account in the ordinary course of its business and without a view to
distribution of such Commitments or Loans within the meaning of the Securities
Act or the Exchange Act or other federal securities laws (it being understood
that, subject to the provisions of this Section 10.6, the disposition of
such Revolving Commitments or Loans or any interests therein shall at all times
remain within its exclusive control).

(f)   Effect of Assignment. Subject to the
terms and conditions of this Section 10.6, as of the Assignment Effective
Date: (i) the assignee thereunder shall have the rights and obligations of
a “Lender” hereunder to the extent of its interest in the Loans and Commitments
as reflected in the Register and shall thereafter be a party hereto and a “Lender”
for all purposes hereof; (ii) the assigning Lender thereunder shall, to
the extent that rights and obligations hereunder have been assigned to the
assignee, relinquish its rights (other than any rights which survive the
termination hereof under Section 10.8) and be released from its
obligations hereunder (and, in the case of an assignment covering all or the
remaining portion of an assigning Lender’s rights and obligations hereunder,
such Lender shall cease to be a party hereto on the Assignment Effective Date; provided,
anything contained in any of the Credit Documents to the contrary
notwithstanding, (y) Issuing Bank shall continue to have all rights and
obligations thereof with respect to such Letters of Credit until the
cancellation or expiration of such Letters of Credit and the reimbursement of
any amounts drawn thereunder and (z) such assigning Lender shall continue
to be entitled to the benefit of all indemnities hereunder as specified herein
with respect to matters arising out of the prior involvement of such assigning
Lender as a Lender hereunder); (iii) the Commitments shall be modified to
reflect the Commitment of such assignee and any Revolving Commitment of such
assigning Lender, if any; and (iv) if any such assignment occurs after the
issuance of any Note hereunder, the assigning Lender shall, upon the
effectiveness of such assignment or as promptly thereafter as practicable,
surrender its applicable Notes to Administrative Agent for cancellation, and
thereupon Company shall issue and deliver new Notes, if so requested by the
assignee and/or assigning Lender, to such assignee and/or to such

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assigning
Lender, with appropriate insertions, to reflect the new Revolving Commitments
and/or outstanding Loans of the assignee and/or the assigning Lender.

(g)   Participations. Each Lender shall have
the right at any time to sell one or more participations to any Person (other
than Holdings, any of its Subsidiaries or any of its Affiliates) in all or any
part of its Commitments, Loans or in any other Obligation. The holder of any
such participation, other than an Affiliate of the Lender granting such
participation, shall not be entitled to require such Lender to take or omit to
take any action hereunder, or to consent to any action to be taken or omitted
hereunder by such Lender, except with respect to any amendment, modification or
waiver that would (i) extend the final scheduled maturity of any Loan,
Note or Letter of Credit (unless such Letter of Credit is not extended beyond
the Revolving Commitment Termination Date) in which such participant is
participating, or reduce the rate or extend the time of payment of interest or
fees thereon (except in connection with a waiver of applicability of any post-default
increase in interest rates) or reduce the principal amount thereof, or increase
the amount of the participant’s participation over the amount thereof then in
effect (it being understood that a waiver of any Default or Event of Default or
of a mandatory reduction in the Commitment shall not constitute a change in the
terms of such participation, and that an increase in any Commitment or Loan
shall be permitted without the consent of any participant if the participant’s
participation is not increased as a result thereof), (ii) consent to the
assignment or transfer by any Credit Party of any of its rights and obligations
under this Agreement (except as otherwise expressly permitted by a Credit
Document) or (iii) release all or substantially all of the Collateral
under the Collateral Documents (except as expressly provided in the Credit
Documents) supporting the Loans hereunder in which such participant is
participating.  Company agrees that each
participant shall be entitled to the benefits of Sections 2.18(c), 2.19 and
2.20 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (c) of this Section; provided, (i) a
participant shall not be entitled to receive any greater payment under Section 2.19
or 2.20 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such participant, unless the sale of the
participation to such participant is made with Company’s prior written consent
and (ii) a participant that would be a Non-US Lender if it were a
Lender shall not be entitled to the benefits of Section 2.20 unless
Company is notified of the participation sold to such participant and such
participant agrees, for the benefit of Company, to comply with Section 2.20
as though it were a Lender. To the extent permitted by law, each participant
also shall be entitled to the benefits of Section 10.4 as though it were a
Lender, provided such Participant agrees to be subject to Section 2.17 as
though it were a Lender.

(h)   Certain Other Assignments. In addition
to any other assignment permitted pursuant to this Section 10.6, any
Lender may assign and/or pledge all or any portion of its Loans, the other
Obligations owed by or to such Lender, and its Notes, if any, to secure
obligations of such Lender including, without limitation, any Federal Reserve
Bank as collateral

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security
pursuant to Regulation A of the Board of Governors of the Federal Reserve
System and any operating circular issued by such Federal Reserve Bank; provided,
no Lender, as between Company and such Lender, shall be relieved of any of its
obligations hereunder as a result of any such assignment and pledge, and provided
further, in no event shall the applicable Federal Reserve Bank, pledgee
or trustee be considered to be a “Lender” or be entitled to require the
assigning Lender to take or omit to take any action hereunder.

10.7.       Independence of Covenants. All covenants
hereunder shall be given independent effect so that if a particular action or
condition is not permitted by any of such covenants, the fact that it
would be permitted by an exception to, or would otherwise be within the
limitations of, another covenant shall not avoid the occurrence of a Default or
an Event of Default if such action is taken or condition exists.

10.8.       Survival of Representations, Warranties and Agreements. All
representations, warranties and agreements made herein shall survive the
execution and delivery hereof
and the making of any Credit Extension. Notwithstanding anything herein or
implied by law to the contrary, the agreements of each Credit Party set forth
in Sections 2.18(c), 2.19, 2.20, 10.2, 10.3 and 10.4 and the agreements of
Lenders set forth in Sections 2.17, 9.3(b) and 9.6 shall survive the
payment of the Loans, the cancellation or expiration of the Letters of Credit
and the reimbursement of any amounts drawn thereunder, and the termination
hereof.

10.9.       No Waiver; Remedies Cumulative. No failure
or delay on the part of any Agent or any Lender in the exercise of any power,
right or privilege hereunder or under any other Credit Document
shall impair such power, right or privilege or be construed to be a waiver of
any default or acquiescence therein, nor shall any single or partial exercise
of any such power, right or privilege preclude other or further exercise thereof
or of any other power, right or privilege. The rights, powers and remedies
given to each Agent and each Lender hereby are cumulative and shall be in
addition to and independent of all rights, powers and remedies existing by
virtue of any statute or rule of law or in any of the other Credit
Documents or any of the Hedge Agreements. Any forbearance or failure to
exercise, and any delay in exercising, any right, power or remedy hereunder
shall not impair any such right, power or remedy or be construed to be a waiver
thereof, nor shall it preclude the further exercise of any such right, power or
remedy.

10.10.     Marshalling; Payments Set Aside. Neither any
Agent nor any Lender shall be under any obligation to marshal any assets in
favor of any Credit Party or any other Person or against or
in payment of any or all of the Obligations. To the extent that any Credit
Party makes a payment or payments to Administrative Agent or Lenders (or to
Administrative Agent, on behalf of Lenders), or Administrative Agent or Lenders
enforce any security interests or exercise their rights of setoff, and such
payment or payments or the proceeds of such enforcement or setoff or any part
thereof are subsequently invalidated, declared to be fraudulent or
preferential,

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set aside and/or required
to be repaid to a trustee, receiver or any other party under any bankruptcy
law, any other state or federal law, common law or any equitable cause, then,
to the extent of such recovery, the obligation or part thereof originally
intended to be satisfied, and all Liens, rights and remedies therefor or
related thereto, shall be revived and continued in full force and effect as if
such payment or payments had not been made or such enforcement or setoff had
not occurred.

10.11.     Severability. In case any provision in or
obligation hereunder or any Note shall be invalid, illegal or unenforceable in
any jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

10.12.     Obligations Several; Independent Nature of Lenders’ Rights. The
obligations of Lenders hereunder are several and no Lender shall be responsible
for the obligations or
Commitment of any other Lender hereunder. Nothing contained herein or in any
other Credit Document, and no action taken by Lenders pursuant hereto or
thereto, shall be deemed to constitute Lenders as a partnership, an
association, a joint venture or any other kind of entity. The amounts payable
at any time hereunder to each Lender shall be a separate and independent debt,
and subject to the final paragraph of Section 8 and Section 9.8(b),
each Lender shall be entitled to protect and enforce its rights arising
hereunder and it shall not be necessary for any other Lender to be joined as an
additional party in any proceeding for such purpose.

10.13.     Headings. Section headings herein are
included herein for convenience of reference only and shall not constitute a
part hereof for any other purpose or be given any
substantive effect.

10.14.     APPLICABLE LAW. THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.

10.15.     CONSENT TO JURISDICTION. ALL JUDICIAL
PROCEEDINGS BROUGHT AGAINST ANY CREDIT PARTY ARISING OUT OF OR RELATING HERETO OR TO ANY OTHER CREDIT DOCUMENT,
OR TO ANY OF THE OBLIGATIONS, MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT
OF COMPETENT JURISDICTION IN THE STATE AND COUNTY OF NEW YORK. BY EXECUTING AND
DELIVERING THIS AGREEMENT, EACH CREDIT PARTY, FOR ITSELF AND IN CONNECTION WITH
ITS PROPERTIES, IRREVOCABLY (a) ACCEPTS GENERALLY AND UNCONDITIONALLY THE
NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (b) WAIVES ANY DEFENSE
OF

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FORUM NON CONVENIENS; (c) AGREES
THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE
MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE
APPLICABLE CREDIT PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 10.1;
(d) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (c) ABOVE IS SUFFICIENT
TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE CREDIT PARTY IN ANY SUCH
PROCEED­ING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING
SERVICE IN EVERY RESPECT; AND (e) AGREES THAT AGENTS AND LENDERS RETAIN
THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING
PROCEEDINGS AGAINST ANY CREDIT PARTY IN THE COURTS OF ANY OTHER JURISDICTION.

10.16.     WAIVER OF JURY TRIAL. EACH OF THE
PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER CREDIT DOCUMENTS OR
ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS LOAN
TRANSACTION OR THE LENDER/COMPANY RELATIONSHIP THAT IS BEING ESTABLISHED. THE
SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL
DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT
MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF
DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO
ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS
RELATION­SHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO
THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS
RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WAR­RANTS AND REPRESENTS
THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY
AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED
EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY
REFERRING TO THIS SECTION 10.16 AND EXECUTED BY EACH OF THE PARTIES
HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT DOCUMENTS OR TO
ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS

 142
 

 

MADE HEREUNDER. IN THE EVENT OF
LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY
THE COURT.

10.17.     Confidentiality. Each Lender shall hold all
non-public informa­tion regarding Holdings and its Subsidiaries and their
businesses identified as such by Company and
obtained by such Lender pursuant to the requirements hereof  in accordance with such Lender’s customary
procedures for handling confidential information of  such nature, it being understood and agreed
by Company that, in any event, a Lender may make (i) disclosures of such
information to Affiliates of such Lender and to their agents and advisors (and
to other persons authorized by a Lender or Agent to organize, present or
disseminate such information in connection with disclosures otherwise made in
accordance with this Section 10.17), (ii) disclosures of such
information reasonably required by any pledgee under Section 10.6(h) or
any bona fide or potential assignee, transferee or partici­pant in connection
with the contem­plated assignment, transfer or participation by such Lender of
any Loans or any participations therein or by any direct or indirect
contractual counterparties (or the profession­al advisors thereto) in Hedge
Agreements (provided, such counterparties and advisors are advised of and agree
to be bound by the provisions of this Section 10.17), (iii) disclosure
to any rating agency when required by it, provided that, prior to any
disclosure, such rating agency shall undertake in writing to preserve the
confidentiality of any confidential information relating to the Credit Parties
received by it from any of the Agents or any Lender, and (iv) disclo­sures
required or requested by any govern­mental agency or repre­sentative thereof or
by the NAIC or pursuant to legal or judicial process; provided, unless
specifically prohibited by applicable law or court order, each Lender shall
make reasonable efforts to notify Company of any request by any governmental agency
or repre­sentative thereof (other than any such request in connection with any
examina­tion of the financial condition or other routine examination of such
Lender by such governmental agency) for disclosure of any such non-public
information prior to disclosure of such informa­tion.

10.18.     Usury Savings Clause. Notwithstanding any
other provision herein, the aggregate interest rate charged with respect to any
of the Obligations, including all charges
or fees in connection therewith deemed in the nature of interest under
applicable law shall not exceed the Highest Lawful Rate. If the rate of
interest (determined without regard to the preceding sentence) under this
Agreement at any time exceeds the Highest Lawful Rate, the outstanding amount
of the Loans made hereunder shall bear interest at the Highest Lawful Rate
until the total amount of interest due hereunder equals the amount of interest
which would have been due hereunder if the stated rates of interest set forth
in this Agreement had at all times been in effect. In addition, if when the
Loans made hereunder are repaid in full the total interest due hereunder
(taking into account the increase provided for above) is less than the total
amount of interest which would have been due hereunder if the stated rates of
interest set forth in this Agreement had at all times been in effect, then to
the extent permitted by law, Company shall pay to Administrative Agent an
amount equal to the difference between the amount of interest

 143
 

 

paid and the amount of
interest which would have been paid if the Highest Lawful Rate had at all times
been in effect. Notwithstanding the foregoing, it is the intention of Lenders
and Company to conform strictly to any applicable usury laws. Accordingly, if
any Lender contracts for, charges, or receives any consideration which
constitutes interest in excess of the Highest Lawful Rate, then any such excess
shall be cancelled automatically and, if previously paid, shall at such Lender’s
option be applied to the outstanding amount of the Loans made hereunder or be
refunded to Company.

10.19.     Counterparts. This Agreement may be executed
in any number of counterparts, each of which when so executed and delivered
shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument.

10.20.     Effectiveness. This Agreement shall become
effective upon the execution of a counterpart hereof by each of the parties
hereto and receipt by Company and Administrative
Agent of written or telephonic notification of such execution and authorization
of delivery thereof.

10.21.     Patriot Act. Each Lender
and Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies Company that pursuant to the requirements of the Act, it is required to obtain, verify and
record information that identifies Company, which information includes the name
and address of Company and other information that will allow such Lender or
Administrative Agent, as applicable, to identify Company in accordance with the
Act.

10.22.     Electronic Execution of Assignments. The
words “execution,” “signed,” “signature” and words of like import in any
Assignment Agreement shall be deemed to include electronic
signatures or the keeping of records in electronic form, each of which shall be
of the same legal effect, validity or enforceability as a manually executed
signature or the use of a paper-based recordkeeping system, as the case may be,
to the extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, the New York State
Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

[Remainder of page intentionally
left blank]

 144

 

 

APPENDIX
A

TO CREDIT AND GUARANTY AGREEMENT

 

Revolving Commitments

 

On file with
Administrative Agent

 APPENDIX A-1

 

 

APPENDIX
B

TO CREDIT AND GUARANTY AGREEMENT

Notice Addresses

DYNCORP INTERNATIONAL INC.

c/o Veritas Capital Management II, L.L.C.

660 Madison Avenue, 14th Floor

New York, New York  10021

Attention: Robert McKeon

Telecopier: (212) 688-9411

DYNCORP INTERNATIONAL LLC

DIV CAPITAL CORPORATION

DTS AVIATION SERVICES, LLC

DYNCORP AEROSPACE OPERATIONS, LLC

DYNCORP INTERNATIONAL SERVICES, INC.

DYN MARINE SERVICES, LLC

DYN MARINE SERVICES OF VIRGINIA, LLC

SERVICES INTERNATIONAL LLC

WORLDWIDE HUMANITARIAN SERVICES LLC

DYNCORP INTERNATIONAL OF NIGERIA LLC

8445 Freeport Parkway, Suite 400

Irving, Texas 75063

Attention: Chief Financial Officer

Telecopier: (972) 929-2848

in each case, with a copy to:

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Attention:  Benjamin M. Polk

Telecopier: (212) 593-5955

 APPENDIX B-1
 

 

 

GOLDMAN SACHS
CREDIT PARTNERS L.P.,

as Joint Lead Arranger, Administrative Agent,

Collateral Agent, Syndication Agent, Swing Line Lender and a Lender

Goldman Sachs Credit Partners L.P.

85 Broad Street

New York, New York  10004

Attention:  Stephen King

Telecopier:  (212) 357-0932

with a copy to:

Goldman Sachs Credit Partners L.P.

85 Broad Street

New York, New York  10004

Attention: John Makrinos

Telecopier:  (212) 357-4597

 APPENDIX B-2
 

 

 

BEAR STEARNS
CORPORATE LENDING INC.,

as a Lender

Bear Stearns Corporate Lending Inc.

383 Madison Avenue

New York, New York  10179

Attention:  Stephen J. Kampf

Telecopier:  (917) 849-2127

with a copy to:

Bear Stearns Corporate Lending Inc.

383 Madison Avenue

New York, New York 10179

Attention: Victor Bulzacchelli

Telecopier:  (917) 849-0519

 APPENDIX B-3
 

 

 

BANK OF AMERICA,
N.A.,

as Issuing Bank, Documentation Agent and a Lender

1101 Wootton Parkway, 4th Floor

Rockville, Maryland 20852

Attention: Derinda Hammond

Telecopier: (301) 517-3140

 APPENDIX B-4Exhibit 10.30

 

July 28, 2005

Mr. James A. Tracy

44 Gammons Road

Newton, MA 02168

Dear Jim:

The purpose of this letter is to amend the offer
letter sent to you on July 18, 1997. The section on termination shall be
eliminated and replaced with the following section, as approved by the Board of
Directors at their meeting of July 25, 2005.

Termination:                        Your
employment may be terminated by the Company for cause. In the event the Company
terminates other than for cause, the Company will provide a lump sum severance
payment equal to twelve month’s salary upon termination and will maintain all
medical, dental and disability benefits for the same twelve month period.

	
  Yours truly,

  	
   

  	
   

  
	
  /s/ Ron Hadani

  	
   

  	
   

  
	
  Ron Hadani

  	
   

  	
   

  
	
  President/CEO

  	
   

  	
   

  
	
  Accepted:

  	
   

  	
   

  
	
  /s/ James A.
  Tracy

  	
   

  	
  Date: July 29, 2005

  
	
  James A. Tracy

  	
   

  	
   

  

 

Vision-Sciences, Inc.

9 Strathmore Road

Natick, MA 01760

Phone: 508-650-9971

Fax: 508-650-9976

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