Document:

Exhibit 10.1

 

[FORM OF RESTRICTED STOCK AGREEMENT]

 

RESTRICTED STOCK AGREEMENT UNDER

THE BENCHMARK ELECTRONICS, INC. 2000 STOCK AWARDS PLAN

dated as of [          ], between
Benchmark Electronics, Inc. (the “Company”),

a Texas Corporation, and [ ].

 

This Restricted Stock Agreement (the “Award
Agreement”) sets forth the terms and conditions of an award of [                           ]
shares of the Company’s common stock, $0.10 par value (the “Common Stock”),
that are subject to certain restrictions on transfer and risks of forfeiture
and other terms and conditions specified herein (the “Restricted Shares”) and
that are granted to you under the Benchmark Electronics, Inc. 2000 Stock
Awards Plan (the “Plan”).

 

THIS AWARD OF RESTRICTED SHARES IS SUBJECT TO
ALL TERMS AND CONDITIONS OF THE PLAN AND THIS AWARD AGREEMENT, INCLUDING,
WITHOUT LIMITATION, THE DISPUTE RESOLUTION PROVISIONS SET FORTH IN SECTION 10
OF THIS AWARD AGREEMENT.  BY SIGNING YOUR
NAME BELOW, YOU WILL HAVE CONFIRMED YOUR ACCEPTANCE OF THE TERMS AND CONDITIONS
OF THIS AWARD AGREEMENT.

 

SECTION 1.  The Plan.  This award of Restricted Shares is made
pursuant to the Plan, all the terms of which are hereby incorporated in this
Award Agreement.  In the event of any
conflict between the terms of the Plan and the terms of this Award Agreement,
the terms of this Award Agreement shall govern. 
In the event of any conflict between the terms of this Award Agreement
and the terms of any individual employment agreement between you and the
Company or any of its Affiliates (an “Employment Agreement”), the terms of your
Employment Agreement will govern.

 

SECTION 2.  Definitions.  Capitalized terms used in this Award
Agreement that are not defined in this Award Agreement have the meanings as
used or defined in the Plan.  As used in
this Award Agreement, the following terms have the meanings set forth below:

 

“Business Day” means a day
that is not a Saturday, a Sunday or a day on which banking institutions are
legally permitted to be closed in the City of New York.

 

“Vesting Date” means the date on which
your rights with respect to all or a portion of the Restricted Shares subject
to this Award Agreement may become fully vested, and the restrictions with
respect to such Restricted Shares may lapse, as provided in Section 3(a) of
this Award Agreement.

 

SECTION 3.  Vesting and Delivery.  (a)  Vesting.  On each Vesting Date set forth below, your
rights with respect to the number of Restricted Shares subject to this Award
Agreement that correspond to such Vesting Date, as specified in the chart
below, shall become vested, and the restrictions set forth in this Award
Agreement with respect to such Restricted Shares shall lapse, provided that you
must be employed by the Company or an Affiliate on the relevant Vesting Date in
order for your rights with respect 

 

 

to the applicable portion of the Restricted Shares to become vested and
the applicable restrictions to lapse, except as otherwise determined by the
Committee in its sole discretion or as otherwise provided in your Employment
Agreement.

 

	
  Vesting Date

  	
  Aggregate Percentage 

  Vested

  	
  Aggregate Number of Shares
  Vested

  
	
   

   

  	
   

  	
   

  
	
   

   

  	
   

  	
   

  
	
   

   

  	
   

  	
   

  

 

(b)  Delivery of Restricted Shares.  On or following the date of this Award
Agreement, the Restricted Shares awarded to you pursuant to this Award
Agreement shall be registered in your name and deposited into an account in
book-entry format with [Company’s Transfer Agent], and shall be held in the
account subject to the transfer restrictions described in this Award Agreement
and the Plan until such time, if any, as your rights with respect to such
Restricted Shares become vested.  Upon
the vesting of your rights with respect to such Restricted Shares, the
restrictions related to this account shall lapse in accordance with Section 3(a) of
this Agreement.

 

SECTION 4.  Forfeiture of Restricted
Shares.  Unless the Committee determines
otherwise, and except as otherwise provided in your Employment Agreement, if
your rights with respect to any Restricted Shares awarded to you pursuant to
this Award Agreement have not become vested prior to the date on which your
employment with the Company and its Affiliates terminates for any reason other
than a Change of Control, your rights with respect to such Restricted Shares
shall immediately terminate, and you will be entitled to no further payments or
benefits with respect thereto.

 

SECTION 5.  Voting Rights; Dividend
Equivalents.  Prior to the
date on which your rights with respect to a Restricted Share have become
vested, and the restrictions set forth in this Award Agreement with respect to
such Restricted Share have lapsed, you shall be entitled to exercise voting
rights with respect to such Restricted Share and shall be entitled to receive
dividends or other distributions with respect thereto; provided that any
such dividends or distributions paid in shares of the Company’s Common Stock
shall constitute Restricted Shares and be subject to all of the same
restrictions as the Restricted Shares with respect to which they were paid.

 

SECTION 6.  Non-Transferability of
Restricted Shares.  Unless otherwise
provided by the Committee in its discretion, Restricted Shares may not be sold,
assigned, alienated, transferred, pledged, attached or otherwise encumbered
except as provided in Paragraph XIV(e) of the Plan.  Any purported sale, assignment, alienation,
transfer, 

 

2

 

pledge, attachment or other encumbrance of a Restricted Share in
violation of the provisions of this Section 6 and Paragraph XIV(e) of
the Plan shall be void.

 

SECTION 7.  Withholding, Consents and
Legends.  (a)  Withholding.  The delivery of share certificates pursuant
to Section 3(b) of this Award Agreement is conditioned on
satisfaction of any applicable withholding taxes in accordance with
Paragraph XIV(c) of the Plan; provided that you may elect to satisfy
any applicable withholding taxes (i) by having the Company retain share
certificates that you would have otherwise received upon vesting of your rights
with respect to such Restricted Shares or (ii) by delivery to the Company
of shares of Common Stock that you then own, in each case that have an
aggregate Fair Market Value (valued as of the day immediately prior to the date
of delivery of such share certificates) equal to the amount of such withholding
taxes.

 

(b)  Consents.  Your rights in respect of the Restricted
Shares are conditioned on the receipt to the full satisfaction of the Committee
of any required consents that the Committee may determine to be necessary or
advisable (including, without limitation, your consenting to the Company’s
supplying to any third-party recordkeeper of the Plan such personal information
as the Committee deems advisable to administer the Plan).

 

(c)  Legends.  The Company may affix to certificates for the
Restricted Shares issued pursuant to this Award Agreement any legend that the
Committee determines to be necessary or advisable (including to reflect any
restrictions to which you may be subject under any applicable securities
laws).  The Company may advise the applicable
transfer agent to place a stop order against any legended Restricted Shares.

 

SECTION 8.  Successors and Assigns of
the Company.  The terms
and conditions of this Award Agreement shall be binding upon and shall inure to
the benefit of the Company and its successors and assigns.

 

SECTION 9.  Committee Discretion.  The Committee shall have full and plenary
discretion with respect to any actions to be taken or determinations to be made
in connection with this Award Agreement, and its determinations shall be final,
binding and conclusive.

 

SECTION 10.  Dispute Resolution.  (a)  Jurisdiction and Venue.  Notwithstanding any provision in your
Employment Agreement, you and the Company hereby irrevocably submit to the
exclusive jurisdiction of (i) the United States District Court for the
Southern District of Texas and (ii) the courts of the State of Texas for
the purposes of any suit, action or other proceeding arising out of this Award
Agreement or the Plan.  You and the
Company agree to commence any such action, suit or proceeding either in the United
States District Court for the Southern District of Texas or, if such action,
suit or other proceeding may not be brought in such court for jurisdictional
reasons, in the courts of the State of Texas. 
You and the Company further agree that service of any process, summons,
notice or document by U.S. registered mail to the applicable address set forth
in Section 11 of this Award Agreement shall be effective 

 

3

 

service of process for any action, suit or proceeding in Texas with
respect to any matters to which you have submitted to jurisdiction in this Section 10(a).  You and the Company irrevocably and
unconditionally waive any objection to the laying of venue of any action, suit
or proceeding arising out of this Award Agreement or the Plan in (A) the
United States District Court for the Southern District of Texas or (B) the
courts of the State of Texas, and hereby and thereby further irrevocably and
unconditionally waive and agree not to plead or claim in any such court that
any such action, suit or proceeding brought in any such court has been brought
in an inconvenient forum.

 

(b)  Waiver of Jury Trial.  You and the Company hereby waive, to the
fullest extent permitted by applicable law, any right either of you may have to
a trial by jury in respect to any litigation directly or indirectly arising out
of, under or in connection with this Award Agreement or the Plan.

 

(c)  Confidentiality.  You hereby agree to keep confidential the
existence of, and any information concerning, a dispute described in this Section 10,
except that you may disclose information concerning such dispute to the court
that is considering such dispute or to your legal counsel (provided that such
counsel agrees not to disclose any such information other than as necessary to
the prosecution or defense of the dispute).

 

SECTION 11.  Notice.  All notices, requests, demands and other
communications required or permitted to be given under the terms of this Award
Agreement shall be in writing and shall be deemed to have been duly given when
delivered by hand or overnight courier or three Business Days after they have
been mailed by U.S. registered mail, return receipt requested, postage prepaid,
addressed to the other party as set forth below:

 

	
  If
  to the Company:

  	
   

  	
  Benchmark
  Electronics, Inc. 

  3000
  Technology Drive 

  Angleton,
  Texas 77515 

  Attention:
  Legal Dept.

  
	
   

  	
   

  	
   

  
	
  If to you:

  	
   

  	
  Your address on file with
  the Company.

  

 

The
parties may change the address to which notices under this Award Agreement
shall be sent by providing written notice to the other in the manner specified
above.

 

SECTION 12.  Headings.  Headings are given to the Sections and
subsections of this Award Agreement solely as a convenience to facilitate
reference.  Such headings shall not be
deemed in any way material or relevant to the construction or interpretation of
this Award Agreement or any provision hereof.

 

SECTION 13.  Amendment of this Award
Agreement.  The
Committee may waive any conditions or rights under, amend any terms of, or
alter, suspend, discontinue, cancel or terminate this Award Agreement
prospectively or retroactively; 

 

4

 

provided, however, that any such waiver, amendment,
alteration, suspension, discontinuance, cancelation or termination that would
materially and adversely impair your rights under this Award Agreement shall
not to that extent be effective without your consent (it being understood,
notwithstanding the foregoing proviso, that this Award Agreement and the
Restricted Shares shall be subject to the provisions of Paragraph XII of
the Plan).

 

SECTION 14.  Counterparts.  This Award Agreement may be signed in
counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.

 

IN WITNESS WHEREOF, the parties have duly
executed this Award Agreement as of the date first written above.

 

	
   

  	
  BENCHMARK
  ELECTRONICS, INC.

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  [                               ],

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

5Exhibit
10.1

 

AMENDED
AND RESTATED

CREDIT
AGREEMENT

 

DATED
AS OF MARCH 13, 2008,

 

AMONG

 

DG FASTCHANNEL, INC.,

 

THE GUARANTORS FROM TIME TO TIME PARTIES
HERETO,

 

THE LENDERS FROM TIME TO TIME PARTIES
HERETO,

 

AND

 

BANK OF MONTREAL,

 

AS ADMINISTRATIVE AGENT

 

BMO CAPITAL MARKETS,

AS SOLE LEAD ARRANGER AND  SOLE
BOOK RUNNER

 

WACHOVIA BANK, NATIONAL ASSOCIATION,

AS SYNDICATION AGENT

 

FIRST BANK,

FIRST TENNESSEE BANK NATIONAL ASSOCIATION,

CITIBANK, N.A.,

AS CO-DOCUMENTATION AGENTS

 

 

TABLE OF CONTENTS

 

	
  SECTION

  	
   

  	
  HEADING

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
   

  	
  THE CREDIT FACILITIES

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
   

  	
  Term
  Loan Commitments

  	
   

  	
  1

  
	
  Section 1.2.

  	
   

  	
  Revolving
  Credit Commitments

  	
   

  	
  2

  
	
  Section 1.3.

  	
   

  	
  Letters
  of Credit

  	
   

  	
  2

  
	
  Section 1.4.

  	
   

  	
  Applicable
  Interest Rates

  	
   

  	
  6

  
	
  Section 1.5.

  	
   

  	
  Minimum
  Borrowing Amounts; Maximum Eurodollar Loans

  	
   

  	
  7

  
	
  Section 1.6.

  	
   

  	
  Manner
  of Borrowing Loans and Designating Applicable Interest Rates

  	
   

  	
  8

  
	
  Section 1.7.

  	
   

  	
  Swing
  Loans

  	
   

  	
  10

  
	
  Section 1.8.

  	
   

  	
  Maturity
  of Loans

  	
   

  	
  11

  
	
  Section 1.9.

  	
   

  	
  Prepayments

  	
   

  	
  12

  
	
  Section 1.10.

  	
   

  	
  Default
  Rate

  	
   

  	
  15

  
	
  Section 1.11.

  	
   

  	
  Evidence
  of Indebtedness

  	
   

  	
  15

  
	
  Section 1.12.

  	
   

  	
  Funding
  Indemnity

  	
   

  	
  16

  
	
  Section 1.13.

  	
   

  	
  Commitment
  Terminations

  	
   

  	
  16

  
	
  Section 1.14.

  	
   

  	
  Substitution
  of Lenders

  	
   

  	
  17

  
	
  Section 1.15.

  	
   

  	
  Term
  Increase

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
   

  	
  FEES

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
   

  	
  Fees

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
   

  	
  PLACE AND APPLICATION OF PAYMENTS

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
   

  	
  Place
  and Application of Payments

  	
   

  	
  19

  
	
  Section 3.2.

  	
   

  	
  Account
  Debit

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
   

  	
  GUARANTIES AND COLLATERAL

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
   

  	
  Guaranties

  	
   

  	
  21

  
	
  Section 4.2.

  	
   

  	
  Collateral

  	
   

  	
  21

  
	
  Section 4.3.

  	
   

  	
  Liens
  on Real Property

  	
   

  	
  22

  
	
  Section 4.4.

  	
   

  	
  Further
  Assurances

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
   

  	
  DEFINITIONS; INTERPRETATION

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
   

  	
  Definitions

  	
   

  	
  22

  
	
  Section 5.2.

  	
   

  	
  Interpretation

  	
   

  	
  43

  
	
  Section 5.3.

  	
   

  	
  Change
  in Accounting Principles

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
   

  	
  Organization
  and Qualification

  	
   

  	
  44

  
	
  Section 6.2.

  	
   

  	
  Subsidiaries

  	
   

  	
  44

  

 

 

	
  Section 6.3.

  	
   

  	
  Authority
  and Validity of Obligations

  	
   

  	
  44

  
	
  Section 6.4.

  	
   

  	
  Use of
  Proceeds; Margin Stock

  	
   

  	
  45

  
	
  Section 6.5.

  	
   

  	
  Financial
  Reports

  	
   

  	
  45

  
	
  Section 6.6.

  	
   

  	
  No
  Material Adverse Change

  	
   

  	
  46

  
	
  Section 6.7.

  	
   

  	
  Full
  Disclosure

  	
   

  	
  46

  
	
  Section 6.8.

  	
   

  	
  Trademarks,
  Franchises, and Licenses

  	
   

  	
  46

  
	
  Section 6.9.

  	
   

  	
  Governmental
  Authority and Licensing

  	
   

  	
  46

  
	
  Section 6.10.

  	
   

  	
  Good
  Title

  	
   

  	
  46

  
	
  Section 6.11.

  	
   

  	
  Litigation
  and Other Controversies

  	
   

  	
  46

  
	
  Section 6.12.

  	
   

  	
  Taxes

  	
   

  	
  47

  
	
  Section 6.13.

  	
   

  	
  Approvals

  	
   

  	
  47

  
	
  Section 6.14.

  	
   

  	
  Affiliate
  Transactions

  	
   

  	
  47

  
	
  Section 6.15.

  	
   

  	
  Investment
  Company

  	
   

  	
  47

  
	
  Section 6.16.

  	
   

  	
  ERISA

  	
   

  	
  47

  
	
  Section 6.17.

  	
   

  	
  Compliance
  with Laws

  	
   

  	
  47

  
	
  Section 6.18.

  	
   

  	
  Other
  Agreements

  	
   

  	
  48

  
	
  Section 6.19.

  	
   

  	
  Solvency

  	
   

  	
  48

  
	
  Section 6.20.

  	
   

  	
  No
  Broker Fees.

  	
   

  	
  48

  
	
  Section 6.21.

  	
   

  	
  No
  Default

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
   

  	
  CONDITIONS PRECEDENT

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
   

  	
  All
  Credit Events

  	
   

  	
  49

  
	
  Section 7.2.

  	
   

  	
  Effective
  Date

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
   

  	
  COVENANTS

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
   

  	
  Maintenance
  of Business

  	
   

  	
  51

  
	
  Section 8.2.

  	
   

  	
  Maintenance
  of Properties

  	
   

  	
  52

  
	
  Section 8.3.

  	
   

  	
  Taxes
  and Assessments

  	
   

  	
  52

  
	
  Section 8.4.

  	
   

  	
  Insurance

  	
   

  	
  52

  
	
  Section 8.5.

  	
   

  	
  Financial
  Reports

  	
   

  	
  52

  
	
  Section 8.6.

  	
   

  	
  Inspection

  	
   

  	
  54

  
	
  Section 8.7.

  	
   

  	
  Borrowings
  and Guaranties

  	
   

  	
  54

  
	
  Section 8.8.

  	
   

  	
  Liens

  	
   

  	
  56

  
	
  Section 8.9.

  	
   

  	
  Investments,
  Acquisitions, Loans and Advances

  	
   

  	
  57

  
	
  Section 8.10.

  	
   

  	
  Mergers,
  Consolidations and Sales

  	
   

  	
  58

  
	
  Section 8.11.

  	
   

  	
  Maintenance
  of Subsidiaries

  	
   

  	
  59

  
	
  Section 8.12.

  	
   

  	
  Dividends
  and Certain Other Restricted Payments

  	
   

  	
  59

  
	
  Section 8.13.

  	
   

  	
  ERISA

  	
   

  	
  59

  
	
  Section 8.14.

  	
   

  	
  Compliance
  with Laws

  	
   

  	
  59

  
	
  Section 8.15.

  	
   

  	
  Burdensome
  Contracts With Affiliates

  	
   

  	
  60

  
	
  Section 8.16.

  	
   

  	
  No
  Changes in Fiscal Year

  	
   

  	
  60

  
	
  Section 8.17.

  	
   

  	
  Formation
  of Subsidiaries

  	
   

  	
  61

  
	
  Section 8.18.

  	
   

  	
  Change
  in the Nature of Business

  	
   

  	
  61

  
	
  Section 8.19.

  	
   

  	
  Use of
  Proceeds

  	
   

  	
  61

  
	
  Section 8.20.

  	
   

  	
  No
  Restrictions

  	
   

  	
  61

  

 

ii

 

	
  Section 8.21.

  	
   

  	
  Subordinated
  Debt

  	
   

  	
  61

  
	
  Section 8.22.

  	
   

  	
  Financial
  Covenants

  	
   

  	
  62

  
	
  Section 8.23.

  	
   

  	
  Hedging
  Facilities.

  	
   

  	
  63

  
	
  Section 8.24.

  	
   

  	
  Deposit
  Accounts.

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
   

  	
  EVENTS OF DEFAULT AND REMEDIES

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
   

  	
  Events
  of Default

  	
   

  	
  63

  
	
  Section 9.2.

  	
   

  	
  Non-Bankruptcy
  Defaults

  	
   

  	
  65

  
	
  Section 9.3.

  	
   

  	
  Bankruptcy
  Defaults

  	
   

  	
  66

  
	
  Section 9.4.

  	
   

  	
  Collateral
  for Undrawn Letters of Credit

  	
   

  	
  66

  
	
  Section 9.5.

  	
   

  	
  Notice
  of Default

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
   

  	
  CHANGE IN CIRCUMSTANCES

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1.

  	
   

  	
  Change
  of Law

  	
   

  	
  67

  
	
  Section 10.2.

  	
   

  	
  Unavailability
  of Deposits or Inability to Ascertain, or Inadequacy of, LIBOR

  	
   

  	
  67

  
	
  Section 10.3.

  	
   

  	
  Increased
  Cost and Reduced Return

  	
   

  	
  68

  
	
  Section 10.4.

  	
   

  	
  Lending
  Offices

  	
   

  	
  69

  
	
  Section 10.5.

  	
   

  	
  Discretion
  of Lender as to Manner of Funding

  	
   

  	
  69

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
   

  	
  THE ADMINISTRATIVE AGENT

  	
   

  	
  70

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 11.1.

  	
   

  	
  Appointment
  and Authorization of Administrative Agent

  	
   

  	
  70

  
	
  Section 11.2.

  	
   

  	
  Administrative
  Agent and its Affiliates

  	
   

  	
  70

  
	
  Section 11.3.

  	
   

  	
  Action
  by Administrative Agent

  	
   

  	
  70

  
	
  Section 11.4.

  	
   

  	
  Consultation
  with Experts

  	
   

  	
  71

  
	
  Section 11.5.

  	
   

  	
  Liability
  of Administrative Agent; Credit Decision

  	
   

  	
  71

  
	
  Section 11.6.

  	
   

  	
  Indemnity

  	
   

  	
  71

  
	
  Section 11.7.

  	
   

  	
  Resignation
  of Administrative Agent and Successor Administrative Agent

  	
   

  	
  72

  
	
  Section 11.8.

  	
   

  	
  L/C
  Issuer and Swing Line Lender.

  	
   

  	
  72

  
	
  Section 11.9.

  	
   

  	
  Hedging
  Liability and Funds Transfer and Deposit Account Liability Arrangements

  	
   

  	
  73

  
	
  Section 11.10.

  	
   

  	
  Designation
  of Additional Agents

  	
   

  	
  73

  
	
  Section 11.11.

  	
   

  	
  Authorization
  to Release or Subordinate or Limit Liens

  	
   

  	
  73

  
	
  Section 11.12.

  	
   

  	
  Authorization
  to Enter into, and Enforcement of, the Collateral Documents and Subordination
  Agreements

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
   

  	
  THE GUARANTEES

  	
   

  	
  74

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 12.1.

  	
   

  	
  The
  Guarantees

  	
   

  	
  74

  
	
  Section 12.2.

  	
   

  	
  Guarantee
  Unconditional

  	
   

  	
  75

  
	
  Section 12.3.

  	
   

  	
  Discharge
  Only upon Payment in Full; Reinstatement in Certain Circumstances

  	
   

  	
  76

  
	
  Section 12.4.

  	
   

  	
  Subrogation

  	
   

  	
  76

  
	
  Section 12.5.

  	
   

  	
  Waivers

  	
   

  	
  76

  

 

iii

 

	
  Section 12.6.

  	
   

  	
  Limit
  on Recovery

  	
   

  	
  76

  
	
  Section 12.7.

  	
   

  	
  Stay
  of Acceleration

  	
   

  	
  76

  
	
  Section 12.8.

  	
   

  	
  Benefit
  to Guarantors

  	
   

  	
  77

  
	
  Section 12.9.

  	
   

  	
  Guarantor
  Covenants

  	
   

  	
  77

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 13.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  77

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 13.1.

  	
   

  	
  Withholding
  Taxes

  	
   

  	
  77

  
	
  Section 13.2.

  	
   

  	
  No
  Waiver, Cumulative Remedies

  	
   

  	
  78

  
	
  Section 13.3.

  	
   

  	
  Non-Business
  Days

  	
   

  	
  78

  
	
  Section 13.4.

  	
   

  	
  Documentary
  Taxes

  	
   

  	
  79

  
	
  Section 13.5.

  	
   

  	
  Survival
  of Representations

  	
   

  	
  79

  
	
  Section 13.6.

  	
   

  	
  Survival
  of Indemnities

  	
   

  	
  79

  
	
  Section 13.7.

  	
   

  	
  Sharing
  of Set-Off

  	
   

  	
  79

  
	
  Section 13.8.

  	
   

  	
  Notices

  	
   

  	
  79

  
	
  Section 13.9.

  	
   

  	
  Counterparts

  	
   

  	
  80

  
	
  Section 13.10.

  	
   

  	
  Successors
  and Assigns

  	
   

  	
  80

  
	
  Section 13.11.

  	
   

  	
  Participants

  	
   

  	
  80

  
	
  Section 13.12.

  	
   

  	
  Assignments

  	
   

  	
  81

  
	
  Section 13.13.

  	
   

  	
  Amendments

  	
   

  	
  83

  
	
  Section 13.14.

  	
   

  	
  Headings

  	
   

  	
  84

  
	
  Section 13.15.

  	
   

  	
  Costs
  and Expenses; Indemnification

  	
   

  	
  84

  
	
  Section 13.16.

  	
   

  	
  Set-off

  	
   

  	
  85

  
	
  Section 13.17.

  	
   

  	
  Entire
  Agreement

  	
   

  	
  86

  
	
  Section 13.18.

  	
   

  	
  Governing
  Law

  	
   

  	
  86

  
	
  Section 13.19.

  	
   

  	
  Severability
  of Provisions

  	
   

  	
  86

  
	
  Section 13.20.

  	
   

  	
  Excess
  Interest

  	
   

  	
  86

  
	
  Section 13.21.

  	
   

  	
  Construction

  	
   

  	
  87

  
	
  Section 13.22.

  	
   

  	
  Lender’s
  and L/C Issuer ‘s Obligations Several

  	
   

  	
  87

  
	
  Section 13.23.

  	
   

  	
  Submission
  to Jurisdiction; Waiver of Jury Trial

  	
   

  	
  87

  
	
  Section 13.24.

  	
   

  	
  USA
  Patriot Act

  	
   

  	
  87

  
	
  Section 13.25.

  	
   

  	
  Confidentiality

  	
   

  	
  87

  
	
  Section 13.26.

  	
   

  	
  Equalization
  of Loans and Commitments

  	
   

  	
  88

  
	
  Section 13.27.

  	
   

  	
  Amendment
  and Restatement

  	
   

  	
  88

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature Page

  	
   

  	
   

  	
   

  	
  S-1

  

 

	
  EXHIBIT A

  	
  —

  	
  Notice of Payment Request

  
	
  EXHIBIT B

  	
  —

  	
  Notice of
  Borrowing

  
	
  EXHIBIT C

  	
  —

  	
  Notice of
  Continuation/Conversion

  
	
  EXHIBIT D-1

  	
  —

  	
  Term A Note

  
	
  EXHIBIT D-2

  	
  —

  	
  Acquisition Note

  
	
  EXHIBIT D-3

  	
  —

  	
  Revolving Note

  
	
  EXHIBIT D-4

  	
  —

  	
  Swing Note

  
	
  EXHIBIT E

  	
  —

  	
  Compliance
  Certificate

  
	
  EXHIBIT F

  	
  —

  	
  Additional
  Guarantor Supplement

  

 

iv

 

	
  EXHIBIT G

  	
  —

  	
  Assignment and Acceptance

  
	
  EXHIBIT H

  	
  —

  	
  Term Loan Increase Request

  
	
  SCHEDULE 1

  	
  —

  	
  Commitments

  
	
  SCHEDULE 1.3

  	
  —

  	
  Existing L/Cs

  
	
  SCHEDULE 6.2

  	
  —

  	
  Subsidiaries

  
	
  SCHEDULE 6.11

  	
  —

  	
  Litigation

  
	
  SCHEDULE 6.14

  	
  —

  	
  Affiliate Transactions

  
	
  SCHEDULE 8.7

  	
  —

  	
  Indebtedness

  
	
  SCHEDULE 8.8

  	
  —

  	
  Liens

  
	
  SCHEDULE 8.9

  	
  —

  	
  Existing Investments

  

 

v

 

 

AMENDED
AND RESTATED

CREDIT AGREEMENT

 

This Amended and Restated
Credit Agreement is entered into as of March 13, 2008, by and among DG
FastChannel, Inc., a Delaware corporation (the “Borrower”),
the direct and indirect Subsidiaries of the Borrower from time to time party to
this Agreement, as Guarantors, the several financial institutions from time to
time party to this Agreement, as Lenders, and BANK OF MONTREAL, a Canadian
chartered bank acting through its Chicago branch, as Administrative Agent as
provided herein.  All capitalized terms
used herein without definition shall have the same meanings herein as such
terms are defined in Section 5.1 hereof.

 

PRELIMINARY STATEMENT

 

 The Borrower, the Guarantors party thereto, the
Lenders party thereto and Bank of Montreal, as Administrative Agent, are
currently party to that certain Credit Agreement dated as of August 9,
2007 (as supplemented, the “Original Credit Agreement”).  The Borrower hereby requests that certain
amendments be made to the Original Credit Agreement and, for the sake of
clarity and convenience, that the Original Credit Agreement be restated as so
amended.

 

 NOW, THEREFORE, in consideration of the
recitals set forth above, which by this reference are incorporated into this
Agreement set forth below, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged and subject to the
terms and conditions hereof and on the basis of the representations and
warranties herein set forth, the Borrower, the Guarantors, the Lenders, and the
Administrative Agent, hereby agree that upon satisfaction of the conditions
precedent to the initial Credit Event hereinafter set forth, the Original
Credit Agreement and all of the Exhibits and Schedules thereto shall be amended
and as so amended shall be restated in their entirety (but shall not constitute
a novation) to read as follows:

 

SECTION 1.                                                 THE CREDIT
FACILITIES.

 

                Section 1.1.       Term Loan Commitments.  (a) Subject to the terms and conditions
hereof, each Lender, by its acceptance hereof, severally agrees to make a loan
(individually a “Term A Loan” and collectively
for all the Lenders the “Term A Loans”)
in U.S. Dollars to the Borrower in the amount of such Lender’s Term A Loan
Commitment.  The Term A Loans shall
be advanced in a single Borrowing on the Closing Date and shall be made ratably
by the Lenders in proportion to their respective Term A Loan Percentages, at
which time the Term A Loan Commitments shall expire.  As provided in Section 1.6(a) hereof,
the Borrower may elect that the Term A Loans be outstanding as Base Rate Loans
or Eurodollar Loans.  No amount repaid or
prepaid on any Term A Loan may be borrowed again.

 

 (b)  Subject to the terms and conditions
hereof, each Lender, by its acceptance hereof, severally agrees to make a loan
or loans (individually an “Acquisition Loan”
and collectively for all the Lenders the “Acquisition Loans”)
in U.S. Dollars to the Borrower from time to time up to the amount of such
Lender’s Acquisition Credit Commitment, subject to any reductions thereof

 

 

 

pursuant to the terms
hereof, before the Acquisition Credit Commitment Termination Date.  Each Borrowing of Acquisition Loans shall be
made ratably by the Lenders in proportion to their respective Acquisition
Percentages and shall reduce the Acquisition Credit Commitments by the
principal amount of such Borrowing.  As
provided in Section 1.6(a) hereof, the Borrower may elect that each
Borrowing of Acquisition Loans be either Base Rate Loans or Eurodollar
Loans.  No amount repaid or prepaid on
any Acquisition Loan may be borrowed again.

 

                Section 1.2.       Revolving Credit Commitments.  Subject to the terms and conditions hereof,
each Lender, by its acceptance hereof, severally agrees to make a loan or loans
(individually a “Revolving Loan” and collectively
for all the Lenders the “Revolving Loans”)
in U.S. Dollars to the Borrower from time to time on a revolving basis up to
the amount of such Lender’s Revolving Credit Commitment, subject to any
reductions thereof pursuant to the terms hereof, before the Revolving Credit
Termination Date.  The sum of the
aggregate principal amount of Revolving Loans, Swing Loans, and L/C Obligations
at any time outstanding shall not exceed the Revolving Credit Commitments in
effect at such time.  Each Borrowing of
Revolving Loans shall be made ratably by the Lenders in proportion to their
respective Revolver Percentages.  As
provided in Section 1.6(a) hereof, the Borrower may elect that each
Borrowing of Revolving Loans be either Base Rate Loans or Eurodollar
Loans.  Revolving Loans may be repaid and
the principal amount thereof reborrowed before the Revolving Credit Termination
Date, subject to the terms and conditions hereof.

 

                Section 1.3.       Letters of Credit.  (a) General Terms.  Subject to the terms and conditions hereof,
as part of the Revolving Credit, the L/C Issuer shall issue standby
letters of credit (each a “Letter of Credit”)
for the account of Borrower or for the account of the Borrower and one or more
of its Subsidiaries in an aggregate undrawn face amount up to the L/C
Sublimit.  Notwithstanding anything
herein to the contrary, the Existing L/Cs (all of which are listed and
described on Schedule 1.3 hereto) shall each constitute a “Letter of
Credit” herein for all purposes of the Agreement to the same extent,
and with the same force and effect, as if such Existing L/Cs had been issued at
the request of the Borrower under the Revolving Credit.  Each Letter of Credit shall be issued by the
L/C Issuer, but each Lender shall be obligated to reimburse the
L/C Issuer for such Lender’s Revolver Percentage of the amount of each
drawing thereunder and, accordingly, each Letter of Credit shall constitute
usage of the Revolving Credit Commitment of each Lender pro rata
in an amount equal to its Revolver Percentage of the L/C Obligations then
outstanding.

 

                (b)       Applications.  At any
time before the Revolving Credit Termination Date, the L/C Issuer shall,
at the request of the Borrower, issue one or more Letters of Credit in U.S.
Dollars, in a form satisfactory to the L/C Issuer, with expiration dates
no later than the earlier of 12 months from the date of issuance (or which are
cancelable not later than 12 months from the date of issuance and each renewal)
or thirty (30) days prior to the Revolving Credit Termination Date, in an
aggregate face amount as set forth above, upon the receipt of an application
duly executed by the Borrower and, if such Letter of Credit is for the account
of one of its Subsidiaries, such Subsidiary for the relevant Letter of Credit in
the form then customarily prescribed by the L/C Issuer for the Letter of
Credit requested (each an “Application”).  Notwithstanding anything contained in any
Application to the contrary:  (i) the
Borrower shall pay fees in connection with each Letter of Credit as set forth
in Section 2.1 hereof, (ii) except as

 

2

 

otherwise provided in Section 1.9
hereof, unless an Event of Default exists, the L/C Issuer will not call
for the funding by the Borrower of any amount under a Letter of Credit before
being presented with a drawing thereunder, and (iii) if the
L/C Issuer is not timely reimbursed for the amount of any drawing under a
Letter of Credit on the date such drawing is paid, the Borrower’s obligation to
reimburse the L/C Issuer for the amount of such drawing shall bear
interest (which the Borrower hereby promises to pay) from and after the date
such drawing is paid at a rate per annum equal to the sum of the Applicable
Margin for the Reimbursement Obligation plus the Base
Rate from time to time in effect (computed on the basis of a year of 365 or
366 days, as the case may be, and the actual number of days elapsed).  If the L/C Issuer issues any Letter of
Credit with an expiration date that is automatically extended unless the
L/C Issuer gives notice that the expiration date will not so extend beyond
its then scheduled expiration date, unless the Administrative Agent or the
Required Lenders instruct the L/C Issuer otherwise, the L/C Issuer will
give such notice of non-renewal before the time necessary to prevent such
automatic extension if before such required notice date:  (i) the expiration date of such Letter
of Credit if so extended would be after the Revolving Credit Termination Date, (ii) the
Revolving Credit Commitments have been terminated, or (iii) a Default or
an Event of Default exists and either the Administrative Agent or the Required
Lenders (with notice to the Administrative Agent) have given the
L/C Issuer instructions not to so permit the extension of the expiration
date of such Letter of Credit.  The
L/C Issuer agrees to issue amendments to the Letter(s) of Credit
increasing the amount, or extending the expiration date, thereof at the request
of the Borrower subject to the conditions of Section 7 hereof and the
other terms of this Section 1.3.

 

                (c)       The Reimbursement Obligations.  Subject to Section 1.3(b) hereof,
the obligation of the Borrower to reimburse the L/C Issuer for all
drawings under a Letter of Credit (a “Reimbursement Obligation”)
shall be governed by the Application related to such Letter of Credit, except
that reimbursement shall be made by no later than 12:00 Noon (Chicago time) on
the date when each drawing is to be paid if the Borrower has been informed of
such drawing by the L/C Issuer on or before 11:00 a.m. (Chicago time)
on the date when such drawing is to be paid or, if notice of such drawing is
given to the Borrower after 11:00 a.m. (Chicago time) on the date when
such drawing is to be paid, by no later than 12:00 Noon (Chicago time) on the
following Business Day, in immediately available funds at the Administrative
Agent’s principal office in Chicago, Illinois, or such other office as the
Administrative Agent may designate in writing to the Borrower (who shall
thereafter cause to be distributed to the L/C Issuer such amount(s) in
like funds).  If the Borrower does not
make any such reimbursement payment on the date due and the Participating
Lenders fund their participations therein in the manner set forth in Section 1.3(e) below,
then all payments thereafter received by the Administrative Agent in discharge
of any of the relevant Reimbursement Obligations shall be distributed in
accordance with Section 1.3(e) below.

 

                (d)       Obligations Absolute. 
The Borrower’s obligation to reimburse L/C Obligations as provided in
subsection (c) of this Section shall be absolute, unconditional
and irrevocable, and shall be performed strictly in accordance with the terms
of this Agreement and the relevant Application under any and all circumstances
whatsoever and irrespective of (i) any lack of validity or enforceability
of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any
draft or other document presented under a Letter of Credit proving to be
forged, fraudulent or invalid in any respect or any statement therein being
untrue or inaccurate in any

 

3

 

respect, (iii) payment
by the L/C Issuer under a Letter of Credit against presentation of a draft
or other document that does not strictly comply with the terms of such Letter
of Credit, or (iv) any other event or circumstance whatsoever, whether or
not similar to any of the foregoing, that might, but for the provisions of this
Section, constitute a legal or equitable discharge of, or provide a right of
setoff against, the Borrower’s obligations hereunder. None of the
Administrative Agent, the Lenders, or the L/C Issuer shall have any
liability or responsibility by reason of or in connection with the issuance or
transfer of any Letter of Credit or any payment or failure to make any payment
thereunder (irrespective of any of the circumstances referred to in the
preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or
relating to any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms or any
consequence arising from causes beyond the control of the L/C Issuer; provided that the foregoing shall not be construed to excuse
the L/C Issuer from liability to the Borrower to the extent of any direct
damages (as opposed to consequential damages, claims in respect of which are
hereby waived by the Borrower to the extent permitted by applicable law)
suffered by the Borrower that are caused by the L/C Issuer’s failure to
exercise care when determining whether drafts and other documents presented
under a Letter of Credit comply with the terms thereof.  The parties hereto expressly agree that, in
the absence of gross negligence or willful misconduct on the part of the
L/C Issuer (as finally determined by a court of competent jurisdiction),
the L/C Issuer shall be deemed to have exercised care in each such determination.  In furtherance of the foregoing and without
limiting the generality thereof, the parties agree that, with respect to
documents presented which appear on their face to be in substantial compliance
with the terms of a Letter of Credit, the L/C Issuer may, in its sole
discretion, either accept and make payment upon such documents without
responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit.

 

                (e)       The Participating Interests. 
Each Lender (other than the Lender acting as L/C Issuer in issuing
the relevant Letter of Credit), by its acceptance hereof, severally agrees to
purchase from the L/C Issuer, and the L/C Issuer hereby agrees to
sell to each such Lender (a “Participating Lender”),
an undivided percentage participating interest (a “Participating
Interest”), to the extent of its Revolver Percentage, in each Letter
of Credit issued by, and each Reimbursement Obligation owed to, the
L/C Issuer.  Upon any failure by the
Borrower to pay any Reimbursement Obligation at the time required on the date
the related drawing is to be paid, as set forth in Section 1.3(c) above,
or if the L/C Issuer is required at any time to return to the Borrower or
to a trustee, receiver, liquidator, custodian or other Person any portion of
any payment of any Reimbursement Obligation, each Participating Lender shall,
not later than the Business Day it receives a certificate in the form of Exhibit A
hereto from the L/C Issuer (with a copy to the Administrative Agent) to
such effect, if such certificate is received before 1:00 p.m. (Chicago
time), or not later than 1:00 p.m. (Chicago time) the following Business
Day, if such certificate is received after such time, pay to the Administrative
Agent for the account of the L/C Issuer an amount equal to such
Participating Lender’s Revolver Percentage of such unpaid or recaptured
Reimbursement Obligation together with interest on such amount accrued from the
date the related payment was made by the L/C Issuer to the date of such
payment by such Participating Lender at a rate per annum equal to:  (i) from the date the related payment
was made by the L/C Issuer to the date two (2) Business Days after
payment by such Participating 

 

4

 

Lender is due hereunder,
the Federal Funds Rate for each such day and (ii) from the date two (2) Business
Days after the date such payment is due from such Participating Lender to the
date such payment is made by such Participating Lender, the Base Rate in effect
for each such day.  Each such
Participating Lender shall thereafter be entitled to receive its Revolver
Percentage of each payment received in respect of the relevant Reimbursement
Obligation and of interest paid thereon, with the L/C Issuer retaining its
Revolver Percentage thereof as a Lender hereunder.  The several obligations of the Participating
Lenders to the L/C Issuer under this Section 1.3 shall be absolute,
irrevocable, and unconditional under any and all circumstances whatsoever and
shall not be subject to any set-off, counterclaim or defense to payment which
any Participating Lender may have or have had against the Borrower, the
L/C Issuer, the Administrative Agent, any Lender or any other Person
whatsoever.  Without limiting the
generality of the foregoing, such obligations shall not be affected by any
Default or Event of Default or by any reduction or termination of any Commitment
of any Lender, and each payment by a Participating Lender under this Section 1.3
shall be made without any offset, abatement, withholding or reduction
whatsoever.

 

                 (f)       Indemnification.  The
Participating Lenders shall, to the extent of their respective Revolver
Percentages, indemnify the L/C Issuer (to the extent not reimbursed by the
Borrower) against any cost, expense (including reasonable counsel fees and
disbursements), claim, demand, action, loss or liability (except such as result
from such L/C Issuer’s gross negligence or willful misconduct) that the
L/C Issuer may suffer or incur in connection with any Letter of Credit
issued by it.  The obligations of the
Participating Lenders under this Section 1.3(f) and all other parts
of this Section 1.3 shall survive termination of this Agreement and of all
Applications, Letters of Credit, and all drafts and other documents presented
in connection with drawings thereunder.

 

                (g)       Manner of Requesting a Letter of Credit.  The Borrower shall provide at least three (3) Business
Days’ advance written notice to the Administrative Agent of each request for
the issuance of a Letter of Credit, such notice in each case to be accompanied
by an Application for such Letter of Credit properly completed and executed by
the Borrower and, in the case of an extension or amendment or an increase in
the amount of a Letter of Credit, a written request therefor, in a form
acceptable to the Administrative Agent and the L/C Issuer, in each case,
together with the fees called for by this Agreement (provided
that the L/C Issuer shall be entitled to assume that the conditions
precedent to any such issuance, extension, amendment or increase have been
satisfied unless notified to the contrary by the Administrative Agent or the
Required Lenders).  The Administrative
Agent shall promptly notify the L/C Issuer of the Administrative Agent’s
receipt of each such notice and the L/C Issuer shall promptly notify the
Administrative Agent and the Lenders of the issuance of the Letter of Credit so
requested.

 

                (h)       Replacement of the L/C Issuer.  The L/C Issuer may be replaced at any
time by written agreement among the Borrower, the Administrative Agent, the
replaced L/C Issuer and the successor L/C Issuer.  The Administrative Agent shall notify the
Lenders of any such replacement of the L/C Issuer.  At the time any such replacement shall become
effective, the Borrower shall pay all unpaid fees accrued for the account of
the replaced L/C Issuer.  From and after
the effective date of any such replacement (i) the successor
L/C Issuer shall have all the rights and obligations of the
L/C Issuer under this Agreement with respect to Letters of Credit to

 

5

 

be issued thereafter and (ii) references
herein to the term “L/C Issuer “ shall be deemed to refer to such
successor or to any previous L/C Issuer, or to such successor and all
previous L/C Issuer s, as the context shall require.  After the replacement of a L/C Issuer
hereunder, the replaced L/C Issuer shall remain a party hereto and shall
continue to have all the rights and obligations of a L/C Issuer under this
Agreement with respect to Letters of Credit issued by it prior to such
replacement, but shall not be required to issue additional Letters of Credit.

 

                Section 1.4.       Applicable Interest Rates.  (a) Base Rate Loans.  Each Base Rate Loan made or maintained by a
Lender shall bear interest (computed on the basis of a year of 365 or
366 days, as the case may be, and the actual days elapsed) on the unpaid principal
amount thereof from the date such Loan is advanced, or created by conversion
from a Eurodollar Loan, until maturity (whether by acceleration or otherwise)
at a rate per annum equal to the sum of the Applicable Margin plus the Base
Rate from time to time in effect, payable by the Borrower on each Interest
Payment Date and at maturity (whether by acceleration or otherwise).

 

“Base Rate” means for any day the greater of:  (i) the rate of interest announced or
otherwise established by the Administrative Agent from time to time as its
prime commercial rate, or its equivalent, for U.S. Dollar loans to borrowers
located in the United States as in effect on such day, with any change in the
Base Rate resulting from a change in said prime commercial rate to be effective
as of the date of the relevant change in said prime commercial rate (it being
acknowledged and agreed that such rate may not be the Administrative Agent’s
best or lowest rate) and (ii) the sum of (x) the rate determined by
the Administrative Agent to be the average (rounded upward, if necessary, to
the next higher 1/100 of 1%) of the rates per annum quoted to the
Administrative Agent at approximately 10:00 a.m. (Chicago time) (or as
soon thereafter as is practicable) on such day (or, if such day is not a
Business Day, on the immediately preceding Business Day) by two or more Federal
funds brokers selected by the Administrative Agent for sale to the
Administrative Agent at face value of Federal funds in the secondary market in
an amount equal or comparable to the principal amount for which such rate is
being determined, plus (y) 1/2 of 1%.

 

                (b)       Eurodollar Loans. 
Each Eurodollar Loan made or maintained by a Lender shall bear interest
during each Interest Period it is outstanding (computed on the basis of a year
of 360 days and actual days elapsed) on the unpaid principal amount thereof
from the date such Loan is advanced or continued, or created by conversion from
a Base Rate Loan, until maturity (whether by acceleration or otherwise) at a
rate per annum equal to the sum of the Applicable Margin plus the Adjusted
LIBOR applicable for such Interest Period, payable by the Borrower on each
Interest Payment Date and at maturity (whether by acceleration or otherwise).

 

“Adjusted LIBOR” means, for any Borrowing of Eurodollar
Loans, a rate per annum determined in accordance with the following formula:

 

	
  Adjusted LIBOR

  	
   

  	
  =

  	
   

  	
  LIBOR

  
	
   

  	
   

  	
   

  	
  1 - Eurodollar Reserve Percentage

  

 

“Eurodollar Reserve Percentage” means, for any Borrowing of Eurodollar
Loans, the daily average for the applicable Interest Period of the maximum
rate, expressed as a decimal, at

 

6

 

which reserves
(including, without limitation, any supplemental, marginal, and emergency
reserves) are imposed during such Interest Period by the Board of Governors of
the Federal Reserve System (or any successor) on “eurocurrency
liabilities”, as defined in such Board’s Regulation D (or in
respect of any other category of liabilities that includes deposits by
reference to which the interest rate on Eurodollar Loans is determined or any
category of extensions of credit or other assets that include loans by
non-United States offices of any Lender to United States residents), subject to
any amendments of such reserve requirement by such Board or its successor,
taking into account any transitional adjustments thereto.  For purposes of this definition, the
Eurodollar Loans shall be deemed to be “eurocurrency liabilities”
as defined in Regulation D without benefit or credit for any prorations,
exemptions or offsets under Regulation D.

 

“LIBOR” means, for an Interest Period for a
Borrowing of Eurodollar Loans, (a) the LIBOR Index Rate for such Interest
Period, if such rate is available, and (b) if the LIBOR Index Rate cannot
be determined, the arithmetic average of the rates of interest per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%) at which deposits
in U.S. Dollars in immediately available funds are offered to the
Administrative Agent at 11:00 a.m. (London, England time) two (2) Business
Days before the beginning of such Interest Period by three (3) or more
major banks in the interbank eurodollar market selected by the Administrative
Agent for delivery on the first day of and for a period equal to such Interest
Period and in an amount equal or comparable to the principal amount of the
Eurodollar Loan scheduled to be made as part of such Borrowing.

 

“LIBOR Index Rate” means, for any Interest Period, the rate
per annum (rounded upwards, if necessary, to the next higher one
hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a
period equal to such Interest Period, which appears on the LIBOR01 Page as
of 11:00 a.m. (London, England time) on the day 2 Business Days
before the commencement of such Interest Period.

 

“LIBOR01 Page” means the display designated as “Reuters Screen LIBOR01 Page” (or such other page as
may replace the LIBOR01 Page on that service or such other service as may
be nominated by the British Bankers’ Association as the information vendor for
the purpose of displaying British Bankers’ Association Interest Settlement
Rates for U.S. Dollar deposits).

 

                (c)       Rate Determinations.  The Administrative Agent shall determine each
interest rate applicable to the Loans and the Reimbursement Obligations
hereunder, and its determination thereof shall be conclusive and binding except
in the case of manifest error.

 

                Section 1.5.       Minimum Borrowing Amounts; Maximum
Eurodollar Loans.  Each
Borrowing of Base Rate Loans advanced under a Credit shall be in an amount not
less than $100,000.  Each Borrowing of
Eurodollar Loans advanced, continued or converted under a Credit shall be in an
amount equal to $1,000,000 or such greater amount which is an integral multiple
of $500,000.  Without the Administrative
Agent’s consent, there shall not be more than seven (7) Borrowings of
Eurodollar Loans outstanding hereunder at any one time.

 

7

 

                Section 1.6.       Manner of Borrowing Loans and Designating
Applicable Interest Rates.  (a) Notice to the Administrative Agent.  The Borrower shall give notice to the
Administrative  Agent by no later than 10:00 a.m.
(Chicago time):  (i) at least three (3) Business
Days before the date on which the Borrower requests the Lenders to advance a
Borrowing of Eurodollar Loans and (ii) on the date the Borrower requests
the Lenders to advance a Borrowing of Base Rate Loans.  The Loans included in each Borrowing shall
bear interest initially at the type of rate specified in such notice of a new
Borrowing.  Thereafter, subject to the
terms and conditions hereof, the Borrower may from time to time elect to change
or continue the type of interest rate borne by each Borrowing or, subject to
the minimum amount requirement for each outstanding Borrowing set forth in Section 1.5
hereof, a portion thereof, as follows:  (i) if
such Borrowing is of Eurodollar Loans, on the last day of the Interest Period
applicable thereto, the Borrower may continue part or all of such Borrowing as
Eurodollar Loans or convert part or all of such Borrowing into Base Rate Loans
or (ii) if such Borrowing is of Base Rate Loans, on any Business Day, the
Borrower may convert all or part of such Borrowing into Eurodollar Loans for an
Interest Period or Interest Periods specified by the Borrower.  The Borrower shall give all such notices
requesting the advance, continuation or conversion of a Borrowing to the
Administrative  Agent by telephone, telecopy, or
other telecommunication device acceptable to the Administrative Agent (which
notice shall be irrevocable once given and, if by telephone, shall be promptly
confirmed in writing), substantially in the form attached hereto as Exhibit B
(Notice of Borrowing) or Exhibit C (Notice of Continuation/Conversion), as
applicable, or in such other form acceptable to the Administrative  Agent.  Notice of the
continuation of a Borrowing of Eurodollar Loans for an additional Interest
Period or of the conversion of part or all of a Borrowing of Base Rate Loans
into Eurodollar Loans must be given by no later than 10:00 a.m. (Chicago
time) at least three (3) Business Days before the date of the requested
continuation or conversion.  All such
notices concerning the advance, continuation or conversion of a Borrowing shall
specify the date of the requested advance, continuation or conversion of a
Borrowing (which shall be a Business Day), the amount of the requested
Borrowing to be advanced, continued or converted, the type of Loans to comprise
such new, continued or converted Borrowing and, if such Borrowing is to be
comprised of Eurodollar Loans, the Interest Period applicable thereto.  No Borrowing of Eurodollar Loans shall be
advanced, continued, or created by conversion if any Default or Event of
Default then exists.  The Borrower agrees
that the Administrative Agent may rely on any such telephonic, telecopy or
other telecommunication notice given by any person the Administrative Agent in
good faith believes is an Authorized Representative without the necessity of
independent investigation, and in the event any such notice by telephone
conflicts with any written confirmation such telephonic notice shall govern if
the Administrative Agent has acted in reliance thereon.

 

                (b)       Notice to the Lenders. 
The Administrative Agent shall give prompt telephonic, telecopy or other
telecommunication notice to each Lender of any notice from the Borrower
received pursuant to Section 1.6(a) above and, if such notice
requests the Lenders to make Eurodollar Loans, the Administrative Agent shall
give notice to the Borrower and each Lender by like means of the interest rate
applicable thereto promptly after the Administrative Agent has made such
determination.

 

                (c)       Borrower’s Failure to Notify.  If
the Borrower fails to give notice pursuant to Section 1.6(a) above of
the continuation or conversion of any outstanding principal amount of a 

 

8

 

Borrowing of Eurodollar
Loans before the last day of its then current Interest Period within the period
required by Section 1.6(a) and such Borrowing is not prepaid in
accordance with Section 1.9(a), such Borrowing shall automatically be
converted into a Borrowing of Base Rate Loans. 
In the event the Borrower fails to give notice pursuant to Section 1.6(a) above
of a Borrowing equal to the amount of a Reimbursement Obligation and has not
notified the Administrative Agent by 12:00 noon (Chicago time) on the day
such Reimbursement Obligation becomes due that it intends to repay such
Reimbursement Obligation through funds not borrowed under this Agreement, the
Borrower shall be deemed to have requested a Borrowing of Base Rate Loans under
the Revolving Credit (or, at the option of the Swing Line Lender, under the
Swing Line) on such day in the amount of the Reimbursement Obligation then due,
which Borrowing shall be applied to pay the Reimbursement Obligation then due.

 

                (d)       Disbursement of Loans. 
Not later than 1:00 p.m. (Chicago time) on the date of any
requested advance of a new Borrowing, subject to Section 7 hereof, each
Lender shall make available its Loan comprising part of such Borrowing in funds
immediately available at the principal office of the Administrative Agent in
Chicago, Illinois (or at such other location as the Administrative Agent shall
designate).  The Administrative Agent
shall make the proceeds of each new Borrowing available to the Borrower at the
Administrative Agent’s principal office in Chicago, Illinois (or at such other
location as the Administrative Agent shall designate), by depositing or wire
transferring such proceeds to the credit of the Borrower’s Designated
Disbursement Account or as the Borrower and the Administrative Agent may
otherwise agree.

 

                (e)       Administrative Agent Reliance on Lender Funding.  Unless the Administrative Agent shall have
been notified by a Lender prior to (or, in the case of a Borrowing of Base Rate
Loans, by 1:00 p.m. (Chicago time) on) the date on which such Lender is
scheduled to make payment to the Administrative Agent of the proceeds of a Loan
(which notice shall be effective upon receipt) that such Lender does not intend
to make such payment, the Administrative Agent may assume that such Lender has
made such payment when due and the Administrative Agent may in reliance upon
such assumption (but shall not be required to) make available to the Borrower
the proceeds of the Loan to be made by such Lender and, if any Lender has not
in fact made such payment to the Administrative Agent, such Lender shall, on
demand, pay to the Administrative Agent the amount made available to the Borrower
attributable to such Lender together with interest thereon in respect of each
day during the period commencing on the date such amount was made available to
the Borrower and ending on (but excluding) the date such Lender pays such
amount to the Administrative Agent at a rate per annum equal to:  (i) from the date the related advance
was made by the Administrative Agent to the date two (2) Business Days
after payment by such Lender is due hereunder, the Federal Funds Rate for each
such day and (ii) from the date two (2) Business Days after the date
such payment is due from such Lender to the date such payment is made by such
Lender, the Base Rate in effect for each such day.  If such amount is not received from such
Lender by the Administrative Agent immediately upon demand, the Borrower will,
on demand, repay to the Administrative Agent the proceeds of the Loan
attributable to such Lender with interest thereon at a rate per annum equal to
the interest rate applicable to the relevant Loan, but without such payment
being considered a payment or prepayment of a Loan under Section 1.12
hereof so that the Borrower will have no liability under such Section with
respect to such payment.

 

9

 

                Section 1.7.       Swing
Loans.  (a) Generally.  Subject to
the terms and conditions hereof, as part of the Revolving Credit, the Swing
Line Lender may, in its discretion, make loans in U.S. Dollars to the
Borrower under the Swing Line (individually a “Swing Loan”
and collectively the “Swing Loans”)
which shall not in the aggregate at any time outstanding exceed the Swing Line
Sublimit.  Swing Loans may be availed of
from time to time and borrowings thereunder may be repaid and used again during
the period ending on the Revolving Credit Termination Date.  Each Swing Loan shall be in a minimum amount
of $250,000 or such greater amount which is an integral multiple of $100,000.

 

                (b)       Interest on Swing Loans.  Each Swing Loan shall bear interest until
maturity (whether by acceleration or otherwise) at a rate per annum equal to (i) the
sum of the Base Rate plus the Applicable Margin for Base Rate Loans under the
Revolving Credit as from time to time in effect (computed on the basis of a
year of 365 or 366 days, as the case may be, for the actual number of days
elapsed) or (ii) the Quoted Rate (computed on the basis of a year of
360 days for the actual number of days elapsed).  Interest on each Swing Loan shall be due and
payable by the Borrower on each Interest Payment Date and at maturity (whether
by acceleration or otherwise).

 

                (c)       Requests for Swing Loans.  The Borrower shall give the Administrative
Agent prior notice (which may be written or oral) no later than 12:00 Noon
(Chicago time) on the date upon which the Borrower requests that any Swing Loan
be made, of the amount and date of such Swing Loan, and, if applicable, the
Interest Period requested therefor.  The
Administrative Agent shall promptly advise the Swing Line Lender of any such
notice received from the Borrower.  After
receiving such notice, the Swing Line Lender shall in its discretion quote an
interest rate to the Borrower at which the Swing Line Lender would be willing
to make such Swing Loan available to the Borrower for the Interest Period so
requested (the rate so quoted for a given Interest Period being herein referred
to as “Quoted Rate”).  The Borrower acknowledges and agrees that the
interest rate quote is given for immediate and irrevocable acceptance.  If the Borrower does not so immediately accept
the Quoted Rate for the full amount requested by the Borrower for such Swing
Loan, the  Quoted Rate shall be deemed
immediately withdrawn and such Swing Loan shall bear interest at the rate per
annum determined by adding the Applicable Margin for Base Rate Loans under the
Revolving Credit to the Base Rate as from time to time in effect.  Subject to the terms and conditions hereof,
the proceeds of each Swing Loan extended to the Borrower shall be deposited or
otherwise wire transferred to the Borrower’s Designated Disbursement Account or
as the Borrower, the Administrative Agent, and the Swing Line Lender may
otherwise agree.  Anything contained in
the foregoing to the contrary notwithstanding, the undertaking of the Swing
Line Lender to make Swing Loans shall be subject to all of the terms and
conditions of this Agreement (provided that the Swing Line Lender shall be
entitled to assume that the conditions precedent to an advance of any Swing
Loan have been satisfied unless notified to the contrary by the Administrative
Agent or the Required Lenders).

 

                (d)       Refunding Loans.  In its sole and absolute discretion, the
Swing Line Lender may at any time, on behalf of the Borrower (which hereby
irrevocably authorizes the Swing Line Lender to act on its behalf for such
purpose) and with notice to the Borrower and the Administrative Agent, request
each Lender to make a Revolving Loan in the form of a Base Rate Loan in an
amount equal to such Lender’s Revolver Percentage of the amount of the Swing
Loans outstanding on the date such notice is given.  Unless an Event of Default described in 

 

10

 

Section 9.1(j) or 9.1(k) exists with
respect to the Borrower, regardless of the existence of any other Event of
Default, each Lender shall make the proceeds of its requested Revolving Loan
available to the Administrative Agent for the account of the Swing Line
Lender), in immediately available funds, at the Administrative Agent’s office
in Chicago, Illinois (or such other location designated by the Administrative
Agent), before 12:00 Noon (Chicago time) on the Business Day following the day
such notice is given.  The Administrative
Agent shall promptly remit the proceeds of such Borrowing to the Swing Line
Lender to repay the outstanding Swing Loans.

 

                (e)       Participations.  If any Lender refuses or otherwise
fails to make a Revolving Loan when requested by the Swing Line Lender pursuant
to Section 1.7(d) above (because an Event of Default described in Section 9.1(j) or
9.1(k) exists with respect to the Borrower or otherwise), such Lender
will, by the time and in the manner such Revolving Loan was to have been funded
to the Swing Line Lender, purchase from the Swing Line Lender an undivided
participating interest in the outstanding Swing Loans in an amount equal to its
Revolver Percentage of the aggregate principal amount of Swing Loans that were
to have been repaid with such Revolving Loans. 
Each Lender that so purchases a participation in a Swing Loan shall
thereafter be entitled to receive its Revolver Percentage of each payment of
principal received on the Swing Loan and of interest received thereon accruing
from the date such Lender funded to the Swing Line Lender its participation in
such Loan.  The several obligations of the
Lenders under this Section shall be absolute, irrevocable, and
unconditional under any and all circumstances whatsoever and shall not be
subject to any set-off, counterclaim or defense to payment which any Lender may
have or have had against the Borrower, any other Lender, or any other Person
whatsoever.  Without limiting the
generality of the foregoing, such obligations shall not be affected by any
Default or Event of Default or by any reduction or termination of the
Commitments of any Lender, and each payment made by a Lender under this Section shall
be made without any offset, abatement, withholding, or reduction whatsoever.

 

                Section 1.8.       Maturity of Loans.  (a) Scheduled Payments of Term
A Loans.  The Borrower shall
make principal payments on the Term A Loans in installments on the last day of
each March, June, September, and December in each year, commencing with
the calendar quarter ending September 30, 2008, with the amount of each
such principal installment to equal $3,250,000, it being agreed that a final
payment comprised of all principal and interest not sooner paid on the Term A
Loans shall be due and payable on the Term A Loan Final Maturity Date.  Each such principal payment shall be applied
to the Lenders holding the Term A Loans pro rata based
upon their Term A Loan Percentages; provided however, that
if any additional Term A Loans are advanced pursuant to Section 1.15
hereof, each scheduled amount due from and after the date of such advance
through December 31, 2012 shall be increased by 5.0% of the aggregate
principal amount of the additional Term A Loans advanced and the scheduled
amount due on the Term A Loan Final Maturity Date shall be increased by the
balance of such additional Term A Loans advanced.

 

(b)           Acquisition Loans.  The Borrower shall make principal payments on
the Acquisition Loans in installments on the last day of each March, June,
September, and December in each year, commencing with the first full
calendar quarter ending after the Acquisition Credit Commitment Termination Date,
with the amount of each such principal installment to equal 0.25% multiplied by
the aggregate principal amount of the Acquisition Loans outstanding as of 

 

11

 

the Acquisition Credit
Commitment Termination Date, it being agreed that a final payment comprised of
all principal and interest not sooner paid on the Acquisition Loans shall be
due and payable on the Acquisition Loan Final Maturity Date.  Each such principal payment shall be applied
to the Lenders holding the Acquisition Loans pro rata
based upon their Acquisition Percentages; provided however, that
if any additional Acquisition Loans are advanced pursuant to Section 1.15
hereof, each scheduled amount due from and after the date of such advance through
December 31, 2013 shall be increased by 0.25% of the aggregate principal
amount of the additional Acquisition Loans advanced and the scheduled amount
due on the Acquisition Loan Final Maturity Date shall be increased by the
balance of such additional Acquisition Loans advanced.

 

                (c)           Revolving Loans.  Each Revolving Loan, both for principal and
interest not sooner paid, shall mature and be due and payable by the Borrower
on the Revolving Credit Termination Date.

 

                (d)           Swing Loans.  Each Swing Loan, both for principal and
interest not sooner paid, shall mature and be due and payable by the Borrower
on the Revolving Credit Termination Date.

 

                Section 1.9.       Prepayments.  (a) Optional.  The Borrower may prepay in whole or in part
(but, if in part, then:  (i) if such
Borrowing is of Base Rate Loans, in an amount not less than $100,000, (ii) if
such Borrowing is of Eurodollar Loans, in an amount not less than $500,000, and
(iii) in each case, in an amount such that the minimum amount required for
a Borrowing pursuant to Section 1.5 and 1.7 hereof remains outstanding)
any Borrowing of Eurodollar Loans at any time upon three (3) Business Days
prior notice by the Borrower to the Administrative Agent or, in the case of a
Borrowing of Base Rate Loans, notice delivered by the Borrower to the
Administrative Agent no later than 10:00 a.m. (Chicago time) on the date
of prepayment (or, in any case, such shorter period of time then agreed to by
the Administrative Agent), such prepayment to be made by the payment of the principal
amount to be prepaid and, in the case of any Term Loans or Eurodollar Loans or
Swing Loans, accrued interest thereon to the date fixed for prepayment plus any
amounts due the Lenders under Section 1.12 hereof.

 

                (b)       Mandatory.  (i) If the Borrower or any Subsidiary
shall at any time or from time to time make or agree to make a Disposition or
shall suffer an Event of Loss with respect to any Property, then the Borrower
shall promptly notify the Administrative Agent of such proposed Disposition or
Event of Loss (including the amount of the estimated Net Cash Proceeds to be
received by the Borrower or such Subsidiary in respect thereof) and, promptly
upon receipt by the Borrower or such Subsidiary of the Net Cash Proceeds of
such Disposition or Event of Loss, the Borrower shall prepay the Obligations in
an aggregate amount equal to 100% of the amount of all such Net Cash Proceeds; provided that (x) so long as no Default or Event of
Default then exists, this subsection shall not require any such prepayment with
respect to Net Cash Proceeds received on account of an Event of Loss so long as
such Net Cash Proceeds are applied to replace or restore the relevant Property
in accordance with the relevant Collateral Documents, (y) this subsection
shall not require any such prepayment with respect to Net Cash Proceeds
received on account of Dispositions during any fiscal year of the Borrower not
exceeding $500,000 in the aggregate so long as no Default or Event of Default
then exists, and (z) in the case of any Disposition not covered by
clause (y) above, so long as no Default or Event of 

 

12

 

Default then exists, if the Borrower states in its
notice of such event that the Borrower or the relevant Subsidiary intends to
reinvest, within ninety (90) days of the applicable Disposition, the Net Cash
Proceeds thereof in assets similar to the assets which were subject to such
Disposition, then the Borrower shall not be required to make a mandatory
prepayment under this subsection in respect of such Net Cash Proceeds to the
extent such Net Cash Proceeds are actually reinvested in such similar assets
with such 90-day period.  Promptly after
the end of such 90-day period, the Borrower shall notify the Administrative
Agent whether the Borrower or such Subsidiary has reinvested such Net Cash
Proceeds in such similar assets, and, to the extent such Net Cash Proceeds have
not been so reinvested, the Borrower shall promptly prepay the Obligations in
the amount of such Net Cash Proceeds not so reinvested.  The amount of each such prepayment shall be
applied, subject to Section 1.9(b)(v) below, first to the outstanding
Term Loans (to be applied on a ratable basis between the Term A Loans and
Acquisition Loans based on the outstanding principal amount thereof) until paid
in full and then to the Revolving Credit.  If the Administrative Agent or the
Required Lenders so request, all proceeds of such Disposition or Event of Loss
shall be deposited with the Administrative Agent (or its agent) and held by it
in the Collateral Account.  So long as no
Default or Event of Default exists, the Administrative Agent is authorized to
disburse amounts representing such proceeds from the Collateral Account to or
at the Borrower’s direction for application to or reimbursement for the costs
of replacing, rebuilding or restoring such Property.

 

                (ii)       If after the Closing Date the Borrower or
any Subsidiary shall issue any Indebtedness for Borrowed Money, other than
Indebtedness for Borrowed Money permitted by Section 8.7 hereof, the
Borrower shall promptly notify the Administrative Agent of the estimated Net
Cash Proceeds of such issuance to be received by or for the account of the
Borrower or such Subsidiary in respect thereof. 
Promptly upon receipt by the Borrower or such Subsidiary of Net Cash
Proceeds of such issuance, the Borrower shall prepay the Obligations in an
aggregate amount equal to 100% of the amount of such Net Cash Proceeds.  The amount of each such prepayment shall be
applied, subject to Section 1.9(b)(v) below, first to the outstanding
Term Loans (to be applied on a ratable basis between the Term A Loans and
Acquisition Loans based on the outstanding principal amount thereof) until paid
in full and then to the Revolving Credit. 
The Borrower acknowledges that its performance hereunder shall not limit
the rights and remedies of the Lenders for any breach of Section 8.7
hereof or any other terms of the Loan Documents.

 

               (iii)       Within two (2) days after receipt of
the Borrower’s year-end audited financial statements, and in any event within
ninety (90) days after the end of each fiscal year of the Borrower (commencing
with the fiscal year ending December 31, 2008), the Borrower shall prepay
the Obligations by an amount equal to the ECF Prepayment Percentage of Excess
Cash Flow of Borrower and its Subsidiaries for the most recently completed
fiscal year of the Borrower; provided, that
for the fiscal year ending December 31, 2008, Excess Cash Flow of the
Borrower and its Subsidiaries shall be calculated for the period from July 1,
2008 through December 31, 2008.  The
amount of each such prepayment shall be applied, subject to Section 1.9(b)(v) below,
first to the outstanding Term Loans (to be applied on a ratable basis between
the Term A Loans and Acquisition Loans based on the outstanding principal
amount thereof) until paid in full and then to the Revolving Credit.

 

13

 

               (iv)       The Borrower shall, on each date the
Revolving Credit Commitments are reduced pursuant to Section 1.13 hereof,
prepay the Revolving Loans, Swing Loans, and, if necessary, prefund the L/C
Obligations by the amount, if any, necessary to reduce the sum of the aggregate
principal amount of Revolving Loans, Swing Loans, and L/C Obligations then
outstanding to the amount to which the Revolving Credit Commitments have been
so reduced.

 

                (v)       Notwithstanding anything to the contrary
contained in this Section 1.9(b) or elsewhere in this Agreement, any
Lender with an outstanding Acquisition Loan shall have the option to waive any
mandatory prepayment of such Acquisition Loan pursuant to clauses (i)-(iv),
both inclusive, of this Section 1.9(b) (each such prepayment a “Waiveable Mandatory Acquisition Loan Prepayment”) upon the
terms and provisions set forth in this Section 1.9(b)(v).  In the event any such Lender desires to waive
such Lender’s right to receive any such Waiveable Mandatory Acquisition Loan
Prepayment in whole or in part, such Lender shall so advise the Administrative
Agent no later than the date on which such prepayment is to occur, which notice
shall also include the amount such Lender desires to receive in respect of such
prepayment.  If any such Lender does not
provide such notice, it will be deemed to have accepted 100% of such Waiveable
Mandatory Acquisition Loan Payment.  In
the event that any such Lender waives all or any part of such right to receive
any such Waiveable Mandatory Acquisition Loan Prepayment, the Administrative
Agent shall apply 100% of the amount so waived by such Lender to the
Term A Loans then outstanding in accordance with the relevant clause of
this Section 1.9(b), provided that no such waiver request shall be honored
following the prepayment in full of the Term A Loans.

 

               (vi)       Unless the Borrower otherwise directs,
prepayments of Loans (either prepayment of Term Loans or Revolving Loans, as
applicable) under this Section 1.9(b) shall be applied first to
Borrowings of Base Rate Loans until payment in full thereof with any balance
applied to Borrowings of Eurodollar Loans in the order in which their Interest
Periods expire.  Each prepayment of Loans
under this Section 1.9(b) shall be made by the payment of the
principal amount to be prepaid and, in the case of any Term Loans or Eurodollar
Loans or Swing Loans, accrued interest thereon to the date of prepayment
together with any amounts due the Lenders under Section 1.12 hereof.  Each prefunding of L/C Obligations shall be
made in accordance with Section 9.4 hereof.

 

                (c)       Any amount of Revolving Loans and Swing
Loans paid or prepaid before the Revolving Credit Termination Date may, subject
to the terms and conditions of this Agreement, be borrowed, repaid and borrowed
again.  No amount of the Term A Loans or
Acquisition Loans paid or prepaid may be reborrowed, and, in the case of any
partial prepayment, such prepayment shall be applied to the remaining
amortization payments on the relevant Term Loans in the reverse order of
maturity.

 

14

 

              Section 1.10.       Default Rate.  Notwithstanding anything to the contrary
contained herein, while any Event of Default exists or after acceleration, the
Borrower shall pay interest (after as well as before entry of judgment thereon
to the extent permitted by law) on the principal amount of all Loans and
Reimbursement Obligations, and letter of credit fees at a rate per annum equal
to:

 

                   (a)        for any Loan or Reimbursement
Obligation, the sum of two percent (2%) plus the rate
otherwise applicable to such Loan or Reimbursement Obligation; and

 

                   (b)        for any Letter of Credit, the sum of
2.0% plus the letter of credit fee due under Section 2.1
with respect to such Letter of Credit;

 

provided, however, that in the absence of acceleration, any adjustments
pursuant to this Section shall be made at the election of the
Administrative Agent, acting at the request or with the consent of the Required
Lenders, with written notice to the Borrower. 
While any Event of Default exists or after acceleration, interest shall
be paid on demand of the Administrative Agent at the request or with the
consent of the Required Lenders.

 

              Section 1.11.       Evidence
of Indebtedness.  (a) Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of the Borrower to such Lender resulting
from each Loan made by such Lender from time to time, including the amounts of
principal and interest payable and paid to such Lender from time to time
hereunder.

 

                (b)       The Administrative Agent shall also
maintain accounts in which it will record (i) the amount of each Loan made
hereunder, the type thereof and the Interest Period with respect thereto, (ii) the
amount of any principal or interest due and payable or to become due and
payable from the Borrower to each Lender hereunder and (iii) the amount of
any sum received by the Administrative Agent hereunder from the Borrower and
each Lender’s share thereof.

 

                (c)       The entries maintained in the accounts
maintained pursuant to paragraphs (a) and (b) above shall be prima facie evidence of the existence and amounts of the
Obligations therein recorded; provided, however, that
the failure of the Administrative Agent or any Lender to maintain such accounts
or any error therein shall not in any manner affect the obligation of the
Borrower to repay the Obligations in accordance with their terms.

 

                (d)       Any Lender may request that its Loans be
evidenced by a promissory note or notes in the forms of Exhibit D-1 (in
the case of its Term A Loan and referred to herein as a “Term A Note”),
D-2 (in the case of its Acquisition Loans and referred to herein as a “Acquisition Note”), D-3 (in the case of its Revolving Loans
and referred to herein as a “Revolving Note”),
or D-4 (in the case of its Swing Loans and referred to herein as a “Swing Note”), as applicable (the Term A Notes, Acquisition
Notes, Revolving Notes, and Swing Note being hereinafter referred to
collectively as the “Notes” and
individually as a “Note”).  In such event, the Borrower shall prepare,
execute and deliver to such Lender a Note payable to such Lender or its
registered assigns in the amount of the relevant Term Loan, Commitment, or
Swing Line Sublimit, as applicable. 
Thereafter, the Loans evidenced by such Note or Notes and interest
thereon shall at all times (including after any assignment pursuant to Section 13.12)
be represented by one or 

 

15

 

more Notes payable to the order of the payee named
therein or any assignee pursuant to Section 13.12, except to the extent
that any such Lender or assignee subsequently returns any such Note for
cancellation and requests that such Loans once again be evidenced as described
in subsections (a) and (b) above.

 

              Section 1.12.       Funding Indemnity.  If any Lender shall incur any loss, cost or
expense (including, without limitation, any loss, cost or expense incurred by
reason of the liquidation or re-employment of deposits or other funds acquired
by such Lender to fund or maintain any Eurodollar Loan or Swing Loan or the
relending or reinvesting of such deposits or amounts paid or prepaid to such
Lender) as a result of:

 

                   (a)        any payment, prepayment or conversion of
a Eurodollar Loan or Swing Loan on a date other than the last day of its
Interest Period,

 

                   (b)        any failure (because of a failure to
meet the conditions of Section 7 or otherwise) by the Borrower to borrow
or continue a Eurodollar Loan or Swing Loan, or to convert a Base Rate Loan
into a Eurodollar Loan or Swing Loan on the date specified in a notice given
pursuant to Section 1.6(a) or 1.7 hereof,

 

                   (c)        any failure by the Borrower to make any
payment of principal on any Eurodollar Loan or Swing Loan when due (whether by
acceleration or otherwise), or

 

                   (d)        any acceleration of the maturity of a
Eurodollar Loan or Swing Loan as a result of the occurrence of any Event of
Default hereunder,

 

then, upon the demand of such Lender, the Borrower
shall pay to such Lender such amount as will reimburse such Lender for such
loss, cost or expense.  If any Lender
makes such a claim for compensation, it shall provide to the Borrower, with a
copy to the Administrative Agent, a certificate setting forth the amount of
such loss, cost or expense in reasonable detail (including an explanation of
the basis for and the computation of such loss, cost or expense) and the
amounts shown on such certificate shall be conclusive if reasonably determined.

 

              Section 1.13.       Commitment
Terminations.  (a) Optional Revolving Credit Terminations. 
The Borrower shall have the right at any time and from time
to time, upon five (5) Business Days prior written notice to the
Administrative Agent (or such shorter period of time agreed to by the
Administrative Agent), to terminate the Revolving Credit Commitments without
premium or penalty and in whole or in part, any partial termination to be (i) in
an amount not less than $500,000 and (ii) allocated ratably among the
Lenders in proportion to their respective Revolver Percentages, provided that
the Revolving Credit Commitments may not be reduced to an amount less than the
sum of the aggregate principal amount of Revolving Loans, Swing Loans, and
L/C Obligations then outstanding. 
Any termination of the Revolving Credit Commitments below the
L/C Sublimit or the Swing Line Sublimit then in effect shall reduce the
L/C Sublimit and Swing Line Sublimit, as applicable, by a like
amount.  The Administrative Agent shall
give prompt notice to each Lender of any such termination of the Revolving
Credit Commitments.

 

16

 

               (b)       Optional Acquisition
Credit Terminations.  The
Borrower shall have the right at any time and from time to time, upon five (5) Business
Days prior written notice to the Administrative Agent (or such shorter period
of time agreed to by the Administrative Agent), to terminate the Acquisition
Credit Commitments without premium or penalty and in whole or in part, any
partial termination to be (i) in an amount not less than $500,000 and (ii) allocated
ratably among the Lenders in proportion to their respective Acquisition
Percentages. The Administrative Agent shall give prompt notice to each Lender
of any such termination of the Acquisition Credit Commitments.

 

                (c)       Mandatory Revolving Credit
Termination.  If at any time
Net Cash Proceeds or other amounts remain after the prepayment of the Term
Loans in full pursuant to Section 1.9(b) hereof, the Revolving Credit
Commitments shall ratably terminate by an amount equal to 100% of such excess; provided that the Revolving Credit Commitments shall not be
reduced below $20,000,000 pursuant to this Section 1.13(c).

 

                (d)       Any termination of the Commitments
pursuant to this Section 1.13 may not be reinstated.

 

              Section 1.14.       Substitution
of Lenders.  In the event (a) the
Borrower receives a claim from any Lender for compensation under Section 10.3
or 13.1 hereof, (b) the Borrower receives notice from any Lender of any
illegality pursuant to Section 10.1 hereof, (c) any Lender is in
default in any material respect with respect to its obligations under the Loan
Documents, or (d) a Lender fails to consent to an amendment or waiver
requested under Section 13.13 hereof at a time when the Required Lenders
have approved such amendment or waiver (any such Lender referred to in
clause (a), (b), (c), or (d) above being hereinafter referred to as
an “Affected Lender”), the Borrower may, in
addition to any other rights the Borrower may have hereunder or under
applicable law, require, at its expense, any such Affected Lender to assign, at
par, without recourse, all of its interest, rights, and obligations hereunder
(including all of its Commitments and the Loans and participation interests in
Letters of Credit and other amounts at any time owing to it hereunder and the
other Loan Documents) to an Eligible Assignee specified by the Borrower, provided that (i) such assignment shall not conflict
with or violate any law, rule or regulation or order of any court or other
governmental authority, (ii) the Borrower shall have paid to the Affected
Lender all monies (together with amounts due such Affected Lender under Section 1.12
hereof as if the Loans owing to it were prepaid rather than assigned) other
than such principal owing to it hereunder, and (iii) the assignment is
entered into in accordance with, and subject to the consents required by, Section 13.12
hereof (provided any assignment fees and reimbursable expenses due thereunder
shall be paid by the Borrower).

 

              Section 1.15.       Term Loan Increase.  
The Borrower may, on any Business Day prior to the Term A Loan Final
Maturity Date and with the consent of the Administrative Agent (but without the
consent of the Lenders), increase the aggregate outstanding amount of the Term
A Loans or the Acquisition Loans by delivering a Term Loan Increase Request
substantially in the form attached hereto as Exhibit H or in such other
form reasonably acceptable to the Administrative Agent at least five (5) Business
Days prior to the desired effective date of such increase (the “Term Loan Increase”) identifying any additional Lender(s) (or
additional Term A Loans or  Acquisition
Loans for existing Lender(s)) and the amount of its Term A Loans or Acquisition

 

17

 

Loans (or additional amount of its Term A Loans or
Acquisition Loans); provided, however,
that (i) any increase shall be in an amount and subject to the Term Loan
Increase Availability, (ii) no Default or Event of Default shall have
occurred and be continuing at the time of the request or  the effective date of the Term Loan Increase,
(iii) all representations and warranties contained in Section 6
hereof shall be true and correct in all material respects at the time of such
request (except to the extent such representation or warranty is expressly
limited to an earlier date, in which case such representation and warranty
shall be true and correct in all material respects as of such date) and on the
effective date of such Term Loan Increase, and (iv) prior to approaching
new lenders, the Borrower shall offer to Lenders the option to increase their
respective outstanding Term Loans.  The
effective date of the Term Loan Increase shall be agreed upon by the Borrower
and the Administrative Agent.  Upon the
effectiveness thereof, the new Lender(s) (or, if applicable, existing
Lender(s)) shall advance such additional Term Loans to fund the Term Loan
Increase.  It shall be a condition to
such effectiveness that if any Eurodollar Loans are outstanding under the Term
A Credit or the Acquisition Credit (to the extent subject to the Term Loan
Increase) on the date of such effectiveness, such Eurodollar Loans shall be deemed
to be prepaid on such date and the Borrower shall pay any amounts owing to the
Lenders pursuant to Section 1.12 hereof. 
The Borrower agrees to pay the expenses of the Administrative Agent
relating to any Term Loan Increase. 
Notwithstanding anything herein to the contrary, no Lender shall have
any obligation to advance additional Term Loans, and each Lender may at its
option, unconditionally and without cause, decline to advance additional Term
Loans.  Any additional Term A Loan or
Acquisition Loans advanced under this Section 1.15 shall be “Term A Loans” or “Acquisition Loans”,
as applicable, for all purposes of this Agreement.

 

SECTION 2.                                                 FEES.

 

                Section 2.1.       Fees.  (a) Revolving Credit
Commitment Fee.  The Borrower
shall pay to the Administrative Agent for the ratable account of the Lenders in
accordance with their Revolver Percentages a commitment fee at the rate per
annum equal to 0.25% (computed on the basis of a year of 360 days and the
actual number of days elapsed) on the average daily Unused Revolving Credit
Commitments.  Such commitment fee shall
be payable quarterly in arrears on the last day of each March, June, September,
and December in each year (commencing on the first such date occurring
after the date hereof) and on the Revolving Credit Termination Date, unless the
Revolving Credit Commitments are terminated in whole on an earlier date, in
which event the commitment fee for the period to the date of such termination
in whole shall be paid on the date of such termination.

 

                 (b)      Acquisition Credit Commitment Fee.  The Borrower shall pay to the Administrative
Agent for the ratable account of the Lenders in accordance with their
Acquisition Percentages a commitment fee at the rate per annum equal to 0.75%
(computed on the basis of a year of 360 days and the actual number of days
elapsed) on the average daily Unused Acquisition Credit Commitments.  Such commitment fee shall be payable
quarterly in arrears on the last day of each March, June, September, and December in
each year (commencing on the first such date occurring after the date hereof)
and on the Acquisition Credit Commitment Termination Date, unless the
Acquisition Credit Commitments are terminated in whole on an earlier date, in
which event the commitment fee for the period to the date of such termination
in whole shall be paid on the date of such termination.

 

18

 

                (c)       Letter of Credit Fees.  On the date of issuance or extension, or
increase in the amount, of any Letter of Credit pursuant to Section 1.3
hereof, the Borrower shall pay to the L/C Issuer for its own account a
fronting fee equal to 0.125% of the face amount of (or of the increase in the
face amount of) such Letter of Credit. 
Quarterly in arrears, on the last day of each March, June, September,
and December, commencing on the first such date occurring after the date
hereof, the Borrower shall pay to the Administrative Agent, for the ratable
benefit of the Lenders in accordance with their Revolver Percentages, a letter
of credit fee at a rate per annum equal to the amount set forth under the
column heading “Applicable Margin for Eurodollar Loans under Revolving Credit,
Term A Credit and Letter of Credit Fee Shall Be:” as set forth in the
definition of Applicable Margin (computed on the basis of a year of
360 days and the actual number of days elapsed) in effect during each day
of such quarter applied to the daily average face amount of Letters of Credit
outstanding during such quarter.  In
addition, the Borrower shall pay to the L/C Issuer for its own account the
L/C Issuer’s standard issuance, drawing, negotiation, amendment,
assignment, and other administrative fees for each Letter of Credit as
established by the L/C Issuer from time to time.

 

                (d)       Administrative Agent Fees.  The Borrower shall pay to the Administrative
Agent, for its own use and benefit, the fees agreed to between the
Administrative Agent and the Borrower in a fee letter dated December 19,
2007, or as otherwise agreed to in writing between them.

 

                (e)       Audit Fees.  Upon the occurrence and during the
continuation of an Event of Default, the Borrower shall pay to the
Administrative Agent for its own use and benefit charges for audits of the
Collateral performed by the Administrative Agent or its agents or representatives,
in such amounts as the Administrative Agent may from time to time request (the
Administrative Agent acknowledging and agreeing that such charges shall be
computed in the same manner as it at the time customarily uses for the
assessment of charges for similar collateral audits).

 

SECTION 3.                                                 PLACE AND
APPLICATION OF PAYMENTS.

 

                Section 3.1.       Place and
Application of Payments.  All
payments of principal of and interest on the Loans and the Reimbursement
Obligations, and of all other Obligations payable by the Borrower under this
Agreement and the other Loan Documents, shall be made by the Borrower to the
Administrative Agent by no later than 1:00 p.m. (Chicago time) on the due
date thereof at the office of the Administrative Agent in Chicago, Illinois (or
such other location as the Administrative Agent may designate to the Borrower),
for the benefit of the Lender(s) or L/C Issuer entitled thereto.  Any payments received after such time shall
be deemed to have been received by the Administrative Agent on the next
Business Day.  All such payments shall be
made in U.S. Dollars, in immediately available funds at the place of payment,
in each case without set-off or counterclaim. 
The Administrative Agent will promptly thereafter cause to be
distributed like funds relating to the payment of principal or interest on
Loans and on Reimbursement Obligations in which the Lenders have purchased
Participating Interests ratably to the Lenders and like funds relating to the
payment of any other amount payable to any Lender to such Lender, in each case
to be applied in accordance with the terms of this Agreement.  If the Administrative Agent causes amounts to
be distributed to the Lenders in reliance upon the 

 

19

 

assumption that the Borrower will make a scheduled
payment and such scheduled payment is not so made, each Lender shall, on
demand, repay to the Administrative Agent the amount distributed to such Lender
together with interest thereon in respect of each day during the period
commencing on the date such amount was distributed to such Lender and ending on
(but excluding) the date such Lender repays such amount to the Administrative
Agent, at a rate per annum equal to:  (i) from
the date the distribution was made to the date two (2) Business Days after
payment by such Lender is due hereunder, the Federal Funds Rate for each such
day and (ii) from the date two (2) Business Days after the date such
payment is due from such Lender to the date such payment is made by such Lender,
the Base Rate in effect for each such day.

 

Anything contained herein
to the contrary notwithstanding (including, without limitation, Section 1.9(b) hereof),
all payments and collections received in respect of the Obligations and all
proceeds of the Collateral received, in each instance, by the Administrative
Agent or any of the Lenders after acceleration or the final maturity of the
Obligations or termination of the Commitments as a result of an Event of
Default shall be remitted to the Administrative Agent and distributed as
follows:

 

                   (a)        first, to the payment of any outstanding
costs and expenses incurred by the Administrative Agent, and any security
trustee therefor, in monitoring, verifying, protecting, preserving or enforcing
the Liens on the Collateral, in protecting, preserving or enforcing rights
under the Loan Documents, and in any event including all costs and expenses of
a character which the Borrower has agreed to pay the Administrative Agent under
Section 13.15 hereof (such funds to be retained by the Administrative
Agent for its own account unless it has previously been reimbursed for such
costs and expenses by the Lenders, in which event such amounts shall be
remitted to the Lenders to reimburse them for payments theretofore made to the
Administrative Agent);

 

                   (b)        second, to the payment of the Swing
Loans, both for principal and accrued but unpaid interest;

 

                   (c)        third, to the payment of any outstanding
interest and fees due under the Loan Documents to be allocated pro rata in accordance with the aggregate unpaid amounts
owing to each holder thereof;

 

                   (d)        fourth, to the payment of principal on
the Loans (other than Swing Loans), unpaid Reimbursement Obligations, together
with amounts to be held by the Administrative Agent as collateral security for
any outstanding L/C Obligations pursuant to Section 9.4 hereof (until
the Administrative Agent is holding an amount of cash equal to the then
outstanding amount of all such L/C Obligations), and Hedging Liability,
the aggregate amount paid to, or held as collateral security for, the Lenders
and L/C Issuer and, in the case of Hedging Liability, their Affiliates to
be allocated pro rata in accordance with the
aggregate unpaid amounts owing to each holder thereof;

 

                   (e)        fifth, to the payment of all other
unpaid Obligations and all other indebtedness, obligations, and liabilities of
the Borrower and its Subsidiaries secured by the Loan Documents (including,
without limitation, Funds Transfer and Deposit Account 

 

20

 

Liability) to be allocated pro rata
in accordance with the aggregate unpaid amounts owing to each holder thereof;
and

 

                    (f)        finally, to the Borrower or whoever else
may be lawfully entitled thereto.

 

                Section 3.2.       Account Debit. 
The Borrower hereby irrevocably authorizes the Administrative Agent to
charge any of the Borrower’s deposit accounts maintained with the
Administrative Agent for the amounts from time to time necessary to pay any
then due Obligations; provided that  the Borrower acknowledges and agrees that the
Administrative Agent shall not be under an obligation to do so and the
Administrative Agent shall not incur any liability to the Borrower or any other
Person for the Administrative Agent’s failure to do so.

 

SECTION 4.                                                 GUARANTIES
AND COLLATERAL.

 

                Section 4.1.       Guaranties.  The payment
and performance of the Obligations, Hedging Liability, and Funds Transfer and
Deposit Account Liability shall at all times be guaranteed by each direct and
indirect Domestic Subsidiary of the Borrower pursuant to Section 12 hereof
or pursuant to one or more guaranty agreements in form and substance acceptable
to the Administrative Agent, as the same may be amended, modified or
supplemented from time to time (individually a “Guaranty”
and collectively the “Guaranties” and
each such Subsidiary executing and delivering this Agreement as a Guarantor
(including any Subsidiary hereafter executing and delivering an Additional
Guarantor Supplement in the form called for by Section 12 hereof) or a
separate Guaranty being referred to herein as a “Guarantor”
and collectively the “Guarantors”).

 

                Section 4.2.       Collateral.  The Obligations, Hedging Liability, and Funds
Transfer and Deposit Account Liability shall be secured by valid, perfected,
and enforceable Liens on all right, title, and interest of the Borrower and
each Guarantor in all of their accounts, chattel paper, instruments, documents,
general intangibles, letter-of-credit rights, supporting obligations, deposit
accounts, investment property, inventory, equipment, fixtures, commercial tort
claims, real estate and certain other Property, whether now owned or hereafter
acquired or arising, and all proceeds thereof; provided,
however, that:  (i) until
a Default or Event of Default has occurred and is continuing and thereafter
until otherwise required by the Administrative Agent or the Required Lenders,
Liens on local petty cash accounts maintained by the Borrower and the
Guarantors in proximity to their operations need not be perfected provided that
the total amount on deposit at any one time not so perfected shall not exceed
$500,000 in the aggregate and Liens on payroll accounts maintained by the
Borrower and the Guarantors need not be perfected provided the total amount on
deposit at any time does not exceed the current amount of their payroll
obligations, (ii) until a Default or Event of Default has occurred and is
continuing and thereafter until otherwise required by the Administrative Agent
or the Required Lenders, Liens on vehicles which are subject to a certificate
of title law need not be perfected provided that the total value of such
property at any one time not so perfected shall not exceed $1,000,000 in the
aggregate, and (iii) Liens on the Voting Stock of a Foreign Subsidiary
shall be limited to 66% of the total outstanding Voting Stock of such Foreign
Subsidiary.  The Borrower acknowledges
and agrees that the Liens on the Collateral shall be granted to the
Administrative Agent for the benefit of the holders of the Obligations, the
Hedging Liability, and the Funds Transfer and 

 

21

 

Deposit Account Liability and shall be valid and
perfected first priority Liens subject, however, to the proviso appearing at
the end of the preceding sentence and to Liens permitted by Section 8.8
hereof, in each case pursuant to one or more Collateral Documents from such
Persons, each in form and substance satisfactory to the Administrative Agent.

 

                Section 4.3.       Liens on Real Property. 
In the event that the Borrower or any Guarantor owns or hereafter
acquires any real property (provided that
the requirements of this Section 4.3 shall not apply to any lease of real
property by the Borrower or any Guarantor), the Borrower shall, or shall cause
such Guarantor to, execute and deliver to the Administrative Agent a mortgage
or deed of trust acceptable in form and substance to the Administrative Agent
for the purpose of granting to the Administrative Agent (or a security trustee
therefor) a Lien on such real property to secure the Obligations, Hedging
Liability, and Funds Transfer and Deposit Account Liability, shall pay all
taxes, costs, and expenses incurred by the Administrative Agent in recording
such mortgage or deed of trust, and shall supply to the Administrative Agent at
the Borrower’s cost and expense a survey, environmental report, hazard
insurance policy, appraisal report, and a mortgagee’s policy of title insurance
from a title insurer acceptable to the Administrative Agent insuring the
validity of such mortgage or deed of trust and its status as a first Lien
(subject to Liens permitted by this Agreement) on the real property encumbered
thereby and such other instrument, documents, certificates, and opinions
reasonably required by the Administrative Agent in connection therewith.

 

                Section 4.4.       Further
Assurances.  The Borrower
agrees that it shall, and shall cause each Guarantor to, from time to time at
the request of the Administrative Agent or the Required Lenders, execute and
deliver such documents and do such acts and things as the Administrative Agent
or the Required Lenders may reasonably request in order to provide for or
perfect or protect such Liens on the Collateral.  In the event the Borrower or any Guarantor
forms or acquires any other Subsidiary after the date hereof, except as
otherwise provided in Sections 4.1 and 4.2 above, the Borrower shall
promptly upon such formation or acquisition cause such newly formed or acquired
Subsidiary to execute a Guaranty and such Collateral Documents as the
Administrative Agent may then require, and the Borrower shall also deliver to
the Administrative Agent, or cause such Subsidiary to deliver to the
Administrative Agent, at the Borrower’s cost and expense, such other
instruments, documents, certificates, and opinions reasonably required by the
Administrative Agent in connection therewith.

 

SECTION 5.                                                 DEFINITIONS;
INTERPRETATION.

 

                Section 5.1.       Definitions.  The following terms when used herein shall
have the following meanings:

 

“Account Debtor” means any Person obligated to make payment on any
Receivable.

 

“Acquired Business” means the entity or assets acquired by the Borrower
or a Subsidiary in an Acquisition, whether before or after the date hereof.

 

“Acquisition” means any transaction or series of related
transactions for the purpose of or resulting, directly or indirectly, in (a) the
acquisition of all or substantially all of the assets of a 

 

22

 

Person, or of any
business or division of a Person, (b) the acquisition of in excess of 50%
of the capital stock, partnership interests, membership interests or equity of
any Person (other than a Person that is a Subsidiary), or otherwise causing any
Person to become a Subsidiary, or (c) a merger or consolidation or any
other combination with another Person (other than a Person that is a
Subsidiary) provided that the Borrower or the Subsidiary is the surviving
entity.

 

“Acquisition Credit” means the credit facility for the
Acquisition Loans described in Section 1.1(b) hereof.

 

“Acquisition Credit Commitment” means, as to any Lender, the obligation
of such Lender to make its Acquisition Loans in the principal amount not to
exceed the amount set forth opposite such Lender’s name on Schedule 1
attached hereto and made a part hereof.

 

“Acquisition Credit Commitment Termination Date” means the earliest to occur of (i) the
consummation of the Vyvx Acquisition, (ii) the date on which the
Acquisition Credit Commitments are reduced to $0 pursuant to Section 1.1(b) hereof,
(iii) July 13, 2009, and (iv) the date on which the Acquisition
Credit Commitments are terminated in whole pursuant to Section 1.13, 9.2
or 9.3 hereof.

 

“Acquisition Loan” is defined in Section 1.1(b) hereof and, as
so defined, includes a Base Rate Loan or a Eurodollar Loan, each of which is a “type” of Acquisition Loan hereunder.

 

“Acquisition Loan Final Maturity Date” means March 13, 2014.

 

“Acquisition Note” is defined in Section 1.11 hereof.

 

“Acquisition Percentage” means, for each Lender, the percentage
of the Acquisition Credit Commitments represented by such Lender’s Acquisition
Credit Commitment or, if the Acquisition Credit Commitments have been
terminated or have expired, the percentage held by such Lender of the aggregate
principal amount of all Acquisition Loans then outstanding.

 

“Adjusted EBITDA” means, with reference to any period, Net Income for
such period plus all amounts deducted in arriving at
such Net Income amount in respect of (a) Interest Expense for such period,
(b) federal, state, and local income taxes for such period, (c) depreciation
of fixed assets and amortization of intangible assets for such period, (d) Transactions
Costs, (e) any non-recurring costs and extraordinary expenses approved by
the Administrative Agent in its sole discretion, (f) restructuring charges
and any other items approved by the Administrative Agent in its sole reasonable
discretion, plus (g) synergies related to a
Permitted Acquisition approved by the Administrative Agent in its sole
reasonable discretion; provided that
Adjusted EBITDA shall be (i) $10,053,000 for the three months ended June 30, 2007,
(ii) $9,247,000 for the three months ended September 30, 2007,
and (iii) $10,267,000 for the three months ended December 31, 2007;
provided, further that there shall be
included in such determination for such period all such amounts attributable to
any Person acquired during such period pursuant to a Permitted Acquisition to
the extent not subsequently sold or otherwise disposed of during such period.

 

23

 

 

“Adjusted LIBOR” is defined in Section 1.4(b) hereof.

 

“Administrative Agent” means Bank of Montreal, in is capacity as
Administrative Agent hereunder, and any successor in such capacity pursuant to Section 11.7
hereof.

 

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

 

“Affiliate” means any Person directly or indirectly
controlling or controlled by, or under direct or indirect common control with,
another Person.  A Person shall be deemed
to control another Person for purposes of this definition if such Person
possesses, directly or indirectly, the power to direct, or cause the direction
of, the management and policies of the other Person, whether through the
ownership of voting securities, common directors, trustees or officers, by
contract or otherwise; provided that,
in any event for purposes of this definition, any Person that owns, directly or
indirectly, 5% or more of the securities having the ordinary voting power for
the election of directors or governing body of a corporation or 5% or more of
the partnership or other ownership interest of any other Person (other than as
a limited partner of such other Person) will be deemed to control such
corporation or other Person.

 

“Agreement” means this Amended and Restated Credit
Agreement, as the same may be amended, modified, restated or supplemented from
time to time pursuant to the terms hereof.

 

“Applicable Margin” means, with respect to Loans,
Reimbursement Obligations, and the commitment fees and letter of credit fees
payable under Section 2.1 hereof, until the first Pricing Date, the rates
per annum shown opposite Level II in Grid A below or Level I in
Grid B below (or Level IV in Grid A below or Level II in
Grid B below if the Bridge Loan is funded on the Closing Date), and
thereafter from one Pricing Date to the next the Applicable Margin means the
rates per annum determined in accordance with the following schedule:

 

 

GRID A

 

	
  LEVEL

  	
   

  	
  TOTAL LEVERAGE RATIO FOR SUCH

  PRICING DATE

  	
   

  	
  APPLICABLE MARGIN FOR 

  BASE RATE LOANS UNDER 

  REVOLVING CREDIT, TERM A 

  CREDIT AND 

  REIMBURSEMENT 

  OBLIGATIONS SHALL BE:

  	
   

  	
  APPLICABLE MARGIN FOR EURODOLLAR 

  LOANS UNDER REVOLVING CREDIT, 

  TERM A CREDIT AND LETTER OF CREDIT 

  FEE SHALL BE:

  
	
  IV

  	
   

  	
  Greater than 3.0 to 1.0

  	
   

  	
  1.25 %

  	
   

  	
  2.75 %

  
	
  III

  	
   

  	
  Less than or equal to
  3.0 to 1.0, but greater than 2.5 to 1.0

  	
   

  	
  1.00 %

  	
   

  	
  2.50 %

  
	
  II

  	
   

  	
  Less than or equal to
  2.5 to 1.0, but greater than 2.0 to 1.0

  	
   

  	
  0.75 %

  	
   

  	
  2.25 %

  
	
  I

  	
   

  	
  Less than or equal to
  2.0 to 1.0

  	
   

  	
  0.50 %

  	
   

  	
  2.00 %

  

 

 

24

 

GRID B 

 

	
  LEVEL

  	
   

  	
  TOTAL LEVERAGE RATIO FOR SUCH

  PRICING DATE

  	
   

  	
  APPLICABLE MARGIN FOR 

  BASE RATE LOANS UNDER 

  ACQUISITION CREDIT SHALL BE:

  	
   

  	
  APPLICABLE MARGIN FOR 

  EURODOLLAR LOANS UNDER 

  ACQUISITION CREDIT SHALL BE:

  
	
  II

  	
   

  	
  Greater than 2.5 to 1.0

  	
   

  	
  1.50%

  	
   

  	
  3.00%

  
	
  I

  	
   

  	
  Less than or equal to
  2.5 to 1.0

  	
   

  	
  1.00%

  	
   

  	
  2.50%

  

 

For purposes hereof, the
term “Pricing Date” means, (i) for any
fiscal quarter of the Borrower ending on or after June 30, 2008, the date
on which the Administrative Agent is in receipt of the Borrower’s most recent
financial statements (and, in the case of the year-end financial statements,
audit report) for the fiscal quarter then ended, pursuant to Section 8.5 hereof
and (ii) on any date after the Closing Date, on each such date on which
the Borrower or any Guarantor consummates a Permitted Acquisition that is
financed (in whole or in part) by an Acquisition Loan.  The Applicable Margin shall be established
based on the Total Leverage Ratio for the most recently completed fiscal
quarter (calculated, in the case of clause (ii) above, as if the Permitted
Acquisition was consummated on the last day of the immediately preceding fiscal
quarter) and the Applicable Margin established on a Pricing Date shall remain
in effect until the next Pricing Date. 
If the Borrower has not delivered its financial statements by the date
such financial statements (and, in the case of the year-end financial
statements, audit report) are required to be delivered under Section 8.5
hereof, until such financial statements and audit report are delivered, the
Applicable Margin shall be the highest Applicable Margin (i.e.,
Level IV with respect to Grid A and Level II with respect to
Grid B shall apply).  If the
Borrower subsequently delivers such financial statements before the next
Pricing Date, the Applicable Margin established by such late delivered
financial statements shall take effect from the date of delivery until the next
Pricing Date.  In all other
circumstances, the Applicable Margin established by such financial statements
shall be in effect from the Pricing Date that occurs immediately after the end
of the fiscal quarter covered by such financial statements until the next
Pricing Date.  Each determination of the
Applicable Margin made by the Administrative Agent in accordance with the
foregoing shall be conclusive and binding on the Borrower and the Lenders if
reasonably determined.

 

“Application” is defined in Section 1.3(b) hereof.

 

“Approved Fund” means any Fund that is administered or
managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an
entity or an Affiliate of an entity that administers or manages a Lender.

 

“Assignment and Acceptance” means an assignment and acceptance
entered into by a Lender and an Eligible Assignee (with the consent of any
party whose consent is required by Section 13.12 hereof), and accepted by
the Administrative Agent, in substantially the form of Exhibit G or any
other form approved by the Administrative Agent.

 

 

25

 

“Authorized Representative” means those persons shown on the list of
officers provided by the Borrower pursuant to Section 7.2 hereof or on any
update of any such list provided by the Borrower to the Administrative Agent,
or any further or different officers of the Borrower so named by any Authorized
Representative of the Borrower in a written notice to the Administrative Agent.

 

“Base Rate” is defined in Section 1.4(a) hereof.

 

“Base Rate Loan” means a Loan bearing interest at a rate
specified in Section 1.4(a) hereof.

 

“Borrower” is defined in the introductory paragraph
of this Agreement.

 

“Borrowing” means the total of Loans of a single
type advanced, continued for an additional Interest Period, or converted from a
different type into such type by the Lenders under a Credit on a single date
and, in the case of Eurodollar Loans, for a single Interest Period.  Borrowings of Loans are made and maintained
ratably from each of the Lenders under a Credit according to their Percentages
of such Credit.  A Borrowing is “advanced” on the day Lenders advance funds comprising such
Borrowing to the Borrower, is “continued” on
the date a new Interest Period for the same type of Loans commences for such
Borrowing, and is “converted” when such Borrowing
is changed from one type of Loans to the other, all as determined pursuant to Section 1.6
hereof.  Borrowings of Swing Loans are
made by the Swing Line Lender in accordance with the procedures set forth in Section 1.7
hereof.

 

“Bridge Loan” shall mean the Subordinated Debt of the
Borrower and its Subsidiaries to be funded in connection with the Vyvx
Acquisition.

 

“Business Day” means any day (other than a Saturday or
Sunday) on which banks are not authorized or required to close in Chicago,
Illinois and, if the applicable Business Day relates to the advance or
continuation of, or conversion into, or payment of a Eurodollar Loan, on which
banks are dealing in U.S. Dollar deposits in the interbank eurodollar market in
London, England and Nassau, Bahamas.

 

“Capital Expenditures” means, with respect to any Person for
any period, the aggregate amount of all expenditures (whether paid in cash or
accrued as a liability) by such Person during that period for the acquisition
or leasing (pursuant to a Capital Lease) of fixed or capital assets or
additions to property, plant, or equipment (including replacements, capitalized
repairs, and improvements) which should be capitalized on the balance sheet of
such Person in accordance with GAAP.

 

“Capital Lease” means any lease of Property which in
accordance with GAAP is required to be capitalized on the balance sheet of the
lessee.

 

“Capitalized Lease Obligation” means, for any Person, the amount of the
liability shown on the balance sheet of such Person in respect of a Capital Lease
determined in accordance with GAAP.

 

 

26

 

“CERCLA” means the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended by the Superfund
Amendments and Reauthorization Act of 1986, 42 U.S.C. §§9601
et seq., and any future amendments.

 

“Change of Control” means any of (a) the acquisition by
any “person” or “group”
(as such terms are used in sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) at any time of beneficial
ownership of 50% or more of the outstanding capital stock or other equity
interests of the Borrower on a fully-diluted basis, other than acquisitions of
such interests by Scott K. Ginsburg, (b) the failure of individuals who
are members of the board of directors (or similar governing body) of the
Borrower on the Closing Date (together with any new or replacement directors
whose initial nomination for election was approved by a majority of the
directors who were either directors on the Closing Date or previously so
approved) to constitute a majority of the board of directors (or similar
governing body) of the Borrower, or (c) any “Change of Control” (or words
of like import), as defined in any agreement or indenture relating to any issue
of Indebtedness for Borrowed Money of the Borrower or any Subsidiary shall
occur.

 

“Closing Date” means the date of this Agreement or such
later Business Day upon which each condition described in Section 7.2
shall be satisfied or waived in a manner acceptable to the Administrative Agent
in its discretion.

 

“Code” means the Internal Revenue Code of 1986,
as amended, and any successor statute thereto.

 

“Collateral” means all properties, rights, interests,
and privileges from time to time subject to the Liens granted to the
Administrative Agent, or any security trustee therefor, by the Collateral
Documents.

 

“Collateral Account” is defined in Section 9.4 hereof.

 

“Collateral Documents” means the Mortgages, the Security
Agreement, and all other mortgages, deeds of trust, security agreements, pledge
agreements, assignments, financing statements and other documents as shall from
time to time secure or relate to the Obligations, the Hedging Liability, and
the Funds Transfer and Deposit Account Liability or any part thereof.

 

“Commitments” means the Revolving Credit Commitments,
the Term Loan Commitments and the Acquisition Credit Commitments.

 

“Controlled Group” means all members of a controlled group
of corporations and all trades or businesses (whether or not incorporated)
under common control which, together with the Borrower, are treated as a single
employer under Section 414 of the Code.

 

“Credit” means any of the Revolving Credit, the
Term A Credit and the Acquisition Credit.

 

 

27

 

“Credit Event” means the advancing of any Loan, or the
issuance of, or extension of the expiration date or increase in the amount of,
any Letter of Credit.

 

“Default” means any event or condition the
occurrence of which would, with the passage of time or the giving of notice, or
both, constitute an Event of Default.

 

“Designated Disbursement Account” means the account of the Borrower
maintained with the Wachovia Bank, National Association and designated in
writing to the Administrative Agent as the Borrower’s Designated Disbursement
Account (or such other account as the Borrower and the Administrative Agent may
otherwise agree).

 

“Disposition” means the sale, lease, conveyance or
other disposition of Property, other than sales or other dispositions expressly
permitted under  Sections 8.10(a), 8.10(b),
or 8.10(d) hereof.

 

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

 

“EBITDA” means, with reference to any period, Net
Income for such period plus all
amounts deducted in arriving at such Net Income amount in respect of (a) Interest
Expense for such period, (b) federal, state, and local income taxes for
such period, and (c) depreciation of fixed assets and amortization of
intangible assets for such period.

 

“ECF Prepayment Percentage” means (i) 50% for the fiscal year
ending December 31, 2008; provided that
so long as no Event of Default shall have occurred and be continuing such
percentage shall be 25% if the Total Leverage Ratio as demonstrated by the
financial statements of the Borrower submitted pursuant to Section 8.5
hereof has been less than 2.50 to 1.00 for two (2) consecutive fiscal
quarters ending on or before December 31, 2008; and

 

(ii) 50% for each
fiscal year ending on or after December 31, 2009; provided
that so long as no Event of Default shall have occurred and be
continuing such percentage shall be permanently reduced to (a) 25% at such
time as the Total Leverage Ratio as demonstrated by the financial statements of
the Borrower submitted pursuant to Section 8.5 hereof has been less than
2.50 to 1.00 for two (2) consecutive fiscal quarters ending on or after September 30,
2009, and (b) 0% at such time as the Total Leverage Ratio as demonstrated
by the financial statements of the Borrower submitted pursuant to Section 8.5
hereof has been less than 2.00 to 1.00 for two (2) consecutive fiscal
quarters ending on or after September 30, 2009.

 

“Effective Date” is defined in Section 7.2 hereof.

 

“Eligible Assignee” means (a) a Lender, (b) an
Affiliate of a Lender, (c) an Approved Fund, and (d) any other Person
(other than a natural person) approved by (i) the Administrative Agent, (ii) in
the case of any assignment of a Revolving Credit Commitment, the
L/C Issuer, and (iii) unless an Event of Default has occurred and is
continuing, the Borrower (each such approval not to be unreasonably withheld or
delayed); provided that notwithstanding the
foregoing, “Eligible Assignee” shall not include the Borrower or any Guarantor
or any of the Borrower’s or such Guarantor’s Affiliates or Subsidiaries.

 

 

28

 

“Eligible Line of Business” means any business engaged in as of the
date of this Agreement by the Borrower or any of its Subsidiaries.

 

“Environmental Claim” means any investigation, notice,
violation, demand, allegation, action, suit, injunction, judgment, order,
consent decree, penalty, fine, lien, proceeding or claim (whether
administrative, judicial or private in nature) arising (a) pursuant to, or
in connection with an actual or alleged violation of, any Environmental Law, (b) in
connection with any Hazardous Material, (c) from any abatement, removal,
remedial, corrective or response action in connection with a Hazardous
Material, Environmental Law or order of a governmental authority or (d) from
any actual or alleged damage, injury, threat or harm to health, safety, natural
resources or the environment.

 

“Environmental Law” means any current or future Legal
Requirement pertaining to (a) the protection of health, safety and the indoor
or outdoor environment, (b) the conservation, management or use of natural
resources and wildlife, (c) the protection or use of surface water or
groundwater, (d) the management, manufacture, possession, presence, use,
generation, transportation, treatment, storage, disposal, Release, threatened
Release, abatement, removal, remediation or handling of, or exposure to, any
Hazardous Material or (e) pollution (including any Release to air, land,
surface water or groundwater), and any amendment, rule, regulation, order or
directive issued thereunder.

 

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended, or any successor statute thereto.

 

“Eurodollar Loan” means a Loan bearing interest at the
rate specified in Section 1.4(b) hereof.

 

“Eurodollar Reserve Percentage” is defined in Section 1.4(b) hereof.

 

“Event of Default” means any event or condition identified
as such in Section 9.1 hereof.

 

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

 

“Excess Availability” means, as of any time the same is to be
determined, the amount (if any) by which (a) the Revolving Credit
Commitment as then in effect exceeds (b) the aggregate principal amount of
Revolving Loans, Swing Loans, and L/C Obligations then outstanding.

 

“Excess Cash Flow” means, with respect to any period, the
amount (if any) by which (a) EBITDA (but determined for such purposes
without giving effect to any extraordinary gains or losses) during such period
exceeds (b) the sum of (i) Interest Expense payable in cash during
such period, plus (ii) federal, state and
local income taxes payable in cash during such period, plus
(iii) the aggregate amount of payments required to be made, and actually
made, by the Borrower and its Subsidiaries during such period in respect of all
principal on all Indebtedness of 

 

 

29

 

Borrowed Money
(whether at maturity, as a result of mandatory sinking fund redemption,
mandatory prepayment, acceleration or otherwise, but excluding payments made
under the Revolving Credit and excluding prepayments of the Term Loans made
under Section 1.9 hereof), plus (iv) the
aggregate amount of Capital Expenditures made by the Borrower and its
Subsidiaries during such period to the extent permitted by this Agreement and
not financed with proceeds of Indebtedness for Borrowed Money (but excluding
credit extended under the Revolving Credit), plus
(v) any increases in non-debt, non-cash working capital of the Borrower
and its Subsidiaries for such period, plus (vi) the
aggregate amount of the Total Consideration paid in cash for Permitted
Acquisitions and not financed with the proceeds of Indebtedness for Borrowed
Money, minus (vii) any decreases in
non-debt, non-cash working capital of the Borrower and its Subsidiaries for
such period.  For purposes of determining
Excess Cash Flow for the fiscal year of the Borrower ending December 31,
2008, EBITDA shall include the EBITDA of Vyvx after consummation of the Vyvx
Acquisition.

 

“Existing L/Cs” means the outstanding letters of credit
issued by Bank of Montreal pursuant to the Original Credit Agreement  prior to the date hereof and listed on
Schedule 1.3 hereof.

 

“Federal Funds Rate” means the fluctuating interest rate per
annum described in part (x) of clause (ii) of the definition of Base
Rate appearing in Section 1.4(a) hereof.

 

“Fixed Charge Coverage Ratio” means as of the last day of each fiscal
quarter of the Borrower, the ratio of (a) Adjusted EBITDA minus Capital Expenditures (including any Capital Expenditures
of any Acquired Business) for the same four fiscal quarters then ended to (b) Fixed
Charges for the same four fiscal quarters then ended.

 

“Fixed Charges” means, with reference to any period, the
sum of (a) all scheduled payments of principal made or to be made during
such period with respect to Indebtedness for Borrowed Money of the Borrower and
its Subsidiaries, (b) cash Interest Expense for such period, (c) federal,
state, and local income taxes paid or payable by the Borrower and its
Subsidiaries in cash during such period, (d) the aggregate amount of
dividends paid in cash by the Borrower during such period, and (e) the
aggregate cash consideration paid by the Borrower during such period in
connection with any repurchases of its capital stock; provided
(i) that for each period ending on or prior to December 31, 2008, all
amounts in clauses (a), (b) and (c) above shall be calculated as such
amounts paid from the Closing Date and then annualized and (ii) for each
quarterly period ending on or prior to June 30, 2008 for purposes of
clause (a) above, the Borrower shall be deemed to have made scheduled
principal payments on the Term A Loans in the amount equal to $3,250,000.

 

“Foreign Subsidiary” means each Subsidiary which (a) is
organized under the laws of a jurisdiction other than the United States of
America or any state thereof or the District of Columbia, (b) conducts
substantially all of its business outside of the United States of America, and (c) has
substantially all of its assets outside of the United States of America.

 

 

30

 

“Fund” means any Person (other than a natural
person) that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the
ordinary course of its business.

 

“Funds Transfer and Deposit
Account Liability”
means the liability of the Borrower or any  Subsidiary  owing to any of the Lenders, or any Affiliates of such
Lenders, arising out of (a) the execution or processing of electronic
transfers of funds by automatic clearing house transfer, wire transfer or
otherwise to or from deposit accounts of the Borrower and/or any Subsidiary  now or hereafter maintained with any of the Lenders or
their Affiliates, (b) the acceptance for deposit or the honoring for
payment of any check, draft or other item with respect to any such deposit
accounts, and (c) any other deposit, disbursement, and cash management
services afforded to the Borrower or any Subsidiary  by
any of such Lenders or their Affiliates.

 

“GAAP” means generally accepted accounting
principles set forth from time to time in the opinions and pronouncements of
the Accounting Principles Board and the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board (or agencies with similar functions of comparable stature and
authority within the U.S. accounting profession), which are applicable to the
circumstances as of the date of determination.

 

“Guarantor” and “Guarantors”
each is defined in Section 4.1 hereof.

 

“Guaranty” and “Guaranties”
each is defined in Section 4.1 hereof.

 

“Hazardous Material” means any substance, chemical, compound,
product, solid, gas, liquid, waste, byproduct, pollutant, contaminant or
material which is hazardous or toxic, and includes, without limitation, (a) asbestos,
polychlorinated biphenyls and petroleum (including crude oil or any fraction
thereof) and (b) any material classified or regulated as “hazardous” or “toxic”
or words of like import pursuant to an Environmental Law.

 

“Hazardous Material Activity” means any activity, event or occurrence
involving a Hazardous Material, including, without limitation, the manufacture,
possession, presence, use, generation, transportation, treatment, storage,
disposal, Release, threatened Release, abatement, removal, remediation,
handling of or corrective or response action to any Hazardous Material.

 

“Hedging Liability” means the liability of the Borrower or
any Subsidiary  to any of the Lenders, or any
Affiliates of such Lenders, in respect of any interest rate, foreign currency,
and/or commodity swap, exchange, cap, collar, floor, forward, future or option
agreement, or any other similar interest rate, currency or commodity hedging arrangement,
as the Borrower or such Subsidiary, as the case may be, may from time to time
enter into with any one or more of the Lenders party to this Agreement or their
Affiliates.

 

“Hostile Acquisition” means the acquisition of the capital
stock or other equity interests of a Person through a tender offer or similar
solicitation of the owners of such capital stock or other equity interests
which has not been approved (prior to such acquisition) by resolutions of 

 

 

31

 

the Board of
Directors of such Person or by similar action if such Person is not a
corporation, or as to which such approval has been withdrawn.

 

“Indebtedness for Borrowed Money” means for any Person (without
duplication) (a) all indebtedness created, assumed or incurred in any
manner by such Person representing money borrowed (including by the issuance of
debt securities, including but not limited to convertible debentures), (b) all
indebtedness for the deferred purchase price of property or services (other
than trade accounts payable arising in the ordinary course of business which
are not more than thirty (30) days past due), (c) all indebtedness secured
by any Lien upon Property of such Person, whether or not such Person has
assumed or become liable for the payment of such indebtedness, (d) all
Capitalized Lease Obligations of such Person, and (e) all obligations of
such Person on or with respect to letters of credit, bankers’ acceptances and
other extensions of credit whether or not representing obligations for borrowed
money.

 

“Interest Expense” means, with reference to any period, the
sum of all interest charges (including imputed interest charges with respect to
Capitalized Lease Obligations and all amortization of debt discount and expense)
of the Borrower and its Subsidiaries for such period determined on a
consolidated basis in accordance with GAAP.

 

“Interest Payment Date” means (a) with respect to any
Eurodollar Loan, the last day of each Interest Period with respect to such
Eurodollar Loan and on the maturity date and, if the applicable Interest Period
is longer than three (3) months, on each day occurring every three (3) months
after the commencement of such Interest Period, (b) with respect to any
Base Rate Loan (other than Swing Loans), the last day of every quarter and on
the maturity date, and (c) as to any Swing Loan, (i) bearing interest
by reference to the Base Rate, the last day of every quarter, and on the
maturity date and (ii) bearing interest by reference to the  Quoted Rate, the last day of the Interest
Period with respect to such Swing Loan, and on the maturity date.

 

“Interest Period” means the period commencing on the date
a Borrowing of Eurodollar Loans or Swing Loans (bearing interest at the  Quoted Rate) is advanced, continued, or
created by conversion and ending (a) in the case of Eurodollar Loans, 1,
2, 3, or 6 months thereafter and (b) in the case of Swing Loans
bearing interest at the  Quoted Rate, on
the date one (1) to five (5) Business Days thereafter as mutually
agreed by the Borrower and the Swing Line Lender, provided,
however, that:

 

                    (i)        no
Interest Period shall extend beyond the final maturity date of the relevant
Loans;

 

                   (ii)        no
Interest Period with respect to any portion of the Term A Loans or Acquisition
Loans shall extend beyond a date on which the Borrower is required to make a
scheduled payment of principal on the Term A Loans or Acquisition Loans, as
applicable unless the sum of (a) the aggregate principal amount of Term A
Loans or Acquisition Loans, as applicable, that are Base Rate Loans plus (b) the aggregate principal amount of Term A Loans
or Acquisition Loans, as applicable, that are Eurodollar Loans with Interest
Periods expiring on or before such date equals or exceeds 

 

 

32

 

the principal amount to
be paid on the Term A Loans or Acquisition Loans, as applicable, on such
payment date;

 

                  (iii)        whenever
the last day of any Interest Period would otherwise be a day that is not a
Business Day, the last day of such Interest Period shall be extended to the
next succeeding Business Day, provided that,
if such extension would cause the last day of an Interest Period for a
Borrowing of Eurodollar Loans to occur in the following calendar month, the
last day of such Interest Period shall be the immediately preceding Business
Day; and

 

                  (iv)        for
purposes of determining an Interest Period for a Borrowing of Eurodollar Loans,
a month means a period starting on one day in a calendar month and ending on
the numerically corresponding day in the next calendar month; provided, however, that if there is no numerically
corresponding day in the month in which such an Interest Period is to end or if
such an Interest Period begins on the last Business Day of a calendar month,
then such Interest Period shall end on the last Business Day of the calendar
month in which such Interest Period is to end.

 

“L/C Issuer “ means Bank of Montreal, in its capacity
as the issuer of Letters of Credit hereunder, and its successors in such capacity
as provided in Section 1.3(h) hereof.

 

“L/C Obligations” means the aggregate undrawn face amounts
of all outstanding Letters of Credit and all unpaid Reimbursement Obligations.

 

“L/C Sublimit” means $5,000,000, as reduced pursuant to
the terms hereof.

 

“Legal Requirement” means any treaty, convention, statute,
law, regulation, ordinance, license, permit, governmental approval, injunction,
judgment, order, consent decree or other requirement of any governmental
authority, whether federal, state, or local.

 

“Lenders” means and includes the financial
institutions from time to time party to this Agreement, including each assignee
Lender pursuant to Section 13.12 hereof and, unless the context otherwise
requires, the Swing Line Lender.

 

“Lending Office” is defined in Section 10.4 hereof.

 

“Letter of Credit” is defined in Section 1.3(a) hereof.

 

“LIBOR” is defined in Section 1.4(b) hereof.

 

“Lien” means any mortgage, lien, security
interest, pledge, charge or encumbrance of any kind in respect of any Property,
including the interests of a vendor or lessor under any conditional sale,
Capital Lease or other title retention arrangement.

 

 

33

 

“Loan” means any Revolving Loan, Swing Loan,
Term A Loan or Acquisition Loan, whether outstanding as a Base Rate Loan or
Eurodollar Loan or otherwise, each of which is a “type”
of Loan hereunder.

 

“Loan Documents” means this Agreement, the Notes (if
any), the Applications, the Collateral Documents, the Guaranties, and each other
instrument or document to be delivered hereunder or thereunder or otherwise in
connection therewith.

 

“Material Adverse Effect” means (a) a material adverse change
in, or material adverse effect upon, the operations, business, Property,
condition (financial or otherwise) or prospects of the Borrower or of the
Borrower and its Subsidiaries taken as a whole, (b) a material impairment
of the ability of the Borrower or any Subsidiary to perform its material
obligations under any Loan Document or (c) a material adverse effect upon (i) the
legality, validity, binding effect or enforceability against the Borrower or
any Subsidiary of any Loan Document or the rights and remedies of the
Administrative Agent and the Lenders thereunder or (ii) the perfection or
priority of any Lien granted under any Collateral Document.

 

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

 

“Mortgages” means, collectively, each Mortgage and
Security Agreement with Assignment of Rents and each Deed of Trust and Security
Agreement with Assignment of Rents between the Borrower or the relevant
Guarantor and the Administrative Agent relating to such Person’s real property
owned as of the Closing Date and any other mortgages or deeds of trust
delivered to the Administrative Agent pursuant to Section 4.3 hereof, as
the same may be amended, modified, supplemented or restated from time to time.

 

“Net Cash Proceeds” means, as applicable, (a) with
respect to any Disposition by a Person, cash and cash equivalent proceeds
received by or for such Person’s account, net of (i) reasonable costs,
fees and expenses incurred in connection therewith, (ii) income, sale, use
or other transactional taxes paid or payable by such Person as a result of such
Disposition, and (iii) the principal amount of, premium, if any, and
interest on any Indebtedness for Borrowed Money secured by a Lien on the asset
(or a portion thereof) disposed of, which Indebtedness for Borrowed Money is
required to be repaid in connection with such Disposition, (b) with
respect to any Event of Loss of a Person, cash and cash equivalent proceeds
received by or for such Person’s account (whether as a result of payments made
under any applicable insurance policy therefor or in connection with
condemnation proceedings or otherwise), net of (i) reasonable costs, fees
and expenses incurred in connection with the collection of such proceeds,
awards or other payments and (ii) the principal amount, premium, if any,
and interest on any Indebtedness for Borrowed Money secured by a Lien on the
asset (or a portion thereof) subject to such Event of Loss, which Indebtedness
for Borrowed Money is required to be repaid in connection with such Event of
Loss, and (c) with respect to any issuance of any Indebtedness for
Borrowed Money by a Person,  cash and
cash equivalent proceeds received by or for such Person’s account, net of
reasonable legal, underwriting, and other fees and expenses incurred in
connection therewith.

 

 

34

 

“Net Income” means, with reference to any period, the
net income (or net loss) of the Borrower and its Subsidiaries for such period
computed on a consolidated basis in accordance with GAAP; provided
that there shall be excluded from Net Income (a) the net income (or net
loss) of any Person accrued prior to the date it becomes a Subsidiary of, or
has merged into or consolidated with, the Borrower or another Subsidiary, (b) the
net income (or net loss) of any Person (other than a Subsidiary) in which the
Borrower or any of its Subsidiaries has a equity interest in, except to the
extent of the amount of dividends or other distributions actually paid to the
Borrower or any of its Subsidiaries during such period, (c) any non-cash
gains or non-cash losses, (d) any other extraordinary gains or
extraordinary losses, (e) any results from discontinued operations and (f) impairment
charges with respect to any assets.

 

“Net Worth” means, for any Person and at any time the
same is to be determined, the difference between total assets and total
liabilities of such Person, total assets and total liabilities each to be
determined in accordance with GAAP.

 

“Note” and “Notes” each is
defined in Section 1.11 hereof.

 

“Obligations” means all obligations of the Borrower to
pay principal and interest on the Loans, all Reimbursement Obligations owing
under the Applications, all fees and charges payable hereunder, and all other
payment obligations of the Borrower or any of its Subsidiaries arising under or
in relation to any Loan Document, in each case whether now existing or hereafter
arising, due or to become due, direct or indirect, absolute or contingent, and
howsoever evidenced, held or acquired.

 

“Participating Interest” is defined in Section 1.3(e) hereof.

 

“Participating Lender” is defined in Section 1.3(e) hereof.

 

“PBGC” means the Pension Benefit Guaranty
Corporation or any Person succeeding to any or all of its functions under
ERISA.

 

“Percentage” means for any Lender its Revolver
Percentage, Term A Loan Percentage, or Acquisition Percentage as applicable;
and where the term “Percentage” is
applied on an aggregate basis (including, without limitation, Section 11.6
hereof), such aggregate percentage shall be calculated by aggregating the
separate components of the Revolver Percentage, Term A Loan Percentage, or
Acquisition Percentage, and expressing such components on a single percentage
basis.

 

“Permitted Acquisition” means (i) the Vyvx Acquisition and (ii) any
Acquisition with respect to which all of the following conditions shall have
been satisfied:

 

                   (a)        the
Acquired Business is in an Eligible Line of Business and has its primary
operations within the United States of America;

 

                   (b)        the
Acquisition shall not be a Hostile Acquisition;

 

 

35

 

                   (c)        the
financial statements of the Acquired Business shall have been audited by a
nationally recognized accounting firm or such financial statements shall have
undergone review of a scope satisfactory to the Administrative Agent;

 

                   (d)        the
Total Consideration for the Acquired Business shall not exceed $40,000,000 and,
when taken together with the Total Consideration for all Acquired Businesses
acquired since the Closing Date, shall not exceed $75,000,000 in the aggregate;
provided that the Total Consideration
for Vyvx and any acquisitions occurring prior to the Closing Date shall not be
included in determining compliance with this provision;

 

                   (e)        the
Borrower shall have notified the Administrative Agent and Lenders not less than
30 days prior to any such Acquisition and furnished to the Administrative Agent
and Lenders at such time reasonable details as to such Acquisition (including
sources and uses of funds therefor), and 3-year historical financial
information and 3-year pro forma
financial forecasts of the Acquired Business on a stand alone basis as well as
of the Borrower on a consolidated basis after giving effect to the Acquisition
and covenant compliance calculations reasonably satisfactory to the
Administrative Agent demonstrating satisfaction of the condition described in
clause (g) below;

 

                    (f)        if
a new Subsidiary is formed or acquired as a result of or in connection with the
Acquisition, the Borrower shall have complied with the requirements of Section 4
hereof in connection therewith;

 

                   (g)        after
giving effect to the Acquisition and any Credit Event in connection therewith,
no Default or Event of Default shall exist;

 

                   (h)        the
Borrower delivers to the Administrative Agent evidence reasonably satisfactory
to the Administrative Agent that the Borrower would be in compliance with Section 8.22(a) and
Section 8.22(b) hereof on a pro forma basis
(assuming the indebtedness incurred at the time of such Acquisition was
incurred on the first day of such 12-month period and on a pro forma
basis after giving effect to such Acquisition) by more than 0.25 to 1.0;

 

                    (i)        the
Acquired Business has Adjusted EBITDA, the calculation and determination of
which shall be reasonably acceptable to the Administrative Agent, greater than
zero; and

 

                    (j)        all
obligations under the Bridge Loan, if funded, shall have been repaid from the
proceeds from the issuance of equity or the issuance of Subordinated Debt
permitted by Section 8.7(h) hereof; and

 

                   (k)        after
giving effect to the Acquisition and any Credit Event in connection therewith,
the Borrower shall have not less than $5,000,000 of Excess Availability.

 

 

36

 

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

 

“Plan” means any employee pension benefit plan
covered by Title IV of ERISA or subject to the minimum funding standards
under Section 412 of the Code that either (a) is maintained by a
member of the Controlled Group for employees of a member of the Controlled
Group or (b) is maintained pursuant to a collective bargaining agreement
or any other arrangement under which more than one employer makes contributions
and to which a member of the Controlled Group is then making or accruing an
obligation to make contributions or has within the preceding five plan years
made contributions.

 

“Premises” means the real property owned or leased
by the Borrower or any Subsidiary, including without limitation the real
property and improvements thereon owned by the Borrower or any Subsidiary
subject to the Lien of the Mortgages or any other Collateral Documents.

 

“Property” means, as to any Person, all types of
real, personal, tangible, intangible or mixed property owned by such Person
whether or not included in the most recent balance sheet of such Person and its
subsidiaries under GAAP.

 

“Quoted Rate” is defined in Section 1.7(c) hereof.

 

“RCRA” means the Solid Waste Disposal Act, as
amended by the Resource Conservation and Recovery Act of 1976 and Hazardous and
Solid Waste Amendments of 1984, 42 U.S.C. §§6901
et seq., and any future amendments.

 

“Reimbursement Obligation” is defined in Section 1.3(c) hereof.

 

“Release” means any spilling, leaking, pumping,
pouring, emitting, emptying, discharging, injecting, escaping, leaching,
migration, dumping, or disposing into the indoor or outdoor environment,
including, without limitation, the abandonment or discarding of barrels, drums,
containers, tanks or other receptacles containing or previously containing any
Hazardous Material.

 

“Required Lenders” means, as of the date of determination
thereof, Lenders whose outstanding Loans and interests in Letters of Credit and
Unused Revolving Credit Commitments constitute more than fifty percent (50%)  of the sum of the total outstanding Loans, interests in
Letters of Credit, and Unused Revolving Credit Commitments of the Lenders.

 

“Revolver Percentage” means, for each Lender, the percentage
of the Revolving Credit Commitments represented by such Lender’s Revolving
Credit Commitment or, if the Revolving Credit Commitments have been terminated,
the percentage held by such Lender (including through participation interests
in Reimbursement Obligations) of the aggregate principal amount of all
Revolving Loans and L/C Obligations then outstanding.

 

 

37

 

“Revolving Credit” means the credit facility for making Revolving Loans
and Swing Loans and issuing Letters of Credit described in Sections 1.2,
1.3 and 1.7 hereof.

 

“Revolving Credit Commitment” means, as to any Lender, the obligation
of such Lender to make Revolving Loans and to participate in Swing Loans and
Letters of Credit issued for the account of the Borrower hereunder in an
aggregate principal or face amount at any one time outstanding not to exceed
the amount set forth opposite such Lender’s name on Schedule 1 attached
hereto and made a part hereof, as the same may be reduced or modified at any
time or from time to time pursuant to the terms hereof.

 

“Revolving Credit Termination Date” means March 13, 2013, or such
earlier date on which the Revolving Credit Commitments are terminated in whole
pursuant to Section 1.13, 9.2 or 9.3 hereof.

 

“Revolving Loan” is defined in Section 1.2 hereof and, as so
defined, includes a Base Rate Loan or a Eurodollar Loan, each of which is a “type” of Revolving Loan hereunder.

 

“Revolving Note” is defined in Section 1.11 hereof.

 

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

 

“Security Agreement” means that certain Amended and Restated Security
Agreement dated as of the date hereof, among the Borrower and the Guarantors
and the Administrative Agent, as the same may be amended, modified,
supplemented or restated from time to time.

 

“Senior Funded Debt” means, at any time the same is to be determined,
Total Funded Debt at such time minus the
principal balance of Subordinated Debt of the Borrower and its Subsidiaries
then outstanding.

 

“Senior Leverage Ratio” means, as of the last day of any fiscal
quarter of the Borrower, the ratio of Senior Funded Debt of the Borrower and
its Subsidiaries as of the last day of such fiscal quarter to Adjusted EBITDA
of the Borrower and its Subsidiaries for the period of four fiscal quarters
then ended.

 

“Subordinated Debt” means Indebtedness for Borrowed Money which is
subordinated in right of payment to the prior payment of the Obligations,
Hedging Liability, and Funds Transfer and Deposit Account Liability pursuant to
subordination provisions approved in writing by the Administrative Agent and is
otherwise pursuant to documentation that is, which is in an amount that is, and
which contains interest rates, payment terms, maturities, amortization
schedules, covenants, defaults, remedies and other material terms that are in
form and substance, in each case satisfactory to the Administrative Agent.

 

“Subordination Agreement” means any agreement entered into by and
among the Administrative Agent and the holders of any Subordinated Debt, in
form and substance satisfactory to the Administrative Agent;
provided, that any Subordination
Agreement entered

 

38

 

into with the holders of
the Bridge Loan shall contain standard terms for agreements of this type
including but not limited to: (i) permanent blockage of payments on the
Bridge Loan during the existence of a payment Event of Default set forth in Section 9.1(a) hereof
and 180 day blockage of payments for all other Defaults or Events of Defaults
set forth in Section 9.1, (ii) limitation on the Borrower’s ability
to increase the Loans and Commitments by more than 10% of the Loans and
Commitments as of the Effective Date, (iii) 180 day standstill period with
respect to the enforcement of remedies and (iv) subject to the standstill
described in clauses (i) and (iii) hereof, the holders of the Bridge Loan
shall be entitled to receive payments of principal from the issuance of equity
and/or Subordinated Debt permitted by this Agreement, and regularly scheduled
payments of interest, fees, costs and expenses.

 

“Subsidiary” means, as to any particular parent corporation or
organization, any other corporation or organization more than 50% of the
outstanding Voting Stock of which is at the time directly or indirectly owned
by such parent corporation or organization or by any one or more other entities
which are themselves subsidiaries of such parent corporation or
organization.  Unless otherwise expressly
noted herein, the term “Subsidiary”
means a Subsidiary of the Borrower or of any of its direct or indirect
Subsidiaries.

 

“Swing Line” means the credit facility for making one or more Swing
Loans described in Section 1.7 hereof.

 

“Swing Line Lender” means BMO Capital Markets Financing, Inc.,
acting in its capacity as the Lender of Swing Loans hereunder, or any successor
Lender acting in such capacity appointed pursuant to Section 13.12 hereof.

 

“Swing Line Sublimit” means $3,000,000, as reduced pursuant to
the terms hereof.

 

“Swing Loan” and “Swing Loans”
each is defined in Section 1.7 hereof.

 

“Swing Note” is defined in Section 1.11 hereof.

 

“Term A Credit” means the credit facility for the Term A
Loans described in Section 1.1(a) hereof.

 

“Term A Loan” is defined in Section 1.1(a) hereof and, as
so defined, includes a Base Rate Loan or a Eurodollar Loan, each of which is a “type” of Term A Loan hereunder.

 

“Term A Loan Commitment” means, as to any Lender, the obligation
of such Lender to make its Term A Loan on the Closing Date in the principal
amount not to exceed the amount set forth opposite such Lender’s name on
Schedule 1 attached hereto and made a part hereof.

 

“Term A Loan Final Maturity Date” means March 13, 2013.

 

“Term A Loan Percentage” means, for each Lender, the percentage
of the Term A Loan Commitments represented by such Lender’s Term A Loan
Commitment or, if the Term A Loan 

 

39

 

Commitments have been
terminated or have expired, the percentage held by such Lender of the aggregate
principal amount of all Term A Loans then outstanding.

 

“Term A Note” is defined in Section 1.11 hereof.

 

“Term Loans” means and includes the Term A Loans and the
Acquisition Loans.

 

“Term Loan Increase” is defined in Section 1.15 hereof.

 

“Term Loan Increase Availability” means (i) in the event the Vyvx
Acquisition has been consummated and all obligations under the Bridge Loan, if
funded, have been repaid, the Borrower may increase the Term A Loans or the
Acquisition Loans in an aggregate amount not less than $5,000,000 and in an
aggregate amount of up to $25,000,000 and (ii) in the event that the Vyvx
Acquisition is not consummated and after the Acquisition Credit Commitment
Termination Date, the Borrower may increase the Term A Loans or Acquisition
Loans by an aggregate amount not less than $5,000,000 and by an aggregate
amount of up to the lesser of (A) $25,000,000 and (B) the greater of (1) $15,000,000
and (2) $50,000,000 minus the
aggregate principal amount of Acquisition Loans advanced.

 

“Term Loan Increase Request” is defined in Section 1.15 hereof.

 

“Total Consideration” means, with respect to an Acquisition,
the sum (but without duplication) of (a) cash paid in connection with any
Acquisition, (b) indebtedness payable to the seller in connection with
such Acquisition, (c) the fair market value of any equity securities,
including any warrants or options therefor, delivered in connection with any
Acquisition, (d) the present value of covenants not to compete entered
into in connection with such Acquisition or other future payments which are
required to be made over a period of time and are not contingent upon the
Borrower or its Subsidiary meeting financial performance objectives (exclusive
of salaries paid in the ordinary course of business) (discounted at the Base
Rate), but only to the extent not included in clause (a), (b) or (c) above,
and (e) the amount of indebtedness assumed in connection with such
Acquisition.

 

“Total Funded Debt” means, at any time the same is to be determined, the
sum (but without duplication) of (a) all Indebtedness for Borrowed Money
of the Borrower and its Subsidiaries at such time, and (b) all
Indebtedness for Borrowed Money of any other Person which is directly or
indirectly guaranteed by the Borrower or any of its Subsidiaries or which the
Borrower or any of its Subsidiaries has agreed (contingently or otherwise) to
purchase or otherwise acquire or in respect of which the Borrower or any of its
Subsidiaries has otherwise assured a creditor against loss.

 

“Total Leverage Ratio” means, as of the last day of any fiscal
quarter of the Borrower, the ratio of Total Funded Debt of the Borrower and its
Subsidiaries as of the last day of such fiscal quarter to Adjusted EBITDA of
the Borrower and its Subsidiaries for the period of four fiscal quarters then
ended.

 

40

 

“Transaction Costs” means all transaction fees, charges and other amounts
related to this Agreement or any Permitted Acquisitions as approved by the
Administrative Agent (including, without limitation, any financing fees, merger
and acquisition fees, legal fees and expenses, due diligence fees or any other
fees and expenses in connection therewith).

 

“Unfunded Vested Liabilities”  means, for any Plan at any time, the
amount (if any) by which the present value of all vested nonforfeitable accrued
benefits under such Plan exceeds the fair market value of all Plan assets
allocable to such benefits, all determined as of the then most recent valuation
date for such Plan, but only to the extent that such excess represents a
potential liability of a member of the Controlled Group to the PBGC or the Plan
under Title IV of ERISA.

 

“Unused Revolving Credit Commitments” means, at any time, the difference
between the Revolving Credit Commitments then in effect and the aggregate
outstanding principal amount of Revolving Loans and L/C Obligations.

 

“Unused Acquisition Commitments” means, at any time, the difference
between the Acquisition Credit Commitment in effect at such time and the
aggregate principal amount of all Acquisition Loans advanced on or prior to the
Acquisition Credit Commitment Termination Date.

 

“U.S. Dollars” and “$” each means
the lawful currency of the United States of America.

 

“Voting Stock” of any Person means capital stock or other equity
interests of any class or classes (however designated) having ordinary power
for the election of directors or other similar governing body of such Person,
other than stock or other equity interests having such power only by reason of
the happening of a contingency.

 

“Vyvx” means collectively, Level 3 Communications LLC, a
Delaware limited liability company, Wiltel Communications, LLC, a Delaware
limited liability company and Vyvx, LLC, a Delaware limited liability company.

 

“Vyvx Acquisition” means the acquisition of the substantially all of the
assets of Vyvx upon satisfaction of the following conditions:

 

(a)                                  if a new Subsidiary is formed or acquired
as a result of or in connection with the Vyvx Acquisition, the Borrower shall
have complied with the requirements of Section 4 hereof in connection
therewith and shall deliver to the Administrative Agent (i) certified
resolutions of the Board of Directors of such new Subsidiary authorizing the
actions required by Section 4 hereof, (i) articles of incorporation
certified by the Secretary of State of such new Subsidiaries state of
incorporation, (iii) by-laws certified to the Administrative Agent by an
authorized officer of such new Subsidiary, (iv) a good standing
certificate of such new Subsidiary from the state of incorporation, and (v) an
opinion of counsel to such new Subsidiary;

 

(b)                                 the Administrative Agent shall have
received (i) a quality of earnings report on Vyvx conducted by a big four
accounting firm and (ii) customer information

 

41

 

including customer names,
contracts (if applicable), and revenue per customer for top 20 customers in
each of the past three years;

 

(c)                                  the Administrative Agent shall have
received audited financial statements for Vyvx for the fiscal years ending December 31,
2006 and December 31, 2007, and a closing balance sheet of the Borrower
adjusted to give effect to the Vyvx Acquisition in form and substance
acceptable to the Administrative Agent;

 

(d)                                 no Material Adverse Effect (as defined in
the Vyvx Asset Purchase Agreement) with respect to Vyvx shall have occurred
since September 30, 2007;

 

(e)                                  the Acquisition shall have been approved
by Vyvx’s directors and shareholders (if necessary), and all necessary legal
and regulatory approvals with respect to the Vyvx Acquisition shall have been
obtained.  There shall be no injunction,
temporary restraining order or other legal action in effect which would
prohibit the closing of Vyvx Acquisition or the closing and funding of any Loan
in connection therewith;

 

(f)                                    the Administrative Agent shall have
received certificates or other evidence reasonably acceptable to it of the
solvency of the Borrower on a consolidated basis after giving effect to the
Vyvx Acquisition;

 

(g)                                 after giving effect to the Vyvx
Acquisition and any Credit Event in connection therewith, the Borrower shall
have Excess Availability of not less than $5,000,000, provided
that accounts payable are at historically normal levels reasonably acceptable
to the Administrative Agent;

 

(h)                                 the Borrower shall have received proceeds
of at least $65,000,000 from (i) the Bridge Loan on terms and conditions
and from a source reasonably satisfactory to the Administrative Agent or (ii) the
issuance of equity;

 

(i)                                     to the extent the Bridge Loan is funded,
the Administrative Agent shall have received a fully executed Subordination
Agreement among the Administrative Agent and the holders of the Bridge Loan in
form and substance satisfactory to the Administrative Agent;

 

(j)                                     the Administrative Agent shall have
received evidence reasonably satisfactory to the Administrative Agent that (i) the
Borrower’s pro forma Adjusted EBTIDA for the twelve
months ending immediately prior to the Vyvx Acquisition is at least $50,000,000
and (ii) that the Total Leverage Ratio and Senior Leverage Ratio is less
than 3.5 to 1.0 and 2.5 to 1.0, respectively, calculated based on the Adjusted
EBITDA for the twelve months prior ending immediately prior to the Vyvx
Acquisition (assuming the indebtedness occurred at the time of the Vyvx
Acquisition was incurred on the first day of such twelve month period and on a pro forma basis after giving effect to the Vyvx
Acquisition); provided that, for purposes of
determining compliance with each of the aforementioned conditions, Adjusted
EBITDA shall be calculated on a pro forma basis
to

 

42

 

include EBITDA of Vyvx
and the synergies related to the Vyvx Acquisition with any such adjustments to
EBITDA to be reasonably acceptable to the Administrative Agent;

 

(k)                                  the Administrative Agent shall have
received the Vyvx Asset Purchase Agreement and the Vyvx Acquisition shall have
been consummated (i) in accordance with the Vyvx Asset Purchase Agreement
and the related disclosure schedules and exhibits thereto, without waiver or
amendment thereof (other than any such waivers or amendments (including,
without limitation, with respect to any representations and warranties in the
Vyvx Asset Purchase Agreement) as are not materially adverse to the Lenders)
unless consented to by the Administrative Agent (which consent shall not be
unreasonably withheld or delayed) or (ii) on such other terms and
conditions as are reasonably satisfactory to the Administrative Agent; and

 

(l)                                     the Administrative Agent shall have
received customary lien searches on the Property of Vyvx evidencing the absence
of liens on its property except for liens permitted hereunder.

 

“Vyvx Asset Purchase Agreement” means that certain Asset Purchase
Agreement dated as of December 18, 2007, by and among the Borrower and
Vyvx in effect on the date hereof.

 

“Welfare Plan” means a “welfare plan” as defined in Section 3(1) of
ERISA.

 

“Wholly-owned Subsidiary” means a Subsidiary of which all of the
issued and outstanding shares of capital stock (other than directors’
qualifying shares as required by law) or other equity interests are owned by the
Borrower and/or one or more Wholly-owned Subsidiaries within the meaning of
this definition.

 

                                                 Section 5.2.                     Interpretation. 
The foregoing definitions are equally applicable to both the singular
and plural forms of the terms defined. 
The words “hereof”, “herein”,
and “hereunder” and words of like import
when used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement. 
All references to time of day herein are references to Chicago, Illinois,
time unless otherwise specifically provided. 
Where the character or amount of any asset or liability or item of
income or expense is required to be determined or any consolidation or other
accounting computation is required to be made for the purposes of this Agreement,
it shall be done in accordance with GAAP except where such principles are
inconsistent with the specific provisions of this Agreement.

 

                                                 Section 5.3.                     Change in Accounting Principles. 
If, after the date of this Agreement, there shall occur any change in
GAAP from those used in the preparation of the financial statements referred to
in Section 6.5 hereof and such change shall result in a change in the
method of calculation of any financial covenant, standard or term found in this
Agreement, either the Borrower or the Required Lenders may by notice to the
Lenders and the Borrower, respectively, require that the Lenders and the
Borrower negotiate in good faith to amend such covenants, standards, and terms
so as equitably to reflect such change in accounting principles, with the
desired result being that the criteria for evaluating the financial condition
of the Borrower and its Subsidiaries shall be the same as if such change had
not been made.  No delay by the Borrower

 

43

 

or the Required Lenders in requiring such negotiation
shall limit their right to so require such a negotiation at any time after such
a change in accounting principles.  Until
any such covenant, standard, or term is amended in accordance with this Section 5.3,
financial covenants shall be computed and determined in accordance with GAAP in
effect prior to such change in accounting principles.  Without limiting the generality of the
foregoing, the Borrower shall neither be deemed to be in compliance with any
financial covenant hereunder nor out of compliance with any financial covenant
hereunder if such state of compliance or noncompliance, as the case may be,
would not exist but for the occurrence of a change in accounting principles after
the date hereof.

 

SECTION 6.                                                 REPRESENTATIONS
AND WARRANTIES.

 

The Borrower represents
and warrants to the Administrative Agent, the Lenders, and the L/C Issuer
as follows:

 

                                                 Section 6.1.                     Organization and Qualification. 
The Borrower is duly organized, validly existing, and in good standing
as a corporation under the laws of the State of Delaware, has full and adequate
power to own its Property and conduct its business as now conducted, and is
duly licensed or qualified and in good standing in each jurisdiction in which
the nature of the business conducted by it or the nature of the Property owned
or leased by it requires such licensing or qualifying, except where the failure
to do so would not have a Material Adverse Effect.

 

                                                 Section 6.2.                     Subsidiaries.  Each
Subsidiary is duly organized, validly existing, and in good standing under the
laws of the jurisdiction in which it is organized, has full and adequate power
to own its Property and conduct its business as now conducted, and is duly
licensed or qualified and in good standing in each jurisdiction in which the
nature of the business conducted by it or the nature of the Property owned or
leased by it requires such licensing or qualifying, except where the failure to
do so would not have a Material Adverse Effect. 
Schedule 6.2 hereto identifies each Subsidiary, the jurisdiction of
its organization, the percentage of issued and outstanding shares of each class
of its capital stock or other equity interests owned by the Borrower and the
other Subsidiaries and, if such percentage is not 100% (excluding directors’
qualifying shares as required by law), a description of each class of its
authorized capital stock and other equity interests and the number of shares of
each class issued and outstanding.  All
of the outstanding shares of capital stock and other equity interests of each
Subsidiary are validly issued and outstanding and fully paid and nonassessable,
except as set forth on Schedule 6.2, and all such shares and other equity
interests indicated on Schedule 6.2 as owned by the Borrower or another
Subsidiary are owned, beneficially and of record, by the Borrower or such
Subsidiary free and clear of all Liens other than the Liens granted in favor of
the Administrative Agent pursuant to the Collateral Documents.  There are no outstanding commitments or other
obligations of any Subsidiary to issue, and no options, warrants or other
rights of any Person to acquire, any shares of any class of capital stock or
other equity interests of any Subsidiary except as set forth on
Schedule 6.2.

 

                                                 Section 6.3.                     Authority and Validity of
Obligations.  The Borrower has full right and authority to
enter into this Agreement and the other Loan Documents executed by it, to make
the borrowings herein provided for, to grant to the Administrative Agent the
Liens described in the

 

44

 

Collateral Documents executed by the Borrower, and to
perform all of its obligations hereunder and under the other Loan Documents
executed by it.  Each Subsidiary has full
right and authority to enter into the Loan Documents executed by it, to
guarantee the Obligations, Hedging Liability, and Funds Transfer and Deposit
Account Liability, to grant to the Administrative Agent the Liens described in
the Collateral Documents executed by such Person, and to perform all of its
obligations under the Loan Documents executed by it.  The Loan Documents delivered by the Borrower
and its Subsidiaries have been duly authorized, executed, and delivered by such
Persons and constitute valid and binding obligations of the Borrower and its
Subsidiaries enforceable against them in accordance with their terms, except as
enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance
or similar laws affecting creditors’ rights generally and general principles of
equity (regardless of whether the application of such principles is considered
in a proceeding in equity or at law); and this Agreement and the other Loan
Documents do not, nor does the performance or observance by the Borrower or any
Subsidiary of any of the matters and things herein or therein provided for, (a) contravene
or constitute a default under any provision of the organizational documents (e.g., charter, certificate or articles of incorporation and
by-laws, certificate or articles of association and operating agreement,
partnership agreement, or other similar organizational documents) of the
Borrower or any Subsidiary, (b) contravene or constitute a default under
any provision of law, any judgment, injunction, order, decree, covenant,
indenture or agreement of binding upon or affecting the Borrower or any
Subsidiary or any of their Property, in each case where such contravention or
default, individually or in the aggregate, could reasonably be expected to have
a Material Adverse Effect, or (c) result in the creation or imposition of
any Lien on any Property of the Borrower or any Subsidiary other than the Liens
granted in favor of the Administrative Agent pursuant to the Collateral
Documents.

 

                                                 Section 6.4.                     Use of Proceeds; Margin Stock. 
The Borrower shall use the proceeds of the Acquisition Loans to pay a
portion of the purchase price for Permitted Acquisitions and to refinance
existing indebtedness of Vyvx (if any), and shall use the proceeds of the Term
A Loans and Revolving Credit (a) to re-finance certain existing
indebtedness, (b) to finance Capital Expenditures, working capital,
Permitted Acquisitions and other general corporate purposes, (c) to fund
certain fees and expenses in connection with this Agreement and (d) for
its general working capital purposes and for such other legal and proper
purposes as are consistent with all applicable laws.  Neither the Borrower nor any Subsidiary is
engaged in the business of extending credit for the purpose of purchasing or
carrying margin stock (within the meaning of Regulation U of the Board of
Governors of the Federal Reserve System), and no part of the proceeds of any
Loan or any other extension of credit made hereunder 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. 
Margin stock (as hereinabove defined) constitutes less than 25% of the
assets of the Borrower and its Subsidiaries which are subject to any limitation
on sale, pledge or other restriction hereunder.

 

                                                 Section 6.5.                     Financial Reports. 
 The consolidated balance sheet of the Borrower and its
Subsidiaries as at December 31, 2006 and December 31, 2007, and the
related consolidated statements of income, retained earnings and cash flows of
the Borrower and its Subsidiaries for the fiscal year then ended, and
accompanying notes thereto, which financial statements are accompanied by the
audit report of KPMG LLP, independent public accountants, heretofore

 

45

 

furnished to the Administrative Agent and the Lenders,
fairly present the consolidated financial condition of the Borrower and its
Subsidiaries as at said dates and the consolidated results of their operations
and cash flows for the periods then ended in conformity with GAAP applied on a
consistent basis.  Neither the Borrower
nor any Subsidiary has contingent liabilities which are material to it other
than as indicated on such financial statements or, with respect to future
periods, on the financial statements furnished pursuant to Section 8.5
hereof.

 

                                                 Section 6.6.                     No Material Adverse Change.  Since December 31, 2006, there has been no change
in the condition (financial or otherwise) or business prospects of the Borrower
or any Subsidiary except those occurring in the ordinary course of business,
none of which individually or in the aggregate could reasonably be expected to
have a Material Adverse Effect.

 

                                                 Section 6.7.                     Full Disclosure. 
The statements and information furnished to the Administrative Agent and
the Lenders in connection with the negotiation of this Agreement and the other
Loan Documents and the commitments by the Lenders to provide all or part of the
financing contemplated hereby do not contain any untrue statements of a
material fact or omit a material fact necessary to make the material statements
contained herein or therein not misleading, the Administrative Agent and the
Lenders acknowledging that as to any projections furnished to the Administrative
Agent and the Lenders, the Borrower only represents that the same were prepared
on the basis of information and estimates the Borrower believed to be
reasonable at the time.

 

                                                 Section 6.8.                     Trademarks, Franchises, and
Licenses.  The Borrower and its Subsidiaries own,
possess, or have the right to use all necessary patents, licenses, franchises,
trademarks, trade names, trade styles, copyrights, trade secrets, know how, and
confidential commercial and proprietary information to conduct their businesses
as now conducted, without known conflict with any patent, license, franchise,
trademark, trade name, trade style, copyright or other proprietary right of any
other Person.

 

                                                 Section 6.9.                     Governmental Authority and
Licensing.  The Borrower and its Subsidiaries have
received all licenses, permits, and approvals of all federal, state, and local
governmental authorities, if any, necessary to conduct their businesses, in
each case where the failure to obtain or maintain the same could reasonably be
expected to have a Material Adverse Effect. 
No investigation or proceeding which, if adversely determined, could
reasonably be expected to result in revocation or denial of any material
license, permit or approval is pending or, to the knowledge of the Borrower,
threatened.

 

                                          Section 6.10.                     Good Title. 
The Borrower and its Subsidiaries have good and defensible title (or
valid leasehold interests) to their assets as reflected on the most recent
consolidated balance sheet  of the
Borrower and its Subsidiaries furnished to the Administrative Agent and the
Lenders (except for sales of assets in the ordinary course of business),
subject to no Liens other than such thereof as are permitted by Section 8.8
hereof.

 

                                          Section 6.11.                     Litigation and Other
Controversies.  Except as set forth on Schedule 6.11,
there is no litigation or governmental or arbitration proceeding or labor
controversy pending, nor to the knowledge of the Borrower threatened, against
the Borrower or any Subsidiary or any of

 

46

 

their Property which if adversely determined,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

 

                                          Section 6.12.                     Taxes. 
All tax returns required to be filed by the Borrower or any Subsidiary
in any jurisdiction have, in fact, been filed, and all taxes, assessments,
fees, and other governmental charges upon the Borrower or any Subsidiary or
upon any of its Property, income or franchises, which are shown to be due and
payable in such returns, have been paid, except such taxes, assessments, fees
and governmental charges, if any, as are being contested in good faith and by
appropriate proceedings which prevent enforcement of the matter under contest
and as to which adequate reserves established in accordance with GAAP have been
provided.  The Borrower does not know of
any proposed additional tax assessment against it or its Subsidiaries for which
adequate provisions in accordance with GAAP have not been made on their
accounts.  Adequate provisions in
accordance with GAAP for taxes on the books of the Borrower and each Subsidiary
have been made for all open years, and for its current fiscal period.

 

                                          Section 6.13.                     Approvals. 
No authorization, consent, license or exemption from, or filing or registration
with, any court or governmental department, agency or instrumentality, nor any
approval or consent of any other Person, is or will be necessary to the valid
execution, delivery or performance by the Borrower or any Subsidiary of any
Loan Document, except for such approvals which have been obtained prior to the
date of this Agreement and remain in full force and effect.

 

                                          Section 6.14.                     Affiliate Transactions. 
Except as set forth on Schedule 6.14, neither the Borrower nor any
Subsidiary is a party to any contracts or agreements with any of its Affiliates
(other than with Wholly-owned Subsidiaries) on terms and conditions which are
less favorable to the Borrower or such Subsidiary than would be usual and
customary in similar contracts or agreements between Persons not affiliated
with each other.

 

                                          Section 6.15.                     Investment Company. 
Neither the Borrower nor any Subsidiary is an “investment company” or a
company “controlled” by an “investment company” within the meaning of the
Investment Company Act of 1940, as amended.

 

                                          Section 6.16.                     ERISA. 
The Borrower and each other member of its Controlled Group has fulfilled
its obligations under the minimum funding standards of and is in compliance in
all material respects with ERISA and the Code to the extent applicable to it
and has not incurred any liability to the PBGC or a Plan under Title IV of
ERISA other than a liability to the PBGC for premiums under Section 4007
of ERISA.  Neither the Borrower nor any
Subsidiary has any contingent liabilities with respect to any post-retirement
benefits under a Welfare Plan, other than liability for continuation coverage
described in article 6 of Title I of ERISA.

 

                                          Section 6.17.                     Compliance with Laws.  (a) The
Borrower and its Subsidiaries are in compliance with the requirements of all
federal, state and local laws, rules and regulations applicable to or
pertaining to their Property or business operations (including, without
limitation, the Occupational Safety and Health Act of 1970, the Americans with
Disabilities Act of 1990, and laws and regulations establishing quality
criteria and standards for air, water, land and toxic

 

47

 

or hazardous wastes and substances), where any such
non-compliance, individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect.

 

                                               (b)                     Without limiting the representations and warranties
set forth in Section 6.17(a) above, except for such matters,
individually or in the aggregate, which could not reasonably be expected to
result in a Material Adverse Effect, the Borrower represents and warrants
that:  (i) the Borrower and its
Subsidiaries, and each of the Premises, comply in all material respects with
all applicable Environmental Laws; (ii) the Borrower and its Subsidiaries
have obtained all governmental approvals required for their operations and each
of the Premises by any applicable Environmental Law; (iii) the Borrower
and its Subsidiaries have not, and the Borrower has no knowledge of any other
Person who has, caused any Release, threatened Release or disposal of any
Hazardous Material at, on, about, or off any of the Premises in any material
quantity and, to the knowledge of the Borrower, none of the Premises are
adversely affected by any Release, threatened Release or disposal of a
Hazardous Material originating or emanating from any other property; (iv) none
of the Premises contain and have contained any: 
(1) underground storage tank, (2) material amounts of asbestos
containing building material, (3) landfills or dumps, (4) hazardous
waste management facility as defined pursuant to RCRA or any comparable state
law, or (5) site on or nominated for the National Priority List
promulgated pursuant to CERCLA or any state remedial priority list promulgated
or published pursuant to any comparable state law; (v) the Borrower and
its Subsidiaries have not used a material quantity of any Hazardous Material
and have conducted no Hazardous Material Activity at any of the Premises; (vi) the
Borrower and its Subsidiaries have no material liability for response or
corrective action, natural resource damage or other harm pursuant to CERCLA,
RCRA or any comparable state law; (vii) the Borrower and its Subsidiaries
are not subject to, have no notice or knowledge of and are not required to give
any notice of any Environmental Claim involving the Borrower or any Subsidiary
or any of the Premises, and there are no conditions or occurrences at any of
the Premises which could reasonably be anticipated to form the basis for an
Environmental Claim against the Borrower or any Subsidiary or such Premises; (viii) none
of the Premises are subject to any, and the Borrower has no knowledge of any
imminent restriction on the ownership, occupancy, use or transferability of the
Premises in connection with any (1) Environmental Law or (2) Release,
threatened Release or disposal of a Hazardous Material; and (ix) there are
no conditions or circumstances at any of the Premises which pose an
unreasonable risk to the environment or the health or safety of Persons.

 

                                          Section 6.18.                     Other Agreements. 
Neither the Borrower nor any Subsidiary is in default under the terms of
any covenant, indenture or agreement of or affecting such Person or any of its
Property, which default if uncured could reasonably be expected to have a
Material Adverse Effect.

 

                                          Section 6.19.                     Solvency. 
The Borrower and its Subsidiaries are solvent, able to pay their debts
as they become due, and have sufficient capital to carry on their business and
all businesses in which they are about to engage.

 

                                          Section 6.20.                     No Broker Fees. No broker’s or finder’s fee or
commission will be payable with respect hereto or any of the transactions
contemplated thereby; and the Borrower hereby agrees to indemnify the
Administrative Agent and the Lenders against, and agree that they will

 

48

 

hold the Administrative Agent and the Lenders harmless
from, any claim, demand, or liability for any such broker’s or finder’s fees
alleged to have been incurred in connection herewith or therewith and any
expenses (including reasonable attorneys’ fees) arising in connection with any
such claim, demand, or liability.

 

                                          Section 6.21.                     No Default.  No Default or Event of Default has occurred and is
continuing.

 

SECTION 7.                                                 CONDITIONS
PRECEDENT.

 

                                                 Section 7.1.                     All Credit Events. 
At the time of each Credit Event hereunder:

 

                                                          (a)                        each of the representations and warranties set forth
herein and in the other Loan Documents shall be and remain true and correct in
all material respects as of said time, except to the extent the same expressly
relate to an earlier date;

 

                                                         (b)                        no Default or Event of Default shall have occurred and
be continuing or would occur as a result of such Credit Event;

 

                                                          (c)                        in the case of a Borrowing the Administrative Agent
shall have received the notice required by Section 1.6 hereof, in the case
of the issuance of any Letter of Credit the L/C Issuer shall have received
a duly completed Application for such Letter of Credit together with any fees
called for by Section 2.1 hereof, and, in the case of an extension or
increase in the amount of a Letter of Credit, a written request therefor in a
form acceptable to the L/C Issuer together with fees called for by Section 2.1
hereof; and

 

                                                         (d)                        such Credit Event shall not violate any order,
judgment or decree of any court or other authority or any provision of law or
regulation applicable to the Administrative Agent, the L/C Issuer, or any
Lender (including, without limitation, Regulation U of the Board of Governors
of the Federal Reserve System) as then in effect.

 

Each request for a Borrowing hereunder and each
request for the issuance of, increase in the amount of, or extension of the
expiration date of, a Letter of Credit shall be deemed to be a representation
and warranty by the Borrower on the date on such Credit Event as to the facts
specified in subsections (a) through (c), both inclusive, of this
Section; provided, however, that the Lenders may
continue to make advances under the Revolving Credit, in the sole discretion of
the Lenders with Revolving Credit Commitments, notwithstanding the failure of
the Borrower to satisfy one or more of the conditions set forth above and any
such advances so made shall not be deemed a waiver of any Default or Event of
Default or other condition set forth above that may then exist.

 

Notwithstanding anything contained herein to the
contrary, the only conditions in this Section 7.1(a) and (b) required
to be satisfied in connection with (i) the initial Credit Event and (ii) the
Vyvx Acquisition if the Vyvx Acquisition is consummated on or before March 31,
2008, are the representations and warranties set forth in Sections 6.1, 6.2,
6.3, 6.4 (with respect to margin stock only) and 6.15 shall be and remain true
and correct in all material respects as of said time.

 

49

 

                Section 7.2.       Effective Date.  This Agreement will become effective on the
date (the “Effective Date”) that the following
conditions have been satisfied:

 

                   (a)        the
Administrative Agent shall have received this Agreement duly executed by the
Borrower and its Subsidiaries, as Guarantors, and the Lenders;

 

                   (b)        if
requested by any Lender, the Administrative Agent shall have received for such
Lender such Lender’s duly executed Notes of the Borrower dated the date hereof
and otherwise in compliance with the provisions of Section 1.11 hereof;

 

                   (c)        the
Administrative Agent shall have received the Security Agreement duly executed
by the Borrower and its Subsidiaries, together with (to the extent not already
provided) (i) original stock certificates or other similar instruments or
securities representing all of the issued and outstanding shares of capital
stock or other equity interests in each Subsidiary (66% of such capital stock
in the case of any Foreign Subsidiary as provided in Section 4.2 hereof)
as of the Closing Date, (ii) stock powers for the Collateral consisting of
the stock or other equity interest in each Subsidiary executed in blank and
undated, (iii) UCC financing statements to be filed against the Borrower
and each Subsidiary, as debtor, in favor of the Administrative Agent, as
secured party, (iv) patent, trademark, and copyright collateral agreements
to the extent requested by the Administrative Agent, and (v) deposit
account, securities account, and commodity account control agreements to the
extent requested by the Administrative Agent;

 

                   (d)        the
Administrative Agent shall have received evidence of insurance required to be
maintained under the Loan Documents, naming the Administrative Agent as
additional insured and lender’s loss payee;

 

                   (e)        the
Administrative Agent shall have received copies of the Borrower’s and each
Subsidiary’s articles of incorporation and bylaws (or comparable organizational
documents) and any amendments thereto, certified in each instance by its
Secretary or Assistant Secretary;

 

                    (f)        the
Administrative Agent shall have received copies of resolutions of the Borrower’s
and each Subsidiary’s Board of Directors (or similar governing body)
authorizing the execution, delivery and performance of this Agreement and the
other Loan Documents to which it is a party and the consummation of the
transactions contemplated hereby and thereby, together with specimen signatures
of the persons authorized to execute such documents on the Borrower’s and each
Subsidiary’s behalf, all certified in each instance by its Secretary or
Assistant Secretary;

 

                   (g)        the
Administrative Agent shall have received copies of the certificates of good
standing for the Borrower and each Subsidiary (dated no earlier than
30 days prior to the date hereof) from the office of the secretary of the
state of its incorporation or organization and of each state in which it is
qualified to do business as a foreign corporation or organization;

 

50

 

                   (h)        the
Administrative Agent shall have received a list of the Borrower’s Authorized
Representatives;

 

                    (i)        the
Administrative Agent shall have received the initial fees called for by Section 2.1
hereof;

 

                    (j)        in
the event the Vyvx Acquisition is not consummated concurrently with the initial
Credit Event, the Administrative Agent shall have received a compliance
certificate confirming that (i) each of the Total Leverage Ratio and the
Senior Leverage Ratio for the twelve (12) calendar month period ended December 31,
2007 is less than 1.75 to 1.0 and (ii) Adjusted EBITDA for the 12-month
period ended December 31, 2007 is at least $38,000,000, each
calculated as if the indebtedness incurred on the Closing Date were incurred on
the first day of such 12-month period and on a pro forma basis
giving effect to the initial Credit Event;

 

                   (k)        the
initial Credit Event shall not include a Revolving Loan in excess of $5,000,000
and the Borrower’s accounts payable are at historically normal levels;

 

                    (l)        the
Administrative Agent shall have received (i) audited financial statements
of the Borrower for the fiscal years ended December 31, 2005, December 31,
2006 and, to the extent available, December 31, 2007, and (ii) unaudited
quarterly financial statements of the Borrower for each fiscal quarter ended
for the prior three fiscal years of the Borrower, all in form and substance
reasonably acceptable to the Administrative Agent;

 

                  (m)        the
Administrative Agent shall have received financing statement, tax, and judgment
lien search results against the Property of the Borrower and each Subsidiary
evidencing the absence of Liens on its Property except as permitted by Section 8.8
hereof;

 

                   (n)        the
Administrative Agent shall have received the favorable written opinion of
counsel to the Borrower and each Subsidiary, in form and substance satisfactory
to the Administrative Agent; and

 

                   (o)        the
Administrative Agent shall have received an executed Internal Revenue Service Form W-9
for the Borrower and each Guarantor.

 

SECTION 8.                                                 COVENANTS.

 

The Borrower agrees that,
so long as any credit is available to or in use by the Borrower hereunder,
except to the extent compliance in any case or cases is waived in writing
pursuant to the terms of Section 13.13 hereof:

 

                Section 8.1.       Maintenance of Business.  The Borrower shall, and shall cause each
Subsidiary to, preserve and maintain its existence, except as otherwise
provided in Section 8.10(c) hereof. 
The Borrower shall, and shall cause each Subsidiary to, preserve and 

 

51

 

keep in force and effect
all licenses, permits, franchises, approvals, patents, trademarks, trade names,
trade styles, copyrights, and other proprietary rights necessary to the proper
conduct of its business where the failure to do so could reasonably be expected
to have a Material Adverse  Effect.

 

                Section 8.2.       Maintenance of Properties. 
The Borrower shall, and shall cause each Subsidiary to, maintain,
preserve, and keep its property, plant, and equipment in good repair, working
order and condition (ordinary wear and tear excepted), and shall from time to
time make all needful and proper repairs, renewals, replacements, additions,
and betterments thereto so that at all times the efficiency thereof shall be
fully preserved and maintained, except to the extent that, in the reasonable
business judgment of such Person, any such Property is no longer necessary for
the proper conduct of the business of such Person.

 

                Section 8.3.       Taxes and Assessments.  The Borrower shall duly pay and discharge,
and shall cause each Subsidiary to duly pay and discharge, all taxes, rates,
assessments, fees, and governmental charges upon or against it or its Property,
in each case before the same become delinquent and before penalties accrue
thereon, unless and to the extent that the same are being contested in good
faith and by appropriate proceedings which prevent enforcement of the matter
under contest and adequate reserves are provided therefor.

 

                Section 8.4.       Insurance.  The Borrower shall insure and keep insured,
and shall cause each Subsidiary to insure and keep insured, with good and
responsible insurance companies, all insurable Property owned by it which is of
a character usually insured by Persons similarly situated and operating like
Properties against loss or damage from such hazards and risks, and in such
amounts, as are insured by Persons similarly situated and operating like
Properties; and the Borrower shall insure, and shall cause each Subsidiary to
insure, such other hazards and risks (including, without limitation, business
interruption, employers’ and public liability risks) with good and responsible
insurance companies as and to the extent usually insured by Persons similarly
situated and conducting similar businesses. 
The Borrower shall in any event maintain, and cause each Subsidiary to
maintain, insurance on the Collateral to the extent required by the Collateral
Documents.  The Borrower shall, upon the
request of the Administrative Agent, furnish to the Administrative Agent and
the Lenders a certificate setting forth in summary form the nature and extent
of the insurance maintained pursuant to this Section.

 

                Section 8.5.       Financial Reports.  The Borrower shall, and shall cause each
Subsidiary to, maintain a standard system of accounting in accordance with GAAP
and shall furnish to the Administrative Agent, and each Lender such information
respecting the business and financial condition of the Borrower and each
Subsidiary as the Administrative Agent or such Lender may reasonably request;
and without any request, shall furnish to the Administrative Agent, and the
Lenders:

 

                   (a)        as
soon as available, and in any event no later than forty-five (45) days after
the last day of each fiscal quarter of each fiscal year of the Borrower, a copy
of the consolidated and consolidating balance sheet of the Borrower and its
Subsidiaries as of the last day of such fiscal quarter and the consolidated and
consolidating statements of income, retained earnings, and cash flows of the
Borrower and its Subsidiaries for the

 

52

 

fiscal quarter and for
the fiscal year-to-date period then ended, each in reasonable detail showing in
comparative form the figures for the corresponding date and period in the
previous fiscal year, prepared by the Borrower in accordance with GAAP (subject
to the absence of footnote disclosures and year-end audit adjustments) and
certified to by its chief financial officer or another officer of the Borrower
acceptable to the Administrative Agent;

 

                   (b)        as
soon as available, and in any event no later than ninety (90) days after the
last day of each fiscal year of the Borrower, a copy of the consolidated and
consolidating balance sheet of the Borrower and its Subsidiaries as of the last
day of the fiscal year then ended and the consolidated and consolidating
statements of income, retained earnings, and cash flows of the Borrower and its
Subsidiaries for the fiscal year then ended, and accompanying notes thereto,
each in reasonable detail showing in comparative form the figures for the
previous fiscal year, accompanied in the case of the consolidated financial
statements by an unqualified opinion of KPMG LLP or another firm of independent
public accountants of recognized national standing, selected by the Borrower
and reasonably satisfactory to the Administrative Agent and the Required
Lenders, to the effect that the consolidated financial statements have been
prepared in accordance with GAAP and present fairly in accordance with GAAP the
consolidated financial condition of the Borrower and its Subsidiaries as of the
close of such fiscal year and the results of their operations and cash flows
for the fiscal year then ended and that an examination of such accounts in
connection with such financial statements has been made in accordance with
generally accepted auditing standards and, accordingly, such examination
included such tests of the accounting records and such other auditing
procedures as were considered necessary in the circumstances;

 

                   (c)        within
the period provided in subsection (b) above, the written statement of
the accountants who certified the audit report thereby required that in the
course of their audit they have obtained no knowledge of any Default or Event
of Default, or, if such accountants have obtained knowledge of any such Default
or Event of Default, they shall disclose in such statement the nature and
period of the existence thereof;

 

                   (d)        promptly
after receipt thereof, any additional written reports, management letters or
other detailed information contained in writing concerning significant aspects
of the Borrower’s or any Subsidiary’s operations and financial affairs given to
it by its independent public accountants;

 

                   (e)        promptly
after the sending or filing thereof, copies of each financial statement, report,
notice or proxy statement sent by the Borrower or any Subsidiary to its
stockholders or other equity holders, and copies of each regular, periodic or
special report, registration statement or prospectus (including all Form 10-K,
Form 10-Q and Form 8-K reports) filed by the Borrower or any
Subsidiary with any securities exchange or the Securities and Exchange
Commission or any successor agency;

 

                    (f)        promptly
after receipt thereof, a copy of each audit made by any regulatory agency of
the books and records of the Borrower or any Subsidiary or of 

 

53

 

notice of any material
noncompliance with any applicable law, regulation or guideline relating to the
Borrower or any Subsidiary, or its business;

 

                   (g)        as
soon as available, and in any event no later than thirty (30) days after the
beginning of each fiscal year of the Borrower, a copy of the Borrower’s
consolidated and consolidating business plan for such fiscal year, such
business plan to show the Borrower’s projected consolidated and consolidating
revenues, expenses and balance sheet on a quarter-by-quarter basis, such
business plan to be in reasonable detail prepared by the Borrower and in form
satisfactory to the Administrative Agent and the Required Lenders (which shall
include a summary of all assumptions made in preparing such business plan);

 

                   (h)        notice
of any Change of Control;

 

                    (i)        promptly
after knowledge thereof shall have come to the attention of any responsible
officer of the Borrower, written notice of (i) any threatened or pending
litigation or governmental or arbitration proceeding or labor controversy
against the Borrower or any Subsidiary or any of their Property which, if
adversely determined, could reasonably be expected to have a Material Adverse
Effect; (ii) the occurrence of any Default or Event of Default hereunder;
or (iii) any condition exists or the occurrence of an event that would
reasonably be expected to have a Material Adverse Effect; and

 

                    (j)        with
each of the financial statements delivered pursuant to subsections (a) and
(b) above, a written certificate in the form attached hereto as Exhibit E
signed by the chief financial officer of the Borrower or another officer of the
Borrower acceptable to the Administrative Agent to the effect that to the best
of such officer’s knowledge and belief no Default or Event of Default has
occurred during the period covered by such statements or, if any such Default
or Event of Default has occurred during such period, setting forth a
description of such Default or Event of Default and specifying the action, if
any, taken by the Borrower or any Subsidiary to remedy the same.  Such certificate shall also set forth the
calculations supporting such statements in respect of Section 8.22  hereof.

 

                Section 8.6.       Inspection.  The Borrower shall, and shall cause each
Subsidiary to, permit the Administrative Agent, and each Lender and each of
their duly authorized representatives and agents to visit and inspect any of
its Property, corporate books, and financial records, to examine and make
copies of its books of accounts and other financial records, and to discuss its
affairs, finances, and accounts with, and to be advised as to the same by, its
officers, employees and independent public accountants (and by this provision
the Borrower hereby authorizes such accountants to discuss with the
Administrative Agent, and such Lenders, the finances and affairs of the
Borrower and its Subsidiaries) at such reasonable times and intervals during
normal business hours as the Administrative Agent or any such Lender may
designate and, so long as no Default or Event of Default exists, with
reasonable prior notice to the Borrower.

 

                Section 8.7.       Borrowings and Guaranties.
 The Borrower shall not, nor
shall it permit any Subsidiary to, issue, incur, assume, create or have
outstanding any Indebtedness for 

 

54

 

Borrowed Money, or incur
liabilities for interest rate, currency, or commodity cap, collar, swap, or
similar hedging arrangements, or be or become liable as endorser, guarantor,
surety or otherwise for any debt, obligation or undertaking of any other
Person, or otherwise agree to provide funds for payment of the obligations of
another, or supply funds thereto or invest therein or otherwise assure a
creditor of another against loss, or apply for or become liable to the issuer
of a letter of credit which supports an obligation of another, or subordinate
any claim or demand it may have to the claim or demand of any other Person; provided, however, that the foregoing shall not restrict nor
operate to prevent:

 

                   (a)        the
Obligations, Hedging Liability, and Funds Transfer and Deposit Account
Liability of the Borrower and its Subsidiaries owing to the Administrative
Agent and the Lenders (and their Affiliates);

 

                   (b)        purchase
money indebtedness and Capitalized Lease Obligations of the Borrower and its
Subsidiaries in an amount not to exceed $5,000,000 in the aggregate at any one
time outstanding;

 

                   (c)        obligations
of the Borrower or any Subsidiary arising out of interest rate, foreign
currency, and commodity hedging agreements entered into with financial
institutions in connection with bona fide hedging activities in the ordinary
course of business and not for speculative purposes;

 

                   (d)        endorsement
of items for deposit or collection of commercial paper received in the ordinary
course of business;

 

                   (e)        intercompany
advances from time to time owing by any Guarantor to the Borrower or another
Guarantor or by the Borrower to a Guarantor in the ordinary course of business
to finance working capital needs;

 

                    (f)        indebtedness
of the Borrower or any Subsidiary existing on the Closing Date and not
otherwise permitted under this Section and listed on Schedule 8.7,
and any refinancings, refundings, renewals and extensions thereof;

 

                   (g)        the
Bridge Loan in an amount not to exceed $65,000,000 in the aggregate plus
capitalized interest thereon not to exceed 1% per annum to be incurred in
connection with the Vyvx Acquisition, as reduced by permitted payments thereon;

 

                   (h)        unsecured
Subordinated Debt issued by the Borrower the proceeds of which are used to
repay the Bridge Loan; provided that  (i) the principal amount of such Subordinated Debt
shall not exceed the principal amount outstanding under the Bridge Loan at the
time of such issuance and (ii) such Subordinated Debt shall be subject to
a Subordination Agreement; and

 

                    (i)        unsecured
indebtedness of the Borrower and its Subsidiaries not otherwise permitted by
this Section in an amount not to exceed $5,000,000 in the aggregate at any
one time outstanding.

 

55

 

                Section 8.8.       Liens.  The Borrower shall not, nor shall it permit
any Subsidiary to, create, incur or permit to exist any Lien of any kind on any
Property owned by any such Person; provided, however,
that the foregoing shall not apply to nor operate to prevent:

 

                   (a)        Liens
arising by statute in connection with worker’s compensation, unemployment
insurance, old age benefits, social security obligations, taxes, assessments,
statutory obligations or other similar charges (other than Liens arising under
ERISA), good faith cash deposits in connection with tenders, contracts or
leases to which the Borrower or any Subsidiary is a party or other cash
deposits required to be made in the ordinary course of business, provided in
each case that the obligation is not for borrowed money and that the obligation
secured is not overdue or, if overdue, is being contested in good faith by
appropriate proceedings which prevent enforcement of the matter under contest
and adequate reserves have been established therefor;

 

                   (b)        mechanics’,
workmen’s, materialmen’s, landlords’, carriers’ or other similar Liens arising
in the ordinary course of business with respect to obligations which are not
due or which are being contested in good faith by appropriate proceedings which
prevent enforcement of the matter under contest;

 

                   (c)        judgment
liens and judicial attachment liens not constituting an Event of Default under Section 9.1(g) hereof
and the pledge of assets for the purpose of securing an appeal, stay or
discharge in the course of any legal proceeding, provided that the aggregate
amount of such judgment liens and attachments and liabilities of the Borrower
and its Subsidiaries secured by a pledge of assets permitted under this
subsection, including interest and penalties thereon, if any, shall not be in
excess of $1,500,000 at any one time outstanding;

 

                   (d)        Liens
on equipment of the Borrower or any Subsidiary created solely for the purpose
of securing indebtedness permitted by Section 8.7(b) hereof,
representing or incurred to finance the purchase price of such Property,
provided that no such Lien shall extend to or cover other Property of the
Borrower or such Subsidiary other than the respective Property so acquired, and
the principal amount of indebtedness secured by any such Lien shall at no time
exceed the purchase price of such Property, as reduced by repayments of
principal thereon;

 

                   (e)        any
interest or title of a lessor under any operating lease;

 

                    (f)        easements,
rights-of-way, restrictions, and other similar encumbrances against real
property incurred in the ordinary course of business which, in the aggregate,
are not substantial in amount and which do not materially detract from the
value of the Property subject thereto or materially interfere with the ordinary
conduct of the business of the Borrower or any Subsidiary;

 

                   (g)        Liens
existing on any asset of any Person at the time such Person becomes a
Subsidiary or is merged or consolidated with or into a Subsidiary which (i) were
not created in contemplation of or in connection with such event and (ii) do
not extend to or 

 

56

 

cover any other Property
or assets of the Borrower or any Subsidiary, so long as any Indebtedness for
Borrowed Money related to any such liens is permitted under Section 8.7;

 

                   (h)        Liens
not otherwise permitted by this Section and in existence on the Closing
Date and described on Schedule 8.8; and

 

                    (i)        Liens
granted in favor of the Administrative Agent pursuant to the Collateral
Documents.

 

                Section 8.9.       Investments, Acquisitions, Loans and
Advances.  The Borrower shall
not, nor shall it permit any Subsidiary to, directly or indirectly, make,
retain or have outstanding any investments (whether through purchase of stock
or obligations or otherwise) in, or loans or advances to (other than for travel
advances and other similar cash advances made to employees in the ordinary
course of business), any other Person, or acquire all or any substantial part
of the assets or business of any other Person or division thereof; provided, however, that the foregoing shall not apply to nor
operate to prevent:

 

                   (a)        investments
in direct obligations of the United States of America or of any agency or
instrumentality thereof whose obligations constitute full faith and credit
obligations of the United States of America, provided that any such obligations
shall mature within one year of the date of issuance thereof;

 

                   (b)        investments
in commercial paper rated at least P-1 by Moody’s and at least A-1 by S&P
maturing within one year of the date of issuance thereof;

 

                   (c)        investments
in certificates of deposit issued by any Lender or by any United States
commercial bank having capital and surplus of not less than $100,000,000 which
have a maturity of one year or less;

 

                   (d)        investments
in repurchase obligations with a term of not more than seven (7) days for
underlying securities of the types described in subsection (a) above
entered into with any bank meeting the qualifications specified in
subsection (c) above, provided all such agreements require physical
delivery of the securities securing such repurchase agreement, except those
delivered through the Federal Reserve Book Entry System;

 

                   (e)        investments
in money market funds that invest solely, and which are restricted by their
respective charters to invest solely, in investments of the type described in
the immediately preceding subsections (a), (b), (c), and (d) above;

 

                    (f)        the
Borrower’s investment existing on the date of this Agreement in its Foreign
Subsidiaries and the Borrower’s investments from time to time in its Domestic
Subsidiaries, and investments made from time to time by a Domestic Subsidiary
in one or more of its Domestic Subsidiaries;

 

57

 

                   (g)        intercompany
advances made from time to time by the Borrower or a Guarantor to another
Guarantor or by a Guarantor to the Borrower in the ordinary course of business
to finance working capital needs;

 

                   (h)        Permitted
Acquisitions;

 

                    (i)        the
Borrower’s and Subsidiaries’ investments existing on the date of this Agreement
and listed on Schedule 8.9 hereof; and

 

                    (j)        investments
in hedges, including currency and interest rate hedges; provided such
investments shall be for non-speculative purposes;

 

                   (k)        other
investments, loans, and advances in addition to those otherwise permitted by
this Section in an amount not to exceed $5,000,000 in the aggregate at any
one time outstanding.

 

In determining the amount
of investments, acquisitions, loans, and advances permitted under this Section,
investments and acquisitions shall always be taken at the original cost thereof
(regardless of any subsequent appreciation or depreciation therein), and loans
and advances shall be taken at the principal amount thereof then remaining
unpaid.

 

              Section 8.10.       Mergers, Consolidations and Sales.  The Borrower shall not, nor shall it permit
any Subsidiary to, be a party to any merger or consolidation, or sell, transfer,
lease or otherwise dispose of all or any part of its Property, including any
disposition of Property as part of a sale and leaseback transaction, or in any
event sell or discount (with or without recourse) any of its notes or accounts
receivable; provided, however, that this Section shall
not apply to nor operate to prevent:

 

                   (a)        the
sale or lease of inventory in the ordinary course of business;

 

                   (b)        the
sale, transfer, lease or other disposition of Property of the Borrower and its
Subsidiaries to one another in the ordinary course of its business;

 

                   (c)        the
merger of any Subsidiary with and into the Borrower or any other Subsidiary,
provided that, in the case of any merger involving (i) the Borrower, the
Borrower is the corporation surviving the merger and (ii) a Guarantor, a
Guarantor or the Borrower is the surviving entity;

 

                   (d)        the
sale of delinquent notes or accounts receivable in the ordinary course of
business for purposes of collection only (and not for the purpose of any bulk
sale or securitization transaction);

 

                   (e)        the
sale, transfer or other disposition of any tangible personal property that, in
the reasonable business judgment of the Borrower or its Subsidiary, has become
obsolete or worn out, and which is disposed of in the ordinary course of
business; and

 

58

 

                    (f)        the
sale, transfer, lease or other disposition of Property of the Borrower or any
Subsidiary (including any disposition of Property as part of a sale and
leaseback transaction) aggregating for the Borrower and its Subsidiaries not
more than $1,000,000 during any fiscal year of the Borrower.

 

              Section 8.11.       Maintenance of Subsidiaries.  The Borrower shall not assign, sell or
transfer, nor shall it permit any Subsidiary to issue, assign, sell or
transfer, any shares of capital stock or other equity interests of a
Subsidiary; provided, however, that the foregoing
shall not operate to prevent (a) Liens on the capital stock or other
equity interests of Subsidiaries granted to the Administrative Agent pursuant
to the Collateral Documents, (b) the issuance, sale, and transfer to any
person of any shares of capital stock of a Subsidiary solely for the purpose of
qualifying, and to the extent legally necessary to qualify, such person as a director
of such Subsidiary, and (c) any transaction permitted by Section 8.10(c) above.

 

              Section 8.12.       Dividends and Certain Other Restricted
Payments.  The Borrower shall
not, nor shall it permit any Subsidiary to, (a) declare or pay any
dividends on or make any other distributions in respect of any class or series
of its capital stock or other equity interests (other than dividends or
distributions payable solely in its capital stock or other equity interests) or
(b) directly or indirectly purchase, redeem, or otherwise acquire or
retire any of its capital stock or other equity interests or any warrants,
options, or similar instruments to acquire the same (collectively referred to
herein as “Restricted Payments”); provided, however, that the foregoing shall not operate to
prevent (i) the making of dividends or distributions by any Subsidiary to
the Borrower; and (ii) that so long as no Default or Event of Default has
occurred and is continuing or would result therefrom, the repurchase by the
Borrower of its capital stock in an aggregate amount not to exceed $2,500,000
per fiscal year of the Borrower.

 

              Section 8.13.       ERISA.  The Borrower shall, and shall cause each
Subsidiary to, promptly pay and discharge all obligations and liabilities
arising under ERISA of a character which if unpaid or unperformed could
reasonably be expected to result in the imposition of a Lien against any of its
Property.  The Borrower shall, and shall
cause each Subsidiary to, promptly notify the Administrative Agent and each
Lender of:  (a) the occurrence of
any reportable event (as defined in ERISA) with respect to a Plan, (b) receipt
of any notice from the PBGC of its intention to seek termination of any Plan or
appointment of a trustee therefor, (c) its intention to terminate or withdraw
from any Plan, and (d) the occurrence of any event with respect to any
Plan which would result in the incurrence by the Borrower or any Subsidiary of
any material liability, fine or penalty, or any material increase in the
contingent liability of the Borrower or any Subsidiary with respect to any
post-retirement Welfare Plan benefit.

 

              Section 8.14.       Compliance with Laws.  (a) The Borrower shall, and shall cause
each Subsidiary to, comply in all respects with the requirements of all
federal, state, and local laws, rules, regulations, ordinances and orders
applicable to or pertaining to its Property or business operations, where any
such non-compliance, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect or result in a Lien upon any of its
Property.

 

                (b)       Without
limiting the agreements set forth in Section 8.14(a) above, the
Borrower shall, and shall cause each Subsidiary to, at all times, do the
following to the extent the failure to 

 

59

 

do so, individually or in
the aggregate, could reasonably be expected to have a Material Adverse
Effect:  (i) comply in all material
respects with, and maintain each of the Premises in compliance in all material
respects with, all applicable Environmental Laws; (ii) require that each
tenant and subtenant, if any, of any of the Premises or any part thereof comply
in all material respects with all applicable Environmental Laws; (iii) obtain
and maintain in full force and effect all material governmental approvals
required by any applicable Environmental Law for operations at each of the
Premises; (iv) cure any material violation by it or at any of the Premises
of applicable Environmental Laws; (v) not allow the presence or operation
at any of the Premises of any (1) landfill or dump or (2) hazardous
waste management facility or solid waste disposal facility as defined pursuant
to RCRA or any comparable state law; (vi) not manufacture, use, generate,
transport, treat, store, release, dispose or handle any Hazardous Material at
any of the Premises except in the ordinary course of its business and in de minimis amounts; (vii) within ten (10) Business
Days notify the Administrative Agent in writing of and provide any reasonably
requested documents upon learning of any of the following in connection with
the Borrower or any Subsidiary or any of the Premises: (1) any material
liability for response or corrective action, natural resource damage or other
harm pursuant to CERCLA, RCRA or any comparable state law; (2) any
material Environmental Claim; (3) any material violation of an
Environmental Law or material Release, threatened Release or disposal of a
Hazardous Material; (4) any restriction on the ownership, occupancy, use
or transferability arising pursuant to any (x) Release, threatened Release
or disposal of a Hazardous Material or (y) Environmental Law; or (5) any
environmental, natural resource, health or safety condition, which could
reasonably be expected to have a Material Adverse Effect; (viii) conduct
at its expense any investigation, study, sampling, testing, abatement, cleanup,
removal, remediation or other response action necessary to remove, remediate,
clean up or abate any material Release, threatened Release or disposal of a
Hazardous Material as required by any applicable Environmental Law, (ix) abide
by and observe any restrictions on the use of the Premises imposed by any
governmental authority as set forth in a deed or other instrument affecting the
Borrower’s or any Subsidiary’s interest therein; (x) promptly provide or
otherwise make available to the Administrative Agent any reasonably requested
environmental record concerning the Premises which the Borrower or any
Subsidiary possesses or can reasonably obtain; and (xi) perform, satisfy,
and implement any operation or maintenance actions required by any governmental
authority or Environmental Law, or included in any no further action letter or
covenant not to sue issued by any governmental authority under any Environmental
Law.

 

              Section 8.15.       Burdensome Contracts With Affiliates.  Except as set forth on Schedule 6.14, the
Borrower shall not, nor shall it permit any Subsidiary to, enter into any
contract, agreement or business arrangement with any of its Affiliates (other than
with Wholly-owned Subsidiaries)  on terms and
conditions which are less favorable to the Borrower or such Subsidiary than
would be usual and customary in similar contracts, agreements or business
arrangements between Persons not affiliated with each other.

 

              Section 8.16.       No Changes in Fiscal Year.  The fiscal year of the Borrower and its
Subsidiaries ends on December 31 of each year; and the Borrower shall not,
nor shall it permit any Subsidiary to, change its fiscal year from its present
basis.

 

60

 

              Section 8.17.       Formation of Subsidiaries.   Promptly upon the formation or acquisition
of any Domestic Subsidiary, the Borrower shall provide the Administrative Agent
and the Lenders notice thereof and timely comply with the requirements of Section 4
hereof (at which time Schedule 6.2 shall be deemed amended to include
reference to such Subsidiary).  Except
for Foreign Subsidiaries existing on the Closing Date and identified on
Schedule 6.2 hereof, the Borrower shall not, nor shall it permit any
Subsidiary to, form or acquire any Foreign Subsidiary.

 

              Section 8.18.       Change in the Nature of Business.  The Borrower shall not, nor shall
it permit any Subsidiary to, engage in any business or activity if as a result
the general nature of the business of the Borrower or any Subsidiary would be
changed in any material respect from the general nature of the business engaged
in by it as of the Closing Date.

 

              Section 8.19.       Use of Proceeds.  The Borrower shall use the credit extended
under this Agreement solely for the purposes set forth in, or otherwise
permitted by, Section 6.4 hereof.

 

              Section 8.20.       No Restrictions.  Except as provided herein, the Borrower shall
not, nor shall it permit any Subsidiary to, directly or indirectly create or
otherwise cause or suffer to exist or become effective any consensual
encumbrance or restriction of any kind on the ability of the Borrower or any
Subsidiary to:  (a) pay dividends or
make any other distribution on any Subsidiary’s capital stock or other equity
interests owned by the Borrower or any other Subsidiary, (b) pay any
indebtedness owed to the Borrower or any other Subsidiary, (c) make loans
or advances to the Borrower or any other Subsidiary, (d) transfer any of
its Property to the Borrower or any other Subsidiary, or (e) guarantee the
Obligations, Hedging Liability, and Funds Transfer and Deposit Account
Liability and/or grant Liens on its assets to the Administrative Agent as
required by the Loan Documents.

 

              Section 8.21.       Subordinated Debt.  The Borrower shall not, nor shall it permit
any Subsidiary to, (a) amend or modify any of the terms or conditions
relating to Subordinated Debt, (b) make any voluntary prepayment of
Subordinated Debt or effect any voluntary redemption thereof, or (c) make
any payment on account of Subordinated Debt which is prohibited under the terms
of any instrument or agreement subordinating the same to the Obligations.  Notwithstanding the foregoing, the Borrower
may agree to a decrease in the interest rate applicable thereto or to a
deferral of repayment of any of the principal of or interest on the
Subordinated Debt beyond the current due dates therefor.

 

61

              Section 8.22.       Financial Covenants.  (a) Total Leverage Ratio.  As of the last day of each fiscal quarter of
the Borrower ending during the relevant period set forth below, the Borrower
shall not permit the Total Leverage Ratio to be greater than the corresponding
ratio set forth opposite such period:

 

	
   FISCAL QUARTER 

   ENDING ON OR ABOUT 

   	
    

   	
   TOTAL LEVERAGE RATIO 

   SHALL NOT BE GREATER THAN:

   
	
  The Closing Date through 03/31/08

  	
   

  	
  4.00 to 1.0

  
	
  04/01/08 through 06/30/08

  	
   

  	
  3.75 to 1.0

  
	
  07/01/08 through 09/30/08

  	
   

  	
  3.50 to 1.0

  
	
  10/01/08 through 12/31/09

  	
   

  	
  3.25 to 1.0

  
	
  01/01/10 through 12/31/10

  	
   

  	
  3.00 to 1.0

  
	
  01/01/11 and at all times thereafter

  	
   

  	
  2.75 to 1.0

  

 

(b) Senior Leverage Ratio.  As of the last day of each fiscal quarter of
the Borrower ending during the relevant period set forth below, the Borrower
shall not permit the Senior Leverage Ratio to be greater than the corresponding
ratio set forth opposite such period:

 

	
   FISCAL QUARTER 

   ENDING ON OR ABOUT 

   	
    

   	
   SENIOR LEVERAGE RATIO 

   SHALL NOT BE GREATER THAN:

   
	
  The Closing Date through 03/31/08

  	
   

  	
  2.75 to 1.0

  
	
  04/01/08 through 06/30/08

  	
   

  	
  2.50 to 1.0

  
	
  07/01/08 and at all times thereafter

  	
   

  	
  2.25 to 1.0

  

 

(c)  Fixed Charge Coverage Ratio. 
As of the last day of each fiscal quarter of the Borrower ending during
the relevant period set forth below, the Borrower shall maintain a Fixed Charge
Coverage Ratio of not less than the corresponding ratio set forth opposite such
period:

 

	
   FISCAL QUARTER 

   ENDING ON OR ABOUT 

   	
    

   	
   FIXED CHARGE COVERAGE RATIO 

   SHALL NOT BE LESS THAN:

   
	
  The Closing Date through 12/31/10

  	
   

  	
  1.25 to 1.0

  
	
  01/01/11 and at all times thereafter

  	
   

  	
  1.50 to 1.0

  

 

(d) Net Worth.  The Borrower shall at all times maintain Net
Worth of the Borrower and its Subsidiaries determined on a consolidated basis
in an amount not less than (i) $155,000,000  plus  

 

 

62

 

(ii) 50% of Net
Income for each fiscal quarter of the Borrower ending on June 30, 2008 and
thereafter for which such Net Income is a positive amount (i.e.,
there shall be no reduction to the minimum amount of Net Worth required to be
maintained hereunder for any fiscal quarter in which Net Income is less than
zero), plus (iii) 50% of the aggregate
increases in shareholder equity by the Borrower and its Subsidiaries in
connection with the issuance of any equity securities of the Borrower or any of
its Subsidiaries (including the conversion of any Indebtedness for Borrowed
Money into equity securities of the Borrower).

 

              Section 8.23.       Hedging Facilities. 
Unless the Administrative Agent otherwise consents in its sole
discretion, (i) not less than sixty (60) days after the Closing Date with
respect to the Term A Loans, the Borrower shall enter into and maintain in
full force and effect one or more hedging agreements in such amounts and on
such terms as shall result in effectively limiting the cost to the Borrower of
changes in LIBOR with respect to an aggregate notional principal amount not
less than 50% of the aggregate principal amount of the Term A Loans outstanding
on the Closing Date for a period of at least three (3) years beginning on
the Closing Date and (ii) not less than sixty (60) days after the advance
of each Acquisition Loan, the Borrower shall enter into and maintain in full
force and effect one or more hedging agreements in such amounts and on such
terms as shall result in effectively limiting the cost to the Borrower of
changes in LIBOR with respect to an aggregate notional principal amount not
less than 50% of the aggregate principal amount of the Acquisition Loans
outstanding at the time of such advance for a period of at least three (3) years
beginning on the date that such Acquisition Loan is advanced.  The Borrower will not and will not permit any
of its Subsidiaries to, incur any Hedging Liabilities except for purposes of hedging
and not for speculative purposes.

 

              Section 8.24.       Deposit Accounts. 
The Borrower shall, and shall cause each Subsidiary to, maintain all
deposit accounts (other than those accounts set forth in Section 4.2(i) hereof)
with the Administrative Agent, an Affiliate of the Administrative Agent, a
Lender or with other financial institutions selected by the Borrower and
reasonably acceptable to the Administrative Agent (which financial institutions
have entered into account control agreements with the Administrative Agent
relating to such accounts on terms reasonably acceptable to the Administrative
Agent).

 

SECTION 9.                                                 EVENTS OF
DEFAULT AND REMEDIES.

 

                Section 9.1.       Events of Default.  Any one or more of the following shall
constitute an “Event of Default” hereunder:

 

                   (a)        default
in the payment when due of all or any part of the principal of any Loan
(whether at the stated maturity thereof or at any other time provided for in
this Agreement) or of any Reimbursement Obligation, or default for a period of
five (5) Business Days in the payment when due of any  fee
or other Obligation payable hereunder or under any other Loan Document;

 

                   (b)        default
in the observance or performance of any covenant set forth in
Sections 8.1, 8.5, 8.7, 8.8, 8.9, 8.10, 8.11, 8.12, 8.21, 8.22, 8.23 or
8.24 hereof or of any 

 

 

63

 

provision in any Loan
Document dealing with the use, disposition or remittance of the proceeds of
Collateral or requiring the maintenance of insurance thereon;

 

                   (c)        default
in the observance or performance of any other provision hereof or of any other
Loan Document which is not remedied within thirty (30) days after the earlier
of (i) the date on which such failure shall first become known to any
officer of the Borrower or (ii) written notice thereof is given to the
Borrower by the Administrative Agent;

 

                   (d)        any
representation or warranty made herein or in any other Loan Document or in any
certificate furnished to the Administrative Agent or the Lenders pursuant hereto
or thereto or in connection with any transaction contemplated hereby or thereby
proves untrue in any material respect as of the date of the issuance or making
or deemed making thereof;

 

                   (e)        any
event occurs or condition exists (other than those described in
subsections (a) through (d) above) which is specified as an
event of default under any of the other Loan Documents, or any of the Loan
Documents shall for any reason not be or shall cease to be in full force and
effect or is declared to be null and void, or any of the Collateral Documents
shall for any reason fail to create a valid and perfected first priority Lien
in favor of the Administrative Agent in any Collateral purported to be covered
thereby except as expressly permitted by the terms thereof, or any Subsidiary
takes any action for the purpose of terminating, repudiating or rescinding any
Loan Document executed by it or any of its obligations thereunder;

 

                    (f)        default
shall occur under any Indebtedness for Borrowed Money issued, assumed or guaranteed
by the Borrower or any Subsidiary aggregating in excess of $1,000,000, or under
any indenture, agreement or other instrument under which the same may be
issued, and such default shall continue for a period of time sufficient to
permit the acceleration of the maturity of any such Indebtedness for Borrowed
Money (whether or not such maturity is in fact accelerated), or any such
Indebtedness for Borrowed Money shall not be paid when due (whether by demand,
lapse of time, acceleration or otherwise);

 

                   (g)        any
judgment or judgments, writ or writs or warrant or warrants of attachment, or
any similar process or processes, shall be entered or filed against the
Borrower or any Subsidiary, or against any of its Property, in an aggregate
amount in excess of $1,500,000 (except to the extent fully covered by insurance
pursuant to which the insurer has accepted liability therefor in writing), and
which remains undischarged, unvacated, unbonded or unstayed for a period of
thirty (30) days;

 

                   (h)        the
Borrower or any Subsidiary, or any member of its Controlled Group, shall fail
to pay when due an amount or amounts aggregating in excess of $1,000,000 which
it shall have become liable to pay to the PBGC or to a Plan under Title IV
of ERISA; or notice of intent to terminate a Plan or Plans having aggregate
Unfunded Vested Liabilities in excess of $1,000,000 (collectively, a “Material Plan”) shall be filed under Title IV of ERISA
by the Borrower or any Subsidiary, or any other member of its 

 

 

64

 

Controlled Group, any
plan administrator or any combination of the foregoing; or the PBGC shall
institute proceedings under Title IV of ERISA to terminate or to cause a
trustee to be appointed to administer any Material Plan or a proceeding shall
be instituted by a fiduciary of any Material Plan against the Borrower or any
Subsidiary, or any member of its Controlled Group, to enforce Section 515
or 4219(c)(5) of ERISA and such proceeding shall not have been dismissed
within thirty (30) Days thereafter; or a condition shall exist by reason of
which the PBGC would be entitled to obtain a decree adjudicating that any
Material Plan must be terminated;

 

                    (i)        any
Change of Control shall occur;

 

                    (j)        the
Borrower or any Subsidiary shall (i) have entered involuntarily against it
an order for relief under the United States Bankruptcy Code, as amended, (ii) not
pay, or admit in writing its inability to pay, its debts generally as they
become due, (iii) make an assignment for the benefit of creditors, (iv) apply
for, seek, consent to or acquiesce in, the appointment of a receiver,
custodian, trustee, examiner, liquidator or similar official for it or any
substantial part of its Property, (v) institute any proceeding seeking to
have entered against it an order for relief under the United States Bankruptcy
Code, as amended, to adjudicate it insolvent, or seeking dissolution, winding
up, liquidation, reorganization, arrangement, adjustment or composition of it
or its debts under any law relating to bankruptcy, insolvency or reorganization
or relief of debtors or fail to file an answer or other pleading denying the
material allegations of any such proceeding filed against it, (vi) take
any corporate action in furtherance of any matter described in parts (i) through
(v) above, or (vii) fail to contest in good faith any appointment or
proceeding described in Section 9.1(k) hereof; or

 

                   (k)        a
custodian, receiver, trustee, examiner, liquidator or similar official shall be
appointed for the Borrower or any Subsidiary, or any substantial part of any of
its Property, or a proceeding described in Section 9.1(j)(v) shall be
instituted against the Borrower or any Subsidiary, and such appointment
continues undischarged or such proceeding continues undismissed or unstayed for
a period of sixty (60) days; or

 

                    (j)        any
Subordination Agreement shall for any reason not be or shall cease to be in
full force and effect or is declared null and void, or any party thereto (other
than the Administrative Agent) takes any action for the purpose of repudiating
or rescinding such agreement or any of its obligations thereunder.

 

                Section 9.2.       Non-Bankruptcy Defaults.  When any Event of Default (other than those
described in subsection (j) or (k) of Section 9.1 hereof
with respect to the Borrower) has occurred and is continuing, the
Administrative Agent shall, by written notice to the Borrower: (a) if so
directed by the Required Lenders, terminate the remaining Commitments and all
other obligations of the Lenders hereunder on the date stated in such notice
(which may be the date thereof); (b) if so directed by the Required
Lenders, declare the principal of and the accrued interest on all outstanding
Loans to be forthwith due and payable and thereupon all outstanding Loans,
including both principal and interest thereon, shall be and become immediately
due and payable together with all other amounts payable under the Loan
Documents without further 

 

 

65

 

demand, presentment,
protest or notice of any kind; and (c) if so directed by the Required
Lenders, demand that the Borrower immediately pay to the Administrative Agent
the full amount then available for drawing under each or any Letter of Credit,
and the Borrower agrees to immediately make such payment and acknowledges and
agrees that the Lenders would not have an adequate remedy at law for failure by
the Borrower to honor any such demand and that the Administrative Agent, for
the benefit of the Lenders, shall have the right to require the Borrower to
specifically perform such undertaking whether or not any drawings or other
demands for payment have been made under any Letter of Credit.  The Administrative Agent, after giving notice
to the Borrower pursuant to Section 9.1(c) or this Section 9.2,
shall also promptly send a copy of such notice to the other Lenders, but the
failure to do so shall not impair or annul the effect of such notice.

 

                Section 9.3.       Bankruptcy Defaults.  When any Event of Default described in
subsections (j) or (k) of Section 9.1 hereof with respect
to the Borrower has occurred and is continuing, then all outstanding Loans
shall immediately become due and payable together with all other amounts
payable under the Loan Documents without presentment, demand, protest or notice
of any kind, the obligation of the Lenders to extend further credit pursuant to
any of the terms hereof shall immediately terminate and the Borrower shall
immediately pay to the Administrative Agent the full amount then available for
drawing under all outstanding Letters of Credit, the Borrower acknowledging and
agreeing that the Lenders would not have an adequate remedy at law for failure
by the Borrower to honor any such demand and that the Lenders, and the
Administrative Agent on their behalf, shall have the right to require the
Borrower to specifically perform such undertaking whether or not any draws or
other demands for payment have been made under any of the Letters of Credit.

 

                Section 9.4.       Collateral for Undrawn Letters of Credit.  (a) If the prepayment of the amount
available for drawing under any or all outstanding Letters of Credit is
required under Section 1.9(b) or under Section 9.2 or 9.3 above,
the Borrower shall forthwith pay the amount required to be so prepaid, to be
held by the Administrative Agent as provided in subsection (b) below.

 

                (b)       All
amounts prepaid pursuant to subsection (a) above shall be held by the
Administrative Agent in one or more separate collateral accounts (each such
account, and the credit balances, properties, and any investments from time to
time held therein, and any substitutions for such account, any certificate of
deposit or other instrument evidencing any of the foregoing and all proceeds of
and earnings on any of the foregoing being collectively called the “Collateral Account”) as security for, and for application
by the Administrative Agent (to the extent available) to, the reimbursement of
any payment under any Letter of Credit then or thereafter made by the
L/C Issuer, and to the payment of the unpaid balance of all other
Obligations (and to all Hedging Liability and Funds Transfer and Deposit
Account Liability).  The Collateral
Account shall be held in the name of and subject to the exclusive dominion and
control of the Administrative Agent for the benefit of the Administrative
Agent, the Lenders, and the L/C Issuer. 
If and when requested by the Borrower, the Administrative Agent shall
invest funds held in the Collateral Account from time to time in direct
obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America with a remaining
maturity of one year or less, provided that
the Administrative Agent is 

 

 

66

 

irrevocably authorized to
sell investments held in the Collateral Account when and as required to make
payments out of the Collateral Account for application to amounts due and owing
from the Borrower to the L/C Issuer, the Administrative Agent or the
Lenders; provided, however, that (i) if the
Borrower shall have made payment of all obligations referred to in
subsection (a) above required under Section 1.9(b) hereof,
at the request of the Borrower the Administrative Agent shall release to the
Borrower amounts held in the Collateral Account so long as at the time of the
release and after giving effect thereto no Default or Event of Default exists,
and (ii) if the Borrower shall have made payment of all obligations
referred to in subsection (a) above required under Section 9.2
or 9.3 hereof, so long as no Letters of Credit, Commitments, Loans or other
Obligations, Hedging Liability, or Funds Transfer and Deposit Account Liability
remain outstanding, at the request of the Borrower the Administrative Agent
shall release to the Borrower any remaining amounts held in the Collateral
Account.

 

                Section 9.5.       Notice of Default.  The Administrative Agent shall give notice to
the Borrower under Section 9.1(c) hereof promptly upon being
requested to do so by any Lender and shall thereupon notify all the Lenders
thereof.

 

SECTION 10.                                           CHANGE IN
CIRCUMSTANCES.

 

              Section 10.1.       Change of Law.  Notwithstanding any other provisions of this
Agreement or any other Loan Document, if at any time any change in applicable
law or regulation or in the interpretation thereof makes it unlawful for any
Lender to make or continue to maintain any Eurodollar Loans or to perform its
obligations as contemplated hereby, such Lender shall promptly give notice
thereof to the Borrower and such Lender’s obligations to make or maintain
Eurodollar Loans under this Agreement shall be suspended until it is no longer
unlawful for such Lender to make or maintain Eurodollar Loans.  The Borrower shall prepay on demand the
outstanding principal amount of any such affected Eurodollar Loans, together
with all interest accrued thereon and all other amounts then due and payable to
such Lender under this Agreement; provided, however,
subject to all of the terms and conditions of this Agreement, the Borrower may
then elect to borrow the principal amount of the affected Eurodollar Loans from
such Lender by means of Base Rate Loans from such Lender, which Base Rate Loans
shall not be made ratably by the Lenders but only from such affected Lender.

 

              Section 10.2.       Unavailability of Deposits or Inability
to Ascertain, or Inadequacy of, LIBOR.  If on or prior to the first day of any
Interest Period for any Borrowing of Eurodollar Loans:

 

                   (a)        the
Administrative Agent determines that deposits in U.S. Dollars (in the
applicable amounts) are not being offered to it in the interbank eurodollar
market for such Interest Period, or that by reason of circumstances affecting
the interbank eurodollar market adequate and reasonable means do not exist for
ascertaining the applicable LIBOR, or

 

                   (b)        the
Required Lenders advise the Administrative Agent that (i) LIBOR as
determined by the Administrative Agent will not adequately and fairly reflect
the cost to

 

 

67

 

such Lenders of funding
their Eurodollar Loans for such Interest Period or (ii) that the making or
funding of Eurodollar Loans become impracticable,

 

then the Administrative
Agent shall forthwith give notice thereof to the Borrower and the Lenders,
whereupon until the Administrative Agent notifies the Borrower that the
circumstances giving rise to such suspension no longer exist, the obligations
of the Lenders to make Eurodollar Loans shall be suspended.

 

              Section 10.3.       Increased Cost and Reduced Return.  (a) If, on or after the date hereof, the
adoption of any applicable law, rule or regulation, or any change therein,
or any change in the interpretation or administration thereof by any
governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender (or its
Lending Office) or the L/C Issuer with any request or directive (whether
or not having the force of law) of any such authority, central bank or
comparable agency:

 

                    (i)        shall
subject any Lender (or its Lending Office) or the L/C Issuer to any tax,
duty or other charge with respect to its Eurodollar Loans, its Notes, its
Letter(s) of Credit, or its participation in any thereof, any
Reimbursement Obligations owed to it or its obligation to make Eurodollar
Loans, issue a Letter of Credit, or to participate therein, or shall change the
basis of taxation of payments to any Lender (or its Lending Office) or the
L/C Issuer of the principal of or interest on its Eurodollar Loans, Letter(s) of
Credit, or participations therein or any other amounts due under this Agreement
or any other Loan Document in respect of its Eurodollar Loans, Letter(s) of
Credit, any participation therein, any Reimbursement Obligations owed to it, or
its obligation to make Eurodollar Loans, or issue a Letter of Credit, or acquire
participations therein (except for changes in the rate of tax on the overall
net income of such Lender or its Lending Office or the L/C Issuer imposed
by the jurisdiction in which such Lender’s or the L/C Issuer’s principal
executive office or Lending Office is located); or

 

                   (ii)        shall
impose, modify or deem applicable any reserve, special deposit or similar
requirement (including, without limitation, any such requirement imposed by the
Board of Governors of the Federal Reserve System, but excluding with respect to
any Eurodollar Loans any such requirement included in an applicable Eurodollar
Reserve Percentage) against assets of, deposits with or for the account of, or
credit extended by, any Lender (or its Lending Office) or the L/C Issuer
or shall impose on any Lender (or its Lending Office) or the L/C Issuer or
on the interbank market any other condition affecting its Eurodollar Loans, its
Notes, its Letter(s) of Credit, or its participation in any thereof, any
Reimbursement Obligation owed to it, or its obligation to make Eurodollar
Loans, or to issue a Letter of Credit, or to participate therein;

 

and the result of any of
the foregoing is to increase the cost to such Lender (or its Lending Office) or
the L/C Issuer of making or maintaining any Eurodollar Loan, issuing or
maintaining a Letter of Credit, or participating therein, or to reduce the
amount of any sum received or receivable by such Lender (or its Lending Office)
or the L/C Issuer under this Agreement or under any other Loan Document
with respect thereto, by an amount deemed by such Lender or L/C Issuer to
be material, then, within fifteen (15) days after demand by such Lender or 

 

 

68

 

L/C Issuer (with a
copy to the Administrative Agent), the Borrower shall be obligated to pay to
such Lender or L/C Issuer such additional amount or amounts as will
compensate such Lender or L/C Issuer for such increased cost or reduction.

 

                (b)       If,
after the date hereof, any Lender, the L/ C Issuer, or the Administrative Agent
shall have determined that the adoption of any applicable law, rule or
regulation regarding capital adequacy, or any change therein, or any change in
the interpretation or administration thereof by any governmental authority,
central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Lender (or its Lending Office) or
the L/C Issuer or any corporation controlling such Lender or
L/C Issuer with any request or directive regarding capital adequacy
(whether or not having the force of law) of any such authority, central bank or
comparable agency, has had the effect of reducing the rate of return on such
Lender’s or L/C Issuer ‘s or such corporation’s capital as a consequence
of its obligations hereunder to a level below that which such Lender or
L/C Issuer or such corporation could have achieved but for such adoption,
change or compliance (taking into consideration such Lender’s or
L/C Issuer ‘s or such corporation’s policies with respect to capital
adequacy) by an amount deemed by such Lender or L/C Issuer to be material,
then from time to time, within fifteen (15) days after demand by such Lender or
L/C Issuer (with a copy to the Administrative Agent), the Borrower shall
pay to such Lender or L/C Issuer, as applicable, such additional amount or
amounts as will compensate such Lender or L/C Issuer for such reduction.

 

                (c)       A
certificate of a Lender or L/C Issuer claiming compensation under this Section 10.3
and setting forth the additional amount or amounts to be paid to it hereunder
shall be conclusive if reasonably determined. 
In determining such amount, such Lender or L/C Issuer may use any
reasonable averaging and attribution methods.

 

              Section 10.4.       Lending Offices.  Each Lender may, at its option, elect to make
its Loans hereunder at the branch, office or affiliate specified on the
appropriate signature page hereof (each a “Lending
Office”) for each type of Loan available hereunder or at such other
of its branches, offices or affiliates as it may from time to time elect and
designate in a written notice to the Borrower and the Administrative
Agent.  To the extent reasonably
possible, a Lender shall designate an alternative branch or funding office with
respect to its Eurodollar Loans to reduce any liability of the Borrower to such
Lender under Section 10.3 hereof or to avoid the unavailability of
Eurodollar Loans under Section 10.2 hereof, so long as such designation is
not otherwise disadvantageous to the Lender.

 

              Section 10.5.       Discretion of Lender as to Manner of
Funding.  Notwithstanding any
other provision of this Agreement, each Lender shall be entitled to fund and
maintain its funding of all or any part of its Loans in any manner it sees fit,
it being understood, however, that for the purposes of this Agreement all
determinations hereunder with respect to Eurodollar Loans shall be made as if
each Lender had actually funded and maintained each Eurodollar Loan through the
purchase of deposits in the interbank eurodollar market having a maturity
corresponding to such Loan’s Interest Period, and bearing an interest rate
equal to LIBOR for such Interest Period.

 

 

69

 

SECTION 11.                                           THE
ADMINISTRATIVE AGENT.

 

              Section 11.1.       Appointment and Authorization of
Administrative Agent.  Each
Lender and the L/C Issuer hereby appoints  Bank
of Montreal as the Administrative Agent under the Loan Documents and hereby
authorizes the Administrative Agent to take such action as Administrative Agent
on its behalf and to exercise such powers under the Loan Documents as are
delegated to the Administrative Agent by the terms thereof, together with such
powers as are reasonably incidental thereto. 
The Lenders and L/C Issuer expressly agree that the Administrative
Agent is not acting as a fiduciary of the Lenders or the L/C Issuer in
respect of the Loan Documents, the Borrower or otherwise, and nothing herein or
in any of the other Loan Documents shall result in any duties or obligations on
the Administrative Agent or any of the Lenders or L/C Issuer except as
expressly set forth herein.

 

              Section 11.2.       Administrative Agent and its Affiliates.  The Administrative Agent shall have the same
rights and powers under this Agreement and the other Loan Documents as any
other Lender and may exercise or refrain from exercising such rights and power
as though it were not the Administrative Agent, and the Administrative Agent
and its affiliates may accept deposits from, lend money to, and generally
engage in any kind of business with the Borrower or any Affiliate of the
Borrower as if it were not the Administrative Agent under the Loan
Documents.  The term “Lender”
as used herein and in all other Loan Documents, unless the context otherwise
clearly requires, includes the Administrative Agent in its individual capacity
as a Lender.  References in Section 1
hereof to the Administrative Agent’s Loans, or to the amount owing to the
Administrative Agent for which an interest rate is being determined, refer to
the Administrative Agent in its individual capacity as a Lender.

 

              Section 11.3.       Action by Administrative Agent.  If the Administrative Agent receives from the
Borrower a written notice of an Event of Default pursuant to Section 8.5
hereof, the Administrative Agent shall promptly give each of the Lenders and
L/C Issuer written notice thereof. 
The obligations of the Administrative Agent under the Loan Documents are
only those expressly set forth therein. 
Without limiting the generality of the foregoing, the Administrative
Agent shall not be required to take any action hereunder with respect to any
Default or Event of Default, except as expressly provided in Sections 9.2
and 9.5.  Upon the occurrence of an Event
of Default, the Administrative Agent shall take such action to enforce its Lien
on the Collateral and to preserve and protect the Collateral as may be directed
by the Required Lenders.  Unless and
until the Required Lenders give such direction, the Administrative Agent may
(but shall not be obligated to) take or refrain from taking such actions as it
deems appropriate and in the best interest of all the Lenders and
L/C Issuer.  In no event, however,
shall the Administrative Agent be required to take any action in violation of
applicable law or of any provision of any Loan Document, and the Administrative
Agent shall in all cases be fully justified in failing or refusing to act
hereunder or under any other Loan Document unless it first receives any further
assurances of its indemnification from the Lenders that it may require,
including prepayment of any related expenses and any other protection it
requires against any and all costs, expense, and liability which may be
incurred by it by reason of taking or continuing to take any such action.  The Administrative Agent shall be entitled to
assume that no Default or Event of Default exists unless notified in writing to
the contrary by a Lender, the L/C Issuer, or the Borrower.  In all cases in which the Loan Documents do
not require the Administrative Agent to take specific 

 

 

70

 

action, the
Administrative Agent shall be fully justified in using its discretion in
failing to take or in taking any action thereunder.  Any instructions of the Required Lenders, or
of any other group of Lenders called for under the specific provisions of the
Loan Documents, shall be binding upon all the Lenders and the holders of the
Obligations.

 

              Section 11.4.       Consultation with Experts.  The Administrative Agent may consult with
legal counsel, independent public accountants, and other experts selected by it
and shall not be liable for any action taken or omitted to be taken by it in
good faith in accordance with the advice of such counsel, accountants or
experts.

 

              Section 11.5.       Liability of Administrative Agent; Credit
Decision.  Neither the
Administrative Agent nor any of its directors, officers, agents or employees
shall be liable for any action taken or not taken by it in connection with the
Loan Documents:  (i) with the
consent or at the request of the Required Lenders or (ii) in the absence
of its own gross negligence or willful misconduct.  Neither the Administrative Agent nor any of
its directors, officers, agents or employees shall be responsible for or have
any duty to ascertain, inquire into or verify: 
(i) any statement, warranty or representation made in connection
with this Agreement, any other Loan Document or any Credit Event; (ii) the
performance or observance of any of the covenants or agreements of the Borrower
or any Subsidiary contained herein or in any other Loan Document; (iii) the
satisfaction of any condition specified in Section 7 hereof, except
receipt of items required to be delivered to the Administrative Agent; or (iv) the
validity, effectiveness, genuineness, enforceability, perfection, value, worth
or collectibility hereof or of any other Loan Document or of any other
documents or writing furnished in connection with any Loan Document or of any
Collateral; and the Administrative Agent makes no representation of any kind or
character with respect to any such matter mentioned in this sentence.  The Administrative Agent may execute any of
its duties under any of the Loan Documents by or through employees, agents, and
attorneys-in-fact and shall not be answerable to the Lenders, the
L/C Issuer, the Borrower, or any other Person for the default or
misconduct of any such agents or attorneys-in-fact selected with reasonable
care.  The Administrative Agent shall not
incur any liability by acting in reliance upon any notice, consent,
certificate, other document or statement (whether written or oral) believed by
it to be genuine or to be sent by the proper party or parties.  In particular and without limiting any of the
foregoing, the Administrative Agent shall have no responsibility for confirming
the accuracy of any compliance certificate or other document or instrument
received by it under the Loan Documents. 
The Administrative Agent may treat the payee of any Obligation as the
holder thereof until written notice of transfer shall have been filed with the
Administrative Agent signed by such payee in form satisfactory to the
Administrative Agent.  Each Lender and
L/C Issuer acknowledges that it has independently and without reliance on
the Administrative Agent or any other Lender or L/C Issuer, and based upon
such information, investigations and inquiries as it deems appropriate, made
its own credit analysis and decision to extend credit to the Borrower in the
manner set forth in the Loan Documents. 
It shall be the responsibility of each Lender and L/C Issuer to
keep itself informed as to the creditworthiness of the Borrower and its
Subsidiaries, and the Administrative Agent shall have no liability to any
Lender or L/C Issuer with respect thereto.

 

              Section 11.6.       Indemnity.  The Lenders shall ratably, in accordance with
their respective Percentages, indemnify and hold the Administrative Agent, and
its directors, officers, employees, 

 

 

71

 

agents, and
representatives harmless from and against any liabilities, losses, costs or
expenses suffered or incurred by it under any Loan Document or in connection
with the transactions contemplated thereby, regardless of when asserted or
arising, except to the extent they are promptly reimbursed for the same by the
Borrower and except to the extent that any event giving rise to a claim was
caused by the gross negligence or willful misconduct of the party seeking to be
indemnified.  The obligations of the
Lenders under this Section shall survive termination of this Agreement.  The Administrative Agent shall be entitled to
offset amounts received for the account of a Lender under this Agreement
against unpaid amounts due from such Lender to the Administrative Agent
hereunder (whether as fundings of participations, indemnities or otherwise),
but shall not be entitled to offset against amounts owed to the Administrative
Agent by any Lender arising outside of this Agreement and the other Loan
Documents.

 

              Section 11.7.       Resignation of Administrative Agent and
Successor Administrative Agent. 
The Administrative Agent may resign at any time by giving written notice
thereof to the Lenders, the L/C Issuer, and the Borrower.  Upon any such resignation of the Administrative
Agent, the Required Lenders shall have the right to appoint a successor
Administrative Agent.  If no successor
Administrative Agent shall have been so appointed by the Required Lenders, and
shall have accepted such appointment, within thirty (30) days after the
retiring Administrative Agent’s giving of notice of resignation then the
retiring Administrative Agent may, on behalf of the Lenders, appoint a
successor Administrative Agent, which may be any Lender hereunder or any
commercial bank, or an Affiliate of a commercial bank, having an office in the
United States of America and having a combined capital and surplus of at least
$200,000,000.  Upon the acceptance of its
appointment as the Administrative Agent hereunder, such successor
Administrative Agent shall thereupon succeed to and become vested with all the
rights and duties of the retiring Administrative Agent under the Loan
Documents, and the retiring Administrative Agent shall be discharged from its
duties and obligations thereunder.  After
any retiring Administrative Agent’s resignation hereunder as Administrative Agent,
the provisions of this Section 11 and all protective provisions of the
other Loan Documents shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent, but no successor
Administrative Agent shall in any event be liable or responsible for any
actions of its predecessor.  If the
Administrative Agent resigns and no successor is appointed, the rights and
obligations of such Administrative Agent shall be automatically assumed by the
Required Lenders and (i) the Borrower shall be directed to make all
payments due each Lender and L/C Issuer hereunder directly to such Lender
or L/C Issuer and (ii) the Administrative Agent’s rights in the
Collateral Documents shall be assigned without representation, recourse or
warranty to the Lenders and L/C Issuer as their interests may appear.

 

              Section 11.8.       L/C Issuer and Swing Line Lender.  The L/C Issuer shall act on behalf of
the Lenders with respect to any Letters of Credit issued by it and the
documents associated therewith, and the Swing Line Lender shall act on behalf
of the Lenders with respect to the Swing Loans made hereunder.  The L/C Issuer and the Swing Line Lender
shall each have all of the benefits and immunities (i) provided to the
Administrative Agent in this Section 11 with respect to any acts taken or
omissions suffered by the L/C Issuer in connection with Letters of Credit
issued by it or proposed to be issued by it and the Applications pertaining to
such Letters of Credit or by the Swing Line Lender in connection with Swing
Loans made or to be made hereunder as fully as if the term “Administrative
Agent”, as used in this Section 11, included the 

 

 

72

 

L/C Issuer and the
Swing Line Lender with respect to such acts or omissions and (ii) as
additionally provided in this Agreement with respect to such L/C Issuer or
Swing Line Lender, as applicable.

 

              Section 11.9.       Hedging Liability and Funds Transfer and
Deposit Account Liability Arrangements.  By virtue of a Lender’s execution of this
Agreement or an assignment agreement pursuant to Section 13.12 hereof, as
the case may be, any Affiliate of such Lender with whom the Borrower or any
Subsidiary has entered into an agreement creating Hedging Liability or Funds
Transfer and Deposit Account Liability shall be deemed a Lender party hereto
for purposes of any reference in a Loan Document to the parties for whom the
Administrative Agent is acting, it being understood and agreed that the rights
and benefits of such Affiliate under the Loan Documents consist exclusively of
such Affiliate’s right to share in payments and collections out of the
Collateral and the Guaranties as more fully set forth in Section 3.1
hereof.  In connection with any such
distribution of payments and collections, or any request for the release of the
Guaranties and the Administrative Agent’s Liens in connection with the
termination of the Commitments and the payment in full of the Obligations, the
Administrative Agent shall be entitled to assume no amounts are due to any
Lender or its Affiliate with respect to Hedging Liability or Funds Transfer and
Deposit Account Liability unless such Lender has notified the Administrative
Agent in writing of the amount of any such liability owed to it or its Affiliate
prior to such distribution or payment or release of Guaranties and Liens.

 

            Section 11.10.       Designation of Additional Agents.  The Administrative Agent shall have the
continuing right, for purposes hereof, at any time and from time to time to
designate one or more of the Lenders (and/or its or their Affiliates) as “syndication
agents,” “documentation agents,” “book runners,” “lead arrangers,” “arrangers,”
or other designations for purposes hereto, but such designation shall have no
substantive effect, and such Lenders and their Affiliates shall have no
additional powers, duties or responsibilities as a result thereof.

 

            Section 11.11.       Authorization to Release or Subordinate
or Limit Liens.  The Administrative Agent is hereby
irrevocably authorized by each of the Lenders and the L/C Issuer to (a) release
any Lien covering any Collateral that is sold, transferred, or otherwise
disposed of in accordance with the terms and conditions of this Agreement and
the relevant Collateral Documents (including a sale, transfer, or disposition
permitted by the terms of Section 8.10 hereof or which has otherwise been
consented to in accordance with Section 13.13 hereof), (b) release or
subordinate any Lien on Collateral consisting of goods financed with purchase
money indebtedness or under a Capital Lease to the extent such purchase money
indebtedness or Capitalized Lease Obligation, and the Lien securing the same,
are permitted by Sections 8.7(b) and 8.8(d) hereof, (c) reduce
or limit the amount of the indebtedness secured by any particular item of
Collateral to an amount not less than the estimated value thereof to the extent
necessary to reduce mortgage registry, filing and similar tax, and (d) release
Liens on the Collateral following termination or expiration of the Commitments
and payment in full in cash of the Obligations and, if then due, Hedging
Liability and Funds Transfer and Deposit Account Liability.

 

            Section 11.12.       Authorization to Enter into, and
Enforcement of, the Collateral Documents and Subordination Agreements.  The Administrative Agent is hereby
irrevocably authorized by 

 

 

73

 

each of the Lenders and
the L/C Issuer to execute and deliver the Collateral Documents and, if
required, any Subordination Agreement on behalf of each of the Lenders and
their Affiliates and the L/C Issuer and to take such action and exercise
such powers under the Collateral Documents or Subordination Agreements as the
Administrative Agent considers appropriate, provided the
Administrative Agent shall not amend the Collateral Documents or the
Subordination Agreements unless such amendment is agreed to in writing by the
Required Lenders.  Each Lender and
L/C Issuer acknowledges and agrees that it will be bound by the terms and
conditions of the Collateral Documents and Subordination Agreements upon the
execution and delivery thereof by the Administrative Agent.  Except as otherwise specifically provided for
herein, no Lender (or its Affiliates) or L/C Issuer, other than the
Administrative Agent, shall have the right to institute any suit, action or
proceeding in equity or at law for the foreclosure or other realization upon
any Collateral or for the execution of any trust or power in respect of the
Collateral or for the appointment of a receiver or for the enforcement of any
other remedy under the Collateral Documents; it being understood and intended
that no one or more of the Lenders (or their Affiliates) or L/C Issuer
shall have any right in any manner whatsoever to affect, disturb or prejudice
the Lien of the Administrative Agent (or any security trustee therefor) under
the Collateral Documents by its or their action or to enforce any right
thereunder, and that all proceedings at law or in equity shall be instituted,
had, and maintained by the Administrative Agent (or its security trustee) in
the manner provided for in the relevant Collateral Documents for the benefit of
the Lenders, the L/C Issuer, and their Affiliates.

 

SECTION 12.                                           THE
GUARANTEES.

 

              Section 12.1.       The Guarantees.  To induce the Lenders and L/C Issuer to
provide the credits described herein and in consideration of benefits expected
to accrue to the Borrower by reason of the Commitments and for other good and
valuable consideration, receipt of which is hereby acknowledged, each
Subsidiary party hereto (including any Subsidiary executing an Additional
Guarantor Supplement in the form attached hereto as Exhibit F or such
other form acceptable to the Administrative Agent) hereby unconditionally and
irrevocably guarantees jointly and severally to the Administrative Agent, the
Lenders, and the L/C Issuer and their Affiliates, the due and punctual
payment of all present and future Obligations, Hedging Liability, and Funds
Transfer and Deposit Account Liability, including, but not limited to, the due
and punctual payment of principal of and interest on the Loans, the
Reimbursement Obligations, and the due and punctual payment of all other
Obligations now or hereafter owed by the Borrower under the Loan Documents and
the due and punctual payment of all Hedging Liability and Funds Transfer and
Deposit Account Liability, in each case as and when the same shall become due
and payable, whether at stated maturity, by acceleration, or otherwise,
according to the terms hereof and thereof (including all interest, costs, fees,
and charges after the entry of an order for relief against the Borrower or such
other obligor in a case under the United States Bankruptcy Code or any similar
proceeding, whether or not such interest, costs, fees and charges would be an
allowed claim against the Borrower or any such obligor in any such
proceeding).  In case of failure by the
Borrower or other obligor punctually to pay any Obligations, Hedging Liability,
or Funds Transfer and Deposit Account Liability guaranteed hereby, each
Guarantor hereby unconditionally agrees to make such payment or to cause such
payment to be made punctually as and when the same shall become due and
payable, whether at stated maturity, by acceleration, or otherwise, and as if
such payment were made by the Borrower or such obligor.

 

 

74

 

              Section 12.2.       Guarantee Unconditional.  The obligations of each Guarantor under this Section 12
shall be unconditional and absolute and, without limiting the generality of the
foregoing, shall not be released, discharged, or otherwise affected by:

 

                   (a)        any
extension, renewal, settlement, compromise, waiver, or release in respect of
any obligation of the Borrower or other obligor or of any other guarantor under
this Agreement or any other Loan Document or by operation of law or otherwise;

 

                   (b)        any
modification or amendment of or supplement to this Agreement or any other Loan
Document or any agreement relating to Hedging Liability or Funds Transfer and
Deposit Account Liability;

 

                   (c)        any
change in the corporate existence, structure, or ownership of, or any
insolvency, bankruptcy, reorganization, or other similar proceeding affecting,
the Borrower or other obligor, any other guarantor, or any of their respective
assets, or any resulting release or discharge of any obligation of the Borrower
or other obligor or of any other guarantor contained in any Loan Document;

 

                   (d)        the
existence of any claim, set-off, or other rights which the Borrower or other
obligor or any other guarantor may have at any time against the Administrative
Agent, any Lender, the L/C Issuer or any other Person, whether or not
arising in connection herewith;

 

                   (e)        any
failure to assert, or any assertion of, any claim or demand or any exercise of,
or failure to exercise, any rights or remedies against the Borrower or other
obligor, any other guarantor, or any other Person or Property;

 

                    (f)        any
application of any sums by whomsoever paid or howsoever realized to any
obligation of the Borrower or other obligor, regardless of what obligations of
the Borrower or other obligor remain unpaid;

 

                   (g)        any
invalidity or unenforceability relating to or against the Borrower or other
obligor or any other guarantor for any reason of this Agreement or of any other
Loan Document or any agreement relating to Hedging Liability or Funds Transfer
and Deposit Account Liability or any provision of applicable law or regulation
purporting to prohibit the payment by the Borrower or other obligor or any
other guarantor of the principal of or interest on any Loan or any
Reimbursement Obligation or any other amount payable under the Loan Documents
or any agreement relating to Hedging Liability or Funds Transfer and Deposit
Account Liability; or

 

                   (h)        any
other act or omission to act or delay of any kind by the Administrative Agent,
any Lender, the L/C Issuer, or any other Person or any other circumstance
whatsoever that might, but for the provisions of this paragraph, constitute a
legal or equitable discharge of the obligations of any Guarantor under this Section 12.

 

 

75

 

              Section 12.3.       Discharge
Only upon Payment in Full; Reinstatement in Certain Circumstances.  Each Guarantor’s obligations under this Section 12
shall remain in full force and effect until the Commitments are terminated, all
Letters of Credit have expired, and the principal of and interest on the Loans
and all other amounts payable by the Borrower and the Guarantors under this
Agreement and all other Loan Documents and, if then outstanding and unpaid, all
Hedging Liability and Funds Transfer and Deposit Account Liability shall have
been paid in full.  If at any time any
payment of the principal of or interest on any Loan or any Reimbursement
Obligation or any other amount payable by the Borrower or other obligor or any
Guarantor under the Loan Documents or any agreement relating to Hedging
Liability or Funds Transfer and Deposit Account Liability is rescinded or must
be otherwise restored or returned upon the insolvency, bankruptcy, or
reorganization of the Borrower or other obligor or of any guarantor, or otherwise,
each Guarantor’s obligations under this Section 12 with respect to such
payment shall be reinstated at such time as though such payment had become due
but had not been made at such time.

 

              Section 12.4.       Subrogation.  Each Guarantor agrees it will not exercise
any rights which it may acquire by way of subrogation by any payment made
hereunder, or otherwise, until all the Obligations, Hedging Liability, and
Funds Transfer and Deposit Account Liability shall have been paid in full
subsequent to the termination of all the Commitments and expiration of all
Letters of Credit.  If any amount shall
be paid to a Guarantor on account of such subrogation rights at any time prior
to the later of (x) the payment in full of the Obligations, Hedging
Liability, and Funds Transfer and Deposit Account Liability and all other
amounts payable by the Borrower hereunder and the other Loan Documents and (y) the
termination of the Commitments and expiration of all Letters of Credit, such
amount shall be held in trust for the benefit of the Administrative Agent, the
Lenders, and the L/C Issuer (and their Affiliates) and shall forthwith be
paid to the Administrative Agent for the benefit of the Lenders and
L/C Issuer (and their Affiliates) or be credited and applied upon the Obligations,
Hedging Liability, and Funds Transfer and Deposit Account Liability, whether
matured or unmatured, in accordance with the terms of this Agreement.

 

              Section 12.5.       Waivers.  Each Guarantor irrevocably waives acceptance
hereof, presentment, demand, protest, and any notice not provided for herein,
as well as any requirement that at any time any action be taken by the
Administrative Agent, any Lender, the L/C Issuer, or any other Person
against the Borrower or other obligor, another guarantor, or any other Person.

 

              Section 12.6.       Limit on Recovery. 
Notwithstanding any other provision hereof, the right of recovery
against each Guarantor under this Section 12 shall not exceed $1.00 less
than the lowest amount which would render such Guarantor’s obligations under
this Section 12 void or avoidable under applicable law, including, without
limitation, fraudulent conveyance law.

 

              Section 12.7.       Stay of
Acceleration.  If acceleration
of the time for payment of any amount payable by the Borrower or other obligor
under this Agreement or any other Loan Document, or under any agreement
relating to Hedging Liability or Funds Transfer and Deposit Account Liability,
is stayed upon the insolvency, bankruptcy or reorganization of the Borrower or
such obligor, all such amounts otherwise subject to acceleration under the
terms of this Agreement or the other Loan Documents, or under any agreement
relating to Hedging Liability or Funds

 

76

 

Transfer and Deposit Account Liability, shall
nonetheless be payable by the Guarantors hereunder forthwith on demand by the
Administrative Agent made at the request of the Required Lenders.

 

              Section 12.8.       Benefit
to Guarantors.  The Borrower
and the Guarantors are engaged in related businesses and integrated to such an
extent that the financial strength and flexibility of the Borrower has a direct
impact on the success of each Guarantor. 
Each Guarantor will derive substantial direct and indirect benefit from
the extensions of credit hereunder.

 

              Section 12.9.       Guarantor
Covenants.  Each Guarantor
shall take such action as the Borrower is required by this Agreement to cause
such Guarantor to take, and shall refrain from taking such action as the
Borrower is required by this Agreement to prohibit such Guarantor from taking.

 

SECTION 13.                                           MISCELLANEOUS.

 

              Section 13.1.       Withholding
Taxes.  (a) Payments Free of Withholding.  Except as otherwise required by law and
subject to Section 13.1(b) hereof, each payment by the Borrower and
the Guarantors under this Agreement or the other Loan Documents shall be made
without withholding for or on account of any present or future taxes (other
than overall net income taxes on the recipient) imposed by or within the
jurisdiction in which the Borrower or such Guarantor is domiciled, any
jurisdiction from which the Borrower or such Guarantor makes any payment, or
(in each case) any political subdivision or taxing authority thereof or
therein.  If any such withholding is so
required, the Borrower or such Guarantor shall make the withholding, pay the
amount withheld to the appropriate governmental authority before penalties
attach thereto or interest accrues thereon, and forthwith pay such additional
amount as may be necessary to ensure that the net amount actually received by
each Lender, the L/C Issuer, and the Administrative Agent free and clear
of such taxes (including such taxes on such additional amount) is equal to the
amount which that Lender, L/C Issuer, or the Administrative Agent (as the
case may be) would have received had such withholding not been made.  If the Administrative Agent, the
L/C Issuer, or any Lender pays any amount in respect of any such taxes,
penalties or interest, the Borrower or such Guarantor shall reimburse the
Administrative Agent, the L/C Issuer or such Lender for that payment on
demand in the currency in which such payment was made.  If the Borrower or such Guarantor pays any
such taxes, penalties or interest, it shall deliver official tax receipts
evidencing that payment or certified copies thereof to the Lender, the
L/C Issuer or Administrative Agent on whose account such withholding was
made (with a copy to the Administrative Agent if not the recipient of the
original) on or before the thirtieth (30th) day after payment.

 

                (b)       U.S. Withholding Tax
Exemptions.  Each Lender or
L/C Issuer that is not a United States person (as such term is defined in Section 7701(a)(30)
of the Code) shall submit to the Borrower and the Administrative Agent on or
before the date the initial Credit Event is made hereunder or, if later, the
date such financial institution becomes a Lender or L/C Issuer hereunder,
two (2) duly completed and signed copies of (i) either Form W-8 BEN
(relating to such Lender or L/C Issuer and entitling it to a complete
exemption from withholding under the Code on all amounts to be received by such
Lender or L/C Issuer, including fees, pursuant to the

 

77

 

Loan Documents and the Obligations) or Form W-8 ECI
(relating to all amounts to be received by such Lender or L/C Issuer,
including fees, pursuant to the Loan Documents and the Obligations) of the
United States Internal Revenue Service or (ii) solely if such Lender is
claiming exemption from United States withholding tax under Section 871(h) or
881(c) of the Code with respect to payments of “portfolio interest”, a Form W-8 BEN,
or any successor form prescribed by the Internal Revenue Service, and a
certificate representing that such Lender is not a bank for purposes of Section 881(c) of
the Code, is not a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of
the Code) of the Borrower and is not a controlled foreign corporation related
to the Borrower (within the meaning of Section 864(d)(4) of the
Code).  Thereafter and from time to time,
each Lender and L/C Issuer shall submit to the Borrower and the
Administrative Agent such additional duly completed and signed copies of one or
the other of such Forms (or such successor forms as shall be adopted from time
to time by the relevant United States taxing authorities) and such other
certificates as may be (i) requested by the Borrower in a written notice,
directly or through the Administrative Agent, to such Lender or L/C Issuer
and (ii) required under then-current United States law or regulations to
avoid or reduce United States withholding taxes on payments in respect of all
amounts to be received by such Lender or L/C Issuer, including fees,
pursuant to the Loan Documents or the Obligations.  Upon the request of the Borrower or the
Administrative Agent, each Lender and L/C Issuer that is a United States
person (as such term is defined in Section 7701(a)(30) of the Code) shall
submit to the Borrower and the Administrative Agent a certificate to the effect
that it is such a United States person.

 

                (c)       Inability of Lender to
Submit Forms.  If any Lender
or L/C Issuer determines, as a result of any change in applicable law,
regulation or treaty, or in any official application or interpretation thereof,
that it is unable to submit to the Borrower or the Administrative Agent any
form or certificate that such Lender or L/C Issuer is obligated to submit
pursuant to subsection (b) of this Section 13.1 or that such
Lender or L/C Issuer is required to withdraw or cancel any such form or
certificate previously submitted or any such form or certificate otherwise
becomes ineffective or inaccurate, such Lender or L/C Issuer shall
promptly notify the Borrower and Administrative Agent of such fact and the
Lender or L/C Issuer shall to that extent not be obligated to provide any
such form or certificate and will be entitled to withdraw or cancel any
affected form or certificate, as applicable.

 

              Section 13.2.       No
Waiver, Cumulative Remedies. 
No delay or failure on the part of the Administrative Agent, the
L/C Issuer, or any Lender, or on the part of the holder or holders of any
of the Obligations, in the exercise of any power or right under any Loan
Document shall operate as a waiver thereof or as an acquiescence in any
default, nor shall any single or partial exercise of any power or right
preclude any other or further exercise thereof or the exercise of any other
power or right.  The rights and remedies
hereunder of the Administrative Agent, the L/C Issuer, the Lenders, and of
the holder or holders of any of the Obligations are cumulative to, and not
exclusive of, any rights or remedies which any of them would otherwise have.

 

              Section 13.3.       Non-Business
Days.  If any payment
hereunder becomes due and payable on a day which is not a Business Day, the due
date of such payment shall be extended to the next succeeding Business Day on
which date such payment shall be due and payable.  In the case of any payment of principal
falling due on a day which is not a Business Day, interest on such

 

78

 

principal amount shall continue to accrue during such
extension at the rate per annum then in effect, which accrued amount shall be
due and payable on the next scheduled date for the payment of interest.

 

              Section 13.4.       Documentary
Taxes.  The Borrower agrees to
pay on demand any documentary, stamp or similar taxes payable in respect of
this Agreement or any other Loan Document, including interest and penalties, in
the event any such taxes are assessed, irrespective of when such assessment is
made and whether or not any credit is then in use or available hereunder.

 

              Section 13.5.       Survival
of Representations.  All
representations and warranties made herein or in any other Loan Document or in
certificates given pursuant hereto or thereto shall survive the execution and
delivery of this Agreement and the other Loan Documents, and shall continue in
full force and effect with respect to the date as of which they were made as
long as any credit is in use or available hereunder.

 

              Section 13.6.       Survival of Indemnities. 
All indemnities and other provisions relative to reimbursement to the
Lenders and L/C Issuer of amounts sufficient to protect the yield of the
Lenders and L/C Issuer with respect to the Loans and Letters of Credit,
including, but not limited to, Sections 1.12, 10.3, and 13.15 hereof,
shall survive the termination of this Agreement and the other Loan Documents
and the payment of the Obligations.

 

              Section 13.7.       Sharing
of Set-Off.  Each Lender
agrees with each other Lender a party hereto that if such Lender shall receive
and retain any payment, whether by set-off or application of deposit balances
or otherwise, on any of the Loans or Reimbursement Obligations in excess of its
ratable share of payments on all such Obligations then outstanding to the
Lenders, then such Lender shall purchase for cash at face value, but without
recourse, ratably from each of the other Lenders such amount of the Loans or
Reimbursement Obligations, or participations therein, held by each such other
Lenders (or interest therein) as shall be necessary to cause such Lender to
share such excess payment ratably with all the other Lenders; provided, however, that if any such purchase is made by any
Lender, and if such excess payment or part thereof is thereafter recovered from
such purchasing Lender, the related purchases from the other Lenders shall be
rescinded ratably and the purchase price restored as to the portion of such
excess payment so recovered, but without interest.  For purposes of this Section, amounts owed to
or recovered by the L/C Issuer in connection with Reimbursement
Obligations in which Lenders have been required to fund their participation
shall be treated as amounts owed to or recovered by the L/C Issuer as a
Lender hereunder.

 

              Section 13.8.       Notices.  Except as otherwise specified herein, all
notices hereunder and under the other Loan Documents shall be in writing
(including, without limitation, notice by telecopy) and shall be given to the
relevant party at its address or telecopier number set forth below, or such
other address or telecopier number as such party may hereafter specify by
notice to the Administrative Agent and the Borrower given by courier, by United
States certified or registered mail, by telecopy or by other telecommunication
device capable of creating a written record of such notice and its
receipt.  Notices under the Loan
Documents to any Lender shall be addressed to its address or telecopier number
set forth on its Administrative Questionnaire; and

 

79

 

notices under the Loans Documents to the Borrower, any
Guarantor, the Administrative Agent or L/C Issuer shall be addressed to
its respective address or telecopier number set forth below:

 

	
  to the Borrower or any Guarantor:

  	
   

  	
  to the Administrative Agent and L/C Issuer :

  
	
   

  	
   

  	
   

  
	
  750 John W. Carpenter Freeway

  	
   

  	
  Bank of Montreal

  
	
  Suite 700

  	
   

  	
  115 South LaSalle Street

  
	
  Irving, Texas 75039

  	
   

  	
  Chicago, Illinois 60603

  
	
  Attention:Omar A. Choucair

  	
   

  	
  Attention:Kathleen Jones

  
	
  Telephone:972-581-2000

  	
   

  	
  Telephone:312-461-7077

  
	
  Telecopy:972-581-2100

  	
   

  	
  Telecopy:312-461-4008

  

 

Each such notice, request or other communication shall
be effective (i) if given by telecopier, when such telecopy is transmitted
to the telecopier number specified in this Section or in the relevant
Administrative Questionnaire and a confirmation of such telecopy has been
received by the sender, (ii) if given by mail, five (5) days after
such communication is deposited in the mail, certified or registered with return
receipt requested, addressed as aforesaid or (iii) if given by any other
means, when delivered at the addresses specified in this Section or in the
relevant Administrative Questionnaire; provided that  any notice given pursuant to Section 1 hereof shall be
effective only upon receipt.

 

              Section 13.9.       Counterparts.  This Agreement may be executed in any number
of counterparts, and by the different parties hereto on separate counterpart
signature pages, and all such counterparts taken together shall be deemed to
constitute one and the same instrument.

 

            Section 13.10.       Successors
and Assigns.  This Agreement
shall be binding upon the Borrower and the Guarantors and their successors and
assigns, and shall inure to the benefit of the Administrative Agent, the
L/C Issuer, and each of the Lenders, and the benefit of their respective
successors and assigns, including any subsequent holder of any of the
Obligations.  The Borrower and the
Guarantors may not assign any of their rights or obligations under any Loan Document
without the written consent of all of the Lenders and, with respect to any
Letter of Credit or the Application therefor, the L/C Issuer.

 

            Section 13.11.       Participants.  Each Lender shall have the right at its own
cost to grant participations (to be evidenced by one or more agreements or
certificates of participation) in the Loans made and Reimbursement Obligations
and/or Commitments held by such Lender at any time and from time to time to one
or more other Persons; provided that no such participation shall relieve any
Lender of any of its obligations under this Agreement, and, provided, further
that no such participant shall have any rights under this Agreement except as
provided in this Section, and the Administrative Agent shall have no obligation
or responsibility to such participant. 
Any agreement pursuant to which such participation  is granted shall provide that the granting
Lender shall retain the sole right and responsibility to enforce the
obligations of the Borrower under this Agreement and the other Loan Documents
including, without limitation, the right to approve any amendment, modification
or waiver of any provision of the Loan Documents, except that such agreement
may provide that such Lender will not agree to any modification, amendment or
waiver of the Loan Documents that would reduce the amount of or

 

80

 

postpone any fixed date for payment of any Obligation
in which such participant has an interest. 
Any party to which such a participation has been granted shall have the
benefits of Section 1.12 and Section 10.3 hereof.  The Borrower authorizes each Lender to
disclose to any participant or prospective participant under this Section any
financial or other information pertaining to the Borrower or any Subsidiary.

 

            Section 13.12.       Assignments.  (a) Any Lender may at any time assign to
one or more Eligible Assignees all or a portion of such Lender’s rights and
obligations under this Agreement (including all or a portion of its Commitment
and the Loans at the time owing to it); provided that
any such assignment shall be subject to the following conditions:

 

                 (i)       Minimum Amounts.  (A) In the case of an assignment of the
entire remaining amount of the assigning Lender’s Commitment and the Loans and
participation interest in L/C Obligations at the time owing to it or in the
case of an assignment to a Lender, an Affiliate of a Lender or an Approved
Fund, no minimum amount need be assigned; and (B) in any case not
described in subsection (a)(i)(A) of this Section, the aggregate amount of
the Commitment (which for this purpose includes Loans and participation
interest in L/C Obligations outstanding thereunder) or, if the applicable
Commitment is not then in effect, the principal outstanding balance of the
Loans and participation interest in L/C Obligations of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and
Acceptance with respect to such assignment is delivered to the Administrative
Agent or, if “Effective Date” is specified in the Assignment and Acceptance, as
of the Effective Date) shall not be less than $2,500,000, in the case of any
assignment in respect of the Revolving Credit, or $1,000,000, in the case of
any assignment in respect of any Term Loan, unless each of the Administrative
Agent and, so long as no Event of Default has occurred and is continuing, the
Borrower otherwise consents (each such consent not to be unreasonably withheld
or delayed);

 

                (ii)       Proportionate Amounts.         Each partial assignment shall be made
as an assignment of a proportionate part of all the assigning Lender’s rights
and obligations under this Agreement with respect to the Loan or the Commitment
assigned, except that this clause (ii) shall not prohibit any Lender
from assigning all or a portion of its rights and obligations among separate
Credits on a non-pro rata basis.

 

               (iii)       Required Consents. No
consent shall be required for any assignment except to the extent required by Section 13.12(a)(i)(B) and,
in addition:

 

                   (a)        the consent of the Borrower (such
consent not to be unreasonably withheld or delayed) shall be required unless (x) an
Event of Default  has occurred and is continuing
at the time of such assignment or (y) such assignment is to a Lender, an
Affiliate of a Lender or an Approved Fund;

 

                   (b)        the consent of the Administrative Agent
(such consent not to be unreasonably withheld or delayed) shall be required for
assignments in respect of (i) the Revolving Credit if such assignment is
to a Person that is not a Lender with a Commitment in respect of such facility,
an Affiliate of such Lender or an Approved Fund

 

81

 

with respect to such Lender or (ii) the Term
Loans to a Person who is not a Lender, an Affiliate of a Lender or an Approved
Fund;

 

                   (c)        the consent of the L/C Issuer (such
consent not to be unreasonably withheld or delayed) shall be required for any
assignment that increases the obligation of the assignee to participate in
exposure under one or more Letters of Credit (whether or not then outstanding);
and

 

                   (d)        the consent of the Swing Line Lender
(such consent not to be unreasonably withheld or delayed) shall be required for
any assignment that increases the obligation of the assignee to participate in
exposure under one or more Swing Loans (whether or not then outstanding).

 

               (iv)       Assignment and Acceptance. The parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Acceptance, together
with a processing and recordation fee of $3,500, and the assignee, if it is not
a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire; provided that the processing and
recordation fee shall not be required if the assignee is an Affiliate of the
assigning Lender.

 

                (v)       No Assignment to Borrower
or Affiliates.  No such
assignment shall be made to the Borrower or any of its Affiliates or
Subsidiaries.

 

               (vi)       No Assignment to Natural
Persons.     No such assignment
shall be made to a natural person.

 

Subject to acceptance and recording thereof by the
Administrative Agent pursuant to Section 13.12(b) hereof, from and
after the effective date specified in each Assignment and Acceptance, the
assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Acceptance, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto) but shall continue to be entitled to the benefits of
Sections 13.6 and 13.15 with respect to facts and circumstances occurring
prior to the effective date of such assignment. 
Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this Section shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with Section 13.11 hereof.

 

                (b)       Register.  The Administrative Agent, acting solely for
this purpose as an agent of the Borrower, shall maintain at one of its offices
in Chicago, Illinois, a copy of each Assignment and Acceptance delivered to it
and a register for the recordation of the names and addresses of the Lenders,
and the Commitments of, and principal amounts of the Loans owing to, each
Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender

 

82

 

hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. 
The Register shall be available for inspection by the Borrower and any
Lender, at any reasonable time and from time to time upon reasonable prior
notice.

 

                (c)       Any Lender may at any time pledge or
grant a security interest in all or any portion of its rights under this
Agreement to secure obligations of such Lender, including any such pledge or
grant to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or grant of a security interest; provided
that no such pledge or grant of a security interest shall release a Lender from
any of its obligations hereunder or substitute any such pledgee or secured
party for such Lender as a party hereto; provided further, however,
the right of any such pledgee or grantee (other than any Federal Reserve Bank)
to further transfer all or any portion of the rights pledged or granted to it,
whether by means of foreclosure or otherwise, shall be at all times subject to
the terms of this Agreement.

 

                (d)       Notwithstanding anything to the contrary
herein, if at any time the Swing Line Lender assigns all of its Revolving Credit
Commitments and Revolving Loans pursuant to subsection (a) above, the
Swing Line Lender may terminate the Swing Line. 
In the event of such termination of the Swing Line, the Borrower shall
be entitled to appoint another Lender to act as the successor Swing Line Lender
hereunder (with such Lender’s consent); provided, however,
that the failure of the Borrower to appoint a successor shall not affect the
resignation of the Swing Line Lender.  If
the Swing Line Lender terminates the Swing Line, it shall retain all of the
rights of the Swing Line Lender provided hereunder with respect to Swing Loans
made by it and outstanding as of the effective date of such termination,
including the right to require Lenders to make Revolving Loans or fund
participations in outstanding Swing Loans pursuant to Section 1.7 hereof.

 

            Section 13.13.       Amendments.  Any provision of this Agreement or the other
Loan Documents may be amended or waived if, but only if, such amendment or
waiver is in writing and is signed by (a) the Borrower, (b) the
Required Lenders, and (c) if the rights or duties of the Administrative
Agent, the L/C Issuer, or the Swing Line Lender are affected thereby, the
Administrative Agent, the L/C Issuer, or the Swing Line Lender, as
applicable; provided that:

 

                    (i)        no amendment or waiver pursuant to this Section 13.13
shall (A) increase any Commitment of any Lender without the consent of
such Lender or (B) reduce the amount of or postpone the date for any
scheduled payment of any principal of or interest on any Loan or of any
Reimbursement Obligation or of any fee payable hereunder without the consent of
the Lender to which such payment is owing or which has committed to make such
Loan or Letter of Credit (or participate therein) hereunder;

 

                   (ii)        no amendment or waiver pursuant to this Section 13.13
shall, unless signed by each Lender, extend the Revolving Credit Termination
Date, extend the Acquisition Credit Commitment Termination Date, change the
definition of Required Lenders, change the provisions of this Section 13.13,
change the priority of payments contained in Section 3.1 hereof, change
the pro rata sharing of payments contained
in Section 13.7 hereof, release any material guarantor or any substantial
part of the Collateral (except as otherwise provided for in the Loan
Documents), or affect the

 

83

 

number of Lenders required to take any action
hereunder or under any other Loan Document; and

 

                  (iii)        no amendment to Section 12 hereof
shall be made without the consent of the Guarantor(s) affected thereby.

 

            Section 13.14.       Headings.
Section headings used in this Agreement are for reference only and shall
not affect the construction of this Agreement.

 

            Section 13.15.       Costs
and Expenses; Indemnification. 
(a) The Borrower agrees to pay all reasonable costs and expenses of
the Administrative Agent in connection with the preparation, negotiation,
syndication, and administration of the Loan Documents, including, without
limitation, the reasonable fees and disbursements of counsel to the
Administrative Agent, in connection with the preparation and execution of the
Loan Documents, and any amendment, waiver or consent related thereto, whether
or not the transactions contemplated herein are consummated, together with any
fees and charges suffered or incurred by the Administrative Agent in connection
with collateral filing fees, lien searches and with respect to any owned real
property, periodic environmental audits, fixed asset appraisals and title
insurance policies.  The Borrower agrees
to pay to the Administrative Agent, the L/C Issuer and each Lender, and
any other holder of any Obligations outstanding hereunder, all costs and
expenses reasonably incurred or paid by the Administrative Agent, the
L/C Issuer, such Lender, or any such holder, including reasonable
attorneys’ fees and disbursements and court costs, in connection with any
Default or Event of Default hereunder or in connection with the enforcement of
any of the Loan Documents (including all such costs and expenses incurred in
connection with any proceeding under the United States Bankruptcy Code
involving the Borrower or any Guarantor as a debtor thereunder).  The Borrower further agrees to pay all
reasonable costs and expenses incurred by the Administrative Agent, and any
security trustee therefore, in monitoring, verifying, protecting, preserving or
enforcing the Liens on the Collateral, in protecting, preserving or enforcing
rights under the Loan Documents.  The
Borrower further agrees to indemnify the Administrative Agent, the
L/C Issuer, each Lender, and any security trustee therefor, and their
respective directors, officers, employees, agents, financial advisors, and
consultants (each such Person being called an “Indemnitee”)
against all losses, claims, damages, penalties, judgments, liabilities and
expenses (including, without limitation, all reasonable fees and disbursements
of counsel for any such Indemnitee and all reasonable expenses of litigation or
preparation therefor, whether or not the Indemnitee is a party thereto, or any
settlement arrangement arising from or relating to any such litigation) which
any of them may pay or incur arising out of or relating to any Loan Document or
any of the transactions contemplated thereby or the direct or indirect application
or proposed application of the proceeds of any Loan or Letter of Credit, other
than those which arise from the gross negligence or willful misconduct of the
party claiming indemnification.  The
Borrower, upon demand by the Administrative Agent, the L/C Issuer or a
Lender at any time, shall reimburse the Administrative Agent, the
L/C Issuer or such Lender for any reasonable legal or other expenses
(including, without limitation, all reasonable fees and disbursements of
counsel for any such Indemnitee) incurred in connection with investigating or
defending against any of the foregoing (including any settlement costs relating
to the foregoing) except if the same is directly due to the gross negligence or
willful misconduct of the party to be indemnified.  To the extent permitted by applicable law,
neither the Borrower nor any Guarantor

 

84

 

shall assert, and each such Person hereby waives, any
claim against any Indemnitee, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement
or the other Loan Documents or any agreement or instrument contemplated hereby
or thereby, the transactions contemplated hereby or thereby, any Loan or Letter
of Credit or the use of the proceeds thereof. 
The obligations of the Borrower under this Section shall survive
the termination of this Agreement.

 

                (b)       The Borrower unconditionally agrees to
forever indemnify, defend and hold harmless, and covenants not to sue for any
claim for contribution against, each Indemnitee for any damages, costs, loss or
expense, including without limitation, response, remedial or removal costs and
all fees and disbursements of counsel for any such Indemnitee, arising out of
any of the following:  (i) any
presence, release, threatened release or disposal of any hazardous or toxic
substance or petroleum by the Borrower or any Subsidiary or otherwise occurring
on or with respect to its Property (whether owned or leased), (ii) the
operation or violation of any environmental law, whether federal, state, or
local, and any regulations promulgated thereunder, by the Borrower or any
Subsidiary or otherwise occurring on or with respect to its Property (whether
owned or leased), (iii) any claim for personal injury or property damage
in connection with the Borrower or any Subsidiary or otherwise occurring on or
with respect to its Property (whether owned or leased), and (iv) the inaccuracy
or breach of any environmental representation, warranty or covenant by the
Borrower or any Subsidiary made herein or in any other Loan Document evidencing
or securing any Obligations or setting forth terms and conditions applicable
thereto or otherwise relating thereto, except for damages arising from the
willful misconduct or gross negligence of the relevant Indemnitee.  This indemnification shall survive the
payment and satisfaction of all Obligations and the termination of this
Agreement, and shall remain in force beyond the expiration of any applicable
statute of limitations and payment or satisfaction in full of any single claim
under this indemnification.  This
indemnification shall be binding upon the successors and assigns of the
Borrower and shall inure to the benefit of each Indemnitee and its successors
and assigns.

 

            Section 13.16.       Set-off.  In addition
to any rights now or hereafter granted under the Loan Documents or applicable
law and not by way of limitation of any such rights, upon the occurrence of any
Event of Default, each Lender, the L/C Issuer, each subsequent holder of
any Obligation, and each of their respective affiliates, is hereby authorized
by the Borrower and each Guarantor at any time or from time to time, without
notice to the Borrower, any Guarantor or to any other Person, any such notice
being hereby expressly waived, to set-off and to appropriate and to apply any
and all deposits (general or special, including, but not limited to,
indebtedness evidenced by certificates of deposit, whether matured or
unmatured, and in whatever currency denominated, but not including trust
accounts) and any other indebtedness at any time held or owing by that Lender,
L/C Issuer, subsequent holder, or affiliate, to or for the credit or the
account of the Borrower or such Guarantor, whether or not matured, against and
on account of the Obligations of the Borrower or such Guarantor to that Lender,
L/C Issuer, or subsequent holder under the Loan Documents, including, but
not limited to, all claims of any nature or description arising out of or
connected with the Loan Documents, irrespective of whether or not (a) that
Lender, L/C Issuer, or subsequent holder shall have made any demand
hereunder or (b) the principal of or the interest on the Loans and other amounts
due hereunder shall have

 

85

 

become due and payable pursuant to Section 9 and
although said obligations and liabilities, or any of them, may be contingent or
unmatured.

 

            Section 13.17.       Entire
Agreement.  The Loan Documents
constitute the entire understanding of the parties thereto with respect to the
subject matter thereof and any prior agreements, whether written or oral, with
respect thereto are superseded hereby.

 

            Section 13.18.       Governing
Law.  This Agreement and the
other Loan Documents (except as otherwise specified therein), and the rights
and duties of the parties hereto, shall be construed and determined in
accordance with the internal laws of the State of Illinois.

 

            Section 13.19.       Severability
of Provisions.  Any provision
of any Loan Document which is unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such unenforceability
without invalidating the remaining provisions hereof or affecting the validity
or enforceability of such provision in any other jurisdiction.  All rights, remedies and powers provided in
this Agreement and the other Loan Documents may be exercised only to the extent
that the exercise thereof does not violate any applicable mandatory provisions
of law, and all the provisions of this Agreement and other Loan Documents are
intended to be subject to all applicable mandatory provisions of law which may
be controlling and to be limited to the extent necessary so that they will not
render this Agreement or the other Loan Documents invalid or unenforceable.

 

            Section 13.20.       Excess Interest. 
Notwithstanding any provision to the contrary contained herein or in any
other Loan Document, no such provision shall require the payment or permit the
collection of any amount of interest in excess of the maximum amount of
interest permitted by applicable law to be charged for the use or detention, or
the forbearance in the collection, of all or any portion of the Loans or other
obligations outstanding under this Agreement or any other Loan Document (“Excess Interest”). 
If any Excess Interest is provided for, or is adjudicated to be provided
for, herein or in any other Loan Document, then in such event (a) the
provisions of this Section shall govern and control, (b) neither the
Borrower nor any guarantor or endorser shall be obligated to pay any Excess
Interest, (c) any Excess Interest that the Administrative Agent or any
Lender may have received hereunder shall, at the option of the Administrative
Agent, be (i) applied as a credit against the then outstanding principal
amount of Obligations hereunder and accrued and unpaid interest thereon (not to
exceed the maximum amount permitted by applicable law), (ii) refunded to
the Borrower, or (iii) any combination of the foregoing, (d) the
interest rate payable hereunder or under any other Loan Document shall be
automatically subject to reduction to the maximum lawful contract rate allowed
under applicable usury laws (the “Maximum Rate”),
and this Agreement and the other Loan Documents shall be deemed to have been,
and shall be, reformed and modified to reflect such reduction in the relevant
interest rate, and (e) neither the Borrower nor any guarantor or endorser
shall have any action against the Administrative Agent or any Lender for any
damages whatsoever arising out of the payment or collection of any Excess
Interest.  Notwithstanding the foregoing,
if for any period of time interest on any of Borrower’s Obligations is
calculated at the Maximum Rate rather than the applicable rate under this
Agreement, and thereafter such applicable rate becomes less than the Maximum
Rate, the rate of interest payable on the Borrower’s Obligations shall remain
at the Maximum Rate until the Lenders have received the amount of interest
which such

 

86

 

Lenders would have received during such period on the
Borrower’s Obligations had the rate of interest not been limited to the Maximum
Rate during such period.

 

            Section 13.21.       Construction.  The parties acknowledge and agree that the
Loan Documents shall not be construed more favorably in favor of any party
hereto based upon which party drafted the same, it being acknowledged that all
parties hereto contributed substantially to the negotiation of the Loan
Documents.  The provisions of this
Agreement relating to Subsidiaries shall only apply during such times as the
Borrower has one or more Subsidiaries.  NOTHING
CONTAINED HEREIN SHALL BE DEEMED OR CONSTRUED TO PERMIT ANY ACT OR OMISSION
WHICH IS PROHIBITED BY THE TERMS OF ANY COLLATERAL DOCUMENT, THE COVENANTS AND
AGREEMENTS CONTAINED HEREIN BEING IN ADDITION TO AND NOT IN SUBSTITUTION FOR
THE COVENANTS AND AGREEMENTS CONTAINED IN THE COLLATERAL DOCUMENTS.

 

            Section 13.22.       Lender’s
and L/C Issuer’s Obligations Several.  The obligations of the Lenders and
L/C Issuer hereunder are several and not joint.  Nothing contained in this Agreement and no
action taken by the Lenders or L/C Issuer pursuant hereto shall be deemed
to constitute the Lenders and L/C Issuer a partnership, association, joint
venture or other entity.

 

            Section 13.23.       Submission
to Jurisdiction; Waiver of Jury Trial.  The Borrower and the Guarantors hereby submit
to the nonexclusive jurisdiction of the United States District Court for the
Northern District of Illinois and of any Illinois State court sitting in the
City of Chicago  for purposes of all legal
proceedings arising out of or relating to this Agreement, the other Loan
Documents or the transactions contemplated hereby or thereby.  The Borrower and the Guarantors irrevocably
waive, to the fullest extent permitted by law, any objection which they may now
or hereafter have to the laying of the venue of any such proceeding brought in
such a court and any claim that any such proceeding brought in such a court has
been brought in an inconvenient forum.  THE
BORROWER, THE GUARANTORS, THE ADMINISTRATIVE AGENT, THE L/C ISSUER AND THE
LENDERS HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED THEREBY.

 

            Section 13.24.       USA
Patriot Act.  Each Lender and
L/C Issuer that is subject to the requirements of the USA Patriot Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) hereby notifies the Borrower that pursuant to the
requirements of the Act, it is required to obtain, verify, and record
information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender
or L/C Issuer to identify the Borrower in accordance with the Act.

 

            Section 13.25.       Confidentiality.  Each of the Administrative Agent, the
Lenders, and the L/C Issuer severally agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its Affiliates’ directors, officers,
employees and agents, including accountants, legal counsel and other advisors
to the extent any such Person has a need to know such Information (it being
understood that the Persons to whom such disclosure is made will first be
informed of the confidential nature of such Information and instructed to keep
such Information confidential), (b) to the extent requested by any
regulatory authority (including any self-regulatory authority, such as the National
Association of Insurance

 

87

 

Commissioners), (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d) to
any other party hereto, (e) in connection with the exercise of any
remedies hereunder or under any other Loan Document or any suit, action or
proceeding relating to this Agreement or any other Loan Document or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to (A) any
assignee of or participant in, or any prospective assignee of or participant
in, any of its rights or obligations under this Agreement or (B) any
actual or prospective counterparty (or its advisors) to any swap or derivative
transaction relating to the Borrower or any Subsidiary and its obligations, (g) with
the prior written consent of the Borrower, (h) to the extent such
Information (A) becomes publicly available other than as a result of a
breach of this Section or (B) becomes available to the Administrative
Agent, any Lender or the L/C Issuer on a non-confidential basis from a
source other than the Borrower or any Subsidiary or any of their directors,
officers, employees or agents, including accountants, legal counsel and other
advisors, (i) to rating agencies if requested or required by such agencies
in connection with a rating relating to the Loans or Commitments hereunder, or (j) to
entities which compile and publish information about the syndicated loan
market, provided that only basic information
about the pricing and structure of the transaction evidenced hereby may be
disclosed pursuant to this subsection (j). 
For purposes of this Section, “Information”
means all information received from the Borrower or any of the Subsidiaries or
from any other Person on behalf of the Borrower or any Subsidiary relating to
the Borrower or any Subsidiary or any of their respective businesses, other
than any such information that is available to the Administrative Agent, any
Lender or the L/C Issuer on a non-confidential basis prior to disclosure
by the Borrower or any of its Subsidiaries or from any other Person on behalf
of the Borrower or any of the Subsidiaries.

 

            Section 13.26.       Equalization
of Loans and Commitments. 
Upon the satisfaction of the conditions precedent set forth in Section 7.2
hereof, all loans and letters of credit outstanding under the Original Credit
Agreement shall remain outstanding as the initial Borrowing of Loans and
Letters of Credit under this Agreement and, in connection therewith, the
Borrower shall be deemed to have prepaid all outstanding Eurodollar Loans on
the Effective Date.  On the Effective
Date, the Lenders each agree to make such purchases and sales of interests in
the outstanding Loans and interests in outstanding Letters of Credit between
themselves so that each Lender is then holding its relevant Percentage of outstanding
Loans and L/C Obligations.  Such
purchases and sales shall be arranged through the Administrative Agent and each
Lender hereby agrees to execute such further instruments and documents, if any,
as the Administrative Agent may reasonably request in connection therewith.

 

            Section 13.27.       Amendment
and Restatement.  This
Agreement amends and restates the Original Credit Agreement and is not intended
to be or operate as a novation or an accord and satisfaction of the Original
Credit Agreement or the Obligations of the Borrower and the Guarantors
evidenced or provided for thereunder. 
Without limiting the generality of the foregoing, the Borrower and the
Guarantors agree that notwithstanding the execution and delivery of this
Agreement and the Security Agreement, the Liens previously granted to the Agent
pursuant to the Collateral Documents shall be and remain in full force and
effect and that any rights and remedies of the Administrative Agent thereunder
and obligations of the Borrower and the Guarantors thereunder shall be and
remain in full force and effect, shall not be affected, impaired or discharged
thereby and shall secure all of the Borrower’s and the Guarantors’

 

88

 

indebtedness, Obligations and liabilities to the
Administrative Agent and the Lenders under the Original Credit Agreement as
amended and restated hereby.  Nothing
herein contained shall in any manner affect or impair the priority of the Liens
created and provided for by the Collateral Documents as to the indebtedness,
Obligations and liabilities that would be secured thereby prior to giving
effect hereto.

 

 

[SIGNATURE PAGES TO FOLLOW]

 

89

 

This Amended and Restated
Credit Agreement is entered into between us for the uses and purposes
hereinabove set forth as of the date first above written.

 

	
  “BORROWER”

  
	
   

  	
   

  
	
  DG FASTCHANNEL,
  INC.

  
	
   

  	
   

  
	
  By

  	
   

  
	
   

  	
  Omar A.
  Choucair, Chief Financial Officer and Secretary

  
	
   

  	
   

  
	
  “GUARANTOR”

  
	
   

  	
   

  
	
  PATHFIRE, INC.

  
	
   

  	
   

  
	
  By

  	
   

  
	
   

  	
  Omar A.
  Choucair, President

  

 

S-1

 

	
  “ADMINISTRATIVE
  AGENT AND L/C ISSUER “

  
	
   

  
	
  BANK OF MONTREAL, as L/C Issuer and 

  as Administrative Agent

  
	
   

  
	
  By

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title

  	
   

  

 

S-2

 

	
  “LENDERS”

  
	
   

  
	
  BMO CAPITAL MARKETS FINANCING INC.

  
	
   

  
	
  By

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title

  	
   

  

 

S-3

 

	
  FIRST TENNESSEE BANK
  NATIONAL 

  ASSOCIATION

  
	
   

  
	
  By

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title

  	
   

  

 

S-4

 

	
  WEBSTER BANK, NATIONAL
  ASSOCIATION

  
	
   

  
	
  By

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title

  	
   

  

 

S-5

 

	
  WACHOVIA BANK, NATIONAL
  ASSOCIATION

  
	
   

  
	
  By

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title

  	
   

  

 

S-6

 

	
  BANK OF THE WEST

  
	
   

  
	
  By

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title

  	
   

  

 

S-7

 

	
  FIRST BANK

  
	
   

  
	
  By

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title

  	
   

  

 

S-8

 

	
  CITIBANK, N.A.

  
	
   

  
	
  By

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title

  	
   

  

 

S-9

 

	
  FIFTH THIRD BANK

  
	
   

  
	
  By

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title

  	
   

  

 

S-10

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