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Exhibit 4.3  

EXECUTION
COPY 

  

   

   

   

    

 
 

REGISTRATION RIGHTS AGREEMENT    
    
    Dated as of February 14, 2006
  by and among    
    
    LINENS 'N THINGS, INC.    
    
    LINENS 'N THINGS CENTER, INC.    
    

THE GUARANTORS LISTED ON SCHEDULE I HERETO    
    
    and    
    
    BEAR, STEARNS & CO. INC.
  UBS SECURITIES LLC    
    

   

   

   

   

   

    

        This Registration Rights Agreement (this "Agreement") is made and entered into as of February 14, 2006, by and among Linens 'n
Things, Inc., a Delaware corporation (the "Company"), Linens 'n Things Center, Inc., a California corporation (the
"Center" and together with the Company, the "Issuers"), the guarantors listed on Schedule I
hereto (the "Guarantors") and Bear, Stearns & Co. Inc. and UBS Securities LLC (each an "Initial
Purchaser" and, together, the "Initial Purchasers"), who have agreed to purchase the Issuers' Senior Secured Floating Rate Notes
due 2014 (the "Initial Notes") pursuant to the Purchase Agreement (as defined below). 

        This
Agreement is made pursuant to the Purchase Agreement, dated February 8, 2006 between Linens Merger Sub Co., a Delaware corporation, and the Initial Purchasers, as amended by
the Joinder Agreement dated as of the date hereof among the Issuers and the Guarantors (together, the "Purchase Agreement"). In order to induce the
Initial Purchasers to purchase the Initial Notes, the Issuers and the Guarantors have agreed to provide the registration rights set forth in this Agreement. The execution and delivery of this
Agreement is a condition to the obligations of the Initial Purchasers set forth in Section 8 of the Purchase Agreement. 

        Capitalized
terms used herein and not otherwise defined shall have the meaning assigned to them in the Indenture, dated as of February 14, 2006 (the
"Indenture"), among the Issuers, the Guarantors and The Bank of New York, as trustee, as amended, relating to the Initial Notes and the Exchange Notes
(as defined below). 

        The
parties hereby agree as follows: 

SECTION 1. DEFINITIONS  

        As used in this Agreement, the following capitalized terms shall have the following meanings: 

        Act:    The Securities Act of 1933, as amended. 

        Additional Interest:    As defined in Section 5 hereof. 

        Affiliate:    Any other Person, directly or indirectly, controlling or controlled by or under direct or
indirect common control with such specified Person. For purposes of this definition, "control," as used with
respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise. For purposes of this definition, the terms "controlling," "controlled by" and "under common control with" have correlative meanings. 

        Broker-Dealer:    Any broker or dealer registered under the Exchange Act. 

        Business Day:    Any day other than a Saturday, a Sunday or a day on which banking institutions in the
State of New York or at a place of payment are authorized by law, regulation or executive order to remain closed. 

        Closing Date:    The date hereof. 

        Commission:    The U.S. Securities and Exchange Commission. 

        Consummate:    An Exchange Offer shall be deemed "Consummated" for purposes of this Agreement upon the
occurrence of (a) the filing and effectiveness under the Act of the Exchange Offer Registration Statement relating to the Exchange Notes to be issued in the Exchange Offer, (b) the
maintenance of such Exchange Offer Registration Statement continuously effective and the keeping of the Exchange Offer open for a period not less than the minimum period required pursuant to
Section 3(b) hereof and (c) the delivery by the Issuers to the Registrar (as defined in the Indenture) under the Indenture of Exchange Notes in the same aggregate principal amount as the
aggregate principal amount of Initial Notes that were tendered by Holders thereof pursuant to the Exchange Offer. 

        Consummation Deadline:    As defined in Section 3(b) hereof. 

 

        Exchange Act:    The Securities Exchange Act of 1934, as amended, or any successor statute, and the
rules and regulations promulgated by the Commission thereunder. 

        Exchange Notes:    The Issuers' Senior Secured Floating Rate Notes due 2014 and the related guarantees
to be issued pursuant to the Indenture (i) in the Exchange Offer or (ii) as contemplated by Section 4 hereof. 

        Exchange Offer:    The exchange and issuance by the Issuers of a principal amount of Exchange Notes
(which shall be registered pursuant to the Exchange Offer Registration Statement) equal to the outstanding principal amount of Initial Notes that are tendered by such Holders in connection with such
exchange and issuance. 

        Exchange Offer Effectiveness Deadline:    As defined in Section 3(a) hereof. 

        Exchange Offer Registration Statement:    The Registration Statement relating to the Exchange Offer,
including the related Prospectus. 

        Filing Deadline:    As defined in Section 3(a) hereof. 

        Holders:    As defined in Section 2 hereof. 

        Indemnified Holder:    As defined in Section 8(a) hereof. 

        indemnified party:    As defined in Section 8(c) hereof. 

        indemnified person:    As defined in Section 8(c) hereof. 

        Person:    Any individual, corporation, partnership, joint venture, association, joint-stock company,
trust, unincorporated organization, limited liability company or government or other entity. 

        Prospectus:    The prospectus included in a Registration Statement at the time such Registration
Statement is declared effective, as amended or supplemented by any prospectus supplement and by all other amendments thereto, including post-effective amendments, and all material
incorporated by reference into such Prospectus. 

        Recommencement Date:    As defined in Section 6(d) hereof. 

        Registration Default:    As defined in Section 5 hereof. 

        Registration Statement:    Any registration statement of the Issuers and the Guarantors relating to
(a) an offering of Exchange Notes pursuant to an Exchange Offer or (b) the registration for resale of Transfer Restricted Securities pursuant to the Shelf Registration Statement, that is
filed pursuant to the provisions of this Agreement, in each case, including the Prospectus included therein and all amendments and supplements thereto (including post-effective amendments)
and all exhibits and material incorporated by reference therein. 

        Rule 144:    Rule 144 promulgated under the Act. 

        Shelf Filing Deadline:    As defined in Section 4(a) hereof. 

        Shelf Registration Statement:    As defined in Section 4 hereof. 

        Shelf Registration Statement Effectiveness Deadline:    As defined in Section 4(a) hereof. 

        Suspension Notice:    As defined in Section 6(d) hereof. 

        TIA:    The Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb), as amended. 

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        Transfer Restricted Securities:    Each Initial Note until the earliest to occur of (a) the date
on which such Initial Note has been exchanged by a Person other than a Broker-Dealer for an Exchange Note in the Exchange Offer, (b) following the exchange by a Broker-Dealer in the Exchange
Offer of an Initial Note for an Exchange Note, the date on which such Exchange Note is sold to a purchaser who receives from such Broker-Dealer on or prior to the date of such sale a copy of the
Prospectus contained in the Exchange Offer Registration Statement, (c) the date on which such Initial Note has been effectively
registered under the Act and disposed of in accordance with the Shelf Registration Statement or (d) the date on which such Initial Note is distributed to the public pursuant to Rule 144. 

SECTION 2. HOLDERS  

        A Person is deemed to be a holder of Transfer Restricted Securities (each, a "Holder") whenever such Person owns
Transfer Restricted Securities. 

SECTION 3. REGISTERED EXCHANGE OFFER  

        (a)   Unless
the Exchange Offer shall not be permitted by applicable law or Commission policy (after the procedures set forth in Section 6(a)(i) below have been
complied with), the Issuers and the Guarantors shall (i) cause the Exchange Offer Registration Statement to be filed with the Commission on or prior to 150 days after the Closing Date
(such 150th day being the "Filing Deadline"), (ii) use all of their respective commercially reasonable efforts to cause such Exchange Offer
Registration Statement to become effective on or prior to 240 days after the Closing Date (such 240th day being the "Exchange Offer Effectiveness
Deadline"), (iii) in connection with the foregoing, use their respective commercially reasonable efforts to (A) file all pre-effective amendments to
such Exchange Offer Registration Statement as may be necessary in order to cause it to become effective, (B) file, if applicable, a post-effective amendment to such Exchange Offer
Registration Statement pursuant to Rule 430A under the Act and (C) cause all necessary filings, if any, in connection with the registration and qualification of the Exchange Notes to be
made under the blue sky laws of such jurisdictions as are necessary to permit Consummation of the Exchange Offer; provided, however, that neither the Issuers nor the Guarantors shall be required to
take any action that would subject them to general service of process or taxation in any jurisdiction where they are not already so subject, and (iv) as promptly as practicable after the
effectiveness of such Exchange Offer Registration Statement, commence and Consummate the Exchange Offer. The 150 and 240 day periods referred to in clause (i) and (ii) of this
Section 3(a) shall not include any period in which the Issuers are pursuing a Commission decision in accordance with the provisions of Section 6(a)(i) hereof. The Exchange Offer
shall be on the appropriate form permitting (i) registration of the Exchange Notes to be offered in exchange for the Transfer Restricted Securities and (ii) resales of Exchange Notes by
Broker-Dealers that tendered into the Exchange Offer Initial Notes that such Broker-Dealer acquired for its own account as a result of market-making activities or other trading activities (other than
Initial Notes acquired directly from the Issuers or any of their Affiliates) as contemplated by Section 3(c) below. 

        (b)   Unless
the Exchange Offer shall not be permitted by applicable law or Commission policy (after the procedures set forth in Section 6(a)(i) below have been
complied with), the Issuers and the Guarantors shall use all of their respective commercially reasonable efforts to cause the Exchange Offer Registration Statement to be effective continuously, and
shall keep the Exchange Offer open for a period of not less than the minimum period required under applicable federal and state securities laws to Consummate the Exchange Offer; provided, however,
that in no event shall such period be less than 20 Business Days. The Issuers and the Guarantors shall cause the Exchange Offer to comply in all material respects with all applicable federal and state
securities laws. No securities other than the Exchange Notes shall be included in the Exchange Offer Registration Statement. The Issuers and the Guarantors shall use all of their respective
commercially reasonable efforts to cause the Exchange Offer to be Consummated on the earliest practicable date after the Exchange Offer Registration 

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Statement
has become effective, but in no event later than 30 Business Days thereafter, or longer, if required by the federal securities laws (such 30th (or longer) Business Day being the
"Consummation Deadline"). 

        (c)   The
Issuers and the Guarantors shall include a "Plan of Distribution" section in the Prospectus contained in the Exchange Offer Registration Statement and indicate
therein that any Broker-Dealer who holds Initial Notes that are Transfer Restricted Securities that were acquired for the account of such Broker-Dealer as a result of market-making activities or other
trading activities (other than Transfer Restricted Securities acquired directly from the Issuers or any Affiliate of the Issuers), may exchange such Transfer Restricted Securities pursuant to the
Exchange Offer. Such "Plan of Distribution" section shall also contain all other information with respect to such sales by such Broker-Dealers that the Commission may require in order to permit such
sales pursuant thereto, but such "Plan of Distribution" shall not name any such Broker-Dealer or disclose the amount of Initial Notes held by any such Broker-Dealer, except to the extent required by
the Commission as a result of a change in policy, rules or regulations after the date of this Agreement. See the Shearman & Sterling
no-action letter (available July 2, 1993). 

        Because
such Broker-Dealer may be deemed to be an "underwriter" within the meaning of the Act and must, therefore, deliver a prospectus meeting the requirements of the Act in connection
with its initial sale of any Exchange Notes received by such Broker-Dealer in the Exchange Offer, the Issuers and Guarantors shall permit the use of the Prospectus contained in the Exchange Offer
Registration Statement by such Broker-Dealer to satisfy such prospectus delivery requirement. To the extent necessary to ensure that the Prospectus contained in the Exchange Offer Registration
Statement is available for sales of Exchange Notes by Broker-Dealers, the Issuers and the Guarantors agree to use all of their respective commercially reasonable efforts to keep the Exchange Offer
Registration Statement continuously effective, supplemented and amended as required by and subject to the provisions of Sections 6(a) and (c) hereof and in conformity with the requirements of
this Agreement, the Act and the policies, rules and regulations of the Commission as announced from time to time, for a period of 180 days from the Consummation Deadline or such shorter period
ending on the date when all Transfer Restricted Securities covered by such Registration Statement have been sold pursuant thereto. The Issuers and the Guarantors shall provide sufficient copies of the
latest version of such Prospectus to such Broker-Dealers, promptly upon reasonable request at any time during such period. 

SECTION 4. SHELF REGISTRATION  

        (a)   Shelf Registration.    If (i) the Issuers and the Guarantors are not (A) required to file the
Exchange Offer Registration Statement or (B) permitted to Consummate the Exchange Offer because the Exchange Offer is not permitted by applicable law or Commission policy (after the Issuers and
the Guarantors have complied with the procedures set forth in Section 6(a)(i) below) or (ii) any Holder of Transfer Restricted Securities notifies the Issuers prior to 20 Business
Days following Consummation of the Exchange Offer that (A) such Holder was prohibited by law or Commission policy from participating in the Exchange Offer, (B) such Holder may not resell
the Exchange Notes acquired by it in the Exchange Offer to the public without delivering a prospectus and the Prospectus contained in the Exchange Offer Registration Statement is not appropriate or
available for such resales by such Holder or (C) such Holder is a Broker-Dealer and holds Initial Notes acquired directly from the Issuers or any of their Affiliates, then the Issuers and the
Guarantors shall: 

        (x)   use
all of their respective commercially reasonable efforts on or prior to 30 days after the earlier of (i) the date as of which the Issuers determine that
the Exchange Offer Registration Statement will not be or cannot be, as the case may be, filed as a result of clause (a)(i) above and (ii) the date on which the Issuers receive the
notice specified in clause (a)(ii) above (such earlier date, the "Shelf Filing Deadline"); provided that such Shelf Filing Deadline shall
not be earlier than 150 days after the date of this Agreement, to file a shelf registration statement pursuant to 

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Rule 415
under the Act (which may be an amendment to the Exchange Offer Registration Statement (the "Shelf Registration Statement")), relating to
all Transfer Restricted Securities of Holders that have provided the information required pursuant to Section 4(b) hereof; and 

        (y)   use
all of their respective commercially reasonable efforts to cause such Shelf Registration Statement to become effective on or prior to 240 days after the Shelf
Filing Deadline (such 240th day, the "Shelf Registration Statement Effectiveness Deadline"). 

        If,
after the Issuers and the Guarantors have filed an Exchange Offer Registration Statement that satisfies the requirements of Section 3(a) above, the Issuers and the Guarantors
are required to file and make effective a Shelf Registration Statement solely because the Exchange Offer is not permitted as a result of the circumstances described under applicable federal law or
Commission policy (i.e., clause (a)(i)(B) above), then the filing of the Exchange Offer Registration Statement shall be deemed to satisfy the requirements of clause (x) above; provided
that, in such event, the Issuers and the Guarantors shall remain obligated to meet the Shelf Registration Statement Effectiveness Deadline. 

        To
the extent necessary to ensure that the Shelf Registration Statement is available for sales of Transfer Restricted Securities by the Holders thereof entitled to the benefit of this
Section 4(a) and the other securities required to be registered therein pursuant to Section 6(b)(ii) hereof, the Issuers and the Guarantors shall use all of their respective
commercially reasonable efforts to keep any Shelf Registration Statement required by this Section 4(a) continuously effective, supplemented and amended as required by and subject to the
provisions of Sections 6(b) and (c) hereof and in conformity in all material respects with the requirements of this Agreement, the Act and the policies, rules and regulations of the Commission
as announced from time to time, for a period of at least two years (as extended pursuant to Section 6(d) hereof) following the Closing Date, or such shorter period as will terminate when all
Transfer Restricted Securities covered by such Shelf Registration Statement have been sold pursuant thereto. 

        (b)   Provision by Holders of Certain Information in Connection with the Shelf Registration Statement.    No Holder
of Transfer Restricted Securities may include any of its Transfer Restricted Securities in any Shelf Registration Statement pursuant to this Agreement unless and until (i) such Holder furnishes
to the Issuers in writing, within 20 days after receipt of a request therefor, the information specified in Item 507 or Item 508 of Regulation S-K, as applicable, of the Act
for use in connection with any Shelf Registration Statement or Prospectus or preliminary prospectus included therein, and (ii) in the case of an underwritten offering, such Holder completes and
executes all questionnaires, powers of attorney, underwriting agreements, lock-up letters and other documents reasonably requested by the Issuers in connection with the terms of such
underwritten offering. Furthermore, no Holder of Transfer Restricted Securities may include any of its Transfer Restricted Securities in any Shelf Registration Statement pursuant to this Agreement
unless and until such Holder furnishes to the Issuers in writing, within 10 Business Days after receipt of a request therefor, such Holder's comments to the disclosure relating to such Holder in the
Shelf Registration Statement. No Holder of Transfer Restricted Securities shall be entitled to Additional Interest pursuant to Section 5 hereof unless and until such Holder shall have provided
all such information. Each selling Holder agrees to promptly furnish additional information required to be disclosed in order to make the information previously furnished to the Issuers by such Holder
not materially misleading. 

SECTION 5. ADDITIONAL INTEREST  

        Subject to the Issuers' rights set forth in Section 6(b)(iii) and 6(d) hereof, if (i) any Registration Statement required by this Agreement
is not filed with the Commission on or prior to the applicable Filing Deadline or Shelf Filing Deadline, as applicable, (ii) any of such Registration Statements is not declared effective by the
Commission on or prior to the Exchange Offer Effectiveness Deadline or the Shelf Registration Statement Effectiveness Deadline, as applicable, (iii) the Exchange Offer has not 

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been
Consummated on or prior to the Consummation Deadline or (iv) any Shelf Registration Statement required by this Agreement is filed and declared effective but thereafter ceases to be usable
for its intended purpose, without being succeeded within 10 Business Days by a post-effective amendment to such Registration Statement that cures such failure and that is itself declared
effective within such 10 Business Day period (each such event referred to in clauses (i) through (iv), a "Registration Default"), then the
Issuers and the Guarantors hereby jointly and severally agree to pay to each Holder of Transfer Restricted Securities additional interest ("Additional
Interest") in an amount equal to $0.05 per week per $1,000 principal amount of Transfer Restricted Securities held by such Holder for the period of time that the Registration
Default continues for the first 90-day period immediately following the occurrence of such Registration Default. The amount of the Additional Interest shall increase by an additional $0.05
per week per $1,000 principal amount of Transfer Restricted Securities with respect to each subsequent 90-day period until no Registration Default is in effect, up to a maximum amount of
Additional Interest for all Registration Defaults of $0.20 per week per $1,000 principal amount of Transfer Restricted Securities; provided that the Issuers and the Guarantors shall in no event be
required to pay Additional Interest for more than one Registration Default at any given time. Notwithstanding anything to the contrary set forth herein, (1) upon filing of the Exchange Offer
Registration Statement (and/or, if applicable, the Shelf Registration Statement), in the case of (i) above, (2) upon the effectiveness of the Exchange Offer Registration Statement
(and/or, if applicable, the Shelf Registration Statement), in the case of (ii) above, (3) upon Consummation of the Exchange Offer, in the case of (iii) above, or (4) upon
the filing of a post-effective amendment to the Registration Statement or an additional Registration Statement that causes the Exchange Offer Registration Statement (and/or, if applicable,
the Shelf Registration Statement) to again be declared effective or made usable in the case of (iv) above, the Additional Interest payable with respect to the Transfer Restricted Securities as
a result of such clause (i), (ii), (iii) or (iv), as applicable, shall cease on the date of such cure and the interest rate on such Transfer Restricted Securities will revert to the
interest rate on such Transfer Restricted Securities prior to the applicable Registration Default. 

        All
accrued Additional Interest shall be paid to the Holders entitled thereto, in the manner provided for the payment of interest in the Indenture, on the next scheduled Interest Payment
Date (as defined in the Indenture), as more fully set forth in the Indenture and the Notes. Notwithstanding the fact that any securities for which Additional Interest are due cease to be Transfer
Restricted Securities, all obligations of the Issuers and the Guarantors to pay Additional Interest with respect to securities shall survive until such time as such obligations with respect to such
securities shall have been satisfied in full. 

        The
amount of Additional Interest payable shall not increase because more than one Registration Default has occurred and is continuing, and a Holder of Initial Notes or Exchange Notes
who is not entitled to the benefits of a Shelf Registration Statement shall not be entitled to Additional Interest with respect to a Registration Default that pertains to such Shelf Registration
Statement. 

        This
Section 5 represents the sole monetary remedy to the Initial Purchasers and the Holders in connection with any failure by the Issuers and the Guarantors to comply with their
obligations under Sections 3 and 4 hereof. Without limiting the remedies available to the Initial Purchasers and the Holders, the Issuers and the Guarantors acknowledge that any failure by the Issuers
or the Guarantors to comply with their obligations under Sections 3 and 4 hereof may result in damages to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that it
will not be possible to measure damages for such injuries precisely and that, in the event of any such failure, the Initial Purchasers or any Holder may obtain such relief as may be required to
specifically enforce the Issuers' and the Guarantors' obligations under Sections 3 and 4 hereof. 

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SECTION 6. REGISTRATION PROCEDURES  

        (a)   Exchange Offer Registration Statement.    In connection with the Exchange Offer, the Issuers and the Guarantors
shall (x) comply with all applicable provisions of Section 6(c) below, (y) use all of their respective commercially reasonable efforts to effect such exchange and to permit the
resale of Exchange Notes by Broker-Dealers that tendered in the Exchange Offer Initial Notes that such Broker-Dealer acquired for its own account as a result of its market-making activities or other
trading activities (other than Initial Notes acquired directly from the Issuers or any of their Affiliates) being sold in accordance with the intended method or methods of distribution thereof set
forth in the Registration Statement, and (z) comply with all of the following provisions: 

        (i)    As
a condition to its participation in the Exchange Offer, each Holder of Transfer Restricted Securities (including, without limitation, any Holder who is a
Broker-Dealer) shall furnish, upon the request of the Issuers, prior to the Consummation of the Exchange Offer, a written representation to the Issuers and the Guarantors (which may be contained in
the letter of transmittal contemplated by the Exchange Offer Registration Statement) to the effect that (A) it is not an Affiliate of the Issuers, (B) it is not engaged in, and does not
intend to engage in, and has no arrangement or understanding with any Person to participate in, a distribution of the Exchange Notes to be issued in the Exchange Offer and (C) it is acquiring
the Exchange Notes in its ordinary course of business. As a condition to its participation in the Exchange Offer each Holder using the Exchange Offer to participate in a distribution of the Exchange
Notes shall acknowledge and agree that, if the resales are of Exchange
Notes obtained by such Holder in exchange for Initial Notes acquired directly from the Issuers or an Affiliate thereof, it (1) could not, under Commission policy as in effect on the date of
this Agreement, rely on the position of the Commission enunciated in Morgan Stanley and Co., Inc. (available June 5, 1991) and  Exxon Capital Holdings
Corporation (available May 13, 1988), as interpreted in the Commission's letter to  Shearman & Sterling dated July 2, 1993, and similar no-action letters
(including, if applicable, any no-action
letter obtained pursuant to clause (i) above), and (2) must comply with the registration and prospectus delivery requirements of the Act in connection with a secondary resale transaction
and that such a secondary resale transaction must be covered by an effective registration statement containing the selling security holder information required by Item 507 or 508, as applicable, of
Regulation S-K. 

        (ii)   Prior
to effectiveness of the Exchange Offer Registration Statement, the Issuers and the Guarantors shall provide a supplemental letter to the Commission
(A) stating that the Issuers and the Guarantors are registering the Exchange Offer in reliance on the position of the Commission enunciated in Exxon Capital Holdings
Corporation (available May 13, 1988), Morgan Stanley and Co., Inc. (available June 5, 1991) as interpreted
in the Commission's letter to Shearman & Sterling dated July 2, 1993 and (B) including a representation that neither the Issuers
has nor the Guarantors have entered into any arrangement or understanding with any Person to distribute the Exchange Notes to be received in the Exchange Offer and that, to the best of the Issuers'
and the Guarantors' information and belief, each Holder participating in the Exchange Offer is acquiring the Exchange Notes in its ordinary course of business and has no arrangement or understanding
with any Person to participate in the distribution of the Exchange Notes received in the Exchange Offer. 

        (b)   Shelf Registration Statement.    In connection with the Shelf Registration Statement, the Issuers and the
Guarantors shall: 

        (i)    comply
with all the provisions of Section 6(c) below and use all of their respective commercially reasonable efforts to effect such registration to permit the
sale of the Transfer Restricted Securities being sold in accordance with the intended method or methods of distribution thereof (as indicated in the information furnished to the Issuers pursuant to
Section 4(b) hereof), 

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and
pursuant thereto the Issuers and the Guarantors will prepare and file with the Commission a Registration Statement relating to the registration on any appropriate form under the Act, which form
shall be available for the sale of the Transfer Restricted Securities in accordance with the intended method or methods of distribution thereof within the time periods and otherwise in accordance with
the provisions hereof, and 

        (ii)   issue,
upon the request of any Holder or purchaser of Initial Notes covered by any Shelf Registration Statement contemplated by this Agreement; provided that such
Holder provides all documentation reasonably requested by the Issuers in connection with such issuance, Exchange Notes having an aggregate principal amount equal to the aggregate principal amount of
Initial Notes sold pursuant to the Shelf Registration Statement and surrendered to the Issuers for cancellation; the
Issuers shall register Exchange Notes on the Shelf Registration Statement for this purpose and issue the Exchange Notes to the purchaser(s) of securities subject to the Shelf Registration Statement in
the names as such purchaser(s) shall designate. 

        (iii)  At
any time after the effectiveness of the Shelf Registration Statement, if Issuers determine in good faith for valid business reasons not to disclose the existence of
or facts surrounding any proposed or pending material corporate transaction or other material development involving the Issuers or the Guarantors, the Issuers may allow the Shelf Registration
Statement to fail to be effective or the Prospectus contained therein to be unusable as a result of such nondisclosure for up to forty-five (45) days in any three-month period or
ninety (90) days in any year during the two-year period of effectiveness required by Section 4 hereof and no Additional Interest shall become payable by the Issuers or the
Guarantors as a result of any such Shelf Registration Statement failing to be effective or any such Prospectus being unusuable pursuant to this Section 6(b)(iii). Upon the occurrence of a
transaction or development described above, the Issuers shall notify the Holders as promptly as practicable and, if requested by such Holders, confirm such notice in writing. 

        (c)   General Provisions.    In connection with any Registration Statement and any related Prospectus required by
this Agreement, the Issuers and the Guarantors shall: 

        (i)    use
their respective commercially reasonable efforts to keep such Registration Statement continuously effective and provide all requisite financial statements for the
period specified in Section 3 or 4 hereof, as applicable. Upon the occurrence of any event that would cause any such Registration Statement or the Prospectus contained therein (A) to
contain an untrue statement of material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading or (B) not to be effective and usable for resale of Transfer Restricted Securities during the period required by this Agreement, the Issuers and the Guarantors
shall file as promptly as practicable an appropriate amendment to such Registration Statement curing such defect, and, if Commission review is required, use all of their respective commercially
reasonable efforts to cause such amendment to be declared effective as soon as practicable; 

        (ii)   prepare
and file with the Commission such amendments and post-effective amendments to the applicable Registration Statement as may be necessary to keep such
Registration Statement effective for the applicable period set forth in Section 3 or 4 hereof, as the case may be; cause the Prospectus to be supplemented by any required Prospectus supplement,
and as so supplemented to be filed pursuant to Rule 424 under the Act, and to comply fully with the applicable provisions of Rules 424, 430A and 462, as applicable, under the Act in a
timely manner; and comply with the provisions of the Act with respect to the disposition of all securities covered by such Registration Statement during the applicable period in accordance with the
intended method or methods of distribution by the sellers thereof set forth in such Registration Statement or supplement to the Prospectus; 

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        (iii)  advise
the Holders as promptly as practicable and, if requested by such Holders, confirm such advice in writing, (A) when the Prospectus or any Prospectus
supplement or post-effective amendment has been filed, and, with respect to any applicable Registration Statement or any post-effective amendment thereto, when the same has
become effective, (B) of any request by the Commission for amendments to the Registration Statement or amendments or supplements to the Prospectus or for additional information relating
thereto, (C) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement under the Act or of the suspension by any state securities commission
of the qualification of the Transfer Restricted Securities for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the preceding purposes, and (D) of the
existence of any fact or the happening of any event that makes any statement of a material fact made in the Registration Statement, the Prospectus, any amendment or supplement thereto or any document
incorporated by reference therein untrue, or that requires the making of any additions to or changes in the Registration Statement in order to make the statements therein not misleading, or that
requires the making of any additions to or changes in the Prospectus in order to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided,
however, that no advice by the Issuers shall be required pursuant to this clause (D) in the event that the Issuers either promptly file a Prospectus supplement to update the Prospectus
or a Form 8-K or other appropriate Exchange Act report that is incorporated by reference into such Registration Statement, which, in either case, contains the requisite information
with respect to such event or facts that results in such Registration Statement no longer containing any untrue statement of material fact or omitting to state a material fact necessary to make the
statements contained therein not misleading). If at any time the Commission shall issue any stop order suspending the effectiveness of the Registration Statement, or any state securities commission or
other regulatory authority shall issue an order suspending the qualification or exemption from qualification of the Transfer Restricted Securities under state securities or blue sky laws, the Issuers
and the Guarantors shall use all of their respective commercially reasonable efforts to obtain the withdrawal or lifting of such order at the earliest practicable time; 

        (iv)  subject
to Section 6(c)(i), if any fact or event contemplated by Section 6(c)(iii)(D) above shall exist or have occurred, prepare a supplement or
post-effective amendment to the Registration Statement or related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter
delivered to the purchasers of Transfer Restricted Securities, the Prospectus, as of its date, will not contain an untrue statement of a material fact or omit to state
any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; 

        (v)   in
the case of a Shelf Registration Statement, furnish to each Holder named in any such Registration Statement in connection with such exchange or sale, if any, before
filing with the Commission, copies of any Registration Statement or any Prospectus included therein or any amendments or supplements to any such Registration Statement or Prospectus (including all
documents incorporated by reference after the initial filing of such Registration Statement), which documents will be subject to the review and comment of such Holders in connection with such sale, if
any, for a period of at least five Business Days, and the Issuers will not file any such Registration Statement or Prospectus or any amendment or supplement to any such Registration Statement or
Prospectus (including all such documents incorporated by reference) to which such Holders shall reasonably object in writing within five Business Days after the receipt thereof. A Holder shall be
deemed to have reasonably objected to such filing if such Registration Statement, amendment, Prospectus or supplement, as applicable, as proposed to be filed, contains an untrue statement of a
material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading or fails to comply with the applicable requirements of the
Act. Notwithstanding the foregoing, the Issuers shall not be required to take 

9

 

any
actions under this Section 6(c)(v) that are not, in the reasonable opinion of counsel for the Issuers, in compliance with applicable law; 

        (vi)  in
the case of a Shelf Registration Statement, promptly prior to the filing of any document that is to be incorporated by reference into a Registration Statement or
Prospectus in connection with such exchange or sale, if any, provide copies of such document to the Holders named in any such Registration Statement, make the Issuers' and the Guarantors'
representatives available for discussion of such document and other customary due diligence matters, subject to negotiation, execution and delivery of customary confidentiality agreements, and include
such information in such document prior to the filing thereof as such Holders may reasonably request; 

        (vii) make
available, at reasonable times, for inspection by the Holders named in any applicable Registration Statement and legal counsel or accountant retained by such
Holders, all financial and other records, pertinent corporate documents of the Issuers and the Guarantors reasonably requested by any such Persons and cause the Issuers' and the Guarantors' officers,
directors and employees to supply all information reasonably requested by any such Holder, counsel or accountant, subject to negotiation, execution and delivery of customary confidentiality
agreements, in connection with such Registration Statement or any post-effective amendment thereto subsequent to the filing thereof and prior to its effectiveness; 

        (viii) in
the case of a Shelf Registration Statement, if requested by any Holders named in any such Registration Statement in connection with such exchange or sale, promptly
include in any Registration Statement or Prospectus, pursuant to a supplement, document incorporated by reference or
post-effective amendment if necessary, such information as such Holders may reasonably request to have included therein, including, without limitation, information relating to the "Plan of
Distribution" of the Transfer Restricted Securities, information with respect to the principal amount of Transfer Restricted Securities being sold, the purchase price being paid therefor and any other
terms of the offering of the Transfer Restricted Securities to be sold in such offering; and make all required filings of such Prospectus supplement or post-effective amendment as soon as
practicable after the Issuers are notified of the matters to be included in such Prospectus supplement or post-effective amendment; 

        (ix)  in
the case of a Shelf Registration Statement, use its commercially reasonable efforts to cause the Transfer Restricted Securities covered by the Registration Statement
to be rated with the appropriate rating agencies, if so requested by the Holders of a majority in aggregate principal amount of Transfer Restricted Securities covered thereby; 

        (x)   in
the case of a Shelf Registration Statement, upon request, furnish to each Holder named in any such Registration Statement in connection with such exchange or sale,
without charge, at least one copy of the Registration Statement, as first filed with the Commission, and of each amendment thereto, (without all documents incorporated by reference therein and
exhibits thereto, unless requested); 

        (xi)  in
the case of a Shelf Registration Statement, upon request, deliver to each Holder named in any such Registration Statement without charge, as many copies of the
Prospectus (including each preliminary prospectus) and any amendment or supplement thereto as such Persons reasonably may request; provided that if no Registration Statement is effective or no
Prospectus is usable in accordance with the provisions of Section 6(b) hereof, the Issuers shall deliver to each Holder named in any such Registration Statement a notice to that effect; the
Issuers and the Guarantors hereby consent to the use (in accordance with law) of the Prospectus and any amendment or supplement thereto by each selling Holder in connection with the offering and the
sale of the Transfer Restricted Securities covered by the Prospectus or any amendment or supplement thereto; 

10

 

        (xii) in
the case of a Shelf Registration Statement, upon the reasonable request of any Holder named in any such Registration Statement, enter into such agreements
(including underwriting agreements containing customary terms) and make such customary representations and warranties and take all such other customary actions in connection therewith in order to
expedite or facilitate the disposition of the Transfer Restricted Securities pursuant to such Registration Statement as may be reasonably requested by any such Holder in connection with any sale or
resale pursuant to such Registration Statement. In such connection, the Issuers and the Guarantors shall: 

        (A)  to
the extent reasonably requested by any Holder named in any such Registration Statement, furnish (or in the case of paragraphs (2) and (3), use all of their
respective commercially reasonable
efforts to cause to be furnished) to each Holder, upon the effectiveness of the Shelf Registration Statement: 

        (1)   a
certificate in customary form, dated such date, signed on behalf of the Issuers and each Guarantor by two officers of each of the Issuers and the Guarantors; 

        (2)   an
opinion in customary form, dated the date of effectiveness of the Shelf Registration Statement, of counsel for the Issuers and the Guarantors; and 

        (3)   a
customary comfort letter, dated the date of effectiveness of the Shelf Registration Statement, from the Issuers' independent accountants, in the customary form and
covering matters of the type customarily covered in comfort letters to underwriters in connection with primary underwritten offerings; and 

        (B)  deliver
such other documents and certificates as may be reasonably requested by the Holders named in any such Registration Statement and as are customarily delivered in
similar offerings to evidence compliance with the matters covered in clause (A) above and with any customary conditions contained in any agreement entered into by the Issuers and the Guarantors
pursuant to this clause (B); 

        (xiii) prior
to any public offering of Transfer Restricted Securities, use all of their respective commercially reasonable efforts to cooperate with the Holders named in the
applicable Registration Statement and their counsel in connection with the registration and qualification of the Transfer Restricted Securities under the state securities or blue sky laws of such
jurisdictions as such Holders may reasonable request and use all of their respective commercially reasonable efforts to do any and all other acts or things necessary or advisable to enable the
disposition in such jurisdictions of the Transfer Restricted Securities covered by the applicable Registration Statement; provided, however, that neither the Issuers nor the Guarantors shall be
required to register or qualify as a foreign corporation where it is not now so qualified or to take any action that would subject it to the service of process in suits or to taxation in any
jurisdiction where it is not now so subject; 

        (xiv) in
connection with any sale of Transfer Restricted Securities that will result in such securities no longer being Transfer Restricted Securities, cooperate with the
Holders to facilitate the timely preparation and delivery of certificates representing Transfer Restricted Securities to be sold and not bearing any restrictive legends; and to enable such Transfer
Restricted Securities to be registered in such denominations and such names as the selling Holders may request at least three Business Days prior to such sale of Transfer Restricted Securities; 

        (xv) use
all of their respective commercially reasonable efforts to cause the disposition of the Transfer Restricted Securities covered by the Registration Statement to be
registered with or approved by such other governmental agencies or authorities as may be necessary to enable the seller or sellers thereof to
consummate the disposition of such Transfer Restricted Securities other than as set forth in Section 6(c)(xiii) hereof; 

11

  

        (xvi) provide
a CUSIP number for all Transfer Restricted Securities not later than the effective date of a Registration Statement covering such Transfer Restricted
Securities and provide the Trustee under the Indenture with any necessary printed certificates for the Transfer Restricted Securities which are in a form eligible for deposit with the Depository Trust
Company; 

        (xvii) otherwise
use all of their respective commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make generally
available to its security holders with regard to any applicable Registration Statement, as soon as practicable, a consolidated earnings statement meeting the requirements of Rule 158 under the
Act (which need not be audited) covering a twelve-month period beginning after the effective date of the Registration Statement (as such term is defined in paragraph (c) of Rule 158
under the Act); and 

        (xviii) cause
the Indenture to be qualified under the TIA not later than the effective date of the first Registration Statement required by this Agreement and, in connection
therewith, cooperate with the Trustee and the Holders to effect such changes to the Indenture as may be required for such Indenture to be so qualified in accordance with the terms of the TIA; and
execute and use all of their respective commercially reasonable efforts to cause the Trustee to execute, all documents that may be required to effect such changes and all other forms and documents
required to be filed with the Commission to enable such Indenture to be so qualified in a timely manner. 

        (d)   Restrictions on Holders.    Each Holder agrees by acquisition of a Transfer Restricted Security that, upon
receipt of the notice referred to in Section 6(b)(iii), Section 6(c)(iii)(C), or any notice from the Issuers of the existence of any fact of the kind described in
Section 6(c)(iii)(D) hereof (in each case, a "Suspension Notice"), such Holder will forthwith discontinue disposition of Transfer Restricted
Securities pursuant to the applicable Registration Statement until (x) such Holder has received copies of the supplemented or amended Prospectus contemplated by
Section 6(c)(iv) hereof, or (y) such Holder is advised in writing by the Issuers that the use of the Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus (in each case, the "Recommencement Date"). Each Holder receiving a Suspension
Notice hereby agrees that it will either (i) destroy any Prospectuses, other than permanent file copies, then in such Holder's possession which have been replaced by the Issuers with more
recently dated Prospectuses or (ii) deliver to the Issuers (at the Issuers' expense) all copies, other than permanent file copies, then in such Holder's possession of the Prospectus covering
such Transfer Restricted Securities that was current at the time of receipt of the Suspension Notice. In the event the Issuers shall give any such notice, the time period regarding the effectiveness
of such Registration Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended by a number of days equal to the number of days in the period from and including the date of
delivery of the Suspension Notice to the Recommencement Date. 

SECTION 7. REGISTRATION EXPENSES  

        (a)   All
expenses incident to the Issuers' and the Guarantors' performance of or compliance with this Agreement (other than any underwriting discounts and commissions) will
be borne by the Issuers, regardless of whether a Registration Statement becomes effective, including without limitation: (i) all registration and filing fees and expenses; (ii) all fees
and expenses of compliance with federal securities and state Blue Sky or securities laws; (iii) all expenses of printing (including printing certificates for the Exchange Notes to be issued in
the Exchange Offer and printing of Prospectuses), messenger and delivery services and telephone; (iv) all fees and disbursements of counsel for the Issuers and the Guarantors; (v) all
application and filing fees in connection with listing the Exchange Notes on a national securities exchange or automated quotation system pursuant to the requirements thereof; and (vi) all fees
and disbursements of independent certified public accountants of the Issuers and the 

12

 

Guarantors
(including the expenses of any special audit and comfort letters required by or incident to such performance). 

        The
Issuers will, in any event, bear its and the Guarantors' internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expenses of any annual audit and the fees and expenses of any Person, including special experts, retained by the Issuers or the Guarantors. 

        (b)   In
connection with any Registration Statement required by this Agreement (including, without limitation, the Exchange Offer Registration Statement and the Shelf
Registration Statement) regardless of whether a Registration Statement becomes effective, the Issuers and the Guarantors will reimburse the Initial Purchasers and the Holders of Transfer Restricted
Securities who are tendering Initial Notes in the Exchange Offer and/or selling or reselling Initial Notes or Exchange Notes pursuant to the "Plan of Distribution" contained in the Exchange Offer
Registration Statement or registered pursuant to the Shelf Registration Statement, as applicable, for the reasonable fees and disbursements of not more than one counsel, who shall be Simpson
Thacher & Bartlett LLP, unless another firm shall be chosen by the Holders of a majority in principal amount of the Transfer Restricted Securities for whose benefit such Registration Statement
is being prepared; provided that the Issuers and the Guarantors' reimbursement obligation with respect to such fees and disbursements shall not exceed $25,000. 

SECTION 8. INDEMNIFICATION  

        (a)   The
Issuers and the Guarantors agree, jointly and severally, to indemnify and hold harmless each Holder, its directors, officers and each Person, if any, who controls
such Holder (within the meaning of Section 15 of the Act or Section 20 of the Exchange Act) (collectively, an "Indemnified Holder"), from
and against any and all losses, claims, damages, liabilities, judgments, and expenses (including without limitation, any reasonable legal fees or other expenses reasonably incurred in connection with
investigating, preparing or defending any matter, including any action that could give rise to any such losses, claims, damages, liabilities or judgments) to which they or any of them may become
subject under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities, judgments and expenses are caused by any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement, preliminary prospectus or Prospectus (or any amendment or supplement thereto) provided by the Issuers to any Holder or any prospective purchaser
of Exchange Notes or registered Initial Notes, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, except insofar as such losses, claims, damages, liabilities or judgments are caused by an untrue statement or omission or alleged untrue statement or omission that is based upon
information relating to any of the Holders furnished in writing to the Issuers by any of the Holders. 

        (b)   Each
Holder of Transfer Restricted Securities agrees, severally and not jointly, to indemnify and hold harmless the Issuers and the Guarantors, and their respective
directors and officers, and each person, if any, who controls (within the meaning of Section 15 of the Act or Section 20 of the Exchange Act) the Issuers, or the Guarantors to the same
extent as the foregoing indemnity from the Issuers and the Guarantors set forth in section (a) above to each of the Indemnified Holders, but only with reference to information relating to such
Indemnified Holder furnished in writing to the Issuers by such Indemnified Holder expressly for use in any Registration Statement. In no event shall any Indemnified Holder, its directors, officers or
any Person who controls such Holder be liable or responsible for any amount in excess of the amount by which the total amount received by such Indemnified Holder with respect to its sale of Transfer
Restricted Securities pursuant to a Registration Statement exceeds (i) the amount paid by such Indemnified Holder for such Transfer Restricted Securities and (ii) the amount of any
damages that such Indemnified Holder, its directors, officers or any Person who controls such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission. 

13

 

        (c)   In
case any action shall be commenced involving any person in respect of which indemnity may be sought pursuant to Section 8(a) or 8(b) (the
"indemnified party"), the indemnified party shall promptly notify the person against whom such indemnity may be sought (the
"indemnifying person") in writing and the indemnifying party shall assume the defense of such action, including the employment of counsel reasonably
satisfactory to the indemnified party and the payment of all fees and expenses of such counsel, as incurred (except that in the case of any action in respect of which indemnity may be sought pursuant
to both Sections 8(a) and 8(b), an Indemnified Holder shall not be required to assume the defense of such action pursuant to this Section 8(c), but may employ separate counsel and participate
in the defense thereof, but the fees and expenses of such counsel, except as provided below, shall be at the expense of the Indemnified Holder). Any indemnified party shall have the right to employ
separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the indemnified party unless (i) the employment
of such counsel shall have been specifically authorized in writing by the indemnifying party, (ii) the indemnifying party shall have failed to assume the defense of such action or employ
counsel reasonably satisfactory to the indemnified party within a reasonable time after notice of commencement of the action or (iii) the named parties to any such action (including any
impleaded parties) include both the indemnified party and the indemnifying party, and the indemnified party shall have been advised by such counsel that there may be one or more legal defenses
available to it which are different from or additional to those available to the indemnifying party (in which case the indemnifying party shall not have the right to assume the defense of such action
on behalf of the indemnified party). In any such case, the indemnifying party shall not, in connection with any one action or separate but substantially similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for all
indemnified parties and all such fees and expenses shall be reimbursed as they are incurred. Such firm shall be designated in writing by a majority of the Indemnified Holders, in the case of the
parties indemnified pursuant to Section 8(a), and by the Issuers and Guarantors, in the case of parties indemnified pursuant to Section 8(b). The indemnifying party shall indemnify and
hold harmless the indemnified party from and against any and all losses, claims, damages, liabilities and judgments by reason of any settlement of any action (i) effected with its written
consent or (ii) effected without its written consent if (A) such settlement is entered into more than 60 days after receipt by the indemnifying party of a request from the
indemnified party for reimbursement for the fees and expenses of counsel (in any case where such fees and expenses are at the expense of the indemnifying party), (B) the indemnifying party
shall not have reimbursed the indemnified party in accordance with such request or disputed in good faith the indemnified party's entitlement to such reimbursement prior to the date of such
settlement, and (C) such indemnified party shall have given the indemnifying party at least 30 days prior notice of its intention to settle. No indemnifying party shall, without the
prior written consent of the indemnified party, effect any settlement or compromise of, or consent to the entry of judgment with respect to, any pending or threatened action in respect of which the
indemnified party is or could have been a party and indemnity or contribution may be or could have been sought hereunder by the indemnified party, unless such settlement, compromise or judgment
(i) includes an unconditional release of the indemnified party from all liability on claims that are or could have been the subject matter of such action and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act, by or on behalf of the indemnified party. 

        (d)   To
the extent that the indemnification provided for in this Section 8 is unavailable to an indemnified party in respect of any losses, claims, damages,
liabilities or judgments referred to therein, then each indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as
a result of such losses, claims, damages, liabilities or judgments (i) in such proportion as is appropriate to reflect the relative benefits received by the Issuers and the Guarantors, on the
one hand, and the Indemnified Holders, on the other hand, from 

14

 

their
sale of Transfer Restricted Securities or (ii) if the allocation provided by clause 8(d)(i) above is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause 8(d)(i) above but also the relative fault of the Issuers and the Guarantors, on the one hand, and of the Indemnified Holders,
on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or judgments, as well as any other relevant equitable considerations. The
relative fault of the Issuers and the Guarantors, on the one hand, and of the Indemnified Holders, on the other hand, shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Issuers or the Guarantors, on the one hand, or by the
Indemnified Holder, on the other hand, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable
by a party as a result of the losses, claims, damages, liabilities and judgments referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any claim or action. 

        The
Issuers, the Guarantors and each Holder agree that it would not be just and equitable if contribution pursuant to this Section 8(d) were determined by pro rata allocation
(even if the Holders were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately
preceding paragraph. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities or judgments referred to in the immediately preceding paragraph shall be
deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any matter,
including any action that could have given rise to such losses, claims, damages, liabilities or judgments. Notwithstanding the provisions of this Section 8, no Holder, or its related
Indemnified Holders, its directors, its officers or any Person, if any, who controls such Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the
total received by such Holder with respect to the sale of Transfer Restricted Securities pursuant to a Registration Statement exceeds (i) the amount paid by such Holder for such Transfer
Restricted Securities and (ii) the amount of any damages which such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The Holders' obligations to contribute pursuant to this Section 8(d) are several in proportion to the respective principal amount of Transfer Restricted Securities
held by each Holder hereunder and not joint. 

SECTION 9. RULE 144A AND RULE 144  

        The Issuers and the Guarantors agrees with each Holder, for so long as any Transfer Restricted Securities remain outstanding and during any period in which the
Issuers or the Guarantors (i) is not subject to Section 13 or 15(d) of the Exchange Act, to make available, upon request of any Holder, to such Holder or beneficial owner of Transfer
Restricted Securities in connection with any sale thereof and any prospective purchaser of such Transfer Restricted Securities designated by such Holder or beneficial owner, the information required
by Rule 144A(d)(4) under the Act in order to permit resales of such Transfer Restricted Securities pursuant to Rule 144A under the Act, and (ii) is subject to Section 13 or
15(d) of the Exchange Act, to make all filings required thereby in a timely manner in order to permit resales of such Transfer Restricted Securities pursuant to Rule 144. 

SECTION 10. SELECTION OF UNDERWRITERS  

        The Holders of Transfer Restricted Securities covered by the Shelf Registration Statement who desire to do so may sell such Transfer Restricted Securities in an
underwritten offering. In any such 

15

 

underwritten
offering, the investment banker(s) and managing underwriter(s) that will administer such offering will be selected by the Holders of a majority in aggregate principal amount of the
Transfer Restricted Securities included in such offering; provided, however, that such investment banker(s) and managing underwriter(s) must be
reasonably satisfactory to the Issuers. 

SECTION 11. MISCELLANEOUS  

        (a)   Remedies.    The Issuers and the Guarantors acknowledge and agree that any failure by the Issuers and/or the
Guarantors to comply with their respective obligations under Sections 3 and 4 hereof may result in material irreparable injury to the Initial Purchasers or the Holders for which there is no
adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of any such failure, the Initial Purchasers or any Holder may obtain such
relief as may be required to specifically enforce the Issuers' and the Guarantors' obligations under Sections 3 and 4 hereof. The Issuers and the Guarantors further agree to waive the defense in any
action for specific performance that a remedy at law would be adequate. 

        (b)   No Inconsistent Agreements.    Neither the Issuers nor the Guarantors will, on or after the date of this
Agreement, enter into any agreement with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof.
Neither the Issuers have nor the Guarantors have previously entered into, nor is currently party to, any agreement granting any registration rights with respect to its securities to any Person that
would require such securities to be included in any Registration Statement filed hereunder. The rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to the holders of the Issuers' and the Guarantors' securities under any agreement in effect on the date hereof. 

        (c)   Amendments and Waivers.    The provisions of this Agreement may not be amended, modified or supplemented, and
waivers or consents to or departures from the provisions hereof may not be given unless the Issuers have obtained the written consent of Holders of a majority of the outstanding principal amount of
Transfer Restricted Securities (excluding Transfer Restricted Securities held by the Issuers or their Affiliates). Notwithstanding the foregoing, a waiver or consent to departure from the provisions
hereof that relates exclusively to the rights of Holders whose Transfer Restricted Securities are being tendered pursuant to the Exchange Offer, and that does not affect directly or indirectly the
rights of other Holders whose Transfer Restricted Securities are not being tendered pursuant to such Exchange Offer, may be given by the Holders of a majority of the outstanding principal amount of
Transfer Restricted Securities subject to such Exchange Offer. 

        (d)   Additional Guarantors.    The Issuers shall cause any of its Restricted Subsidiaries (as defined in the
Indenture) that becomes, prior to the consummation of the Exchange Offer, a Guarantor in accordance with the terms and provisions of the Indenture to become a party to this Agreement as a Guarantor.
Notwithstanding the generality of the foregoing statement, any entity that becomes a Guarantor upon the consummation of the Acquisition (as defined in the Purchase Agreement) shall become a party to
this Agreement as a Guarantor. It is understood and agreed that if, prior to the Exchange Offer, a Guarantor that has executed this Agreement is no longer a Guarantor under the Indenture pursuant to
and in accordance with the provisions of the Indenture, such Guarantor shall no longer be a Guarantor for purposes of this Agreement. 

        (e)   Third Party Beneficiary.    The Holders shall be third party beneficiaries to the agreements made hereunder
between the Issuers and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the extent they may deem such
enforcement necessary or advisable to protect its rights or the rights of Holders hereunder. 

        By
acquiring Transfer Restricted Securities, a Holder will be deemed to have agreed to indemnify and hold harmless the Issuers, the Guarantors, and their respective directors and
officers, and each 

16

 

person,
if any, who controls (within the meaning of Section 15 of the Act or Section 20 of the Exchange Act) to the same extent as the indemnity from the Issuers and the Guarantors set
forth in Section 8(a) hereof, but only with reference to information relating to such Holder and provided in writing by such Holder for inclusion in any Shelf Registration Statement. In no
event shall any such Holder be liable or responsible for any amount in excess of the amount by which such Holder with respect to its sale of Transfer Restricted Securities pursuant to a Shelf
Registration Statement exceeds (i) the amount paid by such Holder for such Transfer Restricted Securities and (ii) the amount of any damages that such Holder, its directors, officers or
any Person who controls such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. 

        (f)    Notices.    All notices and other communications provided for or permitted hereunder shall be made in writing
by hand-delivery, first-class mail (registered or certified, return receipt requested), facsimile or air courier guaranteeing overnight delivery: 

        (i)    if
to a Holder, at the address set forth on the records of the Registrar under the Indenture, with a copy to the Registrar under the Indenture; and 

        (ii)   if
to the Issuers or the Guarantors: 

Linens
'n Things, Inc.

6 Brighton Road

Clifton, New Jersey 07012

Facsimile No.: (973) 815-2990

Attention: Chief Financial Officer 

With
a copy to: 

Morgan,
Lewis & Bockius LLP

101 Park Avenue

New York, NY 10178

Facsimile No.: (212) 309-6001

Attention: Robert Robison 

        All
such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when receipt acknowledged, if telecopied; and on the next Business Day, if timely delivered to an air courier guaranteeing overnight delivery. 

        Copies
of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee at the address specified in the Indenture. 

        (g)   Successors and Assigns.    This Agreement shall inure to the benefit of and be binding upon the successors and
assigns of each of the parties, including without limitation and without the need for an express assignment, subsequent Holders of Transfer Restricted Securities; provided that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Transfer Restricted Securities in violation of the terms hereof or of the Purchase Agreement or the Indenture. If any transferee of
any Holder shall acquire Transfer Restricted Securities in any manner, whether by operation of law or otherwise, such Transfer Restricted Securities shall be held subject to all of the terms of this
Agreement, and by taking and holding such Transfer Restricted Securities such Person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this
Agreement, including the restrictions on resale set forth in this Agreement and, if applicable, the Purchase Agreement, and such Person shall be entitled to receive the benefits hereof. 

17

 

        (h)   Counterparts.    This Agreement may be executed in any number of counterparts and by the parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 

        (i)    Headings.    The headings in this Agreement are for convenience of reference only and shall not limit or
otherwise affect the meaning hereof. 

        (j)    Governing Law.    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, WITHOUT REGARD TO THE CONFLICT OF LAW RULES THEREOF. TIME IS OF THE ESSENCE IN THIS AGREEMENT. 

        (k)   Severability.    In the event that any one or more of the provisions contained herein, or the application
thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained
herein shall not be affected or impaired thereby. 

        (l)    Entire Agreement.    This Agreement is intended by the parties as a final expression of their agreement and
intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein with respect to the registration rights granted with respect to the Transfer Restricted Securities. This Agreement
supersedes all prior agreements and understandings between the parties with respect to such subject matter. 

(Signature
Pages Follow) 

18

 

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

	 	 	LINENS 'N THINGS, INC.
	

 	
 	

By:	

    
 Name:

Title:
	

 	
 	
LINENS 'N THINGS CENTER, INC.
	

 	
 	

By:	

    
 Name:

Title:
	

 	
 	
LINENS HOLDING CO.
	

 	
 	

By:	

    
 Name:

Title:
	

 	
 	
BLOOMINGTON, MN., L.T., INC.
	

 	
 	

By:	

    
 Name:

Title:
	

 	
 	
VENDOR FINANCE, LLC
	

 	
 	

By:	

    
 Name:

Title:
	

 	
 	
LNT, INC.
	

 	
 	

By:	

    
 Name:

Title:
	 	 	 	 

19

 

	

 	
 	
LNT SERVICES, INC.
	

 	
 	

By:	

    
 Name:

Title:
	

 	
 	
LNT LEASING II, INC.
	

 	
 	

By:	

    
 Name:

Title:
	

 	
 	
LNT WEST, INC.
	

 	
 	

By:	

    
 Name:

Title:
	

 	
 	
LNT VIRGINIA LLC
	

 	
 	

By:	

    
 Name:

Title:
	

 	
 	
LNT LEASING III, LLC
	

 	
 	

By:	

    
 Name:

Title:
	

 	
 	
LNT MERCHANDISING COMPANY LLC
	

 	
 	

By:	

    
 Name:

Title:
	

 	
 	
CITADEL LNT, LLC
	

 	
 	

By:	

    
 Name:

Title:

20

 

	BEAR, STEARNS & CO. INC.	 
	

By:	

    
 Name:

Title:	

 
	
UBS SECURITIES LLC	

 
	

By:	

    
 Name:

Title:	

 
	

By:	

    
 Name:

Title:	

 

21

 
 

SCHEDULE I    
    
    Guarantors    
    

	1.
	Linens
Holding Co., a Delaware corporation

	2.
	Bloomington,
MN., L.T., Inc., a Minnesota corporation

	3.
	Vendor
Finance, LLC, a Delaware limited liability company

	4.
	LNT, Inc.,
a New Jersey corporation

	5.
	LNT
Services, Inc., a Delaware corporation

	6.
	LNT
Leasing II, LLC, a Delaware limited liability company

	7.
	LNT
West, Inc., a Delaware corporation

	8.
	LNT
Virginia LLC, a Virginia limited liability company

	9.
	LNT
Merchandising Company LLC, a Delaware limited liability company

	10.
	LNT
Leasing III, LLC, a Delaware limited liability company

	11.
	Citadel
LNT, LLC, a Delaware limited liability company 

QuickLinks

REGISTRATION RIGHTS AGREEMENT Dated as of February 14, 2006 by and among LINENS 'N THINGS, INC. LINENS 'N THINGS CENTER, INC. THE GUARANTORS LISTED ON SCHEDULE I HERETO and BEAR, STEARNS & CO. INC. UBS
SECURITIES LLC

SCHEDULE I GuarantorsQuickLinks
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Exhibit 10.1  

EXECUTION COPY  

$600,000,000.00  

 CREDIT AGREEMENT  

 dated as of February 14, 2006,  

 among  

 LINENS 'N THINGS, INC.

and

LINENS 'N THINGS CENTER, INC.,

as US Borrowers,  

 LINENS 'N THINGS CANADA CORP.,

as Canadian Borrower,  

 LINENS HOLDING CO.

and

THE OTHER GUARANTORS PARTY HERETO,

as Guarantors,  

 THE LENDERS PARTY HERETO,  

 UBS SECURITIES LLC,

as Arranger and Bookmanager,  

 UBS AG, STAMFORD BRANCH,

as an Issuing Bank, US Administrative Agent and US Co-Collateral Agent,  

 UBS AG CANADA BRANCH,

as Canadian Co-Collateral Agent,  

 WACHOVIA BANK, NATIONAL ASSOCIATION,

as US Co-Collateral Agent, Co-Documentation Agent and an Issuing Bank,  

 WACHOVIA CAPITAL FINANCE CORPORATION (CANADA),

as Canadian Administrative Agent, Canadian Co-Collateral Agent and Canadian

Swingline Lender,  

 UBS LOAN FINANCE LLC,

as US Swingline Lender,  

 UBS SECURITIES LLC and BEAR, STEARNS & CO. INC.,

as Joint Book-Runners,  

 BEAR, STEARNS & CO. INC.,

as Co-Syndication Agent,  

 WELLS FARGO RETAIL FINANCE, LLC,

as Co-Documentation Agent,  

 and  

 THE CIT GROUP/BUSINESS CREDIT, INC.,

as Co-Syndication Agent  

  

 
 

TABLE OF CONTENTS    
    

	 
	 
	 	Page

	ARTICLE I. DEFINITIONS	 	2
	 	
 Section 1.01.	

Defined Terms	
 	

2
	 	Section 1.02.	Classification of Loans and Borrowings	 	43
	 	Section 1.03.	Terms Generally	 	44
	 	Section 1.04.	Accounting Terms; GAAP	 	44
	 	Section 1.05.	Resolution of Drafting Ambiguities	 	44
	

ARTICLE II. THE CREDITS	
 	

44
	 	
 Section 2.01.	

Commitments	
 	

44
	 	Section 2.02.	Loans.	 	45
	 	Section 2.03.	Borrowing Procedure	 	46
	 	Section 2.04.	Evidence of Debt; Repayment of Loans.	 	50
	 	Section 2.05.	Fees.	 	51
	 	Section 2.06.	Interest on Loans	 	52
	 	Section 2.07.	Termination and Reduction of Commitments	 	53
	 	Section 2.08.	Interest Elections	 	53
	 	Section 2.09.	[Intentionally Deleted].	 	55
	 	Section 2.10.	Optional and Mandatory Prepayments of Loans	 	55
	 	Section 2.11.	Alternate Rate of Interest	 	58
	 	Section 2.12.	Yield Protection	 	59
	 	Section 2.13.	Breakage Payments	 	60
	 	Section 2.14.	Payments Generally; Pro Rata Treatment; Sharing of Setoffs	 	61
	 	Section 2.15.	Taxes	 	62
	 	Section 2.16.	Mitigation Obligations; Replacement of Lenders	 	66
	 	Section 2.17.	Swingline Loans	 	67
	 	Section 2.18.	Letters of Credit	 	69
	 	Section 2.19.	Increase in Commitments	 	75
	 	Section 2.20.	Determination of Borrowing Base.	 	76
	 	Section 2.21.	Determination of Canadian Borrowing Base.	 	79
	 	Section 2.22.	Collection Allocation Mechanism	 	82
	

ARTICLE III. REPRESENTATIONS AND WARRANTIES	
 	

84
	 	
 Section 3.01.	

Organization; Powers	
 	

84
	 	Section 3.02.	Authorization; Enforceability	 	84
	 	Section 3.03.	No Conflicts	 	84
	 	Section 3.04.	Financial Statements; Projections	 	85
	 	Section 3.05.	Properties	 	85
	 	Section 3.06.	Intellectual Property	 	86
	 	Section 3.07.	Equity Interests and Subsidiaries	 	86
	 	Section 3.08.	Litigation; Compliance with Laws	 	87
	 	Section 3.09.	Agreements	 	87
	 	Section 3.10.	Federal Reserve Regulations	 	87
	 	Section 3.11.	Investment Company Act; Public Utility Holding Company Act	 	88
	 	Section 3.12.	Use of Proceeds	 	88
	 	Section 3.13.	Taxes	 	88
	 	Section 3.14.	No Material Misstatements	 	88
	 	Section 3.15.	Labor Matters	 	88
	 	 	 	 

i

 

	 	Section 3.16.	Solvency	 	89
	 	Section 3.17.	Employee Benefit Plans	 	89
	 	Section 3.18.	Environmental Matters	 	90
	 	Section 3.19.	Insurance	 	91
	 	Section 3.20.	Security Documents	 	91
	 	Section 3.21.	Acquisition Documents	 	92
	 	Section 3.22.	Anti-Terrorism Law	 	93
	 	Section 3.23.	[Intentionally Deleted]	 	93
	 	Section 3.24.	Executive Offices; Location of Material Inventory	 	93
	 	Section 3.25.	Accuracy of Borrowing Base	 	93
	 	Section 3.26.	Post-Audit Asset Dispositions	 	93
	 	Section 3.27.	Common Enterprise	 	94
	

ARTICLE IV. CONDITIONS TO CREDIT EXTENSIONS	
 	

94
	 	
 Section 4.01.	

Conditions to Initial Credit Extension	
 	

94
	 	Section 4.02.	Conditions to All Credit Extensions	 	99
	

ARTICLE V. AFFIRMATIVE COVENANTS	
 	

100
	 	
 Section 5.01.	

Financial Statements, Reports, etc.	
 	

100
	 	Section 5.02.	Litigation and Other Notices	 	103
	 	Section 5.03.	Existence; Businesses and Properties	 	103
	 	Section 5.04.	Insurance	 	104
	 	Section 5.05.	Obligations and Taxes	 	105
	 	Section 5.06.	Employee Benefits	 	105
	 	Section 5.07.	Maintaining Records; Access to Properties and Inspections; Annual Meetings	 	106
	 	Section 5.08.	Use of Proceeds	 	106
	 	Section 5.09.	Compliance with Environmental Laws; Environmental Reports	 	106
	 	Section 5.10.	[Intentionally Deleted]	 	107
	 	Section 5.11.	Additional Collateral; Additional Guarantors	 	107
	 	Section 5.12.	Security Interests; Further Assurances	 	108
	 	Section 5.13.	Information Regarding Collateral	 	109
	 	Section 5.14.	Post-Closing Collateral Matters	 	109
	 	Section 5.15.	Affirmative Covenants with Respect to Leases	 	109
	 	Section 5.16.	Interest Rate Agreements	 	109
	

ARTICLE VI. NEGATIVE COVENANTS	
 	

110
	 	
 Section 6.01.	

Indebtedness	
 	

110
	 	Section 6.02.	Liens	 	111
	 	Section 6.03.	Sale and Leaseback Transactions	 	113
	 	Section 6.04.	Investment, Loan and Advances	 	113
	 	Section 6.05.	Mergers and Consolidations	 	114
	 	Section 6.06.	Asset Sales	 	115
	 	Section 6.07.	Acquisitions	 	115
	 	Section 6.08.	Dividends	 	116
	 	Section 6.09.	Transactions with Affiliates	 	116
	 	Section 6.10.	Financial Covenants	 	118
	 	Section 6.11.	Prepayments of Other Indebtedness; Modifications of Organizational Documents and Other Documents, etc.	 	118
	 	Section 6.12.	Limitation on Certain Restrictions on Subsidiaries	 	119
	 	 	 	 

ii

 

	 	Section 6.13.	Limitation on Issuance of Capital Stock	 	119
	 	Section 6.14.	Limitation on Creation of Subsidiaries	 	120
	 	Section 6.15.	Business	 	120
	 	Section 6.16.	Limitation on Accounting Changes	 	120
	 	Section 6.17.	Fiscal Year	 	120
	 	Section 6.18.	No Further Negative Pledge	 	120
	 	Section 6.19.	Anti-Terrorism Law; Anti-Money Laundering	 	121
	 	Section 6.20.	Embargoed Person	 	121
	

ARTICLE VII. GUARANTEE	
 	

121
	 	
 Section 7.01.	

The Guarantee	
 	

121
	 	Section 7.02.	Obligations Unconditional	 	122
	 	Section 7.03.	Reinstatement	 	123
	 	Section 7.04.	Subrogation; Subordination	 	123
	 	Section 7.05.	Remedies	 	123
	 	Section 7.06.	Instrument for the Payment of Money	 	123
	 	Section 7.07.	Continuing Guarantee	 	123
	 	Section 7.08.	General Limitation on Guarantee Obligations	 	123
	 	Section 7.09.	Release of Guarantors	 	124
	

ARTICLE VIII. EVENTS OF DEFAULT	
 	

124
	 	
 Section 8.01.	

Events of Default	
 	

124
	 	Section 8.02.	Rescission	 	126
	 	Section 8.03.	Application of Proceeds	 	127
	

ARTICLE IX. COLLATERAL ACCOUNT; APPLICATION OF COLLATERAL PROCEEDS	
 	

127
	 	
 Section 9.01.	

Collateral Accounts	
 	

128
	 	Section 9.02.	Accounts; Cash Management	 	128
	 	Section 9.03.	Inventory	 	131
	 	Section 9.04.	Borrowing Base-Related Reports	 	132
	 	Section 9.05.	Rescission of Activation Notice	 	133
	

ARTICLE X. THE ADMINISTRATIVE AGENTS AND THE COLLATERAL AGENTS	
 	

133
	 	
 Section 10.01.	

Appointment and Authority	
 	

133
	 	Section 10.02.	Rights as a Lender	 	134
	 	Section 10.03.	Exculpatory Provisions.	 	134
	 	Section 10.04.	Reliance by Agent	 	135
	 	Section 10.05.	Delegation of Duties	 	135
	 	Section 10.06.	Resignation of Agent	 	135
	 	Section 10.07.	Non-Reliance on Agent and Other Lenders	 	136
	 	Section 10.08.	No Other Duties, etc	 	136
	 	Section 10.09.	Indemnification	 	136
	 	Section 10.10.	Overadvances	 	137
	 	Section 10.11.	Concerning the Collateral and the Related Loan Documents	 	137
	 	Section 10.12.	Field Audit, Examination Reports and Other Reports	 	137
	

ARTICLE XI. MISCELLANEOUS	
 	

138
	 	
 Section 11.01.	

Notices	
 	

138
	 	Section 11.02.	Waivers; Amendment	 	141
	 	Section 11.03.	Expenses; Indemnity; Damage Waiver	 	144
	 	 	 	 

iii

 

	 	Section 11.04.	Successors and Assigns	 	146
	 	Section 11.05.	Survival of Agreement	 	148
	 	Section 11.06.	Counterparts; Integration; Effectiveness; Electronic Execution	 	148
	 	Section 11.07.	Severability	 	149
	 	Section 11.08.	Right of Setoff	 	149
	 	Section 11.09.	Governing Law; Jurisdiction; Consent to Service of Process	 	149
	 	Section 11.10.	Waiver of Jury Trial	 	150
	 	Section 11.11.	Headings	 	150
	 	Section 11.12.	Treatment of Certain Information; Confidentiality	 	150
	 	Section 11.13.	USA PATRIOT Act Notice	 	151
	 	Section 11.14.	Interest Rate Limitation	 	151
	 	Section 11.15.	Lender Addendum	 	151
	 	Section 11.16.	Obligations Absolute	 	151
	 	Section 11.17.	Dollar Equivalent Calculations	 	152
	 	Section 11.18.	Judgment Currency	 	152
	 	Section 11.19.	Special Provisions Relating to Currencies Other Than Dollars	 	153
	 	Section 11.20.	Intercreditor Agreement	 	153

iv

 

	ANNEXES	 
	Annex I	Applicable Margin
	
SCHEDULES
	

Schedule 1.01(a)	

Refinancing Indebtedness to Be Repaid
	Schedule 1.01(b)	Subsidiary Guarantors
	Schedule 1.01(c)	Existing Letters of Credit
	Schedule 1.01(d)	Existing Lender Letters of Credit
	Schedule 3.03	Governmental Approvals; Compliance with Laws
	Schedule 3.09	Material Agreements
	Schedule 3.19	Insurance
	Schedule 3.21	Acquisition Documents
	Schedule 3.24	Location of Material Inventory
	Schedule 4.01(g)	Local Counsel
	Schedule 5.14	Post-Closing Matters
	Schedule 6.01(b)	Existing Indebtedness
	Schedule 6.02(c)	Existing Liens
	Schedule 6.04(b)	Existing Investments
	Schedule 9.02	Accounts and Lockboxes
	
EXHIBITS
	

Exhibit A	

Form of Administrative Questionnaire
	Exhibit B	Form of Assignment and Assumption
	Exhibit C	Form of Borrowing Request
	Exhibit D	Form of Compliance Certificate
	Exhibit E	Form of Interest Election Request
	Exhibit F	Form of Joinder Agreement
	Exhibit G	Form of Landlord Access Agreement
	Exhibit H	Form of LC Request
	Exhibit I	Form of Lender Addendum
	Exhibit J	[Intentionally Deleted]
	Exhibit K-1	Form of Revolving Note
	Exhibit K-2	Form of Canadian Revolving Note
	Exhibit K-3	Form of US Swingline Note
	Exhibit K-4	Form of Canadian Swingline Note
	Exhibit K-5	Form of Discount Note
	Exhibit L-1	Form of Perfection Certificate
	Exhibit L-2	Form of Perfection Certificate Supplement
	Exhibit M-1	Form of US Security Agreement
	Exhibit M-2	Form of Canadian Security Agreement
	Exhibit N	Form of Opinion of Company Counsel
	Exhibit O	Form of Solvency Certificate
	Exhibit P	Form of Intercompany Note
	Exhibit Q	Form of Non-Bank Certificate
	Exhibit R	Form of Intercreditor Agreement
	Exhibit S	Form of Borrowing Base Certificate

v

 
 

CREDIT AGREEMENT    
    

        This CREDIT AGREEMENT (this "Agreement") dated as of February 14, 2006 is among LINENS 'N
THINGS, INC., a Delaware corporation ("LNT") and LINENS 'N THINGS CENTER, INC., a California corporation ("LNT
Center" and together with LNT the "US Borrowers" and each individually a "US
Borrower"), LINENS 'N THINGS CANADA CORP., a Nova Scotia corporation ("Canadian Borrower" and together with US Borrowers, the
"Borrowers"); LINENS HOLDING CO., a Delaware corporation ("Holdings"); the Subsidiary Guarantors (such
term and each other capitalized term used but not defined herein having the meaning given to it in Article I); the Lenders; UBS SECURITIES LLC
("UBSS"), as lead arranger (in such capacity, "Arranger") and as documentation agent (in such capacity,
"Documentation Agent"); UBS LOAN FINANCE LLC ("UBS"), as US swingline lender (in such capacity,
"US Swingline Lender"); BEAR, STEARNS & CO. INC. ("Bear Stearns"), as
co-syndication agent (in such capacity, "Syndication Agent"); UBS AG, STAMFORD BRANCH, as an issuing bank, as US administrative agent (in
such capacity, "US Administrative Agent") for the Lenders and as US co-collateral agent (in such capacity, the "US
Co-Collateral Agent") for the Secured Parties and the Issuing Bank; UBS AG CANADA BRANCH, as Canadian co-collateral agent (in such capacity, the
"Canadian Co-Collateral Agent") for the Secured Parties and the Issuing Bank; WACHOVIA BANK, NATIONAL ASSOCIATION, as US
co-collateral agent (together with US Co-Collateral Agent, the "US Collateral Agents") for the Secured Parties and the Issuing
Bank and as an issuing bank; WACHOVIA CAPITAL FINANCE CORPORATION (CANADA), as Canadian administrative agent (in such capacity, the "Canadian Administrative
Agent" together with the US Administrative Agent, the "Administrative Agents") for the Lenders, as Canadian
co-collateral agent (together with Canadian Co-Collateral Agent, the "Canadian Collateral Agents"; the US Collateral Agents and
the Canadian Collateral Agents are collectively referred to herein as the "Collateral Agents") for the Secured Parties and the Issuing Bank, as an
issuing bank, and as Canadian swingline lender (in such capacity, "Canadian Swingline Lender" and together with US Swingline Lender, the
"Swingline Lenders"). 

WITNESSETH:  

        WHEREAS, Holdings and Laundry Merger Sub Co. ("Merger Sub Co."), a Delaware corporation and a direct Wholly Owned
Subsidiary of Holdings, have entered into an Agreement and Plan of Merger, dated as of November 8, 2005 (as amended, supplemented or otherwise modified from time to time in accordance with the
provisions hereof and thereof, the "Acquisition Agreement"), with LNT ("Seller"), to acquire (the
"Acquisition") all of the business of LNT (the "Acquired Business"). 

        WHEREAS,
the Acquisition will be effected by a merger (the "Merger") of Merger Sub Co. with and into Seller, with Seller surviving the
merger. 

        WHEREAS,
the Equity Financing shall be consummated simultaneously herewith. 

        WHEREAS,
Borrowers have requested the Lenders to extend credit in the form of Revolving Loans at any time and from time to time prior to the Revolving Maturity Date, in an aggregate
principal amount at any time outstanding not in excess of $600 million, of which (i) no more than up to $100 million of Loans plus up to $160 million of Letters of Credit
may be drawn on the Closing Date and (ii) up to $40 million may be extended to the Canadian Borrower in the form of Canadian Revolving Loans. 

        WHEREAS,
Borrowers have requested the Swingline Lenders to make Swingline Loans, at any time and from time to time prior to the Revolving Maturity Date, in an aggregate principal amount
at any time outstanding not in excess of (i) $35 million for US Swingline Loans and (ii) $5 million for Canadian Swingline Loans. 

        WHEREAS,
US Borrowers have requested the Issuing Bank to issue letters of credit, in an aggregate face amount at any time outstanding not in excess of $400 million, to support
obligations of the Borrowers and their Subsidiaries. 

        WHEREAS,
the proceeds of the Loans are to be used in accordance with Section 3.12. 

 

        NOW,
THEREFOR, the Lenders are willing to extend such credit to Borrowers and the Issuing Bank is willing to issue letters of credit for the account of the US Borrowers on the terms and
subject to the conditions set forth herein. Accordingly, the parties hereto agree as follows: 

 
 

ARTICLE I.    
    
    DEFINITIONS    
    

        SECTION 1.01.    Defined Terms.    As used in this Agreement, the following terms shall have
the meanings specified below: 

        "ABR", when used in reference to any Loan or Borrowing, is used when such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Alternate Base Rate. 

        "ABR Borrowing" shall mean a Borrowing comprised of ABR Loans. 

        "ABR Loan" shall mean any ABR Revolving Loan or US Swingline Loan. 

        "ABR Revolving Loan" shall mean any Revolving Loan bearing interest at a rate determined by reference to the Alternate Base Rate in
accordance with the provisions of Article II. 

        "Acceptance Fee" shall have the meaning assigned to such term in Section 2.06(d). 

        "Account Debtor" shall mean any Person who may become obligated to another Person under, with respect to, or on account of, an Account. 

        "Accounts" shall mean all "accounts" as such term is defined in the UCC as in effect on the date hereof in the State of New York or as
defined in the PPSA, as applicable, in which such Person now or hereafter has rights and shall include, without limitation, Credit Card Receivables. 

        "Acquired Business" shall have the meaning assigned to such term in the first recital hereto. 

        "Acquisition" shall have the meaning assigned to such term in the first recital hereto. 

        "Acquisition Agreement" shall have the meaning assigned to such term in the first recital hereto. 

        "Acquisition Consideration" shall mean the purchase consideration for any Permitted Acquisition and all other payments by Holdings or any
of its Subsidiaries in exchange for, or as part of, or in connection with, any Permitted Acquisition, whether paid in cash or by exchange of Equity Interests or of properties or otherwise and whether
payable at or prior to the consummation of such Permitted Acquisition or deferred for payment at any future time, whether or not any such future payment is subject to the occurrence of any
contingency, and includes any and all payments representing the purchase price and any assumptions of Indebtedness, "earn-outs" and other agreements to make any payment the amount of which
is, or the terms of payment of which are, in any respect subject to or contingent upon the revenues, income, cash flow or profits (or the like) of any person or business;  provided that any such future
payment that is subject to a contingency shall be considered Acquisition Consideration only to the extent of the reserve,
if any, required under GAAP at the time of such sale to be established in respect thereof by Holdings or any of its Subsidiaries. 

        "Acquisition Documents" shall mean the collective reference to the Acquisition Agreement, and the other documents listed on
Schedule 3.21. 

        "Activation Notice" has the meaning assigned to such term in Section 9.02. 

        "Adjusted LIBOR Rate" shall mean, with respect to any Eurodollar Borrowing for any Interest Period, (a) an interest rate per annum
(rounded upward, if necessary, to the nearest 

2

 

1/100th
of 1%) determined by the applicable Administrative Agent to be equal to the LIBOR Rate for such Eurodollar Borrowing in effect for such Interest Period divided by (b) 1  minus the Statutory Reserves
(if any) for such Eurodollar Borrowing for such Interest Period. 

        "Administrative Agent Fees" shall have the meaning assigned to such term in  Section 2.05(b). 

        "Administrative Agents" shall have the meaning assigned to such term in the preamble hereto. 

        "Administrative Borrower" shall mean LNT Center, or any successor entity serving in that role pursuant to  Section 2.03(c). 

        "Administrative Questionnaire" shall mean an Administrative Questionnaire in substantially the form of  Exhibit A. 

        "Affiliate" shall mean, when used with respect to a specified person, another person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common Control with the person specified; provided,  however, that, for purposes of Section 6.09, the term "Affiliate" shall also include
(i) any person that directly or indirectly owns more than 10% of any class of Equity Interests of the person specified or (ii) any person that is an executive officer or director of the
person specified. 

        "Agents" shall mean the Administrative Agents and the Collateral Agents; and "Agent" shall mean any of them. 

        "Agreement" shall have the meaning assigned to such term in the preamble hereto. 

        "Alternate Base Rate" shall mean, for any day, a rate per annum (rounded upward, if necessary, to the nearest 1/100th of 1%) equal to the
greater of (a) the Base Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus 0.50%. If the US
Administrative Agent shall have determined (which determination shall be conclusive absent manifest error) that it is unable to ascertain the Federal Funds Effective Rate for any reason, including the
inability or failure of the US Administrative Agent to obtain sufficient quotations in accordance with the terms of the definition thereof, the Alternate Base Rate shall be determined without regard
to clause (b) of the preceding sentence until the circumstances giving rise to such inability no longer exist. Any change in the Alternate Base
Rate due to a change in the Base Rate or the Federal Funds Effective Rate shall be effective on the effective date of such change in the Base Rate or the Federal Funds Effective Rate, respectively. 

        "Anti-Terrorism Laws" shall have the meaning assigned to such term in  Section 3.22. 

        "Applicable Fee" shall mean, for any day, with respect to any Commitment, the applicable percentage set forth in  Annex I under the caption "Applicable Fee". 

        "Applicable Margin" shall mean, for any day, with respect to any Revolving Loan or Swingline Loan, as the case may be, the applicable
percentage set forth in Annex I under the appropriate caption. 

        "Applicable Percentage" shall mean, with respect to any Lender, the percentage of the total Loans and Commitments represented by such
Lender's Loans and Commitments. 

        "Approved Currency" shall mean each of dollars and Canadian dollars. 

        "Approved Fund" shall mean 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. 

        "Arranger" shall have the meaning assigned to such term in the preamble hereto. 

3

 

        "Asset Sale" shall mean (a) any conveyance, sale, lease, sublease, assignment, transfer or other disposition (including by way of
merger, amalgamation or consolidation and including any Sale and Leaseback Transaction) of any property excluding (i) sales of Inventory, (ii) dispositions of Cash Equivalents and
(iii) leases or subleases of less than all or substantially all of the Stores, in each case, in the ordinary course of business, by Holdings or any of its Subsidiaries and (b) any
issuance or sale of any Equity Interests of any Subsidiary of Holdings, in each case, to any person other than (i) the Borrowers, (ii) any Subsidiary Guarantor or (iii) other than
for purposes of Section 6.06, any other Subsidiary. 

        "Assignment and Assumption" shall mean an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of
any party whose consent is required by Section 11.04(b)), and accepted by the applicable Administrative Agent, in substantially the form of  Exhibit B, or any other form approved by the applicable Administrative Agent. 

        "Average Excess Availability" shall mean, as of any date of determination, the Excess Availability on the last Business Day of the fiscal
quarter most recently ended; provided, that, if an Activation Notice has been delivered, the Average Excess Availability shall mean the weighted average
amount of Excess Availability for such quarter which shall equal the sum of each "Periodic Availability Amount" (defined below) calculated for such
quarter. As used herein, the term "Periodic Availability Amount" shall mean with respect to any period of days in a quarter for which a Borrowing Base
Certificate is in effect, (a) the Excess Availability amount determined by the Collateral Agents and Administrative Agents based on (x) the information set forth in the Borrowing Base
Certificate as adjusted to reflect any change noted by the Collateral Agents pursuant to the terms hereof, and (y) the outstanding Dollar Equivalents of the Loans and LC Exposures as shown on
the books of the applicable Administrative Agent, for such period of days multiplied by (b) the fraction (expressed as a percentage), the
numerator of which is the number of days in such quarter for which such Borrowing Base Certificate was in effect,
and the denominator of which is the number of days in such quarter. Average Excess Availability shall be calculated for each fiscal quarter by the Collateral Agents and such calculations shall be
presumed to be correct, absent manifest error. 

        "BA Equivalent Loan" shall mean a Canadian Revolving Loan made by a Non-BA Lender. 

        "Bailee Letter" shall have the meaning assigned thereto in the Security Agreement. 

        "Bank Commitment Letter" shall mean that certain Bank Commitment Letter dated as of November 7, 2005 among Sponsor, UBS, UBSS, Bear
Stearns, and Bear Stearns Corporate Lending Inc., as amended. 

        "Bankers' Acceptance" shall mean a bill of exchange, including a depository bill defined and issued in accordance with the Depository
Bills and Notes Act (Canada), denominated in Canadian dollars, drawn by the Canadian Borrower and accepted by the Lender and shall include, where the context requires, a Discount Note and a BA
Equivalent Loan not evidenced by a Discount Note. 

        "Base Rate" shall mean, for any day, a rate per annum that is equal to the corporate base rate of interest established by the US
Administrative Agent from time to time; each change in the Base Rate shall be effective on the date such change is effective. The corporate base rate is not necessarily the lowest rate charged by the
US Administrative Agent to its customers. 

        "BIA" shall mean the Bankruptcy and Insolvency Act (Canada) as such legislation now exists
or may from time to time hereafter be amended, modified, recodified, supplemented or replaced, together with all rules, regulations and interpretations thereunder or related thereto. 

        "Blocked Account" shall mean shall have the meaning assigned to such term in  Section 9.02(b). 

4

 

        "Board" shall mean the Board of Governors of the Federal Reserve System of the United States. 

        "Board of Directors" shall mean, with respect to any person, (i) in the case of any corporation (including, for the avoidance of
doubt, any company incorporated under the laws of Canada (or any province or territory thereof)), the board of directors of such person, (ii) in the case of any limited liability company, the
board of managers of such person, (iii) in the case of any partnership, the Board of Directors of the general partner of such person and (iv) in any other case, the functional equivalent
of the foregoing. 

        "Borrowers" shall have the meaning assigned to such term in the preamble hereto. 

        "Borrowing" shall mean (a) Loans of the same Class and Type, made, converted or continued on the same date and, in the case of
Eurodollar Loans or Banker's Acceptances, as to which a single Interest Period is in effect, or (b) a Swingline Loan. 

        "Borrowing Base" shall mean at any time, subject to adjustment as provided in  Section 2.20, an amount equal to the lesser of (a) the sum of, without
duplication: 

        (i)    the
book value of Eligible Accounts of US Borrowers multiplied by the advance rate of 85%, plus

        (ii)   (A)
at any time other than during a Seasonal Advance Period, the lesser of (x) the advance rate of 70% of the Cost of Eligible Inventory of US Borrowers, and
(y) the advance rate of 85% of the Net Recovery Cost Percentage multiplied by the Cost of Eligible Inventory of US Borrowers and (B) during a Seasonal Advance Period, the lesser of
(x) the advance rate of 80% of the Cost of Eligible Inventory of US Borrowers, and (y) the advance rate of 90% of the Net Recovery Cost Percentage multiplied by the Cost of Eligible
Inventory of US Borrowers, plus

        (iii)  (A)
at any time other than during a Seasonal Advance Period, the lesser of (x) the Cost of all Eligible In-Transit Inventory of US Borrowers
multiplied by the advance rate of 70%, and (y) the advance rate of 85% of the Net Recovery Cost Percentage multiplied by the Cost of Eligible In-Transit Inventory of US Borrowers
and (B) during a Seasonal Advance Period, the lesser of (x) the Cost of all Eligible In-Transit Inventory of US Borrowers multiplied by the advance rate of 80%, and
(y) the advance rate of 90% of the Net Recovery Cost Percentage multiplied by the Cost of Eligible In-Transit Inventory of US Borrowers,  plus

        (iv)  the
aggregate of all Incorporated Borrowing Bases, plus

        (v)   (A)
at any time other than during a Seasonal Advance Period, the lesser of (x) the aggregate undrawn face amount of Eligible Letters of Credit multiplied by the
advance rate of 70% and (y) 85% of the Net Recovery Cost Percentage of Inventory being purchased with Eligible Letters of Credit and
(B) at any time during a Seasonal Advance Period, the lesser of (x) the aggregate undrawn face amount of Eligible Letters of Credit multiplied by the advance rate of 80% and
(y) 90% of the Net Recovery Cost Percentage of Inventory being purchased with Eligible Letters of Credit, minus

        (vi)  a
reserve in the amount of the Current Derivative Exposure; minus

        (vii) effective
immediately upon notification thereof to US Borrowers by the applicable Collateral Agents, any Reserves established from time to time by such Collateral
Agents in the exercise of their Permitted Discretion; and 

        (b)   the
maximum amount of Revolving Credit Obligations (as defined in the Senior Note Agreement) that are permitted in  Section 4.09 of the Senior Note Agreement as Permitted Debt 

5

 

thereunder  minus the Canadian Exposure of all the Lenders minus the Line Reserve allocated to US
Revolving Commitments. 

        The
Borrowing Base at any time shall be determined by reference to the most recent Borrowing Base Certificate theretofore delivered to the Collateral Agents and the Administrative Agents
with such adjustments as Administrative Agents and Collateral Agents deem appropriate in their collective Permitted Discretion to assure that the Borrowing Base is calculated in accordance with the
terms of this Agreement. 

        "Borrowing Base Certificate" shall mean an Officers' Certificate from Borrowers, substantially in the form of (or in such other form as
may be mutually agreed upon by Borrowers, Collateral Agents and Administrative Agents), and containing the information prescribed by Exhibit S,
delivered to the Administrative Agents and the Collateral Agents setting forth Borrowers' calculation of the Borrowing Base and the Canadian Borrowing Base. 

        "Borrowing Base Guarantor Intercompany Loan Amount" shall mean, at any time, the amount which is the sum of (a) the net amount of
any intercompany advances (including Letters of Credit issued for the account or benefit of a US Borrowing Base Guarantor) which are made and outstanding to or for the account of a US Borrowing Base
Guarantor from the Administrative Borrower and (b) interest accrued and unpaid on such amount (from the date of this Agreement for amounts outstanding on the date hereof and which remain
outstanding, and from the date of such intercompany advance for subsequent advances) at the rate per annum equal to the Alternate Base Rate plus the Applicable Margin in effect from time to time. 

        "Borrowing Base Guarantors" shall mean the US Borrowing Base Guarantors and the Canadian Borrowing Base Guarantors. 

        "Borrowing Request" shall mean a request by Borrowers in accordance with the terms of  Section 2.03 and substantially in the form of Exhibit C, or such other form as shall be
approved by the Administrative Agents. 

        "Business Day" shall mean any day other than a Saturday, Sunday or other day on which banks in New York City are authorized or required by
law to close; provided, however, that when used in connection with (a) a Eurodollar Loan, the
term "Business Day" shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market (b) a Canadian Revolving Loan, the term "Business Day"
shall also exclude any day on which banks in Toronto, Canada are authorized or required by law to close. 

        "CAM Exchange" shall mean the exchange of the Lenders' interests provided for in  Section 2.22. 

        "CAM Exchange Date" shall mean the date on which (i) any event referred to in  Section 8.01(g) or (h) shall occur,
 or (ii) an acceleration of the maturity of the Loans
pursuant to Section 8.01 shall occur. 

        "CAM Percentage" shall mean, as to each Lender, a fraction, expressed as a decimal, of which (i) the numerator shall be (without
duplication) the aggregate Dollar Equivalent of the Specified Obligations owed to such Lender and such Lender's participation in the aggregate LC Obligations immediately prior to the CAM Exchange Date
and (ii) the denominator shall be (without duplication) the aggregate Dollar Equivalent (as so determined) of the Specified Obligations owed to all the Lenders and the aggregate LC Obligations
immediately prior to such CAM Exchange Date. 

        "Canadian Administrative Agent" shall have the meaning assigned to such term in the preamble hereto. 

6

 

        "Canadian Borrower" shall have the meaning assigned to such term in the preamble hereto. 

        "Canadian Borrowing Base" shall mean at any time, subject to adjustment as provided in  Section 2.21, an amount equal to the lesser of (a) the sum of, without
duplication: 

        (i)    the
book value of Eligible Canadian Accounts of Canadian Borrower multiplied by the advance rate of 85%, plus

        (ii)   (A)
at any time other than during a Seasonal Advance Period, the lesser of (x) the advance rate of 70% of the Cost of Eligible Canadian Inventory of Canadian
Borrower, and (y) the advance rate of 85% of the Net Recovery Cost Percentage multiplied by the Cost of Eligible Canadian Inventory of Canadian Borrower and (B) during a Seasonal Advance
Period, the lesser of (x) the advance rate of 80% of the Cost of Eligible Canadian Inventory of Canadian Borrower, and (y) the advance rate of 90% of the Net Recovery Cost Percentage
multiplied by the Cost of Eligible Canadian Inventory of Canadian Borrower, plus

        (iii)  (A)
at any time other than during a Seasonal Advance Period, the lesser of (x) the cost of all the Eligible Canadian In-Transit Inventory of
Canadian Borrower multiplied by an advance rate of 70%, and (y) the advance rate of 85% of the Net Recovery Cost Percentage multiplied by the Cost of Eligible Canadian In-Transit
Inventory of Canadian Borrower and (B) during a Seasonal Advance Period, the lesser of (x) the Cost of all Eligible Canadian In-Transit Inventory of Canadian Borrower
multiplied by the advance rate of 80% and (y) the advance rate of 90% of the Net Recovery Cost Percentage multiplied by the Cost of Eligible Canadian In-Transit Inventory of
Canadian Borrower, plus

        (iv)  the
amount, if any, by which the Borrowing Base exceeds the US Revolving Exposure of all of the Lenders (but only to the extent that such excess is not made available
to US Borrowers), minus

        (v)   to
the extent not already deducted in the calculation of the Borrowing Base, a reserve in the amount of the Current Derivative Exposure;  minus

        (vi)  a
reserve in the amount of the Priority Payables; minus

        (vii) effective
immediately upon notification thereof to Canadian Borrower by the applicable Collateral Agents, any Reserves established from time to time by such Collateral
Agents in the exercise of their Permitted Discretion; and 

        (b)   the
maximum amount of Revolving Credit Obligations (as defined in the Senior Note Agreement) that are permitted in  Section 4.09 of the Senior Note Agreement as Permitted Debt thereunder minus
the US Revolving Exposure of all of the Lenders minus the Line Reserve allocated to the Canadian Revolving Commitments. 

        The
Canadian Borrowing Base at any time shall be determined by reference to the most recent Borrowing Base Certificate theretofore delivered to the Collateral Agents and the
Administrative Agents with such adjustments as Administrative Agents and Collateral Agents deem appropriate in their collective Permitted Discretion to assure that the Canadian Borrowing Base is
calculated in accordance with the terms of this Agreement. 

        "Canadian Borrowing Base Guarantor" shall mean any Wholly Owned Subsidiary of the Canadian Borrower which may hereafter be approved by the
Administrative Agents and the Collateral Agents and which (a) is organized under the laws of Canada (or any province or territory thereof), (b) is currently able to prepare all
collateral reports in a comparable manner to the Borrowers' reporting procedures and (c) has executed and delivered to the applicable Collateral Agents such joinder agreements to guarantees,
contribution and set-off agreements and other Security Documents as such Collateral Agents have reasonably requested so long as such 

7

 

Collateral
Agents have received and approved, in their reasonable discretion, (i) a collateral audit and Inventory Appraisal conducted by an independent appraisal firm reasonably acceptable to
such Collateral Agents and (ii) all PPSA and similar search results necessary to confirm such Collateral Agents' first priority Lien on all of such Canadian Borrowing Base Guarantor's personal
property, subject to Permitted Liens. 

        "Canadian Collateral Agent" shall have the meaning assigned to such term in the preamble hereto. 

        "Canadian dollars" or "Can$" shall mean the lawful money of Canada. 

        "Canadian Exposure" shall mean, with respect to any Lender at any time, the Dollar Equivalent of the aggregate principal amount at such
time of all outstanding Canadian Revolving Loans of such Lender, plus the aggregate amount at such time of such Lender's Swingline Exposure to Canadian
Borrower. 

        "Canadian Guarantors" shall mean LNT I, LNT II, LNT Partnership and each other person, if any, that executes or becomes party to a
Canadian Guaranty or other similar agreement guaranteeing the Canadian Obligations in favor of the Canadian Collateral Agents. 

        "Canadian Guaranty" shall mean each certain Guaranty Agreement dated as of the Closing Date guaranteeing the Canadian Obligations
addressed to the Canadian Collateral Agents for the benefit of the Canadian Secured Parties by each Canadian Loan Party governed by Canadian law, as the same may from time to time be modified,
amended, extended or reaffirmed in accordance with the terms thereof. 

        "Canadian Inventory" shall mean all of the Canadian Borrower's and Canadian Borrowing Base Guarantors' now owned and hereafter existing or
acquired raw materials, work in process, finished goods and all other inventory of whatsoever kind or nature, wherever located. 

        "Canadian Loan Parties" shall mean Canadian Borrower and the Canadian Guarantors. 

        "Canadian Obligations" shall mean (a) obligations of Canadian Borrower and the other Canadian Loan Parties from time to time
arising under or in respect of the due and punctual payment of (i) the principal of and premium, if any, and interest (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Canadian Revolving Loans and Canadian Swingline Loans, when and as due,
whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (ii) each payment required to be made by Canadian Borrower under this Agreement in respect of any
Letter of Credit or LC Acceptance, when and as due, including payments in respect of Reimbursement Obligations, interest thereon and obligations to provide cash collateral, and (iii) all other
monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of Canadian Borrower and the other Canadian Loan Parties under
this Agreement and the other Loan Documents with respect to obligations of Canadian Borrower and the Canadian Guarantors, (b) the due and punctual performance of all covenants, agreements,
obligations and liabilities of Canadian Borrower and the Canadian Guarantors under or pursuant to this Agreement and the other Loan Documents with respect to the obligations of Canadian Borrower,
(c) the due and punctual payment and performance of all obligations of Canadian Borrower and the other Canadian Loan Parties under each Lender Hedging Agreement to which Canadian Borrower
and/or the other Canadian Loan Parties maybe a party, and (d) the due and punctual payment and performance of all obligations of any Canadian Loan Party in respect of overdrafts and related
liabilities owed to any Lender, any Affiliate of a Lender, the Administrative 

8

 

Agents
or the Collateral Agents arising from treasury, depository and cash management services or in connection with any automated clearinghouse transfer of funds. Notwithstanding anything herein to
the contrary, the term "Canadian Obligations" shall only refer to obligations of Canadian Borrower and Canadian Guarantors hereunder and under the other
Loan Documents and shall not refer to obligations of US Borrowers and their US Subsidiaries. 

        "Canadian Pledge Agreements" shall mean that certain Pledge Agreement by LNT Center pledging sixty-five percent (65%) of its
Equity Interests in LNT I and LNT II to secure the US Obligations and pledging 100% thereof to secure the Canadian Obligations and that certain Pledge Agreement by LNT I, LNT II, LNT Partnership and
Canadian Borrower pledging all of their Equity Interests in the Canadian Borrower and the Canadian Guarantors, as applicable, to secure the Canadian Obligations, in each case, addressed to the
applicable Collateral Agents for the benefit of the applicable Secured Parties, as the same may from time to time be modified, amended, extended or reaffirmed in accordance with the terms thereof. 

        "Canadian Prime Rate" shall mean on any day the greater of: 

        (a)   a
rate per annum that is equal to the corporate base rate of interest established from time to time by Bank of Montreal (or such other Schedule I Bank selected by
the Canadian Administrative Agent from time to time) as its reference rate then in effect on such day for commercial loans made by it in Canada (it is understood and agreed that such corporate base
rate is not necessarily the lowest rate charged by the Canadian Administrative Agent to its customers); and 

        (b)   the
CDOR Rate in effect from time to time plus 100 basis points per annum. 

        Any
change in the Canadian Prime Rate shall be effective as of the opening of business on the date the change become effective generally. 

        "Canadian Prime Rate Borrowing" shall mean a Borrowing comprised of Canadian Prime Rate Loans. 

        "Canadian Prime Rate Loans" shall mean any Canadian Revolving Loan or Canadian Swingline Loan bearing interest at a rate determined by
reference to the Canadian Prime Rate in accordance with the provisions of Article II. 

        "Canadian Pro Rata Percentage" of any Canadian Revolving Lender at any time shall mean the percentage of the total Canadian Revolving
Commitments of all Canadian Revolving Lenders represented by such Lender's Canadian Revolving Commitment. 

        "Canadian Revolving Borrowing" shall mean a Borrowing comprised of Canadian Revolving Loans. 

        "Canadian Revolving Commitment" shall mean, with respect to each Revolving Lender, the commitment, if any, of such Revolving Lender to
make Canadian Revolving Loans hereunder up to the
amount set forth on Schedule I to the Lender Addendum executed and delivered by such Lender or in the Assignment and Assumption pursuant to which such lender assumed its Canadian Revolving
Commitment. The Canadian Revolving Commitment of each Revolving Lender is a sub-commitment of its Revolving Commitment and, as such, may be (a) reduced from time to time pursuant to  Section 2.07 and (b) reduced or increased from time to time pursuant to assignments by or to such Revolving Lender pursuant to  Section 11.04. The aggregate amount of the Lenders' Canadian Revolving
Commitments on the Closing Date is $40 million.
 

        "Canadian Revolving Lender" shall mean a Lender with a Canadian Revolving Commitment. 

9

 

        "Canadian Revolving Loan" shall mean a Revolving Loan borrowed by the Canadian Borrower denominated in Canadian dollars or a Bankers'
Acceptance (and any advances with respect thereto) denominated in Canadian dollars. 

        "Canadian Secured Parties" shall mean the Canadian Administrative Agent, the Canadian Collateral Agents, each Lender that holds Canadian
Revolving Loans or has Canadian Revolving Commitments (in its capacity as such) and the Canadian Swingline Lender. 

        "Canadian Security Agreement" shall mean each certain Security Agreement dated as of the Closing Date in favor of the Canadian Collateral
Agents to secure the Canadian Obligations for the benefit of the Canadian Secured Parties by Canadian Borrower and by each Canadian Guarantor, which is governed by Canadian law, as the same may from
time to time be modified, amended, extended or reaffirmed in accordance with the terms thereof. 

        "Canadian Swingline Commitment" shall mean the commitment of the Canadian Swingline Lender to make loans pursuant to  Section 2.17, as the same may be reduced from
time to time pursuant to Section 2.07 or  Section 2.17. The amount of the Canadian Swingline Commitment shall initially be $5 million, but in
no event shall exceed the Revolving
Commitment. 

        "Canadian Swingline Lender" shall have the meaning assigned to such term in the preamble hereto. 

        "Canadian Swingline Loans" shall mean any loan made by the Canadian Swingline Lender pursuant to  Section 2.17(d). 

        "Capital Expenditures" shall mean, for any period, without duplication, the increase during that period in the gross property, plant or
equipment account in the consolidated balance sheet of LNT and its Subsidiaries, determined in accordance with GAAP, whether such increase is due to purchase of properties for cash or financed by the
incurrence of Indebtedness, but excluding (i) expenditures made in connection with the replacement, substitution or restoration of property pursuant to  Section 2.10(d) and (ii) any
portion of such increase attributable solely to acquisitions of property, plant and equipment in Permitted
Acquisitions. 

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

        "Cash Collateral Account" shall mean a collateral account in the form of a deposit account established and maintained by the Collateral
Agents for the benefit of the Secured Parties from the proceeds of Collateral collected in the Collection Account that have not either been released to the Borrowers or applicable Guarantor or applied
immediately to outstanding Obligations. 

        "Cash Equivalents" shall mean, as to any person, (a) securities issued, or directly, unconditionally and fully guaranteed or
insured, by the United States, Canada or any agency or instrumentality thereof (provided that the full faith and credit of the United States or Canada
is pledged in support thereof) having maturities of not more than one year from the date of acquisition by such person; (b) time deposits and certificates of deposit of any Lender or any
commercial bank having, or which is the principal banking subsidiary of a bank holding company organized under the laws of the United States, any state thereof or the District of Columbia or any
province or territory of Canada having, capital and surplus aggregating in excess of $500 million and a rating of "A" (or such other similar equivalent rating) or higher by at least one
nationally recognized statistical rating organization (as defined in Rule 436 under the Securities Act) with maturities of not more than one year from the date of acquisition by such person;
(c) repurchase 

10

 

obligations
with a term of not more than 30 days for underlying securities of the types described in clause (a) above entered into with any bank meeting the qualifications specified in
clause (b) above, which repurchase obligations are secured by a valid perfected security interest in the underlying securities; (d) commercial paper issued by any person incorporated in
the United States or Canada rated at least A-1 or the equivalent thereof by Standard & Poor's Rating Service or at least P-1 or the equivalent thereof by Moody's
Investors Service Inc., and in each case maturing not more than one year after the date of acquisition by such person; (e) investments in money market funds substantially all of whose
assets are comprised of securities of the types described in clauses (a) through (d) above; (f) demand deposit accounts maintained in the ordinary course of business; and
(g) other bank accounts which contain funds that have not been swept to the Concentration Accounts because of the need to meet compensating balance or other fee requirements of a bank that
provides a Blocked Account. 

        "Casualty Event" shall mean any loss of title or any loss of or damage to or destruction of, or any condemnation or other taking
(including by any Governmental Authority) of, any property of Holdings or any of its Subsidiaries. "Casualty Event" shall include but not be limited to any taking of all or any part of any Real
Property of any person or any part thereof, in or by condemnation or other eminent domain proceedings pursuant to any Requirement of Law, or by reason of the temporary requisition of the use or
occupancy of all or substantially all of any Real Property of any person or any part thereof by any Governmental Authority, civil or military, or any settlement in lieu thereof, but shall not include
a loss of title to the extent covered by a title insurance policy. 

        "CDOR Rate" shall mean, on any day, the annual rate of interest which is the arithmetic average of the "BA 1 month" rates
applicable to Bankers' Acceptances issued by Schedule I banks identified as such on the Reuters Screen CDOR Page at approximately 10:00 a.m. (Toronto time) on such day (as adjusted by
the Canadian Administrative Agent after 10:00 a.m. (Toronto time) to reflect any error in any posted rate or in the posted average annual rate). If the rate does not appear on the Reuters
Screen CDOR Page as contemplated above, then the CDOR Rate on any day shall be calculated as the arithmetic average of the discount rates applicable to one month Bankers' Acceptances of, and as quoted
by, any two of the Schedule I banks, chosen by the Canadian Administrative Agent, as of 10:00 a.m. (Toronto time) on such day, or if such day is not a Business Day, then on the
immediately preceding Business Day. If less than two Schedule I banks quote the aforementioned rate, the CDOR Rate shall be the rate chosen by the Canadian Administrative Agent. 

        "CERCLA" shall mean the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C.
§ 9601 et seq. and all implementing regulations. 

        A
"Change in Control" shall be deemed to have occurred if: 

        (a)   Holdings
at any time ceases to own directly or indirectly 100% of the Equity Interests of Borrowers; 

        (b)   at
any time a change of control occurs under any Material Indebtedness; 

        (c)   prior
to an IPO, the Permitted Holders cease to own, or to have the power to vote or direct the voting of, Voting Stock of Holdings representing a majority of the voting
power of the total outstanding Voting Stock of Holdings; 

        (d)   following
an IPO, (i) the Permitted Holders shall fail to own, or to have the power to vote or direct the voting of, Voting Stock of Holdings representing more
than 25% of the voting power of the total outstanding Voting Stock of Holdings, (ii) the Permitted Holders cease to own Equity Interests representing more than 25% of the total economic
interests of the Equity Interests of Holdings or (iii) any "person" or "group" (as such terms are used in Sections 13(d) and  14(d) of the Exchange
Act), other than one or more Permitted Holders, is 

11

 

or
becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of this clause such person or group shall be deemed
to have "beneficial ownership" of all securities that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or
indirectly, of an equal or greater percentage of Voting Stock of Holdings than the percentage of Voting Stock that the Sponsor and its Controlled Investment Affiliates own or have the power to vote or
direct the voting of after such IPO; or 

        (e)   following
an IPO, during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors of Holdings (together
with any new directors whose election to such Board of Directors or whose nomination for election was approved by a vote of a majority of the members of the Board of Directors of Holdings, or whose
election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Directors of Holdings. 

        For
purposes of this definition, a person shall not be deemed to have beneficial ownership of Equity Interests subject to a stock purchase agreement, merger agreement, amalgamation
agreement or similar agreement until the consummation of the transactions contemplated by such agreement. 

        "Change in Law" shall mean the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking
into effect of any law, treaty, order, policy, rule or regulation, (b) any change in any law, treaty, order, policy, rule or regulation or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority. 

        "Charges" shall have the meaning assigned to such term in Section 11.14. 

        "Chattel Paper" shall mean all "chattel paper," as such term is defined in the UCC as in effect on the date hereof in the State of New
York, or as defined in the PPSA, as applicable, in which any Person now or hereafter has rights. 

        "Class," when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are
Revolving Loans or Swingline Loans and, when used in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment, US Swingline Commitment or Canadian Swingline Commitment,
in each case, under this Agreement as originally in effect or pursuant to Section 2.19, of which such Loan, Borrowing or Commitment shall be a
part. 

        "Closing Date" shall mean the date of the initial Credit Extension hereunder. 

        "Code" shall mean the Internal Revenue Code of 1986, as amended from time to time. 

        "Collateral" shall mean, collectively, all of the Security Agreement Collateral, the Mortgaged Property and all other property of whatever
kind and nature subject or purported to be subject from time to time to a Lien under any Security Document. 

        "Collateral Agent" shall have the meaning assigned to such term in the preamble hereto; provided, however, when reference is made to the
applicable Collateral Agents, the reference shall be deemed to be (i) to UBS AG, Stamford Branch or UBS AG Canada Branch as Co-Collateral Agent, if and to the extent that such
reference requires a payment to be made (other than with respect to any indemnification or such other payment that is to be made to Wachovia Bank, National Association as Co-Collateral
Agent, as provided by this Agreement), (ii) Wachovia Bank, National Association or Wachovia Capital Finance Corporation (Canada) as Co-Collateral Agent, if and to the extent that
such reference requires action or determination with respect to the 

12

 

reporting
or monitoring of the Collateral, the Borrowing Base or the Canadian Borrowing Base, as applicable, including any and all actions relating to Eligible In-Transit Inventory,
Eligible Canadian In-Transit Inventory or Eligible Letters of Credit, and (iii) both US Collateral Agents or both Canadian Collateral Agents or (in the case of issues affecting all
Lenders (other than after the operation of a CAM Exchange)) all Collateral Agents if and to the extent that such reference requires action or determination with respect to other issues, such as the
establishment or modification of eligibility criteria, advance rates or Reserves. 

        "Collection Accounts" has the meaning assigned to such term in Section 9.02(d).

        "Commercial Letter of Credit" shall mean any letter of credit or similar instrument issued for the purpose of providing credit support in
connection with the purchase of materials, goods or services by US Borrowers or any of their Subsidiaries in the ordinary course of their businesses. 

        "Commitment" shall mean, with respect to any Lender, such Lender's Revolving Commitment, Canadian Revolving Commitment, US Swingline
Commitment or Canadian Swingline Commitment, and any Commitment to make Revolving Loans of a new Class extended by such Lender as provided in  Section 2.19. 

        "Commitment Fee" shall have the meaning assigned to such term in Section 2.05(a). 

        "Companies" shall mean Holdings and its Subsidiaries; and "Company" shall mean any one of
them. 

        "Compliance Certificate" shall mean a certificate of a Financial Officer substantially in the form of  Exhibit D or such other form as may be acceptable to the
Administrative Agents. 

        "Concentration Accounts" shall have the meaning assigned to such term in  Section 9.02(d). 

        "Confidential Information Memorandum" shall mean that certain confidential information memorandum relating to the Senior Notes dated as of
February 8, 2006. 

        "Consolidated Cash Flow" means, for any period, the Consolidated Net Income for such period  plus, without duplication: 

        (i)    an
amount equal to any extraordinary loss plus any net loss realized by LNT or any of its Subsidiaries in connection with an Asset Sale, to the extent such losses were
deducted in computing such Consolidated Net Income; plus

        (ii)   provision
for taxes based on income or profits of LNT and its Subsidiaries for such period, including any applicable franchise or property taxes, to the extent that
such provision for taxes was deducted in computing such Consolidated Net Income; plus

        (iii)  Consolidated
Interest Expense for such period, to the extent that such Consolidated Interest Expense were deducted in computing such Consolidated Net Income;  plus

        (iv)  the
amount of any restructuring charges or reserves (which for the avoidance of doubt, shall include retention, escheat, severance, relocation, excess pension charges,
contract termination costs, including future lease commitments) deducted in such period in computing Consolidated Net Income; plus

        (v)   the
amount of management, monitoring, consulting and advisory fees and related expenses paid to the Sponsors (or any accruals relating to such fees and related expenses)
during such period; provided that such amount shall not exceed $2.0 million in any four quarter period (calculated without giving effect to this
clause (5)); plus

        (vi)  cash
received pursuant to tenant allowances from landlords, plus

13

 

        (vii) for
any quarter in the four quarter periods ended October 1, 2005 and December 31, 2005, respectively, all adjustments to net income (or loss) used in
connection with the calculation of pro forma "Adjusted EBITDA" for the 52 weeks ended October 1, 2005 and December 31, 2005, respectively (as set forth in the offering memorandum
relating to the Senior Notes under Note (4) to the section entitled "Offering Memorandum Summary—Summary Historical and Pro Forma Consolidated Financial and Operating Data") to the
extent such adjustments are not fully reflected in the applicable quarter and continue to be applicable; plus

        (viii) depreciation,
amortization (including amortization of intangibles and any amortization of straight line rent expense but excluding amortization of prepaid cash
expenses that were paid in a prior period) and other non-cash expenses (including charges related to the write-off of goodwill or intangibles as a result of impairment, in each
case as required by SFAS No. 142 or SFAS No. 144 but excluding any such non-cash expense to the extent that it represents an accrual of or reserve for cash expenses in any
future period or amortization of a prepaid cash expense that was paid in a prior period) of LNT and its Subsidiaries for such period to the extent that such depreciation, amortization and other
non-cash expenses were deducted in computing such Consolidated Net Income; minus

        (ix)  non-cash
items increasing such Consolidated Net Income (including the amortization of tenant allowances received) for such period, other than the accrual of
revenue in the ordinary course of business, 

in
each case, on a consolidated basis and determined in accordance with GAAP. 

        "Consolidated Fixed Charge Coverage Ratio" shall mean, for any Test Period, the ratio of (a) Consolidated Cash Flow for such Test
Period to (b) Consolidated Fixed Charges for such Test Period. 

        "Consolidated Fixed Charges" shall mean, for any period, the sum, without duplication, of 

        (a)   Consolidated
Interest Expense for such period; 

        (b)   the
aggregate amount of Capital Expenditures for such period (other than to the extent financed by Excluded Issuances); 

        (c)   all
cash payments in respect of income taxes made during such period (net of any cash refund in respect of income taxes actually received during such period); 

        (d)   the
principal amount of all scheduled amortization payments on all Indebtedness (including the principal component of all Capital Lease Obligations, but excluding such
amortization payments on Indebtedness incurred to finance Capital Expenditures included in clause (b) above in such period or any prior period) of LNT and its Subsidiaries for such period (as
determined on the first day of the respective period); 

        (e)   the
product of all cash dividend payments on any series of Disqualified Capital Stock of Holdings or any of its Subsidiaries (other than dividend payments to LNT or any
of its Subsidiaries); and 

        (f)    the
product of all cash dividend payments on any Preferred Stock (other than Disqualified Capital Stock) of Holdings or any of its Subsidiaries (other than dividend
payments to LNT or any of its Subsidiaries). 

        "Consolidated Indebtedness" shall mean, as at any date of determination, the aggregate amount of all Indebtedness and all LC Exposure for
Standby Letters of Credit of LNT and its Subsidiaries, determined on a consolidated basis in accordance with GAAP. 

14

 

        "Consolidated Interest Expense" shall mean, for any period, the total consolidated cash interest expense of LNT and its Subsidiaries for
such period determined on a consolidated basis in accordance with GAAP plus, without duplication each of the following to the extent paid or payable in
cash: 

        (a)   imputed
interest on Capital Lease Obligations of LNT and its Subsidiaries for such period; 

        (b)   commissions,
discounts and other fees and charges owed by LNT or any of its Subsidiaries with respect to Standby Letters of Credit, bankers' acceptance financing and
receivables financings for such period; 

        (c)   cash
contributions to any employee stock ownership plan or similar trust made by LNT or any of its Subsidiaries to the extent such contributions are used by such plan or
trust to pay interest or fees to any person (other than LNT or a Wholly Owned Subsidiary) in connection with Indebtedness incurred by such plan or trust for such period; 

        (d)   all
interest paid or payable with respect to discontinued operations of LNT or any of its Subsidiaries for such period; 

        (e)   the
interest portion of any deferred payment obligations of LNT or any of its Subsidiaries for such period; 

        (f)    all
interest on any Indebtedness of LNT or any of its Subsidiaries of the type described in clause (e) or (i) of the definition of "Indebtedness" for such
period; 

provided that (a) to the extent directly related to the Transactions, debt issuance costs, debt discount or premium and other financing fees and
expenses shall be excluded from the calculation of Consolidated Interest Expense and (b) Consolidated Interest Expense shall be calculated after giving effect to Hedging Agreements (including
associated costs), but excluding unrealized gains and losses with respect to Hedging Agreements. 

        Consolidated
Interest Expense shall be calculated on a Pro Forma Basis to give effect to any Indebtedness incurred, assumed or permanently repaid or extinguished during the relevant Test
Period in connection with the Acquisition, any Permitted Acquisitions and Asset Sales (other than any dispositions in the ordinary course of business) as if such incurrence, assumption, repayment or
extinguishing had been effected on the first day of such period. 

        "Consolidated Net Income" means, for any period, the aggregate of the Net Income of LNT and its Subsidiaries for such period, on a
consolidated basis, determined in accordance with GAAP; provided that: 

        (i)    the
Net Income (but not loss) of any person that is not a Subsidiary Guarantor or that is accounted for by the equity method of accounting will be included only to the
extent of the amount of dividends or similar distributions paid in cash (or converted into cash) to the US Borrowers or a Subsidiary Guarantor; 

        (ii)   the
Net Income of any Subsidiary will be excluded to the extent that the declaration or payment of dividends or similar distributions by that Subsidiary of that Net
Income is not at the date of determination permitted without any prior governmental approval (that has not been obtained) or, directly or indirectly, by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Subsidiary or its stockholders; provided
that if any such dividend or distribution is actually received it will be included for the purposes of this definition; 

15

 

        (iii)  any
increase in amortization and depreciation or any one-time non-cash charges resulting from purchase accounting in connection with any
acquisition that is consummated on or after the date of this Agreement will be excluded; 

        (iv)  the
cumulative effect of a change in accounting principles will be excluded; 

        (v)   any
net after-tax gains or losses (less all fees and expenses or charges relating thereto) attributable to business dispositions or asset dispositions other
than in the ordinary course of business (as determined in good faith by senior management or the board of directors of Holdings) will be excluded; 

        (vi)  any
net after-tax gains or losses (less all fees and expenses or charges relating thereto) attributable to the early extinguishment of indebtedness will be
excluded; 

        (vii) non-cash
gains, losses, income and expenses resulting from fair value accounting required by Statement of Financial Accounting Standards No. 133 and
related interpretations will be excluded; 

        (viii) the
effects of purchase accounting as a result of the Transactions will be excluded; 

        (ix)  any
fees, expenses and charges relating to the Transactions (whenever paid) will be excluded; and 

        (x)   accruals
and reserves that are established within 12 months of the Closing Date and that are required to be established in accordance with GAAP will be excluded. 

        "Consolidated Net Tangible Assets" means, as of any date of determination, the sum of the assets of LNT and its Subsidiaries after
eliminating intercompany items, determined on a consolidated basis in accordance with GAAP, less (without duplication) (i) the net book value of all of LNT's and its Subsidiaries' licenses,
patents, patent applications, copyrights, trademarks, trade names, goodwill, non-compete agreements or organizational expenses and other like intangibles shown on the balance sheet of LNT
and its Subsidiaries as of the most recent date for which such a balance sheet is available, (ii) unamortized Indebtedness discount and expenses, (iii) all reserves for depreciation,
obsolescence, depletion and amortization of its properties and all other proper reserves related to assets which in accordance with GAAP have been provided by LNT and its Subsidiaries and
(iv) all current liabilities. 

        "Contested Collateral Lien Conditions" shall mean, with respect to any Permitted Lien of the type described in clauses (a), (b),
(e) and (f) of Section 6.02, the following conditions: 

        (a)   US
Borrowers shall cause any proceeding instituted contesting such Lien to stay the sale or forfeiture of any portion of the Collateral on account of such Lien; 

        (b)   at
the option and at the request of the US Administrative Agent, to the extent such Lien is in an amount in excess of $100,000, the applicable Collateral Agent shall
maintain a Reserve against the Borrowing Base or Canadian Borrowing Base, as applicable, in an amount sufficient to pay and discharge such Lien and the US Administrative Agent's reasonable estimate of
all interest and penalties related thereto; and 

        (c)   such
Lien shall in all respects be subject and subordinate in priority to the Lien and security interest created and evidenced by the Security Documents, except if and
to the extent that the Requirement of Law creating, permitting or authorizing such Lien provides that such Lien is or must be superior to the Lien and security interest created and evidenced by the
Security Documents. 

16

  

        "Contingent Obligation" shall mean, as to any person, any obligation, agreement, understanding or arrangement of such person guaranteeing
or intended to guarantee any Indebtedness, leases, dividends or other obligations ("primary obligations") of any other person (the
"primary obligor") in any manner, whether directly or indirectly, including any obligation of such person, whether or not contingent, (a) to
purchase any such primary obligation or any property constituting direct or indirect security therefor; (b) to advance or supply funds (i) for the purchase or payment of any such primary
obligation or (ii) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor; (c) to purchase
property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation;
(d) with respect to bankers' acceptances, letters of credit and similar credit arrangements, until a reimbursement obligation arises (which reimbursement obligation shall constitute
Indebtedness); or (e) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof; provided,
however, that the term "Contingent Obligation" shall not include endorsements of instruments for deposit or collection in the ordinary course of business or any product
warranties. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation
is made (or, if less, the maximum amount of such primary obligation for which such person may be liable, whether singly or jointly, pursuant to the terms of the instrument evidencing such Contingent
Obligation) or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such person is required to perform thereunder) as determined by such person in
good faith. 

        "Contribution, Intercompany Contracting and Offset Agreement" shall mean that certain Contribution, Intercompany Contracting and Offset
Agreement dated as of the date hereof by and among the Loan Parties (other than Foreign Subsidiaries), Collateral Agents and Administrative Agents. 

        "Control" shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies
of a person, whether through the ownership of voting securities, by contract or otherwise, and the terms "Controlling" and
"Controlled" shall have meanings correlative thereto. 

        "Control Agreement" shall have the meaning assigned to such term in the Security Agreement. 

        "Controlled Investment Affiliate" means, as to any person, any other person which directly or indirectly is in Control of, is Controlled
by, or is under common Control with, such person and is organized by such person (or any person Controlling such person) primarily for making equity or debt investments in Holdings or other portfolio
companies. 

        "Cost" shall mean, as determined by the applicable Collateral Agents, in good faith, with respect to Inventory or Canadian Inventory, as
applicable, the lower of (a) landed cost computed on first-in a first-out basis in accordance with GAAP or (b) market value;  provided, that for purposes of the calculation of the Borrowing
Base or the Canadian Borrowing Base, (i) the Cost of the Inventory or the Cost of
the Canadian Inventory shall not include: (A) the portion of the cost of Inventory or Canadian Inventory equal to the profit earned by any Affiliate on the sale thereof to Borrowers or the
Borrowing Base Guarantors or (B) write-ups or write-downs in cost with respect to currency exchange rates, and (ii) notwithstanding anything to the contrary contained herein,
the cost of the Inventory and Canadian Inventory shall be computed in the same manner and consistent with the most recent Inventory Appraisal which has been received and approved by Collateral Agents
in their reasonable discretion. 

17

 

        "Credit Card Agreements" shall mean all agreements now or hereafter entered into by Borrowers or Borrowing Base Guarantors with any credit
card issuer or any credit card processor, as the same now exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, including, without limitation, any
agreements entered into in connection with any Private Label Credit Cards. 

        "Credit Card Receivables" shall mean, collectively, all present and future rights of Borrowers or Borrowing Base Guarantors to payment
from (a) any major credit card issuer or major credit card processor arising from sales of goods or rendition of services to customers who have purchased such goods or services using a credit
or debit card, (b) any major credit card issuer or major credit card processor in connection with the sale or transfer of Accounts arising pursuant to the sale of goods or rendition of services
to customers who have purchased such goods or services using a credit card or a debit card, including, but not limited to, all amounts at any time due or to become due from any major credit card
issuer or major credit card processor under the Credit Card Agreements or otherwise and (c) the issuers of Private Label Credit Cards. 

        "Credit Extension" shall mean, as the context may require, (i) the making of a Loan by a Lender or (ii) the issuance of any
Letter of Credit, or the amendment, extension or renewal of any existing Letter of Credit, by the Issuing Bank. 

        "Current Derivative Exposure" shall mean, as of any date of determination, 100% of the aggregate mark-to-market
exposure then owing by any Borrower under Lender Hedging Agreements, determined by all Lenders that are counterparties to each Lender Hedging Agreement, in good faith and in a commercially reasonable
manner, based on net termination values and calculated as if such Lender Hedging Agreements were terminated as of such determination date and a payment were due thereunder to the Lender or its
Affiliates and furnished to the applicable Agent on a bi-monthly basis (or more frequently, in the commercially reasonable discretion of the applicable Agent). 

        "Debt Issuance" shall mean the incurrence by Holdings or any of its Subsidiaries of any Indebtedness after the Closing Date (other than as
permitted by Section 6.01). 

        "Default" shall mean any event, occurrence or condition which is, or upon notice, lapse of time or both would constitute, an Event of
Default. 

        "Default Rate" shall have the meaning assigned to such term in Section 2.06(e). 

        "Discount Note" shall mean a non-interest bearing promissory note denominated in Canadian Dollars, substantially in the form
of Exhibit K-4, issued by the Canadian Borrower to evidence a BA Equivalent Loan. 

        "Discount Proceeds" shall mean on any day, for any Bankers' Acceptance issued hereunder, an amount calculated on such day by multiplying: 

        (a)   the
face amount of such Bankers' Acceptance by 

        (b)   the
quotient obtained by dividing: 

        (i)    one
by 

        (ii)   the
sum of one plus the product of: 

        A)   the
Discount Rate applicable to such Bankers' Acceptance and 

        B)    a
fraction, the numerator of which is the number of days in the applicable Interest Period and the denominator of which is 365, 

with
the quotient being rounded up or down to the fifth decimal place and 0.00005 being rounded up. 

18

 

        "Discount Rate" means, on any day, with respect to an issue of Bankers' Acceptances, or in respect of a BA Equivalent Loan, with the same
maturity date, (a) for a Lender which is a Schedule I Lender, (i) the average bankers' acceptance discount rate of the appropriate term as quoted on Reuters Screen CDOR Page
determined at or about 10:00 a.m. (Toronto time) on that day or, (ii) if the discount rate for a particular term is not quoted on Reuters Screen CDOR Page, the arithmetic average of the
actual discount rates for bankers' acceptances for such term accepted by any two of the Schedule I banks, chosen by the Canadian Administrative Agent, as of 10:00 a.m. (Toronto time) on
such day, or if such day is not a Business Day, then on the immediately preceding Business Day, and (b) for a Lender which is not a Schedule I Lender, the rate determined by the Canadian
Administrative Agent in accordance with (a) above, plus 10 basis points per annum. 

        "Disqualified Capital Stock" shall mean any Equity Interest which, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable), or upon the happening of any event, (a) matures (excluding any maturity as the result of an optional redemption by the issuer thereof) or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof, in whole or in part, on or prior to the first anniversary of the Final
Maturity Date, (b) is convertible into or exchangeable (unless at the sole option of the issuer thereof) for (i) debt securities or (ii) any Equity Interests referred to in
(a) above, in each case at any time on or prior to the first anniversary of the Final Maturity Date, or (c) contains any repurchase obligation which may come into effect prior to payment
in full of all Obligations; provided, however, that any Equity Interests that would not constitute Disqualified Capital Stock but for provisions thereof
giving holders thereof (or the holders of any security into or for which such Equity Interests is convertible, exchangeable or exercisable) the right to require the issuer thereof to redeem such
Equity Interests upon the occurrence of a change in control or an asset sale occurring prior to the first anniversary of the Final Maturity Date shall not constitute Disqualified Capital Stock if such
Equity Interests provide that the issuer thereof will not redeem any such Equity Interests pursuant to such provisions prior to the repayment in full of the Obligations. 

        "Dividend" with respect to any person shall mean that such person has declared or paid a dividend or returned any equity capital to the
holders of its Equity Interests or authorized or made any other distribution, payment or delivery of property (other than Qualified Capital Stock of such person) or cash to the holders of its Equity
Interests as such, or redeemed, retired, purchased or otherwise acquired, directly or indirectly, for consideration any of its Equity Interests outstanding (or any options or warrants issued by such
person with respect to its Equity Interests), or set aside any funds for any of the foregoing purposes, or shall have permitted any of its Subsidiaries to purchase or otherwise acquire for
consideration any of the Equity Interests of such person outstanding (or any options or warrants issued by such person with respect to its Equity Interests). Without limiting the foregoing,
"Dividends" with respect to any person shall also include all payments made or required to be made by such person with respect to any stock appreciation rights, plans, equity incentive or achievement
plans or any similar plans or setting aside of any funds for the foregoing purposes. 

        "Documentation Agent" shall have the meaning assigned to such term in the preamble hereto. 

        "Dollar Equivalent" shall mean, as to any amount denominated in Canadian dollars on any date of determination, the amount of dollars that
would be required to purchase the amount of Canadian dollars based upon the Spot Selling Rate. 

        "dollars" or "$" shall mean lawful money of the United States. 

        "Eligible Accounts" shall have the meaning assigned to such term in  Section 2.20(a). 

19

 

        "Eligible Assignee" shall mean (a) if the assignment does not include assignment of a Revolving Commitment, (i) any Lender,
(ii) an Affiliate of any Lender, (iii) an Approved Fund and (iv) any other person approved by the applicable Administrative Agent (such approval not to be unreasonably withheld or
delayed) and (b) if the assignment includes assignment of a Revolving Commitment, (i) any Revolving Lender, (ii) an Affiliate of any Revolving Lender, (iii) an Approved
Fund of a Revolving Lender and (iv) any other person approved by the applicable Administrative Agent, the Issuing Bank, the Swingline Lenders and Borrowers (each such approval not to be
unreasonably withheld or delayed); provided that (x) no approval of Borrowers shall be required during the continuance of a Default,
(y) "Eligible Assignee" shall not include US Borrowers or any of their Affiliates or Subsidiaries or any natural person and (z) each Revolving Lender becoming a party hereto pursuant to
an Assignment and Assumption must also arrange to designate an Affiliate as a Canadian Revolving Lender and such Canadian Revolving Lender must also become a party hereto pursuant to such Assignment
and Assumption. 

        "Eligible Canadian Accounts" shall have the meaning assigned to such term in  Section 2.21(a). 

        "Eligible Canadian Inventory" shall mean, subject to adjustment as set forth in  Section 2.21(b), items of Canadian Inventory of the Canadian Borrower and any
Canadian Borrowing Base Guarantors. 

        "Eligible Canadian In-Transit Inventory" means, as of any date of determination, without duplication of other Eligible
Canadian Inventory, Inventory (a) which has been shipped by or on behalf of a supplier from any location for receipt by Canadian Borrower or any Canadian Borrowing Base Guarantor within sixty
(60) days of the date of determination, but which has not yet
been received by Canadian Borrower or such Canadian Borrowing Base Guarantor, (b) for which the purchase order is in the name of Canadian Borrower or any Canadian Borrowing Base Guarantor, and
title has passed to Canadian Borrower or any Canadian Borrowing Base Guarantor, (c) for which the document of title, to the extent applicable, reflects Canadian Borrower or any Canadian
Borrowing Base Guarantor as consignee (along with delivery to Canadian Borrower or such Canadian Borrowing Base Guarantor of the documents of title, to the extent applicable, with respect thereto),
(d) as to which the applicable Collateral Agent has control over the documents of title, to the extent applicable, which evidence ownership of the subject Inventory (such as by the delivery of
a Freight Forwarding Agreement), (e) is covered by insurance reasonably acceptable to the Collateral Agents, and (f) which otherwise is not excluded from the definition of Eligible
Inventory. 

        "Eligible Canadian Lender" means a financial institution that is (i) not a non-resident of Canada for the purpose of
the ITA, or (ii) an "authorized foreign bank" as defined in section 2, of the Bank Act (Canada) and in subsection 248(1) of the ITA, that
is not subject to the restrictions and requirements referred to in subsection 524(2) of the Bank Act (Canada) and which will receive all amounts paid or
credited to it under its Canadian Revolving Loans and under the Loan Documents in respect of its "Canadian banking business" (as defined in subsection 248(1) of the ITA) for the purposes of
paragraph 212(13.3)(a) of the ITA. 

        "Eligible In-Transit Inventory" means, as of any date of determination, without duplication of other Eligible Inventory,
Inventory (a) which has been shipped by or on behalf of a supplier from any location for receipt by either a US Borrower or any US Borrowing Base Guarantor within sixty (60) days of the
date of determination, but which has not yet been received by such US Borrower or US Borrowing Base Guarantor, (b) for which the purchase order is in the name of either a US Borrower or any US
Borrowing Base Guarantor, and title has passed to either a US Borrower or any US Borrowing Base Guarantor, (c) for which the document of title, to the extent applicable, reflects either a US
Borrower or any US Borrowing Base Guarantor as consignee (along with delivery to such a US Borrower or US Borrowing Base Guarantor of the documents of title, to the 

20

 

extent
applicable, with respect thereto), (d) as to which either the applicable Collateral Agent has control over the documents of title, to the extent applicable, which evidence ownership of
the subject Inventory (such as by the delivery of a Freight Forwarding Agreement) or the goods covered by such document of title are expected to be delivered to a distribution center operated by US
Borrowers or any of their Subsidiaries within 20 days of the date such goods become the subject of such document of title, (e) is covered by insurance reasonably acceptable to the
Collateral Agents, and (f) which otherwise is not excluded from the definition of Eligible Inventory. 

        "Eligible Inventory" shall mean, subject to adjustment as set forth in  Section 2.20(b), items of Inventory of the US Borrowers and any US Borrowing Base Guarantors.

        "Eligible Letter of Credit" means, as of any date of determination a Commercial Letter of Credit issued by the Issuing Bank which meet the
following criteria: 

        (a)   the
Inventory being purchased thereunder has not yet been delivered to a US Borrower or any of the US Borrowing Base Guarantors; 

        (b)   The
purchase order for such Inventory is in the name of US Borrowers or any of its US Borrowing Base Guarantors (or Canadian Borrower or any Canadian Borrowing Base
Guarantor, for Letters of Credit issued pursuant to Section 2.18(m)) and the purchase of which is supported by a Commercial Letter of Credit
issued under this Agreement having an initial expiry, subject to the proviso hereto, within 120 days after the date of initial issuance of such Commercial Letter of Credit,  provided that fifty
percent (50%) of the maximum Stated Amount all such Commercial Letters of Credit shall not, at any time, have an initial expiry
greater than ninety (90) days after the original date of issuance of such Commercial Letters of Credit; 

        (c)   Drawing
under such Commercial Letters of Credit requires delivery of a bill of lading or other document of title, which names the US Collateral Agent, a US Borrower or
any of the US Borrowing Base Guarantors or any of their agents as consignee, which evidences ownership of the subject inventory and which complies with the requirements of the applicable Freight
Forwarding Agreement; 

        (d)   the
Inventory is not otherwise included in another category of Eligible Inventory or Eligible In-Transit Inventory; 

        (e)   the
Inventory being purchased thereunder is covered by insurance reasonably acceptable to the Collateral Agents; and 

        (f)    the
Inventory being purchased thereunder is not expected to be excluded from the definition of Eligible Inventory once it has been purchased and delivered. 

        "Embargoed Person" shall have the meaning assigned to such term in Section 6.20. 

        "Environment" shall mean ambient air, indoor air, surface water and groundwater (including potable water, navigable water and wetlands),
the land surface or subsurface strata, natural resources, the workplace or as otherwise defined in any Environmental Law. 

        "Environmental Claim" shall mean any claim, notice, demand, order, action, suit, proceeding or other communication alleging liability for
or obligation with respect to any investigation, remediation, removal, cleanup, response, corrective action, damages to natural resources, personal injury, property damage, fines, penalties or other
costs resulting from, related to or arising out of (i) the presence, Release or threatened Release in or into the Environment of Hazardous Material at any location or (ii) any violation
or alleged violation of any Environmental Law, and shall include any claim seeking damages, contribution, indemnification, cost recovery, compensation or injunctive relief resulting from, related to
or arising out of the presence, Release or threatened 

21

 

Release
of Hazardous Material or alleged injury or threat of injury to health, safety or the Environment. 

        "Environmental Law" shall mean any and all present and future, foreign or domestic, federal, provincial, territorial or state (or any
Subdivision of any of them) treaties, laws, statutes, ordinances, regulations, rules, decrees, orders, judgments, consent orders, consent decrees, code or other binding requirements, and the common
law, relating to protection of public health or the Environment, the Release or threatened Release of Hazardous Material, natural resources or natural resource damages, or occupational safety or
health, and any and all Environmental Permits. 

        "Environmental Permit" shall mean any permit, license, approval, registration, notification, exemption, consent or other authorization
required by or from a Governmental Authority under Environmental Law. 

        "Equipment" shall have the meaning assigned to such term in the applicable Security Agreement. 

        "Equity Financing" shall mean the cash equity investment in Holdings by the Equity Investors as the same is further invested in cash
equity in the US Borrowers on or prior to the Closing Date, in an amount not less than $600 million on terms and conditions satisfactory to the Administrative Agents;  provided that Sponsor and its
Controlled Investment Affiliates shall, directly or indirectly, invest at least 50% of the aggregate amount of the Equity
Financing. 

        "Equity Interest" shall mean, with respect to any person, any and all shares, interests, participations or other equivalents, including
membership interests (however designated, whether voting or nonvoting), of equity of such person, including, if such person is a partnership, partnership interests (whether general or limited) and any
other interest or participation that confers on a person the right to receive a share of the profits and losses of, or distributions of property of, such partnership, whether outstanding on the date
hereof or issued after the Closing Date, but excluding debt securities convertible or exchangeable into such equity. 

        "Equity Investors" shall mean Sponsor, its Controlled Investment Affiliates and one or more investors reasonably satisfactory to the
Administrative Agents and the Arranger. 

        "Equity Issuance" shall mean, without duplication, (i) any issuance or sale by Holdings after the Closing Date of any Equity
Interests in Holdings (including any Equity Interests issued upon exercise of any warrant or option) or any warrants or options to purchase Equity Interests or (ii) any contribution to the
capital of Holdings; provided, however, that an Equity Issuance shall not include (x) any Preferred Stock Issuance or Debt Issuance,
(y) any such sale or issuance by Holdings of not more than an aggregate amount of 5.0% of its Equity Interests (including its Equity Interests issued upon exercise of any warrant or option or
warrants or options to purchase its Equity Interests but excluding Disqualified Capital Stock), in each case, to directors, officers or employees of any Company and (z) any Excluded Issuance. 

        "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as the same may be amended from time to time. 

        "ERISA Affiliate" shall mean, with respect to any person, any trade or business (whether or not incorporated) that, together with such
person, is treated as a single employer under Section 414 (b), (c) or (m) of the Code. 

        "ERISA Event" shall mean (a) any "reportable event," as defined in Section 4043 of ERISA or the regulations issued
thereunder, with respect to a Plan (other than an event for which the 30-day notice period is waived by regulation); (b) the existence with respect to any Plan of an "accumulated
funding deficiency" (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the failure to make by its due date a required installment 

22

 

under
Section 412(m) of the Code with respect to any Plan or the failure to make any required contribution to a Multiemployer Plan; (d) the filing pursuant to Section 412(d) of
the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (e) the incurrence by any Company of any liability under
Title IV of ERISA with respect to the termination of any Plan; (f) the incurrence by the Company of material liability, under Title IV of ERISA with respect to a defined benefit pension plan
maintained by an ERISA Affiliate or a multi-employer plan (as defined in ERISA Section 3 (37)) contributed to by an ERISA Affiliate (g) the receipt by any Company from the PBGC or a plan
administrator of any notice relating to the intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan, or the occurrence of any event or condition which could reasonably
be expected to constitute grounds under ERISA for the termination of, or the appointment of a trustee to administer, any Plan; (h) the incurrence by any Company of any liability with respect to
the withdrawal from any Plan or Multiemployer Plan; (i) the receipt by any Company of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan
is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA; (j) the "substantial cessation of operations" within the meaning of Section 4062(e) of
ERISA with respect to a Plan; (k) the making of any amendment to any Plan which could result in the imposition of a Lien or the posting of a bond or other security; and (l) the
occurrence of a nonexempt prohibited transaction (within the meaning of Section 4975 of the Code or Section 406 of ERISA) which could reasonably be expected to result in liability to any
Company. 

        "Eurodollar Borrowing" shall mean a Borrowing comprised of Eurodollar Loans. 

        "Eurodollar Loan" shall mean any Eurodollar Revolving Loan. 

        "Eurodollar Revolving Borrowing" shall mean a Borrowing comprised of Eurodollar Revolving Loans. 

        "Eurodollar Revolving Loan" shall mean any Revolving Loan bearing interest at a rate determined by reference to the Adjusted LIBOR Rate in
accordance with the provisions of Article II. 

        "Event of Default" shall have the meaning assigned to such term in Section 8.01. 

        "Excess Amount" shall have the meaning assigned to such term in  Section 2.10(f)(iii). 

        "Excess Availability" shall mean, at any time, (a) the lesser of (i) the Revolving Commitments of all of the Lenders and
(ii) (x) the Borrowing Base plus (y) the lesser of the Canadian Borrowing Base and the Canadian Revolving Commitments on the date of determination less (b) all outstanding
Loans and LC Exposure less (c) in the applicable Collateral Agents' reasonable discretion, the aggregate amount of all the outstanding and unpaid trade payables and other obligations of
Borrowers and/or the Borrowing Base Guarantors which are not paid within 75 days past the due date according to their original terms of sale, in each case as of such date of determination less
(d) in the applicable Collateral Agents' reasonable discretion, and without duplication, the amount of checks issued by Borrowers and/or the Borrowing Base Guarantors to pay trade payables and
other obligations but which are not paid within 75 days past the due date according to their original terms of sale, in each case as of such date of determination, but which either have not yet
been sent or are subject to other arrangements which are expected to delay the prompt presentation of such checks for payment. 

        "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended. 

        "Excluded Issuance" shall mean an issuance and sale of Qualified Capital Stock of Holdings, to the extent such Qualified Capital Stock is
used, or the Net Cash Proceeds thereof shall be, 

23

 

within
ninety (90) days of the consummation of such issuance and sale, used, without duplication, to finance Capital Expenditures or one or more Permitted Acquisitions. 

        "Excluded Taxes" shall mean, with respect to the Administrative Agents, any Lender, the Issuing Bank or any other recipient of any payment
to be made by or on account of any obligation of Borrowers hereunder, (a) taxes imposed on or measured by its overall net income (however denominated), franchise taxes imposed on it (in lieu of
net income taxes) and branch profits taxes imposed on it, by a jurisdiction (or any political subdivision thereof) as a result of the recipient being organized or having its principal office or, in
the case of any Lender, its applicable lending office in such jurisdiction; (b) in the case of a Foreign Lender, any U.S. federal withholding tax that (i) is imposed on amounts payable
to such Foreign Lender at the time such Foreign Lender becomes a party hereto (or designates a new lending office), except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from Borrowers with respect to such withholding tax pursuant to  Section 2.15(a) or
(y) if such Foreign Lender is an assignee pursuant to a request by Borrowers under  Section 2.16; provided that this subclause (b)(i) shall
not apply to any Tax imposed on a
Lender following an Event of Default or in connection with an interest or participation in any Loan or other obligation that such Lender was required to acquire pursuant to  Section 2.14(d), or
(ii) is attributable to such Lender's failure to comply with  Section 2.15(e); and (c) those Canadian federal withholding taxes under Part XIII of the ITA, if any, in excess of the
amount of
such taxes that would have been imposed had the recipient of the particular payment been, at the time of the payment, a resident of the United States for the purposes of the Canada-United States
Income Tax Convention (1980), as amended from time to time, and entitled to the reduced withholding tax rate provided under paragraph 2 of Article XI thereof (such rate, for greater
certainty, being 10% (ten percent) as at the date of this Agreement). 

        "Executive Order" shall have the meaning assigned to such term in Section 3.22. 

        "Existing Issuing Bank Letters of Credit" shall mean the outstanding letters of credit issued before the date hereof by an Issuing Bank
for the account of a Borrower or a Subsidiary of a Borrower set forth on Schedule 1.01(c) hereto. 

        "Existing Lender Letters of Credit" shall mean the outstanding letters of credit issued before the date hereof by Bank of America, N.A.
for the account of a Borrower or a Subsidiary of a Borrower set forth on Schedule 1.01(d) hereto. 

        "Existing Lien" shall have the meaning assigned to such term in Section 6.02(c). 

        "Federal Funds Effective Rate" shall mean, for any day, the weighted average of the rates on overnight federal funds transactions with
members of the Federal Reserve System of the United States arranged by federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate
is not so published for any day that is a Business Day, the average of the quotations for the day for such transactions received by the Administrative Agent from three federal funds brokers of
recognized standing selected by it. 

        "Fee Letter" shall mean that certain Bank Fee Letter dated as of November 7, 2005 by and among UBS, UBSS, Bear Stearns, Bear
Stearns Corporate Lending, Inc., Holdings and Merger Sub Co., as the same may be amended, amended and restated, supplemented, revised or modified from time to time. 

        "Fees" shall mean the Commitment Fees, the Administrative Agent Fees, The Collateral Monitoring Fees, the LC Participation Fees and the
Fronting Fees. 

        "Final Maturity Date" shall mean the Revolving Maturity Date. 

24

 

        "Financial Officer" of any person shall mean the chief financial officer, principal accounting officer, treasurer or controller of such
person. 

        "FIRREA" shall mean the Federal Institutions Reform, Recovery and Enforcement Act of 1989, as amended. 

        "First Priority" means, with respect to any Lien purported to be created in any Collateral pursuant to any Security Document, that such
Lien is the most senior Lien to which such Collateral is subject (subject to Permitted Liens). 

        "Foreign Lender" shall mean any Lender that is not, for United States federal income tax purposes, (i) an individual who is a
citizen or resident of the United States, (ii) a corporation, partnership or other entity treated as a corporation or partnership created or organized in or under the laws of the United States,
or any political subdivision thereof, (iii) an estate whose income is subject to U.S. federal income taxation regardless of its source or (iv) a trust if a court within the United States
is able to exercise primary supervision over the administration of such trust and one or more United States persons have the authority to control all substantial decisions of such trust. 

        "Foreign Plan" shall mean any defined benefit pension plan, program, policy, arrangement or agreement maintained or contributed to by any
Company with respect to employees employed outside the United States. 

        "Foreign Subsidiary" shall mean a Subsidiary that is organized under the laws of a jurisdiction other than the United States or any state
thereof or the District of Columbia. 

        "Freight Forwarding Agreement" means a multi-party agreement in a form and substance satisfactory to Collateral Agents among a Borrower, a
customs broker, freight forwarder, or other carrier, and the applicable Collateral Agents in which the customs broker, freight forwarder, or other carrier acknowledges that it has control over (in the
case of persons other than carriers which are issuing non-negotiable bills of lading) and holds the documents evidencing ownership of the subject Inventory or other property for the
benefit of such Collateral Agents and agrees, upon notice from such Collateral Agent to hold and dispose of the subject Inventory and other property solely as directed by the such Collateral Agent. 

        "Fronting Fee" shall have the meaning assigned to such term in Section 2.05(d). 

        "Fund" shall mean 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. 

        "GAAP" shall mean generally accepted accounting principles in the United States applied on a consistent basis. 

        "Governmental Authority" shall mean the government of the United States of America or any other nation, or of any political subdivision
thereof, whether state, provincial, territorial or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank). 

        "Governmental Real Property Disclosure Requirements" shall mean any Requirement of Law of any Governmental Authority requiring
notification of the buyer, lessee, mortgagee, assignee or other transferee of any Real Property, facility, establishment or business, or notification, registration or filing to or with any
Governmental Authority, in connection with the sale, lease, mortgage, assignment or other transfer (including any transfer of control) of any Real Property, 

25

 

facility,
establishment or business, of the actual or threatened presence or Release in or into the Environment, or the use, disposal or handling of Hazardous Material on, at, under or near the Real
Property, facility, establishment or business to be sold, leased, mortgaged, assigned or transferred. 

        "Guaranteed Obligations" shall have the meaning assigned to such term in  Section 7.01. 

        "Guarantees" shall mean the guarantees issued pursuant to Article VII by Holdings
and the Subsidiary Guarantors. 

        "Guarantors" shall mean Holdings, each Borrowing Base Guarantor and the Subsidiary Guarantors. 

        "Hazardous Materials" shall mean the following: hazardous substances; hazardous wastes; polychlorinated biphenyls
("PCBs") or any substance or compound containing PCBs; asbestos or any asbestos-containing materials in any form or condition; radon or any other
radioactive materials including any source, special nuclear or by-product material; petroleum, crude oil or any fraction thereof; and any other pollutant or contaminant or chemicals,
wastes, materials, compounds, constituents or substances, subject to regulation or which can give rise to liability under any Environmental Laws. 

        "Hedging Agreement" shall mean any swap, cap, collar, forward purchase or similar agreements or arrangements dealing with interest rates,
currency exchange rates or commodity prices, either generally or under specific contingencies entered into for the purpose of hedging any Borrower's exposure to interest or exchange rates, loan credit
exchange, security or currency valuations or commodity prices not for speculative purposes. 

        "Hedging Obligations" shall mean obligations under or with respect to Hedging Agreements. 

        "Holdings" shall have the meaning assigned to such term in the preamble hereto. 

        "Incorporated Borrowing Base" shall mean at any time, for each US Borrowing Base Guarantor, subject to adjustment as provided in  Section 2.20, an amount equal to
the lesser of: 

        (a)   the
sum of, without duplication: 

        (i)    the
book value of Eligible Accounts of such US Borrowing Base Guarantor multiplied by the advance rate of 85%, plus

        (ii)   (A)
at any time other than during a Seasonal Advance Period, the lesser of (x) the advance rate of 70% of the Cost of Eligible Inventory of US Borrowing Base
Guarantors, and (y) the advance rate of 85% of the Net Recovery Cost Percentage multiplied by the Cost of Eligible Inventory of US Borrowing Base Guarantors and (B) during a Seasonal
Advance Period, the lesser of (x) the advance rate of 80% of the Cost of Eligible Inventory of US Borrowing Base Guarantors, and (y) the advance rate of 90% of the Net Recovery Cost
Percentage multiplied by the Cost of Eligible Inventory of US Borrowing Base Guarantors, or

        (b)   with
respect to the US Borrowing Base Guarantors, the applicable Borrowing Base Guarantor Intercompany Loan Amount. 

        "Increase Effective Date" shall have the meaning assigned to such term in  Section 2.19(a). 

        "Increase Joinder" shall have the meaning assigned to such term in Section 2.19(c). 

        "Indebtedness" of any person shall mean, without duplication, (a) all obligations of such person for borrowed money or advances;
(b) all obligations of such person evidenced by bonds, debentures, notes or similar instruments; (c) all obligations of such person under conditional sale or other title retention
agreements relating to property purchased by such person; (d) all 

26

 

obligations
of such person issued or assumed as the deferred purchase price of property or services (excluding trade accounts payable and accrued obligations incurred in the ordinary course of
business on normal trade terms and not overdue by more than 90 days); (e) all Indebtedness of others secured by any Lien on property owned or acquired by such person, whether or not the
obligations secured thereby have been assumed, but limited to the fair market value of such property; (f) all Capital Lease Obligations, Purchase Money Obligations and synthetic lease
obligations of such person; (g) all Hedging Obligations to the extent required to be reflected on a balance sheet of such person; (h) all obligations of such person for the reimbursement
of any obligor in respect of Standby Letters of Credit, letters of guaranty, bankers' acceptances and similar credit transactions; and (i) all Contingent Obligations of such person in respect
of Indebtedness or obligations of others of the kinds referred to in clauses (a) through (h) above. The Indebtedness of any person shall include the Indebtedness of any other entity
(including any partnership in which such person is a general partner) to the extent such person is liable therefor as a result of such person's ownership interest in or other relationship with such
entity, except (other than in the case of general partner liability) to the extent that terms of such Indebtedness expressly provide that such person is not liable therefor. 

        "Indemnified Taxes" shall mean all Taxes other than Excluded Taxes. 

        "Indemnitee" shall have the meaning assigned to such term in Section 11.03(b). 

        "Information" shall have the meaning assigned to such term in Section 11.12. 

        "Insolvency Laws" shall mean any of the BIA, the Companies' Creditors Arrangement Act
(Canada), and the Winding-Up and Restructuring Act (Canada), each as now exists or may from time to time hereafter be amended, modified,
recodified, supplemented or replaced, together with all rules, regulations and interpretations thereunder or related thereto, and any other applicable insolvency or other similar law of any
jurisdiction, including any law of any jurisdiction permitting a debtor to obtain a stay or a compromise of the claims of its creditors against it. 

        "Instruments" shall mean all "instruments," as such term is defined in the UCC as in effect on the date hereof in the State of New York or
as defined in the PPSA, as applicable, in which any Person now or hereafter has rights. 

        "Insurance Policies" shall mean the insurance policies and coverages required to be maintained by each Loan Party which is an owner of
Mortgaged Property with respect to the applicable Mortgaged Property pursuant to Section 5.04 and all renewals and extensions thereof. 

        "Insurance Requirements" shall mean, collectively, all provisions of the Insurance Policies, all requirements of the issuer of any of the
Insurance Policies and all orders, rules, regulations and any other requirements of the National Board of Fire Underwriters (or any other body exercising similar functions) binding upon each Loan
Party which is an owner of Mortgaged Property and applicable to the Mortgaged Property or any use or condition thereof. 

        "Intellectual Property" shall have the meaning assigned to such term in  Section 3.06(a). 

        "Intercompany Note" shall mean a promissory note substantially in the form of  Exhibit P. 

        "Intercreditor Agreement" shall mean that certain Intercreditor Agreement dated as of the date hereof by and among Holdings, US Borrowers,
Canadian Borrower, the Subsidiary Guarantors party thereto, US Administrative Agent, US Collateral Agents, Canadian Collateral Agents and Senior Note Collateral Agent, as the same may be amended,
restated, supplemented or otherwise modified from time to time. 

        "Interest Election Request" shall mean a request by a Borrower to convert or continue a Revolving Borrowing in accordance with  Section 2.08(b), substantially in the
form of Exhibit E. 

27

 

        "Interest Payment Date" shall mean (a) with respect to any ABR Loan or Canadian Prime Rate Loan, the last Business Day of each
March, June, September and December to occur during any period in which such Loan is outstanding, (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurodollar Loan with an Interest Period of more than three months' duration, each day prior to the last day of such Interest Period that
occurs at intervals of three months' duration after the first day of such Interest Period, (c) with respect to any Swingline Loan, the last Business Day of each month to occur during any period
in which such Swingline Loan is outstanding and (d) with respect to any Revolving Loan or Swingline Loan, the Revolving Maturity Date or such earlier date on which the Revolving Commitments are
terminated. 

        "Interest Period" shall mean, with respect to any Eurodollar Borrowing or Bankers' Acceptance, the period commencing on the date of such
Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months (or, if each affected Lender so agrees, nine or twelve months) thereafter as the
applicable Borrower may elect; provided that with respect to any Eurodollar Borrowing (a) if any Interest Period would end on a day other than a
Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest
Period shall end on the next preceding Business Day, and (b) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a
Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion, rollover or continuation of such Borrowing. 

        "Inventory" shall mean all "inventory," as such term is defined in the UCC as in effect on the date hereof in the State of New York, or as
defined in the PPSA, as applicable, wherever located, in which any Person now or hereafter has rights. 

        "Inventory Appraisal" shall mean (a) on the Closing Date, the audit prepared by the Great American Appraisal & Valuation
Services, L.L.C. dated December, 2005 and (b) thereafter, the most recent inventory appraisal conducted by an independent appraisal firm and delivered pursuant to  Section 9 hereof. 

        "Investments" shall have the meaning assigned to such term in Section 6.04. 

        "Issuing Bank" shall mean, as the context may require, (a) UBS AG, Stamford Branch, in its capacity as issuer of Letters of Credit
issued by it; (b) Wachovia Bank, National Association in its capacity as issuer of Letters of Credit issued by it; (c) The Bank of New York in its capacity as issuer of Letters of Credit
issued by it; (d) National City Bank in its capacity as issuer of Letters of Credit issued by it; (e) any other Lender that may become an Issuing Bank pursuant to  Sections 2.18(j) and
(k) in its capacity as issuer of Letters of Credit issued by such Lender; or
(f) collectively, all of the foregoing. 

        "ITA" means the Income Tax Act, RSC 1985, c.1 (5th supp), as amended from time to time. 

        "Joinder Agreement" shall mean a joinder agreement substantially in the form of  Exhibit F. 

        "Landlord Access Agreement" shall mean a Landlord Access Agreement, substantially in the form of  Exhibit G, or such other form as may reasonably be acceptable to
the applicable Administrative Agent. 

        "LC Acceptance(s)" shall mean acceptances that are created by an Issuing Bank pursuant to Commercial Letters of Credit. 

28

 

        "LC Collateral Account" shall mean a collateral account in the form of a deposit account established and maintained by the applicable
Collateral Agents for the benefit of the Secured Parties, in accordance with the provisions of Section 9.01. 

        "LC Commitment" shall mean the commitment of the Issuing Bank to issue Letters of Credit pursuant to  Section 2.18. The total amount of the LC Commitment shall
initially be $400 million, but in no event exceed the Revolving Commitment. 

        "LC Disbursement" shall mean a payment or disbursement made by the Issuing Bank pursuant to a Letter of Credit or a LC Acceptance. 

        "LC Exposure" shall mean at any time the sum of (a) the Dollar Equivalent of the aggregate undrawn amount of all outstanding
Letters of Credit at such time plus (b) the Dollar Equivalent of the aggregate principal amount of all Reimbursement Obligations outstanding at
such time, plus, (c) the Dollar Equivalent of the aggregate amount owing on all outstanding LC Acceptances. The LC Exposure of any Revolving
Lender at any time shall mean its Pro Rata Percentage of the aggregate LC Exposure at such time. 

        "LC Obligations" shall mean each payment required to be made by US Borrowers and the other Loan Parties under this Agreement in respect of
any Letter of Credit or LC Acceptance, when and as due, including payments in respect of Reimbursement Obligations, interest thereon and obligations to provide cash collateral. 

        "LC Participation Fee" shall have the meaning assigned to such term in  Section 2.05(d). 

        "LC Request" shall mean a request by a Borrower in accordance with the terms of  Section 2.18(b) and substantially in the form of Exhibit H, or such other form as shall be
approved by the Administrative Agents. 

        "Leases" shall mean any and all leases, subleases, tenancies, options, concession agreements, rental agreements, occupancy agreements,
franchise agreements, access agreements and any other agreements (including all amendments, extensions, replacements, renewals, modifications and/or guarantees thereof), whether or not of record and
whether now in existence or hereafter entered into, affecting the use or occupancy of all or any material portion of any Real Property. 

        "Lender Addendum" shall mean with respect to any Lender on the Closing Date, a lender addendum in the form of  Exhibit I, to be executed and delivered by such Lender
on the Closing Date as provided in  Section 11.15, as the same may be amended, restated, supplemented or otherwise modified from time to time. 

        "Lender Hedging Agreement" shall mean any Hedging Agreement between a Borrower and any Person (or affiliate of such Person) that was a
Lender or an Affiliate of such lender at the time it entered into such Hedging Agreement whether or not such Person has ceased to be a Lender under this Agreement. 

        "Lenders" shall mean (a) the financial institutions that have become a party hereto pursuant to a Lender Addendum and
(b) any financial institution that has become a party hereto pursuant to an Assignment and Assumption, other than, in each case, any such financial institution that has ceased to be a party
hereto pursuant to an Assignment and Assumption. Unless the context clearly indicates otherwise, the term "Lenders" shall include the Swingline Lenders and the Canadian Revolving Lenders. 

        "Letter of Credit" shall mean any (i) Standby Letter of Credit, (ii) Commercial Letter of Credit, in each case, issued or to
be issued by an Issuing Bank for the account of the US Borrowers or the Canadian Borrower pursuant to Section 2.18 and (iii) the Existing
Issuing Bank Letters of Credit. 

29

 

        "Letter of Credit Expiration Date" shall mean the date which is five (5) days prior to the Revolving Maturity Date. 

        "LIBOR Rate" shall mean, with respect to any Eurodollar Borrowing for any Interest Period, the rate per annum determined by the applicable
Administrative Agent to be the arithmetic mean (rounded upward, if necessary, to the nearest 1/100th of 1%) of the offered rates for deposits in dollars with a term comparable to such Interest Period
that appears on the Telerate British Bankers Assoc. Interest Settlement Rates Page (as defined below) at approximately 11:00 a.m., London, England time, on the second full Business Day
preceding the first day of such Interest Period; provided, however, that (i) if no comparable term for an Interest Period is available, the LIBOR
Rate shall be determined using the weighted average of the offered rates for the two terms most nearly corresponding to such Interest
Period and (ii) if there shall at any time no longer exist a Telerate British Bankers Assoc. Interest Settlement Rates Page, "LIBOR Rate" shall mean, with respect to each day during each
Interest Period pertaining to Eurodollar Borrowings comprising part of the same Borrowing, the rate per annum equal to the rate at which the applicable Administrative Agent is offered deposits in
dollars at approximately 11:00 a.m., London, England time, two Business Days prior to the first day of such Interest Period in the London interbank market for delivery on the first day of such
Interest Period for the number of days comprised therein and in an amount comparable to its portion of the amount of such Eurodollar Borrowing to be outstanding during such Interest Period.
"Telerate British Bankers Assoc. Interest Settlement Rates Page" shall mean the display designated as Page 3750 (or other appropriate page if dollars do
not appear on such page) on the Telerate System Incorporated Service (or such other page as may replace such page on such service for the purpose of displaying the rates at which dollar deposits are
offered by leading banks in the London interbank deposit market). 

        "Lien" shall mean, with respect to any property, (a) any mortgage, deed of trust, lien, pledge, encumbrance, claim, charge,
assignment, hypothecation, security interest or encumbrance of any kind or any arrangement to provide priority or preference or any filing of any financing statement or financing change statement
under the UCC or the PPSA or any other similar notice of lien under any similar notice or recording statute of any Governmental Authority, including any easement, right-of-way
or other encumbrance on title to Real Property, in each of the foregoing cases whether voluntary or imposed by law, and any agreement to give any of the foregoing; (b) the interest of a vendor
or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to
such property; and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities. 

        "Line Reserve" shall have the meaning assigned to such term in Section 2.10(f)(ii). 

        "LNT" shall have the meaning assigned to such term in the preamble. 

        "LNT Center" shall have the meaning assigned to such term in the preamble. 

        "LNT Partnership" means Linens 'n Things Canada Limited Partnership, an Alberta limited partnership. 

        "LNT I" means Linens 'n Things Investment Canada I Company, a Nova Scotia unlimited liability company. 

        "LNT II" means Linens 'n Things Investment Canada II Company, a Nova Scotia unlimited liability company. 

        "Loan Documents" shall mean this Agreement, any Borrowing Base Certificate, the Letters of Credit, the Notes (if any), the Intercreditor
Agreement, and the Security Documents. 

        "Loan Parties" shall mean Holdings, Borrowers and the Subsidiary Guarantors. 

30

 

        "Loans" shall mean, as the context may require, a US Revolving Loan, a Canadian Revolving Loan or a Swingline Loan (and shall include any
Loans contemplated by Section 2.19). 

        "Management Services Agreement" means that certain Management Services Agreement dated as of February 14, 2006 among LNT, Holdings,
Apollo Management V, L.P., NRDC Linens B LLC and Silver Point Capital Fund Investments LLC. 

        "Margin Stock" shall have the meaning assigned to such term in Regulation U. 

        "Material Adverse Effect" shall mean (a) a material adverse effect on the business, property, results of operations, prospects or
condition, financial or otherwise, or material agreements of US Borrowers and their Subsidiaries, taken as a whole; (b) material impairment of the ability of the Loan Parties to fully and
timely perform their obligations under the Loan Documents; (c) material impairment of the rights of or benefits or remedies available to the Lenders or the Collateral Agents under any Loan
Document; or (d) a material adverse effect on the Collateral or the Liens in favor of the Collateral Agents (for their benefit and for the benefit of the other Secured Parties) on the
Collateral or the priority of such Liens. 

        "Material Indebtedness" shall mean (a) the Senior Note Documents and (b) any other Indebtedness (other than the Loans and
Letters of Credit) or Hedging Obligations of Holdings or any of its Subsidiaries in an aggregate outstanding principal amount exceeding $30 million. For purposes of determining Material
Indebtedness, the "principal amount" in respect of any Hedging Obligations of any Loan Party at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that such Loan
Party would be required to pay if the related Hedging Agreement were terminated at such time. 

        "Maximum Rate" shall have the meaning assigned to such term in Section 11.14. 

        "Merger" shall have the meaning assigned to such term in the second recital hereto. 

        "Mortgage" shall mean an agreement, including, but not limited to, a mortgage, deed of trust or any other document, creating and
evidencing a Lien on a Mortgaged Property, which shall be substantially in a form reasonably satisfactory to the applicable Collateral Agents, in each case, with such schedules and including such
provisions as shall be reasonably necessary to conform such document to applicable local or foreign law or as shall be customary under applicable local or foreign law. 

        "Mortgaged Property" shall mean (a) each Real Property identified as a Mortgaged Property on  Schedule 8(a) to the Perfection Certificate dated the Closing Date
and (b) each Real Property, if any, which shall be subject to a
Mortgage delivered after the Closing Date pursuant to Section 5.11(c). 

        "Multiemployer Plan" shall mean a multiemployer plan within the meaning of Section 4001(a)(3) or Section 3(37) of ERISA
(a) to which any Company is then making or accruing an obligation to make contributions; (b) to which any Company has within the preceding five plan years made contributions; or
(c) with respect to which any Company could incur liability. 

        "Net Cash Proceeds" shall mean: 

        (a)   with
respect to any Asset Sale (other than any issuance or sale of Equity Interests), the cash proceeds received by Holdings or any of its Subsidiaries (including cash
proceeds subsequently received (as and when received by Holdings or any of its Subsidiaries) in respect of non-cash consideration initially received) net of (i) selling expenses
(including reasonable brokers' fees or commissions, legal, accounting and other professional and transactional fees, transfer and similar taxes and Borrowers' good faith estimate of income taxes paid
or payable in connection with such sale); (ii) amounts reasonably estimated by Holdings or any of its 

31

 

Subsidiaries
as a reserve, in accordance with GAAP, against (x) any liabilities under any indemnification obligations associated with such Asset Sale or (y) any other liabilities
retained by Holdings or any of its Subsidiaries associated with the properties sold in such Asset Sale (provided that, to the extent and at the time any
such amounts are released from such reserve, such amounts shall constitute Net Cash Proceeds); (iii) Borrowers' good faith estimate of payments required to be made with respect to unassumed
liabilities relating to the properties sold within 90 days of such Asset Sale (provided that, to the extent such cash proceeds are not used to
make payments in respect of such unassumed liabilities within 90 days of such Asset Sale, such cash proceeds shall constitute Net Cash Proceeds); and (iv) the principal amount, premium
or penalty, if any, interest and other amounts on any Indebtedness for borrowed money (other than Obligations) which is secured by a Lien on the properties sold in such Asset Sale (so long as such
Lien was permitted to encumber such properties under the Loan Documents at the time of such sale) and which is repaid with such proceeds (other than any such Indebtedness assumed by the purchaser of
such properties); 

        (b)   with
respect to any Debt Issuance, any Equity Issuance or any other issuance or sale of Equity Interests by Holdings or any of its Subsidiaries, the cash proceeds
thereof, net of customary fees, commissions, costs and other expenses incurred in connection therewith; and 

        (c)   with
respect to any Casualty Event, the cash insurance proceeds, condemnation awards and other compensation received in respect thereof, net of all reasonable costs and
expenses incurred in connection with the collection of such proceeds, awards or other compensation in respect of such Casualty Event. 

        "Net Income" means, with respect to any specified person, the net income (loss) of such person, determined in accordance with GAAP and
before any reduction in respect of preferred stock dividends, excluding for the purposes of the calculation of the Consolidated Fixed Charge Coverage Ratio only, however: 

        (i)    any
gain (but not loss), together with any related provision for taxes on such gain (but not loss), realized in connection with: (a) any Asset Sale; or
(b) the disposition of any securities by such person or any of its Subsidiaries or the extinguishment of any Indebtedness of such person or any of its Subsidiaries; and 

        (ii)   any
extraordinary gain (but not loss), together with any related provision for taxes on such extraordinary gain (but not loss). 

        "Net Recovery Cost Percentage" shall mean the fraction, expressed as a percentage, (a) the numerator of which is the amount equal
to the recovery on the aggregate amount of the Inventory or Canadian Inventory, as applicable, at such time on a "net orderly liquidation value" basis as set forth in the most recent Inventory
Appraisal received by Collateral Agents in accordance with Section 4.01 or Section 9, net
of operating expenses, liquidation expenses and commissions reasonably anticipated in the disposition of such assets, and (b) the denominator of which is the original Cost of the aggregate
amount of the Inventory or the Canadian Inventory, as applicable, subject to appraisal. 

        "Non-BA Lender" shall mean a Canadian Revolving Lender that cannot or does not, as a matter of policy, accept Bankers'
Acceptances. 

        "Non-Guarantor Subsidiary" shall mean each Subsidiary that is not a Subsidiary Guarantor. 

        "Notes" shall mean any notes evidencing the Revolving Loans or Swingline Loans issued pursuant to this Agreement, if any, substantially in
the form of Exhibit K-1, K-2,  K-3 or K-4. 

        "Obligations" shall mean (a) obligations of Borrowers and the other Loan Parties from time to time arising under or in respect of
the due and punctual payment of (i) the principal of and 

32

 

premium,
if any, and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in
such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (ii) each payment required to be made by Borrowers
and the other Loan Parties under this Agreement in respect of any Letter of Credit or LC Acceptance, when and as due, including payments in respect of Reimbursement Obligations, interest thereon and
obligations to provide cash collateral and (iii) all other monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or
otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such
proceeding), of Borrowers and the other Loan Parties under this Agreement and the other Loan Documents, (b) the due and punctual performance of all covenants, agreements, obligations and
liabilities of Borrowers and the other Loan Parties under or pursuant to this Agreement and the other Loan Documents, (c) the due and punctual payment and performance of all obligations of the
Borrowers and any and all of the other Loan Parties under each Lender Hedging Agreement and (d) the due and punctual payment and performance of all obligations in respect of overdrafts and
related liabilities owed to any Lender, any Affiliate of a Lender, the Administrative Agents or the Collateral Agents arising from treasury, depositary and cash management services or in connection
with any automated clearinghouse transfer of funds. 

        "OFAC" shall have the meaning assigned to such term in Section 3.22. 

        "Officers' Certificate" shall mean a certificate executed by the chairman of the Board of Directors (if an officer), the chief executive
officer, the president or one of the Financial Officers, each in his or her official (and not individual) capacity. 

        "Organizational Documents" shall mean, with respect to any person, (i) in the case of any corporation, the certificate of
incorporation and by-laws (or similar documents) of such person, (ii) in the case of any limited liability company, the certificate of formation and operating agreement (or similar
documents) of such person, (iii) in the case of any limited partnership, the certificate of formation and limited partnership agreement (or similar documents) of such person, (iv) in the
case of any general partnership, the partnership agreement (or similar document) of such person, (v) with respect to any Foreign Subsidiary, the equivalent of the foregoing in its jurisdiction
of incorporation or organization, and (vi) in any other case, the functional equivalent of the foregoing. 

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

        "Participant" shall have the meaning assigned to such term in Section 11.04(d). 

        "PBGC" shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA. 

        "Perfection Certificate" shall mean a certificate in the form of  Exhibit L-1 or any other form approved by the Collateral Agents, as the same shall be supplemented
from time to time by a Perfection
Certificate Supplement or otherwise. 

        "Perfection Certificate Supplement" shall mean a certificate supplement in the form of  Exhibit L-2 or any other form approved by the Collateral Agents. 

        "Permitted Acquisition" shall mean any transaction or series of related transactions for the direct or indirect (a) acquisition of
all or substantially all of the property of any person, or of any 

33

 

line
of business or division of any person; (b) acquisition of in excess of 50% of the Equity Interests of any person, and otherwise causing such person to become a Subsidiary of such person;
or (c) merger, amalgamation or consolidation or any other combination with any person, if each of the following conditions is met: 

        (i)    no
Default then exists or would result therefrom; 

        (ii)   after
giving effect to such transaction on a Pro Forma Basis, (A) Average Excess Availability determined as of the date five (5) Business Days prior to
the Closing Date of such acquisition would have exceeded $150 million (after giving effect to such acquisition and the Revolving Loans to be funded in connection therewith as if made on the
first day of such period), and (B) the projections in connection with the proposed acquisition for the 2 years after the consummation of such acquisition shall be reasonably acceptable
to the Collateral Agents and Administrative Agents; 

        (iii)  no
Company shall, in connection with any such transaction, assume or remain liable with respect to any Indebtedness or other liability (including any material tax or
ERISA liability) of the related seller or the business, person or properties acquired, except (A) to the extent permitted under  Section 6.01 and (B) obligations not constituting
Indebtedness incurred in the ordinary course of business and necessary or desirable to
the continued operation of the underlying properties, and any other such liabilities or obligations not permitted to be assumed or otherwise supported by any Company hereunder shall be
paid in full or released as to the business, persons or properties being so acquired on or before the consummation of such acquisition; 

        (iv)  the
person or business to be acquired shall be, or shall be engaged in, a business of the type that US Borrowers and their Subsidiaries are permitted to be engaged in
under Section 6.15 and the property acquired in connection with any such transaction shall be made subject to the Lien of the Security Documents
and shall be free and clear of any Liens, other than Permitted Liens; 

        (v)   the
Board of Directors of the person to be acquired shall not have indicated publicly its opposition to the consummation of such acquisition (which opposition has not
been publicly withdrawn); 

        (vi)  all
transactions in connection therewith shall be consummated in accordance with all applicable Requirements of Law; 

        (vii) with
respect to any transaction involving Acquisition Consideration of more than $100 million, unless the Administrative Agent shall otherwise agree, Borrowers
shall have provided the Administrative Agents and the Lenders with (A) historical financial statements for the last three fiscal years (or, if less, the number of years since formation) of the
person or business to be acquired (audited if available without undue cost or delay) and unaudited financial statements thereof for the most recent interim period which are available,
(B) reasonably detailed projections for the succeeding five years pertaining to the person or business to be acquired and updated projections for Borrower after giving effect to such
transaction, (C) a reasonably detailed description of all material information relating thereto and copies of all material documentation pertaining to such transaction, and (D) all such
other information and data relating to such transaction or the person or business to be acquired as may be reasonably requested by the Administrative Agents or the Required Lenders; 

        (ix)  the
Property acquired in connection with any such acquisition shall be made subject to the Lien of the Security Documents on terms reasonably satisfactory to the
Agents, and shall be free and clear of any Liens, other than Permitted Liens, and the Agents shall have received all opinions, certificates, lien search results and other documents reasonably
requested by the Agents; 

34

  

        (x)   at
least 10 Business Days prior to the proposed date of consummation of the transaction, Borrowers shall have delivered to the Agents and the Lenders an Officers'
Certificate certifying that (A) such transaction complies with this definition (which shall have attached thereto reasonably detailed backup data and calculations showing such compliance), and
(B) such transaction could not reasonably be expected to result in a Material Adverse Effect; and 

        (xi)  the
Acquisition Consideration (exclusive of any amounts financed by Excluded Issuances) for such acquisition shall not exceed $300 million, and the aggregate
amount of the Acquisition Consideration (exclusive of any amounts financed by Excluded Issuances) for all Permitted Acquisitions since the Closing Date shall not exceed $500 million;  provided that
any Equity Interests constituting all or a portion of such Acquisition Consideration shall not have a cash dividend requirement on or
prior to the Final Maturity Date. 

        "Permitted Discretion" shall mean a determination made in good faith and in the exercise of reasonable (from the perspective of a secured
asset based lender) business judgment. 

        "Permitted Holders" shall mean (a) Sponsor, (b) its Controlled Investment Affiliates, (c) Silver Point Capital, L.P.
and National Realty & Development Corp. and (d) each such person's Related Parties. 

        "Permitted Liens" shall have the meaning assigned to such term in Section 6.02. 

        "Permitted Tax Distributions" shall mean payments, dividends or distributions by US Borrowers and any US Subsidiaries to Holdings in order
to pay consolidated or combined federal, state or local taxes, including estimated taxes, not payable directly by US Borrowers or any of their Subsidiaries which payments by US Borrowers and their US
Subsidiaries are not in excess of the tax liabilities that would have been payable by US Borrowers and their Subsidiaries on a stand-alone basis. 

        "person" shall mean any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership,
Governmental Authority or other entity. 

        "Plan" shall mean any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or
Section 412 of the Code or Section 302 of ERISA which is
maintained or contributed to by any Company or with respect to which any Company could incur liability (including under Section 4069 of ERISA) other than plans of ERISA Affiliates. 

        "Post-Increase Revolving Lenders" shall have the meaning assigned to such term in  Section 2.19(d). 

        "PPSA" shall mean the Personal Property Security Act (Ontario) and the Regulations
thereunder, as from time to time in effect, provided, however, if attachment, perfection or priority of any Agent's security interest in any Collateral is governed by the personal property security
laws of any jurisdiction other than Ontario, PPSA shall mean those personal property security laws in such other jurisdiction of Canada for the purposes of the provisions hereof relating to such
attachment, perfection or priority and for the definitions related to such provisions. 

        "Pre-Increase Revolving Lenders" shall have the meaning assigned to such term in  Section 2.19(d). 

        "Preferred Stock" shall mean, with respect to any person, any and all preferred or preference Equity Interests (however designated) of
such person whether now outstanding or issued after the Closing Date. 

35

 

        "Preferred Stock Issuance" shall mean the issuance or sale by Holdings or any of its Subsidiaries of any Preferred Stock after the Closing
Date (other than any Excluded Issuance). 

        "Premises" shall have the meaning assigned thereto in the applicable Mortgage. 

        "Priority Payables" shall mean, at any time, the full amount of the liabilities at such time which have a trust imposed to provide for
payment or security interest, lien or charge ranking or capable of ranking senior to or pari passu with security interests, hypothecs, liens or charges
securing the Obligations on any of the Collateral under federal, provincial, state, county, municipal, or local law including, but not limited, to claims for unremitted and accelerated rents, taxes,
wages, workers' compensation obligations, vacation pay, government royalties or pension fund obligations, together with the aggregate value, determined in accordance with GAAP, of all Eligible
Canadian Inventory which applicable Collateral Agents consider may be or may become subject to a right of a supplier to recover possession thereof under any federal or provincial or territorial law,
where such supplier's right may have priority over the security interests, liens or charges securing the Obligations including, without limitation, Eligible
Canadian Inventory subject to a right of a supplier to repossess goods pursuant to Section 81.1 of the BIA. 

        "Private Label Credit Card" shall mean a credit card that bears either Borrower's trademark and/or logo and is issued by a third party
which takes the credit risk as to customers and makes payments to the Borrowers or Guarantors in a manner similar to other major credit card issuers. 

        "Pro Forma Basis" shall mean on a basis in accordance with GAAP and Regulation S-X and otherwise reasonably
satisfactory to the Administrative Agent. 

        "Pro Rata Percentage" of any Revolving Lender at any time shall mean the percentage of the total Revolving Commitments of all Revolving
Lenders represented by such Lender's Revolving Commitment, and with respect to any Canadian Revolving Lender at any time, the percentage of the total Canadian Revolving Commitments of all Canadian
Revolving Lenders represented by such Canadian Revolving Lender's Canadian Revolving Commitment. 

        "property" shall mean any right, title or interest in or to property or assets of any kind whatsoever, whether real, personal or mixed and
whether tangible or intangible and including Equity Interests or other ownership interests of any person and whether now in existence or owned or hereafter entered into or acquired, including all Real
Property. 

        "Property Material Adverse Effect" shall have the meaning assigned thereto in the Mortgage. 

        "Purchase Money Obligation" shall mean, for any person, the obligations of such person in respect of Indebtedness (including Capital Lease
Obligations) incurred for the purpose of financing all or any part of the purchase price of any property (including Equity Interests of any person) or the cost of installation, construction or
improvement of any property and any refinancing thereof; provided, however, that (i) such Indebtedness is incurred within one year after such
acquisition of such property by such person and (ii) the amount of such Indebtedness does not exceed 100% of the cost of such acquisition, installation, construction or improvement, as the case
may be. 

        "Qualified Capital Stock" of any person shall mean any Equity Interests of such person that are not Disqualified Capital Stock. 

        "Real Property" shall mean, collectively, all right, title and interest (including any leasehold, mineral or other estate) in and to any
and all parcels of or interests in real property owned, leased or operated by any person, whether by lease, license or other means, together with, in each case, all easements, hereditaments and
appurtenances relating thereto, all improvements and appurtenant fixtures. 

36

 

        "Refinancing" shall mean the repayment in full and the termination of any commitment to make extensions of credit under all of the
outstanding indebtedness of Holdings or any of its Subsidiaries listed on Schedule 1.01(a). 

        "Register" shall have the meaning assigned to such term in Section 11.04(c). 

        "Regulation D" shall mean Regulation D of the Board as from time to time in effect and all official rulings and
interpretations thereunder or thereof. 

        "Regulation S-X" shall mean Regulation S-X promulgated under the Securities Act. 

        "Regulation T" shall mean Regulation T of the Board as from time to time in effect and all official rulings and
interpretations thereunder or thereof. 

        "Regulation U" shall mean Regulation U of the Board as from time to time in effect and all official rulings and
interpretations thereunder or thereof. 

        "Regulation X" shall mean Regulation X of the Board as from time to time in effect and all official rulings and
interpretations thereunder or thereof. 

        "Reimbursement Obligations" shall mean Borrowers' obligations under Section 2.18(e)
to reimburse LC Disbursements. 

        "Related Parties" shall mean, with respect to any person, such person's Affiliates and the partners, directors, officers, employees,
agents and advisors of such person and of such person's Affiliates. 

        "Release" shall mean any spilling, leaking, seepage, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching,
dumping, disposing, depositing, dispersing, emanating or migrating of any Hazardous Material in, into, onto or through the Environment. 

        "Required Lenders" shall mean Lenders having more than 50% of the sum of all Loans outstanding, LC Exposure and unused Revolving
Commitments. 

        "Requirements of Law" shall mean, collectively, any and all requirements of any Governmental Authority including any and all laws,
judgments, orders, decrees, ordinances, rules, regulations, statutes or case law. 

        "Reserves" shall mean reserves established against the Borrowing Base or Canadian Borrowing Base that the Collateral Agents may, in their
Permitted Discretion, establish from time to time. 

        "Response" shall mean (a) "response" as such term is defined in CERCLA, 42 U.S.C. § 9601(24), and (b) all
other actions required by any Governmental Authority or voluntarily undertaken to (i) clean up, remove, treat, abate or in any other way address any Hazardous Material in the Environment;
(ii) prevent the Release or threat of Release, or minimize the further Release, of any Hazardous Material; or (iii) perform studies and investigations in connection with, or as a
precondition to, or to determine the necessity of the activities described in, clause (i) or (ii) above. 

        "Responsible Officer" of any person shall mean any executive officer or Financial Officer of such person and any other officer or similar
official thereof with responsibility for the administration of the obligations of such person in respect of this Agreement. 

        "Reuters Screen CDOR Page" shall mean the display designated as page CDOR on the Reuters Monitor Money Rates Service or such other page as
may, from time to time, replace that page on that service for the purpose of displaying bid quotations for bankers' acceptances accepted by leading Canadian banks. 

37

 

        "Revolving Availability Period" shall mean the period from and including the Closing Date to but excluding the earlier of (i) the
Business Day preceding the Revolving Maturity Date and (ii) the date of termination of the Revolving Commitments. 

        "Revolving Borrowing" shall mean a Borrowing comprised of Revolving Loans. 

        "Revolving Commitment" shall mean, with respect to each Lender, the commitment, if any, of such Lender to make Revolving Loans hereunder
up to the amount set forth on Schedule I to the Lender Addendum executed and delivered by such Lender or by an Increase Joinder delivered pursuant to  Section 2.19, or in the Assignment and
Assumption pursuant to which such Lender assumed its Revolving Commitment, as applicable, as the same may
be (a) reduced from time to time pursuant to Section 2.07 and (b) reduced or increased from time to time pursuant to assignments by
or to such Lender pursuant to Section 11.04. The portion of the Revolving Commitments, if any, which may be utilized for Canadian Revolving Loans
shall constitute the Canadian Revolving Commitment, which shall be treated as a sub-facility of the Revolving Commitment and the total Revolving Loans and LC Exposure shall not exceed the
total Revolving Commitments. The aggregate amount of the Lenders' Revolving Commitments on the Closing Date is $600 million. 

        "Revolving Exposure" shall mean, with respect to any Lender at any time, the Dollar Equivalent of the aggregate principal amount at such
time of all outstanding Revolving Loans of such Lender, plus the Dollar Equivalent of the aggregate amount at such time of such Lender's LC Exposure,  plus
the Dollar Equivalent of the aggregate amount at such time of such Lender's Swingline Exposure. 

        "Revolving Lender" shall mean a Lender with a Revolving Commitment and, with respect to any Canadian Revolving Commitment, shall include
the respective Canadian Revolving Lender; it being understood that each Revolving Lender that is not a Canadian Revolving Lender shall have an affiliated Canadian Revolving Lender that will provide
the Canadian Revolving Loans and become a signatory hereto. 

        "Revolving Loan" shall mean a Loan made by any of the Lenders to any Borrower pursuant to  Section 2.01(a) or (b).
Each Revolving Loan shall either be an ABR Revolving Loan, Eurodollar
Revolving Loan, Canadian Prime Rate Loan or Bankers' Acceptance. 

        "Revolving Maturity Date" shall mean the date which is five (5) years after the Closing Date or, if such date is not a Business
Day, the first Business Day thereafter. 

        "Sale and Leaseback Transaction" means any arrangement, directly or indirectly, with any person whereby any person shall sell or transfer
any property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property which it intends to use for
substantially the same purpose or purposes as the property being sold or transferred. 

        "Sarbanes-Oxley Act" shall mean the United States Sarbanes-Oxley Act of 2002, as amended, and all rules and regulations promulgated
thereunder. 

        "Schedule I Lender" means any Lender named on Schedule I to the Bank Act
(Canada). 

        "Seasonal Advance Period" shall mean the period from and including September 1 of each year to and including December 31 of
the same year. 

        "Secured Obligations" shall mean (a) the Obligations, (b) the due and punctual payment and performance of all obligations of
Borrowers and the other Loan Parties under each Hedging Agreement entered into with any counterparty that is a Secured Party and (c) the due and punctual payment and performance of all
obligations in respect of overdrafts and related liabilities 

38

 

owed
to any Lender, any Affiliate of a Lender, the Administrative Agents or the Collateral Agents arising from treasury, depositary and cash management services or in connection with any automated
clearinghouse transfer of funds. 

        "Secured Parties" shall mean, collectively, the Administrative Agents, the Collateral Agents, the Lenders, the Issuing Banks and each
party to a Lender Hedging Agreement if at the date of entering into such Lender Hedging Agreement such person executes and delivers to the Administrative Agents a letter agreement in form and
substance acceptable to the Administrative Agents pursuant to which such person (i) appoints the applicable Collateral Agents as its agent under the applicable Loan Documents and
(ii) agrees to be bound by the provisions of Section 10.03, Section 10.09 and the
Security Agreements. 

        "Securities Act" shall mean the Securities Act of 1933. 

        "Securities Collateral" shall have the meaning assigned to such term in the Security Agreements. 

        "Security Agreement Collateral" shall mean all property pledged or granted as collateral pursuant to the Security Agreements delivered
(a) on the Closing Date or (b) thereafter pursuant to Section 5.11. 

        "Security Agreements" shall mean, collectively, (a) the US Security Agreement and (b) the Canadian Security Agreements, in
each case, as the same may from time to time be modified, amended, extended or reaffirmed in accordance with the terms thereof. 

        "Security Documents" shall mean the Security Agreements, the Mortgages, the Canadian Pledge Agreements, the US Pledge Agreements, each
Canadian Guaranty and each other security document or pledge agreement delivered in accordance with applicable local or foreign law to grant a valid, perfected security interest in any property as
collateral for the Secured Obligations, and all UCC or PPSA or other financing statements or financing change statements or instruments of perfection required by this Agreement, the Security
Agreements, any Mortgage or any other such security document or pledge agreement to be filed with respect to the security interests in property and fixtures created pursuant to the Security Agreements
or any Mortgage and any other document or instrument utilized to pledge or grant or purport to pledge or grant a security interest or lien on any property as collateral for the Secured Obligations. 

        "Seller" shall have the meaning assigned to such term in the first recital hereto. 

        "Senior Note Agreement" shall mean that certain Indenture dated as of February 14, 2006 by US Borrowers in favor of Senior Note
Collateral Agent pursuant to which the Senior Notes are issued as in effect on the date hereof and thereafter amended from time to time subject to the requirements of this Agreement. 

        "Senior Note Collateral" shall have the meaning assigned to such term in the Intercreditor Agreement. 

        "Senior Note Collateral Agent" means the Bank of New York, in its capacity as the collateral agent under the Senior Note Documents,
together with any successors and assigns. 

        "Senior Note Documents" shall mean the Senior Notes, the Senior Note Agreement, the Senior Note Guarantees and all other documents
executed and delivered with respect to the Senior Notes or the Senior Note Agreement. 

        "Senior Note Guarantees" shall mean the guarantees of Holdings and the Subsidiary Guarantors pursuant to the Senior Note Agreement. 

39

 

        "Senior Note Secured Parties" shall have the meaning assigned to such term in the Intercreditor Agreement. 

        "Senior Notes" shall mean US Borrowers' Senior Secured Floating Rate Notes due 2014 issued on February 14, 2006 and any registered
notes issued by US Borrowers in exchange for, and as contemplated by, such notes with substantially identical terms as such notes. 

        "Specified Obligations" shall mean any obligation of any Loan Parties under the Loan Documents consisting of (i) the payment of
principal of and interest on Loans and (ii) Reimbursement Obligations in respect of Letters of Credit. 

        "Sponsor" shall mean Apollo Management, L.P. and its Affiliates. 

        "Spot Selling Rate" shall mean the spot selling rate at which the US Administrative Agent offers to sell Canadian Dollars for dollars in
the Toronto foreign exchange market at approximately 11:00 a.m. Toronto time on such date for delivery two (2) Business Days later. 

        "Standby Letter of Credit" shall mean any Letters of Credit other than Letters of Credit which are Commercial Letters of Credit. 

        "Stated Amount" means at any time the maximum amount for which a Letter of Credit may be honored. 

        "Statutory Reserves" shall mean (a) for any Interest Period for any Eurodollar Borrowing in dollars, the average maximum rate at
which reserves (including any marginal, supplemental or emergency reserves) are required to be maintained during such Interest Period under Regulation D by member banks of the United States
Federal Reserve System in New York City with deposits exceeding one billion dollars against "Eurocurrency liabilities" (as such term is used in Regulation D). 

        "Stores" shall mean any of the retail stores operated by LNT Center and its Subsidiaries. 

        "Subsidiary" shall mean, with respect to any person (the "parent") at any date,
(i) any person the accounts of which would be consolidated with those of the parent in the parent's consolidated financial statements if such financial statements were prepared in accordance
with GAAP as of such date, (ii) any other corporation, limited liability company, association or other business entity of which securities or other ownership interests representing more than
50% of the voting power of all Equity Interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Board of Directors thereof are, as of such date, owned,
controlled or held by the parent and/or one or more subsidiaries of the parent, (iii) any partnership (a) the sole general partner or the managing general partner of which is the parent
and/or one or more subsidiaries of the parent or (b) the only general
partners of which are the parent and/or one or more subsidiaries of the parent and (iv) any other person that is otherwise Controlled by the parent and/or one or more subsidiaries of the
parent. Unless the context requires otherwise, "Subsidiary" refers to a Subsidiary of Borrower. 

        "Subsidiary Guarantor" shall mean each Subsidiary listed on Schedule 1.01(b), and each other Subsidiary that is or becomes a party
to this Agreement pursuant to Section 5.11. 

        "Supermajority Lenders" shall mean at any time, Lenders having at least 662/3% of the Revolving Commitment or, if the
Revolving Commitments have been terminated, at least 662/3% of the sum of Revolving Exposure. 

        "Survey" shall mean a survey of any Mortgaged Property (and all improvements thereon) which is (i) prepared by a surveyor or
engineer licensed to perform surveys in the jurisdiction where such Mortgaged Property is located, (ii) dated (or redated) not earlier than six months prior to the date of delivery thereof
unless there shall have occurred within six months prior to such 

40

 

date
of delivery any exterior construction of structures on the site of such Mortgaged Property or any easement or right of way on the Mortgaged Property has been granted or become effective through
operation of law or otherwise with respect to such Mortgaged Property which, in either case, can reasonably be depicted on a survey, in which events, as applicable, such survey shall be dated (or
redated) after the completion of such construction or if such construction shall not have been completed as of such date of delivery, not earlier than 20 days prior to such date of delivery, or
after the grant or effectiveness of any such easement or right of way on the applicable Mortgaged Property, (iii) certified by the surveyor (in a manner reasonably acceptable to the
Administrative Agents) to such Administrative Agents, the applicable Collateral Agents and the Title Company, and (iv) complying in all respects with the minimum detail requirements of the
American Land Title Association as such requirements are in effect on the date of preparation of such survey. 

        "Swingline Exposure" shall mean at any time the aggregate principal amount at such time of all outstanding Swingline Loans. The Swingline
Exposure of any Revolving Lender at any time shall equal its Pro Rata Percentage of the aggregate Swingline Exposure at such time. 

        "Swingline Lenders" shall have the meaning assigned to such term in the preamble hereto. 

        "Swingline Loans" shall mean the US Swingline Loans and the Canadian Swingline Loans. 

        "Syndication Agent" shall have the meaning assigned to such term in the preamble hereto. 

        "Tax Return" shall mean all returns, statements, filings, attachments and other documents or certifications required to be filed in
respect of Taxes. 

        "Taxes" shall mean all present or future taxes, levies, imposts, duties, deductions, withholdings, social security and unemployment taxes,
assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 

        "Test Period" shall mean, at any time, the four consecutive fiscal quarters of US Borrowers then last ended (in each case taken as one
accounting period) for which financial statements have been or are required to be delivered pursuant to Section 5.01(a) or  (b). 

        "Title Company" shall mean any title insurance company as shall be retained by Borrowers and reasonably acceptable to the Administrative
Agent. 

        "Title Policy" shall have the meaning assigned to such term in  Section 4.01(o)(iii). 

        "Total Leverage Ratio" shall mean, at any date of determination, the ratio of Consolidated Indebtedness on such date to Consolidated Cash
Flow for the Test Period then most recently ended. 

        "Transaction Documents" shall mean the Acquisition Documents, the Senior Note Documents and the Loan Documents. 

        "Transactions" shall mean, collectively, the transactions to occur on or prior to the Closing Date pursuant to the Transaction Documents,
including (a) the consummation of the Acquisition; (b) the execution, delivery and performance of the Loan Documents and the initial borrowings hereunder; (c) the Refinancing;
(d) the Equity Financing; (e) the issuance of the Senior Notes; and (f) the payment of all fees and expenses to be paid on or prior to the Closing Date and owing in connection
with the foregoing. 

        "Transferred Guarantor" shall have the meaning assigned to such term in  Section 7.09. 

41

 

        "Trigger Event" shall mean at any time (a) a Default shall have occurred and be continuing and/or (b) Average Excess
Availability for the preceding fiscal quarter shall be less than $90 million. 

        "Type," when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising
such Borrowing, is determined by reference to the Adjusted LIBOR Rate, the Alternate Base Rate, Canadian Prime Rate or Bankers' Acceptances. 

        "UCC" shall mean the Uniform Commercial Code as in effect from time to time (except as otherwise specified) in any applicable state or
jurisdiction. 

        "United States" shall mean the United States of America. 

        "US Administrative Agent" shall have the meaning assigned to such term in the preamble hereto and includes each other person appointed as
the successor pursuant to Article X. 

        "US Borrower" shall have the meaning assigned to such term in the preamble hereto. 

        "US Borrowing Base Guarantor" shall mean LNT Inc., a New Jersey corporation, LNT West, a Delaware corporation, and LNT
Merchandising Company, LLC, a Delaware limited liability company and any Wholly Owned Subsidiary of US Borrowers which may hereafter be approved by the Administrative Agents and the Collateral Agents
which (a) is organized in a State within the United States, (b) is currently able to prepare all collateral reports in a comparable manner to the Borrowers' reporting procedures and
(c) has executed and delivered to the applicable Collateral Agents such joinder agreements to guarantees, contribution and set-off agreements and other Security Documents as such
Collateral Agents have reasonably requested so long as such Collateral Agents have received and approved, in their reasonable discretion, (i) a collateral audit and Inventory Appraisal
conducted by an independent appraisal firm reasonably acceptable to such Collateral Agents and (ii) all UCC and similar search results necessary to confirm such Collateral Agents' first
priority Lien on all of such Borrowing Base Guarantor's personal property, subject to Permitted Liens. 

        "US Obligations" shall mean (a) obligations of US Borrowers and the other Loan Parties from time to time arising under or in
respect of the due and punctual payment of (i) the principal of and premium, if any, and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or
other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the US Revolving Loans and the US Swingline Loans, when and as due, whether at maturity, by acceleration,
upon one or more dates set for prepayment or otherwise, (ii) each payment required to be made by US Borrowers and the other Loan Parties under this Agreement in respect of any Letter of Credit
or LC Acceptance, when and as due, including payments in respect of Reimbursement Obligations, interest thereon and obligations to provide cash collateral and (iii) all other monetary
obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of US Borrowers and the other Loan Parties under this Agreement and
the other Loan Documents, (b) the due and punctual performance of all covenants, agreements, obligations and liabilities of US Borrowers and the other Loan Parties under or pursuant to this
Agreement and the other Loan Documents, (c) the due and punctual payment and performance of all obligations of the US Borrowers and any and all of the other Loan Parties under each Lender
Hedging Agreement and (d) the due and punctual payment and performance of all obligations in respect of overdrafts and related liabilities owed to any Lender, any Affiliate of a Lender, the
Administrative Agents or the 

42

 

Collateral
Agents arising from treasury, depositary and cash management services or in connection with any automated clearinghouse transfer of funds. 

        "US Pledge Agreements" shall mean that certain Pledge Agreement by Holdings pledging all of its Equity Interests in LNT and that certain
Pledge Agreement by LNT and certain US Subsidiaries pledging all of their Equity Interests in LNT Center and the Subsidiary Guarantors, as applicable (except the Canadian Loan Parties), in each case,
addressed to the Collateral Agents for the benefit of the Secured Parties, as the same may from time to time be modified, amended, extended or reaffirmed in accordance with the terms thereof. 

        "US Revolving Commitment" shall mean, with respect to each Revolving Lender, the commitment, if any, of such Revolving Lender to make US
Revolving Loans hereunder up to its Pro Rata Percentage of the Revolving Commitment. 

        "US Revolving Exposure" shall mean, with respect to any Lender at any time, the Dollar Equivalent of the aggregate principal amount at
such time of all outstanding Revolving Loans made to US Borrowers of such Lender, plus the aggregate amount at such time of such Lender's LC Exposure,  plus
the aggregate amount at such time of such Lender's Swingline Exposure to US Borrower.
 

        "US Revolving Lender" shall mean a Lender with a US Revolving Commitment. 

        "US Revolving Loans" shall mean each Revolving Loan borrowed by a US Borrower. 

        "US Security Agreement" shall mean a Security Agreement substantially in the form of  Exhibit M-1 among certain of the Loan Parties and Collateral Agents for the
benefit of the Secured Parties, as the same may from time
to time be modified, amended, extended or reaffirmed in accordance with the terms thereof. 

        "US Subsidiary" shall mean a Subsidiary organized in a State of the United States. 

        "US Swingline Commitment" shall mean the commitment of the Swingline Lender to make loans pursuant to  Section 2.17, as the same may be reduced from time to time
pursuant to Section 2.07 or  Section 2.17. The amount of the US Swingline Commitment shall initially be $35 million, but in no event shall
exceed the Revolving
Commitment. 

        "US Swingline Lender" shall have the meaning assigned to such term in the preamble hereto. 

        "US Swingline Loans" shall mean any loan made by the US Swingline Lender pursuant to  Section 2.17(a). 

        "Voting Stock" shall mean, with respect to any person, any class or classes of Equity Interests pursuant to which the holders thereof have
the general voting power under ordinary circumstances to elect at least a majority of the Board of Directors of such person. 

        "Wholly Owned Subsidiary" shall mean, as to any person, (a) any corporation 100% of whose capital stock (other than directors'
qualifying shares) is at the time owned by such person and/or one or more Wholly Owned Subsidiaries of such person and (b) any partnership, association, joint venture, limited liability company
or other entity in which such person and/or one or more Wholly Owned Subsidiaries of such person have a 100% equity interest at such time. 

        "Withdrawal Liability" shall mean liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such
Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 

        SECTION 1.02.    Classification of Loans and Borrowings.    For purposes of this Agreement,
Loans may be classified and referred to by Class (e.g., a "Revolving Loan") or by Type (e.g., a
"Eurodollar Loan") or by Class and Type (e.g., a "Eurodollar Revolving Loan"). Borrowings also may be classified 

43

 

and
referred to by Class (e.g., a "Revolving Borrowing," "Borrowing of Tranche A Loans") or by Type
(e.g., a "Eurodollar Borrowing") or by Class and Type (e.g., a "Eurodollar Revolving Borrowing"). 

        SECTION 1.03.    Terms Generally.    The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include," "includes"
and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall." Unless the context
requires otherwise (a) any definition of or reference to any Loan Document, agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference
herein to any person shall be construed to include such person's successors and assigns, (c) the words "herein," "hereof" and "hereunder," and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall refer to such law or regulation as amended, modified or
supplemented from time to time, (f) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights and (g) "on," when used with respect to the Mortgaged Property or any property adjacent to the Mortgaged Property, means
"on, in, under, above or about." 

        SECTION 1.04.    Accounting Terms; GAAP.    Except as otherwise expressly provided herein, all
financial statements to be delivered pursuant to this Agreement shall be prepared in accordance with GAAP as in effect from time to time and all terms of an accounting or financial nature shall be
construed and interpreted in accordance with GAAP, as in effect on the date hereof unless otherwise agreed to by Borrower and the Required Lenders. 

        SECTION 1.05.    Resolution of Drafting Ambiguities.    Each Loan Party acknowledges and
agrees that it was represented by counsel in connection with the execution and delivery of the Loan Documents to which it is a party, that it and its counsel reviewed and participated in the
preparation and negotiation hereof and thereof and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation hereof or thereof. 

 
 

ARTICLE II.    
    
    THE CREDITS    
    

        SECTION 2.01.    Commitments.    Subject to the terms and conditions and relying upon the
representations and warranties herein set forth, each Lender agrees, severally and not jointly as follows: 

        (a)   each
US Revolving Lender agrees, severally and not jointly, to make US Revolving Loans to US Borrowers, at any time and from time to time on or after the Closing Date
until the earlier of the Business Day prior to the Revolving Maturity Date and the termination of the Revolving Commitment of such Lender in accordance with the terms hereof, in an aggregate principal
amount at any time outstanding that will not (subject to the provisions of Section 10.10 and  Section 10.11) result in such Lender's US Revolving
Exposure exceeding the lesser of (i) such Lender's Revolving Commitment less such
Lender's Pro Rata Percentage of any Line Reserve and (ii) such Lender's Pro Rata Percentage multiplied by the Borrowing Base then in effect; and 

        (b)   each
Canadian Revolving Lender agrees, severally and not jointly, to make Canadian Revolving Loans to Canadian Borrower, at any time and from time to time on or after
the Closing Date until the earlier of the Business Day prior to the Revolving Maturity Date and the 

44

 

termination
of the Canadian Revolving Commitment of such Lender in accordance with the terms hereof, in an aggregate principal amount at any time outstanding that will not (subject to  Section 10.10 and
Section 10.11) result in such Lender's Canadian Exposure exceeding the
lesser of (i) such Lender's Canadian Revolving Commitment less such Lender's Pro Rata Percentage of any Line Reserve allocated to Canadian Revolving Commitments and (ii) such Lender's
Pro Rata Percentage multiplied by the Canadian Borrowing Base then in effect. 

        Within
the limits set forth in clause (a) and clause (b) above and subject
to the terms, conditions and limitations set forth herein, Borrower may borrow, pay or prepay and reborrow Revolving Loans. 

        SECTION 2.02.    Loans.    

        (a)   Each
Loan (other than Swingline Loans) shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance with their applicable
Commitments; provided, that the failure of any Lender to make its Loan shall not in itself relieve any other Lender of its obligation to lend hereunder
(it being understood, however, that no Lender shall be responsible for the failure of any other Lender to make any Loan required to be made by such other Lender). Except for Loans deemed made pursuant
to Section 2.18(e)(ii), (A) ABR Loans comprising any Borrowing shall be in an aggregate principal amount that is (i) an integral
multiple of $1.0 million and not less than $3.0 million or (ii) equal to the remaining available balance of the applicable Commitments and (B) the Eurodollar Loans
comprising any Borrowing shall be in an aggregate principal amount that is (i) an integral multiple of $1.0 million and not less than $3.0 million or (ii) equal to the
remaining available balance of the applicable Commitments (C) Canadian Prime Rate Loans in Canadian dollars comprising any Borrowing shall be in an aggregate principal amount that is
(i) an integral multiple of Can$100,000 and not less than Can$1.0 million or (ii) equal to the remaining available balance of the applicable Commitments and (D) Bankers'
Acceptances in Canadian dollars comprising any Borrowing shall be in an aggregate principal amount that is (i) an integral multiple of Can$100,000 and not less than Can$3.0 million or
(ii) equal to the remaining available balance of the applicable commitments. 

        (b)   Subject
to Section 2.11 and Section 2.12, each Borrowing
shall be comprised entirely of ABR Loans, Eurodollar Loans, Canadian Prime Rate Loans or Bankers' Acceptances as the applicable Borrower may request pursuant to  Section 2.03. Each Lender may at its
option make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to
make such Loan; provided that any exercise of such option shall not affect the obligation of such Borrower to repay such Loan in accordance with the
terms of this Agreement. Borrowings of more than one Type may be outstanding at the same time; provided that such Borrower shall not be entitled to
request any Borrowing that, if made, would result in more than eight Eurodollar Borrowings outstanding hereunder at any one time. For purposes of the foregoing, Borrowings having different Interest
Periods, regardless of whether they commence on the same date, shall be considered separate Borrowings. 

        (c)   Except
with respect to Loans deemed made pursuant to Section 2.18(e)(ii), each Lender shall make each Loan to be
made by it hereunder on the proposed date thereof by wire transfer of immediately available funds to such account in New York City or Toronto, as the case may be, as the applicable Administrative
Agent may designate not later than 11:00 a.m., New York City time, and the applicable Administrative Agent shall promptly credit the amounts so received to an account as directed by the
Administrative Borrower in the applicable Borrowing Request maintained with the applicable Administrative Agent or, if a Borrowing shall not occur on such date because any condition precedent herein
specified shall not have been met, return the amounts so received to the respective Lenders. 

45

 

        (d)   Unless
the applicable Administrative Agent shall have received notice from a Lender prior to the date of any Borrowing that such Lender will not make available to the
applicable Administrative Agent such Lender's portion of such Borrowing, such Administrative Agent may assume that such Lender has made such portion available to such Administrative Agent on the date
of such Borrowing in accordance with paragraph (c) above, and such Administrative Agent may, in reliance upon such assumption, make
available to the applicable Borrower on such date a corresponding amount. If the applicable Administrative Agent shall have so made funds available, then, to the extent that such Lender shall not have
made such portion available to such Administrative Agent, each of such Lender and the Borrowers severally agrees to repay to such Administrative Agent forthwith on demand such corresponding amount
together with interest thereon, for each day from the date such amount is made available to the applicable Borrower until the date such amount is repaid to such Administrative Agent at (i) in
the case of such Borrower, the interest rate applicable at the time to the Loans comprising such Borrowing and (ii) in the case of such Lender, the greater of the Federal Funds Effective Rate
and a rate determined by such Administrative Agent in accordance with banking industry rules on interbank compensation. If such Lender shall repay to such Administrative Agent such corresponding
amount, such amount shall constitute such Lender's Loan as part of such Borrowing for purposes of this Agreement, and Borrowers' obligation to repay such Administrative Agent such corresponding amount
pursuant to this Section 2.02(d) shall cease. 

        (e)   Notwithstanding
any other provision of this Agreement, Borrowers shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest
Period requested with respect thereto would end after the Revolving Maturity Date. 

        SECTION 2.03.    Borrowing Procedure.    

        (a)    Borrowings.    To request a Revolving Borrowing, the Administrative Borrower shall deliver, by hand delivery or
telecopier, a duly completed and executed Borrowing Request to the applicable Administrative Agent (i) in the case of a Eurodollar Borrowing in dollars or a Bankers' Acceptance, not later than
11:00 a.m., New York City time, three Business Days before the date of the proposed Borrowing, (ii) in the case of an ABR Borrowing, not later than 9:00 a.m., New York City time,
on the date of the proposed Borrowing or (iii) in the case of a Borrowing of Canadian Prime Rate Loans, not later than 11:00 a.m., New York time, one Business Day before the date of the
proposed Borrowing. Each Borrowing Request shall be irrevocable and shall specify the following information in compliance with Section 2.02: 

        (i)    the
aggregate amount and Approved Currency of such Borrowing; 

        (ii)   the
date of such Borrowing, which shall be a Business Day; 

        (iii)  for
US Revolving Loans, whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing or, for Canadian Revolving Loans, whether such Borrowing is to be by
way of Bankers' Acceptance or Canadian Prime Rate Loan; 

        (iv)  in
the case of a Eurodollar Borrowing or a Bankers' Acceptance, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the
definition of the term "Interest Period"; 

        (v)   the
name of the applicable Borrower and the location and number of the applicable Borrower's account to which funds are to be disbursed, which shall comply with the
requirements of Section 2.02(c); and 

        (vi)  that
the conditions set forth in Section 4.02(b)-(e) have been
satisfied as of the date of the notice. 

46

 

        If
no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing in dollars or, in the case of a Canadian Revolving Loan in Canadian
dollars, a Canadian Prime Rate Loan. If no Interest Period is specified with respect to any requested Eurodollar Borrowing or Bankers' Acceptance then the applicable Borrower shall be deemed to have
selected an Interest Period of one month's duration. Promptly following receipt of a Borrowing Request in accordance with this Section, such Administrative Agent shall advise each applicable Lender of
the details thereof and of the amount of such Lender's Loan to be made as part of the requested Borrowing. 

        (b)    Bankers' Acceptances.    

        (i)    Canadian Administrative Agent.    On each date that a Bankers' Acceptance is to be accepted hereunder, the
Canadian Administrative Agent shall advise the Canadian Borrower as to the Canadian Administrative Agent's determination of the applicable Discount Rate for the Bankers' Acceptance which any of the
Canadian Revolving Lenders have agreed to accept and purchase. 

        (ii)   Purchase.    Each Canadian Revolving Lender shall purchase a Bankers' Acceptance accepted by it, and the
Canadian Borrower shall sell such Bankers' Acceptance to such Canadian Revolving Lender at the applicable Discount Rate. The relevant Canadian Revolving Lender shall provide to the Canadian
Administrative Agent on the date of the related Borrowing the Discount Proceeds less the Acceptance Fee payable by the Canadian Borrower with respect to such Bankers' Acceptance. 

        (iii)  Sale.    Each Canadian Revolving Lender may from time to time hold, sell, rediscount or otherwise dispose of
any or all Bankers' Acceptances accepted and purchased by it. 

        (iv)  Power of Attorney for the Execution of Bankers' Acceptances.    To facilitate the issuance of Bankers'
Acceptances, the Canadian Borrower hereby appoints each Canadian Revolving Lender as its attorney to sign and endorse on its behalf, in handwriting or facsimile or mechanical signature as and when
deemed necessary by such Canadian Revolving Lender, blank forms of Bankers' Acceptances. In this respect, it is each Canadian Revolving Lender's responsibility to maintain an adequate supply of blank
forms of Bankers' Acceptances for acceptance under this Agreement. The Canadian Borrower recognizes and agrees that all Bankers' Acceptances signed and/or endorsed on its behalf by a Canadian
Revolving Lender shall bind the Canadian Borrower as fully and effectually as if signed in the handwriting of and duly issued by the proper signing officers of the Canadian Borrower. Each Canadian
Revolving Lender is hereby authorized to issue such Bankers' Acceptances endorsed in blank in such face amounts as may be determined by such Canadian Revolving Lender;  provided that the aggregate amount
thereof is equal to the aggregate amount of Bankers' Acceptances required to be accepted and purchased by such
Canadian Revolving Lender. No Canadian Revolving Lender shall be liable for any damage, loss or other claim arising by reason of any loss or improper use of any such instrument except for the gross
negligence or willful misconduct of such Canadian Revolving Lender. Each Canadian Revolving Lender shall maintain a record with respect to Bankers' Acceptances held by it in blank hereunder, voided by
it for any reason, accepted and purchased by it hereunder, and canceled at their respective maturities. 

        (v)   Execution.    Drafts drawn by the Canadian Borrower to be accepted as Bankers' Acceptances shall be signed by a
duly authorized officer or officers of the Canadian Borrower or by its attorneys-in-fact, including attorneys-in-fact appointed pursuant to this
Section. Notwithstanding that any person whose signature appears on any Bankers' Acceptance may no longer be an authorized signatory for the Canadian Borrower at the time of issuance of a Bankers'
Acceptance, that signature shall nevertheless be valid and sufficient for all purposes 

47

 

as
if the authority had remained in force at the time of issuance and any Bankers' Acceptance so signed shall be binding on the Canadian Borrower. Any executed drafts or orders to be used as Bankers'
Acceptances shall be held in safekeeping with the same degree of care as if they were Lender's own property. 

        (vi)  Issuance.    The Canadian Administrative Agent, promptly following receipt of a Borrowing Request or Interest
Election Request for Bankers' Acceptances, shall advise the Canadian Revolving Lenders of the notice and the face amount of Bankers' Acceptances to be accepted by it and the applicable Interest Period
(which shall be identical for all Canadian Revolving Lenders). The aggregate face amount of Bankers' Acceptances to be accepted by a Canadian Revolving Lender shall be determined by reference to such
Canadian Revolving Lender's Canadian Pro Rata Percentage of the issue of Bankers' Acceptances, except that, if the face amount of a Bankers' Acceptance which would otherwise be accepted by a Canadian
Revolving Lender would not be Can$500,000 or a whole multiple thereof, the face amount shall be increased or reduced by the Canadian Administrative Agent in its sole discretion to Can$100,000, or the
nearest whole multiple of that amount, as appropriate; provided that after such issuance, no Canadian Revolving Lender shall have aggregate outstanding
Canadian Exposure in excess of its Canadian Revolving Commitment. 

        (vii) Waiver of Presentment and Other Conditions.    The Canadian Borrower waives presentment for payment and any
other defense to payment of any amounts due to any Canadian Revolving Lender in respect of a Bankers' Acceptance accepted and purchased by it pursuant to this Agreement which might exist solely by
reason of the Bankers' Acceptance being held, at the maturity thereof, by such Canadian Revolving Lender in its own right and the Canadian Borrower agrees not to claim any days of grace if the
Canadian Revolving Lender as holder sues or otherwise commences legal proceedings against the Canadian Borrower on the Bankers' Acceptance for payment of the amount payable by the Canadian Borrower
thereunder. 

        (viii) BA Equivalent Loans by Non-BA Lenders.    Whenever the Canadian Borrower requests a Canadian
Revolving Loan under this Agreement by way of Bankers' Acceptances, each Non-BA Lender (or, at its option, any other Canadian Revolving Lender), shall, in lieu of accepting a Bankers'
Acceptance, make a BA Equivalent Loan in an amount equal to such Non-BA Lender's Canadian Pro Rata Percentage of such Canadian Revolving Loan. 

        (ix)  Terms Applicable to Discount Notes.    As set out in the definition of "Bankers' Acceptances", that term
includes Discount Notes and BA Equivalent Loans not evidenced by Discount Notes and all terms of this Agreement applicable to Bankers' Acceptances shall apply equally to BA Equivalent Loans and
Discount Notes evidencing BA Equivalent Loans with such changes as may in the context be necessary. For greater certainty: 

        (1)   the
term of a Discount Note shall be the same as the Interest Period for Bankers' Acceptances accepted and purchased on the same date in respect of the same Canadian
Revolving Loan; 

        (2)   an
acceptance fee will be payable in respect of a Discount Note and shall be calculated at the same rate and in the same manner as the Acceptance Fee in respect of a
Bankers' Acceptance; and 

        (3)   the
Discount Rate applicable to a Discount Note shall be the Discount Rate applicable to BA Equivalent Loans made on the same date in respect of the same Canadian
Revolving Loan. 

        Notwithstanding
the foregoing, it is understood and agreed that any Non-BA Lender may agree, in lieu of receiving any Discount Notes, that such Discount Notes may be
uncertificated 

48

 

and
the applicable BA Equivalent Loan shall be evidenced by a loan account, which such Non-BA Lender shall maintain in its name, and in such event such loan account shall be entitled to
all the benefits of Discount Notes in respect of BA Equivalent Loans. 

        (x)   Depository Bills and Notes Act.    At the option of the Canadian Borrower and any Canadian Revolving Lender,
Bankers' Acceptances under this Agreement to be accepted by such Canadian Revolving Lender may be issued in the form of depository bills for deposit with The Canadian Depository for Securities Limited
pursuant to the Depository Bills and Notes Act (Canada). All depository bills so issued shall be governed by the provisions of this Section. 

        (xi)  Prepayments and Mandatory Payments.    If at any time any Bankers' Acceptances are to be paid prior to their
maturity, the Canadian Borrower shall be required to deposit the face amount of such Bankers' Acceptances being prepaid in an interest-bearing cash collateral account with the Canadian Administrative
Agent until the date of maturity of such Bankers' Acceptances. The cash collateral account shall be under the sole control of the Canadian Administrative Agent and shall be subject to no Liens, except
for Liens in favor of the Canadian Administrative Agent in its capacity as such. Except as contemplated by this Section, neither the Canadian Borrower nor any person claiming on its behalf shall have
any right to any of the cash in the cash collateral account. The Canadian Administrative Agent shall apply the cash held in the cash collateral account and interest earned thereon to the face amount
of such Bankers' Acceptances at maturity, whereupon any cash remaining in the cash collateral account shall be released by the Canadian Administrative Agent to the Canadian Borrower. 

        (c)    Appointment of Administrative Borrower.    Each Borrower hereby irrevocably appoints and constitutes
Administrative Borrower as its agent to request and receive Loans and Letters of Credit pursuant to this Agreement in the name or on behalf of such Borrower. The Administrative Agents and Lenders may
disburse the Loans to such bank account of Administrative Borrower or a Borrower or otherwise make such Loans to a Borrower and provide such Letters of Credit to a Borrower as Administrative Borrower
may designate or direct, without notice to any other Borrower or Guarantor. Administrative Borrower hereby accepts the appointment by Borrowers to act as the agent of Borrowers and agrees to ensure
that the disbursement of any Loans to a Borrower requested by or paid to or for the account of such Borrower, or the issuance of any Letter of Credit for a Borrower hereunder, shall be paid to or for
the account of such Borrower. Each Borrower hereby irrevocably appoints and constitutes Administrative Borrower as its agent to receive statements on account and all other notices from the Agents and
Lenders with respect to the Obligations or otherwise under or in connection with this Agreement and the other Loan Documents. Any notice, election, representation, warranty, agreement or undertaking
by or on behalf of any other Borrower by Administrative Borrower shall be deemed for all purposes to have been made by such Borrower, as the case may be, and shall be binding upon and enforceable
against such Borrower to the same extent as if made directly by such Borrower. No purported termination of the appointment of Administrative Borrower as agent as aforesaid shall be effective, except
after ten (10) days' prior written notice to Administrative Agents. 

        (d)    Additional Functions of Administrative Borrower.    The Administrative Borrower operates a centralized cash
management system for the Borrowers and their Subsidiaries, including the Borrowing Base Guarantor Intercompany Loan Amounts and all other intercompany accounts owing among the Loan Parties. All Loans
or Letters of Credit requested by the Administrative Borrower for ultimate use by Loan Parties other than LNT or Canadian Borrower shall be drawn or obtained in the name of the Administrative
Borrower. Upon request, Administrative Borrower shall promptly confirm for the Administrative Agents that each Loan or Letter of Credit has been issued in the name of the appropriate Borrower and, in
the event of any error, the respective records shall be adjusted without prejudice to the rights of the Agents and Lenders. 

49

 

        SECTION 2.04.    Evidence of Debt; Repayment of Loans.    

        (a)    Promise to Repay.    The US Borrowers hereby unconditionally promise to pay (i) to the US Administrative
Agent for the account of each Revolving Lender, the then unpaid principal amount of each US Revolving Loan of such Revolving Lender on the Revolving Maturity Date and (ii) to the US Swingline
Lender, the then unpaid principal amount of each US Swingline Loan on the earlier of the Revolving Maturity Date and the first date after such Swingline Loan is made that is the 15th or last day of a
calendar month and is at least two (2) Business Days after such Swingline Loan is made; provided that on each date that a US Revolving Loan is
made, the US Borrowers shall repay all US Swingline Loans that were outstanding on the date such Borrowing was requested. Canadian Borrower hereby unconditionally promises to pay (i) to
Canadian Administrative Agent for the account of each Canadian Revolving Lender, the then unpaid principal amount of each Canadian Revolving Loan of such Canadian Revolving Lender on the Revolving
Maturity Date and (ii) to the Canadian Swingline Lender, the then unpaid principal amount of each Canadian Swingline Loan on the earlier of the Revolving Maturity Date and the first date after
such Swingline Loan is made that is the 15th or last day of a calendar month and is at least two (2) Business Days after such Swingline Loan is made; provided that on each date
that a Canadian Revolving Loan is made, the Canadian Borrower shall repay all Canadian Swingline Loans that were outstanding on the date such Borrowing was requested. All payments or repayments of
Loans made pursuant to this Section 2.04(a) shall be made in the Approved Currency in which such Loan is denominated. 

        (b)    Lender and Administrative Agent Records.    Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing the indebtedness of the applicable 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 under this Agreement. The applicable Administrative Agent shall maintain accounts in which it will record (i) the amount and Approved
Currency of each Loan made hereunder, the Type and Class thereof, the name of the applicable Borrower and the Interest Period applicable thereto; (ii) the amount of any principal or interest
due and payable or to become due and payable from the applicable Borrower to each applicable Lender hereunder; and (iii) the amount of any sum received by such Administrative Agent hereunder
for the account of the applicable Lenders and each such Lender's share thereof. The entries made in the accounts maintained pursuant to this paragraph shall be prima
facie evidence of the existence and amounts of the obligations therein recorded as well as the Borrower which received such Loans or
Letters of Credit; provided that the failure of any Lender or such Administrative Agent to maintain such accounts or any error therein shall not in any
manner affect the obligations of the Borrowers to repay the Loans in accordance with their terms. 

        (c)    Promissory Notes.    Any Lender by written notice to Administrative Borrower (with a copy to the Administrative
Agents) may request that Loans of any Class made by it be evidenced by a promissory note (unless already evidenced by a Bankers' Acceptance). In such event, the applicable Borrower shall prepare,
execute and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) in the form of  Exhibit K-1,
K-2,  K-3 or K-4 as the case may be. Thereafter, the Loans evidenced by such
promissory note and interest thereon shall at all times (including after assignment pursuant to Section 11.04) be represented by one or more
promissory notes in such form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns). 

50

   
        SECTION 2.05.    Fees.    

        (a)    Commitment Fee.    The Borrowers agree to pay to the applicable Administrative Agent for the account of each
Lender a commitment fee (a "Commitment Fee") equal to the Applicable Fee per annum on the average daily unused amount of each Commitment of such Lender
during the period from and including the date hereof to but excluding the date on which such Commitment terminates. Accrued Commitment Fees shall be payable in arrears (A) on the last Business
Day of March, June, September and December of each year, commencing on the first such date to occur after the date hereof, and (B) on the date on which such Commitment terminates. Commitment
Fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). For purposes of
computing Commitment Fees with respect to Revolving Commitments a Revolving Commitment of a Lender shall be deemed to be used to the extent of the outstanding Revolving Loans and LC Exposure of such
Lender (and the Swingline Exposure of such Lender shall be disregarded for such purpose). 

        (b)    Administrative Agent Fees.    The Borrowers agree to pay to the US Administrative Agent, for the accounts of
the applicable Administrative Agents, the administrative fees (to be allocated between the Administrative Agents in a manner to be mutually agreed upon by the Administrative Agents) payable in the
amounts and at the times set forth in the Fee Letter (the "Administrative Agent Fees"). 

        (c)    Collateral Monitoring Fee.    The Borrowers agree to pay to the US Administrative Agent, for the accounts of
the applicable Collateral Agents, a collateral monitoring fee (to be allocated among the Collateral Agents in a manner to be mutually agreed upon by the Collateral Agents) payable in the amounts and
at the times set forth in the Fee Letter (the "Collateral Monitoring Fees"). 

        (d)    LC and Fronting Fees.    The US Borrowers agree to pay (i) to the US Administrative Agent for the
account of each Revolving Lender (other than a Canadian Revolving Lender) a participation fee ("Standby LC Participation Fee") with respect to its
participations in Standby Letters of Credit, which shall accrue at a rate equal to the Applicable Margin from time to time used to determine the interest rate on Eurodollar Revolving Loans pursuant to  Section 2.06 on the average daily amount of such Lender's LC Exposure (excluding any portion thereof attributable to Reimbursement Obligations),
as appropriate, during the period from and including the Closing Date to but excluding the later of the date on which such Lender's Revolving Commitment terminates and the date on which such Lender
ceases to have any LC Exposure, (ii) to the US Administrative Agent for the account of each Revolving Lender a participation fee ("Commercial LC Participation
Fee" and together with the Standby LC Participation Fee, the "LC Participation Fee") with respect to its participation in
Commercial Letters of Credit, which shall accrue at a rate equal to the greater of (A) the Applicable Margin from time to time used to determine the interest rate on Eurodollar Revolving Loans
pursuant to Section 2.06 on the average daily amount of such Lender's LC Exposure (excluding any portion thereof attributable to Reimbursement
Obligations), as appropriate, during the period from and including the Closing Date to but excluding the later of the date on which such Lender's Revolving Commitment terminates and the date on which
such Lender ceases to have any LC Exposure minus 0.50% and (B) 0.50%, and (iii) to the Issuing Bank a fronting fee
("Fronting Fee"), which shall accrue at the rate of 0.125% per annum on the average daily amount of the LC Exposure (excluding any portion thereof
attributable to Reimbursement Obligations) during the period from and including the Closing Date to but excluding the later of the date of termination of the Revolving Commitments and the date on
which there ceases to be any LC Exposure, as well as the Issuing Bank's customary fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings
thereunder. Accrued LC Participation Fees and Fronting Fees shall be payable in arrears 

51

 

(i) on
the last Business Day of March, June, September and December of each year, commencing on the first such date to occur after the Closing Date, and (ii) on the date on which the
Revolving Commitments terminate. Any such fees accruing after the date on which the Revolving Commitments terminate shall be payable on demand. Any other fees payable to the Issuing Bank pursuant to
this paragraph shall be payable within 10 days after demand therefor. All LC Participation Fees and Fronting Fees shall be computed on the basis of a year of 360 days and shall be
payable for the actual number of days elapsed (including the first day but excluding the last day). During the continuance of a Default, the LC Participation Fee shall be increased to a per annum rate
equal to 2% plus the otherwise applicable rate with respect thereto. 

        (e)   All
Fees shall be paid on the dates due, in immediately available funds in dollars, to the applicable Administrative Agent for distribution, if and as appropriate, among
the applicable Lenders, except that the US Borrowers shall pay the Fronting Fees directly to the Issuing Bank. Once paid, none of the Fees shall be refundable under any circumstances. 

        SECTION 2.06.    Interest on Loans.    

        (a)    ABR Loans.    Subject to the provisions of  Section 2.06(e), the Loans comprising each ABR Borrowing, including each
Swingline Loan, shall bear interest at a rate per annum equal to the
Alternate Base Rate plus the Applicable Margin in effect from time to time. 

        (b)    Canadian Prime Rate Loans.    Subject to  Section 2.06(e), the Loans comprising each Canadian Prime Rate Borrowing shall
bear interest at a rate per annum equal to the Canadian Prime Rate
plus the Applicable Margin in effect from time to time. 

        (c)    Eurodollar Loans.    Subject to the provisions of  Section 2.06(e), the Loans comprising each Eurodollar Borrowing shall
bear interest at a rate per annum equal to the Adjusted LIBOR Rate for the
Interest Period in effect for such Borrowing plus the Applicable Margin in effect from time to time. 

        (d)    Bankers' Acceptances.    Subject to Section 2.06(e),
upon acceptance of a Bankers' Acceptance by a Lender, Canadian Borrower shall pay to Canadian Administrative Agent on behalf of such Lender a fee (the "Acceptance
Fee") calculated on the face amount of such Bankers' Acceptance at a rate per annum equal to the Applicable Margin on the basis of the number of days in the Interest Period
applicable to such Bankers' Acceptance and a year of 365 or 366 days, as applicable. 

        (e)    Default Rate.    Notwithstanding the foregoing, during an Event of Default, all Obligations shall, to the
extent permitted by applicable law, bear interest, after as well as before judgment, at a per annum rate equal to (i) in the case of principal and premium, if any, of or interest on any Loan,
2% plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this  Section 2.06 or (ii) in the case of any other
amount, 2% plus the rate applicable to ABR
Revolving Loans in the case of Borrowings in dollars, or Canadian Prime Rate Loans, in the case of Borrowings in Canadian dollars, as provided in  Section 2.06(a) or (b)
, respectively (in either case, the "Default
Rate"). 

        (f)    Interest Payment Dates.    Accrued interest on each Loan shall be payable in arrears on each Interest Payment
Date for such Loan; provided that (i) interest accrued pursuant to Section 2.06(e) shall
be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Revolving Loan, Canadian Prime Rate Loan or a Swingline Loan without a
permanent reduction in Revolving Commitments), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of
any conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion. 

52

 

        (g)    Interest Calculation.    All interest hereunder shall be computed on the basis of a year of 360 days,
except that interest computed by reference to the Alternate Base Rate, the Canadian Prime Rate or
Bankers' Acceptances shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBOR Rate, Canadian Prime Rate or Acceptance Fee shall be determined by the applicable Administrative Agent in
accordance with the provisions of this Agreement and such determination shall be conclusive absent manifest error. 

        (h)    Currency for Payment of Interest.    All interest paid or payable pursuant to this  Section 2.06 shall be paid in the
Approved Currency in which the Loan giving rise to such interest is denominated. 

        (i)    Interest Act (Canada).    For the purposes of the Interest Act
(Canada), in any case in which an interest or fee rate is stated in this Agreement to be calculated on the basis of a number of days that is other than the number in a calendar
year, the yearly rate, to which such interest or fee rate is equivalent, is equal to such interest or fee rate multiplied by the actual number of days in the year in which the relevant interest or fee
payment accrues and divided by the number of days used as the basis for such calculation. 

        SECTION 2.07.    Termination and Reduction of Commitments.    

        (a)    Termination of Commitments.    The Revolving Commitments, the US Swingline Commitment, the Canadian Swingline
Commitment and the LC Commitment shall automatically terminate on the Revolving Maturity Date. 

        (b)    Optional Terminations and Reductions.    At their option, Borrowers may at any time terminate, or from time to
time permanently reduce, the Commitments of any Class; provided that (i) each reduction of the Commitments of any Class shall be in an amount
that is an integral multiple of $1.0 million and not less than $5.0 million and (ii) the Revolving Commitments shall not be terminated or reduced if, after giving effect to any
concurrent prepayment of the Revolving Loans in accordance with Section 2.10, the aggregate amount of Revolving Exposures would exceed the
aggregate amount of Revolving Commitments. Any permanent reduction of the Revolving Commitment shall result in a pro rata permanent reduction in the Canadian Revolving Commitments. 

        (c)    Notice by the Borrowers.    The applicable Borrower shall notify the applicable Administrative Agent in writing
of any election to terminate or reduce the Commitments under Section 2.07(b) at least three Business Days prior to the effective date of such
termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, such Administrative Agent shall advise the Lenders of the contents thereof.
Each notice delivered by such Borrower pursuant to this Section shall be irrevocable; provided that a notice of termination of the Commitments delivered
by any Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by such Borrower (by notice to such Administrative
Agent on or prior to the specified effective date) if such condition is not satisfied. Any termination or reduction of the Commitments of any Class shall be permanent. Each reduction of the
Commitments of any Class
shall be made ratably among the Lenders in accordance with their respective Commitments of such Class. 

        SECTION 2.08.    Interest Elections.    

        (a)    Generally.    Each Revolving Borrowing including each Canadian Revolving Borrowing initially shall be of the
Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing and a Bankers' Acceptance, shall have an initial Interest Period as specified in such Borrowing Request.
Thereafter, the applicable Borrower may elect to convert such 

53

 

Borrowing
to a different Type or to rollover or continue such Borrowing and, in the case of a Eurodollar Borrowing or a Bankers' Acceptance, may elect Interest Periods therefor, all as provided in
this Section (except that only the Canadian Borrower may elect Canadian Prime Rate Borrowings or Bankers' Acceptances). Borrowings consisting of Canadian Revolving Loans may only be converted to a
different Type of Canadian Revolving Loan. The applicable Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be
allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. Notwithstanding anything to the
contrary, the applicable Borrower shall not be entitled to request any conversion, rollover or continuation that, if made, would result in more than eight Eurodollar Borrowings or Bankers' Acceptances
having more than eight different Interest Periods being outstanding hereunder at any one time. This Section shall not apply to Borrowings of Swingline Loans, which may not be converted or continued. 

        (b)    Interest Election Notice.    To make an election pursuant to this Section, the applicable Borrower shall
deliver, by hand delivery or telecopier, a duly completed and executed Interest Election Request to the applicable Administrative Agent not later than the time that a Borrowing Request would be
required under Section 2.03 if such Borrower were requesting a Revolving Borrowing of the Type resulting from such election to be made on the
effective date of such election. Each Interest Election Request shall be irrevocable. Each Interest Election Request shall specify the following information in compliance with  Section 2.02:

        (i)    the
Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, or if outstanding
Borrowings are being combined, allocation to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii), (iv) and (v) below shall be specified for
each resulting Borrowing); 

        (ii)   the
effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day; 

        (iii)  the
Approved Currency of the resulting Borrowing; 

        (iv)  whether
the resulting Borrowing is to be an ABR Borrowing, Canadian Prime Rate Borrowing, a Eurodollar Borrowing or an advance by way of Bankers' Acceptance; and 

        (v)   if
the resulting Borrowing is a Eurodollar Borrowing or an advance by way of Bankers' Acceptance, the Interest Period to be applicable thereto after giving effect to
such election, which shall be a period contemplated by the definition of the term "Interest Period". 

        If
any such Interest Election Request requests a Eurodollar Borrowing or an advance by way of Bankers' Acceptance but does not specify an Interest Period, then such Borrower shall be
deemed to have selected an Interest Period of one month's duration. 

        Promptly
following receipt of an Interest Election Request, such Administrative Agent shall advise each Lender of the details thereof and of such Lender's portion of each resulting
Borrowing. 

        (c)    Automatic Conversion to ABR Borrowing or Canadian Prime Rate Borrowings.    If an Interest Election Request
with respect to a Eurodollar Borrowing or a Bankers' Acceptance is not timely delivered prior to the end of the Interest Period applicable thereto, then, unless such Borrowing or Bankers' Acceptance
is repaid as provided herein, at the end of such Interest Period such Eurodollar Borrowing or Bankers' Acceptance shall be converted to (i) in the case of a Eurodollar Borrowing, an ABR
Borrowing and (ii) in the case of a Bankers' Acceptance, a Canadian Prime Rate Borrowing. Notwithstanding any contrary provision hereof, if an Event of 

54

 

Default
has occurred and is continuing, the applicable Administrative Agent or the Required Lenders may require, by notice to the applicable Borrower, that (i) no outstanding Borrowing may be
converted to or continued as a Eurodollar Borrowing or a Bankers' Acceptance and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing and each Banker's
Acceptance shall be converted into a Canadian Prime Rate Loan, in each case, at the end of the Interest Period applicable thereto. 

        SECTION 2.09.    [Intentionally
Deleted].    

        SECTION 2.10.    Optional and Mandatory Prepayments of Loans.    

        (a)    Optional Prepayments.    Each Borrower shall have the right at any time and from time to time to prepay any
Borrowing, in whole or in part, subject to the requirements of this Section 2.10 and subject to the provisions of  Section 9.02(g); provided that each partial prepayment shall be in an amount that is an integral
multiple of $1.0 million (or, if applicable, Can$100,000) and not less than $3.0 million (or, if applicable, Can$1.0 million) or, if less, the outstanding principal amount of such
Borrowing. 

        (b)    Certain Revolving Loan Prepayments.    

        (i)    In
the event of the termination of all the Revolving Commitments, each Borrower shall, on the date of such termination, repay or prepay all its outstanding Revolving
Borrowings and all outstanding Swingline Loans and replace all outstanding Letters of Credit or cash collateralize all outstanding Letters of Credit in accordance with the procedures set forth in  Section 2.18(i)
. 

        (ii)   In
the event of any partial reduction of the Revolving Commitments, then (x) at or prior to the effective date of such reduction, the Administrative Agents shall
notify Borrowers and the Revolving Lenders of the sum of the Revolving Exposures after giving effect thereto and (y) if the sum of the Revolving Exposures would exceed the aggregate amount of
Revolving Commitments after giving effect to such reduction, then Borrowers shall, on the date of such reduction, first, repay or prepay Swingline
Loans, second, repay or prepay Revolving Borrowings and third, replace outstanding Letters of Credit or
cash collateralize outstanding Letters of Credit in accordance with the procedures set forth in Section 2.18(i), in an aggregate amount
sufficient to eliminate such excess. 

        (iii)  In
the event that (x) the sum of all Lenders' Revolving Exposures exceeds the Revolving Commitments then in effect (including on any date on which Dollar
Equivalents are determined pursuant to Section 11.17) or (y) the sum of all Lenders' Canadian Exposures exceeds the Canadian Revolving
Commitments then in effect (including on any date on which Dollar Equivalents are determined pursuant to Section 11.17), then in each case,
Borrowers shall, without notice or demand, immediately first, repay or prepay Revolving Borrowings, and  second, replace outstanding Letters of Credit or
cash collateralize outstanding Letters of Credit in accordance with the procedures set forth in  Section 2.18(i), in an aggregate amount sufficient to eliminate such excess. 

        (iv)  In
the event that the aggregate LC Exposure exceeds the LC Commitment then in effect (including on any date on which Dollar Equivalents are determined pursuant to  Section 11.17), US Borrowers shall,
without notice or demand, immediately replace outstanding Letters of Credit or cash collateralize outstanding
Letters of Credit in accordance with the procedures set forth in Section 2.18(i), in an aggregate amount sufficient to eliminate such excess. 

        (v)   In
the event that (x) the sum of all Lenders' US Revolving Exposures exceeds the Borrowing Base then in effect or (y) the sum of all Lenders' Canadian
Exposures exceeds the 

55

 

Canadian
Borrowing Base then in effect, the Borrowers shall, without notice or demand, immediately apply an amount equal to such excess to prepay the Loans and any interest accrued thereon, in
accordance with this Section 2.10(b)(v). The Borrowers shall make prepayments in accordance with  Section 2.10(f) in an amount sufficient to
eliminate such excess. 

        (vi)  In
the event an Activation Notice has been given (as contemplated by Section 9.02), the Borrowers shall pay all
proceeds of Collateral (other than proceeds of a Casualty Event or an Asset Sale that do not require a permanent repayment) into the Collection Account, for application in accordance with  Section 9.02(g). 

        (vii) Borrowings
by way of Bankers' Acceptance may only be prepaid by cash collateralizing the same in accordance with  Section 2.03(b)(xi). 

        (c)    Asset Sales.    Not later than one Business Day following the receipt of any Net Cash Proceeds of any Asset
Sale by Holdings or any of its Subsidiaries, Borrowers shall make any prepayments required by Section 2.10(b) as well as prepayments in
accordance with Section 2.10(f) and (g) in an aggregate amount equal to 100% of such Net Cash
Proceeds; provided that: 

        (i)    no
such prepayment shall be required under this Section 2.10(c)(i) with respect to (A) any Asset Sale
permitted by Section 6.06(a), (B) the disposition of property which constitutes a Casualty Event, or (C) Asset Sales for fair
market value resulting in no more than the Dollar Equivalent of $100,000 in Net Cash Proceeds per Asset Sale (or series of related Asset Sales) and less than the Dollar Equivalent of
$1.0 million in Net Cash Proceeds in any fiscal year; provided that clause (C) shall not apply in the case of any Asset Sale described in
clause (b) of the definition thereof; and 

        (ii)   subject
to Section 2.10(g) and any requirement for a prepayment made under  Section 2.10(b) and so long as no Default shall then exist or would arise
therefrom, such proceeds shall not be required to be so applied on such
date to the extent that Borrowers shall have delivered an Officers' Certificate to the applicable Administrative Agent on or prior to such date stating that such Net Cash Proceeds are expected to be
reinvested in fixed or capital assets within 365 days following the date of such Asset Sale (which Officers' Certificate shall set forth the estimates of the proceeds to be so expended);  provided
that if all or any portion of such Net Cash Proceeds is not so reinvested within such 365-day period, such unused portion shall be
applied on the last day of such period as a mandatory prepayment as provided in this Section 2.10(c); provided,
further, that if the property subject to such Asset Sale constituted Collateral, then all property purchased with the Net Cash Proceeds thereof pursuant to this subsection
shall be made subject to the Lien of the applicable Security
Documents in favor of the applicable Collateral Agents for their benefit and for the benefit of the other Secured Parties in accordance with  Section 5.11 and Section 5.12. 

        (d)    Casualty Events.    Not later than one Business Day following the receipt of any Net Cash Proceeds from a
Casualty Event by Holdings or any of its Subsidiaries, the applicable Borrower shall make any prepayments required by Section 2.10(b) as well as
any prepayments in accordance with Sections 2.10(f) and (g) in an aggregate amount equal to 100% of such
Net Cash Proceeds; provided that: 

        (i)    so
long as no Default shall then exist or arise therefrom, such proceeds (other than amounts required under  Section 2.10(b) to be prepaid) shall not be required to be so applied on such date to the
extent that Borrowers shall have delivered an Officers'
Certificate to the Administrative Agents on or prior to such date stating that such proceeds are expected to be used to repair, replace or restore any property in respect of which such Net Cash
Proceeds were paid or to reinvest in other fixed or capital assets, no later than 180 days following the 

56

 

date
of receipt of such proceeds; provided that if the property subject to such Casualty Event constituted Collateral under the Security Documents, then
all property purchased with the Net Cash Proceeds thereof pursuant to this subsection shall be made subject to the Lien of the applicable Security Documents in favor of the applicable Collateral
Agents for their benefit and for the benefit of the other Secured Parties in accordance with Section 5.11 and  Section 5.12; and 

        (ii)   if
any portion of such Net Cash Proceeds shall not be so applied within such 180-day period, such unused portion shall be applied on the last day of such
period as a mandatory prepayment as provided in this Section 2.10(d). 

        (e)    [Intentionally
Deleted].    

        (f)    Application of Prepayments.    (i) Prior to any optional or mandatory prepayment hereunder, Borrowers
shall select the Borrowing or Borrowings to be prepaid and shall specify such selection in the notice of such prepayment pursuant to  Section 2.10(g), subject to the provisions of this Section 2.10(f). Any mandatory
prepayments (other than those required by Section 2.10(b)) shall be applied to the Revolving Loans and, upon the Administrative Agent's election,
the Revolving Commitments shall be permanently reduced ratably among the Revolving Lenders in accordance with their applicable Revolving Commitments in an aggregate amount equal to such prepayment and
Borrower shall comply with Section 2.10(b). 

        (ii)   Notwithstanding
the foregoing, in the event that Borrowers have delivered an Officers' Certificate in accordance with  Section 2.10(c) or in accordance with Section 2.10(d)
, (A) the applicable Net Cash
Proceeds shall be applied against the outstanding Revolving Loans, without a permanent reduction in the Commitments, (B) both a Reserve and a reserve against the Commitments
("Line Reserve") shall be established (in the amount of the Net Cash Proceeds less any amounts used for prepayments that were required by  Sections 2.10(b)
because of the sale or disposition of Inventory outside of the ordinary course of business) which Reserve and Line Reserve shall each
be released simultaneously with and to the extent of any Loans advanced to the Borrowers for the purpose of purchasing assets in accordance with  Section 2.10(c) or Section 2.10(d), as applicable; provided Borrowers submit (with the
applicable Borrowing Request) an Officer's Certificate setting forth the use of proceeds of the requested Loan and confirming that such use is in compliance with  Section 2.10(c) or Section 2.10(d), as applicable, and (C) in the event that any
part or all of the Reserve remains in place at the end of the time period set forth in Section 2.10(c) or  Section 2.10(d), as applicable, the
Commitments shall be permanently reduced by an amount equal to such remaining Reserve and, simultaneously
with the such reduction, the remaining Line Reserve shall be released. 

        (iii)  Amounts
to be applied pursuant to this Section 2.10 to the prepayment of Revolving Loans shall, in the absence
of direction from the Borrowers pursuant to Section 2.10(g)(i), be applied to the prepayment of the ABR Loans and Canadian Prime Rate Loans in the discretion of the Administrative Agents. Any
amounts remaining after each such application shall be applied to prepay Eurodollar Revolving Loans or Bankers' Acceptances, as applicable. Notwithstanding the foregoing, if the amount of any
prepayment of Loans required under this Section 2.10 shall be in excess of the amount of the ABR Loans and Canadian Prime Rate Loans at the time
outstanding (an "Excess Amount"), only the portion of the amount of such prepayment as is equal to the amount of such outstanding ABR Loans and Canadian
Prime Rate Loans shall be immediately prepaid and, at the election of the applicable Borrower, the Excess Amount shall be either (A) deposited in an escrow account on terms satisfactory to the
applicable Collateral Agents and applied to the prepayment of Eurodollar Loans or Bankers' Acceptances on the last day of the then next-expiring Interest Period for the applicable 

57

 

Eurodollar
Loans or Bankers' Acceptances, as the case may be; provided that (i) interest in respect of such Excess Amount shall continue to
accrue thereon at the rate provided hereunder for the Loans which such Excess Amount is intended to repay until such Excess Amount shall have been used in full to repay such Loans and (ii) at
any time while a Default has occurred and is continuing, the Administrative Agent may, and upon written direction from the Required Lenders shall, apply any or all proceeds then on deposit to the
payment of such Loans in an amount equal to such Excess Amount or (B) prepaid immediately, together with any amounts owing to the Lenders under  Section 2.13. 

        (g)    Notice of Prepayment.    The applicable Borrower shall notify the applicable Administrative Agent (and, in the
case of prepayment of a Swingline Loan, the applicable Swingline Lender) by written notice of any prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing or Bankers'
Acceptances, not later than 11:00 a.m., New York City time, three Business Days before the date of prepayment, (ii) in the case of prepayment of an ABR Borrowing or a Canadian Prime Rate
Loan, not later than 11:00 a.m., New York City time, one Business Day before the date of prepayment and (iii) in the case of prepayment of a Swingline Loan, not later than
11:00 a.m., New York City time, on the date of prepayment. Each such notice shall be irrevocable; provided that, if a notice of prepayment is
given in connection with a conditional notice of termination of the Commitments as contemplated by Section 2.07, then such notice of prepayment
may be revoked if such termination is revoked in
accordance with Section 2.07. Each such notice shall specify the prepayment date, the principal amount of each Borrowing or portion thereof to be
prepaid and, in the case of a mandatory prepayment, a reasonably detailed calculation of the amount of such prepayment. Promptly following receipt of any such notice (other than a notice relating
solely to Swingline Loans), such Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the
case of a Credit Extension of the same Type as provided in Section 2.02, except as necessary to apply fully the required amount of a mandatory
prepayment. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing and otherwise in accordance with this  Section 2.09. Prepayments shall be
accompanied by accrued interest to the extent required by  Section 2.06. 

        SECTION 2.11.    Alternate Rate of Interest.    

        (a)   If
prior to the commencement of any Interest Period for a Eurodollar Borrowing: 

        (i)    the
applicable Administrative Agent determines (which determination shall be final and conclusive absent manifest error) that adequate and reasonable means do not exist
for ascertaining the Adjusted LIBOR Rate for such Interest Period; or 

        (ii)   the
applicable Administrative Agent is advised in writing by the Required Lenders that the Adjusted LIBOR Rate for such Interest Period will not adequately and fairly
reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period; 

then
such Administrative Agent shall give written notice thereof to the applicable Borrower and the Lenders as promptly as practicable thereafter and, until such Administrative Agent notifies such
Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or continuation
of any Borrowing as, a Eurodollar Borrowing shall be ineffective and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing. 

        (b)   If
prior to the commencement of any Interest Period relating to a Bankers' Acceptance, the Canadian Administrative Agent determines (which determination shall be final
and conclusive absent manifest error) that, by reason of circumstances affecting the money markets, there is no 

58

 

active
market for Bankers' Acceptances or the demand for Bankers' Acceptances is insufficient to allow the sale or trading of the Bankers' Acceptances to be created hereunder, then: 

        (i)    the
right of the Canadian Borrower to request a Canadian Revolving Loan by means of a Bankers' Acceptance shall be suspended until such time as the Canadian
Administrative Agent determines that the circumstances causing such suspension no longer exist and the Canadian Administrative Agent so notifies the Canadian Borrower; 

        (ii)   any
Borrowing Request which calls for the issuance of a Bankers' Acceptance which is outstanding shall be cancelled and such Borrowing Request shall be deemed to be a
request for a Canadian Prime Rate Loan in the face amount of the requested Bankers' Acceptance; 

        (iii)  any
outstanding Interest Election Request requesting a conversion of a Canadian Prime Rate Loan into Bankers' Acceptances or BA Equivalent Loan shall be deemed to be
revoked; and 

        (iv)  any
outstanding Interest Election Request requesting a rollover of Bankers' Acceptances or BA Equivalent Loans shall (unless revoked by the Canadian Borrower before the
Borrowing) be deemed to be an Interest Election Request requesting a conversion of such Loans into Canadian Prime Rate Loans. 

        SECTION 2.12.    Yield Protection.    

        (a)    Increased Costs Generally.    If any Change in Law shall: 

        (i)    impose,
modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the
account of, or credit extended or participated in, by any Lender (except any reserve requirement reflected in the Adjusted LIBOR Rate) or the Issuing Bank; 

        (ii)   subject
any Lender or the Issuing Bank to any tax of any kind whatsoever with respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit
or any Eurodollar Loan made by it or any Bankers' Acceptance purchased or accepted by it, or change the basis of taxation of payments to such Lender or the Issuing Bank in respect thereof (except for
Indemnified Taxes or Other Taxes covered by Section 2.15 and the imposition of, or any change in the rate of, any Excluded Tax payable by such
Lender or the Issuing Bank); or 

        (iii)  impose
on any Lender or the Issuing Bank or the London interbank market any other condition, cost or expense (other than any Taxes) affecting this Agreement or
Eurodollar Loans made by such Lender or any Bankers' Acceptance purchased or accepted by such Lender or any Letter of Credit or participation therein; 

and
the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan or purchasing
or accepting any Bankers' Acceptance), or to increase the cost to such Lender, the Issuing Bank or such Lender's or the Issuing Bank's holding company, if any, of participating in, issuing or
maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or the
Issuing Bank hereunder (whether of principal, interest or any other amount), then, upon request of such Lender or the Issuing Bank, the applicable Borrower will pay to such Lender or the Issuing Bank,
as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered. 

        (b)    Capital Requirements.    If any Lender or the Issuing Bank determines (in good faith, but in its sole absolute
discretion) that any Change in Law affecting such Lender or the Issuing Bank 

59

 

or
any lending office of such Lender or such Lender's or the Issuing Bank's holding company, if any, regarding capital requirements has or would have the effect of reducing the rate of return on such
Lender's or the Issuing Bank's capital or on the capital of such Lender's or the Issuing Bank's holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans
made by, the Bankers' Acceptances purchased or accepted by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that
which such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding company could have achieved but for such Change in Law (taking into consideration such Lender's or the Issuing
Bank's policies and the policies of such Lender's or the Issuing Bank's holding company with respect to capital adequacy), then from time to time the applicable Borrower will pay to such Lender or the
Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding company for any such reduction
suffered. 

        (c)    Certificates for Reimbursement.    A certificate of a Lender or the Issuing Bank setting forth the amount or
amounts necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of this  Section 2.12 and delivered to the
applicable Borrower shall be conclusive absent manifest error. The applicable Borrower shall pay such Lender or
the Issuing Bank, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof. 

        (d)    Delay in Requests.    Failure or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section 2.12 shall not constitute a waiver of such Lender's or the Issuing Bank's right to demand such compensation;  provided that
Borrowers shall not be required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs incurred or
reductions suffered more than nine months prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the applicable Borrower of the Change in Law giving rise to such
increased costs or reductions and of such Lender's or the Issuing Bank's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions
is retroactive, then
the nine-month period referred to above shall be extended to include the period of retroactive effect thereof). 

        SECTION 2.13.    Breakage Payments.    In the event of (a) the payment or prepayment,
whether optional or mandatory, of any principal of any Eurodollar Loan earlier than the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the
conversion of any Eurodollar Loan earlier than the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Revolving Loan on the date
specified in any notice delivered pursuant hereto (regardless of whether such prepayment notice is later revoked in accordance with  Section 2.10(g)), (d) the assignment of any Eurodollar Loan
earlier than the last day of the Interest Period applicable thereto as a
result of a request by Borrowers pursuant to Section 2.16(b) or (e) the reallocation of Loans
pursuant to Section 2.19(d), then, in any such event, the applicable Borrower shall compensate each applicable Lender for the loss, cost and
expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any,
of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBOR Rate that would have been applicable to such Loan,
for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have
been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to
bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the Eurodollar market. A certificate of any Lender setting forth in reasonable detail
any amount or amounts that such Lender is entitled to 

60

 

receive
pursuant to this Section 2.13 shall be delivered to the applicable Borrower (with a copy to the Administrative Agents) and shall be
conclusive and binding absent manifest error. The applicable Borrower shall pay such Lender the amount shown as due on any such certificate within 5 days after receipt thereof. 

        SECTION 2.14.    Payments Generally; Pro Rata Treatment; Sharing of Setoffs.    

        (a)    Payments Generally.    Borrowers shall make each payment required to be made by it hereunder or under any other
Loan Document (whether of principal, interest, fees or Reimbursement Obligations, or of amounts payable under Section 2.12,  Section 2.13,
Section 2.15 or  Section 11.03, or otherwise) on or before the time expressly required hereunder or under such other Loan Document for such
payment (or, if no
such time is expressly required, prior to 2:00 p.m., New York City time), on the date when due, in immediately available funds, without setoff, deduction or counterclaim. Any amounts received
after such time on any date may, in the discretion of the applicable Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest
thereon. All such payments shall be made to the applicable Administrative Agent at the office designated by it from time to time, except payments to be made directly to the Issuing Bank or a Swingline
Lender as expressly provided herein and except that payments pursuant to Section 2.12,  Section 2.13, Section 2.15 and  Section 11.03 shall be made directly to the persons entitled thereto and payments pursuant to other
Loan Documents shall be made to the persons specified therein. The applicable Administrative Agent shall distribute any such payments received by it for the account of any other person to the
appropriate recipient promptly following receipt thereof. If any payment under any Loan Document shall be due on a day that is not a Business Day, unless specified otherwise, the date for payment
shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments under each
Loan Document shall be made in dollars, except as expressly specified otherwise. 

        (b)    Pro Rata Treatment.    

        (i)    Each
payment by Borrowers of interest in respect of its Loans shall be applied to the amounts of such Borrower's obligations owing to the applicable Lenders  pro rata according to the respective amounts then
due and owing to such Lenders. 

        (ii)   Each
payment by Borrowers on account of principal of the Revolving Borrowings shall be made to the applicable Lenders pro
rata based on the principal amounts of the Revolving Loans then held by the Revolving Lenders. 

        (c)    Insufficient Funds.    If at any time insufficient funds are received by and available to the applicable
Administrative Agent to pay fully all amounts of principal, Reimbursement Obligations, interest and fees then due hereunder, such funds shall be applied
(i) first, toward payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of
interest and fees then due to such parties, and (ii) second, toward payment of principal and Reimbursement Obligations then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of principal and Reimbursement Obligations then due to such parties. 

        (d)    Sharing of Set-Off.    Subject to the terms of the Intercreditor Agreement, if any Lender (and/or
the Issuing Bank, which shall be deemed a "Lender" for purposes of this Section 2.14(d)) shall, by exercising any right of setoff or counterclaim
or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or other Obligations resulting in such Lender's receiving payment of a proportion of the aggregate amount of
its Loans and accrued interest thereon or other Obligations greater than its pro rata share thereof as provided herein, then the 

61

 

Lender
receiving such greater proportion shall (a) notify the applicable Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such
other obligations of the other applicable Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the applicable Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them, provided that: 

        (i)    if
any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase
price restored to the extent of such recovery, without interest; and 

        (ii)   the
provisions of this paragraph shall not be construed to apply to (x) any payment made by Borrowers pursuant to and in accordance with the express terms of
this Agreement or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements to any
assignee or participant, other than to Borrowers or any Subsidiary thereof (as to which the provisions of this paragraph shall apply). 

Each
Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under applicable Requirements of Law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation. If under applicable bankruptcy, insolvency or any similar law any Secured Party receives a secured claim in lieu of a setoff or counterclaim to which this  Section 2.14(d) applies, such Secured Party shall to the extent practicable, exercise its rights in respect of such secured claim in a manner
consistent with the rights to which the Secured Party is entitled under this Section 2.14(d) to share in the benefits of the recovery of such
secured claim. 

        (e)    Borrowers Default.    Unless the applicable Administrative Agent shall have received notice from any Borrower
prior to the date on which any payment is due to such Administrative Agent for the account of the Lenders or the Issuing Bank hereunder that Borrowers will not make such payment, the Administrative
Agent may assume that such Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may
be, the amount due. In such event, if the applicable Borrower has not in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the
applicable Administrative Agent forthwith on demand the amount so distributed to such Lender or the Issuing Bank with interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by such Administrative Agent in accordance
with banking industry rules on interbank compensation. 

        (f)    Lender Default.    If any Lender shall fail to make any payment required to be made by it pursuant to  Section 2.02(c),
Section 2.14(e),  Section 2.17(d), Section 2.18(d),  Section 2.18
(e) or Section 11.03(c), then the applicable Administrative Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by such Administrative Agent for the account of such Lender to satisfy such Lender's obligations under
such Sections until all such unsatisfied obligations are fully paid. 

        SECTION 2.15.    Taxes.    

        (a)    Payments Free of Taxes.    Any and all payments by or on account of any obligation of the Loan Parties
hereunder or under any other Loan Document shall be made free and clear of and without deduction or withholding for any Indemnified Taxes or Other Taxes;  provided that if the 

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Loan
Parties shall be required by applicable Requirements of Law to deduct any Indemnified Taxes (including any Other Taxes) from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the applicable Administrative Agent, the applicable Collateral
Agent, Lender or Issuing Bank, as the case may be, receives an amount equal to the sum it would have received had no such deductions been made, (ii) the applicable Loan Party shall make such
deductions and (iii) the applicable Loan Party shall timely pay the full amount deducted to the relevant Governmental Authority in accordance with applicable Requirements of Law. 

        (b)    Payment of Other Taxes by Borrowers.    Without limiting the provisions of paragraph (a) above,
Borrowers shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable Requirements of Law. 

        (c)    Indemnification by Borrowers.    Borrowers shall indemnify the Agents, each Lender and the Issuing Bank, within
10 days after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable
under this Section) paid by the Agents, such Lender or the Issuing Bank, as the case may be, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to
Borrowers by a Lender or the Issuing Bank (with a copy to the Administrative Agents), or by the Agents on their own behalf or on behalf of a Lender or the Issuing Bank, shall be conclusive absent
manifest error. 

        (d)    Evidence of Payments.    As soon as practicable after any payment of Indemnified Taxes or Other Taxes by
Borrowers to a Governmental Authority, Borrowers shall deliver to the Administrative Agents the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment,
a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agents. 

        (e)    Status of Lenders.    Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which US Borrowers are resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments hereunder or under any other Loan
Document shall, to the extent it may lawfully do so, deliver to US Borrowers (with a copy to the Administrative Agents), at the time or times prescribed by applicable Requirements of Law or as
reasonably requested by US Borrowers or the Administrative Agents, such properly completed and executed documentation prescribed by applicable Requirements of Law as will permit such payments to be
made without withholding or at a reduced rate of withholding. In addition, any Lender, if requested
by US Borrowers or either Administrative Agent, shall deliver such other documentation prescribed by applicable Requirements of Law or reasonably requested by US Borrowers or the Administrative Agents
as will enable US Borrowers or the Administrative Agents to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the
contrary in the above two sentences, in the case of non-U.S. withholding taxes the completion, execution and submission of non-U.S. forms shall not be required if in the
Lender's judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would be otherwise disadvantageous to such Lender in any material
respect. 

        Each
initial Canadian Lender of the Canadian Borrower represents and warrants to the Canadian Borrower that on the Closing Date (a) (i) it is not a "non-resident"
within the meaning of the ITA; or (ii) it is an "authorized foreign bank" within the meaning of the Bank Act for 

63

 

purposes
of the ITA, and is entering into this Agreement in the ordinary course of its trade and business that is its "Canadian banking business" for purposes of the ITA, and each amount paid or
credited by or to it in respect of the transactions contemplated hereunder is, and will be brought into account and recorded and reported in computing its income for Canadian tax purposes as having
been made or received as the case may be, in respect of its "Canadian banking business" as so defined; and (b) has no present intention to withdraw from this Agreement. Upon the written request
of the Canadian Administrative Agent or the Canadian Borrower acting reasonably, each such Canadian Lender shall use its best efforts to deliver to the Canadian Administrative Agent and Canadian
Borrower such certificates, documents or other evidence as may be required from time to time, properly completed and duly executed by such Canadian Lender, to confirm the continuing accuracy of the
foregoing representation or alternatively, shall deliver a notice to the Canadian Borrower indicating the facts and circumstances (other than facts and circumstances brought about unilaterally by such
Canadian Lender) which have resulted in the above representation and warranty no longer continuing to be true and accurate. If such Canadian Lender fails to deliver such requested certificates,
documents, other evidence on the one hand, or such notice on the other or, for greater certainty, the facts and circumstances relating to the change of the status of the Canadian Lender have been
brought about unilaterally by such Canadian Lender, then the Canadian Borrower or the Canadian Administrative Agent, as the case may be, shall withhold from any interest payment to such Canadian
Lender an amount equivalent to the applicable Canadian withholding tax imposed by applicable Canadian laws (including any applicable tax treaty) and the Canadian Borrower shall not be required to pay
any additional or other amounts to such Canadian Lender under Section 2.15(a). From time to time, each such Canadian Lender shall (i) promptly submit to the Canadian Administrative Agent
and the Canadian Borrower such certificates, documents, other evidence or notice as aforesaid, (ii) promptly notify the Canadian Administrative Agent and the Canadian Borrower of any change in
circumstances which would result in the above representation and warranty no longer continuing to be true and accurate, and (iii) take such steps as shall not be materially disadvantageous to
it, in the reasonable judgment of such Canadian Lender, and as may be reasonably necessary (including the re-designation of its Lending Office) to avoid any requirement of applicable laws
that the Canadian Borrower make any deduction or withholding for Taxes from amounts payable to such Canadian Lender. Notwithstanding the foregoing, but subject to  Section 11.04(b)(v), the Borrowers
acknowledge that the rights and obligations of a Canadian Lender hereunder may be assigned to an Eligible
Assignee that does not qualify as an Eligible Canadian Lender and further agree that any Borrower approval required in respect of such an assignment shall not be withheld on such basis. 

        Without
limiting the generality of any of the foregoing, any Foreign Lender shall, to the extent it may lawfully do so, deliver to US Borrowers and the Administrative Agents (in such
number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the request
of Administrative Borrower or either Administrative Agent, but only if such Foreign Lender is legally entitled to do so), whichever of the following is applicable: 

        (i)    duly
completed copies of Internal Revenue Service Form W-8BEN claiming eligibility for benefits of an income tax treaty to which the United States of
America is a party, 

        (ii)   duly
completed copies of Internal Revenue Service Form W-8ECI, 

        (iii)  in
the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate, in
substantially the form of Exhibit Q, or any other form approved by the applicable Administrative Agent, to the effect that such Foreign Lender is
not (A) a "bank" within the meaning of Section 881(c)(3)(A) of the Code, (B) a "10 percent shareholder" of any Borrower within the meaning of 

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Section 881(c)(3)(B)
of the Code, or (C) a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue
Service Form W-8BEN, or 

        (iv)  any
other form prescribed by applicable Requirements of Law as a basis for claiming exemption from or a reduction in United States Federal withholding tax duly
completed together with such supplementary documentation as may be prescribed by applicable Requirements of Law to permit Borrower to determine the withholding or deduction required to be made. 

        (v)   any
Lender that is not a Foreign Lender and has not otherwise established to the reasonable satisfaction of the Administrative Borrower and the Administrative Agent that
it is an exempt recipient (as defined in Section 6049(b)(4) of the Code and the regulations thereunder) shall deliver to the Administrative Borrower (with a copy to the US Administrative Agent)
on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter as prescribed by Applicable Law or upon the request of the Administrative Borrower
or the US Administrative Agent) two duly executed and properly completed copies of Internal Revenue Service Form W-9 (or applicable successor form). Each Lender (other than a
Foreign Lender) shall promptly notify the Administrative Borrower and the US Administrative Agent at any time that it determines any previously delivered form or certification is no longer accurate. 

        Each
Foreign Lender shall promptly notify the Administrative Borrower and each Administrative Agent at any time that a previously delivered form of certificate is no longer accurate. 

        (f)    Treatment of Certain Refunds.    If either Administrative Agent, a Lender or the Issuing Bank determines, in
its sole discretion, that it has received a refund of any Indemnified Taxes or Other Taxes as to which it has been indemnified by Borrowers or with respect to which Borrowers have paid additional
amounts pursuant to this Section, it shall pay to Borrowers an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by Borrowers under this
Section with respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of such Administrative Agent, such Lender or the
Issuing Bank, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund);  provided that Borrowers, upon the request of
either Administrative Agent, such Lender or the Issuing Bank, agrees to repay the amount paid over to
Borrowers (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to such Administrative Agent, such Lender or the Issuing Bank in the event such Administrative
Agent, such Lender or the Issuing Bank is required to repay such refund to such Governmental Authority. If and to the extent that any Lender is able, in its sole opinion, to apply or otherwise take
advantage of any offsetting tax credit or other similar tax benefit arising out of or in conjunction with any deduction or withholding which gives rise to an obligation of a Borrower to pay any
additional amount pursuant to this Section 2.15, then such Lender shall, to the extent that in its sole opinion it can do so without prejudice to the retention of the amount of such credit or
benefit and without any other adverse tax consequences for such Lender, reimburse such Borrower at such time as such tax credit or benefit shall have actually been received by such Lender such amount
as such Lender shall, in its sole opinion, have determined to be attributable to the relevant deduction or withholding and as will leave such Lender in no better or worse position than it would have
been in if the payment of such additional amount had not been required. (net of all out-of-pocket expenses of such Administrative Agent, such Lender or the Issuing Bank, as the
case may be); provided that the Borrowers upon the request of either Administrative Agent, such Lender or the Issuing Bank agrees to repay the amount paid over to the Borrowers (plus any penalties,
interest or other charges imposed by the 

65

 

relevant
Governmental Authority) in the event Governmental Authority successfully challenges such tax credits or other tax benefits. 

This
section shall not be construed to require either Administrative Agent, any Lender or the Issuing Bank to make available its tax returns (or any other information relating to its taxes that it
deems confidential) to Borrowers or any other person. Notwithstanding anything to the contrary, in no event will any Administrative Agent, any Lender or the Issuing Bank be required to pay any amount
to Borrowers the payment of which would place such Lender, such Administrative Agent or the Issuing Bank in a less favorable net after-tax position than such Lender, such Administrative
Agent or the Issuing Bank would have been in if the additional amounts giving rise to such refund of any Indemnified Taxes or Other Taxes had never been paid. 

        (g)   Upon
the reasonable request of the Canadian Borrower, and at the Canadian Borrower's expense, a Canadian Lender shall use its reasonable efforts to
co-operate with the Canadian Borrower with a view to obtaining a refund of any Tax which is not, in the Canadian Borrower's reasonable opinion, correctly or legally imposed and for which
the Canadian Borrower has indemnified the Canadian Lender under this Agreement, if obtaining such refund would not, in the sole judgment of the Canadian Lender, be disadvantageous to the Canadian
Lender; provided that nothing in this clause shall be construed to require the Canadian Lender to institute any administrative proceeding (other than the filing of a claim for any such refund) or
judicial proceeding to obtain any such refund. If such Canadian Lender shall receive a refund from a taxing authority (as a result of any error in the imposition of Taxes by such taxing authority) or
any Taxes paid by the Canadian Borrower pursuant to this Agreement, the Canadian Lender shall promptly pay to the Canadian Borrower the amount so received, less any Taxes imposed on the Canadian
Lender as a result of such amount and net out-of-pocket expenses provided that the Canadian Lender shall only be required to pay the Canadian Borrower such amounts as the
Canadian Lender determines are attributable to Taxes paid by the Canadian Borrower. In the event that the Canadian Lender is required to repay the amount of such refund (including interest, if any),
the Canadian Borrower, upon the request of the Canadian Lender, agrees to promptly return to the Canadian Lender the amount of such refund and interest, if any (plus penalties, interest and other
charges imposed in connection with the repayment of such amounts by the Canadian Lender). 

        SECTION 2.16.    Mitigation Obligations; Replacement of Lenders.    

        (a)    Designation of a Different Lending Office.    If any Lender requests compensation under  Section 2.12, or requires
Borrowers to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.15, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans
hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 2.12 or Section 2.15, as the case
may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. A certificate setting forth such costs and expenses submitted by such Lender to Borrower
shall be conclusive absent manifest error. 

        (b)    Replacement of Lenders.    If any Lender requests compensation under  Section 2.12, or if Borrowers are required to pay
any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.15, or if any Lender defaults in its obligation to fund Loans hereunder, or if Borrowers exercises their replacement rights
under Section 11.02(d), then Borrowers may, at their sole expense and effort, upon notice to such Lender 

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and
the Administrative Agents, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by,  Section 11.04),
all of its interests, rights and obligations under this Agreement and the other Loan Documents to an Eligible Assignee that shall
assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that: 

        (i)    Borrowers
shall have paid to the applicable Administrative Agent the processing and recordation fee specified in  Section 11.04(b); 

        (ii)   such
Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements and Swingline Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under  Section 2.13), from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or Borrowers(in the case of all
other amounts); 

        (iii)  in
the case of any such assignment resulting from a claim for compensation under Section 2.12 or payments
required to be made pursuant to Section 2.15, such assignment will result in a reduction in such compensation or payments thereafter; and 

        (iv)  such
assignment does not conflict with applicable Requirements of Law. 

A
Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling Borrowers to require such
assignment and delegation cease to apply. 

        SECTION 2.17.    Swingline Loans.    

        (a)    US Swingline Commitment.    Subject to the terms and conditions set forth herein, the US Swingline Lender
agrees to make US Swingline Loans to US Borrowers from time to time during the Revolving Availability Period, in an aggregate principal amount at any time outstanding that will not result in the
aggregate principal amount of outstanding US Swingline Loans exceeding $35 million and provided that after making a US Swingline Loan, the sum of the total US Revolving Exposures shall not
exceed the lesser of (A) the total Revolving Commitments minus any Line Reserve and (B) the Borrowing Base then in effect; provided that
the US Swingline Lender shall not be required to make a US Swingline Loan to refinance an outstanding Swingline Loan. Within the foregoing limits and subject to the terms and conditions set forth
herein, US Borrowers may borrow, repay and reborrow US Swingline Loans. 

        (b)    US Swingline Loans.    To request a US Swingline Loan, Administrative Borrower shall deliver, by hand delivery
or telecopier, a duly completed and executed Borrowing Request to the US Administrative Agent and the US Swingline Lender, not later than 2:00 p.m., New York City time, on the day of a proposed
Swingline Loan. Each such notice shall be irrevocable and shall specify the requested date (which shall be a Business Day) and the amount of the requested US Swingline Loan. Each US Swingline Loan
shall be an ABR Loan. The US Swingline Lender shall make each US Swingline Loan available to the applicable US Borrower by means of a credit to the general deposit account of such US Borrower with the
US Swingline Lender (or, in the case of a US Swingline Loan made to finance the reimbursement of an LC Disbursement as provided in  Section 2.18(e), by remittance to the Issuing Bank) by
3:00 p.m., New York City time, on the requested date of such US Swingline Loan. US
Borrowers shall not request a US Swingline Loan if at the time of or immediately after giving effect to the extension of credit contemplated by such request a Default has occurred and is continuing or
would result therefrom. US Swingline Loans shall be made in minimum amounts of $1.0 million and integral multiples of $500,000 above such amount. 

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        (c)    Prepayment.    US Borrowers shall have the right at any time and from time to time to repay any US Swingline
Loan, in whole or in part, upon giving written notice to the US Swingline Lender and the US Administrative Agent before 12:00 (noon), New York City time, on the proposed date of repayment. 

        (d)    Canadian Swingline Commitment.    Subject to the terms and conditions set forth herein, the Canadian Swingline
Lender agrees to make Canadian Swingline Loans to Canadian Borrower from time to time during the Revolving Availability Period, in an aggregate principal amount at any time outstanding that will not
result in the aggregate principal amount of outstanding Canadian Swingline Loans exceeding $5.0 million and provided that after making a Canadian Swingline Loan, the sum of the total Canadian
Exposures shall not exceed the lesser of (A) the total Canadian Revolving Commitments minus any Line Reserve allocated to the Canadian Revolving Commitments and (B) the Canadian
Borrowing Base then in effect; provided that the Canadian Swingline Lender shall not be required to make a Canadian Swingline Loan to refinance an
outstanding Swingline Loan. Within the foregoing limits and subject to the terms and conditions set forth herein, Canadian Borrower may borrow, repay and reborrow Canadian Swingline Loans. 

        (e)    Canadian Swingline Loans.    To request a Swingline Loan, Administrative Borrower shall deliver, by hand
delivery or telecopier, a duly completed and executed Borrowing Request to the Canadian Administrative Agent and the Canadian Swingline Lender, not later than 2:00 p.m., New York City time, on
the day of a proposed Canadian Swingline Loan. Each such notice shall be irrevocable and shall specify the requested date (which shall be a Business Day) and the amount of the requested Canadian
Swingline Loan. Each Canadian Swingline Loan shall be a Canadian Prime Rate Loan. The Canadian Swingline Lender shall make each Canadian Swingline Loan available to Canadian Borrower by means of a
credit to the general deposit account of Canadian Borrower with the Canadian Swingline Lender by 3:00 p.m., New York City time, on the requested date of such Canadian Swingline Loan. Canadian
Borrower shall not request a Canadian Swingline Loan if at the time of or immediately after giving effect to the extension of credit contemplated by such request a Default has occurred and is
continuing or would result therefrom. Canadian Swingline Loans shall be made in minimum amounts of Can$1.0 million and integral multiples of Can$500,000 above such amount. 

        (f)    Prepayment.    Canadian Borrower shall have the right at any time and from time to time to repay any Canadian
Swingline Loan, in whole or in part, upon giving written notice to the Canadian Swingline Lender and the Canadian Administrative Agent before 12:00 (noon), New York City time, on the proposed date of
repayment. 

        (g)    Participations.    Either Swingline Lender may at any time in its discretion by written notice given to the
applicable Administrative Agent (provided such notice requirement shall not apply if either (i) the US Swingline Lender and the US Administrative
Agent are the same entity or (ii) the Canadian Swingline Lender and the Canadian Administrative Agent are the same entity, as applicable) not later than 11:00 A.M., New York City time,
on the next succeeding Business Day following such notice require the Revolving Lenders to acquire participations on such Business Day in all or a portion of the Swingline Loans then outstanding. Such
notice shall specify the aggregate amount of Swingline Loans in which Revolving Lenders will participate. Promptly upon receipt of such notice, the applicable Administrative Agent will give notice
thereof to each Revolving Lender, specifying in such notice such Lender's Pro Rata Percentage of such Swingline Loan or Loans. Each Revolving Lender hereby absolutely and unconditionally agrees, upon
receipt of notice as provided above, to pay to the applicable Administrative Agent, for the account of the applicable Swingline Lender, such Lender's Pro Rata Percentage of such Swingline Loan or
Swingline Loans. Each Revolving Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and unconditional and shall not
be affected by any circumstance whatsoever, including the occurrence and continuance of 

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a
Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever (so long as such payment shall not
cause such Lender's Revolving Exposure to exceed such Lender's Revolving Commitment). Each Revolving Lender shall comply with its obligation under this paragraph by wire transfer of immediately
available funds, in the same manner as provided in Section 2.02(c) with respect to Loans made by such Lender (and  Section 2.02 shall apply,
mutatis mutandis, to the payment obligations of the Revolving Lenders),
and the applicable Administrative Agent shall promptly pay to the applicable Swingline Lender the amounts so received by it from the Revolving Lenders. The applicable Administrative Agent shall notify
Administrative Borrower of any participations in any Swingline Loan acquired by the Revolving Lenders pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan shall be
made to such Administrative Agent and not to such Swingline Lender. Any amounts received by any Swingline Lender from any Borrower (or other party on behalf of Borrowers) in respect of a Swingline
Loan after receipt by such Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted to the Administrative Agents. Any such amounts received by the Administrative
Agents shall be promptly remitted by the Administrative Agents to the Revolving Lenders that shall have made their payments pursuant to this paragraph, as their interests may appear. The purchase of
participations in a Swingline Loan pursuant to this paragraph shall not relieve Borrowers of any default in the payment thereof. 

        SECTION 2.18.    Letters of Credit.    

        (a)    General.    Subject to the terms and conditions set forth herein, US Borrowers may request the Issuing Bank,
and the Issuing Bank agrees, to issue Letters of Credit denominated in any Approved Currency for its own account or the account of a Subsidiary in a form reasonably acceptable to the US Administrative
Agent and the Issuing Bank, at any time and from time to time during the Revolving Availability Period (provided that US Borrowers shall be a
co-applicant, and be jointly and severally liable, with respect to each Letter of Credit issued for the account of a Subsidiary). Upon receipt of an LC Request in accordance with  Section 2.18(b)
below, the US Administrative Agent shall notify the Issuing Bank as to whether the issuance of such Letter of Credit is
authorized. The Issuing
Bank shall not issue any Letter of Credit without first receiving such authorization and US Borrowers shall not request the issuance of, any Letter of Credit at any time if after giving effect to such
issuance, the LC Exposure would exceed the LC Commitment or the total Revolving Exposure would exceed the limits set forth in clause (b) below. In the event of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by US Borrowers to, or entered into by US Borrowers with,
the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control. Borrowers and Guarantors hereby acknowledge and agree that, effective on the date hereof,
each of the Existing Issuing Bank Letters of Credit shall be deemed and shall each constitute a Letter of Credit as if such Existing Issuing Bank Letters of Credit were originally issued as a Letter
of Credit hereunder and shall be subject to the terms and conditions of this Agreement. 

        (b)    Request for Issuance, Amendment, Renewal, Extension; Certain Conditions and Notices.    To request the issuance
of a Letter of Credit or the amendment, renewal or extension of an outstanding Letter of Credit, US Borrowers shall deliver, by hand or telecopier (or transmit by electronic communication, if
arrangements for doing so have been approved by the Issuing Bank), an LC Request to the Issuing Bank and the US Administrative Agent not later than 11:00 a.m. on the third Business Day
preceding the requested date of issuance, amendment, renewal or extension (or such later date and time as is acceptable to the Issuing Bank). 

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        Each
LC Request for an initial issuance of a Letter of Credit shall specify in form and detail satisfactory to the Issuing Bank the following: 

        (i)    the
proposed issuance date of the requested Letter of Credit (which shall be a Business Day); 

        (ii)   the
amount and the currency thereof (which shall be any Approved Currency); 

        (iii)  the
expiry date thereof (which shall not be later than the close of business on the Letter of Credit Expiration Date); 

        (iv)  the
name and address of the beneficiary thereof; 

        (v)   whether
the Letter of Credit is to be issued for its own account or for the account of one of its Subsidiaries (provided
that US Borrowers shall be a co-applicant, and therefor jointly and severally liable, with respect to each Letter of Credit issued for the account of a Subsidiary); 

        (vi)  the
documents to be presented by such beneficiary in connection with any drawing thereunder; 

        (vii) the
full text of any certificate to be presented by such beneficiary in connection with any drawing thereunder; and 

        (viii) such
other matters as the Issuing Bank may require. 

        A
request for an amendment, renewal or extension of any outstanding Letter of Credit shall specify in form and detail satisfactory to the Issuing Bank: 

        (i)    the
Letter of Credit to be amended, renewed or extended; 

        (ii)   the
proposed date of amendment, renewal or extension thereof (which shall be a Business Day); 

        (iii)  the
nature of the proposed amendment, renewal or extension; and 

        (iv)  such
other matters as the Issuing Bank may require. 

If
requested by the Issuing Bank, US Borrowers also shall submit a letter of credit application on the Issuing Bank's standard form in connection with any request for a Letter of Credit, but in the
event of any inconsistency between such standard form and this Agreement, the terms of this Agreement shall control. A Letter of Credit shall be issued, amended, renewed or extended only if (and, upon
issuance, amendment, renewal or extension of each Letter of Credit, US Borrowers shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension,
(i) the LC Exposure shall not exceed the LC Commitment, (ii) the total Revolving Exposures shall not exceed the lesser of (A) the total Revolving Commitments minus any Line
Reserve and (B) the Borrowing Base then in effect and (iii) the conditions set forth in Article IV in respect of such issuance,
amendment, renewal or extension shall have been satisfied. Unless the Issuing Bank shall agree otherwise, no Letter of Credit shall be in an initial amount less than $100,000, in the case of a
Commercial Letter of Credit, or $500,000, in the case of a Standby Letter of Credit. 

        Upon
the issuance of any Letter of Credit or amendment, renewal, extension or modification to a Letter of Credit, the Issuing Bank shall promptly notify the US Administrative Agent, who
shall promptly notify each Revolving Lender, thereof, which notice shall be accompanied by a copy of such Letter of Credit or amendment, renewal, extension or modification to a Letter of Credit and
the amount of such Lender's respective participation in such Letter of Credit pursuant to Section 2.18. On the first Business Day of each
calendar month, the Issuing Bank shall provide to the US Administrative Agent a report listing all 

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outstanding
Letters of Credit and the outstanding amounts and beneficiaries thereof and the amount and maturities of any LC Acceptances and the US Administrative Agent shall promptly provide such
report to each Revolving Lender. 

        (c)    Expiration Date.    Each Letter of Credit shall expire (or be subject to non-renewal or termination
by the US Administrative Agent) at or prior to the close of business on the earlier of (x) the date which is one year after the date of the issuance of such Letter of Credit (or, in the case of
any renewal or extension thereof, one year after such renewal or extension) and (y) the Letter of Credit Expiration Date. 

        (d)    Participations.    By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the
amount thereof) and without any further action on the part of the Issuing Bank or the Lenders, the Issuing Bank hereby irrevocably grants to each Revolving Lender, and each Revolving Lender hereby
acquires from the Issuing Bank, a participation in such Letter of Credit equal to such Revolving Lender's Pro Rata Percentage of the aggregate amount available to be drawn under such Letter of Credit.
In consideration and in furtherance of the foregoing, each Revolving Lender hereby absolutely and unconditionally agrees to pay to the US Administrative Agent, for the account of the Issuing Bank,
such Revolving Lender's Pro Rata Percentage of each LC Disbursement made by the Issuing Bank and not reimbursed by US Borrowers on the date due as provided in  Section 2.18(d), or of any
reimbursement payment required to be refunded to US Borrowers for any reason. Each Revolving Lender acknowledges and
agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever,
including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments, or expiration, termination or cash
collateralization of any Letter of Credit and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. 

        (e)    Reimbursement.    

        (i)    If
the Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit or LC Acceptance, US Borrowers (or Canadian Borrower, in the first instance, and US
Borrowers, alternatively, for Letters of Credit governed by Section 2.18(m)) shall reimburse such LC Disbursement by paying to the Issuing Bank
an amount equal to such LC Disbursement not later than 3:00 p.m., New York City time, on the date that such LC Disbursement is made if Administrative Borrower shall have
received notice of such LC Disbursement prior to 11:00 a.m., New York City time, on such date, or, if such notice has not been received by Administrative Borrower prior to such time on such
date, then not later than 3:00 p.m., New York City time, on the Business Day immediately following the day that Administrative Borrower receives such notice;  provided that US Borrowers may, subject
to the conditions to borrowing set forth herein, request in accordance with  Section 2.03 that such payment be financed with ABR Revolving Loans or Swingline Loans in an equivalent amount and, to
the extent so financed,
Administrative Borrowers' obligation to make such payment shall be discharged and replaced by the resulting ABR Revolving Loans or Swingline Loans. 

        (ii)   If
US Borrowers (or Canadian Borrower and US Borrowers for Letters of Credit governed by Section 2.18(m)) fail to
make such payment when due, the Issuing Bank shall notify the US Administrative Agent and the US Administrative Agent shall notify each Revolving Lender of the applicable LC Disbursement, the payment
then due from US Borrowers in respect thereof and such Revolving Lender's Pro Rata Percentage thereof. Each Revolving Lender shall pay by wire transfer of immediately available funds to the US
Administrative Agent not later than 2:00 p.m., New York City time, on such date (or, if such Revolving Lender shall have received such notice later than 12:00 noon, New York City time, 

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on
any day, not later than 11:00 a.m., New York City time, on the immediately following Business Day), an amount equal to such Revolving Lender's Pro Rata Percentage of the unreimbursed LC
Disbursement in the same manner as provided in Section 2.02(c) with respect to Revolving Loans made by such Revolving Lender, and the US
Administrative Agent will promptly pay to the Issuing Bank the amounts so received by it from the Revolving Lenders. The US Administrative Agent will promptly pay to the Issuing Bank any amounts
received by it from US Borrowers or Canadian Borrower, as the case may be, pursuant to the above paragraph prior to the time that any Revolving Lender makes any payment pursuant to the preceding
sentence and any such amounts received by the US Administrative Agent from US Borrowers or Canadian Borrower, as the case may be, thereafter will be promptly remitted by the US Administrative Agent to
the Revolving Lenders that shall have made such payments and to the Issuing Bank, as appropriate. 

        (iii)  If
any Revolving Lender shall not have made its Pro Rata Percentage of such LC Disbursement available to the US Administrative Agent as provided above, each of such
Revolving Lender and US Borrowers severally agree to pay interest on such amount, for each day from and including the date such amount is required to be paid in accordance with the foregoing to but
excluding the date such amount is paid, to the US Administrative Agent for the account of the Issuing Bank at (i) in the case of US Borrower, the rate per annum set forth in  Section 2.18(h)
and (ii) in the case of such Lender, at a rate determined by the US Administrative Agent in accordance with banking
industry rules or practices on interbank compensation. 

        (iv)  All
payments made pursuant to this Section 2.18(e) shall be in the Approved Currency in which the LC Disbursement
giving rise to such payment is denominated. 

        (f)    Obligations Absolute.    The Reimbursement Obligation of US Borrowers and Canadian Borrower, as applicable, as
provided in Section 2.18(e) shall be absolute, unconditional and irrevocable, and shall be paid and performed strictly in accordance with the
terms of this Agreement 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 being proved to be forged, fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect; (iii) payment by the Issuing Bank (or creation of an LC Acceptance) under a Letter of Credit against presentation of a draft or other document that
fails to comply with the terms of such Letter of Credit; (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 2.18, constitute a legal or equitable discharge of, or provide a right of setoff against, the obligations of US Borrowers and
Canadian Borrower, as applicable, hereunder; (v) the fact that a Default shall have occurred and be continuing; or (vi) any material adverse change in the business, property, results of
operations, prospects or condition, financial or otherwise, of US Borrowers and its Subsidiaries. None of the Agents, the Lenders, the Issuing Bank or any of their Affiliates shall have any liability
or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any LC Acceptance 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 Issuing Bank; provided that the foregoing shall not be construed to excuse the Issuing Bank from liability to US Borrowers or Canadian
Borrower, as applicable, to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by Borrowers to the extent permitted by applicable 

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Requirements
of Law) suffered by US Borrowers or Canadian Borrower, as applicable, that are caused by the Issuing Bank'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 Issuing Bank (as
finally determined by a court of competent jurisdiction), the Issuing Bank 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 Issuing Bank 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. 

        (g)    Disbursement Procedures.    The Issuing Bank shall, promptly following its receipt thereof, examine all
documents purporting to represent a demand for payment (or creation of an LC Acceptance) under a Letter of Credit. The Issuing Bank shall promptly give written notice to the US Administrative Agent
and US Borrowers of such demand for payment and whether the Issuing Bank has made or will make an LC Disbursement thereunder (or, in the case of the creation of an LC Acceptance, the date payment is
due thereunder); provided that any failure to give or delay in giving such notice shall not relieve Administrative Borrower or Canadian Borrower, as
applicable, of its Reimbursement Obligation to the Issuing Bank and the Revolving Lenders with respect to any such LC Disbursement (other than with respect to the timing of such Reimbursement
Obligation set forth in Section 2.18(e)). 

        (h)    Interim Interest.    If the Issuing Bank shall make any LC Disbursement, then, unless US Borrowers or Canadian
Borrower, as applicable, shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest payable on demand, for each day from and
including the date such LC Disbursement is made to but excluding the date that US Borrowers or Canadian Borrower, as applicable, reimburse such LC Disbursement, at the rate per annum determined
pursuant to Section 2.06(e). Interest accrued pursuant to this paragraph shall be for the account of the Issuing Bank, except that interest
accrued on and after the date of payment by any Revolving Lender pursuant to Section 2.18(e) to reimburse the Issuing Bank shall be for the
account of such Lender to the extent of such payment. 

        (i)    Cash Collateralization.    If any Event of Default shall occur and be continuing, on the Business Day that
Administrative Borrower receives notice from the US Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, Revolving Lenders with LC Exposure representing
greater than 50% of the total LC Exposure) demanding the deposit of cash collateral pursuant to this paragraph, US Borrowers shall deposit on terms and in accounts satisfactory to the applicable
Collateral Agents, in the name of the applicable Collateral Agents and for the benefit of the Revolving Lenders, an amount in cash equal to the LC Exposure as of such date plus any accrued and unpaid
interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become
immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to US Borrowers described in  Section 8.01(g) or Section 8.01(h). Funds so deposited shall be applied by the applicable
Collateral Agents to reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of outstanding
Reimbursement Obligations or, if the maturity of the Loans has been accelerated (but subject to the consent of Revolving Lenders with LC Exposure representing greater than 50% of the total LC
Exposure), be applied to satisfy other Obligations of US Borrowers under this Agreement. If US Borrowers are required to provide an amount of cash collateral hereunder as a result of the occurrence of
an Event of Default, such 

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amount
plus any accrued interest or realized profits with respect to such amounts (to the extent not applied as aforesaid) shall be returned to US
Borrowers within three Business Days after all Events of Default have been cured or waived. 

        (j)    Additional Issuing Banks.    US Borrowers may, at any time and from time to time, designate one or more
additional Revolving Lenders to act as an issuing bank under the terms of this Agreement, with the consent of the US Administrative Agent (which consent shall not be unreasonably withheld), the
Issuing Bank and such Revolving Lender(s). Any Lender designated as an issuing bank pursuant to this paragraph (j) shall be deemed (in addition to being a Revolving Lender) to be the Issuing
Bank with respect to Letters of Credit issued or to be issued by such Revolving Lender, and all references herein and in the other Loan Documents to the term "Issuing Bank" shall, with respect to such
Letters of Credit, be deemed to refer to such Revolving Lender in its capacity as Issuing Bank, as the context shall require. 

        (k)    Resignation or Removal of the Issuing Bank.    The Issuing Bank may resign as Issuing Bank hereunder at any
time upon at least 30 days' prior notice to the Lenders, the Administrative Agents and Administrative Borrower. The Issuing Bank may be replaced at any time by written agreement among US
Borrowers, each Agent, the replaced Issuing Bank and the successor Issuing Bank. US Administrative Agent shall notify the Lenders of any such replacement of the Issuing Bank or any such additional
Issuing Bank. At the time any such resignation or replacement shall become effective, US Borrowers shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to  Section 2.05(c). From and after the effective date of any such resignation or replacement or addition, as applicable, (i) the successor or
additional Issuing Bank shall have all the rights and obligations of the Issuing Bank under this Agreement with respect to Letters of Credit to be issued by it thereafter and (ii) references
herein to the term "Issuing Bank" shall be deemed to refer to such successor or such addition or to any previous Issuing Bank, or to such successor or such addition and all previous Issuing Banks, as
the context shall require. After the resignation or replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and
obligations of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such resignation or replacement, but shall not be required to issue additional Letters of
Credit. If at any time there is more than one Issuing Bank hereunder, US Borrowers may, in their discretion, select which Issuing Bank is to issue any particular Letter of Credit. 

        (l)    Other.    The Issuing Bank shall be under no obligation to issue any Letter of Credit if 

        (i)    any
order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the Issuing Bank from issuing such Letter of
Credit, or any Requirement of Law applicable to the Issuing Bank or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the Issuing
Bank shall prohibit, or request that the Issuing Bank refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the Issuing Bank with
respect to such Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Bank is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose
upon the Issuing Bank any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which the Issuing Bank in good faith deems material to it; or 

        (ii)   the
issuance of such Letter of Credit would violate one or more policies of the Issuing Bank. 

The
Issuing Bank shall be under no obligation to amend any Letter of Credit if (A) the Issuing Bank would have no obligation at such time to issue such Letter of Credit in its amended form
under the 

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terms
hereof, or (B) the beneficiary of such Letter of Credit does not accept the proposed amendment to such Letter of Credit. 

        (m)  Notwithstanding
the foregoing, at no time shall there be greater than $10 million outstanding of Letters of Credit issued for the account of Canadian Borrower
and/or Canadian Guarantors and any such Letters of Credit issued for the account of Canadian Borrower and/or the Canadian Guarantors shall be treated as if issued for the account of a US Borrower for
purposes of calculating the Borrowing Base. The Canadian Borrower shall have the primary responsibility for the Reimbursement Obligation with respect to any such Letter of Credit through the borrowing
of Canadian Revolving Loans; provided, that in the event Canadian Borrower shall not reimburse such Issuing Bank then such obligation shall be for the account of US Borrowers as provided in  Section 2.18(e). 

        SECTION 2.19.    Increase in Commitments.    

        (a)    Borrower Request.    The Borrowers may by written notice to the Administrative Agents elect to request prior to
the Revolving Maturity Date, an increase to the existing Revolving Commitments by an amount not in excess of $100 million in the aggregate and not less than $50 million individually
(unless otherwise agreed to by the Administrative Agents). Each such notice shall specify (i) the date on which the Borrowers propose that the increased or new Commitments shall be effective
(each, an "Increase Effective Date") and the time period within which each Lender is requested to respond, which in each case shall be a date not less
than ten (10) Business Days after the date on which such notice is delivered to the Administrative Agents and the Lenders. The Administrative Agents shall promptly circulate such notice to each
of the Lenders and each Lender in its sole and absolute discretion may notify Administrative Agents within such time period whether or not it agrees to increase its Commitment and, if so, whether by
an amount equal to, greater than, or less than its Pro Rata Percentage of such requested increase. Any Lender not responding within such time period shall be deemed to have declined to increase its
Commitment. Administrative Agents shall notify Borrowers and each Lender of the Lenders' responses to each request made hereunder. If the existing Lenders do not agree to the full amount of a
requested increase, Borrowers may then invite a Lender or any Lenders to increase their Commitments or invite additional financial institutions (reasonably satisfactory to Administrative Agents, the
Arranger and solely to the extent otherwise permitted by Section 11.04) to become Lenders pursuant to an Increase Joinder (as defined below). 

        (b)    Conditions.    The increased or new Commitments shall become effective, as of such Increase Effective Date;  provided that:

        (i)    each
of the conditions set forth in Section 4.02 shall be satisfied; 

        (ii)   no
Default shall have occurred and be continuing or would result from the borrowings to be made on the Increase Effective Date; 

        (iii)  if
on the Increase Effective Date (prior to giving effect to the borrowings or the increase in commitments to be made on the Increase Effective Date) the Excess
Availability is less than $75 million then, after giving pro forma effect to the borrowings to be made on the Increase Effective Date and to any change in Consolidated Cash Flow and any
increase in Indebtedness resulting from the
consummation of any Permitted Acquisition concurrently with such borrowings as of the date of the most recent financial statements delivered pursuant to  Section 5.01(a) or Section 5.01(b), Borrowers shall be in compliance with each of the
covenants set forth in Section 6.10; 

        (iv)  Borrowers
shall make any payments required pursuant to Section 2.13 in connection with any adjustment of
Revolving Loans pursuant to Section 2.19(d); and 

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        (v)   Borrowers
shall deliver or cause to be delivered any legal opinions or other documents reasonably requested by the applicable Administrative Agent in connection with any
such transaction. 

        (c)    Terms of New Loans and Commitments.    The terms and provisions of the Revolving Loans made pursuant to the new
Commitments shall be identical to the Revolving Loans. The increased or new Commitments shall be effected by a joinder agreement (the "Increase
Joinder") executed by the Borrowers, the Administrative Agents and each Lender making such increased or new Commitment, in form and substance satisfactory to each of them. The
Increase Joinder may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the opinion of the
Administrative Agents, to effect the provisions of this Section 2.19. 

        (d)    Adjustment of Revolving Loans.    Each of the Revolving Lenders (other than Canadian Revolving Lenders) having
a Revolving Commitment prior to such Increase Effective Date (the "Pre-Increase Revolving Lenders") shall assign to any Revolving Lender
which is acquiring a new or additional Revolving Commitment on the Increase Effective Date (the "Post-Increase Revolving Lenders"), and such
Post-Increase Revolving Lenders shall purchase from each Pre-Increase Revolving Lender, at the principal amount thereof, such interests in the Revolving Loans and participation
interests in LC Exposure and Swingline Loans outstanding on such Increase Effective Date as shall be necessary in order that, after giving effect to all such assignments and purchases, such Revolving
Loans and participation interests in LC Exposure and Swingline Loans will be held by Pre-Increase Revolving Lenders and Post-Increase Revolving Lenders ratably in accordance
with their Revolving Commitments after giving effect to such increased Revolving Commitments. 

        (e)    Adjustment of Canadian Revolving Loans.    Each of the Canadian Revolving Lenders having a Canadian Revolving
Commitment prior to such Increase Effective Date (the "Canadian Pre-Increase Revolving Lenders") shall assign to any Revolving Lender which
is acquiring a new or additional Canadian Revolving Commitment on the Increase Effective Date (the "Canadian Post-Increase Revolving
Lenders"), and such Canadian Post-Increase Revolving Lenders shall purchase from each Canadian Pre-Increase Revolving Lender, at the principal amount
thereof, such interests in the
Canadian Revolving Loans outstanding on such Increase Effective Date as shall be necessary in order that, after giving effect to all such assignments and purchases, such Revolving Loans will be held
by Canadian Pre-Increase Revolving Lenders and Canadian Post-Increase Revolving Lenders ratably in accordance with their Canadian Revolving Commitments after giving effect to
such increased Canadian Revolving Commitments. 

        (f)    Equal and Ratable Benefit.    The Loans and Commitments established pursuant to this paragraph shall constitute
Loans and Commitments under, and shall be entitled to all the benefits afforded by, this Agreement and the other Loan Documents, and shall, without limiting the foregoing, benefit equally and ratably
from the Guarantees and security interests created by the Security Documents, except that the new Loans may be subordinated in right of payment or the Liens securing the new Loans may be subordinated,
in each case, as set forth in the Increase Joinder. The Loan Parties shall take any actions reasonably required by the Administrative Agents to ensure and/or demonstrate that the Lien and security
interests granted by the Security Documents continue to be perfected under the UCC or the PPSA, as applicable, or otherwise after giving effect to the establishment of any such new Commitments. 

        SECTION 2.20.    Determination of Borrowing Base.    

        (a)    Eligible Accounts.    On any date of determination of the Borrowing Base, the term
"Eligible Accounts" as used herein shall comprise all of the Credit Card Receivables of US Borrowers and any of the US Borrowing Base Guarantors as
arise in the ordinary course of business, which have been earned by performance, that are not excluded as ineligible by virtue of 

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one
or more of the criteria set forth below and are reflected in the most recent Borrowing Base Certificate delivered by the Borrowers to the Collateral Agents and the Administrative Agents. None of
the following shall be deemed to be Eligible Accounts: 

        (i)    Credit
Card Receivables due from major credit card processors that have been outstanding for more than five (5) Business Days from the date of sale, or for such
longer period(s) as may be approved by the applicable Collateral Agents; 

        (ii)   Credit
Card Receivables due from major credit card processors with respect to which US Borrowers or any of the US Borrowing Base Guarantors do not have good, valid and
marketable title thereto, free and clear of any Lien (other than Liens granted to the applicable Administrative Agent for its own benefit and the benefit of the other Secured Parties pursuant to the
Security Documents, those Liens specified in Section 6.02 (a), (e) and (i) and Permitted Liens having priority by operation of
applicable law over the Lien of the Collateral Agents); 

        (iii)  Credit
Card Receivables due from major credit card processors that are not subject to a first priority (except as provided in clause (ii), above) security
interest in favor of the Collateral Agents, as applicable, for its own benefit and the benefit of the other Secured Parties; 

        (iv)  Credit
Card Receivables due from major credit card processors which are disputed, or with respect to which a claim, counterclaim, offset or chargeback has been
asserted, by the related credit card processor (but only to the extent of such dispute, counterclaim, offset or chargeback) (it being the intent that chargebacks in the ordinary course by the credit
card processors as contemplated by the applicable Control Agreement shall not be deemed violative of this clause); 

        (v)   Except
as otherwise approved by the US Administrative Agent and applicable Collateral Agents, Credit Card Receivables due from major credit card processors as to which
the credit card processor has the right under certain circumstances to require the US Borrowers or any of the US Borrowing Base Guarantors to repurchase such Accounts from such credit card processor; 

        (vi)  Except
as otherwise approved by the US Administrative Agent and applicable Collateral Agents, Credit Card Receivables due from major credit card processors as to which
the US Administrative Agent and the applicable Collateral Agents have not received an acceptable Control Agreement; 

        (vii) Accounts
due from major credit card processors (other than Visa, Mastercard, American Express, Diners Club and Discover) which the applicable Collateral Agents
determine in their commercially reasonable discretion, acting in good faith, to be unlikely to be collected; or 

        (viii) Except
as otherwise approved by the applicable Collateral Agents in their sole discretion, Credit Card Receivables of US Borrowers and any of the US Borrowing Base
Guarantors arising from Private Label Credit Cards. 

Notwithstanding
the above, the applicable Collateral Agents and the US Administrative Agent reserve the right, at any time and from time to time after the Closing Date, to adjust the criteria set
forth above, to establish new criteria and to adjust the applicable advance rate with respect to Eligible Accounts, in their Permitted Discretion, subject to the approval of the Supermajority Lenders
in the case of adjustments, new criteria or changes in the applicable advance rates which have the effect of making more credit available. The Collateral Agents shall have the right to establish,
modify or eliminate Reserves against Eligible Accounts (including, without limitation, for estimates, chargeback or 

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other
accrued liabilities or offsets by credit card processors and amounts to adjust for material claims, offsets, defenses or counterclaims or other material disputes described in  Section 9.01) from
time to time in their Permitted Discretion. 

        (b)    Eligible Inventory.    For purposes of this Agreement, Eligible Inventory shall exclude any Inventory to which
any of the exclusionary criteria set forth below applies. The Collateral Agents shall have the right to establish, modify or eliminate Reserves against Eligible Inventory from time to time in their
Permitted Discretion. In addition, the Collateral Agents and the Administrative Agents reserve the right, upon two (2) Business Day's prior written notice to the Administrative Borrower, at any
time and from time to time after the Closing Date, to adjust any of the criteria set forth below, to establish new criteria and to adjust the applicable advance rate with respect to Eligible
Inventory, in their Permitted Discretion, subject to the approval of the Supermajority Lenders in the case of adjustments, new criteria, changes in the applicable advance rate or the elimination of
Reserves which have the effect of making more credit available. Eligible Inventory shall not include any Inventory of US Borrowers or any US Borrowing Base Guarantor that: 

        (i)    the
applicable Collateral Agents, on behalf of Secured Parties, do not have a first priority and exclusive perfected Lien on such Inventory; 

        (ii)   (1)
is stored at a leased or rented location where the aggregate value of Inventory exceeds $250,000 unless the applicable Collateral Agents have given their prior
consent thereto or unless either (x) a Landlord Access Agreement in respect of such location has been delivered to the applicable Collateral Agents, or (y) Reserves reasonably
satisfactory to the applicable Collateral Agents have been established with respect thereto or (2) is stored with a bailee or warehouseman where the aggregate value of Inventory exceeds
$250,000 unless either (x) an acknowledged bailee waiver letter which is in form and substance satisfactory to the applicable Collateral Agents and the US Administrative Agent has been received
by the applicable Collateral Agents or (y) Reserves reasonably satisfactory to the applicable Collateral Agents have been established with respect thereto, or (3) is located at an owned
location subject to a mortgage in favor of a lender other than any of the Collateral Agents and the Senior Note Collateral Agent where the aggregate value of Inventory exceeds $250,000 unless either
(x) mortgagee waiver which is in form and substance satisfactory to the applicable Collateral Agents and the US Administrative Agent has been delivered to the applicable Collateral Agents or
(y) Reserves reasonably satisfactory to the applicable Collateral Agents have been established with respect thereto; 

        (iii)  (1)
is placed on consignment by a third party consignor with any US Borrower or US Borrowing Base Guarantor as consignee or (2) is placed on consignment by any
US Borrower or US Borrowing Base Guarantor as consignor with any third party as consignee, unless a valid consignment agreement which is reasonably satisfactory to applicable Collateral Agents is in
place with respect to such Inventory; 

        (iv)  is
covered by a negotiable document of title, unless such document has been delivered to the applicable Collateral Agents with all necessary endorsements, free and
clear of all Liens except those in favor of the Collateral Agents and the Lenders and landlords, carriers, bailees and warehousemen if  clause (ii) above has been complied with; 

        (v)   is
to be returned to suppliers; 

        (vi)  is
obsolete, unsalable, shopworn, seconds, damaged or unfit for sale; 

        (vii) consists
of display items, samples or packing or shipping materials, manufacturing supplies, work-in-process Inventory, replacement parts or
spare parts; 

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        (viii) is
not finished goods held for sale in the ordinary course of US Borrower's or any US Borrowing Base Guarantor's, as applicable, business; 

        (ix)  breaches
any of the representations or warranties pertaining to Inventory set forth in the Loan Documents; 

        (x)   consists
of Hazardous Material or goods that, in either case, can be transported or sold only with licenses that are not readily available; 

        (xi)  is
not covered by casualty insurance maintained as required by Section 5.04; 

        (xii) supplies
used or consumed in US Borrower's business; 

        (xiii) bill
and hold goods; 

        (xiv) unserviceable
or slow moving Inventory; 

        (xv) inventory
returned by retail customers that is not held for resale; 

        (xvi) inventory
subject to deposit made by retail customers for sale of Inventory that have not been delivered to the extent of such deposits; or 

        (xvii) is
subject to any licensing arrangement the effect of which would be to limit the ability of any Collateral Agent, or any person selling the Inventory on behalf of
such Collateral Agent, to sell such Inventory in enforcement of such Collateral Agent's Liens, without further consent or payment to the licensor or other person. 

        SECTION 2.21.    Determination of Canadian Borrowing Base.    

        (a)    Eligible Canadian Accounts.    On any date of determination of the Canadian Borrowing Base the term
"Eligible Canadian Accounts" as used herein shall comprise all of the Credit Card Receivables of Canadian Borrower and any of Canadian Borrowing Base
Guarantors as arise in the ordinary course of business, which have been earned by performance, that are not excluded as ineligible by virtue of one or more of the criteria set forth below and are
reflected in the most recent Borrowing Base Certificate delivered by the Borrowers to the Collateral Agents and the Administrative Agents. None of the following shall be deemed to be Eligible
Accounts: 

        (i)    Credit
Card Receivables due from major credit card processors that have been outstanding for more than five (5) Business Days from the date of sale or, in the
case of Accounts due from American Express to the Canadian Borrower or any of the Canadian Borrowing Base Guarantors, that have been outstanding for more than ten (10) Business Days from the
date of sale, or for such longer period(s) as may be approved by the applicable Collateral Agents; 

        (ii)   Credit
Card Receivables due from major credit card processors with respect to which Canadian Borrower or any of the Canadian Borrowing Base Guarantors do not have good,
valid and marketable title thereto, free and clear of any Lien (other than Liens granted to the applicable Administrative Agent for its own benefit and the benefit of the other Secured Parties
pursuant to the Security Documents, those Liens specified in Section 6.02 (a), (e) and (i) and Permitted Liens having priority by operation of
applicable law over the Lien of the applicable Collateral Agents); 

        (iii)  Credit
Card Receivables due from major credit card processors that are not subject to a first priority (except as provided in clause (ii), above) security
interest in favor of the Collateral Agents, as applicable, for its own benefit and the benefit of the other Secured Parties; 

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        (iv)  Credit
Card Receivables due from major credit card processors which are disputed, or with respect to which a claim, counterclaim, offset or chargeback has been
asserted, by the related credit card processor (but only to the extent of such dispute, counterclaim, offset or chargeback) (it being the intent that chargebacks in the ordinary course by the credit
card processors shall not be deemed violative of this clause); 

        (v)   Except
as otherwise approved by the Canadian Administrative Agent and applicable Collateral Agents, Credit Card Receivables due from major credit card processors as to
which the credit card processor has the right under certain circumstances to require the Canadian Borrower or any of the Canadian Borrowing Base Guarantors to repurchase such Accounts from such credit
card processor; 

        (vi)  Except
as otherwise approved by the Canadian Administrative Agent and applicable Collateral Agents, Credit Card Receivables due from major credit card processors as to
which the Canadian Administrative Agent and the applicable Collateral Agents have not received an acceptable Control Agreement; 

        (vii) Accounts
due from major credit card processors (other than Visa, Mastercard, American Express, Diners Club and Discover) which the applicable Collateral Agents
determine in their commercially reasonable discretion, acting in good faith, to be unlikely to be collected.; or 

        (viii) Except
as otherwise approved by the applicable Collateral Agents in their sole discretion, Credit Card Receivables of Canadian Borrower and any of the Canadian
Borrowing Base Guarantors arising from Private Label Credit Cards. 

Notwithstanding
the above, the applicable Collateral Agents and the Canadian Administrative Agent reserve the right, at any time and from time to time after the Closing Date, to adjust the criteria
set forth above, to establish new criteria and to adjust the applicable advance rate with respect to Eligible Canadian Accounts, in their Permitted Discretion, subject to the approval of the
Supermajority Lenders in the case of adjustments, new criteria or changes in the applicable advance rates which have the effect of making more credit available. The Collateral Agents shall have the
right to establish, modify or eliminate Reserves against Eligible Canadian Accounts (including, without limitation, for estimates,
chargeback or other accrued liabilities or offsets by credit card processors and amounts to adjust for material claims, offsets, defenses or counterclaims or other material disputes described in  Section 9.01) from time to time in their Permitted Discretion. 

        (b)    Eligible Inventory.    For purposes of this Agreement, Eligible Canadian Inventory shall exclude any Canadian
Inventory to which any of the exclusionary criteria set forth below applies. The applicable Collateral Agents shall have the right to establish, modify or eliminate Reserves against Eligible Canadian
Inventory from time to time in their Permitted Discretion. In addition, the applicable Collateral Agents and the Canadian Administrative Agent reserve the right, upon two (2) Business Day's
prior written notice to the Administrative Borrower, at any time and from time to time after the Closing Date, to adjust any of the criteria set forth below, to establish new criteria and to adjust
the applicable advance rate with respect to Eligible Canadian Inventory, in their Permitted Discretion, subject to the approval of the Supermajority Lenders in the case of adjustments, new criteria,
changes in the applicable advance rate or the elimination of Reserves which have the effect of making more credit available. Eligible Canadian Inventory shall not include any Canadian Inventory of
Canadian Borrower or any of the Canadian Borrowing Base Guarantors that: 

        (i)    the
applicable Collateral Agents, on behalf of Secured Parties, do not have a first priority and exclusive perfected Lien on such Canadian Inventory; 

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        (ii)   (1)
is stored at a leased or rental location where the aggregate value of Canadian Inventory exceeds $250,000 unless the applicable Collateral Agents have given their
prior consent thereto or unless either (x) a Landlord Access Agreement in respect of such location has been delivered to the applicable Collateral Agents, or (y) Reserves reasonably
satisfactory to the applicable Collateral Agents have been established with respect thereto or (2) is stored with a bailee or warehouseman where the aggregate value of Canadian Inventory
exceeds $250,000 unless either (x) an acknowledged bailee waiver letter which is in form and substance satisfactory to the applicable Collateral Agents and the Canadian Administrative Agent has
been received by the applicable Collateral Agents or (y) Reserves reasonably satisfactory to the applicable Collateral Agents have been established with respect thereto, or (3) is
located at an owned location subject to a mortgage in favor of a lender other than the Collateral Agents and the Senior Note Collateral Agent where the aggregate value of such Canadian Inventory
exceeds $250,000 unless either (x) a mortgagee waiver which is in form and substance satisfactory to the applicable Collateral Agents and the Canadian Administrative Agent has been delivered to
the applicable Collateral Agents or (y) Reserves reasonably satisfactory to the applicable Collateral Agents have been established with respect thereto; 

        (iii)  (1)
is placed on consignment by a third party consignor with any Canadian Borrower or any Canadian Borrowing Base Guarantor as consignee or (2) is placed on
consignment by any Canadian Borrower or Canadian Borrowing Base Guarantor as consignor with any third party as consignee, unless a valid consignment agreement which is reasonably satisfactory to
applicable Collateral Agent is in place with respect to such Canadian Inventory; 

        (iv)  is
covered by a negotiable document of title, unless such document has been delivered to one of the applicable Collateral Agents with all necessary endorsements, free
and clear of all Liens except those in favor of the Collateral Agents and the Lenders and landlords, carriers, bailees and warehousemen if  clause (ii) above has been complied with; 

        (v)   is
to be returned to suppliers; 

        (vi)  is
obsolete, unsalable, shopworn, seconds, defective, damaged or unfit for sale; 

        (vii) consists
of display items, samples or packing or shipping materials, manufacturing supplies, work-in-process Canadian Inventory, replacement or
spare parts; 

        (viii) is
not finished goods held for sale in the ordinary course of Canadian Borrower's or any of the Canadian Borrowing Base Guarantor's, as applicable, business; 

        (ix)  breaches
any of the representations or warranties pertaining to Canadian Inventory set forth in the Loan Documents; 

        (x)   consists
of Hazardous Material or goods that, in either case, can be transported or sold only with licenses that are not readily available; 

        (xi)  is
not covered by casualty insurance maintained as required by Section 5.04; 

        (xii) supplies
used or consumed in Canadian Borrower's business; 

        (xiii) bill
and hold goods; 

        (xiv) unserviceable
or slow moving Canadian Inventory; 

        (xv) inventory
returned by retail customers that is not held for resale; 

        (xvi) inventory
subject to deposit made by retail customers for sale of Inventory that have not been delivered to the extent of such deposits; or 

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        (xvii) is
subject to any licensing arrangement the effect of which would be to limit the ability of any Collateral Agent, or any person selling the Canadian Inventory on
behalf of such Collateral Agent, to sell such Canadian Inventory in enforcement of such Collateral Agent's Liens, without further consent or payment to the licensor or other person. 

        SECTION 2.22.    Collection Allocation Mechanism.    

        (a)   Notwithstanding
any other provision of this Agreement or any Loan Document, on the CAM Exchange Date, (i) all Commitments shall automatically and without further
act be terminated as provided in Section 8 and (ii) the Lenders shall automatically and without further act be deemed to have exchanged
interests in the Loans such that in lieu of the interest of each Lender in each Loan in which it shall participate as of such date, such Lender shall hold an interest in every one of the Loans,
whether or not such Lender shall previously have participated therein, equal to such Lender's CAM Percentage thereof; provided that such CAM Exchange
will not affect the aggregate amount of the obligations of the Loan Parties to the Lenders under the Loan Documents. Each Lender and each Loan Party hereby consents and agrees to the CAM Exchange, and
each Lender agrees that the CAM Exchange shall be binding upon its successors and assigns and any person that acquires a participation in its interests in any Loan. Each Loan Party agrees from time to
time to execute and deliver to the Agents all promissory notes and other instruments and documents as the Agents shall reasonably request to evidence and confirm the respective interests of the
Lenders after giving effect to the CAM Exchange, and each Lender agrees to surrender any promissory notes originally received by it in connection with its Loans hereunder to the Agents against
delivery of new promissory notes evidencing its interests in the Loans; provided, however, that the
failure of any Loan Party to execute or deliver or of any Lender to accept any such promissory note, instrument or document shall not affect the validity or effectiveness of the CAM Exchange. 

        (b)   As
a result of the CAM Exchange, upon and after the CAM Exchange Date, each payment received by the Administrative Agents pursuant to any Loan Document in respect of the
Specified Obligations, and each distribution made by the Administrative Agents pursuant to any Loan Document in respect of the Specified Obligations, shall be distributed to the Lenders pro rata in
accordance with their respective CAM Percentages. Any direct payment received by a Lender upon or after the CAM Exchange Date, including by way of setoff, in respect of a Specified Obligation, shall
be paid over to the US Administrative Agent or the Canadian Administrative Agent, as applicable, for distribution to the Lenders in accordance herewith. 

        (c)   In
the event that on the CAM Exchange Date any Letter of Credit shall be outstanding and undrawn in whole or in part, or any amount drawn under any Letter of Credit
shall remain unpaid, each Lender shall, before giving effect to the CAM Exchange, promptly pay over to the Administrative Agents, in immediately available funds and in the currency that such Letter of
Credit is denominated, an amount (determined after deducting any cash collateral held by the Collateral Agents on behalf of the Loan Parties with respect to such Letter of Credit) equal to such
Lender's Pro Rata Percentage (as notified to such Lender by the Administrative Agents), of such Letter of Credit's undrawn face amount or (to the extent it has not already done so) any unpaid LC
Disbursement under Section 2.18(e)(ii), together with interest thereon from the CAM Exchange Date to the date on which such amount shall be paid
to the applicable Administrative Agent, at the rate that would be applicable at the time to a Revolving Loan that is an ABR Loan accruing interest at the ABR Rate in a principal amount equal to such
amount. The Administrative Agents shall establish a separate account or accounts for each Lender (each, an "L/C Reserve Account") for the amounts
received with respect to each such Letter of Credit pursuant to the preceding sentence. The applicable Administrative Agent shall deposit in each Lender's L/C Reserve Account such Lender's CAM
Percentage of the amounts received from the Lenders as provided above. The Administrative Agents shall have sole dominion and control over each L/C 

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Reserve
Account, and the amounts deposited in each L/C Reserve Account shall be held in such L/C Reserve Account until withdrawn as provided in paragraph (d), (e), (f) or
(g) below. The applicable Administrative Agent shall maintain records enabling it to determine the amounts paid over to it and deposited in the L/C Reserve Accounts in respect of each Letter of
Credit and the amounts on deposit in respect of each Letter of Credit attributable to each Lender's CAM Percentage. The amounts held in each Lender's L/C Reserve Account shall be held as a reserve
against the LC Obligations due and owing, shall be the property of such Lender, shall not constitute Loans to or give rise to any claim of or against any Loan Party and shall not give rise to any
obligation on the part of any Borrower to pay interest to such Lender, it being agreed that the reimbursement obligations in respect of Letters of Credit shall arise only at such times as drawings are
made thereunder, as provided in Section 2.18. 

        (d)   In
the event that after the CAM Exchange Date any drawing shall be made in respect of a Letter of Credit, the applicable Administrative Agent shall, at the request of
the Issuing Bank in respect of such Letter of Credit, withdraw from the L/C Reserve Account of each Lender any amounts, up to the amount of such Lender's CAM Percentage of such drawing, deposited in
respect of such Letter of Credit and remaining on deposit and deliver such amounts to such Issuing Bank in satisfaction of the reimbursement obligations of the Lenders under  Section 2.18 (but not
of any Borrower under Section 2.18). In the event any Lender shall
default on its obligation to pay over any amount to the Administrative Agents in respect of any Letter of Credit as provided in this  Section 2.22, the Issuing Bank in respect thereof shall, in the
event of a drawing thereunder, have a claim against such Lender to the same
extent as if such Lender had defaulted on its obligations under Section 2.18, but shall have no claim against any other Lender in respect of such
defaulted amount, notwithstanding the exchange of interests in the reimbursement obligations pursuant to Section 2.22(a). Each other Lender shall
have a claim against such defaulting Lender for any damages sustained by it as a result of such default, including, in the event such Letter of Credit shall expire undrawn, its CAM Percentage of the
defaulted amount. 

        (e)   In
the event that after the CAM Exchange Date any Letter of Credit shall expire undrawn, the applicable Administrative Agent shall withdraw from the L/C Reserve Account
of each Lender the amount remaining on deposit therein in respect of such Letter of Credit and distribute such amount to such Lender. 

        (f)    With
the prior written approval of the US Administrative Agent or the Canadian Administrative Agent, as applicable, and the Issuing Bank in respect of such Letter of
Credit, any Lender may withdraw the amount held in its L/C Reserve Account in respect of the undrawn amount of any Letter of Credit. Any Lender making such a withdrawal shall be unconditionally
obligated, in the event there shall subsequently be a drawing under such Letter of Credit, to pay over to the applicable Administrative Agent for the account of such Issuing Bank on demand, its CAM
Percentage of such drawing. 

        (g)   Pending
the withdrawal by any Lender of any amounts from its L/C Reserve Account as contemplated by the above paragraphs, the applicable Administrative Agent will, at
the direction of such Lender and subject to such rules as the applicable Administrative Agent may prescribe for the avoidance of inconvenience, invest such amounts in Cash Equivalents. Each Lender
that has not withdrawn the amounts in its L/C Reserve Account as provided in Section 2.22(f) above shall have the right, at intervals reasonably
specified by the applicable Administrative Agent to withdraw the earnings on investments so made by the Administrative Agents with amounts in its L/C Reserve Account and to retain such earnings for
its own account. 

        (h)   Notwithstanding
any other provision of this Agreement, if, as a direct result of the implementation of the CAM Exchange, any Borrower is required to withhold Taxes from
amounts payable to any Agent, any Lender or any Participant hereunder, the amounts so payable to such 

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Agent,
such Lender or such Participant shall be increased to the extent necessary to yield to such Agent, such Lender or such Participant (after payment of all Taxes) interest or any such other
amounts payable hereunder at the rates or in the amounts specified in this Agreement; provided, however,
that such Borrower shall not be required to increase any such amounts payable to such Lender or Participant under this Section 2.22 (but, rather,
shall be required to increase any such amounts payable to such Lender or Participant to the extent required by Section 2.15) if such Lender or
Participant was prior to or on the CAM Exchange Date already a Lender or Participant with respect to such Borrower. If a Lender that is not incorporated in the United States, in its good faith
judgment, is eligible for an exemption from, or reduced rate of, U.S. federal withholding tax on payments by the U.S. Borrower under this Agreement, the U.S. Borrowers shall not be required to
increase any such amounts payable to such Lender if such Lender fails to comply with the requirements of Section 2.15(e). 

 
 

ARTICLE III.    
    
    REPRESENTATIONS AND WARRANTIES    
    

        Each Loan Party represents and warrants to the Administrative Agents, the Collateral Agents, the Issuing Bank and each of the Lenders (with references to the
Companies being references thereto after giving effect to the Transactions unless otherwise expressly stated) that: 

        SECTION 3.01.    Organization; Powers.    Each Company (a) is duly organized and
validly existing under the laws of the jurisdiction of its organization, (b) has all requisite power and authority to carry on its business as now conducted and to own and lease its property
and (c) is qualified and in good standing (to the extent such concept is applicable in the applicable jurisdiction) to do business in every jurisdiction where such qualification is required,
except in such jurisdictions where the failure to so qualify or be in good standing, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. There is
no existing default under any Organizational Document of any Company or any event which, with the giving of notice or passage of time or both, would constitute a default by any party thereunder. 

        SECTION 3.02.    Authorization; Enforceability.    The Transactions to be entered into by each
Loan Party are within such Loan Party's powers and have been duly authorized by all necessary action on the part of such Loan Party. This Agreement has been duly executed and delivered by each Loan
Party and constitutes, and each other Loan Document to which any Loan Party is to be a party, when executed and delivered by such Loan Party, will constitute, a legal, valid and binding obligation of
such Loan Party, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to
general principles of equity, regardless of whether considered in a proceeding in equity or at law. 

        SECTION 3.03.    No Conflicts.    Except as set forth on  Schedule 3.03, the Transactions
(a) do not require any consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except (i) such as have been obtained or made and are in full force and effect, (ii) filings necessary to perfect Liens created by the Loan Documents and
(iii) consents, approvals, registrations, filings, permits or actions the failure to obtain or perform which could not reasonably be expected to result in a Material Adverse Effect,
(b) will not violate the Organizational Documents of any Company, (c) will not violate any Requirement of Law, except for violations, defaults or the creation of such rights that could
not reasonably be expected to result in a Material Adverse Effect, (d) will not violate or result in a default or require any consent or approval under any indenture, agreement or other
instrument binding upon any Company or its property, or give rise to a right thereunder to require any payment to be made by any Company, except for violations, defaults or the creation of such rights
that could not reasonably be expected to result in a Material Adverse Effect, 

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and
(e) will not result in the creation or imposition of any Lien on any property of any Company, except Liens created by the Loan Documents and Permitted Liens. 

        SECTION 3.04.    Financial Statements; Projections.    

        (a)    Historical Financial Statements.    The Borrowers have heretofore delivered to the Lenders (i) the
consolidated balance sheets and related statements of income, stockholders' equity and cash flows of the Acquired Business as of and for the fiscal years ended December 31, 2003, and
December 31, 2004, audited by and accompanied by the unqualified opinion of KPMG LLP, independent public accountants (the "Accountants") and
(ii) the unaudited consolidated balance sheets and related statements of income, stockholders' equity and cash flows of the Acquired Business as of and for the fiscal quarter ended
September 30, 2005 (with respect to which the Accountants have performed SAS 100 reviews), in each case, certified by the chief financial officer of US Borrowers. Such financial statements and
all financial statements delivered pursuant to Section 5.01(a), Section 5.01(b) and  Section 5.01(c) have been prepared in accordance with GAAP and present fairly and accurately the financial condition and results of operations
and cash flows of the Acquired Business as of the dates and for the periods to which they relate, subject in the case of unaudited statements, to year-end audit adjustments. 

        (b)    No Liabilities.    Except as set forth in the financial statements referred to in  Section 3.04(a) (including the notes
thereto), there are no liabilities of any Company of any kind, whether accrued, contingent, absolute,
determined, determinable or otherwise, which could reasonably be expected to result in a Material Adverse Effect, and there is no existing condition, situation or set of circumstances which could
reasonably be expected to result in such a liability, other than liabilities under the Loan Documents and the Senior Note Documents. Since December 31, 2005, there has been no event, change,
circumstance or occurrence that, individually or in the aggregate, has had or could reasonably be expected to result in a Material Adverse Effect. 

        (c)    Forecasts.    The forecasts of financial performance of Holdings and its Subsidiaries furnished to the Lenders
have been prepared in good faith by the Borrowers and based on assumptions believed by the Borrowers to be reasonable. 

        SECTION 3.05.    Properties.    

        (a)    Generally.    Each Company has good title to, or valid leasehold interests in, all its property material to its
business, free and clear of all Liens except for, Permitted Liens and minor irregularities or deficiencies in title that, individually or in the aggregate, do not interfere with its ability to conduct
its business as currently conducted or to utilize such property for its intended purpose. The property of the Companies, taken as a whole, (i) is in good operating order, condition and repair
(ordinary wear and tear excepted), except to the extent that the failure to be in such condition could not reasonably be expected to result in a Material Adverse Effect and (ii) constitutes all
the property which is required for the business and operations of the Companies as presently conducted. 

        (b)    Real Property.    Schedules 8(a) and 8(b) to the Perfection
Certificate dated the Closing Date contain a true and complete list of each interest in Real Property (i) owned by any Company as of the date hereof and describes the type of interest therein
held by such Company and whether such owned Real Property is leased and if leased whether the underlying Lease contains any option to purchase all or any portion of such Real Property or any interest
therein or contains any right of first refusal relating to any sale of such Real Property or any portion thereof or interest therein and (ii) leased, subleased or otherwise occupied or utilized
by any Company, as lessee, sublessee, franchisee or licensee, as of the date hereof and describes the type of interest therein held by such Company. No such Lease requires the consent of the landlord
or tenant thereunder, 

85

 

or
other party thereto, to the Transactions, except (i) for such consents which have been obtained or (ii) to the extent that failure to obtain such consent could not reasonably be
expected to result in a Material Adverse Effect. 

        (c)    No Casualty Event.    No Company has received any written notice of, nor has any knowledge of, the occurrence
or pendency of any Casualty Event affecting all or any material portion of its property. No Mortgage encumbers improved Real Property that is located in an area that has been identified by the
Secretary of Housing and Urban Development as an area having special flood hazards within the meaning of the National Flood Insurance Act of 1968 unless flood insurance available under such Act has
been obtained in accordance with Section 5.04 or the applicable Collateral Agent has waived such requirement in the Mortgage. 

        (d)    Collateral.    Each Company owns or has rights to use all of the Collateral and all rights with respect to any
of the foregoing used in, necessary for or material to each Company's business as currently conducted. The use by each Company of such Collateral and all such rights with respect to the
foregoing do not infringe on the rights of any person other than such infringement which could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. No
claim has been made and remains outstanding that any Company's use of any Collateral does or may violate the rights of any third party that could, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect. 

        SECTION 3.06.    Intellectual Property.    

        (a)    Ownership/No Claims.    Each Loan Party owns, or is licensed to use, all patents, patent applications,
trademarks, industrial designs, trade names, servicemarks, copyrights, technology, trade secrets, proprietary information, domain names, know-how and processes necessary for the conduct of
its business as currently conducted (the "Intellectual Property"), except for those the failure to own or license which, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect. No claim has been asserted and is pending by any person challenging or questioning the use of any such Intellectual
Property or the validity or effectiveness of any such Intellectual Property in any material respect, nor does any Loan Party know of any valid basis for any such claim. The use of such Intellectual
Property by each Loan Party does not infringe the rights of any person, except for such claims and infringements that, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect. 

        (b)    Registrations.    Except pursuant to licenses and other user agreements entered into by each Loan Party in the
ordinary course of business that are listed in Schedule 12(a) or 12(b) to the Perfection
Certificate, on and as of the date hereof (i) each Loan Party owns and possesses the right to use, and has done nothing to authorize or enable any other person to use, any copyright, patent,
industrial designs or trademark (as such terms are defined in the Security Agreement) listed in Schedule 12(a) or  12(b) to the Perfection Certificate
and (ii) all registrations listed in Schedule 12(a) or  12(b) to the Perfection Certificate are valid and in full force and effect. 

        (c)    No Violations or Proceedings.    To each Loan Party's knowledge, on and as of the date hereof, there is no
material violation by others of any right of such Loan Party with respect to any copyright, patent, industrial designs or trademark listed in  Schedule 12(a) or 12(b)
 to the Perfection Certificate, pledged by it under the name of such Loan
Party. 

        SECTION 3.07.    Equity Interests and Subsidiaries.    

        (a)    Equity Interests.    Schedules 1(a) and 10(a) to the Perfection
Certificate dated the Closing Date set forth a list of (i) all the Subsidiaries of Holdings and their jurisdictions of organization as of the Closing Date and (ii) the number of each
class of its Equity Interests authorized, and the number outstanding, on the Closing Date and the number of shares covered by all outstanding options, warrants, rights of conversion or purchase and
similar rights at the Closing Date. All 

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Equity
Interests of each Company are duly and validly issued and are fully paid and non-assessable, and, other than the Equity Interests of US Borrowers, are owned by LNT Center, directly
or indirectly through Wholly Owned Subsidiaries. All Equity Interests of LNT are owned directly by Holdings. Each Loan Party is the record and beneficial owner of, and has good and marketable title
to, the Equity Interests pledged by it under the Security Agreement, free of any and all Liens, rights or claims of other persons, except the security interest created by the Security Agreement, and
there are no outstanding warrants, options or other rights to purchase, or shareholder, voting trust or similar agreements outstanding with respect to, or property that is convertible into, or that
requires the issuance or sale of, any such Equity Interests. 

        (b)    No Consent of Third Parties Required.    No consent of any person including any other general or limited
partner, any other member of a limited liability company, any other shareholder or any other trust beneficiary is necessary or reasonably desirable (from the perspective of a secured party) in
connection with the creation, perfection or First Priority status of the security interest of the applicable Collateral Agent in any Equity Interests pledged to the such Collateral Agent for the
benefit of the Secured Parties under the Security Agreements or the exercise by such Collateral Agent of the voting or other rights provided for in any such Security Agreement or the exercise of
remedies in respect thereof. 

        (c)    Organizational Chart.    An accurate organizational chart, showing the ownership structure of Holdings, the
Borrowers and each Subsidiary on the Closing Date, and after giving effect to the Transactions, is set forth on Schedule 10(a) to the Perfection
Certificate dated the Closing Date. 

        SECTION 3.08.    Litigation; Compliance with Laws.    There are no actions, suits or
proceedings at law or in equity by or before any Governmental Authority now pending or, to the knowledge of any Company, threatened against or affecting any Company or any business, property or rights
of any Company (i) that involve any Loan Document or any of the Transactions or (ii) as to which there is a reasonable possibility of an adverse determination and that, if adversely
determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect. Except for matters covered by  Section 3.18, no Company or any of its property is
in violation of, nor will the continued operation of its property as currently conducted
violate, any Requirements of Law (including any zoning or building ordinance, code or approval or any building permits) or any restrictions of record or agreements affecting any Company's Real
Property or is in default with respect to any Requirement of Law, where such violation or default, individually or in the aggregate, could reasonably be expected to result in a Material Adverse
Effect. 

        SECTION 3.09.    Agreements.    No Company is a party to any agreement or instrument or
subject to any corporate or other constitutional restriction that has resulted or could reasonably be expected to result in a Material Adverse Effect. No Company is in default in any manner under any
provision of any indenture or other agreement or instrument evidencing Indebtedness, or any other agreement or instrument to which it is a party or by which it or any of its property is or may be
bound, where such default could reasonably be expected to result in a Material Adverse Effect, and no condition exists which, with the giving of notice or the lapse of time or both, would constitute
such a default. Schedule 3.09 accurately and completely lists all material agreements (other than leases of Real Property set forth on  Schedule 8(a) or 8(b)
 to the Perfection Certificate dated the Closing Date) to which any Company is a party which are in effect on the date
hereof in connection with the operation of the business conducted thereby and Borrower has delivered to the Administrative Agents complete and correct copies of all such material agreements, including
any amendments, supplements or modifications with respect thereto, and all such agreements are in full force and effect. 

        SECTION 3.10.    Federal Reserve Regulations.    No Company is engaged principally, or as one
of its important activities, in the business of extending credit for the purpose of buying or carrying Margin Stock. No part of the proceeds of any Loan or any Letter of Credit will be used, whether
directly or indirectly, and whether immediately, incidentally or ultimately, for any purpose that entails a violation of, or that is inconsistent with, the provisions of the regulations of the Board,
including Regulation T, U or X. The pledge of the Securities Collateral pursuant to the Security Agreements does not violate such regulations. 

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        SECTION 3.11.    Investment Company Act; Public Utility Holding Company Act.    No
Company is
(a) an "investment company" or a company "controlled" by an "investment company," as defined in, or subject to regulation under, the Investment Company Act of 1940, as amended, or (b) a
"holding company," an "affiliate" of a "holding company" or a "subsidiary company" of a "holding company," as defined in, or subject to regulation under, the Public Utility Holding Company Act of
1935, as amended. 

        SECTION 3.12.    Use of Proceeds.    The Borrowers will use the proceeds of their respective
Revolving Loans and Swingline Loans for working capital and general corporate purposes (including to effect Permitted Acquisitions) on and after the Closing Date (it being understood that the
Revolving Loans shall not exceed $100 million on the Closing Date). 

        SECTION 3.13.    Taxes.    Each Company has (a) timely filed or caused to be timely
filed all federal Tax Returns and all material state, provincial, territorial, local and foreign Tax Returns or materials required to have been filed by it and all such Tax Returns are true and
correct in all material respects and (b) duly and timely paid, collected or remitted or caused to be duly and timely paid, collected or remitted all Taxes (whether or not shown on any Tax
Return) due and payable, collectible or remittable by it and all assessments received by it, except Taxes (i) that are being contested in good faith by appropriate proceedings and for which
such Company has set aside on its books adequate reserves in accordance with GAAP and (ii) which could not, individually or in the aggregate, have a Material Adverse Effect. Each Company has
made adequate provision in accordance with GAAP for all material Taxes not yet due and payable. Each Company is unaware of any proposed or pending tax assessments, deficiencies or audits that could be
reasonably expected to, individually or in the aggregate, result in a Material Adverse Effect. No Company has ever been a party to any understanding or arrangement constituting a "tax shelter" within
the meaning of Section 6111(c), Section 6111(d) or Section 6662(d)(2)(C)(iii) of the Code, or has ever "participated" in a "reportable transaction" within the meaning of
Treasury Regulation Section 1.6011-4, except as, in each case, could not be reasonably expected to, individually or in the aggregate, result in a Material Adverse Effect in respect
of Taxes. 

        SECTION 3.14.    No Material Misstatements.    No information, report, financial statement,
certificate, Borrowing Request, LC Request, exhibit or schedule furnished by or on behalf of any Company to the Administrative Agents or any Lender in connection with the negotiation of any Loan
Document or included therein or delivered pursuant thereto, taken as a whole, or the Confidential Information Memorandum contained or contains any material misstatement of fact or omitted or omits to
state any material fact necessary to make the statements therein, in the light of the circumstances under which they were or are made, not misleading as of the date such information is dated or
certified; provided that to the extent any such information, report, financial statement, exhibit or schedule was based upon or constitutes a forecast
or projection, each Company represents only that it acted in good faith and
utilized reasonable assumptions and due care in the preparation of such information, report, financial statement, exhibit or schedule. 

        SECTION 3.15.    Labor Matters.    As of the date hereof and the Closing Date, there are no
strikes, lockouts or slowdowns against any Company pending or, to the knowledge of any Company, threatened. The hours worked by and payments made to employees of any Company have not been in violation
of the Fair Labor Standards Act of 1938, as amended, or any other applicable federal, state, provincial, territorial, local or foreign law dealing with such matters in any manner which could
reasonably be expected to result in a Material Adverse Effect. All payments due from any Company, or for which any claim may be made against any Company, on account of wages and employee health and
welfare insurance and other benefits, have been paid or accrued as a liability on the books of such Company except where the failure to do so could not reasonably be expected to result in a Material
Adverse Effect. Each Loan Party has withheld all employee withholdings and has made all employer contributions to be withheld and made by it pursuant to applicable law on account of any employee 

88

 

benefit
plans, employment insurance and employee income taxes except where such failure to do so could not reasonably be expected to result in a Material Adverse Effect. The consummation of the
Transactions will not give rise to any right of termination or right of renegotiation on the part of any union under any collective bargaining agreement to which any Company is bound. 

        SECTION 3.16.    Solvency.    Immediately after the consummation of the Transactions to occur
on the Closing Date and immediately following the making of each Loan and after giving effect to the application of the proceeds of each Loan and the operation of the Contribution, Intercompany
Contracting and Offset Agreement, (a) the fair value of the assets of each Loan Party (individually and on a consolidated basis with its Subsidiaries) will exceed its debts and liabilities,
subordinated, contingent or otherwise; (b) the present fair saleable value of the property of each Loan Party (individually and on a consolidated basis with its Subsidiaries) will be greater
than the amount that will be required to pay the probable liability of its debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and
matured; (c) each Loan Party (individually and on a consolidated basis with its Subsidiaries) will be able to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts
and liabilities become absolute and matured; (d) each Loan Party (individually and on a consolidated basis with its Subsidiaries) will not have unreasonably small capital with which to conduct
its business in which it is engaged as such business is now conducted and is proposed to be conducted following the Closing Date and (e) each Loan Party is not "insolvent" as such term is
defined under any bankruptcy, insolvency or similar laws of any jurisdiction. 

        SECTION 3.17.    Employee Benefit Plans.    Each Company and its ERISA Affiliates is in
compliance in all material respects with the applicable provisions of ERISA and the Code and the regulations and published interpretations thereunder, except where such failure could not reasonably be
expected to result in a Material Adverse Effect. No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events, could reasonably be expected
to result in a Material Adverse Effect of any Company or any of its ERISA Affiliates or the imposition of a Lien on any of the property of any Company. The present value of all accumulated benefit
obligations of all
underfunded Plans (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting
such amounts, exceed by more than $1,000,000 the fair market value of the property of all such underfunded Plans. Using actuarial assumptions and computation methods consistent with subpart I of
subtitle E of Title IV of ERISA, the aggregate liabilities of each Company to all Multiemployer Plans in the event of a complete withdrawal therefrom, as of the close of the most recent fiscal year of
each such Multiemployer Plan, could not reasonably be expected to result in a Material Adverse Effect. 

        To
the extent applicable, each Foreign Plan has been maintained in substantial compliance with its terms and with the requirements of any and all applicable Requirements of Law and has
been maintained, where required, in good standing with applicable regulatory authorities except where failure to do so could not reasonably be expected to result in a Material Adverse Effect. No
Company has incurred any obligation in connection with the termination of or withdrawal from any Foreign Plan except where such obligation could not reasonably be expected to result in a Material
Adverse Effect. The present value of the accrued benefit liabilities (whether or not vested) under each Foreign Plan which is funded, determined as of the end of the most recently ended fiscal year of
the respective Company on the basis of actuarial assumptions, each of which is reasonable, did not exceed by $1,000,000 the current value of the property of such Foreign Plan, and for each Foreign
Plan which is not funded, the obligations of such Foreign Plan are properly accrued except where such failure to accrue could not reasonably be expected to result in a Material Adverse Effect. 

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        SECTION 3.18.    Environmental Matters.    

        (a)   Except
as, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect: 

        (i)    The
Companies and their businesses, operations and Real Property are in compliance with, and the Companies have no liability under, any applicable Environmental Law; and
under the currently effective business plan of the Companies, no expenditures or operational adjustments will be required in order to comply with applicable Environmental Laws during the next five
years; 

        (ii)   The
Companies have obtained all Environmental Permits required for the conduct of their businesses and operations, and the ownership, operation and use of their
property, under Environmental Law, all such Environmental Permits are valid and in good standing and, under the currently effective business plan of the Companies, no expenditures or operational
adjustments will be required in order to renew or modify such Environmental Permits during the next five years; 

        (iii)  There
has been no Release or threatened Release of Hazardous Material on, at, under or from any Real Property or facility presently or formerly owned, leased or
operated by the Companies or their predecessors in interest that could reasonably be expected to result in liability by the Companies under any applicable Environmental Law; 

        (iv)  There
is no Environmental Claim pending or, to the knowledge of the Companies, threatened against the Companies, or relating to the Real Property currently or formerly
owned, leased or operated by the Companies or their predecessors in interest or relating to the operations of the Companies, and there are no actions, activities, circumstances, conditions, events or
incidents that could reasonably be expected to form the basis of such an Environmental Claim; and 

        (v)   No
person with an indemnity or contribution obligation to the Companies relating to compliance with or liability under Environmental Law is in default with respect to
such obligation. 

        (b)   (i) No
Company is obligated to perform any action or otherwise incur any expense under Environmental Law pursuant to any order, decree, judgment or agreement by
which it is bound or has assumed by contract, agreement or operation of law, and no Company is conducting or financing any Response pursuant to any Environmental Law with respect to any Real Property
or any other location; 

        (ii)   No
Real Property or facility owned, operated or leased by the Companies and, to the knowledge of the Companies, no Real Property or facility formerly owned, operated or
leased by the Companies or any of their predecessors in interest is (i) listed or proposed for listing on the National Priorities List promulgated pursuant to CERCLA or (ii) listed on
the Comprehensive Environmental Response, Compensation and Liability Information System promulgated pursuant to CERCLA or (iii) included on any similar list maintained by any Governmental
Authority including any such list relating to petroleum; 

        (iii)  No
Lien has been recorded or, to the knowledge of any Company, threatened under any Environmental Law with respect to any Real Property or other assets of the
Companies; 

        (iv)  The
execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby will not require any notification, registration,
filing, reporting, disclosure, investigation, remediation or cleanup pursuant to any Governmental Real Property Disclosure Requirements or any other applicable Environmental Law; and 

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        (v)   The
Companies have made available to the Lenders all material records and files in the possession, custody or control of, or otherwise reasonably available to, the
Companies concerning compliance with or liability under Environmental Law, including those concerning the actual or suspected existence of Hazardous Material at Real Property or facilities currently
or formerly owned, operated, leased or used by the Companies. 

        SECTION
3.19.    Insurance.    Schedule 3.19 sets forth a true, complete and correct
description of all insurance maintained by each Company as of the Closing Date. All insurance maintained by the Companies is in full force and effect, all premiums have been duly paid, no Company has
received notice of violation or cancellation thereof, the Premises, and the use, occupancy and operation thereof, comply in all material respects with all Insurance Requirements, and there exists no
default under any Insurance Requirement, except for minor defaults that, taken as a whole, do not adversely affect the coverage provided by such insurance. Each Company has insurance in such amounts
and covering such risks and liabilities as are customary for companies of a similar size engaged in similar businesses in similar locations. 

        SECTION 3.20.    Security Documents.    

        (a)    US Security Agreement.    The US Security Agreement is effective to create on the Closing Date in favor of the
applicable Collateral Agents for the benefit of the Secured Parties, legal, valid and enforceable Liens (such enforceability subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law) on, and security interests in, the
Security Agreement Collateral subject to or referenced in the US Security Agreement and (i) when financing statements and other filings including, without limitation, filings with the United
States Patent and Trademark Office or United States Copyright Office in appropriate form are filed in the offices specified on Schedule 7 to the
Perfection Certificate or (ii) upon the taking of possession or control by the applicable Collateral Agent of the Security Agreement Collateral subject to or referenced in the US Security
Agreement with respect to which a security interest may be perfected only by possession or control (which possession or control shall be given to such Collateral Agent to the extent possession or
control by such Collateral Agent is required by the US Security Agreement), the Liens created by the US Security Agreement shall constitute First Priority fully perfected Liens on, and security
interests in, all right, title and interest of the grantors in the Security Agreement Collateral subject to or referenced in the US Security Agreement (other than such Security Agreement Collateral
subject to or referenced in the US Security Agreement in which a security interest cannot be perfected under the UCC as in effect at the relevant time in the relevant jurisdiction), in each case
subject to no Liens other than Permitted Liens. 

        (b)    Canadian Security Agreement.    Each Canadian Security Agreement is effective to create on the Closing Date in
favor of the applicable Collateral Agents for the benefit of the Canadian Secured Parties, legal, valid and enforceable Liens (such enforceability subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors' rights generally (including mandatory provisions of corporate law under the jurisdiction of incorporation of the Loan Parties) and subject
to general principles of equity, regardless of whether considered in a proceeding in equity or at law) on, and security interests in, the Security Agreement Collateral subject to or referenced in such
Canadian Security Agreement and (i) when financing statements or financing change statements and other filings in appropriate form are filed in the offices specified on  Schedule 7 to the
Perfection Certificate or (ii) upon the taking of possession or control by the applicable Collateral Agent of the
Security Agreement Collateral with respect to which a security interest may be perfected only by possession or control (which possession or control shall be given to the applicable Collateral Agents
to the extent possession or control by the applicable Collateral Agents is required by such Canadian Security Agreement), the Liens created 

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by
such Canadian Security Agreement shall constitute First Priority fully perfected Liens on, and security interests in, all right, title and interest of the grantors in the Security Agreement
Collateral subject to or referenced in such Canadian Security Agreement (other than such Security Agreement Collateral subject to or referenced in such Canadian Security Agreement in which a security
interest cannot be perfected (x) under the PPSA as in effect at the relevant time in the relevant jurisdiction or (y) by other filings in appropriate form filed in the offices specified
on Schedule 7 to the Perfection Certificate), in each case subject to no Liens other than Permitted Liens. 

        (c)    Copyright Office Filing.    When the Security Agreements or a short form thereof are filed in the United States
Copyright Office and the Canadian Intellectual Property Office, the Liens created by such Security Agreements shall constitute fully perfected First Priority Liens on, and security interests in, all
right, title and interest of the grantors thereunder in the Intellectual Property referenced therein, including the Registered Copyrights and Registered Copyright Licenses (each as defined in such
Security Agreement), in each case subject to no Liens other than Permitted Liens. 

        (d)    Mortgages.    Each Mortgage is effective to create, in favor of the applicable Collateral Agent, for its
benefit and the benefit of the Secured Parties, legal, valid and enforceable First Priority Liens on, and security interests in, all of the Loan Parties' right, title and interest in and to the
Mortgaged Properties thereunder and the proceeds thereof, subject only to Permitted Liens or other Liens reasonably acceptable to the Senior Note Collateral Agent, and when the Mortgages are filed in
the offices specified on Schedule 8(a) to the Perfection Certificate dated the Closing Date (or, in the case of any Mortgage executed and
delivered after the date thereof in accordance with the provisions of Section 5.11 and  Section 5.12, unless a Loan Party has disclosed in writing
any issues related to perfection thereof or the security interest therein to the
applicable Collateral Agent when such Mortgage is filed in the offices specified in the local counsel opinion delivered with respect thereto in accordance with the provisions of  Section 5.11 and
Section 5.12), the Mortgages shall constitute fully perfected First
Priority Liens on, and security interests in, all right, title and interest of the Loan Parties in the Mortgaged Properties and the proceeds thereof, in each case prior and superior in right to any
other person, other than Liens permitted by such Mortgage. 

        (e)    Valid Liens.    Each Security Document, unless a Loan Party has disclosed in writing any issues related to the
legality, enforceability, validity or security interest therein, delivered pursuant to Section 5.11 and  Section 5.12 will, upon execution and
delivery thereof, be effective to create in favor of the applicable Collateral Agent, for the benefit of
the applicable Secured Parties, legal, valid and enforceable Liens on, and security interests in, all of the Loan Parties' right, title and interest in and to the Collateral thereunder, and when all
appropriate filings or recordings are made in the appropriate offices as may be required under applicable law, such Security Document will constitute fully perfected First Priority Liens on, and
security interests in, all right, title and interest of the Loan Parties in such Collateral, in each case subject to no Liens other than the applicable Permitted Liens. 

        SECTION 3.21.    Acquisition
Documents.    Schedule 3.21 lists (i) each exhibit, schedule, annex or other attachment to the
Acquisition Agreement and (ii) each agreement, certificate, instrument, letter or other document contemplated by the Acquisition Agreement or any item referred to in clause (i) to be
entered into, executed or delivered or to become effective in connection with the Acquisition or otherwise entered into, executed or delivered in connection with the Acquisition. The Lenders have been
furnished true and complete copies of each Acquisition Document to the extent executed and delivered on or prior to the Closing Date. 

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        SECTION 3.22.    Anti-Terrorism Law.    No Loan Party and, to the knowledge of the
Loan Parties, none of its Affiliates is in violation of any Requirement of Law relating to terrorism or money laundering ("Anti-Terrorism
Laws"), including Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 (the "Executive
Order"), and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public
Law 107-56. 

        No
Loan Party and to the knowledge of the Loan Parties, no Affiliate or broker or other agent of any Loan Party acting or benefiting in any capacity in connection with the Loans is any
of the following: 

        (i)    a
person that is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order; 

        (ii)   a
person owned or controlled by, or acting for or on behalf of, any person that is listed in the annex to, or is otherwise subject to the provisions of, the Executive
Order; 

        (iii)  a
person with which any Lender is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law; 

        (iv)  a
person that commits, threatens or conspires to commit or supports "terrorism" as defined in the Executive Order; or 

        (v)   a
person that is named as a "specially designated national and blocked person" on the most current list published by the U.S. Treasury Department Office of Foreign
Assets Control ("OFAC") at its official website or any replacement website or other replacement official publication of such list. 

        No
Loan Party and, to the knowledge of the Loan Parties, no broker or other agent of any Loan Party acting in any capacity in connection with the Loans (i) conducts any business
or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any person described in paragraph (b) above, (ii) deals in, or otherwise engages
in any transaction relating to, any property or interests in property blocked pursuant to the Executive Order, or (iii) engages in or conspires to engage in any transaction that evades or
avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law. 

        SECTION 3.23.    [Intentionally Deleted].    

        SECTION 3.24.    Executive Offices; Location of Material
Inventory.    Schedule 3.24 sets forth all locations in the United States and Canada where the aggregate value
of Inventory owned by the Loan Parties exceeds $250,000. As of the Closing Date, the location in Canada of each chief executive office, principal place of business and domicile (within the meaning of
the Civil Code of Quebec), as applicable, of each Canadian Loan Party is as set out in Schedule 3.24. 

        SECTION 3.25.    Accuracy of Borrowing Base.    At the time any Borrowing Base Certificate is
delivered pursuant to this Agreement, (i) each Account and each item of Inventory included in the calculation of the Borrowing Base satisfies all of the criteria stated herein to be an Eligible
Account and an item of Eligible Inventory, respectively and (ii) each Account and each item of Inventory included in the calculation of the Canadian Borrowing Base satisfies all of the criteria
stated herein to be an Eligible Canadian Account and an item of Eligible Canadian Inventory, respectively. 

        SECTION 3.26.    Post-Audit Asset Dispositions.    As of the Closing Date, the
Borrowers and the other Loan Parties have not disposed of assets (other than Inventory sold in the ordinary course of their business) which are set forth in the initial Inventory Appraisal and which
have an aggregate fair market value of more than $250,000. 

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        SECTION 3.27.    Common Enterprise.    The successful operation and condition of each of the
Loan Parties is dependent on the continued successful performance of the functions of the group of the Loan Parties as a whole and the successful operation of each of the Loan Parties affects the
successful performance and operation of each other Loan Party. Each Loan Party expects to derive benefit (and its board of directors or other governing body has determined that it may reasonably be
expected to derive benefit), directly or indirectly, from (i) successful operations of each of the other Loan Parties, and (ii) the credit extended by the Lenders to the Borrowers
hereunder, both in their separate capacities and as members of the group of companies. Each Loan Party has determined that execution, delivery, and performance of this Agreement and any other Loan
Documents to be executed by such Loan Party is within its purpose, will be of direct and indirect benefit to such Loan Party, and is in its best interest. 

 
 

ARTICLE IV.    
    
    CONDITIONS TO CREDIT EXTENSIONS    
    

        SECTION 4.01.    Conditions to Initial Credit Extension.    The obligation of each Lender and,
if applicable, each Issuing Bank to fund the initial Credit Extension requested to be made by it shall be subject to the prior or concurrent satisfaction (except to the extent that such conditions are
permitted to be satisfied on a post-closing basis pursuant to Section 5.14 herein) of each of the conditions precedent set forth in
this Section 4.01. 

        (a)    Loan Documents.    All legal matters incident to this Agreement, the Credit Extensions hereunder and the other
Loan Documents shall be satisfactory to the Lenders, to the Issuing Bank, the Collateral Agents and to the Administrative Agents and there shall have been delivered to the Administrative Agents an
executed counterpart of each of the Loan Documents and the Perfection Certificate. 

        (b)    Corporate Documents.    The Administrative Agents shall have received: 

        (i)    a
certificate of the secretary or assistant secretary of each Loan Party dated the Closing Date, certifying (A) that attached thereto is a true and complete copy
of each Organizational Document of such Loan Party certified (to the extent applicable) as of a recent date by the Secretary of State of the state of its organization, (B) that attached thereto
is a true and complete copy of resolutions duly adopted by the Board of Directors of such Loan Party authorizing the execution, delivery and performance of the Loan Documents to which such person is a
party and, in the case of the Borrowers, the borrowings hereunder, and that such resolutions have not been modified, rescinded or amended and are in full force and effect and (C) as to the
incumbency and specimen signature of each officer executing any Loan Document or any other document delivered in connection herewith on behalf of
such Loan Party (together with a certificate of another officer as to the incumbency and specimen signature of the secretary or assistant secretary executing the certificate in this
clause (i)); 

        (ii)   a
certificate as to the good standing of each Loan Party (in so-called "long-form" if available) as of a recent date, from such Secretary of
State (or other applicable Governmental Authority); and 

        (iii)  such
other documents as the Lenders, the Issuing Bank or the Administrative Agents may reasonably request. 

        (c)    Officers' Certificate.    The Administrative Agents shall have received a certificate, dated the Closing Date
and signed by the chief executive officer(s) and the chief financial officer(s) of the Borrowers, confirming compliance with the conditions precedent set forth in this  Section 4.01 and Section 4.02(b), (c) and  (e). 

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        (d)    Financings and Other Transactions, Etc.    

        (i)    The
Transactions shall have been consummated or shall be consummated simultaneously on the Closing Date, in each case in all material respects in accordance with the
terms hereof and the terms of the Transaction Documents, without the waiver or amendment of any such terms not approved by the Administrative Agent and the Arranger other than any waiver or amendment
thereof that is not materially adverse to the interests of the Lenders. 

        (ii)   The
Equity Financing shall have been consummated. The terms of the Equity Financing shall not require any payments or other distributions of cash or property in respect
thereof other than payments in kind, or any purchases, redemptions or other acquisitions thereof for cash or property other than payments in kind, in each case prior to the payment in full of all
obligations under the Loan Documents and the Senior Notes, except as permitted by the Loan Documents. 

        (iii)  The
transactions contemplated by the Senior Note Documents shall have been consummated on terms and conditions acceptable to Agents and the Collateral Agents shall
have received, in form and substance acceptable to Agents, the Intercreditor Agreement, duly executed and delivered by the Senior Note Collateral Agent. 

        (iv)  The
Refinancing shall have been consummated in full to the satisfaction of the Lenders with all liens in favor of the existing lenders being unconditionally released;
the Administrative Agents shall have received a "pay-off" letter in form and substance reasonably satisfactory to the Administrative Agents with respect to all debt being refinanced in the
Refinancing; and the Administrative Agents shall have received (A) from any person holding any Lien securing any such debt, such UCC termination statements, PPSA discharges, mortgage releases,
releases of assignments of leases and rents, releases of security interests in Intellectual Property and other instruments, in each case in proper form for recording, as the Administrative Agents
shall have reasonably requested to release and terminate of record the Liens securing such debt or (B) one or more Letters of Credit or cash collateral to secure the reimbursement obligation of
any Borrower or any Subsidiary of any Borrower under any Existing Lender Letter of Credit. 

        (e)    Financial Statements; Pro Forma Balance Sheet; Projections.    The Lenders shall have received the financial
statements described in Section 3.04 and with the forecasts of the Borrowing Base and the financial performance of Holdings, the Borrowers, the
Acquired Business and their respective Subsidiaries. 

        (f)    Indebtedness and Minority Interests.    After giving effect to the Transactions and the other transactions
contemplated hereby, no Company shall have outstanding any Indebtedness or preferred stock other than (i) the Loans and Credit Extensions hereunder, (ii) the Senior Notes,
(iii) the Indebtedness listed on Schedule 6.01(b) and (iv) Indebtedness owed to any Borrower or any Guarantor. 

        (g)    Opinions of Counsel.    The Administrative Agents shall have received, on behalf of themselves, the other
Agents, the Arranger, the Lenders and the Issuing Bank, a favorable written opinion of (i) Morgan, Lewis & Bockius LLP, special counsel for the Loan Parties, (ii) each local and
foreign counsel listed on Schedule 4.01(g), in each case (A) dated the Closing Date, (B) addressed to the Agents, the Issuing Bank
and the Lenders and (C) covering the matters set forth in Exhibit N and such other matters relating to the Loan Documents and the
Transactions as the Administrative Agents shall reasonably request, and (iii) a copy of each legal opinion delivered under the other Transaction Documents, accompanied by reliance letters from
the party delivering 

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such
opinion authorizing the Agents, Lenders and the Issuing Bank to rely thereon as if such opinion were addressed to them. 

        (h)    Solvency Certificate.    The Administrative Agents shall have received a solvency certificate in the form of  Exhibit O,
dated the Closing Date and signed by the chief financial officer(s) of the Borrowers. 

        (i)    Requirements of Law.    The Lenders shall be satisfied that Holdings, its Subsidiaries and the Transactions
shall be in full compliance with all material Requirements of Law, including Regulations T,
U and X of the Board, and shall have received satisfactory evidence of such compliance reasonably requested by them. 

        (j)    Consents.    The Lenders shall be satisfied that all requisite Governmental Authorities and third parties shall
have approved or consented to the Transactions, except for such consents or approvals the absence of which could not reasonably be expected to have a Material Adverse Effect, and there shall be no
governmental or judicial action, actual or threatened, that has or would have, singly or in the aggregate, a reasonable likelihood of restraining, preventing or imposing burdensome conditions on the
Transactions or the other transactions contemplated hereby. 

        (k)    Litigation.    There shall be no litigation, public or private, or administrative proceedings, governmental
investigation or other legal or regulatory developments, actual or threatened, that, singly or in the aggregate, could reasonably be expected to result in a Material Adverse Effect, or could
materially and adversely affect the ability of Holdings, the Borrowers and their respective Subsidiaries to fully and timely perform their respective obligations under the Transaction Documents, or
the ability of the parties to consummate the financings contemplated hereby or the other Transactions. 

        (l)    Sources and Uses.    The sources and uses of the Loans shall be as set forth in  Section 3.12. 

        (m)    Fees.    The Arranger, Administrative Agents and Collateral Agents shall have received all Fees and other
amounts due and payable on or prior to the Closing Date, including, to the extent invoiced, reimbursement or payment of all reasonable out-of-pocket expenses (including the
reasonable legal fees and expenses of Latham & Watkins, LLP, special counsel to the applicable Administrative Agents and the applicable Collateral Agents, and the reasonable fees and expenses
of any local counsel, foreign counsel, appraisers, consultants and other advisors) required to be reimbursed or paid by the Borrowers hereunder or under any other Loan Document. 

        (n)    Personal Property Requirements.    The applicable Collateral Agents shall have received: 

        (i)    all
certificates, agreements or instruments representing or evidencing the Securities Collateral accompanied by instruments of transfer and stock powers undated and
endorsed in blank; 

        (ii)   the
Intercompany Loan Documents executed by and among Holdings and each of its Subsidiaries, accompanied by instruments of transfer undated and endorsed in blank; 

        (iii)  all
other certificates, agreements, including Control Agreements, or instruments necessary to perfect such Collateral Agents' security interest in all Chattel Paper,
all Instruments, all Deposit Accounts and
Securities and all Investment Property of each Loan Party (as each such term is defined in the Security Agreement and to the extent required by the Security Agreement); 

        (iv)  UCC
financing statements in appropriate form for filing under the UCC, and PPSA financing statements or financing change statements in appropriate form for filing under
the 

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PPSA
together with filings with the United States Patent and Trademark Office and United States Copyright Office, as well as the Canadian Intellectual Property Office, and such other documents under
applicable Requirements of Law in each jurisdiction as may be necessary or appropriate or, in the opinion of such Collateral Agents, desirable to perfect the Liens created, or purported to be created,
by the Security Documents and, with respect to all financing statements required to be filed pursuant to the Loan Documents, evidence satisfactory to the Administrative Agents that the Borrowers have
retained, at its sole cost and expense, a service provider acceptable to the Administrative Agents for the tracking of all such financing statements and notification to the Administrative Agents, of,
among other things, the upcoming lapse or expiration thereof; 

        (v)   certified
copies of UCC, PPSA, Canadian Intellectual Property Office, United States Patent and Trademark Office and United States Copyright Office, other personal
property and intellectual property searches, tax and judgment lien searches, bankruptcy and pending lawsuit searches or equivalent reports or searches, each of a recent date listing all effective
financing statements, lien notices or comparable documents that name any Loan Party as debtor and that are filed in those state, provincial and any other county jurisdictions in which any property of
any Loan Party is located and the state, provincial and any other county jurisdictions in which any Loan Party is organized or maintains its principal place of business or domicile (within the meaning
of the Quebec Civil Code) and such other searches that the applicable Collateral Agents deem necessary or appropriate, none of which encumber the Collateral covered or intended to be covered by the
Security Documents (other than Permitted Liens or any other Liens acceptable to the Collateral Agents); 

        (vi)  evidence
acceptable to the applicable Collateral Agents of payment or arrangements for payment by the Loan Parties of all applicable recording taxes, fees, charges,
costs and expenses required for the recording of the Security Documents. 

        (o)    Real Property Requirements.    The applicable Collateral Agents shall have received: 

        (i)    a
Mortgage encumbering each Mortgaged Property in favor of the applicable Collateral Agents, for the benefit of the Secured Parties, duly executed and acknowledged by
each Loan Party that is the owner of or holder of any interest in such Mortgaged Property, and otherwise in form for recording in the recording office of each applicable political subdivision where
each such Mortgaged Property is situated, together with such certificates, affidavits, questionnaires or returns as shall be required in connection with the recording or filing thereof to create a
lien under applicable Requirements of Law,
and such financing statements and any other instruments necessary to grant a mortgage lien under the laws of any applicable jurisdiction, all of which shall be in form and substance reasonably
satisfactory to such Collateral Agent; 

        (ii)   with
respect to each Mortgaged Property, such consents, approvals, amendments, supplements, estoppels, tenant subordination agreements or other instruments as necessary
to consummate the Transactions or as shall reasonably be deemed necessary by such Collateral Agent in order for the owner or holder of the fee or leasehold interest constituting such Mortgaged
Property to grant the Lien contemplated by the Mortgage with respect to such Mortgaged Property; 

        (iii)  with
respect to each Mortgage, a policy of title insurance (or marked up title insurance commitment having the effect of a policy of title insurance) insuring the Lien
of such Mortgage as a valid First Priority mortgage Lien on the Mortgaged Property and fixtures described therein in the amount equal to not less than 115% of the fair market value of such Mortgaged
Property and fixtures, which policy (or such marked-up commitment) (each, a "Title Policy") shall (A) be issued by the Title Company,
(B) contain a "tie-in" or "cluster" 

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endorsement,
if available under applicable law (i.e., policies which insure against losses regardless of location or allocated value of the insured
property up to a stated maximum coverage amount), (C) have been supplemented by such endorsements (or where such endorsements are not available, opinions of special counsel, architects or other
professionals reasonably acceptable to such Collateral Agent) as shall be reasonably requested by such Collateral Agent (including endorsements on matters relating to usury, first loss, last dollar,
zoning, contiguity, revolving credit, doing business, non-imputation, public road access, survey, variable rate, environmental lien, subdivision, mortgage recording tax, separate tax lot,
and so-called comprehensive coverage over covenants and restrictions), and (D) contain no exceptions to title other than Permitted Liens and other exceptions acceptable to such
Collateral Agent; 

        (iv)  with
respect to each Mortgaged Property, such affidavits, certificates, information (including financial data) and instruments of indemnification (including a
so-called "gap" indemnification) as shall be reasonably required to induce the Title Company to issue the Title Policy/ies and endorsements contemplated above; 

        (v)   evidence
reasonably acceptable to such Collateral Agent of payment by or on behalf of the Borrowers of all Title Policy premiums, search and examination charges, escrow
charges and related charges, mortgage recording taxes, fees, charges, costs and expenses required for the recording of the Mortgages and issuance of the Title Policies referred to above; 

        (vi)  with
respect to each Mortgaged Property, copies of all Leases in which any Borrower or any Subsidiary holds the lessor's interest. To the extent any of the foregoing
affect any Mortgaged Property,
such agreement shall be subordinate to the Lien of the Mortgage to be recorded against such Mortgaged Property, either expressly by its terms or pursuant to a subordination,
non-disturbance and attornment agreement, and shall otherwise be acceptable to such Collateral Agent; 

        (vii) with
respect to each Mortgaged Property, each Company shall have made all notifications, registrations and filings, to the extent required by, and in accordance with,
all Governmental Real Property Disclosure Requirements applicable to such Mortgaged Property; 

        (viii) Surveys
with respect to each Mortgaged Property; and 

        (ix)  a
completed Federal Emergency Management Agency Standard Flood Hazard Determination with respect to each Mortgaged Property. 

        (p)    Insurance.    The Administrative Agents shall have received a copy of, or a certificate as to coverage under,
the insurance policies required by Section 5.04 and the applicable provisions of the Security Documents, each of which shall be endorsed or
otherwise amended to include a "standard" or "New York" lender's loss payable or mortgagee endorsement (as applicable) and, in the case of any Canadian insurable interests, shall evidence that all
applicable policies are subject to the standard mortgage clause approved by the Insurance Bureau of Canada, and shall name the applicable Collateral Agents, on behalf of the Secured Parties, as
additional insured, and shall otherwise be in form and substance satisfactory to the Administrative Agents and Collateral Agents. 

        (q)    USA Patriot Act.    The Lenders shall have received, sufficiently in advance of the Closing Date, all
documentation and other information required by bank regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including without
limitation, the United States PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) including, without limitation, the information described in  Section 11.13.

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        (r)    Initial Borrowing Base Certificate.    The Collateral Agents and the Administrative Agents shall have received
a Borrowing Base Certificate, dated as of the Closing Date, showing an Excess Availability of not less than $325,000,000 or such lesser amount as UBS, after consultation with the Lenders, may approve
on the Closing Date. 

        (s)    Take Over Audit.    Within five (5) days prior to the Closing Date, the Collateral Agents' (directly or
through one or more agents) and Administrative Agents' shall have conducted a review of the Collateral, including a supplemental "take over audit" which supports and confirms (i) the
calculation of the initial Borrowing Base and Excess Availability, (ii) no material change in the procedures since the delivery of the initial Inventory Appraisal, (iii) no material
change in sales, Inventory turn or the level of Inventory since the delivery of the initial Inventory Appraisal and (iv) the accuracy of all representations and warranties set forth herein. 

        (t)    Cash Management.    The Collateral Agents and the Administrative Agents shall have reviewed and approved the
Companies' cash management system and shall have received executed blocked account agreements (from all of the financial institutions where the Loan Parties maintain bank accounts or securities
accounts, other than those identified in Section 9.02) in form and substance satisfactory to Administrative Agents and Collateral Agents and in
accordance with Section 9.02. 

        (u)   Borrowings
on the Closing Date will not exceed an amount (not to exceed $100 million) equal to (i) the net working capital (current assets, other than
cash, less current liabilities) of the Acquired Business as of the last completed month's balance sheet less (ii) $470 million. In addition, (x) up to $150 million face
amount of Letters of Credit may be issued on the Closing Date to replace outstanding letters of credit of the Acquired Business and (y) up to $10 million face amount of Letters of Credit
may be issued on the Closing Date to secure certain indemnity obligations in favor of CVS Corporation and certain affiliated entities. 

        SECTION 4.02.    Conditions to All Credit Extensions.    The obligation of each Lender and
each Issuing Bank to make any Credit Extension (including the initial Credit Extension) shall be subject to, and to the satisfaction of, each of the conditions precedent set forth below. 

        (a)    Notice.    The applicable Administrative Agent shall have received a Borrowing Request as required by  Section 2.03 (or
such notice shall have been deemed given in accordance with Section 2.03)
if Loans are being requested or, in the case of the issuance, amendment, extension or renewal of a Letter of Credit, the Issuing Bank and the applicable Administrative Agent shall have received an LC
Request as required by Section 2.18(b) or, in the case of the Borrowing of a Swingline Loan, the applicable Swingline Lender and the applicable
Administrative Agent shall have received a Borrowing Request as required by Section 2.17(b). 

        (b)    No Default.    The Borrowers and each other Loan Party shall be in compliance in all material respects with all
the terms and provisions set forth herein and in each other Loan Document on its part to be observed or performed, and, at the time of and immediately after giving effect to such Credit Extension and
the application of the proceeds thereof, no Default shall have occurred and be continuing on such date. 

        (c)    Representations and Warranties.    Each of the representations and warranties made by any Loan Party set forth
in Article III hereof or in any other Loan Document shall be true and correct in all material respects (except that any representation and
warranty that is qualified as to "materiality" or "Material Adverse Effect" shall be true and correct in all respects) on and as of the date of such Credit Extension with the same effect as though
made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date. 

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        (d)    Compliance with Borrowing Base.    After giving pro forma
effect to the proposed Credit Extension, the outstanding Revolving Exposure shall not exceed the Borrowing Base plus (without duplication) the Canadian Borrowing Base, in each case then in effect. 

        (e)    No Legal Bar.    No order, judgment or decree of any Governmental Authority shall purport to restrain any
Lender from making any Loans to be made by it. No injunction or other restraining order shall have been issued, shall be pending or noticed with respect to any action, suit or proceeding seeking to
enjoin or otherwise prevent the consummation of, or to recover any damages or obtain relief as a result of, the transactions contemplated by this Agreement or the making of Loans hereunder. 

        Each
of the delivery of a Borrowing Request or an LC Request and the acceptance by the Borrowers of the proceeds of such Credit Extension shall constitute a representation and warranty
by the Borrowers and each other Loan Party that on the date of such Credit Extension (both immediately before and after giving effect to such Credit Extension and the application of the proceeds
thereof) the conditions contained in Section 4.02(b)-(e) have been satisfied. The Borrowers shall
provide such information (including calculations in reasonable detail of the covenants in Section 6.10) as the Administrative Agents and
Collateral Agents may reasonably request to confirm that the conditions in Section 4.02(b)-(e)
have been satisfied. 

 
 

ARTICLE V.    
    
    AFFIRMATIVE COVENANTS    
    

        Each Loan Party warrants, covenants and agrees with each Administrative Agent, Collateral Agent and Lender that so long as this Agreement shall remain in effect
and until the Commitments have been terminated and the principal of and interest on each Loan, all Fees and all other expenses or amounts payable under any Loan Document shall have been paid in full
and all Letters of Credit have been canceled or have expired or been fully cash collateralized and all amounts drawn thereunder have been
reimbursed in full, unless the Required Lenders shall otherwise consent in writing, each Loan Party will, and will cause each of its Subsidiaries to: 

        SECTION 5.01.    Financial Statements, Reports, etc.    Furnish to the Administrative Agents
and each Lender: 

        (a)    Annual Reports.    As soon as available and in any event, not later than April 1, 2006, an annual report
of Holdings on form 10-K as would be required to be filed with the SEC (whether or not such report is actually required to be filed) and a consolidating year end balance sheet for
the fiscal year ending December 31, 2005. As soon as available and in any event, within 90 days after the end of each fiscal year, beginning with the fiscal year ending
December 31, 2006, (i) the consolidated balance sheet of Holdings as of the end of each such fiscal year and related consolidated statements of income, cash flows and stockholders'
equity for such fiscal year in comparative form with such financial statements as of the end of, and for, the preceding fiscal year (except that comparative statements of income and cash flows for the
fiscal year ending December 31, 2005 shall not be required), and, in each case, notes thereto (including a note with a consolidating balance sheet and statements of income and cash flows
separating out the results of Holdings, the Borrowers, each Borrowing Base Guarantor and the aggregate results of all Subsidiaries), all prepared in accordance with Regulation S-X
and accompanied by an opinion of KPMG LLP or other independent public accountants of recognized national standing satisfactory to the Administrative Agents (which opinion shall not be qualified as to
scope or contain any going concern or other qualification), stating that such financial statements fairly present, in all material respects, the consolidated financial condition, results of
operations, cash flows of Holdings as of the dates and for the periods specified in accordance with GAAP, (ii) a management report in a form reasonably satisfactory to the Administrative Agents
setting forth (A) statement of 

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income
items and Consolidated Cash Flow of Holdings for such fiscal year, showing variance, by dollar amount and percentage, from amounts for the previous fiscal year and budgeted amounts and
(B) key operational information and statistics for such fiscal year consistent with internal and industry-wide reporting standards, including same-store sales, and
(iii) a narrative report and management's discussion and analysis, in a form reasonably satisfactory to the Administrative Agents, of the financial condition and results of operations of
Holdings for such fiscal year, as compared to amounts for the previous fiscal year and budgeted amounts (it being understood that the information required by clause (i) may be furnished in the
form of a Form 10-K); 

        (b)    Quarterly Reports.    As soon as available and in any event within 45 days after the end of each of the
first three fiscal quarters of each fiscal year, beginning with the first fiscal quarter of the 2006 fiscal year, (i)(A) the consolidated balance sheet of Holdings as of the end of each of the first
three fiscal quarters of the 2006 fiscal year and related consolidated statements of income and cash flows for each such fiscal quarter and for the then elapsed portion of the fiscal year and
(B) the consolidated balance sheet of Holdings as of the end of each of the first three fiscal quarters of the 2007 fiscal year and of each fiscal year thereafter and related consolidated
statements of income and cash flows for such fiscal quarter and for the then elapsed portion of the fiscal year, in comparative form with the consolidated statements of income and cash flows for the
comparable periods in the previous fiscal year, and notes, in each case, thereto (including a note with a consolidating balance sheet and statements of income and cash flows separating out Holdings,
the Borrowers and the Subsidiaries), all prepared in accordance
with Regulation S-X under the Securities Act and accompanied by a certificate of a Financial Officer stating that such financial statements fairly present, in all material respects,
the consolidated financial condition, results of operations and cash flows of Holdings as of the date and for the periods specified in accordance with GAAP consistently applied, and on a basis
consistent with audited financial statements referred to in clause (a) of this Section, subject to normal year-end audit adjustments, (ii) a management report in a form
reasonably satisfactory to the Administrative Agents setting forth (A) statement of income items and Consolidated Cash Flow of Holdings for such fiscal quarter and for the then elapsed portion
of the fiscal year, showing variance, by dollar amount and percentage, from amounts for the comparable periods in the previous fiscal year and budgeted amounts and (B) key operational
information and statistics for such fiscal quarter and for the then elapsed portion of the fiscal year consistent with internal and industry-wide reporting standards, including
same-store sales and (iii) management's discussion and analysis, in a form reasonably satisfactory to the Administrative Agents, of the financial condition and results of operations
for such fiscal quarter and the then elapsed portion of the fiscal year, as compared to the comparable periods in the previous fiscal year and budgeted amounts (it being understood that the
information required by clause (i) may be furnished in the form of a Form 10-Q); 

        (c)    Monthly Reports.    Within 30 days after the end of each of the first two months of each fiscal quarter
(i) the unaudited consolidated balance sheet of Holdings and its Subsidiaries as of the end of such two months and the related consolidated statements of income and cash flows of Holdings and
its Subsidiaries for such month and for the then elapsed portion of the fiscal year, in comparative form with the consolidated statements of income and cash flows for the comparable periods in the
previous fiscal year (except that comparative statements of income and cash flows for the fiscal year ending December 31, 2005 shall not be required), and (ii) same store sales
information and statistics for such month and for the then elapsed portion of the fiscal year consistent with internal and industry-wide reporting standards, each in form and substance
reasonably satisfactory to the Administrative Agent; 

        (d)    Financial Officer's Certificate.    (i) Concurrently with any delivery of financial statements under  Section 5.01(a) or (b), a Compliance Certificate (A) certifying that no Default has
occurred or, if such a Default has occurred, specifying the nature and extent thereof and any corrective 

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action
taken or proposed to be taken with respect thereto, (B) beginning with the first fiscal quarter of the 2006 fiscal year, setting forth computations in reasonable detail satisfactory to
the Administrative Agents demonstrating compliance with the covenants contained in Section 6.10 (including the aggregate amount of Excluded
Issuances for such period and the uses therefor) and (C) showing a reconciliation of Consolidated Cash Flow to the net income set forth on the statement of income; and (ii) concurrently
with any delivery of financial statements under Section 5.01(a) above, beginning with the fiscal year ending December 31, 2006, a report
of the accounting firm opining on or certifying such financial statements stating that in the course of its regular audit of the financial statements of Holdings and its Subsidiaries, which audit was
conducted in accordance with generally accepted auditing standards, such accounting firm obtained no knowledge that any Default insofar as it relates to financial or accounting matters has occurred
or, if in the opinion of such accounting firm such a Default has occurred, specifying the nature and extent thereof; 

        (e)    Financial Officer's Certificate Regarding Collateral.    Concurrently with any delivery of financial statements
under Section 5.01(a), a certificate of a Financial Officer setting forth the information required pursuant to the Perfection Certificate
Supplement or confirming that there has been no change in such information since the date of the Perfection Certificate or latest Perfection Certificate Supplement; 

        (f)    Public Reports.    Promptly after the same become publicly available, copies of all periodic and other reports,
proxy statements and other materials filed by any Company with the Securities and Exchange Commission, the Ontario Securities Commission or any Governmental Authority succeeding to any or all of the
functions of any said Commission, or with any national or other securities exchange or securities commission, or distributed to holders of its Indebtedness pursuant to the terms of the documentation
governing such Indebtedness (or any trustee, agent or other representative therefor), as the case may be; 

        (g)    Management Letters.    Promptly after the receipt thereof by any Company, a copy of any "management letter"
received by any such person from its certified public accountants and the management's responses thereto; 

        (h)    Budgets.    Within 30 days after the beginning of each fiscal year, a budget for Holdings in form
reasonably satisfactory to the Administrative Agents, but to include balance sheets, statements of income and sources and uses of cash, for (i) each month of such fiscal year prepared in
detail, including line items for budgeted Borrowing Base levels and utilization of Revolving Loans and (ii) each fiscal year thereafter, through and including the fiscal year in which the Final
Maturity Date occurs, prepared in summary form, in each case, of Holdings, Borrowers and their respective Subsidiaries, with appropriate presentation and discussion of the principal assumptions upon
which such budgets are based, accompanied by the statement of a Financial Officer of Borrower to the effect that the budget of Holdings is a reasonable estimate for the periods covered thereby and,
promptly when available, any material revisions of such budget; 

        (i)    Organization.    Concurrently with any delivery of financial statements under  Section 5.01(a), an accurate
organizational chart as required by Section 3.07(c), or
confirmation that there are no changes to Schedule 10(a) to the Perfection Certificate; 

        (j)    Organizational Documents.    Promptly provide copies of any Organizational Documents that have been amended or
modified in accordance with the terms hereof and deliver a copy of any notice of default given or received by any Company under any Organizational Document within 15 days after such Company
gives or receives such notice; and 

        (k)    Other Information.    Promptly, from time to time, such other information regarding the operations, business
affairs and financial condition of any Company, or compliance with the terms 

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of
any Loan Document or matters regarding the Collateral (beyond the requirements contained in Section 9.04) as the Administrative Agents or any
Lender may reasonably request. 

        SECTION 5.02.    Litigation and Other Notices.    Furnish to the Administrative Agents and
each Lender written notice of the following promptly (and, in any event, within three Business Days of the occurrence thereof): 

        (a)   any
Default, specifying the nature and extent thereof and the corrective action (if any) taken or proposed to be taken with respect thereto; 

        (b)   the
filing or commencement of, or any threat or notice of intention of any person to file or commence, any action, suit, litigation or proceeding, whether at law or in
equity by or before any Governmental Authority, (i) against any Company or any Affiliate thereof that could reasonably be expected to result in a Material Adverse Effect or (ii) with
respect to any Loan Document; 

        (c)   any
development that has resulted in, or could reasonably be expected to result in a Material Adverse Effect; 

        (d)   the
occurrence of a Casualty Event; and 

        (e)   (i) the
incurrence of any material Lien (other than Permitted Liens) on, or claim asserted against any of the Collateral or (ii) the occurrence of any
other event which could materially affect the value of the Collateral. 

        SECTION 5.03.    Existence; Businesses and Properties.    

        (a)   Do
or cause to be done all things necessary to preserve, renew and maintain in full force and effect its legal existence, except as otherwise expressly permitted under  Section 6.05 or Section 6.06 or, in the case of any Subsidiary, where the failure to
perform such obligations, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 

        (b)   Do
or cause to be done all things necessary to obtain, preserve, renew, extend and keep in full force and effect the rights, licenses, permits, privileges, franchises,
authorizations, patents, copyrights, trademarks and trade names material to the conduct of its business except where such failure could reasonably be expected to result in a Material Adverse Effect;
maintain and operate such business in substantially the manner in which it is presently conducted and operated; comply with all applicable Requirements of Law (including any and all zoning, building,
Environmental Law, ordinance, code or approval or any building permits or any restrictions of record or agreements affecting the Real Property) and decrees and orders of any Governmental Authority,
whether now in effect or hereafter enacted, except where the failure to comply, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect; pay and
perform its obligations under all Leases and Transaction Documents; and at all times maintain, preserve and protect all property material to the conduct of such business and keep such property in good
repair, working order and condition (other than wear and tear occurring in the ordinary course of business) and from time to time make, or cause to be made, all needful and proper repairs, renewals,
additions, improvements and replacements thereto necessary in order that the business carried on in connection therewith may be properly conducted at all times;  provided that nothing in this
Section 5.03(b) shall prevent (i) sales of property,
consolidations or mergers or amalgamations by or involving any Company in accordance with Section 6.05 or  Section 6.06; (ii) the withdrawal
by any Company of its qualification as a foreign corporation in any jurisdiction where such withdrawal,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect; or (iii) the abandonment by any Company of any rights, franchises, 

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licenses,
trademarks, trade names, copyrights or patents that such person reasonably determines are not useful to its business or no longer commercially desirable. 

        SECTION 5.04.    Insurance.    

        (a)    Generally.    Keep its insurable property adequately insured at all times by financially sound and reputable
insurers; maintain such other insurance, to such extent and against such risks as is customary with companies in the same or similar businesses operating in the same or similar locations, including
insurance with respect to Mortgaged Properties and other properties material to the business of the Companies against such casualties and contingencies and of such types and in such amounts with such
deductibles as is customary in the case of similar businesses operating in the same or similar locations, including (i) physical hazard insurance on an "all risk" basis, (ii) commercial
general liability against claims for bodily injury, death or property damage covering any and all insurable claims, (iii) explosion insurance in respect of any boilers, machinery or similar
apparatus constituting Collateral, (iv) business interruption insurance, (v) worker's compensation insurance and such other insurance as may be required by any Requirement of Law and
(vi) such other insurance against risks as the Administrative Agents and the Collateral Agents may from time to time reasonably require (such policies to be in such form and amounts and having
such coverage as may be reasonably satisfactory to the applicable Administrative Agent and applicable Collateral Agent); provided that with respect to
physical hazard insurance, neither Collateral Agent nor the applicable Company shall agree to the adjustment of any claim for more than $5.0 million thereunder without the consent of the other
(such consent not to be unreasonably withheld or delayed); provided, further, that no consent of any Company shall be required during an Event of
Default. 

        (b)    Requirements of Insurance.    All such insurance shall (i) provide that no cancellation, material
reduction in amount or material reduction in coverage thereof shall be effective until at least 30 days after receipt by the applicable Collateral Agent of written notice thereof,
(ii) with respect to the Collateral, name the applicable Collateral Agents as mortgagee (in the case of property insurance) or additional insured on behalf of the applicable Secured Parties (in
the case of liability insurance) or loss payee (in the case of property insurance), as applicable, (iii) if reasonably requested by such Collateral Agents, include a breach of warranty clause
and (iv) be reasonably satisfactory in all other respects to such Collateral Agents. 

        (c)    Notice to Agents.    Notify the Administrative Agents and the Collateral Agents immediately whenever any
separate insurance concurrent in form or contributing in the event of loss with that required to be maintained under this Section 5.04 is taken
out by any Company; and promptly deliver to the Administrative Agents and the Collateral Agents a duplicate original copy of such policy or policies. 

        (d)    Flood Insurance.    With respect to each Mortgaged Property, obtain flood insurance in such total amount as the
Administrative Agents or the Required Lenders may from time to time reasonably require, if at any time the area in which any improvements located on any Mortgaged Property is designated a "flood
hazard area" in any Flood Insurance Rate Map published by the Federal Emergency Management Agency (or any successor agency), and otherwise comply with the National Flood Insurance Program as set forth
in the Flood Disaster Protection Act of 1973, as amended from time to time. 

        (e)    Broker's Report.    Deliver to the Administrative Agents and the Collateral Agents and the Lenders a report of
a reputable insurance broker with respect to such insurance and such supplemental reports with respect thereto as the Administrative Agents or the Collateral Agents may from time to time reasonably
request. 

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        (f)    Mortgaged Properties.    Each Loan Party shall otherwise comply in all material respects with all Insurance
Requirements in respect of the Premises; provided, however, that each Loan Party may, at its own expense and after written notice to the Administrative
Agents and the Collateral Agents, (i) contest the applicability or enforceability of any such Insurance Requirements by appropriate legal proceedings, or (ii) cause the Insurance Policy
containing any such Insurance Requirement to be replaced by a new policy complying with the provisions of this Section 5.04. 

        SECTION 5.05.    Obligations and Taxes.    

        (a)    Payment of Obligations.    Pay its Indebtedness and other obligations promptly and in accordance with their
terms and pay and discharge promptly when due all Taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or in respect of its property, before the same
shall become delinquent or in default, as well as all lawful claims for labor, services, materials and supplies or otherwise that, if unpaid, might give rise to a Lien other than a Permitted Lien upon
such properties or any part thereof; provided that such payment and discharge shall not be required with respect to any such Tax, assessment, charge,
levy or claim so long as (x)(i) the validity or amount thereof shall be contested in good faith by appropriate proceedings timely instituted and diligently conducted and the applicable Company
shall have set aside on its books adequate reserves or other appropriate provisions with respect thereto in accordance with GAAP, (ii) such contest operates to suspend collection of the
contested obligation, Tax, assessment or charge and enforcement of a Lien other than a Permitted Lien and (iii) in the case of Collateral, the applicable Company shall have otherwise complied
with the Contested Collateral Lien Conditions and (y) the failure to pay could not reasonably be expected to result in a Material Adverse Effect. 

        (b)    Filing of Returns.    Timely and correctly file all material Tax Returns required to be filed by it. Withhold,
collect and remit all Taxes that it is required to collect, withhold or remit. 

        (c)    Tax Shelter Reporting.    Each Borrower does not intend to treat the Loans as being a "reportable transaction"
within the meaning of Treasury Regulation Section 1.6011-4. In the event any Borrower determines to take any action inconsistent with such intention, such Borrower will promptly
notify the Administrative Agents thereof. 

        SECTION 5.06.    Employee Benefits.    (a) Comply in all material respects with the
applicable provisions of ERISA and the Code except where such non-compliance could not reasonably be expected to result in a Material Adverse Effect and (b) furnish to the
Administrative Agents (x) as soon as possible after, and in any event within 5 Business Days after any Responsible Officer of any Company knows or has reason to know that, any ERISA Event has
occurred that, alone or together with any other ERISA Event could reasonably be expected to result in liability of the Companies or any of their ERISA Affiliates in an aggregate amount that could
reasonably be expected to result in a Material Adverse Effect or the imposition of a Lien, a statement of a Financial Officer of the Borrowers setting forth details as to such ERISA Event and the
action, if any, that the Companies propose to take with respect thereto, and (y) upon request by the Administrative Agents, copies of (i) each Schedule B (Actuarial Information)
to the annual report (Form 5500 Series) filed by any Company with the Internal Revenue Service with respect to each Plan; (ii) the most recent actuarial valuation report for each Plan;
(iii) all notices received by any Company from a Multiemployer Plan sponsor or any governmental agency concerning an ERISA Event; and (iv) such other documents or governmental reports or
filings relating to any Plan as the Administrative Agents shall reasonably request. 

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        SECTION 5.07.    Maintaining Records; Access to Properties and Inspections; Annual
Meetings.    

        (a)   Keep
proper books of record and account in which full, true and correct entries in conformity with GAAP and all Requirements of Law are made of all dealings and
transactions in relation to its business and activities, including, without limitation, proper records of intercompany transaction and the Borrowing Base Guarantor Intercompany Loan Amounts with full,
true and correct entries reflecting all payments received and paid (including, without limitation, funds received by or for the account of Borrower from deposit accounts of the other Companies). Each
Company will permit any representatives designated by the Administrative Agents or any Lender to visit and inspect the financial records and the property of such Company at reasonable times during
regular business hours and as often as reasonably requested and to make extracts from and copies of such financial records, and permit any representatives designated by the Administrative Agents or
any Lender to discuss the affairs, finances, accounts and condition of any Company with the officers and employees thereof and advisors therefor (including independent accountants). 

        (b)   Within
150 days after the end of each fiscal year of the Companies, at the request of the Administrative Agents or Required Lenders, hold a meeting (at a mutually
agreeable location, venue and time or, at the option of the Administrative Agents, by conference call, the costs of such venue or call to be paid by the Borrowers) with all Lenders who choose to
attend such meeting, at which meeting shall be reviewed the financial results of the previous fiscal year and the financial condition of the Companies and the budgets presented for the current fiscal
year of the Companies. 

        SECTION 5.08.    Use of Proceeds.    Use the proceeds of the Loans only for the purposes set
forth in Section 3.12 and request the issuance of Letters of Credit only for the purposes set forth in the definition of Commercial Letter of
Credit or Standby Letter of Credit, as the case may be. 

        SECTION 5.09.    Compliance with Environmental Laws; Environmental Reports.    

        (a)   Comply,
and cause all lessees and other persons occupying Real Property of any Company to comply, in all material respects with all Environmental Laws and Environmental
Permits applicable to its operations and Real Property; obtain and renew all material Environmental Permits applicable to its operations and Real Property; and conduct all Responses required by, and
in accordance with, Environmental Laws; provided that no Company shall be required to undertake any Response to the extent that its obligation to do so
is being contested in good faith and by proper proceedings and appropriate reserves are being maintained with respect to such circumstances in accordance with GAAP. 

        (b)   If
a Default caused by reason of a breach of Section 3.18 or  Section 5.09(a) shall have occurred and be continuing for more than 20 days
without the Companies commencing activities reasonably likely
to cure such Default in accordance with Environmental Laws, at the written request of the Administrative Agents or the Required Lenders through the Administrative Agents, provide to the Lenders within
45 days after such request, at the expense of the Borrowers, an environmental assessment report regarding the matters which are the subject of such Default, including, where appropriate in the
reasonable judgment of the Administrative Agents, soil and/or groundwater sampling, prepared by an environmental consulting firm and, in the form and substance, reasonably acceptable to the
Administrative Agents and indicating the presence or absence of Hazardous Materials and the estimated cost of any compliance or Response to address them. 

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        SECTION 5.10.    [Intentionally Deleted].    

        SECTION 5.11.    Additional Collateral; Additional Guarantors.    

        (a)   Subject
to the terms of the Intercreditor Agreement and this Section 5.11, with respect to any property acquired
after the Closing Date by any Loan Party that is intended to be subject to the Lien created by any of the Security Documents (as specified in this  Section 5.11), promptly (and in any event within
60 days after the acquisition thereof) (i) execute and deliver to the applicable
Administrative Agent and the applicable Collateral Agents such amendments or supplements to the relevant Security Documents or such other documents as such Administrative Agent or such Collateral
Agents shall deem reasonably necessary or advisable to grant to such Collateral Agents, for their benefit and for the benefit of the Secured Parties, a Lien on such property subject to no Liens other
than Permitted Liens, and (ii) take all actions necessary to cause such Lien to be duly perfected to the extent required by such Security Document in accordance with all applicable Requirements
of Law, including the filing of financing statements in such jurisdictions as may be reasonably requested by such Administrative Agent. The Borrowers shall otherwise take such actions and execute
and/or deliver to the applicable Collateral Agents such documents as the applicable Administrative Agent or such Collateral Agents shall require to confirm the validity, perfection and priority of the
Lien of the Security Documents against such after-acquired properties. 

        (b)   Subject
to the terms of the Intercreditor Agreement, with respect to any person that is or becomes a Subsidiary after the Closing Date, promptly (and in any event within
30 days after such person becomes a Subsidiary) (i) pledge and deliver to the applicable Collateral Agent the certificates, if any, representing all of the Equity Interests of such
Subsidiary, provided that with respect to any Foreign Subsidiary no more than 65% of the Equity Interests of any first-tier Foreign Subsidiary of US Borrowers or any US Subsidiary (and no
stock of any other Foreign Subsidiary) shall be so pledged and delivered as security for the US Obligations, together with undated stock powers or other appropriate instruments of transfer executed
and delivered in blank by a duly authorized officer of the holder(s) of such Equity Interests, (ii)(A) deliver to the US Collateral Agent as security for the US Obligations all intercompany notes
owing from such Subsidiary to any Loan Party that is a US
Borrower or US Subsidiary and (B) deliver to the Canadian Collateral Agent as security for the Canadian Obligations all intercompany notes owing from such Subsidiary to any Loan Party that is a
Canadian Borrower or Foreign Subsidiary, in each case, together with instruments of transfer executed and delivered in blank by a duly authorized officer of such Loan Party and
(iii) (A) if such new Subsidiary is a US Subsidiary, cause such new US Subsidiary to execute and deliver a Joinder Agreement or such comparable documentation to become a Subsidiary
Guarantor and a joinder agreement to the applicable Security Agreement, substantially in the form annexed thereto, (B) if such new Subsidiary is a Foreign Subsidiary, cause such new Foreign
Subsidiary to execute and deliver a pledge agreement, security agreement and guarantee substantially in the form of the applicable Canadian Pledge Agreement, Canadian Security Agreement and Canadian
Guaranty and (C) cause to take all actions necessary or advisable in the opinion of the applicable Administrative Agent or the applicable Collateral Agent to cause the Lien created by the
applicable Security Agreement to be duly perfected to the extent required by such agreement in accordance with all applicable Requirements of Law, including the filing of financing statements in such
jurisdictions as may be reasonably requested by the applicable Administrative Agent or the applicable Collateral Agent. 

        (c)   Subject
to the terms of the Intercreditor Agreement, promptly grant to the applicable Collateral Agents, within 60 days of the acquisition thereof, a security
interest in and Mortgage on each Real Property owned in fee by such Loan Party that is a US Borrower or US Subsidiary, as is acquired by such Loan Party after the Closing Date and that, together with
any improvements thereon, individually has a fair market value of at least $5,000,000, in each case, as additional 

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security
for the Secured Obligations (unless the subject property is already mortgaged to a third party to the extent permitted by Section 6.02).
Subject to the terms of the Intercreditor Agreement, such Mortgages shall be granted pursuant to documentation reasonably satisfactory in form and substance to the applicable Administrative Agents and
the applicable Collateral Agents and shall constitute valid and enforceable perfected First Priority Liens subject only to Permitted Liens or other Liens reasonably acceptable to the such Collateral
Agent. Subject to the terms of the Intercreditor Agreement, the Mortgages or instruments related thereto shall be duly recorded or filed in such manner and in such places as are required by law to
establish, perfect, preserve and protect the First Priority Liens in favor of the applicable Collateral Agents required to be granted pursuant to the Mortgages and all taxes, fees and other charges
payable in connection therewith shall be paid in full. Such Loan Party shall otherwise take such actions and execute and/or deliver to the applicable Collateral Agents such documents as the applicable
Administrative Agent or such Collateral Agent shall reasonably require to confirm the validity, perfection and priority of the Lien of any existing Mortgage or new Mortgage against such after-acquired
Real Property (including a Title Policy, a Survey and local counsel opinion (in form and substance reasonably satisfactory to such Administrative Agent and such Collateral Agent) in respect of such
Mortgage). 

        (d)   The
Borrowers may designate any Subsidiary acquired or formed after the Closing Date as a Non-Guarantor Subsidiary by written notice to the applicable
Administrative Agent; provided, however, that if at any time any Non-Guarantor Subsidiary or group of Non-Guarantor Subsidiaries
in the aggregate (other than any Foreign Subsidiary not otherwise subject to Section 5.11(b)) has assets with either a book value or fair market
value in excess of $1.0 million, then the Borrowers shall, and shall cause one or more of such Subsidiaries to, comply with  Section 5.11(b) within the time frames set forth therein so that no
Non-Guarantor
Subsidiary or group of Non-Guarantor Subsidiaries in the aggregate holds property having either a book value or fair market value in excess of $1.0 million. 

        SECTION 5.12.    Security Interests; Further Assurances.    Subject to the terms of the
Intercreditor Agreement, promptly, upon the reasonable request of any Administrative Agent, Collateral Agent or Lender, at the applicable Borrower's expense, execute, acknowledge and deliver, or cause
the execution, acknowledgment and delivery of, and thereafter register, file or record, or cause to be registered, filed or recorded, in an appropriate governmental office, any document or instrument
supplemental to or confirmatory of the Security Documents or otherwise deemed by such Administrative Agent or such Collateral Agent reasonably necessary or desirable for the continued validity,
perfection and priority of the Liens on the Collateral covered thereby subject to no other Liens except as permitted by the applicable Security Document or this Agreement, or obtain any consents or
waivers as may be reasonably necessary or appropriate in connection therewith. Deliver or cause to be delivered to the applicable Administrative Agent and the applicable Collateral Agents from time to
time such other documentation, consents, authorizations, approvals and orders in form and substance reasonably satisfactory to such Administrative Agent and such Collateral Agents as such
Administrative Agent and such Collateral Agents shall reasonably deem necessary to perfect or maintain the Liens on the Collateral pursuant to the Security Documents. Upon the exercise by any
Administrative Agent, Collateral Agent or Lender of any power, right, privilege or remedy pursuant to any Loan Document which requires any consent, approval, registration, qualification or
authorization of any Governmental Authority execute and deliver all applications, certifications, instruments and other documents and papers that such Administrative Agent, Collateral Agent or Lender
may require. If any Administrative Agent, any Collateral Agent or the Required Lenders determine that they are required by a Requirement of Law to have appraisals prepared in respect of the Real
Property of any Loan Party constituting Collateral, the Borrowers shall provide to the applicable Administrative Agent appraisals that satisfy the applicable requirements of the Real Estate Appraisal
Reform Amendments of FIRREA, as applicable, and are otherwise in form and substance satisfactory to such Administrative Agent and the applicable Collateral Agent. 

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        SECTION 5.13.    Information Regarding Collateral.    

        (a)   Not
effect any change (i) in any Loan Party's legal name or in any trade name used to identify it in the conduct of its business or in the ownership of its
properties, (ii) in the location of any Loan Party's chief executive office, its principal place of business, any office in which it maintains books or records relating to Collateral owned by
it, domicile (within the meaning of the Quebec Civil Code) or any office or facility (other than any Store) at which Collateral owned by it with a value of more than $250,000 is located (including the
establishment of any such new office or facility), (iii) in any Loan Party's identity or organizational structure, (iv) in any Loan Party's Federal Taxpayer Identification Number or
organizational identification number, if any, or (v) in any Loan Party's jurisdiction of organization (in each case, including by merging or amalgamating with or into any other entity,
reorganizing, dissolving, liquidating, reorganizing or organizing in any other jurisdiction), until (A) it shall have given the applicable Collateral Agents and the applicable Administrative
Agent not less than 30 days' prior written notice (in the form of an Officers' Certificate), or such lesser notice period agreed to by such Collateral Agents, of its intention so to do, clearly
describing such change and providing such other information in connection therewith as such Collateral Agents or such Administrative Agent may reasonably request and (B) it shall have taken all
action reasonably satisfactory to such Collateral Agents to maintain the perfection and priority of the security interest of such Collateral Agents for the benefit of the Secured Parties in the
Collateral, if applicable. Each Loan Party agrees to promptly provide the applicable Collateral Agents with certified Organizational Documents reflecting any of the changes described in the preceding
sentence. Each Loan Party also agrees to promptly notify the applicable Collateral Agents of any change in the location of any office in which it maintains books or records relating to Collateral
owned by it or any office or facility at which Collateral is located (including the establishment of any such new office or facility), other than changes in location to a Mortgaged Property or a
leased property subject to a Landlord Access Agreement. 

        (b)   Concurrently
with the delivery of financial statements pursuant to Section 5.01(a), deliver to the applicable
Administrative Agents and applicable Collateral Agents a Perfection Certificate Supplement and a certificate of a Financial Officer and the chief legal officer(s) of the Borrowers certifying that all
UCC financing statements (including fixture filings, as applicable), PPSA financing statements or financing change statements or other appropriate filings, recordings or registrations, including all
refilings, rerecordings and reregistrations, containing a description of the Collateral have been filed of record in each governmental, municipal or other appropriate office in each jurisdiction
necessary to protect and perfect the security interests and Liens under the Security Documents for a period of not less than 18 months after the date of such certificate (except as noted
therein with respect to any continuation statements to be filed within such period). 

        SECTION 5.14.    Post-Closing Collateral Matters.    Execute and deliver the
documents and complete the tasks set forth on Schedule 5.14, in each case within the time limits specified on such schedule. 

        SECTION 5.15.    Affirmative Covenants with Respect to Leases.    With respect to each Lease,
the respective Loan Party shall perform all the obligations imposed upon the landlord under such Lease and enforce all of the tenant's obligations thereunder, except where the failure to so perform or
enforce could not reasonably be expected to result in a Material Adverse Effect. 

        SECTION 5.16.    Interest Rate Agreements.    Within one hundred eighty (180) days
after the Closing Date, US Borrowers shall enter into, and shall maintain, Hedging Agreements providing for interest rate protection for an amount equal to fifty percent (50%) of the outstanding
principal due on the Senior Notes at any time on terms and conditions reasonably satisfactory to US Administrative Agent. 

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ARTICLE VI.    
    
    NEGATIVE COVENANTS    
    

        Each Loan Party warrants, covenants and agrees with each Administrative Agent, each Collateral Agent and each Lender that, so long as this Agreement shall remain
in effect and until the Commitments have been terminated and the principal of and interest on each Loan, all Fees and all other expenses or amounts payable under any Loan Document have been paid in
full and all Letters of Credit have been canceled or have expired or been fully cash collateralized and all amounts drawn thereunder have been reimbursed in full, unless the Required Lenders shall
otherwise consent in writing, no Loan Party will, nor will they cause or permit any Subsidiaries to: 

        SECTION 6.01.    Indebtedness.    Incur, create, assume or permit to exist, directly or
indirectly, any Indebtedness, except 

        (a)   Indebtedness
incurred under this Agreement and the other Loan Documents; 

        (b)   (i) Indebtedness
outstanding on the Closing Date and listed on Schedule 6.01(b), (ii) refinancings
or renewals thereof; provided that (A) any such refinancing Indebtedness is in an aggregate principal amount not greater than the aggregate
principal amount of the Indebtedness being renewed or refinanced, plus the amount of any premiums required to be paid thereon, accrued or capitalized
interest and reasonable fees and expenses associated therewith, (B) such refinancing Indebtedness has a
later or equal final maturity and longer or equal weighted average life than the Indebtedness being renewed or refinanced and (C) the covenants, events of default, subordination and other
provisions thereof (including any guarantees thereof) shall be, in the aggregate, no less favorable to the Lenders than those contained in the Indebtedness being renewed or refinanced and
(iii) the Senior Notes and Senior Note Guarantees (including any notes and guarantees issued in exchange therefor in accordance with the registration rights document entered into in connection
with the issuance of the Senior Notes and Senior Note Guarantees); 

        (c)   Indebtedness
of any Company under Hedging Agreements; 

        (d)   Indebtedness
permitted by Section 6.04(i); 

        (e)   To
the extent recorded in the Companies' intercompany account ledgers, intercompany Indebtedness of the Companies outstanding to the extent permitted by  Section 6.04(d); 

        (f)    Indebtedness
in respect of Purchase Money Obligations and Capital Lease Obligations, and refinancings or renewals thereof (other than refinancings funded with
intercompany advances), in an aggregate amount not to exceed the greater of (i) $15 million or (ii) 1% of Consolidated Net Tangible Assets, in either case, at any time
outstanding; 

        (g)   Indebtedness
incurred by Foreign Subsidiaries and/or Non-Guarantor Subsidiaries in an aggregate amount not to exceed $15 million at any time
outstanding; 

        (h)   Indebtedness
in respect of workers' compensation claims, self-insurance obligations, performance bonds, surety appeal or similar bonds and completion
guarantees provided by a Company in the ordinary course of its business; 

        (i)    Contingent
Obligations of any Loan Party in respect of Indebtedness otherwise permitted under this Section 6.01; 

        (j)    Indebtedness
arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently (except in the case of daylight
overdrafts) drawn against insufficient funds in the ordinary course of business; provided, however, that such Indebtedness is extinguished within five
Business Days of incurrence; 

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        (k)   Indebtedness
of any seller, the business, person or properties acquired in a Permitted Acquisition; 

        (l)    Indebtedness
arising in connection with endorsement of instruments for deposit in the ordinary course of business; 

        (m)  Indebtedness
arising from the Existing Lender Letters of Credit so long as such Existing Lender Letters of Credit are secured by a Letter of Credit or cash collateral
acceptable to Agents. 

        (n)   unsecured
Indebtedness of any Company in an aggregate amount not to exceed $100 million at any time outstanding. 

        SECTION 6.02.    Liens.    Create, incur, assume or permit to exist, directly or indirectly,
any Lien on any property now owned or hereafter acquired by it or on any income or revenues or rights in respect of any thereof, except the following (collectively, the
"Permitted Liens"): 

        (a)   inchoate
Liens for taxes, assessments or governmental charges or levies not yet due and payable or delinquent and Liens for taxes, assessments or governmental charges or
levies, which (i) are being contested in good faith by appropriate proceedings for which adequate reserves have been established in accordance with GAAP, which proceedings (or orders entered in
connection with such proceedings) have the effect of preventing the forfeiture or sale of the property subject to any such Lien, and (ii) in the case of any such charge or claim which has or
may become a Lien against any of the Collateral, such Lien and the contest thereof shall satisfy the Contested Collateral Lien Conditions; 

        (b)   Liens
in respect of property of any Company imposed by Requirements of Law, and do not secure Indebtedness for borrowed money, such as carriers', warehousemen's,
materialmen's, landlords', workmen's, suppliers', repairmen's and mechanics' Liens and other similar Liens, and (i) which do not in the aggregate materially detract from the value of the
property of the Companies, taken as a whole, and do not materially impair the use thereof in the operation of the business of the Companies, taken as a whole, (ii) which, if they secure
obligations that are then due and unpaid, are being contested in good faith by appropriate proceedings for which adequate reserves have been established in accordance
with GAAP, which proceedings (or orders entered in connection with such proceedings) have the effect of preventing the forfeiture or sale of the property subject to any such Lien, and (iii) in
the case of any such Lien which has become a Lien against any of the Collateral, such Lien and the contest thereof shall satisfy the Contested Collateral Lien Conditions; 

        (c)   any
Lien in existence on the Closing Date and set forth on Schedule 6.02(c) and any Lien granted as a replacement
or substitute therefor; provided that any such replacement or substitute Lien (i) except as permitted by  Section 6.01(b) (ii)(A), does not secure
an aggregate amount of Indebtedness, if any, greater than that secured on the Closing Date and
(ii) does not encumber any property other than the property subject thereto on the Closing Date (any such Lien, an "Existing Lien"); 

        (d)   easements,
rights-of-way, restrictions (including zoning restrictions), covenants, licenses, encroachments, protrusions and other similar charges
or encumbrances, and minor title deficiencies on or with respect to any Real Property, in each case whether now or hereafter in existence, not (i) securing Indebtedness,
(ii) individually or in the aggregate materially impairing the value or marketability of such Real Property or (iii) individually or in the aggregate materially interfering with the
ordinary conduct of the business of the Companies at such Real Property; 

        (e)   Liens
arising out of judgments, attachments or awards not resulting in a Default and in respect of which such Company shall in good faith be prosecuting an appeal or
proceedings for review in respect of which there shall be secured a subsisting stay of execution pending such 

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appeal
or proceedings and, in the case of any such Lien which has or may become a Lien against any of the Collateral, such Lien and the contest thereof shall satisfy the Contested Collateral Lien
Conditions; 

        (f)    Liens
(other than any Lien imposed by ERISA) (x) imposed by Requirements of Law or deposits made in connection therewith in the ordinary course of business in
connection with workers' compensation, unemployment insurance, social security and similar legislation, (y) incurred in the ordinary course of business to secure the performance of tenders,
statutory obligations (other than excise taxes), surety, stay, customs and appeal bonds, statutory bonds, bids, leases, government contracts, trade contracts, performance and return of money bonds and
other similar obligations (exclusive of obligations for the payment of borrowed money) or (z) arising by virtue of deposits made in the ordinary course of business to secure liability for
premiums to insurance carriers; provided that (i) with respect to clauses (x), (y) and (z) of this paragraph (f), such Liens
are for amounts not yet due and payable or delinquent or, to the extent such amounts are so due and payable, such amounts are being contested in good faith by appropriate proceedings for which
adequate reserves have been established in accordance with GAAP, which proceedings or orders entered in connection with such proceedings have the effect of preventing the forfeiture or sale of the
property subject to any such Lien, (ii) to the extent such Liens are not imposed by Requirements of Law, such Liens shall in no event encumber any property other than cash and Cash Equivalents,
(iii) in the case of any such Lien against any of the Collateral, such Lien and the contest thereof shall satisfy the Contested Collateral
Lien Conditions and (iv) the aggregate amount of deposits at any time pursuant to clause (y) and clause (z) of this paragraph (f) shall not exceed $250,000 in the
aggregate; 

        (g)   Leases
of the properties of any Company, so long as such Leases are subordinate in all respects to the Liens granted and evidenced by the Security Documents and do not,
individually or in the aggregate, (i) interfere in any material respect with the ordinary conduct of the business of any Company or (ii) materially impair the use (for its intended
purposes) or the value of the property subject thereto; 

        (h)   Liens
arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into by any Company in the ordinary course of
business in accordance with the past practices of such Company; 

        (i)    Liens
securing Indebtedness incurred pursuant to Section 6.01(f);  provided that any such Liens attach only to the property being financed pursuant to such
Indebtedness and do not encumber any other property of any
Company; 

        (j)    bankers'
Liens, rights of setoff and other similar Liens existing solely with respect to cash and Cash Equivalents on deposit in one or more accounts maintained by any
Company, in each case granted in the ordinary course of business in favor of the bank or banks with which such accounts are maintained, securing amounts owing to such bank with respect to cash
management and operating account arrangements, including those involving pooled accounts and netting arrangements; provided that, unless such Liens are
non-consensual and arise by operation of law, in no case shall any such Liens secure (either directly or indirectly) the repayment of any Indebtedness; 

        (k)   Liens
on property of a person existing at the time such person is acquired or merged with or into or consolidated with any Company to the extent permitted hereunder (and
not created in anticipation or contemplation thereof); provided that such Liens do not extend to property not subject to such Liens at the time of
acquisition (other than improvements thereon) and are no more favorable to the lienholders than such existing Lien; 

        (l)    Liens
granted pursuant to the Security Documents to secure the Secured Obligations; 

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        (m)  licenses
of Intellectual Property granted by any Company in the ordinary course of business and not interfering in any material respect with the ordinary conduct of
business of the Companies; 

        (n)   the
filing of UCC financing statements or PPSA financing statements or financing change statements solely as a precautionary measure in connection with operating leases
or consignment of goods; 

        (o)   Liens
securing Indebtedness incurred pursuant to Section 6.01(g);  provided that (i) such Liens do not extend to, or encumber, property which
constitutes Collateral and (ii) such Liens extend only to the
property (or Equity Interests) of the Foreign Subsidiary incurring such Indebtedness; 

        (p)   the
existence of the "equal and ratable" clause in the Senior Note Documents (but not any security interests granted pursuant thereto); and 

        (q)   Liens
with respect to obligations that do not in the aggregate exceed $10 million at any time outstanding; 

        provided, however, that no consensual Liens shall be permitted to exist, directly or indirectly, on any Securities Collateral, other than
Liens granted pursuant to the Security Documents or the Senior Note Documents. Furthermore, notwithstanding anything to the contrary contained herein (including any provision for, reference to, or
acknowledgement of, any Lien or Permitted Lien), nothing herein and no approval by any Administrative Agent, Collateral Agent or Lender of any Lien or Permitted Lien (whether such approval is verbal
or in writing) shall be construed as or deemed to constitute a subordination by any Administrative Agent, Collateral Agent or Lender of any Lien or vary any of the terms or priorities established by
the Intercreditor Agreement or other right or interest held by or for the benefit of any of them in or to any Collateral of any of the Loan Parties or any part thereof in favor of any Lien or
Permitted Lien held by or for the benefit of any other person. 

        SECTION 6.03.    Sale and Leaseback Transactions.    Enter into any Sale and Leaseback
Transaction unless it makes any mandatory prepayment required by Section 2.10. 

        SECTION 6.04.    Investment, Loan and Advances.    Directly or indirectly, lend money or
credit (by way of guarantee or otherwise) or make advances to any person, or purchase or acquire any stock, bonds, notes, debentures or other obligations or securities of, or any other interest in, or
make any capital contribution to, any other person, or purchase or own a futures contract or otherwise become liable for the purchase or sale of currency or other commodities at a future date in the
nature of a futures contract (all of the foregoing, collectively, "Investments"), except that the following shall be permitted: 

        (a)   the
Companies may consummate the Transactions in accordance with the provisions of the Transaction Documents; 

        (b)   Investments
outstanding on the Closing Date and identified on Schedule 6.04(b); 

        (c)   the
Companies may (i) acquire and hold accounts receivables owing to any of them if created or acquired in the ordinary course of business and payable or
dischargeable in accordance with customary terms, (ii) invest in, acquire and hold cash and Cash Equivalents, (iii) endorse negotiable instruments held for collection in the ordinary
course of business or (iv) make lease, utility and other similar deposits in the ordinary course of business; 

        (d)   any
Borrowing Base Guarantor (other than Holdings) may make intercompany loans and advances to any other Borrowing Base Guarantor (other than Holdings) that is a Wholly
Owned Subsidiary; provided, that such loan shall simultaneously be recorded on such Borrowing Base 

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Guarantor's
ledgers as an intercompany loan, evidenced by a promissory notes and shall be pledged (and delivered) by such Borrowing Base Guarantor that is the lender of such intercompany loan as
Collateral pursuant to the Security Agreement, provided further that (i) no Borrowing Base Guarantor may make loans to any Foreign Subsidiary
pursuant to this paragraph (d) unless permitted under Section 6.01(g) and (ii) any loans made pursuant to this paragraph (d)
shall be subordinated to the obligations of the Borrowing Base Guarantors pursuant to an intercompany note in substantially the form of Exhibit P
and may only be repaid in accordance with Section 6.09(b); 

        (e)   The
Borrowers and the Borrowing Base Guarantors may make loans and advances (including payroll, travel and entertainment related advances) in the ordinary course of
business to their respective employees (other than any loans or advances to any director or executive officer (or equivalent thereof) that would be in violation of Section 402 of the
Sarbanes-Oxley Act) so long as the aggregate principal amount thereof at any time outstanding (determined without regard to any write-downs or write-offs of such loans and advances) shall
not exceed $1.0 million; 

        (f)    Any
Borrower may enter into Hedging Agreements to the extent permitted by Section 6.01(c); 

        (g)   The
Borrowers and the Borrowing Base Guarantors may sell or transfer amounts and acquire assets to the extent permitted by  Section 6.06;

        (h)   loans
and advances to directors, employees and officers of the Borrowers and the Subsidiaries for bona fide business
purposes and to purchase Equity Interests of Holdings, in aggregate amount not to exceed $1.0 million at any time outstanding; 

        (i)    Investments
(i) by any Company in any Borrower or any Subsidiary Guarantor, (ii) by a Subsidiary Guarantor in another Subsidiary Guarantor and
(iii) by a Subsidiary that is not a Subsidiary Guarantor in any other Subsidiary that is not a Subsidiary Guarantor; provided that any Investment
in the form of a loan or advance shall be evidenced by the Intercompany Note and, in the case of a loan or advance by a Loan Party, pledged by such Loan Party as Collateral pursuant to the Security
Documents; 

        (j)    Investments
in securities of trade creditors or customers in the ordinary course of business received upon foreclosure or pursuant to any plan of reorganization or
liquidation or similar arrangement upon the bankruptcy or insolvency of such trade creditors or customers; 

        (k)   Investments
made by any Borrower or any Subsidiary as a result of consideration received in connection with an Asset Sale made in compliance with  Section 6.06; 

        (l)    other
Investments in an aggregate amount not to exceed $35 million at any time outstanding; and 

        (m)  An
Investment shall be deemed to be outstanding to the extent not returned in the same form as the original Investment to any Borrower or any Subsidiary Guarantor. 

        SECTION 6.05.    Mergers and Consolidations.    Wind up, liquidate or dissolve its affairs or
enter into any transaction of merger, amalgamation or consolidation (or agree to do any of the foregoing at any future time), except that the following shall be permitted: 

        (a)   the
Transactions as contemplated by the Transaction Documents; 

        (b)   Asset
Sales in compliance with Section 6.06; 

        (c)   acquisitions
in compliance with Section 6.07; 

        (d)   any
Company may merge or consolidate with or into any Borrower or any Subsidiary Guarantor (as long as such Borrower is the surviving person in the case of any merger, 

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amalgamation
or consolidation involving such Borrower and such Subsidiary Guarantor is the surviving person and remains a Wholly Owned Subsidiary of Holdings in any other case);  provided that the Lien on and
security interest in such property granted or to be granted in favor of the applicable Collateral Agents under the
Security Documents shall be maintained or created in accordance with the provisions of Section 5.11 or  Section 5.12, as applicable; and

        (e)   any
Subsidiary may dissolve, liquidate or wind up its affairs at any time; provided that such dissolution, liquidation or
winding up, as applicable, could not reasonably be expected to have a Material Adverse Effect. 

        To
the extent the Required Lenders waive the provisions of this Section 6.05 with respect to the sale of any Collateral, or any
Collateral is sold as permitted by this Section 6.05, such Collateral (unless sold to a Company) shall be sold, subject to the terms of the
Intercreditor Agreement, free and clear of the Liens created by the Security Documents, and the Agents shall take all actions they deem appropriate in order to effect the foregoing. 

        SECTION 6.06.    Asset Sales.    Effect any Asset Sale, or agree to effect any Asset Sale,
except that the following shall be permitted: 

        (a)   disposition
of used, worn out, obsolete or surplus property by any Company in the ordinary course of business and the abandonment or other disposition of Intellectual
Property that is, in the reasonable judgment of the Borrowers, no longer economically practicable to maintain or useful in the conduct of the business of the Companies taken as a whole; 

        (b)   Asset
Sales (other than Sale and Leaseback Transactions); provided that the aggregate consideration received in respect
of all Asset Sales (other than Sale and Leaseback Transactions) pursuant to this clause (b) shall not exceed $100 million in any four consecutive fiscal quarters of the Borrowers; 

        (c)   dispositions
as part of Sale and Leaseback Transactions with respect to any Store, distribution center or corporate office building constructed or owned by US Borrowers
or any of their Subsidiaries; 

        (d)   leases
and subleases of real or personal property in the ordinary course of business and in accordance with the applicable Security Documents; 

        (e)   the
Transactions as contemplated by the Transaction Documents; 

        (f)    mergers,
amalgamations and consolidations in compliance with Section 6.05; and 

        (g)   Investments
in compliance with Section 6.04. 

        To
the extent the Required Lenders waive the provisions of this Section 6.06 with respect to the sale of any Collateral, or any
Collateral is sold as permitted by this Section 6.06, such Collateral (unless sold to a Company) shall be sold free and clear of the Liens
created by the Security Documents, and the Agents shall take all actions they deem appropriate in order to effect the foregoing. 

        SECTION 6.07.    Acquisitions.    Purchase or otherwise acquire (in one or a series of related
transactions) any part of the property (whether tangible or intangible) of any person (or agree to do any of the foregoing at any future time), except that the following shall be permitted: 

        (a)   Capital
Expenditures by the Borrowers and the Subsidiaries; 

        (b)   purchases
and other acquisitions of inventory, materials, equipment and intangible property in the ordinary course of business; 

        (c)   Investments
in compliance with Section 6.04; 

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        (d)   leases
or subleases of real or personal property in the ordinary course of business and in accordance with the applicable Security Documents; 

        (e)   the
Transactions as contemplated by the Transaction Documents; 

        (f)    Permitted
Acquisitions; and 

        (g)   Mergers,
amalgamations and consolidations in compliance with Section 6.05; 

provided that the Lien on and security interest in such property granted or to be granted in favor of the applicable Collateral Agents under the
Security Documents shall be maintained or created in accordance with the provisions of Section 5.11 or  Section 5.12, as applicable. 

        SECTION 6.08.    Dividends.    Authorize, declare or pay, directly or indirectly, any
Dividends with respect to any Company, except that the following shall be permitted: 

        (a)   Dividends
by any Company to any Borrower or any Guarantor that is a Wholly Owned Subsidiary of any Borrower; 

        (b)   so
long as no Default shall then exist or would arise therefrom, payments to Holdings to permit Holdings, and the subsequent use of such payments by Holdings, to
repurchase or redeem Qualified Capital Stock of Holdings held by officers, directors or employees or former officers, directors or employees (or their transferees, estates or beneficiaries under their
estates) of any Company, upon their death, disability, retirement, severance or termination of employment or service; provided that the aggregate cash
consideration paid for all such redemptions and payments shall not exceed $2.5 million, in any fiscal year, (and up to 100% of such $2.5 million not used in any fiscal year may be
carried forward to the next succeeding (but no other) fiscal year); 

        (c)   so
long as no Default shall then exist or would arise therefrom, (A) to the extent actually used by Holdings to pay such taxes, costs and expenses, payments by
any Borrower to or on behalf of Holdings in an amount sufficient to pay franchise taxes and other fees required to maintain the legal existence of Holdings and (B) payments by any Borrower to
or on behalf of Holdings in an amount sufficient to pay out-of-pocket legal, accounting and filing costs and other expenses in the nature of overhead in the ordinary course of
business of Holdings, in the case of clauses (A) and (B) in an aggregate amount not to exceed $5 million in any fiscal year; 

        (d)   Permitted
Tax Distributions, so long as Holdings uses such distributions to pay its taxes; and 

        (e)   payments
to Holdings by any Company to permit distributions by Holdings, and the subsequent use of such payments by Holdings to make distributions, in an aggregate
amount not exceeding the sum of 50% of Consolidated Net Income for the period from October 2, 2005 to the end of the most recent fiscal quarter for which financial statements are available plus
100% of the Net Cash Proceeds of Equity Issuances after the Closing Date (to the extent not used for Permitted Acquisitions), so long as
at the time of such distribution (i) Administrative Borrower has given five (5) Business Days written notice to Administrative Agents of its intention to make such distribution, which
notice shall specify the amount of such distribution, (ii) no Triggering Event has occurred and is continuing and (iii) Excess Availability, after giving effect to such distribution,
shall be greater than $90 million. 

        SECTION 6.09.    Transactions with Affiliates.    Enter into, directly or indirectly, any
transaction or series of related transactions, whether or not in the ordinary course of business, with any Affiliate of any Company (other than between or among one or both Borrowers and one or more
Subsidiary Guarantors), other than on terms and conditions at least as favorable to such Company as would 

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reasonably
be obtained by such Company at that time in a comparable arm's-length transaction with a person other than an Affiliate, except that the following shall be permitted: 

        (a)   Dividends
permitted by Section 6.08; 

        (b)   Investments
permitted by Section 6.04(h) and  Section 6.04(i); 

        (c)   reasonable
and customary director, officer and employee compensation (including bonuses) and other benefits (including retirement, health, stock option and other benefit
plans) and indemnification arrangements, which in the case of director and executive officer compensation is approved by the Board of Directors of Borrower; 

        (d)   transactions
with customers, clients, suppliers, joint venture partners or purchasers or sellers of goods and services, in each case in the ordinary course of business
and otherwise not prohibited by the Loan Documents; 

        (e)   so
long as no Default exists, (i) the payment of regular management fees to Sponsor in the amounts and at the times specified in the Management Services
Agreement, as in effect on the Closing Date or as thereafter amended or replaced in any manner, that, taken as a whole, is not more adverse to the interests of the Lenders in any material respect than
such agreement as it was in effect on the Closing Date; provided that payments under this clause (e)(i) shall in any event not exceed
$2.0 million per fiscal year plus out of pocket expenses and (ii) the payment of the "Transaction Fee" as defined in the Management Services Agreement; 

        (f)    the
existence of, and the performance by any Loan Party of its obligations under the terms of, any limited liability company, limited partnership or other Organizational
Document or securityholders
agreement (including any registration rights agreement or purchase agreement related thereto) to which it is a party on the Closing Date and which has been disclosed to the Lenders as in effect on the
Closing Date, and similar agreements that it may enter into thereafter; provided, however, that the existence of, or the performance by any Loan Party
of obligations under, any amendment to any such existing agreement or any such similar agreement entered into after the Closing Date shall only be permitted by this  Section 6.09(f) to the extent
not more adverse to the interest of the Lenders in any material respect, when taken as a whole, than any of such
documents and agreements as in effect on the Closing Date; 

        (g)   sales
of Qualified Capital Stock of Holdings to Affiliates of the Borrowers not otherwise prohibited by the Loan Documents and the granting of registration and other
customary rights in connection therewith; 

        (h)   any
transaction with an Affiliate where the only consideration paid by any Loan Party is Qualified Capital Stock of Holdings; and 

        (i)    the
Transactions as contemplated by the Transaction Documents. 

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        SECTION 6.10.    Financial Covenants.    

        (a)    Maximum Total Leverage Ratio.    At any time when the Excess Availability does not exceed $75,000,000, permit
the Total Leverage Ratio during the applicable Test Period set forth in the table below, to exceed the ratio set forth opposite such period in the table below: 

	Test Period Ending on the Following Dates
 
	 	Leverage Ratio

	March 31, 2006	 	5.05 to 1.00
	June 30, 2006	 	5.50 to 1.00
	September 30, 2006	 	5.10 to 1.00
	December 31, 2006	 	4.80 to 1.00
	March 31, 2007	 	4.75 to 1.00
	June 30, 2007	 	4.75 to 1.00
	September 30, 2007	 	4.50 to 1.00
	December 31, 2007	 	4.50 to 1.00
	March 31, 2008	 	4.50 to 1.00
	June 30, 2008	 	4.50 to 1.00
	September 30, 2008	 	4.25 to 1.00
	December 31, 2008	 	4.00 to 1.00
	March 31, 2009	 	4.00 to 1.00
	June 30, 2009	 	4.00 to 1.00
	September 30, 2009	 	3.75 to 1.00
	December 31, 2009	 	3.50 to 1.00
	March 31, 2010	 	3.50 to 1.00
	June 30, 2010	 	3.50 to 1.00
	September 30, 2010	 	3.25 to 1.00
	December 31, 2010 and thereafter	 	3.00 to 1.00

        (b)    Minimum Fixed Charge Coverage Ratio.    At any time when the Excess Availability does not exceed $75,000,000,
permit the Consolidated Fixed Charge Coverage Ratio during the applicable Test Period set forth in the table below, to be less than the ratio set forth opposite such period in the table below: 

	Test Period Ending on the Following Dates
 
	 	Fixed Charge

Coverage Ratio

	March 31, 2006 through and including December 31, 2007	 	1.0 to 1.0
	March 31, 2008 and thereafter	 	1.1 to 1.0

        SECTION 6.11.    Prepayments of Other Indebtedness; Modifications of Organizational Documents and Other Documents,
etc.    Directly or indirectly: 

        (a)   make
(or give any notice in respect thereof) any voluntary or optional payment or prepayment on or redemption or acquisition for value of, or any prepayment or
redemption as a result of any asset sale, change of control or similar event of, any Indebtedness outstanding under the Senior Notes unless (i) the Administrative Borrower shall have given the
Administrative Agents five (5) Business Day's prior written notice of its intention to make such payment or prepayment, which notice shall specify the amount of such payment or prepayment,
(ii) no Triggering Event has occurred and is continuing and (ii) Excess Availability, after giving effect to such payment or prepayment, shall be greater than $90 million; 

        (b)   amend
or modify, or permit the amendment or modification of, any provision of any Transaction Document in any manner that is adverse in any material respect to the
interests of the Lenders; or 

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        (c)   terminate,
amend, modify (including electing to treat any Pledged Interests (as defined in the Security Agreement) as a "security" under Section 8-103
of the UCC or under the PPSA) or change any of its Organizational Documents (including by the filing or modification of any certificate of designation) or any agreement to which it is a party with
respect to its Equity Interests (including any stockholders' agreement), or enter into any new agreement with respect to its Equity Interests, other than any such amendments, modifications or changes
or such new agreements which are not adverse in any material respect to the interests of the Lenders; provided that Holdings may issue such Equity
Interests, so long as such issuance is not prohibited by Section 6.13 or any other provision of this Agreement, and may amend its Organizational
Documents to authorize any such Equity Interests. 

        SECTION 6.12.    Limitation on Certain Restrictions on Subsidiaries.    Directly or
indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any Subsidiary to (a) pay dividends or make any other distributions
on its capital stock or any other interest or participation in its profits owned by the Borrowers or any Subsidiary, or pay any Indebtedness owed to the Borrowers or a Subsidiary, (b) make
loans or advances to the Borrowers or any Subsidiary or (c) transfer any of its properties to the Borrowers or any Subsidiary, except for such encumbrances or restrictions existing under or by
reason of (i) applicable Requirements of Law; (ii) this Agreement and the other Loan Documents; (iii) the Senior Note Documents, as in effect on the Closing Date;
(iv) customary provisions restricting subletting or assignment of any lease governing a leasehold interest of a Subsidiary; (v) customary provisions restricting assignment of any
agreement entered into by a Subsidiary in the ordinary course of business; (vi) any holder of a Lien permitted by Section 6.02 restricting
the transfer of the property subject thereto; (vii) customary restrictions and conditions contained in any agreement relating to the sale of any property permitted under  Section 6.06 pending
the consummation of such sale; (viii) any agreement in effect at the time such Subsidiary becomes a Subsidiary of the
Borrowers, so long as such agreement was not entered into in connection with or in contemplation of such person becoming a Subsidiary of the Borrowers; (ix) without affecting the Loan Parties'
obligations under Section 5.11, customary provisions in partnership agreements, limited liability company organizational governance documents,
asset sale and stock sale agreements and other similar agreements entered into in the ordinary course of business that restrict the transfer of ownership interests in such partnership, limited
liability company or similar person; (x) restrictions on cash or other deposits or net worth imposed by suppliers or landlords under contracts entered into in the ordinary course of business;
(xi) any instrument governing Indebtedness assumed in connection with any Permitted Acquisition, which encumbrance or restriction is not applicable to any person, or the properties or assets of
any person, other than the person or the properties or assets of the person so acquired; (xii) in the case of any joint venture which is not a Loan Party in respect of any matters referred to
in clauses (b) and (c) above, restrictions in such person's Organizational Documents or pursuant to any joint venture agreement or stockholders agreements solely to the extent of the
Equity Interests of or property held in the subject joint venture or other entity; or (xiii) any encumbrances or restrictions imposed by any amendments or refinancings that are otherwise
permitted by the Loan Documents of the contracts, instruments or obligations referred to in clauses (iii) or (viii) above; provided that
such amendments or refinancings are no more materially restrictive with respect to such encumbrances and restrictions than those prior to such amendment or refinancing. 

        SECTION 6.13.    Limitation on Issuance of Capital Stock.    

        (a)   With
respect to Holdings, issue any Equity Interest that is not Qualified Capital Stock. 

        (b)   With
respect to the Borrowers or any Subsidiary, issue any Equity Interest (including by way of sales of treasury stock) or any options or warrants to purchase, or
securities convertible into, any Equity Interest, except (i) for stock splits, stock dividends and additional issuances of Equity Interests which do not decrease the aggregate percentage
ownership of the Borrowers and their Subsidiaries in any class of the Equity Interest of any other Subsidiary; (ii) Subsidiaries of the 

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Borrowers
formed after the Closing Date in accordance with Section 6.14 may issue Equity Interests to Borrower or the Subsidiary of the Borrowers
which is to own such Equity Interests; and (iii) the Borrowers may issue common stock that is Qualified Capital Stock to Holdings. All Equity Interests issued in accordance with this  Section 6.13(b) shall, to the extent required by Section 5.11 and  Section 5.12 or any Security Agreement, be delivered to the applicable Collateral Agent
for pledge pursuant to the applicable Security Agreement.
 

        SECTION 6.14.    Limitation on Creation of Subsidiaries.    Establish, create or acquire any
additional Subsidiaries without the prior written consent of the Required Lenders; provided that, without such consent, the Borrowers may
(i) establish or create one or more Wholly Owned Subsidiaries of the Borrowers, (ii) establish, create or acquire one or more Subsidiaries in connection with an Investment made pursuant
to Section 6.04(i), or (iii) acquire one or more Subsidiaries in connection with a Permitted Acquisition, so long as, in each case,  Section 5.11(b) shall be complied with. 

        SECTION 6.15.    Business.    

        (a)   With
respect to Holdings, engage in any business activities or have any properties or liabilities, other than (i) its ownership of the Equity Interests of the
Borrowers, (ii) obligations under the Loan Documents and the Senior Note Documents and (iii) activities and properties incidental to the foregoing clauses (i) and (ii). 

        (b)   With
respect to the Borrowers and the Subsidiaries, engage (directly or indirectly) in any business other than those businesses in which the Borrowers and its
Subsidiaries are engaged on the Closing Date as described in the Confidential Information Memorandum (or, in the good faith judgment of the Board of Directors, which are substantially related thereto
or are reasonable extensions thereof). 

        SECTION 6.16.    Limitation on Accounting Changes.    Make or permit any change in accounting
policies or reporting practices, without the consent of the Required Lenders, which consent shall not be unreasonably withheld, except changes that are required by GAAP. 

        SECTION 6.17.    Fiscal Year.    Change its fiscal year-end. 

        SECTION 6.18.    No Further Negative Pledge.    Enter into any agreement, instrument, deed or
lease which prohibits or limits the ability of any Loan Party to create, incur, assume or suffer to exist any Lien upon any of their respective properties or revenues, whether now owned or hereafter
acquired, or which requires the grant of any security for an obligation if security is granted for another obligation, except the following: (1) this Agreement and the other Loan Documents;
(2) covenants in documents creating Liens permitted by Section 6.02 prohibiting further Liens on the properties encumbered thereby;
(3) the Senior Note Documents, as in effect on the Closing Date; (4) any other agreement that does not restrict in any manner (directly or indirectly) Liens created pursuant to the Loan
Documents on any Collateral securing the Secured Obligations and does not require the direct or indirect granting of any Lien securing any Indebtedness or other obligation by virtue of the granting of
Liens on or pledge of property of any Loan Party to secure the Secured Obligations; and (5) any prohibition or limitation that (a) exists pursuant to applicable Requirements of Law,
(b) consists of customary restrictions and conditions contained in any agreement relating to the sale of any property permitted under  Section 6.06 pending the consummation of such sale,
(c) restricts subletting or assignment of any lease governing a leasehold interest of
the Borrowers or a Subsidiary, (d) exists in any agreement in effect at the time such Subsidiary becomes a Subsidiary of the Borrowers, so long as such agreement was not entered into in
contemplation of such person becoming a Subsidiary or (e) is imposed by any amendments or refinancings that are otherwise permitted by the Loan Documents of the contracts, instruments or
obligations referred to in clause (3) or (5)(d); provided that such 

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amendments
and refinancings are no more materially restrictive with respect to such prohibitions and limitations than those prior to such amendment or refinancing. 

        SECTION 6.19.    Anti-Terrorism Law; Anti-Money Laundering.    

        (a)   Directly
or indirectly, (i) knowingly conduct any business or engage in making or receiving any contribution of funds, goods or services to or for the benefit of
any person described in Section 3.22, (ii) knowingly deal in, or otherwise engage in any transaction relating to, any property or
interests in property blocked pursuant to the Executive Order or any other Anti-Terrorism Law, or (iii) knowingly engage in or conspire to engage in any transaction that evades or
avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law (and the Loan Parties shall deliver to the Lenders
any certification or other evidence requested from time to time by any Lender in its reasonable discretion, confirming the Loan Parties' compliance with this  Section 6.19). 

        (b)   Cause
or permit any of the funds of such Loan Party that are used to repay the Loans to be derived from any unlawful activity with the result that the making of the
Loans would be in violation of any Requirement of Law. 

        SECTION 6.20.    Embargoed Person.    Cause or permit (a) any of the funds or
properties of the Loan Parties that are used to repay the Loans to constitute property of, or be beneficially owned directly or indirectly by, any person subject to sanctions or trade restrictions
under United States law ("Embargoed Person" or "Embargoed Persons") that is identified on (1) the
"List of Specially Designated Nationals and Blocked Persons" maintained by OFAC and/or on any other similar list maintained by OFAC pursuant to any authorizing statute including, but not limited to,
the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1  et seq., and any
Executive Order or Requirement of Law promulgated thereunder or that is named as a "listed person" or "listed entity" or any other
similar lists made under any Anti-Terrorism Laws, with the result that the investment in the Loan Parties (whether directly or indirectly) is prohibited by a Requirement of Law, or the
Loans made by the Lenders would be in violation of a Requirement of Law, or (2) the Executive Order, any related enabling legislation or any other similar Executive Orders or (b) any
Embargoed Person to have any direct or indirect interest, of any nature whatsoever in the Loan Parties, with the result that the investment in the Loan Parties (whether directly or indirectly) is
prohibited by a Requirement of Law or the Loans are in violation of a Requirement of Law. 

 
 

ARTICLE VII.    
    
    GUARANTEE    
    

        SECTION 7.01.    The Guarantee.    The Guarantors (other than the Canadian Guarantors which
have contemporaneously herewith executed and delivered the Canadian Guaranty) and each US Borrower hereby jointly and severally guarantee, as a primary obligor and not as a surety to each Secured
Party and their respective successors and assigns, the prompt payment in full when due (whether at stated maturity, by required prepayment, declaration, demand, by acceleration or otherwise) of the
principal of and interest (including any interest, fees, costs or charges that would accrue but for the provisions of the Title 11 of the United States Code after any bankruptcy or insolvency petition
under Title 11 of the United States Code or the provisions of any Insolvency Law) on the Loans made by the Lenders to, and the Notes held by each Lender of, the Borrowers, and all other Secured
Obligations from time to time owing to the Secured Parties by any Loan Party under any Loan Document or any Hedging Agreement entered into with a counterparty that is a Secured Party, in each case
strictly in accordance with the terms thereof (such obligations being herein collectively called the "Guaranteed Obligations"). The Guarantors (other
than the Canadian Guarantors) and each US Borrower hereby jointly and severally agree that if the Borrowers or other Guarantor(s) shall fail to 

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pay
in full when due (whether at stated maturity, by acceleration or otherwise) any of the Guaranteed Obligations, such Guarantors and each US Borrower will promptly pay the same in cash, without any
demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Guaranteed Obligations, the same will be promptly paid in full when due (whether at
extended maturity, by acceleration or otherwise) in accordance with the terms of such extension or renewal. 

        SECTION 7.02.    Obligations Unconditional.    The obligations of the Guarantors and each US
Borrower under Section 7.01 shall constitute a guaranty of payment and to the fullest extent permitted by applicable Requirements of Law, are
absolute, irrevocable and unconditional, joint and several, irrespective of the value, genuineness, validity, regularity or enforceability of the Guaranteed Obligations of the Borrowers under this
Agreement, the Notes, if any, or any other agreement or instrument referred to herein or therein, or any substitution, release or exchange of any other guarantee of or security for any of the
Guaranteed Obligations, and, irrespective of any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a surety, Guarantor or US Borrower (except
for payment in full). Without limiting the generality of the foregoing, it is agreed that the occurrence of any one or more of the following shall not alter or impair the liability of such Guarantors
and each US Borrower hereunder which shall remain absolute, irrevocable and unconditional under any and all circumstances as described above: 

        (i)    at
any time or from time to time, without notice to the Guarantors or US Borrowers, the time for any performance of or compliance with any of the Guaranteed Obligations
shall be extended, or such performance or compliance shall be waived; 

        (ii)   any
of the acts mentioned in any of the provisions of this Agreement or the Notes, if any, or any other agreement or instrument referred to herein or therein shall be
done or omitted; 

        (iii)  the
maturity of any of the Guaranteed Obligations shall be accelerated, or any of the Guaranteed Obligations shall be amended in any respect, or any right under the
Loan Documents or any other agreement or instrument referred to herein or therein shall be amended or waived in any respect or any other guarantee of any of the Guaranteed Obligations or any security
therefor shall be released or exchanged in whole or in part or otherwise dealt with; 

        (iv)  any
Lien or security interest granted to, or in favor of, Issuing Bank or any Lender or Agent as security for any of the Guaranteed Obligations shall fail to be
perfected; or 

        (v)   the
release of any other Guarantor or US Borrower pursuant to Section 7.09. 

        The
Guarantors (other than the Canadian Guarantors) and each US Borrower hereby expressly waive diligence, presentment, demand of payment, protest and all notices whatsoever, and any
requirement that any Secured Party exhaust any right, power or remedy or proceed against the Borrowers under this Agreement or the Notes, if any, or any other agreement or instrument referred to
herein or therein, or against any other person under any other guarantee of, or security for, any of the Guaranteed Obligations. The Guarantors (other than the Canadian Guarantors) and each US
Borrower waive any and all notice of the creation, renewal, extension, waiver, termination or accrual of any of the Guaranteed Obligations and notice of or proof of reliance by any Secured Party upon
this Guarantee or acceptance of this Guarantee, and the Guaranteed Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred in reliance upon this
Guarantee, and all dealings between the Borrowers and the Secured Parties shall likewise be conclusively presumed to have been had or consummated in reliance upon this Guarantee. This Guarantee shall
be construed as a continuing, absolute, irrevocable and unconditional guarantee of payment without regard to any right of offset with respect to the Guaranteed Obligations at any time or from time to
time held by 

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Secured
Parties, and the obligations and liabilities of the Guarantors hereunder shall not be conditioned or contingent upon the pursuit by the Secured Parties or any other person at any time of any
right or remedy against the Borrowers or against any other person which may be or become liable in respect of all or any part of the Guaranteed Obligations or against any collateral security or
guarantee therefor or right of offset with respect thereto. This Guarantee shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon the Guarantors
and the successors and assigns thereof, and shall inure to the benefit of the Lenders, and their respective successors and assigns, notwithstanding that from time to time during the term of this
Agreement there may be no Guaranteed Obligations outstanding. 

        SECTION 7.03.    Reinstatement.    The obligations of the Guarantors under this  Article VII
shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of the Borrowers or other Loan
Party in respect of the Guaranteed Obligations is rescinded or must be otherwise restored by any holder of any of the Guaranteed Obligations, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise. The Guarantors jointly and severally agree that they will indemnify each Secured Party on demand for all reasonable costs and expenses (including
reasonable fees of counsel) incurred by such Secured Party in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging
that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law, other than any costs or expenses resulting from the bad faith or
willful misconduct of such Secured Party. 

        SECTION 7.04.    Subrogation; Subordination.    Each Guarantor hereby agrees that until the
indefeasible payment and satisfaction in full in cash of all Guaranteed Obligations and the expiration and termination of the Commitments of the Lenders under this Agreement it shall waive any claim
and shall not exercise any right or remedy, direct or indirect, arising by reason of any performance by it of its guarantee in Section 7.01,
whether by subrogation or otherwise, against the Borrowers or any other Guarantor of any of the Guaranteed Obligations or any security for any of the Guaranteed Obligations. Any Indebtedness of any
Loan Party permitted pursuant to Section 6.01(d) shall be subordinated to such Loan Party's Secured Obligations in the manner set forth in the
Intercompany Note evidencing such Indebtedness. 

        SECTION 7.05.    Remedies.    Subject to the terms of the Intercreditor Agreement, the
Guarantors jointly and severally agree that, as between the Guarantors and the Lenders, the obligations of the Borrowers under this Agreement and the Notes, if any, may be declared to be forthwith due
and payable as provided in Section 8.01 (and shall be deemed to have become automatically due and payable in the circumstances provided in  Section 8.01) for purposes of Section 7.01, notwithstanding any stay, injunction or other
prohibition preventing such declaration (or such obligations from becoming automatically due and payable) as against the Borrowers and that, in the event of such declaration (or such obligations being
deemed to have become automatically due and payable), such obligations (whether or not due and payable by the Borrowers) shall forthwith become due and payable by the Guarantors for purposes of  Section 7.01. 

        SECTION 7.06.    Instrument for the Payment of Money.    Each Guarantor hereby acknowledges
that the guarantee in this Article VII constitutes an instrument for the payment of money, and consents and agrees that any Lender or Agent, at
its sole option, in the event of a dispute by such Guarantor in the payment of any moneys due hereunder, shall have the right to bring a motion-action under New York CPLR Section 3213. 

        SECTION 7.07.    Continuing Guarantee.    The guarantee in this  Article VII is a continuing
guarantee of payment, and shall apply to all Guaranteed Obligations whenever arising. 

        SECTION 7.08.    General Limitation on Guarantee Obligations.    In any action or proceeding
involving any state corporate limited partnership or limited liability company law, or any applicable 

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state,
provincial, federal or foreign bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if the obligations of any Guarantor under  Section 7.01 would
otherwise be held or determined to be void, voidable, invalid or unenforceable, or subordinated to the claims of any other
creditors, on account of the amount of its liability under Section 7.01, then, notwithstanding any other provision to the contrary, the amount of
such liability shall, without any further action by such Guarantor, any Loan Party or any other person, be automatically limited and reduced to the highest amount that is valid and enforceable and not
subordinated to the claims of other creditors as determined in such action or proceeding. 

        SECTION 7.09.    Release of Guarantors.    If, in compliance with the terms and provisions of
the Loan Documents, all or substantially all of the Equity Interests or property of any Guarantor are sold or otherwise transferred (a "Transferred
Guarantor") to a person or persons, none of which is a Borrower or a Subsidiary, such Transferred Guarantor shall, upon the consummation of such sale or transfer, be released
from its obligations under this Agreement (including under Section 11.03 hereof) and its obligations to pledge and grant any Collateral owned by
it pursuant to any Security Document and, in the case of a sale of all or substantially all of the Equity Interests of the Transferred Guarantor, the pledge of such Equity Interests to the applicable
Collateral Agents pursuant to the Security Agreements shall be released, and the applicable Collateral Agents shall take such actions as are necessary to effect each release described in this  Section 7.09 in accordance with the relevant provisions of the Security Documents, including the return of any certificates or securities in the
possession of such Collateral Agents; provided that such Guarantor is also released from its obligations under the Senior Note Documents, on the same
terms. 

 
 

ARTICLE VIII.    
    
    EVENTS OF DEFAULT    
    

        SECTION 8.01.    Events of Default.    Upon the occurrence and during the continuance of the
following events ("Events of Default"): 

        (a)   default
shall be made in the payment of any principal of any Loan or any Reimbursement Obligation when and as the same shall become due and payable, whether at the due
date thereof or at
a date fixed for prepayment (whether voluntary or mandatory) thereof or by acceleration thereof or otherwise; 

        (b)   default
shall be made in the payment of any interest on any Loan or any Fee or any other amount (other than an amount referred to in paragraph (a) above) due
under any Loan Document, when and as the same shall become due and payable, and such default shall continue unremedied for a period of three Business Days; 

        (c)   any
representation or warranty made or deemed made in or in connection with any Loan Document or the borrowings or issuances of Letters of Credit hereunder, or any
representation, warranty, statement or information contained in any report, certificate, financial statement or other instrument furnished in connection with or pursuant to any Loan Document, shall
prove to have been false or misleading in any material respect when so made, deemed made or furnished; 

        (d)   default
shall be made in the due observance or performance by any Company of any covenant, condition or agreement contained in  Section 5.02, Section 5.03(a) or  Section 5.08 or in Article VI;
 

        (e)   default
shall be made in the due observance or performance by any Company of any covenant, condition or agreement contained in any Loan Document (other than those
specified in paragraphs (a), (b) or (d) immediately above) and such default shall continue unremedied or shall not be waived for a period of 30 days after written notice thereof
from the Administrative Agents or any Lender to the Borrowers; 

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        (f)    any
Company shall (i) fail to pay any principal or interest, regardless of amount, due in respect of any Indebtedness (other than the Obligations), when and as
the same shall become due and payable beyond any applicable grace period, or (ii) fail to observe or perform any other term, covenant, condition or agreement contained in any agreement or
instrument evidencing or governing any such Indebtedness if the effect of any failure referred to in this clause (ii) is to cause, or to permit the holder or holders of such Indebtedness or a
trustee or other representative on its or their behalf (with or without the giving of notice, the lapse of time or both) to cause, such Indebtedness to become due prior to its stated maturity or
become subject to a mandatory offer purchase by the obligor; provided that it shall not constitute an Event of Default pursuant to this
paragraph (f) unless the aggregate amount of all such Indebtedness referred to in clauses (i) and (ii) exceeds $5 million at any one time
(provided that, in the case of Hedging Obligations, the amount counted for this purpose shall be the amount payable by all Companies if such Hedging
Obligations were terminated at such time); 

        (g)   an
involuntary proceeding shall be commenced (including the filing of any notice of intention in respect thereof) or an involuntary petition shall be filed in a court of
competent jurisdiction seeking (i) relief in respect of any Company or of a substantial part of the property of any Company, under Title 11 of the U.S. Code, as now constituted or hereafter
amended, or any other Insolvency Law, federal, state, provincial or foreign bankruptcy, insolvency, receivership or similar law; (ii) the appointment of a receiver, interim receiver, receiver
and manager, liquidator, trustee, custodian, sequestrator, conservator or similar official for any Company or for a substantial part of the property of any Company; or (iii) the
winding-up or liquidation of any Company; and such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing
shall be entered; 

        (h)   any
Company shall (i) voluntarily commence any proceeding or file any petition seeking relief under Title 11 of the United States Code, as now constituted or
hereafter amended, or any other Insolvency Law, federal, state, provincial or foreign bankruptcy, insolvency, receivership, incorporation law in any jurisdiction or similar law; (ii) consent to
the institution of, or fail to contest in a timely and appropriate manner, any proceeding or the filing of any petition described in clause (g) above; (iii) apply for or consent to the
appointment of a receiver, interim receiver, receiver and manager, liquidator, trustee, custodian, sequestrator, conservator or similar official for any Company or for a substantial part of the
property of any Company; (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding; (v) make a general assignment for the benefit of
creditors; (vi) become unable, admit in writing its inability or fail generally to pay its debts as they become due; (vii) take any action for the purpose of effecting any of the
foregoing; or (viii) wind up or liquidate; 

        (i)    one
or more judgments, orders or decrees for the payment of money in an aggregate amount in excess of $5 million shall be rendered against any Company or any
combination thereof and the same shall remain undischarged, unvacated or unbonded for a period of 30 consecutive days during which execution shall not be effectively stayed, or any action shall be
legally taken by a judgment creditor to levy upon properties of any Company to enforce any such judgment; 

        (j)    one
or more ERISA Events or noncompliance with respect to Foreign Plans shall have occurred that, in the reasonable opinion of the Required Lenders, when taken together
with all other such ERISA Events and noncompliance with respect to Foreign Plans, could reasonably be expected to result in a Material Adverse Effect or in the imposition of a Lien on any properties
of a Company; 

        (k)   any
security interest and Lien purported to be created by any Security Document shall cease to be in full force and effect, or shall cease to give the applicable
Collateral Agents for the benefit of the applicable Secured Parties, the Liens, rights, powers and privileges purported to be 

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created
and granted under such Security Document (including a perfected first priority security interest in and Lien on all of the Collateral thereunder (except as otherwise expressly provided in this
Agreement or such Security Document)) in favor of such Collateral Agents, or shall be asserted by the Borrowers or any other Loan Party not to be a valid, perfected, first priority (except as
otherwise expressly provided in this Agreement or such Security Document) security interest in or Lien on the Collateral covered thereby; 

        (l)    any
Loan Document or any material provisions thereof shall at any time and for any reason be declared by a court of competent jurisdiction to be null and void, or a
proceeding shall be commenced by any Loan Party or any other person, or by any Governmental Authority, seeking to establish the invalidity or unenforceability thereof (exclusive of questions of
interpretation of any provision thereof), or any Loan Party shall repudiate or deny any portion of its liability or obligation for the Obligations; 

        (m)  there
shall have occurred a Change in Control; 

        (n)   any
Company shall be prohibited or otherwise restrained from conducting the business theretofore conducted by it in any manner that has or could reasonably be expected
to result in a Material Adverse Effect by virtue of any determination, ruling, decision, decree or order of any court or Governmental Authority of competent jurisdiction; 

then,
and in every such event (other than an event with respect to Holdings or any Borrower described in paragraph (g) or (h) above), and at any time thereafter during the continuance of
such event, the Administrative Agents may, and at the request of the Required Lenders shall, by notice to the Borrowers, take either or both of the following actions, at the same or different times:
(i) terminate forthwith the Commitments and (ii) declare the Loans and Reimbursement Obligations then outstanding to be forthwith due and payable in whole or in part, whereupon the
principal of the Loans and Reimbursement Obligations so declared to be due and payable, together with accrued interest thereon and any unpaid accrued Fees and all other Obligations of the Borrowers
accrued hereunder and under any other Loan Document, shall become forthwith due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly
waived by the Borrowers and the Guarantors, anything contained herein or in any other Loan Document to the contrary notwithstanding; and in any event, with respect to Holdings or any Borrower
described in paragraph (g) or (h) above, the Commitments shall automatically terminate and the principal of the Loans and Reimbursement Obligations then outstanding, together with
accrued interest thereon and any unpaid accrued Fees and all other Obligations of the Borrowers accrued hereunder and under any other Loan Document, shall automatically become due and payable, without
presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Borrowers and the Guarantors, anything contained herein or in any other Loan Document to
the contrary notwithstanding. 

        SECTION 8.02.    Rescission.    If at any time after termination of the Commitments or
acceleration of the maturity of the Loans, the Borrowers shall pay all arrears of interest and all payments on account of principal of the Loans and Reimbursement Obligations owing by it that shall
have become due otherwise than by acceleration (with interest on principal and, to the extent permitted by law, on overdue interest, at the rates specified herein) and all Defaults (other than
non-payment of principal of and accrued interest on the Loans due and payable solely by virtue of acceleration) shall be remedied or waived pursuant  Section 11.02, then upon the written consent of
the Required Lenders and written notice to Administrative Borrower, the termination of the
Commitments or the acceleration and their consequences may be rescinded and annulled; but such action shall not affect any subsequent Default or impair any right or remedy consequent thereon. The
provisions of the preceding sentence are intended merely to bind the Lenders and the Issuing Bank to a decision that may be made at the election of the Required Lenders, and such provisions are not
intended to benefit the Borrowers and do not give the Borrowers the right to require the Lenders to rescind or annul any acceleration hereunder, even if the conditions set forth herein are met. 

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        SECTION 8.03.    Application of Proceeds.    Subject to the terms of the Intercreditor
Agreement, the proceeds received by the applicable Collateral Agents in respect of any sale of, collection from or other realization upon all or any part of the Collateral pursuant to the exercise by
such Collateral Agents of their remedies shall be applied, in full or in part, together with any other sums then held by such Collateral Agents pursuant to this Agreement, promptly by such Collateral
Agents as follows: 

        (a)   First, to the payment of all reasonable costs and expenses, fees, commissions and taxes of such sale, collection or other
realization including compensation to such Collateral Agents and their agents and counsel, and all expenses, liabilities and advances made or incurred by such Collateral Agents in connection therewith
and all amounts for which such Collateral Agents are entitled to indemnification pursuant to the provisions of any Loan Document, together with interest on each such amount at the highest rate then in
effect under this Agreement from and after the date such amount is due, owing or unpaid until paid in full; 

        (b)   Second, to the payment of all other reasonable costs and expenses of such sale, collection or other realization including
compensation to the other Secured Parties and their agents and counsel and all costs, liabilities and advances made or incurred by the other Secured Parties in connection therewith, together with
interest on each such amount at the highest rate then in effect under this Agreement from and after the date such amount is due, owing or unpaid until paid in full; 

        (c)   Third, without duplication of amounts applied pursuant to clauses (a) and (b) above, to the indefeasible
payment in full in cash, pro rata, of interest and other amounts constituting Obligations (other than principal, Reimbursement Obligations and
obligations of the type described in clause (d) in the definition of "Obligations") and any fees, premiums and scheduled periodic payments due under Hedging Agreements constituting Secured
Obligations and any interest accrued thereon, in each case equally and ratably in accordance with the respective amounts thereof then due and owing; 

        (d)   Fourth, to the indefeasible payment in full in cash, pro rata, of
principal amount of the Obligations (including Reimbursement Obligations, but excluding obligations of the type described in clause (d) in the definition of "Obligations") and any breakage,
termination or other payments under Hedging Agreements constituting Secured Obligations and any interest accrued thereon; 

        (e)   Fifth, to the indefeasible payment in full in cash, pro rata, of
obligations of the type described in clause (d) in the definition of "Obligations"; 

        (f)    Sixth, the balance, if any, to the person lawfully entitled thereto (including the applicable Loan Party or its
successors or assigns) or as a court of competent jurisdiction may direct. 

        In
the event that any such proceeds are insufficient to pay in full the items described in clauses (a) through (d) of this  Section 8.02, the Loan Parties shall remain liable, jointly and
severally, for any deficiency. Each Loan Party acknowledges the relative rights,
priorities and agreements of the Senior Note Secured Parties, as set forth in the Intercreditor Agreement and this Agreement, including as set forth in this  Section 8.03. 

 
 

ARTICLE IX.    
    
    COLLATERAL ACCOUNT; APPLICATION OF COLLATERAL PROCEEDS    
    

        Each Loan Party warrants, covenants and agrees with each Lender that so long as this Agreement shall remain in effect and until the Commitments have been
terminated and the principal of and interest on each Loan, all Fees and all other expenses or amounts payable under any Loan Document shall have been paid in full and all Letters of Credit have been
canceled or have expired or been fully 

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cash
collateralized and all amounts drawn thereunder have been reimbursed in full, unless Collateral Agents and Administrative Agents or the Required Lenders shall otherwise consent in writing: 

        SECTION 9.01.    Collateral Accounts.    

        (a)   The
Borrowers and each Borrowing Base Guarantor shall notify the Collateral Agents promptly of: (i) any material delay in the performance by the Borrowers or any
Borrowing Base Guarantor of any of their material obligations to any Account Debtor or the assertion of any material claims, offsets, defenses or counterclaims by any Account Debtor, or any material
disputes with Account Debtors, or any settlement, adjustment or compromise thereof, (ii) all material adverse information known to any Loan Party relating to the financial condition of any
Account Debtor and (iii) any event or circumstance which, to any Loan Party's knowledge, would result in any Account no longer constituting an Eligible Account. The Borrowers and each Borrowing
Base Guarantor hereby agree not to grant to any Account Debtor any credit, discount, allowance or extension, or to enter into any agreement for any of the foregoing, without the applicable Collateral
Agents consent, except in the ordinary course of business in accordance with practices and policies previously disclosed in writing to the Collateral Agents. So long as no Event of Default exists or
has occurred and is continuing, the Borrowers and each Borrowing Base Guarantor may settle, adjust or compromise any claim, offset, counterclaim or
dispute with any Account Debtor. At any time that an Event of Default exists or has occurred and is continuing, the applicable Collateral Agents shall, at their option, have the exclusive right to
settle, adjust or compromise any claim, offset, counterclaim or dispute with Account Debtors of any Loan Party or grant any credits, discounts or allowances. 

        (b)   With
respect to each Account: (i) the amounts shown on any invoice delivered to Collateral Agents or schedule thereof delivered to Collateral Agents shall be true
and complete in all material respects, (ii) no payments shall be made thereon except payments immediately delivered to Collateral Agents pursuant to the terms of this Agreement or any
applicable Security Document (to the extent so required), (iii) there shall be no setoffs, deductions, contras, defenses, counterclaims or disputes existing or asserted with respect thereto
except as reported to Collateral Agents and promptly reflected in the reporting of the Borrowing Base, in accordance with the terms of this Agreement, and (iv) none of the transactions giving
rise thereto will violate any applicable laws or regulations, all documentation relating thereto will be legally sufficient under such laws and regulations and all such documentation will be legally
enforceable in accordance with its terms. 

        (c)   Collateral
Agents shall have the right at any time or times, in Collateral Agents' name or in the name of a nominee of a Collateral Agent, to verify the validity, amount
or any other matter relating to any Account or other Collateral, by mail, telephone, e-mail, facsimile transmission or otherwise. To facilitate the exercise of the right described in the
immediately preceding sentence, the Borrowers hereby agrees to provide Collateral Agents upon request the name and address of each Account Debtor of the Borrowers and Borrowing Base Guarantors. 

        SECTION 9.02.    Accounts; Cash Management.    

        The
Borrowers and each Guarantor shall maintain a cash management system which is acceptable to the Administrative Agents and the applicable Collateral Agents (the
"Cash Management System"), which shall operate as follows: 

        (a)   All
funds held by Borrowers or any other Loan Party (other than funds being collected pursuant to the provisions stated below) shall be deposited in one or more bank
accounts or securities investment accounts, in form and substance reasonably satisfactory to applicable Collateral Agents subject to the terms of the Security Agreement and applicable Control
Agreements. 

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        (b)   The
Borrowers shall establish and maintain, at their sole expense, and shall cause each Guarantor to establish and maintain, at its sole expense blocked accounts or
lockboxes and related deposit accounts, which, on the Closing Date, shall consist of accounts and related lockboxes maintained by the financial
institutions as described on Schedule 9.02 hereto (in each case, "Blocked Accounts"), as the
applicable Collateral Agent may specify, with such banks as are acceptable to the applicable Collateral Agents into which the Borrowers and Guarantors shall promptly deposit and direct their
respective Account Debtors to directly remit all payments on Accounts and all payments constituting proceeds of Inventory or other Collateral (other than proceeds of a Casualty Event or an Asset Sale
that do not require a permanent repayment under Loan Documents) in the identical form in which such payments are made, whether by cash, check or other manner and shall be identified and segregated
from all other funds of the Loan Parties. The Borrowers and Guarantors shall deliver, or cause to be delivered, to the applicable Collateral Agents a Control Agreement duly authorized, executed and
delivered by each bank where a Blocked Account for the benefit of the Borrowers or any Guarantor is maintained, and by each bank where any other deposit account is from time to time maintained. The
Borrowers shall further execute and deliver, and shall cause each Guarantor to execute and deliver, such agreements and documents as the applicable Collateral Agents may require in connection with
such Blocked Accounts and such Control Agreements. The Borrowers and Guarantors shall not establish any deposit accounts after the Closing Date, unless the Borrowers or Guarantor (as applicable) have
complied in full with the provisions of this Section 9.01 with respect to such deposit accounts. Borrowers agree that from and after the delivery
of an Activation Notice (as defined below) all payments made to such Blocked Accounts or other funds received and collected by the applicable Collateral Agents or any Lender, whether in respect of the
Accounts, as proceeds of Inventory or other Collateral or otherwise shall be treated as payments to the applicable Collateral Agents and Lenders in respect of the Obligations and therefor shall
constitute the property of such Collateral Agents and Lenders to the extent of the then outstanding Obligations. 

        (c)   With
respect to the Blocked Accounts of US Borrowers and such Guarantors (other than Guarantors organized under the laws of Canada) as the applicable Collateral Agents
shall determine in their sole discretion, the applicable bank maintaining such Blocked Accounts shall agree to forward daily all amounts in each Blocked Account to one of the Blocked Accounts
designated as a concentration account in the name of US Borrowers (the "US Concentration Account") at the bank that shall be designated as the
Concentration Account bank for US Borrowers (the "US Concentration Account Bank"), which, on the Closing Date, shall be account #8900338261 maintained
by The Bank of New York (or other financial institution acceptable to the applicable Collateral Agents); provided, however, that amounts in the Blocked Accounts with numbers 2000028308229,
2000028308245, 2000028308261, 2000028308274, 2000028308258 and 2000028308232 maintained at Wachovia Bank, National Association (the "US Tax Bank") will
be combined into account #2000028308216 (the "Master Tax Account") at Wachovia Bank, National Association. The US Concentration Account Bank and US Tax
Bank shall agree, from and after the receipt of a notice (an "Activation Notice") from the applicable US Collateral Agent (which Activation Notice may
or, upon instruction of the Required Lenders, shall be given by such Collateral Agent at any time from and after the occurrence of a Trigger Event which is continuing at the time of such notice)
pursuant to the applicable Control Agreement, to forward daily all amounts in the US Concentration Account to the account designated as collection account (the "US Collection
Account") which shall be under the exclusive dominion and control of the US Administrative Agent. 

        (d)   With
respect to the Blocked Accounts of Canadian Borrower and such Guarantors organized under the laws of Canada as the applicable Collateral Agents shall determine in
their sole discretion, the applicable bank maintaining such Blocked Accounts shall agree to forward daily all amounts in each Blocked Account to one of the Blocked Accounts designated as a 

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concentration
accounts in the name of Canadian Borrower (the "Canadian Concentration Accounts" and together with the US Concentration Account and Master
Tax Account, the "Concentration Accounts") at the bank that shall be designated as the Concentration Account bank for Canadian Borrower (the
"Canadian Concentration Account Bank" and together with the US Concentration Account Bank, the "Concentration Account
Banks"), which, on the Closing Date, shall be account nos. 1496-666 and 4688-785 maintained by The Bank of Montreal (or other financial institution
acceptable to the applicable Collateral Agents). The Canadian Concentration Account Bank shall agree, from and after the receipt of a notice an Activation Notice (which Activation Notice may or, upon
instruction of the Required Lenders, shall be given by such Collateral Agent at any time from and after the occurrence of a Trigger Event which is continuing at the time of such notice) pursuant to
the applicable Control Agreement, to forward daily all amounts in the Canadian Concentration Account to the account designated as collection account (the "Canadian Collection
Account" and together with the US Collection Account, the "Collection Accounts") which shall be under the exclusive dominion and
control of the Canadian Administrative Agent. 

        (e)   With
respect to the Blocked Accounts of such Guarantors as the respective Collateral Agents shall determine in their sole discretion, the applicable bank maintaining
such Blocked Accounts shall agree, from and after the receipt of an Activation Notice (which Activation Notice may or, upon instruction of the Required Lenders, shall be given by the applicable
Collateral Agents at any time from and after a Trigger Event), to forward all amounts in each Blocked Account to the US Collection Account and/or Canadian Collection Account, as applicable, and to
commence the process of daily sweeps from such Blocked Account into the applicable Collection Accounts. 

        (f)    Any
provision of this Section 9.02 to the contrary notwithstanding, (A) Loan Parties may maintain payroll
accounts and trust accounts that are not a part of the Cash Management System provided that no Loan Party shall accumulate or maintain cash in such
accounts as of any date of determination in excess of checks outstanding against such accounts as of that date and amounts necessary to meet minimum balance requirements and (B) Loan Parties
may maintain local cash accounts that are not a part of the Cash Management System which individually do not at any time contain funds in excess of $500,000 and, together with all other such local
cash accounts, do not exceed $5 million. 

        (g)   (i) The
US Administrative Agent shall apply all funds received in the US Collection Account on a daily basis to the repayment of the Obligations of the US
Borrowers and its US Subsidiaries to either, at its option, (a) outstanding US Swingline Loans or (b) in accordance with any instructions received under  Section 2.10(g). From and after
the delivery of an Activation Notice, unless Administrative Agents and Collateral Agents determine to release
such funds to Borrowers in accordance with the following sentence, US Administrative Agent shall apply all such funds in the US Collection Account on a daily basis to the repayment of
(a) first, Fees and reimbursable expenses of the US Administrative Agent and the US Collateral Agent then due and payable;
(b) second, to interest then due and payable on all Loans (other than Canadian Revolving Loans),
(c) third, Overadvances (other than such Overadvances comprised of Canadian Revolving Loans),
(d) fourth, the Swingline Loans, (e) fifth, ABR Revolving Loans (other than Canadian
Revolving Loans), (f) sixth, Eurodollar Revolving Loans (other than Canadian Revolving Loans), together with all accrued and unpaid interest
thereon (provided, however, payments on Eurodollar Revolving Loans with respect to which the application of such payment would result in the payment of the principal prior to the last day of the
relevant Interest Period shall be transferred to the Cash Collateral Account to be applied to the Eurodollar Revolving Loans (other than Canadian Revolving Loans) on the last day of the relevant
Interest Period of such Eurodollar Revolving Loan or to the Obligations of the US Borrowers and its Domestic Subsidiaries as they 

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come
due (whether at stated maturity, by acceleration or otherwise)). Notwithstanding the foregoing sentence, after payment in full has been made of the amounts required under subsections (a)-(c)
above, upon US Borrower's request and as long as no Default has occurred and is continuing and all other conditions precedent to a Borrowing have been satisfied, any additional funds deposited in the
US Collection Account or Cash Collateral Account shall be released to US Borrower. In addition, if consented to by the Administrative Agents, the Collateral Agents and the Required Lenders, such funds
in the US Collection Account or Cash Collateral Account may be released to Borrowers. Notwithstanding the above, if the applicable Administrative Agent has declared the Loans and/or Reimbursement
Obligations then outstanding to be forthwith due and payable in whole or in part pursuant to Section 8.01, the US Administrative Agent shall
apply all funds received in the Collection Account in accordance with Section 8.03. 

        (ii)   The
Canadian Administrative Agent shall apply all funds received in the Canadian Collection Account on a daily basis to the repayment of the Canadian Obligations to
either, at its option, (a) outstanding Canadian Swingline Loans or (b) in accordance with any instructions received under  Section 2.10(g). From and after the delivery of an Activation
Notice, unless Administrative Agents and Collateral Agents determine to release
such funds to Borrowers in accordance with the following sentence, Canadian Administrative Agent shall apply all such funds in the Canadian Collection Account on a daily basis to the repayment of
(a) first, Fees and reimbursable expenses of the Canadian Administrative Agent and the Canadian Collateral Agent then due and payable;
(b) second, to interest then due and payable on all Canadian Revolving Loans, (c) third,
Overadvances comprised of Canadian Revolving Loans, (d) fourth, the Swingline Loans, (e) fifth pro
rata, Canadian Prime Rate Loans, and (f) sixth, Bankers' Acceptances in accordance with  Section 2.03(xi). Notwithstanding
the foregoing sentence, after payment in full has been made of the amounts required under subsections (a)-(c)
above, upon Canadian Borrower's request and as long as no Default has occurred and is continuing and all other conditions precedent to a Borrowing have been satisfied, any additional funds deposited
in the Canadian Collection Account or Cash Collateral Account shall be released to Canadian Borrower. In addition, if consented to by the Administrative Agents, the Collateral Agents and the Required
Lenders, such funds in the Canadian Collection Account or Cash Collateral Account may be released to Borrowers. Notwithstanding the above, if the applicable Administrative Agent has declared the
Loans and/or Reimbursement Obligations then outstanding to be forthwith due and payable in whole or in part pursuant to Section 8.01, the
Collateral Agents shall apply all funds received in the Collection Account in accordance with Section 8.03. 

        (h)   The
Borrowers and their directors, employees, agents and other Affiliates and Borrowing Base Guarantors shall promptly deposit or cause the same to be deposited, any
monies, checks, notes, drafts or any other payment relating to and/or proceeds of Accounts, Inventory or other Collateral which come into their possession or under their control in the applicable
Blocked Accounts, or remit the same or cause the same to be remitted, in kind, to the applicable Collateral Agents. In no event shall the same be commingled with Borrowers' own funds. US Borrowers
agrees to reimburse US Collateral Agents and Canadian Borrower agrees to reimburse Canadian Collateral Agents, as applicable, on demand for any amounts owed or paid to any bank at which a Blocked
Account is established or any other bank or person involved in the transfer of funds to or from the Blocked Accounts arising out of such Collateral Agents' payments to or indemnification of such bank
or person. 

        SECTION 9.03.    Inventory.    With respect to the Inventory: (a) the Borrowers and
Borrowing Base Guarantors shall at all times maintain records of Inventory reasonably satisfactory to Collateral Agents, keeping correct and accurate records itemizing and describing the kind, type,
quality and quantity of Inventory, the cost therefor and daily withdrawals therefrom and additions thereto; (b) any of the 

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Administrative
Agents' and Collateral Agents' officers, employees or agents shall have the right, at any time or times, in the name of such Administrative Agent or Collateral Agent, as applicable, any
designee of the Administrative Agents, Collateral Agents or the Borrowers, to verify the validity, amount or any other matter relating to Accounts or Inventory by mail, telephone, electronic
communication, personal inspection or otherwise and to conduct field audits of the financial affairs and Collateral of the Loan Parties, and the Borrowers shall cooperate fully with the Administrative
Agents and Collateral Agents in an effort to facilitate and promptly conclude any such verification process; (c) the Loan Parties shall cooperate fully with the Collateral Agents and their
agents during all Collateral field audits and Inventory Appraisals which shall be at the expense of the Borrowers and which shall be conducted once in any twelve (12) month period, or,
following either (i) a time period when Excess Availability does not exceed $90,000,000 or (ii) a Trigger Event, more frequently at any Collateral Agent's reasonable request;
(d) neither the Borrowers nor any Borrowing Base Guarantor shall sell Inventory to any customer on approval, or any other basis which entitles the customer to return (except for the right of
customers for Inventory which is defective or non-conforming) or may obligate any Loan Party to repurchase such Inventory; and (e) Borrowers and Borrowing Base Guarantor shall keep
the Inventory in good and marketable condition. 

        SECTION 9.04.    Borrowing Base-Related Reports.    The Borrowers shall deliver or
cause to be delivered (at the expense of the Borrowers) to the Collateral Agents and the Administrative Agents the following: 

        (a)   (i) in
no event less frequently than 30 days after the end of the month ending February 28, 2006 and for each month thereafter through and including
the month ending July 31, 2006 and (ii) in no event less frequently than 20 days after the end of the month ending August 30, 2006 and for each month thereafter, a
Borrowing Base Certificate from the Borrowers accompanied by such supporting detail and documentation as shall be requested by the applicable Collateral Agent in its reasonable credit judgment,
provided, that if at any time the Average Excess Availability is less than $90 million and so long as Borrowers do not maintain Average Excess Availability in excess of $90 million for a
period of three (3) consecutive fiscal months, Borrowers shall deliver additional weekly roll-forward of Accounts and Inventory referenced in paragraph (b) below within five
(5) Business Days after the end of each calendar week, and, if requested by the applicable Collateral Agents, a Borrowing Base Certificate (prepared weekly to reflect results satisfactory to
such Collateral Agents) within five (5) Business Days after the end of each calendar week, or more frequent Borrowing Base Certificates reflecting shorter periods as reasonably requested by
such Collateral Agents. Each Borrowing Base Certificate shall reflect all information through the end of the appropriate period for Borrowers and each Borrowing Base Guarantor; 

        (b)   upon
request by the Collateral Agents, and in no event less frequently than 30 days after the end of (i) each month, a monthly trial balance showing
Accounts outstanding aged from statement date as follows: 1 to 30 days, 31 to 60 days, 61 to 90 days and 91 days or more, accompanied by a comparison to the prior month's
trial balance and such supporting detail and documentation as shall be requested by the Collateral Agents in their reasonable credit judgment and (ii) each month, a summary of Inventory by
location and type accompanied by such supporting detail and documentation as shall be requested by the Collateral Agents in their reasonable credit judgment (in each case, together with a copy of all
or any part of such delivery requested by any Lender in writing after the Closing Date); 

        (c)   on
the date any Borrowing Base Certificate is delivered pursuant to Section 9.04(a) or at such more frequent
intervals as the Collateral Agents may request from time to time (together with a copy of all or any part of such delivery requested by any Lender in writing after the Closing Date), (i) a copy
of the ledger registering the Borrowing Base Guarantor Intercompany Loan Amount as of the date of the Borrowing Base Certificate and (ii) a collateral report with respect 

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to
the Loan Parties, including all additions and reductions (cash and non-cash) with respect to intercompany loan accounts of the Borrowers and Borrowing Base Guarantors, accompanied by
such supporting detail and documentation as shall be requested by the Collateral Agents in their reasonable credit judgment; 

        (d)   at
the time of delivery of each of the financial statements delivered pursuant to Section 5.01(a) and  (b), a reconciliation of the Accounts trial balance
and quarter-end Inventory reports of the Borrowers and Borrowing Base Guarantors to the
general ledger of such Loan Party, in each case, accompanied by such supporting detail and documentation as shall be requested by the Collateral Agents in their reasonable credit judgment; 

        (e)   a
list of any applications for the registration of any patent, trademark or copyright with the United States Patent and Trademark Office, the United States Copyright
Office or any similar office or agency which any Loan Party has filed in the prior fiscal quarter; and 

        (f)    such
other reports, statements and reconciliations with respect to the Borrowing Base, Canadian Borrowing Base or Collateral of any or all Loan Parties as the Collateral
Agents shall from time to time request in its reasonable credit judgment. 

        The
delivery of each certificate and report or any other information delivered pursuant to this Section 9.04 shall constitute a
representation and warranty by the Borrowers that the statements and information contained therein are true and correct in all material respects on and as of such date. 

        SECTION 9.05.    Rescission of Activation Notice.    Notwithstanding any of the provisions of  Section 9.02, after Collateral Agents have delivered an Activation Notice and upon delivery of a certificate (provided, such certificate may not
be delivered more than once in any 360 day period) by a Financial Officer of the Borrowers to the Collateral Agents certifying that (i) the Average Excess Availability has exceeded
$90 million for the previous fiscal quarter and (ii) no Default has occurred or is continuing, the Collateral Agents shall rescind the Activation Notice by written notice, as necessary,
to the applicable Concentration Account Banks and any such other banks to which Collateral Agents had issued such Activation Notice and following such rescission the Cash Management System shall be
operated as if no such Activation Notice had been given. 

 
 

ARTICLE X.    
    
    THE ADMINISTRATIVE AGENTS AND THE COLLATERAL AGENTS    
    

        SECTION 10.01.    Appointment and Authority.    Each of the Lenders and the Issuing Bank
hereby irrevocably appoints UBS AG, Stamford Branch, to act on its behalf as the US Administrative Agent and as US Collateral Agent hereunder and under the other Loan Documents and authorizes such
Agent to take such actions on its behalf and to exercise such powers as are delegated to such Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental
thereto. Each of the Lenders and the Issuing Bank hereby irrevocably appoints UBS AG Canada Branch, to act on its behalf as a Canadian Collateral Agent hereunder and under the other Loan Documents and
authorizes such Agent to take such actions on its behalf and to exercise such powers as are delegated to such Agent by the terms hereof or thereof, together with such actions and powers as are
reasonably incidental thereto. Each of the Lenders and the Issuing Bank hereby irrevocably appoints The Bank of New York, to act on its behalf as the Senior Note Collateral Agent hereunder and under
the other Loan Documents and authorizes such Agent to take such actions on its behalf and to exercise such powers as are delegated to such Agent by the terms hereof or thereof, together with such
actions and powers as are reasonably incidental thereto. Each of the Lenders and the Issuing Bank hereby irrevocably appoints Wachovia Bank, National Association to act on its behalf as a US
Collateral Agent hereunder and under the other Loan Documents and authorizes such Agent to take such actions on its behalf and to exercise such powers as are delegated to such Agent by the terms
hereof or thereof, 

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together
with such actions and powers as are reasonably incidental thereto. Each of the Lenders and the Issuing Bank hereby irrevocably appoints Wachovia Capital Finance Corporation (Canada) to act on
its behalf as Canadian Administrative Agent and as a Canadian Collateral Agent hereunder and under the other Loan Documents and authorizes such Agent to take such actions on its behalf and to exercise
such powers as are delegated to such Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for the
benefit of the Administrative Agents, the Collateral Agents, the Lenders and the Issuing Bank, and neither Borrowers nor any other Loan Party shall have rights as a third party beneficiary of any of
such provisions. 

        SECTION 10.02.    Rights as a Lender.    Each person serving as an Agent hereunder shall have
the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not an Agent and the term "Lender" or "Lenders" shall, unless otherwise expressly
indicated or unless the context otherwise requires, include each person serving as an Agent hereunder in its individual capacity. Such person and its Affiliates may accept deposits from, lend money
to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrowers or any Subsidiary or other Affiliate thereof as if such person
were not an Agent hereunder and without any duty to account therefor to the Lenders. 

        SECTION 10.03.    Exculpatory Provisions.    

        (a)   No
Agent shall have any duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing,
no Agent: 

        (i)    shall
be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing; 

        (ii)   shall
have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by
the other Loan Documents that such Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for
herein or in the other Loan Documents); provided that such Agent shall not be required to take any action that, in its judgment or the judgment of its
counsel, may expose such Agent to liability or that is contrary to any Loan Document or applicable Requirements of Law; and 

        (iii)  shall,
except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to the Borrowers or any of its Affiliates that is communicated to or obtained by the person serving as such Agent or any of its Affiliates in any capacity. 

        (b)   No
Agent shall be liable for any action taken or not taken by it (x) with the consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary, or as such Agent shall believe in good faith shall be necessary, under the circumstances as provided in  Section 11.02) or (y) in the absence of
its own gross negligence or willful misconduct. No Agent shall be deemed to have knowledge of any
Default unless and until notice describing such Default is given to such Agent by the Borrowers, a Lender or the Issuing Bank. 

        (c)   No
Agent shall be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this
Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this 

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Agreement,
any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in  Article IV or elsewhere herein, other than to confirm receipt of
items expressly required to be delivered to such Agent. Without limiting the
generality of the foregoing, the use of the term "agent" in this Agreement with reference to the Administrative Agents or the Collateral Agents is not intended to connote any fiduciary or other
implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term us used merely as a matter of market custom and is intended to create or reflect only an
administrative relationship between independent contracting parties. 

        (d)   Canadian
Administrative Agent represents and warrants to the Canadian Borrower that on the Closing Date and throughout the term of this Agreement: 

        (i)    it
is not a "non-resident" within the meaning of the ITA, or 

        (ii)   it
is an "Authorized Foreign Bank" within the meaning of the Bank Act for purposes of the ITA and is entering into this
agreement in the ordinary course of its trade and business that is its "Canadian banking business" for purposes of the ITA. 

        SECTION 10.04.    Reliance by Agent.    Each Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website
posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper person. Each Agent also may rely upon any statement made to it orally
or by telephone and believed by it to have been made by the proper person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making
of a Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the Issuing Bank, the Administrative Agents and the Collateral Agents may
presume that such condition is satisfactory to such Lender or the Issuing Bank unless such Administrative Agent or such Collateral Agent shall have received notice to the contrary from such Lender or
the Issuing Bank prior to the making of such Loan or the issuance of such Letter of Credit. Each Agent may consult with legal counsel (who may be counsel for the Borrowers), independent accountants
and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 

        SECTION 10.05.    Delegation of Duties.    Each Agent may perform any and all of its duties
and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by such Agent. Each Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to
any such sub-agent and to the Related Parties of each Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the
credit facilities provided for herein as well as activities as Agent. 

        SECTION 10.06.    Resignation of Agent.    Each Agent may at any time give notice of its
resignation to the Lenders, the Issuing Bank and the Borrowers. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrowers, to
appoint a successor, which shall be a bank with an office in the United States or in the case of a successor to the Canadian Administrative Agent, a person which (i) (A) is not a
"non-resident" within the meaning of the ITA, or (B) is an "Authorized Foreign Bank" within the meaning of the Bank Act for purposes
of the ITA and which becomes a party hereunder in the ordinary course of its trade and business that is its "Canadian banking business" for purposes of the ITA and (ii) which has provided a
representation and warranty substantially in the form of that contained in Section 10.03(d), or an Affiliate of any such bank with an office in
the United States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Agent gives notice of its
resignation, then the retiring Agent may on behalf of the Lenders and the Issuing Bank, appoint a 

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successor
Agent meeting the qualifications set forth above provided that if the Agent shall notify Borrower and the Lenders that no qualifying person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice and (1) the retiring Agent shall be discharged from its duties and obligations hereunder and under the other Loan
Documents (except that in the case of any collateral security held by such Agent on behalf of the Lenders or the Issuing Bank under any of the Loan Documents, the retiring Agent shall continue to hold
such collateral security as nominee until such time as a successor Collateral Agent is appointed) and (2) all payments, communications and determinations provided to be made by, to or through
an Agent shall instead be made by or to each Lender and the Issuing Bank directly, until such time as the Required Lenders appoint a successor Agent as provided for above in this paragraph. Upon the
acceptance of a successor's appointment as Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Agent,
and the retiring Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this paragraph).
The fees payable by the Borrowers to a successor Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrowers and such successor. After the retiring
Agent's resignation hereunder and under the other Loan Documents, the provisions of this Article X and  Section 11.03 shall continue in effect for
the benefit of such retiring Agent, its sub-agents and their respective Related Parties in
respect of any actions taken or omitted to be taken by any of them while the retiring Agent was acting as Agent. 

        SECTION 10.07.    Non-Reliance on Agent and Other Lenders.    Each Lender and the
Issuing Bank acknowledges that it has, independently and without reliance upon any Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement. Each Lender and the Issuing Bank also acknowledges that it will, independently and without reliance upon any Agent or any other Lender and
based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other
Loan Document or any related agreement or any document furnished hereunder or thereunder. 

        SECTION 10.08.    No Other Duties, etc.    Anything herein to the contrary notwithstanding,
none of the Bookrunners, Arrangers, Syndication Agents, Documentation Agents listed on the cover page hereof
shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as an Administrative Agent, a Collateral Agent, a
Lender or the Issuing Bank hereunder. 

        SECTION 10.09.    Indemnification.    The Lenders severally agree to indemnify each Agent in
its capacity as such (to the extent not reimbursed by the Borrowers or the Guarantors and without limiting the obligation of the Borrowers or the Guarantors to do so), ratably according to their
respective outstanding Loans and Commitments in effect on the date on which indemnification is sought under this Section 10.09 (or, if
indemnification is sought after the date upon which all Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance with such outstanding Loans and Commitments
as in effect immediately prior to such date), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever that may at any time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted against such Agent in any way relating to or arising out of, the Commitments,
this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by
such Agent under or in connection with any of the foregoing; provided, that no Lender shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from such Agent's 

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gross
negligence or willful misconduct. The agreements in this Section 10.09 shall survive the payment of the Loans and all other amounts payable
hereunder. 

        SECTION 10.10.    Overadvances.    The Administrative Agents shall not, without the prior
consent of Lenders, make (and shall prohibit the Issuing Banks and Swingline Lenders, as applicable, from making) any Revolving Loans or provide any Letters of Credit to the Borrowers on behalf of
Lenders intentionally and with actual knowledge that such Revolving Loans, Swingline Loans, or Letters of Credit would either (i) cause the aggregate amount of the Revolving Exposure to exceed
the Borrowing Base or (ii) be made when one or more of the other conditions precedent to the making of Loans hereunder cannot be satisfied except, that, Administrative Agents may make (or cause
to be made) such additional Revolving Loans or Swingline Loans or provide such additional Letters of Credit on behalf of Lenders (each an "Overadvance"
and collectively, the "Overadvances"), intentionally and with actual knowledge that such Loans or Letters of Credit will be made without the
satisfaction of the foregoing conditions precedent, if the Administrative Agents deem it necessary or advisable in their discretion to do so, provided,
that: (a) the total principal amount of the Overadvances to the Borrowers which Administrative Agents may make or provide (or cause to be made or provided) after obtaining such actual knowledge
that the conditions precedent have not been satisfied, shall not exceed the amount equal to $30 million outstanding at any time and shall not cause the Revolving Exposure to exceed the
Revolving Commitments of all of the Lenders or the Revolving Exposure of a Lender to exceed such Lender's Revolving Commitment, (b) without the consent of all Lenders, (i) no Overadvance
shall be outstanding for more than sixty (60) days and (ii) after all Overadvances have been repaid, Administrative Agents shall not make any additional Overadvance unless sixty
(60) days or more have elapsed since the last date on which any Overadvance was outstanding and (c) Administrative Agents shall be entitled to recover such funds, on demand from the
Borrowers together with interest thereon for each day from the date such payment was due until the date such amount is paid to such
Administrative Agent at the interest rate provided for in Section 2.06(e). Each Lender shall be obligated to pay such Administrative Agent the
amount of its Pro Rata Percentage of any such Overadvance provided, that such Administrative Agent is acting in accordance with the terms of this  Section 10.10 and provided further, if a CAM Exchange shall have occurred, then the Pro Rata
Percentage of any such Overadvance shall be calculated by reference to the CAM Percentage. 

        SECTION 10.11.    Concerning the Collateral and the Related Loan Documents.    Each Lender
authorizes and directs Agents to enter into this Agreement and the other Loan Documents. Each Lender agrees that any action taken by Agents or Required Lenders in accordance with the terms of this
Agreement or the other Loan Documents and the exercise by Agents or Required Lenders of their respective powers set forth therein or herein, together with such other powers that are reasonably
incidental thereto, shall be binding upon all of the Lenders. 

        SECTION 10.12.    Field Audit, Examination Reports and Other Reports.    By signing this
Agreement, each Lender: 

        (a)   is
deemed to have requested that Agents furnish such Lender, promptly after it becomes available, a copy of each field audit or examination report and report with
respect to the Borrowing Base prepared or received by Agents (each field audit or examination report and report with respect to the Borrowing Base being referred to herein as a "Report" and
collectively, "Reports"), appraisals with respect to the Collateral and financial statements with respect to Borrowers and its Subsidiaries received by Agents; 

        (b)   expressly
agrees and acknowledges that Agents (i) does not make any representation or warranty as to the accuracy of any Report, appraisal or financial statement
or (ii) shall not be liable for any information contained in any Report, appraisal or financial statement; 

        (c)   expressly
agrees and acknowledges that the Reports are not comprehensive audits or examinations, that Agents or any other party performing any audit or examination will
inspect only 

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specific
information regarding Borrowers and Guarantors and will rely significantly upon Borrowers' and Guarantors' books and records, as well as on representations of Borrowers' and Guarantors'
personnel; and 

        (d)   agrees
to keep all Reports confidential and strictly for its internal use in accordance with the terms of Section 11.12, and not to distribute or use any Report
in any other manner. 

 
 

ARTICLE XI.    
    
    MISCELLANEOUS    
    

        SECTION 11.01.    Notices.    

        (a)    Generally.    Except in the case of notices and other communications expressly permitted to be given by
telephone (and except as provided in paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopier as follows: 

        (i)    if
to any Loan Party, to US Borrowers at: 

6
Brighton Road

Clifton, New Jersey 07012

Attention: David Dick

Telephone: (973) 614-7054

Telecopier No.: (973) 249-4330

Email: ddick@int.com 

        (ii)   if
to UBS AG, Stamford Branch, as US Administrative Agent, US Collateral Agent or the Issuing Bank, to it at: 

UBS
AG, Stamford Branch

677 Washington Boulevard

Stamford, Connecticut 06901

Attention: Doris Mesa

Telecopier No.: (203) 719-4176

Email: doris.mesa@ubs.com 

with
a copy to each of the other Agents

as set forth herein and, except with respect to

communications under Sections 5.01 and 9.04, to: 

Latham &
Watkins, LLP

233 S. Wacker Drive, Suite 5800

Chicago, IL 60606

Attention: Donald L. Schwartz

Telecopy No.: (312) 993-9767 

        (iii)  if
to UBS AG Canada Branch, as Canadian Collateral Agent, to it at: 

UBS
AG Canada Branch

161 Bay Street

Suite 4100, BCE Place

Toronto, Ontario M5J2S1

Attention: Amy Fung

Phone No.: (416) 350-2261

Email: amy-c.fung@ubs.com 

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with
a copy to the other Agents as set

forth herein and, except with respect to communications

under Sections 5.01 and 9.04, to: 

Latham &
Watkins, LLP

233 S. Wacker Drive, Suite 5800

Chicago, IL 60606

Attention: Donald L. Schwartz

Telecopy No.: (312) 993-9767 

        (iv)  if
to Wachovia Bank, National Association, as US Collateral Agent, to it at: 

1133
Avenue of the Americas

New York, New York 10036

Attention: Portfolio Manager

Telecopier No.: (212) 445-4283 

with
a copy to the other Agents as set

forth herein 

        (v)   if
to Wachovia Bank, National Association, as Issuing Bank, to it at 

Wachovia
Bank, National Association

1133 Avenue of the Americas

New York, New York 10036

Attention: Portfolio Manager

Telecopier No.: (212) 545-4283 

with
a copy to the other Agents as set

forth herein 

        (vi)  if
to Wachovia Capital Finance Corporation (Canada), as Canadian Collateral Agent or Canadian Administrative Agent, to it at: 

Wachovia
Capital Finance Corporation (Canada)

141 Adelaide Street West

Suite 1500

Toronto, Ontario M5H 3L5

Attention: Portfolio Manager

Telecopier No.: (416) 364-6068 

with
a copy to: 

Wachovia
Bank, National Association

1133 Avenue of the Americas

New York, New York 10036

Attention: Portfolio Manager

Telecopier No.: (212) 545-4283 

and
with a copy to the other Agents as set

forth herein 

        (vii) if
to a Lender, to it at its address (or telecopier number) set forth in its Administrative Questionnaire; and 

139

 

        (viii) if
to the US Swingline Lender, to it at: 

UBS
Loan Finance LLC

677 Washington Boulevard

Stamford, Connecticut 06901

Attention: Doris Mesa

Telecopier No.: (203) 719-4176

Email: doris.mesa@ubs.com 

        (ix)  if
to the Canadian Swingline Lender, to it at: 

Wachovia
Capital Finance Corporation (Canada)

141 Adelaide Street West

Suite 1500

Toronto, Ontario M5H 3L5

Attention: Portfolio Manager

Telecopier No.: (416) 364-6068 

with
a copy to: 

Wachovia
Bank, National Association

1133 Avenue of the Americas

New York, New York 10036

Attention: Portfolio Manager

Telecopier No.: (212) 545-4283 

Notices
sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by telecopier shall be deemed to have been
given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient).
Notices delivered through electronic communications to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b). 

        (b)    Electronic Communications.    Notices and other communications to the Lenders and the Issuing Bank hereunder
may (subject to Section 11.01(d)) be delivered or furnished by electronic communication (including e-mail and Internet or intranet
websites) pursuant to procedures approved by the Administrative Agents; provided that the foregoing shall not apply to notices to any Lender or the
Issuing Bank pursuant to Article II if such Lender or the Issuing Bank, as applicable, has notified the Administrative Agents that it is
incapable of receiving notices under such Article by electronic communication. The Administrative Agents, the Collateral Agents or the Borrowers may, in their discretion, agree to accept notices and
other communications to it hereunder by electronic communications pursuant to procedures approved by it (including as set forth in  Section 11.01(d)); provided that approval of such procedures may be limited to particular notices
or communications. 

        Unless
the applicable Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the
sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement);  provided that if
such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be
deemed to have been sent at the opening of business on the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor. 

140

  

        (c)    Change of Address, Etc.    Any party hereto may change its address or telecopier number for notices and other
communications hereunder by notice to the other parties hereto. 

        (d)    Posting.    Each Loan Party hereby agrees that it will provide to the Administrative Agents all information,
documents and other materials that it is obligated to furnish to the Administrative Agents pursuant to this Agreement and any other Loan Document, including all notices, requests, financial
statements, financial and other reports, certificates and other information materials, but excluding any such communication that (i) relates to a request for a new, or a conversion of an
existing, Borrowing or other extension of credit (including any election of an interest rate or interest period relating thereto), (ii) relates to the payment of any principal or other amount
due under this Agreement prior to the scheduled date therefor, (iii) provides notice of any Default under this Agreement or (iv) is required to be delivered to satisfy any condition
precedent to the effectiveness of this Agreement and/or any borrowing or other extension of credit hereunder (all such non-excluded communications, collectively, the
"Communications"), by transmitting the Communications in an electronic/soft medium in a format reasonably acceptable to the US Administrative Agent at
such e-mail address(es) provided to the Borrowers from time to time or in such other form, including hard copy delivery thereof, as the Administrative Agents shall require. In addition,
each Loan Party agrees to continue to provide the Communications to the Administrative Agents in the manner specified in this Agreement or any other Loan Document or in such other form, including hard
copy delivery thereof, as the Administrative Agents shall require. Nothing in this Section 11.01(d) shall prejudice the right of the Agents, any
Lender or any Loan Party to give any notice or other communication pursuant to this Agreement or any other Loan Document in any other manner specified in this Agreement or any other Loan Document or
as any such Agent shall require. 

        To
the extent consented to by any Administrative Agent in writing from time to time, the applicable Administrative Agent agrees that receipt of the Communications by such Administrative
Agent at its e-mail address(es) set forth above shall constitute effective delivery of the Communications to such Administrative Agent for purposes of the Loan Documents;  provided that the Borrowers
shall also deliver to such Administrative Agent an executed original of each Compliance Certificate required to be delivered
hereunder. 

        Each
Loan Party further agrees that the Administrative Agents may make the Communications available to the Lenders by posting the Communications on Intralinks or a substantially similar
electronic transmission system (the "Platform"). The Platform is provided "as is" and "as available." The Agents do not warrant the accuracy or
completeness of the Communications, or the adequacy of the Platform and expressly disclaim liability for errors or omissions in the communications. No warranty of any kind, express, implied or
statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third party rights or freedom from viruses or other code
defects, is made by any Agent in connection with the Communications or the Platform. In no event shall the Administrative Agents or any of its Related Parties have any liability to
the Loan Parties, any Lender or any other person for damages of any kind, including direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or
otherwise) arising out of any Loan Party's or any Administrative Agent's transmission of communications through the Internet, except to the extent the liability of such person is found in a final
non-appealable judgment by a court of competent jurisdiction to have resulted from such person's gross negligence or willful misconduct. 

        SECTION 11.02.    Waivers; Amendment.    

        (a)    Generally.    No failure or delay by any Agent, the Issuing Bank or any Lender in exercising any right or power
hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any 

141

 

abandonment
or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of each
Agent, the Issuing Bank and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any
provision of any Loan Document or consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall be permitted by this  Section 11.02, and then such waiver
or consent shall be effective only in the specific instance and for the purpose for which given. Without
limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether any Agent, any Lender or the
Issuing Bank may have had notice or knowledge of such Default at the time. No notice or demand on the Borrowers in any case shall entitle the Borrowers to any other or further notice or demand in
similar or other circumstances. 

        (b)    Required Consents.    Subject to the terms of the Intercreditor Agreement and to  Section 11.02(c) and (d) neither this Agreement nor any other Loan Document nor any provision
hereof or thereof may be waived, amended, supplemented or modified except, in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the Borrowers and the
Required Lenders or, in the case of any other Loan Document, pursuant to an agreement or agreements in writing entered into by the Administrative Agents, the Collateral Agents (in the case of any
Security Document) and the Loan Party or Loan Parties that are party thereto, in each case with the written consent of the Required Lenders; provided
that no such agreement shall be effective if the effect thereof would: 

        (i)    increase
the Commitment of any Lender without the written consent of such Lender (it being understood that no amendment, modification, termination, waiver or consent
with respect to any condition precedent, covenant or Default shall constitute an increase in the Commitment of any Lender); 

        (ii)   reduce
the principal amount or premium of any Loan or LC Disbursement or reduce the rate of interest thereon (other than interest pursuant to  Section 2.06(d)), or reduce any Fees payable hereunder, or
change the form or currency of payment of any Obligation, without the written consent
of each Lender directly affected thereby (it being understood that any amendment or modification to the financial definitions in this Agreement shall not constitute a reduction in the rate of interest
for purposes of this clause (ii)); 

        (iii)  (A)
change the scheduled final maturity of any Loan, (B) postpone the date for payment of any Reimbursement Obligation or any interest or fees payable
hereunder, (C) change the amount of, waive or excuse any such payment (other than waiver of any increase in the interest rate pursuant to  Section 2.06(e)), or (D) postpone the scheduled
date of expiration of any Commitment or any Letter of Credit beyond the Revolving Maturity
Date, in any case, without the written consent of each Lender directly affected thereby; 

        (iv)  increase
the maximum duration of Interest Periods hereunder, without the written consent of each Lender directly affected thereby; 

        (v)   permit
the assignment or delegation by the Borrowers of any of their rights or obligations under any Loan Document, without the written consent of each Lender; 

        (vi)  release
Holdings or all or substantially all of the Subsidiary Guarantors from their Guarantee (except as expressly provided in  Article VII), or limit their liability in respect of such Guarantee, without
the written consent of each Lender; 

        (vii) except
as provided for in the Intercreditor Agreement, release all or a substantial portion of the Collateral from the Liens of the Security Documents or alter the
relative priorities of the Secured Obligations entitled to the Liens of the Security Documents, in each 

142

 

case
without the written consent of each Lender (it being understood that additional Classes of Loans pursuant to Section 2.19 or consented to by
the Required Lenders may be equally and ratably secured by the Collateral with the then existing Secured Obligations under the Security Documents); 

        (viii) change  Section 2.14(b), (c) or  (d) in a manner that would alter the pro rata sharing of payments or setoffs required thereby or any
other provision in a manner that would alter the pro rata allocation among the Lenders of Loan disbursements, including the requirements of  Section 2.02(a), Section 2.17(d) and  Section 2.18(d), without the written consent of each Lender directly affected thereby; 

        (ix)  change
any provision of this Section 11.02(b), (c), or  (d), without the written consent of each Lender
directly affected thereby (except for additional restrictions on amendments or waivers for the benefit
of Lenders of additional Classes of Loans pursuant to Section 2.19 or consented to by the Required Lenders); 

        (x)   change
the percentage set forth in the definition of "Required Lenders," "Supermajority Lenders" or any other provision of any Loan Document (including this Section)
specifying the number or percentage of Lenders (or Lenders of any Class) required to waive, amend or modify any rights thereunder or make any determination or grant any consent thereunder, without the
written consent of each Lender (or each Lender of such Class, as the case may be), other than to increase such percentage or number or to give any additional Lender or group of Lenders such right to
waive, amend or modify or make any such determination or grant any such consent; 

        (xi)  change
the application of payments as among or between Classes under Section 2.10(f),  Section 8.03 or Section 9.02(g)
 without the written consent of the Lenders of each Class
that is being allocated a lesser prepayment as a result thereof (it being understood that the Required Lenders may waive, in whole or in part, any prepayment under  Section 2.10(f) so long as the
application, as between Classes, of any portion of such prepayment that is still required to be made is not
changed and, if additional Classes of Revolving Loans under this Agreement pursuant to Section 2.19 or consented to by the Required Lenders are
made, such new Revolving Loans may be included on a pro rata basis in the various prepayments required pursuant to  Section 2.10(f)); 

        (xii) [Intentionally Deleted]; 

        (xiii) change
or waive any provision of Article X as the same applies to any Agent, or any other provision of this
Agreement as the same applies to the rights or obligations of any Agent, in each case without the written consent of such Agent; 

        (xiv) change
or waive any obligation of the Lenders relating to the issuance of or purchase of participations in Letters of Credit, without the written consent of the
applicable Administrative Agent and the Issuing Bank; 

        (xv) change
or waive any provision hereof relating to Swingline Loans (including the definition of "US Swingline Commitment" or "Canadian Swingline Commitment"), without the
written consent of the applicable Swingline Lender; or 

        (xvi) expressly
change or waive any condition precedent in Section 4.02 to any Credit Extension without the written
consent of the Required Lenders; 

143

 

provided, further, that 

        (1)   any
waiver, amendment or modification prior to the completion of the primary syndication of the Commitments and Loans (as determined by the Arranger) may not be effected
without the written consent of the Arranger; and 

        (2)   any
waiver, amendment or modification of the Intercreditor Agreement (and any related definitions) may be effected by an agreement or agreements in writing entered into
among the Collateral Agents, the US Administrative Agent, the Required Lenders and the Senior Note Collateral Agent (without the consent of any Loan Party, so long as such amendment, waiver or
modification does not impose any additional duties or obligations on the Loan Parties or alter or impair any right of any Loan Party under the Loan Documents). 

        (c)    Collateral.    Without the consent of any other person, the applicable Loan Party or Parties and the
Administrative Agents and/or the Collateral Agents may (in its or their respective sole discretion, or shall, to the extent required by any Loan Document) enter into any amendment or waiver of any
Loan Document, or enter into any new agreement or instrument, to effect the granting, perfection, protection, expansion or enhancement of any security interest in any Collateral or additional property
to become Collateral for the benefit of the Secured Parties, or as required by local law to give effect to, or protect any security interest for the benefit of the Secured Parties, in any property or
so that the security interests therein comply with applicable Requirements of Law. 

        (d)    Dissenting Lenders.    If, in connection with any proposed change, waiver, discharge or termination of the
provisions of this Agreement as contemplated by Section 11.02(b), the consent of the Required Lenders or Supermajority Lenders, as applicable, is
obtained but the consent of one or more of such other Lenders whose consent is required is not obtained, then the Borrowers shall have the right to replace all, but not less than all, of such
non-consenting Lender or Lenders (so long as all non-consenting Lenders are so replaced) with one or more persons pursuant to  Section 2.16 so long as at the time of such replacement each such new
Lender consents to the proposed change, waiver, discharge or termination. 

        SECTION 11.03.    Expenses; Indemnity; Damage Waiver.    

        (a)    Costs and Expenses.    The Borrowers and Guarantors shall pay (i) all reasonable
out-of-pocket expenses incurred by the Administrative Agents, the Collateral Agents and their respective Affiliates (including the reasonable fees, charges and disbursements of
counsel for the Administrative Agents and/or the Collateral Agents) in connection with the syndication of the credit facilities provided for herein (including the obtaining and maintaining of CUSIP
numbers for the Loans), the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents, including any Inventory Appraisal, or in connection with
any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), including in connection with
post-closing searches to confirm that security filings and recordations have been properly made, (ii) all reasonable out-of-pocket expenses incurred by the
Issuing Banks in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder, (iii) all reasonable
out-of-pocket expenses incurred by the Administrative Agents, the Collateral Agents, any Lender or the Issuing Banks (including the reasonable fees, charges and disbursements
of any counsel for the Administrative Agents, the Collateral Agents, any Lender or the Issuing Banks), in connection with the enforcement or protection or attempted enforcement or protection of its
rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section 11.03, or (B) in
preserving and protecting, or attempting to preserve or protect its interests in the Collateral, or (C) in connection with the Loans made or 

144

 

Letters
of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of
Credit and (iv) all documentary and similar taxes and charges in respect of the Loan Documents. 

        (b)    Indemnification by Borrower.    Each of the Borrowers and Guarantors shall indemnify the Administrative Agents
(and any sub-agent thereof), the Collateral Agents (and any sub-agent thereof) each Lender and the Issuing Bank, and each Related Party of any of the foregoing persons (each
such person being called an "Indemnitee") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related
expenses (including the fees, charges and disbursements of any counsel for any Indemnitee) incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrowers or any
other Loan Party arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any
Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or Release or threatened Release of Hazardous
Materials on, at, under or from any property owned, leased or operated by any Company at any time, or any Environmental Claim related in any way to any Company, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrowers
or any other Loan Party, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrowers or any other Loan Party against an Indemnitee for breach in bad
faith of such Indemnitee's obligations hereunder or under any other Loan Document, if the Borrowers or such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as
determined by a court of competent jurisdiction. 

        (c)    Reimbursement by Lenders.    To the extent that any Borrowers or Guarantors for any reason fails to
indefeasibly pay any amount required under paragraph (a) or (b) of this Section 11.03 to be paid by it to the Administrative Agents
(or any sub-agent thereof), the Collateral Agents, the Issuing Bank, the Swingline Lenders or any Related Party of any of the foregoing, each applicable Lender severally agrees to pay to
the Administrative Agent (or any such sub-agent), the Collateral Agents (or any sub-agent thereof), the Issuing Bank, the Swingline Lenders or such Related Party, as the case
may be, such Lender's pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or
asserted against the Administrative Agent (or any such sub-agent), the Collateral Agents (or any sub-agent thereof), the Swingline Lenders or the Issuing Bank in its capacity
as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent), the Collateral Agents (or any sub-agent thereof), the
Swingline Lenders or Issuing Bank in connection with such capacity. The obligations of the Lenders under this paragraph (c) are subject to the provisions of  Section 2.14. For purposes hereof,
a Lender's "pro rata share" shall be determined based upon its
share of the sum of the total Revolving Exposure and unused Commitments at the time. 

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        (d)    Waiver of Consequential Damages, Etc.    To the fullest extent permitted by applicable Requirements of Law, no
Loan Party shall assert, and each Loan Party 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, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated
hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. No Indemnitee referred to in paragraph (b) above shall be liable for any damages arising from the use by
unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the
other Loan Documents or the transactions contemplated hereby or thereby. 

        (e)    Payments.    All amounts due under this Section shall be payable not later than three (3) Business Days
after demand therefor. 

        SECTION 11.04.    Successors and Assigns.    

        (a)    Successors and Assigns Generally.    The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrowers may not assign or otherwise transfer any of their rights or obligations hereunder
without the prior written consent of the Administrative Agent, the Collateral Agents, the Issuing Bank, the Swingline Lenders and each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of paragraph (b) of this  Section 11.04, (ii) by way of participation in
accordance with the provisions of paragraph (d) of this  Section 11.04 or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (f) of
this
Section (and any other attempted assignment or transfer by Borrower or any Lender shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any person
(other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly
contemplated hereby, the other Indemnitees) any legal or equitable right, remedy or claim under or by reason of this Agreement. 

        (b)    Assignments by Lenders.    Any Lender may at any time assign to one or more Eligible Assignees all or a portion
of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided that 

        (i)    except
in the case of any assignment made in connection with the primary syndication of the Commitment and Loans by the Arranger or an assignment of the entire remaining
amount of the assigning Lender's Commitment and the Loans at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender,
the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the
Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if
"Trade Date" is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $5.0 million, in the case of any assignment in respect of Revolving Loans and/or
Revolving Commitments, unless the applicable Administrative Agent and, so long as no Default has occurred and is continuing, the Borrowers otherwise consent (each such consent not to be unreasonably
withheld or delayed); 

        (ii)   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 

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or
the Commitment assigned, except that this clause (ii) shall not permit any Lender to assign all or a portion of its rights and obligations among separate tranches or to separate Lenders on a
non-pro rata basis; 

        (iii)  after
the Effective Date (as defined in the related Assignment and Assumption), the assigning Lender shall hold the same percentage of Canadian Revolving Loans as
compared to Revolving Loans as such Lender held prior to the such Effective Date; 

        (iv)  the
parties to each assignment shall execute and deliver to the applicable Administrative Agent an Assignment and Assumption, together with the Assigning Lender's
original Note (if any) and a processing and recordation fee of $3,500, and the Eligible Assignee, if it shall not be a Lender, shall deliver to the applicable Administrative Agent an Administrative
Questionnaire; and 

        (v)   in
the case of an assignment of rights and obligations hereunder by a Canadian Lender, such Lender shall use its commercially reasonable efforts to assign such rights
and obligations to an Eligible Assignee which qualifies as an Eligible Canadian Lender. 

Subject
to acceptance and recording thereof by the applicable Administrative Agent pursuant to paragraph (c) of this Section 11.04, from
and after the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender, including a Canadian Revolving Lender, as applicable, under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning
Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of  Section 2.12, Section 2.13,  Section 2.15 and Section 11.03 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 paragraph shall be treated for purposes of
this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this  Section 11.04. 

        (c)    Register.    The applicable Administrative Agent, acting solely for this purpose as an agent of the Borrowers,
shall maintain at one of its offices, a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and
principal amounts of the Loans and LC Disbursements 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 Borrowers, the Administrative Agents, the Issuing Bank and the Lenders may treat each person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrowers, the Issuing Bank, the
Collateral Agents, the Swingline Lenders and any Lender (with respect to its own interest only), at any reasonable time and from time to time upon reasonable prior notice. 

        (d)    Participations.    Any Lender may at any time, without the consent of, or notice to, the Borrowers, the
Administrative Agents, the Issuing Bank or the Swingline Lenders sell participations to any person (other than a natural person or the Borrowers or any of the Borrowers' Affiliates or Subsidiaries)
(each, a "Participant") in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of its
Commitment and/or the Loans owing to it); provided that (i) such Lender's obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrowers, the Administrative Agents 

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and
the Lenders and Issuing Bank shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. 

        Any
agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce the Loan Documents and to approve
any amendment, modification or waiver of any provision of the Loan Documents; provided that such agreement or instrument may provide that such Lender
will not, without the consent of the Participant, agree to any amendment, modification or waiver described in clause (i), (ii) or (iii) of the first proviso to  Section 11.02(b) that
affects such Participant. Subject to paragraph (e) of this Section, the Borrowers agree that each Participant shall
be entitled to the benefits of Section 2.12, Section 2.13 and  Section 2.15(subject to the
requirements of those Sections) to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of  Section 11.08 as though it were a Lender, provided such
Participant agrees to be subject to  Section 2.14 as though it were a Lender. 

        (e)    Limitations on Participant Rights.    A Participant shall not be entitled to receive any greater payment under  Section 2.12, Section 2.13 and  Section 2.15 than the applicable Lender would have been entitled to receive with respect to the participation sold to
such Participant, unless
the sale of the participation to such Participant is made with the Borrowers' prior written consent. 

        (f)    Certain Pledges.    Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank;  provided that no such pledge or assignment shall
release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee
for such Lender as a party hereto. In the case of any Lender that is a fund that invests in bank loans, such Lender may, without the consent of the Borrowers or the Administrative Agents, collaterally
assign or pledge all or any portion of its rights under this Agreement, including the Loans and Notes or any other instrument evidencing its rights as a Lender under this Agreement, to any holder of,
trustee for, or any other representative of holders of, obligations owed or securities issued, by such fund, as security for such obligations or securities. 

        SECTION 11.05.    Survival of Agreement.    All covenants, agreements, representations and
warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be
considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and the making of any Loans and issuance of any Letters of Credit,
regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Agents, the Issuing Bank or any Lender may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any
fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The provisions of  Section 2.12, Section 2.14,  Section 2.15 and Article X
shall survive and remain in full force and effect regardless of
the consummation of the transactions contemplated hereby, the repayment of the Loans, the payment of the Reimbursement Obligations, the expiration or termination of the Letters of Credit and the
Commitments or the termination of this Agreement or any provision hereof. 

        SECTION 11.06.    Counterparts; Integration; Effectiveness; Electronic Execution.    

        (a)    Counterparts; Integration; Effectiveness.    This Agreement may be executed in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement 

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and
the other Loan Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent, constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in  Section 4.01, this Agreement shall
become effective when it shall have been executed by the Administrative Agent and when the Administrative
Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this
Agreement by telecopier shall be effective as delivery of a manually executed counterpart of this Agreement. 

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

        SECTION 11.07.    Severability.    Any provision of this Agreement held to be invalid, illegal
or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality
or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction. 

        SECTION 11.08.    Right of Setoff.    If an Event of Default shall have occurred and be
continuing, each Lender, the Issuing Bank, and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable Requirements of
Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any
time owing by such Lender, the Issuing Bank or any such Affiliate to or for the credit or the account of the Borrowers or any other Loan Party against any and all of the obligations of the Borrowers
or such Loan Party now or hereafter existing under this Agreement or any other Loan Document to such Lender or the Issuing Bank, irrespective of whether or not such Lender or the Issuing Bank shall
have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrowers or such Loan Party may be contingent or unmatured or are owed to a branch or office
of such Lender or the Issuing Bank different from the branch or office holding such deposit or obligated on such indebtedness. The rights of each Lender, the Issuing Bank and their respective
Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, the Issuing Bank or their respective Affiliates may have. Each Lender
and the Issuing Bank agrees to notify the Borrowers and the Administrative Agents promptly after any such setoff and application; provided that the
failure to give such notice shall not affect the validity of such setoff and application. 

        SECTION 11.09.    Governing Law; Jurisdiction; Consent to Service of Process.    

        (a)    Governing Law.    This Agreement shall be construed in accordance with and governed by the law of the State of
New York, without regard to conflicts of law principles that would require the application of the laws of another jurisdiction. 

        (b)    Submission to Jurisdiction.    Each Loan Party hereby irrevocably and unconditionally submits, for itself and
its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York,
and any appellate court from any thereof and any court of competent jurisdiction in Ontario, Canada, in any action or proceeding arising out of or relating to 

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any
Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State court, each Ontario court or, to the fullest extent permitted by applicable law, in such Federal court. Each of the parties hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Agreement or any other Loan Document shall affect any right that the Administrative Agents, the Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this
Agreement or any other Loan Document against any Loan Party or its properties in the courts of any jurisdiction. 

        (c)    Waiver of Venue.    Each Loan Party hereby irrevocably and unconditionally waives, to the fullest extent
permitted by applicable Requirements of Law, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or
any other Loan Document in any court referred to in Section 11.09(b). Each of the parties hereto hereby irrevocably waives, to the fullest extent
permitted by applicable Requirements of Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

        (d)    Service of Process.    Each party hereto irrevocably consents to service of process in any action or proceeding
arising out of or relating to any Loan Document, in the manner provided for notices (other than telecopier) in Section 11.01. Nothing in this
Agreement or any other Loan Document will affect the right of any party hereto to serve process in any other manner permitted by applicable Requirements of Law. 

        SECTION 11.10.    Waiver of Jury Trial.    Each Loan Party hereby waives, to the fullest
extent permitted by applicable Requirements of Law, any right it may have to a trial by jury in any legal proceeding directly or indirectly arising out of or relating to this Agreement, any other Loan
Document or the transactions contemplated hereby (whether based on contract, tort or any other theory). Each party hereto (a) certifies that no representative, agent or attorney of any other
party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and (b) acknowledges that it and the other
parties hereto have been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this Section. 

        SECTION 11.11.    Headings.    Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 

        SECTION 11.12.    Treatment of Certain Information; Confidentiality.    Each of the
Administrative Agents, the Lenders and the Issuing Bank agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its
Affiliates and to its and its Affiliates' respective partners, directors, officers, employees, agents, advisors and other representatives (it being understood that the persons to whom such disclosure
is made will 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 purporting
to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable
Requirements of Law 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 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 11.10, to (i) any assignee of or Participant in, or any prospective assignee of
or Participant in, any of its rights or obligations under this Agreement, (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative 

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transaction
relating to the Borrowers and their obligations or (iii) any rating agency for the purpose of obtaining a credit rating applicable to any Lender, (g) with the consent of the
Borrowers or (h) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Administrative
Agents, any Lender, the Issuing Bank or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrowers. For purposes of this Section,
"Information" means all information received from the Borrowers or any of their Subsidiaries relating to the Borrowers or any of their Subsidiaries or
any of their respective businesses, other than any such information that is available to the Administrative Agent, any Lender or the Issuing Bank on a nonconfidential basis prior to disclosure by
Borrower or any of its Subsidiaries; provided that, in the case of information received from Borrower or any of its Subsidiaries after the date hereof,
such information is clearly identified at the time of delivery as confidential. Any person required to maintain the confidentiality of Information as provided in this Section shall be considered to
have complied with its obligation to do so if such person has exercised the same degree of care to maintain the confidentiality of such Information as such person would accord to its own confidential
information. 

        SECTION 11.13.    USA PATRIOT Act Notice.    Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agents (for itself and not on behalf of any Lender) hereby notifies the Borrowers that pursuant to the requirements of the USA PATRIOT Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001)) (the "Act"), it is required to obtain, verify and record information that
identifies the Borrowers, which information includes the name, address and tax identification number of the Borrowers and other information regarding the Borrowers that will allow such Lender or the
Administrative Agent, as applicable, to identify the Borrowers in accordance with the Act. This notice is given in accordance with the requirements of the Act and is effective as to the Lenders and
the Administrative Agents. 

        SECTION 11.14.    Interest Rate Limitation.    Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are
treated as interest on such Loan under applicable Requirements of Law (collectively, the "Charges"), shall exceed the maximum lawful rate (the
"Maximum Rate") which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable
Requirements of Law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent
lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal
Funds Effective Rate to the date of repayment, shall have been received by such Lender. 

        SECTION 11.15.    Lender Addendum.    Each Lender to become a party to this Agreement on the
date hereof shall do so by delivering to the applicable Administrative Agent a Lender Addendum duly executed by such Lender, the Borrowers and the such Administrative Agent. 

        SECTION 11.16.    Obligations Absolute.    To the fullest extent permitted by applicable
Requirements of Law, all obligations of the Loan Parties hereunder shall be absolute and unconditional irrespective of: 

        (a)   any
bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like of any Loan Party; 

        (b)   any
lack of validity or enforceability of any Loan Document or any other agreement or instrument relating thereto against any Loan Party; 

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        (c)   any
change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any
departure from any Loan Document or any other agreement or instrument relating thereto; 

        (d)   any
exchange, release or non-perfection of any other Collateral, or any release or amendment or waiver of or consent to any departure from any guarantee, for
all or any of the Obligations; 

        (e)   any
exercise or non-exercise, or any waiver of any right, remedy, power or privilege under or in respect hereof or any Loan Document; or 

        (f)    any
other circumstances which might otherwise constitute a defense available to, or a discharge of, the Loan Parties. 

        SECTION 11.17.    Dollar Equivalent Calculations.    For purposes of this Agreement, the
Dollar Equivalent of each Loan that is an Approved Currency Revolving Loan and the Dollar Equivalent of the stated amount of each Letter of Credit that is an Approved Currency Letter of Credit shall
be calculated on the date when any such Loan is made, such Letter of Credit is issued, on the first Business Day of each month and at such other times as designated by the applicable Administrative
Agent. Such Dollar Equivalent shall remain in effect until the same is recalculated by such Administrative Agent as provided above and notice of such recalculation is received by the Borrowers, it
being understood that until such notice of such recalculation is received, the Dollar Equivalent shall be that Dollar Equivalent as last reported to the Borrowers by such Administrative Agent. Such
Administrative Agent shall promptly notify the Borrowers and the Lenders of each such determination of the Dollar Equivalent. 

        SECTION 11.18.    Judgment Currency.    

        (a)   The
Borrowers' obligation hereunder and under the other Loan Documents to make payments in the applicable Approved Currency (pursuant to such obligation, the
"Obligation Currency") shall not be discharged or satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any
currency other than the Obligation Currency, except to the extent that such tender or recovery results in the effective receipt by the applicable Administrative Agent or the respective Lender of the
full amount of the Obligation Currency expressed to be payable to such Administrative Agent or such Lender under this Agreement or the other Loan Documents. If, for the purpose of obtaining or
enforcing judgment against the Borrowers in any court or in any jurisdiction, it becomes necessary to convert into or from any currency other than the Obligation Currency (such other currency being
hereinafter referred to as the "Judgment Currency") an amount due in the Obligation Currency, the conversion shall be made at the Dollar Equivalent, and
in the case of other currencies, the rate of exchange (as quoted by such Administrative Agent or if such Administrative Agent does not quote a rate of exchange on such currency, by a known dealer in
such currency designated by such Administrative Agent) determined, in each case, as of the Business Day immediately preceding the day on which the judgment is given (such Business Day being
hereinafter referred to as the "Judgment Currency Conversion Date"). 

        (b)   If
there is a change in the rate of exchange prevailing between the Judgment Currency Conversion Date and the date of actual payment of the amount due, the Borrowers
covenant and agree to pay, or cause to be paid, such additional amounts, if any (but in any event not a lesser amount) as may be necessary to ensure that the amount paid in the Judgment Currency, when
converted at the rate of exchange prevailing on the date of payment, will produce the amount of the Obligation Currency which could have been purchased with the amount of Judgment Currency stipulated
in the judgment or judicial award at the rate of exchange prevailing on the Judgment Currency Conversion Date. 

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        (c)   For
purposes of determining the Dollar Equivalent or any other rate of exchange for this Section 11.18, such
amounts shall include any premium and costs payable in connection with the purchase of the Obligation Currency. 

        SECTION 11.19.    Special Provisions Relating to Currencies Other Than Dollars.    

        (a)   All
funds to be made available to the applicable Administrative Agent pursuant to this Agreement in Canadian dollars shall be made available to such Administrative Agent
in immediately available, freely transferable, cleared funds to such account with such bank in such principal financial center in Canada as such Administrative Agent shall from time to time nominate
for this purpose. 

        (b)   In
relation to the payment of any amount denominated in Canadian dollars, no Administrative Agent shall be liable to the Borrowers or any of the Lenders for any delay,
or the consequences of any delay, in the crediting to any account of any amount required by this Agreement to be paid by such Administrative Agent if such Administrative Agent shall have taken all
relevant and necessary steps to achieve, on the date required by this Agreement, the payment of such amount in immediately available, freely transferable, cleared funds (in Canadian dollars) to the
account with the bank in the principal financial center in Canada which the Borrowers or, as the case may be, any Lender shall have specified for such purpose. In this  Section 11.19(b),
"all relevant steps" means all such steps as may be prescribed from time to
time by the regulations or operating procedures of such clearing or settlement system as such Administrative Agent may from time to time determine for the purpose of clearing or settling payments of
Canadian dollars. Furthermore, and without limiting the foregoing, such Administrative Agent shall not be liable to the Borrowers or any of the Lenders with respect to the foregoing matters in the
absence of its gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision or pursuant to a binding arbitration award
or as otherwise agreed in writing by the affected parties). 

        SECTION 11.20.    Intercreditor Agreement.    Notwithstanding anything herein to the contrary,
each Lender acknowledges that the Lien and security interest granted to the Collateral Agents pursuant to the Security Documents and the exercise of any right or remedy by such Collateral Agents
thereunder are subject to the provisions of the Intercreditor Agreement. In the event of any conflict between the terms of the Intercreditor Agreement and the Security Documents, the terms of the
Intercreditor Agreement shall govern and control. 

[Signature Pages Follow]

153

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

	 	 	US BORROWERS:

LINENS 'N THINGS, INC.
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

LINENS 'N THINGS CENTER, INC.
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	
CANADIAN BORROWER:

LINENS 'N THINGS CANADA CORP.
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	
HOLDINGS:

LINENS HOLDING CO.
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	
SUBSIDIARY GUARANTORS:
	

 	
 	

BLOOMINGTON MN, L.T., INC.
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	 	 	 	 

S-1

 

	

 	
 	

LNT, INC.
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

LNT SERVICES, INC.
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

LNT WEST, INC.
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

VENDOR FINANCE LLC
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

LNT LEASING II LLC
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

LNT VIRGINIA LLC
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	 	 	 	 

S-2

 

	

 	
 	

LNT MERCHANDISING COMPANY, LLC
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

LNT LEASING III LLC
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

CITIDEL LNT LLC
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

LINENS 'N THINGS INVESTMENT

CANADA II COMPANY
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

LINENS 'N THINGS INVESTMENT

CANADA I COMPANY
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

LINENS 'N THINGS

CANADA LIMITED PARTNERSHIP
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

S-3

 

	

 	
 	

UBS AG, STAMFORD BRANCH

as US Co-Collateral Agent, US Administrative

Agent and Issuing Bank
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

WACHOVIA BANK, NATIONAL ASSOCIATION

as US Co-Collateral Agent, Co-Documentation

Agent and Issuing Bank
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

WACHOVIA CAPITAL FINANCE CORPORATION (CANADA)

as Canadian Administrative Agent, Canadian Co-Collateral Agent

and Canadian Swingline Lender
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

S-4

 

	

 	
 	

UBS AG CANADA BRANCH

as Canadian Co-Collateral Agent
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

UBS AG LOAN FINANCE LLC,

as US Swingline Lender
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

S-5

Annex I  

Applicable Margin  

	 
	 	Revolving Loans
	 
	Average Excess Availability for

Preceding Fiscal Quarter
	 	Eurodollar/

Acceptance Fees
	 	ABR/Canadian

Prime
	 
	Level I: <$125 million	 	1.75	%	0.25	%
	
Level II: 3 $125 million and

< $350 million	
 	

1.50	
%	

0.00	
%
	
Level III: 3 $350 million and

< $475 million	
 	

1.25	
%	

0.00	
%
	
Level IV: 3 $475 million	
 	

1.00	
%	

0.00	
%

Applicable Fee  

	 
	 	Fee
	 
	Level I	 	0.375	%
	Level II	 	0.375	%
	Level III	 	0.375	%
	Level IV	 	0.250	%

        Each
change in the Applicable Margin or Applicable Fee resulting from a change in the Excess Availability shall be effective with respect to all Loans and Letters of Credit outstanding
on and after the date of delivery to the Administrative Agents of the financial statements and certificates required by Section 5.01(a) or  (b) and
Section 5.01(d) (as well as the Borrowing Base Certificate for the last month of such
fiscal quarter), respectively, indicating such change until the date immediately preceding the next date of delivery of such financial statements and certificates (and related Borrowing Base
Certificate) indicating another such change. Notwithstanding the foregoing, the Average Excess Availability shall be deemed to be in Level II (i) from the Closing Date to the date of delivery
to the Administrative Agents of the financial statements and certificates required by Section 5.01(a) or  (b) and Section 5.01(d) for the fiscal period ended at least six months after the Closing Date,
(ii) at any time during which the Borrowers have failed to deliver the financial statements and certificates required by Section 5.01(a)
or (b) and Section 5.01(d), respectively, and (iii) at any time during the existence of an
Event of Default. 

QuickLinks

TABLE OF CONTENTS

CREDIT AGREEMENT

ARTICLE I. DEFINITIONS

ARTICLE II. THE CREDITS

ARTICLE III. REPRESENTATIONS AND WARRANTIES

ARTICLE IV. CONDITIONS TO CREDIT EXTENSIONS

ARTICLE V. AFFIRMATIVE COVENANTS

ARTICLE VI. NEGATIVE COVENANTS

ARTICLE VII. GUARANTEE

ARTICLE VIII. EVENTS OF DEFAULT

ARTICLE IX. COLLATERAL ACCOUNT; APPLICATION OF COLLATERAL PROCEEDS

ARTICLE X. THE ADMINISTRATIVE AGENTS AND THE COLLATERAL AGENTS

ARTICLE XI. MISCELLANEOUS

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