Document:

Document

 

 

 

 

 

 

BMC
INDUSTRIES, INC.

______________________________

THIRD
AMENDED AND RESTATED CREDIT AGREEMENT

dated
as of September 27, 2002

______________________________

DEUTSCHE BANK TRUST COMPANY
AMERICAS,

as
Administrative Agent

BANK ONE, NA,

as
Documentation Agent

and

VARIOUS LENDING INSTITUTIONS

 

 

 

 

TABLE OF CONTENTS

Page

	
  ARTICLE I

  	
  2

  
	
  1.1

  	
  Defined Terms.

  	
  2

  
	
  
  1.2

  	
  Accounting Terms,
  Financial Statements.

  	
  37

  
	
  1.3

  	
  Other Definitional
  Terms.

  	
  37

  
	
  ARTICLE II

  	
  38

  
	
  2.1

  	
  The Commitments.

  	
  38

  
	
   
	
  (a)  Term Loans.

  	
  a
	
   
	
  (b)  Revolving Loan
  Commitment

  	
  38

  
	
   

  	
  (c)  Swing Line Loans.

  	
  39

  
	
  2.2

  	
  Notes.

  	
  41

  
	
   
	
  (a)  Evidence of
  Indebtedness.

  	
  41

  
	
   
	
  (b)  Notation of Payments.

  	
  42

  
	
  
  2.3

  	
  
  Minimum Amount of
  Each Borrowing; Maximum Number of Borrowings.

  	
  42

  
	
  2.4

  	
  Borrowing Options.

  	
  42

  
	
  2.5

  	
  Notice of Borrowing.

  	
  43

  
	
  2.6

  	
  Conversion or
  Continuation.

  	
  43

  
	
  
  2.7

  	
  Disbursement of
  Funds; Funding Assumptions.

  	
  44

  
	
  2.8

  	
  Pro Rata Borrowings.

  	
  45

  
	
  
  2.9

  	
  Amount and Terms of
  Letter of Credit.

  	
  45

  
	
   
	
  
  (a)  Letter of Credit
  Commitments, Terms of Letters of Credit.

  	
  45

  
	
   
	
  
  (b)  Procedure for
  Issuance of Letters of Credit.

  	
  46

  
	
   
	
  
  (c)  Draws upon Letters of
  Credit; Reimbursement Obligation.

  	
  47

  
	
   
	
  
  (d)  Lenders'
  Participation in Letters of Credit.

  	
  47

  
	
   
	
  (e)  Fees for Letters of
  Credit.

  	
  48

  
	
   
	
  (f)  LC Obligations
  Unconditional.

  	
  49

  
	
   
	
  (g)  Indemnification.

  	
  50

  
	
  ARTICLE III

  	
  51

  
	
  3.1

  	
  Interest.

  	
  52

  
	
   
	
  (a)  Base Rate Loans.

  	
  52

  
	
   
	
  (b)  Eurodollar Loans.

  	
  52

  
	
   
	
  (c)  Payment of Interest.

  	
  52

  
	
   
	
  (d)  Notification of Rate.

  	
  52

  
	
   
	
  (e)  Default Interest.

  	
  52

  
	
   
	
  (f)  Maximum Interest.

  	
  52

  
	
  3.2

  	
  Fees.

  	
  53

  
	
   
	
  (a)  Commitment Fee.

  	
  53

  
	
   
	
  (b)  Agency Fees.

  	
  53

  
	
   
	
  
  (c)  Third Amended and
  Restated Credit Agreement Fees

  	
  53

  
	
   
	
  (d)  July 1, 2003 Special
  Fee

  	
  53

  
	
  3.3

  	
  Computation of
  Interest and Fees.

  	
  53

  
	
  3.4

  	
  Interest Periods.

  	
  54

  
	
  3.5

  	
  Compensation for
  Funding Losses.

  	
  54

  
	
  
  3.6

  	
  Increased Costs,
  Illegality, Etc.

  	
  55

  
	
   
	
  (a)  Generally.

  	
  55

  
	
   
	
  (b)  Eurodollar Loans.

  	
  57

  
	
   
	
  (c)  Capital Requirements.

  	
  57

  
	
   
	
  (d)  Change of Lending
  Office.

  	
  57

  
	
  3.7

  	
  Replacement of
  Affected Lenders.

  	
  58

  
	
  ARTICLE IV

  	
  58

  
	
  
  4.1

  	
  Voluntary Reduction
  of Commitments.

  	
  58

  
	
  4.2

  	
  Voluntary
  Prepayments.

  	
  59

  
	
  4.3

  	
  Mandatory
  Prepayments.

  	
  60

  
	
   
	
  (a)  Prepayment Upon
  Overadvance.

  	
  60

  
	
   
	
  (b)  Payment at
  Termination Date.

  	
  60

  
	
   
	
  (c)  Mandatory Prepayment
  Upon Asset Disposition.

  	
  61

  
	
   
	
  (d)  Mandatory Prepayment
  Upon Incurrence of Indebtedness.

  	
  61

  
	
   
	
  (e)  Scheduled Term
  Repayments.

  	
  61

  
	
   
	
  (f)  Mandatory Prepayment
  With Excess Cash Flow.

  	
  61

  
	
   
	
  (g)  Mandatory Prepayment
  Upon Recovery Event

  	
  61

  
	
  4.4

  	
  Application of
  Prepayments.

  	
  62

  
	
  4.5

  	
  Method and Place of
  Payment.

  	
  62

  
	
  4.6

  	
  Net Payments.

  	
  63

  
	
  ARTICLE V

  	
  66

  
	
  
  5.1

  	
  Corporate Existence;
  Compliance with Law.

  	
  67

  
	
  
  5.2

  	
  Corporate Power;
  Authorization; No Violation.

  	
  67

  
	
  5.3

  	
  Binding Effect.

  	
  67

  
	
  5.4

  	
  Purpose of Loans.

  	
  67

  
	
  5.5

  	
  Subsidiaries.

  	
  68

  
	
  5.6

  	
  Indebtedness.

  	
  68

  
	
  5.7

  	
  
  Financial Statements;
  Financial Condition; Undisclosed Liabilities; Projections, etc.

  	
  68

  
	
   
	
  (a)  Financial Statements.

  	
  68

  
	
   
	
  (b)  Solvency.

  	
  68

  
	
   
	
  (c)  No Undisclosed
  Liabilities.

  	
  69

  
	
   
	
  (d)  Projections.

  	
  69

  
	
  5.8

  	
  No Material
  Litigation.

  	
  69

  
	
  5.9

  	
  Performance of
  Agreements.

  	
  69

  
	
  5.10

  	
  Taxes.

  	
  69

  
	
  5.11

  	
  Governmental
  Regulation.

  	
  70

  
	
  5.12

  	
  Ownership of
  Property; Liens.

  	
  70

  
	
  5.13

  	
  Intellectual
  Property.

  	
  70

  
	
  5.14

  	
  Disclosure.

  	
  70

  
	
  5.15

  	
  ERISA.

  	
  71

  
	
  5.16

  	
  Labor Relations.

  	
  71

  
	
  5.17

  	
  Insurance.

  	
  71

  
	
  5.18

  	
  Public Utility Holding
  Company Act.

  	
  71

  
	
  5.19

  	
  Security Documents.

  	
  71

  
	
   
	
  (a)  Security Agreement
  Collateral.

  	
  71

  
	
   
	
  (b)  Real Estate
  Collateral.

  	
  71

  
	
  5.20

  	
  
  Matters Pertaining to
  Second Amendment and Restatement Agreement.

  	
  72

  
	
   
	
  (a)  Representations and
  Warranties

  	
  72

  
	
   
	
  (b)  Corporate Power; Authorization;
  No Violation

  	
  72

  
	
  5.21

  	
  
  Matters Pertaining to
  Third Amended and Restated Credit Agreement

  	
  72

  
	
   
	
  (a)  Representations and
  Warranties

  	
  72

  
	
   
	
  (b)  Corporate Power;
  Authorization; No Violation

  	
  72

  
	
  5.22

  	
  Deposit Accounts

  	
  73

  
	
  ARTICLE VI

  	
  73

  
	
  6.1

  	
  Conditions Precedent
  to Effectiveness.

  	
  73

  
	
   
	
  (a)  Loan Documents.

  	
  73

  
	
   
	
  (b)  Corporate
  Proceedings.

  	
  74

  
	
   
	
  (c)  Corporate Documents.

  	
  75

  
	
   
	
  (d)  Incumbency
  Certificate.

  	
  75

  
	
   
	
  (e)  Fees and Amendment
  Fee.

  	
  75

  
	
   
	
  (f)  Legal Opinions.

  	
  75

  
	
   
	
  (g)  Approvals.

  	
  75

  
	
   
	
  (h)  Litigation.

  	
  76

  
	
   
	
  (i)  Officer's
  Certificate.

  	
  76

  
	
   
	
  (j)  Adverse Change.

  	
  76

  
	
  6.2

  	
  Conditions Precedent
  to Effectiveness.

  	
  76

  
	
   
	
  (a)  Loan Documents.

  	
  76

  
	
   
	
  (b)  Corporate
  Proceedings.

  	
  78

  
	
   
	
  (c)  Corporate Documents.

  	
  78

  
	
   
	
  (d)  Incumbency
  Certificate.

  	
  78

  
	
   
	
  (e)  Fees and Amendment
  Fee.

  	
  78

  
	
   
	
  (f)  Legal Opinions.

  	
  79

  
	
   
	
  (g)  Approvals.

  	
  79

  
	
   
	
  (h)  Litigation.

  	
  79

  
	
   
	
  (i)  Officer's
  Certificate.

  	
  79

  
	
   
	
  (j)  Adverse Change.

  	
  79

  
	
  6.3

  	
  
  Certain Conditions
  Precedent to Each Loan.

  	
  80

  
	
   
	
  (a)  Representations and
  Warranties.

  	
  80

  
	
   
	
  (b)  No Events of Default.

  	
  80

  
	
   
	
  (c)  Available Revolving
  Commitment.

  	
  80

  
	
   
	
  (d)  Other Matters.

  	
  80

  
	
  ARTICLE VII

  	
  81

  
	
  7.1

  	
  Financial Statements.

  	
  81

  
	
  7.2

  	
  Certificates; Other
  Information.

  	
  82

  
	
   
	
  (a)  Accountant's
  Certificates.

  	
  82

  
	
   
	
  (b)  Officer's
  Certificate.

  	
  82

  
	
   
	
  (c)  Budgets; Projections.

  	
  82

  
	
   
	
  (d)  Audit Reports and
  Statements.

  	
  82

  
	
   
	
  (e)  Public Filings.

  	
  83

  
	
   
	
  (f)  Status.

  	
  83

  
	
   
	
  (g)  Other Requested
  Information

  	
  83

  
	
   
	
  (h)  Borrowing Base
  Certificate

  	
  83

  
	
  7.3

  	
  Notices.

  	
  83

  
	
   
	
  (a)  Event of Default or
  Unmatured Event of Default.

  	
  83

  
	
   
	
  (b)  Litigation and
  Related Matters.

  	
  83

  
	
   
	
  (c)  Notice of Change of
  Control.

  	
  83

  
	
  7.4

  	
  Conduct of Business
  and Maintenance of Existence.

  	
  84

  
	
  7.5

  	
  Payment of
  Obligations.

  	
  84

  
	
  7.6

  	
  Inspection of
  Property, Books and Records.

  	
  84

  
	
  7.7

  	
  ERISA.

  	
  85

  
	
  7.8

  	
  Insurance.

  	
  86

  
	
  7.9

  	
  Environmental Laws.

  	
  86

  
	
  7.10

  	
  Additional Subsidiary
  Guarantors.

  	
  87

  
	
  7.11

  	
  Intentionally
  Omitted.

  	
  87

  
	
  7.12

  	
  Additional Security;
  Further Assurances.

  	
  87

  
	
   
	
  (a)  Additional Subsidiary
  Guarantors.

  	
  87

  
	
   
	
  (b)  Pledge of New
  Subsidiary Stock.

  	
  87

  
	
   
	
  (c)  Grant of Security by
  New Domestic Subsidiaries.

  	
  87

  
	
   
	
  (d)  Documentation for
  Additional Security.

  	
  87

  
	
   
	
  (e)  Foreign Subsidiaries
  Security.

  	
  88

  
	
   
	
  (f)  Agreement to Grant
  Additional Security

  	
  88

  
	
  7.13

  	
  Pledge of BV1

  	
  88

  
	
  7.14

  	
  Third Party
  Consultant

  	
  89

  
	
  7.15

  	
  Field Audit

  	
  89

  
	
  7.16

  	
  Operating Accounts
  and Deposit Accounts

  	
  89

  
	
  ARTICLE VIII

  	
  90

  
	
  8.1

  	
  Financial Condition
  Covenants.

  	
  90

  
	
   
	
  (a)  Maintenance of
  Consolidated Net Worth.

  	
  90

  
	
   
	
  (b)  Leverage Ratio.

  	
  90

  
	
   
	
  (c)  Interest Coverage
  Ratio.

  	
  90

  
	
   
	
  (d)  Capital Expenditures.

  	
  91

  
	
  8.2

  	
  Indebtedness.

  	
  91

  
	
  8.3

  	
  Liens.

  	
  92

  
	
  8.4

  	
  Fundamental Changes.

  	
  92

  
	
  8.5

  	
  Restricted Payments.

  	
  93

  
	
  8.6

  	
  Distributions from
  Subsidiaries.

  	
  93

  
	
  8.7

  	
  Sales of Assets and
  Subsidiary Stock.

  	
  93

  
	
  8.8

  	
  Investments.

  	
  94

  
	
  8.9

  	
  Transactions with
  Affiliates.

  	
  94

  
	
  8.10

  	
  Sale-Leasebacks.

  	
  94

  
	
  8.11

  	
  Fiscal Year.

  	
  94

  
	
  8.12

  	
  Amendments to
  Organizational Documents.

  	
  94

  
	
  8.13

  	
  Accounting Changes.

  	
  94

  
	
  8.14

  	
  Lines of Business.

  	
  94

  
	
  8.15

  	
  Limitation on
  Voluntary Payments

  	
  94

  
	
  ARTICLE IX

  	
  95

  
	
  9.1

  	
  Events of Default.

  	
  95

  
	
   
	
  (a)  Failure to Make
  Payments When Due.

  	
  95

  
	
   
	
  (b)  Representations.

  	
  95

  
	
   
	
  (c)  Breach of Certain
  Covenants.

  	
  95

  
	
   
	
  (d)  Other Defaults Under
  Agreement or Loan Documents.

  	
  95

  
	
   
	
  (e)  Default Under Other
  Agreements.

  	
  95

  
	
   
	
  (f)  Judgments.

  	
  96

  
	
   
	
  (g)  Voluntary Insolvency,
  Etc.

  	
  96

  
	
   
	
  (h)  Involuntary
  Insolvency, Etc.

  	
  96

  
	
   
	
  (i)  Unenforceability.

  	
  96

  
	
   
	
  (j)  ERISA.

  	
  96

  
	
   
	
  (k)  Change of Control.

  	
  97

  
	
   
	
  (l)  Environmental
  Default.

  	
  97

  
	
   
	
  (m)  Security Documents.

  	
  97

  
	
  9.2

  	
  Rescission of
  Acceleration.

  	
  98

  
	
  9.3

  	
  Rights Not Exclusive.

  	
  98

  
	
  ARTICLE X

  	
  99

  
	
  10.1

  	
  Appointment and
  Authorization.

  	
  99

  
	
  10.2

  	
  Nature of Duties.

  	
  99

  
	
  10.3

  	
  Liability of Agent.

  	
  99

  
	
  10.4

  	
  Reliance by Agent.

  	
  100

  
	
  10.5

  	
  Notice of Default.

  	
  100

  
	
  10.6

  	
  Credit Decision.

  	
  101

  
	
  10.7

  	
  Indemnification.

  	
  101

  
	
  10.8

  	
  Agent in Individual
  Capacity.

  	
  102

  
	
  10.9

  	
  Resignation by Agent.

  	
  102

  
	
  10.10

  	
  Documentation Agent.

  	
  103

  
	
  ARTICLE XI

  	
  103

  
	
  11.1

  	
  No Waiver;
  Modifications in Writing.

  	
  103

  
	
  11.2

  	
  Intentionally
  omitted.

  	
  105

  
	
  11.3

  	
  Notices, Etc.

  	
  105

  
	
  11.4

  	
  Costs, Expenses and
  Taxes; Indemnity.

  	
  105

  
	
   
	
  (a)  Generally.

  	
  105

  
	
   
	
  (b)  Indemnification.

  	
  106

  
	
  11.5

  	
  Confirmations.

  	
  108

  
	
  11.6

  	
  Transfer of Notes.

  	
  108

  
	
  11.7

  	
  Adjustments; Setoff.

  	
  108

  
	
  11.8

  	
  Execution in
  Counterparts.

  	
  110

  
	
  11.9

  	
  
  Binding Effect;
  Assignment; Addition and Substitution of Lenders.

  	
  110

  
	
  11.10

  	
  CONSENT TO
  JURISDICTION; MUTUAL WAIVER OR JURY TRIAL.

  	
  112

  
	
  11.11

  	
  Governing Law.

  	
  113

  
	
  11.12

  	
  Registry.

  	
  113

  
	
  11.13

  	
  Severability of
  Provisions.

  	
  114

  
	
  11.14

  	
  Headings.

  	
  114

  
	
  11.15

  	
  Independent Nature of
  Lenders' Rights.

  	
  114

  
	
  11.16

  	
  Survival of
  Representations.

  	
  114

  
	
  11.17

  	
  Confidentiality.

  	
  114

  
	
  11.18 

  	
  Effectiveness.

  	
  115

  
	
  11.19

  	
  Waiver of Immunities.

  	
  115

  
	
  11.20

  	
  Concerning the
  Collateral and the Loan Documents.

  	
  115

  
	
   
	
  (a)  Authority.

  	
  115

  
	
   
	
  (b)  Release of
  Collateral.

  	
  116

  
	
   
	
  (c)  No Obligation.

  	
  117

  

 

	
  Schedules

  	
   

  	
   

  
	
  Schedule 2.1(a)(i)

  	
  --

  	
  Converted Term Loan
  Amounts

  
	
  Schedule 2.1(a)(ii)

  	
  --

  	
  Original Term Loan, Term A
  Loan and Term B Loan Amounts

  
	
  Schedule 2.9(a)(i)

  	
  --

  	
  Existing Letters of Credit

  
	
  Schedule 2.1(b)

  	
  --

  	
  Revolving Commitments

  
	
  Schedule 5.5

  	
  --

  	
  Subsidiaries

  
	
  Schedule 5.6

  	
  --

  	
  Indebtedness

  
	
  Schedule 5.7(c)

  	
  --

  	
  Liabilities

  
	
  Schedule 5.7(d)

  	
  --

  	
  Projections

  
	
  Schedule 5.22

  	
  --

  	
  Deposit Accounts

  
	
  Schedule 8.2(c)

  	
  --

  	
  Outstanding Subsidiary
  Indebtedness

  
	
  Schedule 8.3

  	
  --

  	
  Permitted Liens

  
	
  Schedule 8.6(a)

  	
  --

  	
  Certain Restrictions

  
	
  Schedule 11.3

  	
  --

  	
  Addresses for
  Notice; Payment and Lending Offices

   

  
	
  Exhibits

  	
   

  	
   

  
	
  Exhibit 2.2(a)-1(a)

  	
  --

  	
  Form of Term A Note

  
	
  Exhibit 2.2(a)-1(b)

  	
  --

  	
  Form of Term B Note

  
	
  Exhibit 2.2(a)-2

  	
  --

  	
  Form of Revolving Note

  
	
  Exhibit 2.2(a)-3

  	
  --

  	
  Form of Swing Line Note

  
	
  Exhibit 2.5

  	
  --

  	
  Form of Notice of
  Borrowing

  
	
  Exhibit 2.6

  	
  --

  	
  Form of Notice of
  Conversion or Continuation

  
	
  Exhibit 2.9

  	
  --

  	
  Form of Letter of Credit
  Request

  
	
  Exhibit 4.6(d)

  	
  --

  	
  Form of Section 4.6(d)(ii)
  Certificate

  
	
  Exhibit 6.1(a)(iii)(x)

  	
  --

  	
  Form of Borrower Security
  Agreement

  
	
  Exhibit 6.1(a)(iii)(y)

  	
  --

  	
  Form of Subsidiary
  Guarantor Security Agreement

  
	
  Exhibit 6.1(a)(iv)

  	
  --

  	
  Form of Pledge Agreement

  
	
  Exhibit 6.1(a)(v)

  	
  --

  	
  Form of Subsidiary
  Guarantee Agreement

  
	
  Exhibit 6.1(a)(vi)(i)

  	
  --

  	
  Form of Ramsey Mortgage

  
	
  Exhibit 6.1(a)(vi)(ii)

  	
  --

  	
  Form of Ramsey Mortgage
  Title Insurance Commitment

  
	
  Exhibit 6.1(f)(i)

  	
  --

  	
  Form of Opinion of
  Borrower's general counsel

  
	
  Exhibit 6.1(f)(ii)

  	
  --

  	
  Form of Opinion of
  Borrower's outside counsel

  
	
  Exhibit 6.1(f)(iii)

  	
  --

  	
  Form of Opinion of
  Borrower's outside real estate counsel

  
	
  Exhibit 6.1(i)

  	
  --

  	
  Form of Officer's
  Certificate

  
	
  Exhibit 6.2(a)(vi)(i)

  	
  --

  	
  Form of Cortland Mortgage

  
	
  Exhibit 6.2(a)(vi)(ii)

  	
  --

  	
  Form of Cortland Mortgage
  Title Insurance Commitment

  
	
  Exhibit 6.2(f)(i)

  	
  --

  	
  Form of Opinion of
  Borrower's outside counsel

  
	
  Exhibit 6.2(f)(ii)

  	
  --

  	
  Form of Opinion of
  Borrower's general counsel

  
	
  Exhibit 6.2(i)

  	
  --

  	
  Form of Officer's Certificate

  
	
  Exhibit 7.2(b)

  	
  --

  	
  Form of Certificate of
  Financial Officer

  
	
  Exhibit
  7.2(h)

  	
  --

  	
  Form of Borrowing Base Certificate

  
	
   

  

 

 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

    THIS THIRD AMENDED AND RESTATED CREDIT
AGREEMENT (the "Third Amended and Restated Credit Agreement"),
dated as of September 27, 2002, among BMC Industries, Inc., a Minnesota
corporation ("Borrower"), the several banks and other financial
institutions set forth on the signature pages hereto, DEUTSCHE BANK TRUST
COMPANY AMERICAS (formerly named Bankers Trust Company), as administrative
agent for the Lenders hereunder (in such capacity, the "Agent") and as a
Lender, and Bank One, NA, as Documentation Agent and a Lender.

W I T N E S S E T H:

    WHEREAS, Borrower, Agent, the financial
institutions party thereto and NBD Bank, as Documentation Agent, have entered
into that certain Credit Agreement dated as of May 15, 1998 (the "Original
Credit Agreement") providing for revolving credit facilities for working
capital and other corporate purposes to Borrower as the same was amended and
restated as of June 25, 1998 (as the same was previously amended prior to the
date hereof, the "First Amended and Restated Credit Agreement");

    WHEREAS, Borrower, Agent, Documentation
Agent and the financial institutions party thereto have entered into that
certain amendment to the First Amended and Restated Credit Agreement dated as
of October 12, 2001 (the "Second Amendment and Restatement Agreement");

    WHEREAS, the parties hereto wish to amend
the First Amended and Restated Credit Agreement (as previously amended by the
Second Amendment and Restatement Agreement) in the manner set forth in each
corresponding or new section below to (i) convert the Term Loans outstanding
thereunder into two new tranches of term loans; (ii) to permanently reduce the
Revolving Commitment by $25,000,000 with the resulting Revolving Commitment on
the Third Amended and Restated Effective Date being $35,000,000; and (iii) to
extend the Termination Date and the maturity date of the Term Loans to May 14,
2004 and to make certain other modifications as set forth below;

    NOW, THEREFORE, in consideration of the
premises and of the mutual covenants herein contained, the parties hereto agree
that the First Amended and Restated Credit Agreement (as amended by the Second
Amendment and Restatement Agreement) is hereby further amended by the
modifications or additions in each corresponding or new section, schedule or
exhibit set forth below:

ARTICLE I

 DEFINITIONS

    1.1    Defined Terms.  As used in this Agreement, the following
terms shall have the following meanings, such meanings to be equally applicable
to both the singular and plural forms of the terms defined:

     "Accounts
Receivable" means presently existing and hereafter arising or acquired
accounts receivable, notes, drafts, acceptances, choses in action and other
forms of obligations and receivables relating in any way to Inventory or
arising from the sale of Inventory (or goods previously sold that would be
Inventory but for the fact that such goods have been sold)  or the rendering of services or the receipt
of royalty payments by the Borrower or any of its Subsidiaries or howsoever
otherwise arising, including the right to payment of any interest or finance
charges with respect thereto and all proceeds of insurance with respect
thereto, together with all of the Borrower's and such Subsidiaries' rights as
an unpaid vendor, all pledged assets, guaranty claims, liens and security
interests held by or granted to the Borrower or such Subsidiary to secure
payment of any Accounts Receivable and all books, customer lists, ledgers,
records and files (whether written or stored electronically) relating to any of
the foregoing.

    "Acquisition": any
transaction or series of related transactions for the purpose of or resulting,
directly or indirectly, in (a) the acquisition of all or substantially all of
the assets of a Person, or of any business or division of a Person,
(b) the acquisition of in excess of 50% of the capital stock, partnership
interests, membership interests or equity of any Person, or otherwise causing
any Person to become a Subsidiary, or (c) a merger or consolidation or any
other combination with another Person (other than a Person that is a
Subsidiary) provided that the Borrower or the Subsidiary is the surviving
entity.

 "Additional Security Documents": all mortgages, pledge
agreements, security agreements and other security documents entered into
pursuant to Section 7.12 and the Security Agreement.

"Adjusted Working Capital":
the difference between (i) Consolidated Current Assets and (ii) Consolidated
Current Liabilities excluding from Consolidated Current Liabilities all
short-term borrowings, the current portion of long-term indebtedness and the
current portion of Capitalized Lease Obligations.

"Adjustment Date":
the earlier of (i) the second Business Day after receipt by Agent of the
financial statements required to be delivered by Borrower pursuant to Section 7.1
and (ii) the date five days after notice from Agent to Borrower that
Borrower has failed to deliver such financial statements; provided that if an
Adjustment Date pursuant to clause (ii) occurs, the date which is the Second
Business Day after Agent does receive such financial statements shall also be
an Adjustment Date.

"Agent": as defined in the preamble.

"Agents": the Agent
and the Documentation Agent.

"Affiliate": with
respect to any Person, any Person or group acting in concert in respect of the
Person in question that, directly or indirectly, controls or is controlled by
or is under common control with such Person. 
For the purposes of this definition, "control" (including, with
correlative meanings, the terms "controlled by" and "under common control
with") shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of management and policies of a Person, whether
through the ownership of voting securities or by contract or otherwise.

"Agent‐Related
Persons": as defined in Section 10.3.

"Aggregate Commitment":
the sum of (a) the Total Revolving Commitment, and (b) the aggregate
outstanding Term Loans of the Term Lenders.

"Aggregate Consideration":
the aggregate value of all cash, securities and other property paid in
connection with an Acquisition, including all Indebtedness of the acquired
Person repaid or assumed, directly or indirectly (by operation of law or
otherwise) in connection with the Acquisition.

"Aggregate Converted
Term Loan Amount"  means the
sum of the Converted Term Loan Amounts of all Converting Lenders on the
Restatement Date. 

"Agreement": this
Agreement, as amended, supplemented or otherwise modified from time to time.

 "Applicable Commitment Fee": at any
date, shall equal .750%.

"Applicable Margin":
means (i) at any time prior to July 1, 2003, (a) 2.250% with respect to
Revolving Loans and Term A Loans which are Base Rate Loans or Unpaid Drawings
and 3.250% with respect to Revolving Loans and Term A Loans which are
Eurodollar Loans; and (b) 4.750% with respect to Term B Loans which are Base
Rate Loans and 5.750% with respect to Term B Loans which are Eurodollar Loans;
and (ii) at any time on or after July 1, 2003, (a) 2.750% with respect to
Revolving Loans and Term A Loans which are Base Rate Loans or Unpaid Drawings
and 3.750% with respect to Revolving Loans and Term A Loans which are Eurodollar
Loans; and (b) 5.250% with respect to Term B Loans which are Base Rate Loans
and 6.250% with respect to Term B Loans which are Eurodollar Loans. 

"Asset Acquisition":
the purchase by Borrower of the assets of the Orcolite business unit, an
operating division of the Monsanto Corporation in 1998.

"Asset
Acquisition-Related and Other Special Charges": means charges taken in 1998
for accounting purposes in connection with the Asset Acquisition to reflect
write-offs, costs, expenses or other charges related to the Asset Acquisition
and other special non-recurring non cash accounting charges (provided that no
more than $2,000,000 may be cash severance payments) in 1998 not to exceed
$65,000,000 in the aggregate. 

"Asset Disposition":
any sale, lease, transfer or other disposition (or series of related sales,
leases, transfers or dispositions) of shares of Capital Stock of a Subsidiary
of Borrower (other than directors' qualifying shares), property or other assets
(each referred to for the purposes of this definition as a "disposition") by
Borrower or any of its Subsidiaries the fair market value of which, as
determined in good faith by the board of directors of Borrower or such
Subsidiary, as the case may be, exceeds $1,000,000 (other than (i) a
disposition by a Subsidiary to Borrower or by Borrower or a Subsidiary to a
Wholly-Owned Subsidiary, (ii) a disposition of property or other assets at fair
market value in the ordinary course of business, including non-exclusive
licenses to use trademarks, trade names or other similar property of Borrower
or its Subsidiaries and (iii) a disposition of obsolete property or other
assets in the ordinary course of business).

"Assignee": an
Eligible Assignee which is an "Assignee" party to an Assignment and Assumption
Agreement pursuant to Section 11.9.

"Assignment and
Assumption Agreement": an Assignment and Assumption Agreement substantially
in the form of Exhibit 11.9 annexed hereto and made a part hereof made
by any applicable Lender, as assignor and such Lender's assignee in accordance
with Section 11.9, with such modifications (including, without
limitation, additional representations, warranties and covenants by the
assignor Lender or assignee Lender) as such assignor Lender and assignee Lender
may agree to from time to time which solely affect the relative rights and/or
obligations of the assignor Lender and assignee Lender as between themselves.

"Attorney Costs": all
reasonable fees and disbursements of any law firm or other external counsel and
the reasonable allocated cost of internal legal services, including all
reasonable disbursements of internal counsel.

"Attributable Debt":
as of the date of determination thereof in connection with a Sale and Leaseback
Transaction occurring after the Closing Date, the greater of (1) the fair value
of the assets subject to such transaction (as determined in good faith by the
applicable lessee) and (2) the present value (discounted according to GAAP at
the cost of debt implied in the lease) of the obligations of the lessee for rental
payments during the term of any applicable lease.

"Available Revolving
Commitment": as to any Lender at any time, an amount in Dollars equal to
the excess, if any, of (a) such Lender's Revolving Commitment over (b) the sum
of (i) the aggregate principal amount then outstanding of Revolving Loans made
by such Lender and (ii) such Lender's Commitment Percentage of the LC
Obligations and Commitment Percentage of the Swing Line Loans then outstanding.

"Bankruptcy Code":
Title 11 of the United States Code entitled Bankruptcy as now or hereafter in
effect or any successor thereto.

"Base Rate": the
higher of (i) the Prime Lending Rate and (ii) the Federal Funds Effective Rate
plus one‐half of one percent (1⁄21⁄2%).

"Base Rate Loans":
Loans bearing interest at a rate determined by reference to the Base Rate, or
Swing Line Loans, as the context shall require.

"Board": the Board of
Governors of the Federal Reserve System (or any successor thereto).

"Borrower": as
defined in the preamble.

"Borrower Security
Agreement": as defined in Section 6.1(a)(iii).

"Borrowing": a group
of Loans of a single Type made by the Lenders or the Swing Line Lender, as
appropriate, on a single date and as to which a single Interest Period is in
effect.

"Borrowing Base" means at any time the sum of (a)
eighty-five percent (85%) of the outstanding amount of Eligible Receivables and
(b) fifty-five percent (55%) of the value of Eligible Inventory, in each case
as determined from the Borrowing Base Certificate most recently delivered and
updated pursuant to subsection 7.2(h); provided, however,
that the Borrowing Base shall be deemed to be no more than $30 million until
delivery of the Field Audit. 

 "Borrowing Base
Certificate" has the meaning assigned to that term in subsection 7.2(h).

 "Business Day": a day other than a Saturday, Sunday or
other day on which commercial banks in New York City are authorized or required
by law to close; provided, however, that when used in connection
with 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.

"Capital Expenditures":
without duplication, with respect to any Person, any amounts expended or
Indebtedness incurred during or in respect of a period for any purchase or
other acquisition for value of any asset that should be classified on a
consolidated balance sheet of such Person prepared in accordance with GAAP as a
fixed or capital asset including, without limitation, the direct or indirect
acquisition of such assets or improvements by way of increased product or
service charges, offset items or otherwise, and shall include Capitalized Lease
Obligations and shall include amounts expended, incurred or obligated to be
expended during or in respect of a period for any Permitted Acquisition or
Permitted Investment regardless of whether such Permitted Acquisition or
Permitted Investment would be classified as fixed or capital assets on a
consolidated balance sheet of such Person prepared in accordance with GAAP.

"Capital Lease": as
applied to any Person, any lease of any property (whether real, personal or
mixed) by that Person as lessee which would, in conformity with GAAP, be
required to be accounted for as a capital lease on the balance sheet of that
Person.

"Capital Stock": with
respect to any Person, any and all shares, interests, participations, rights in
or other equivalents (however designated) of such Person's capital stock,
partnership interests, membership interests or other equivalent interests and
any rights (other than debt securities convertible into or exchangeable for
capital stock or such interests), warrants or options exchangeable for or
convertible into such capital stock or other interests.

"Capitalized Lease
Obligation": at the time any determination thereof is to be made, the
amount of the liability in respect of a Capital Lease which would at such time
be so required to be capitalized on such a balance sheet in accordance with
GAAP.

"Cash":
means money, currency or the available credit balance in a Deposit Account.

"Cash Equivalents":
Investments of the type specified in clauses (i), (ii), (iii), (iv)  and (ix) of the definition of "Permitted
Investments".

"Change of Control":
(i) the sale, lease or transfer of all or substantially all of Borrower's
assets to any Person or group (as such term is used in Section 13(d)(3) of the
Exchange Act), (ii) the liquidation or dissolution of Borrower, (iii) any
person or group of persons (within the meaning of the Exchange Act) acquiring
beneficial ownership (within the meaning of Rule 13d-3 promulgated by the SEC
under the Exchange Act) of 20% or more of the issued and outstanding shares of
Borrower's Voting Securities; or (iv) a majority of the directors of the
Borrower are Persons other than Persons (A) for whose election proxies have
been solicited by Borrower's board of directors or (B) who are then serving as
directors appointed by Borrower's board of directors to fill vacancies on the
Board caused by death or resignation (but not by removal) or to fill new
created directorships.

"Closing Date" May
15, 1998.

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

"Collateral"
means all "Collateral" as defined in each of the Security Documents.

"Collateral Account": as defined
in Section 4.3(a).

"Collateral
Agent": the Agent acting as collateral agent for the Secured Creditors.

"Commercial
Letter of Credit": means any letter of credit or similar instrument issued
for the account of Borrower pursuant to this Agreement for the purpose of supporting
trade obligations of Borrower or any of its Domestic Subsidiaries in the
ordinary course of business.

 "Committed Loan": any Revolving Loan, Term Loan or Swing
Line Loan.

"Commitment": as to
any Lender at any time, the aggregate of such Lender's outstanding Revolving
Commitment and its Swing Line Commitment.

"Commitment Percentage": means, as to any Lender,
(a) in respect of a particular Loan and/or Commitment, (i) at any time at which
the Commitments in respect of such Loan remain outstanding, the percentage
equivalent (expressed as a decimal, rounded to the ninth decimal place) at such
time of such Lender's Commitment in respect of such Loan divided by the
combined Commitments in respect of such Loan; and (ii) after the termination of
the Commitments in respect of such Loan or in respect of any Term Loan, the
percentage equivalent (expressed as a decimal, rounded to the ninth decimal
place) at such time of the principal amount outstanding of such Loans held by
such Lender divided by the aggregate principal amount outstanding of such Loans
held by all Lenders, and (b) in respect of all Loans and/or Commitments, (i) at
any  time at which the Aggregate
Commitments (or any portion thereof) remains outstanding, the percentage
equivalent (expressed as a decimal, rounded to the ninth decimal place) at such
time of the sum of such Lender's Revolving Commitments and such Lender's
outstanding Term Loans divided by the Aggregate Commitment, and (ii) after the
termination of the Revolving Commitments, the percentage equivalent (expressed
as a decimal, rounded to the ninth decimal place) at such time of the principal
amount of such Lender's outstanding Loans and LC Obligations divided by the
aggregate principal amount of the outstanding Loans and LC Obligations of all
of the Lenders.  

"Commitment Period":
the period from and including the date hereof to but not including the
Termination Date.

"Commodity Price
Protection Agreement": any Contractual Obligation or other arrangement
designed to protect Borrower or any of its Subsidiaries from fluctuations in
the price of commodities.

 "Consolidated Capital Expenditures": for any period, the
aggregate of all Capital Expenditures by Borrower and its Subsidiaries during
that period that, in conformity with GAAP, are included in "additions to
property, plant or equipment" or comparable items reflected in the consolidated
statement of cash flows of Borrower and its Subsidiaries.

"Consolidated Current
Assets": with respect to any Person, as at the time any determination thereof
is to be made, the amount, without duplication, that is classified on a
consolidated balance sheet of such Person and its Subsidiaries as the
consolidated current assets of such Person and its Subsidiaries in accordance
with GAAP.

"Consolidated Current
Liabilities": with respect to any Person, as at the time any determination
thereof is to be made,  any indebtedness
(other than the Indebtedness hereunder) that is classified as consolidated
current liabilities on a consolidated balance sheet of such Person and its
Subsidiaries in accordance with GAAP.

"Consolidated Debt":
indebtedness for money borrowed of Borrower and its Subsidiaries that should be
shown as a liability on a consolidated balance sheet of Borrower and its
Subsidiaries prepared in accordance with GAAP plus, without duplication,
the amount of Indebtedness of the type described in clauses (iii), (v), (ix)
and (x) of the definition thereof plus, without duplication,
Attributable Debt.

"Consolidated EBITDA":
without duplication for any Person for any period for which such amount is
being determined, Consolidated Net Income or Consolidated Net Loss for such
period minus Second Quarter 2001 Deferred Tax Charges for such period,
if any, plus the sum of the amounts for such period of (i) Consolidated
Interest Expense, (ii) provision for taxes based on income, (iii) depreciation
expense, and (iv) amortization expense minus any non-cash non-operating income
for such period to the extent included in Consolidated Net Income or
Consolidated Net Loss and excluding any gain or loss recognized in respect of
post-retirement benefits as a result of the application of FASB 106 and any
foreign currency translation adjustments as a result of the application of FASB
52, all as determined on a consolidated basis for such Person and its
consolidated Subsidiaries in accordance with GAAP.  For purpose of this definition, "Consolidated EBITDA" shall be
calculated after giving effect on a pro forma basis to any
Acquisition as if such Acquisition occurred on the first day of the applicable
period on the same basis as is required in clauses (A) through (C) for the pro
forma test under clause (iii) of the definition of Permitted
Acquisition.

"Consolidated Interest
Expense": with respect to any Person, for any period for which such amount
is being determined, total interest expense of such Person and its Subsidiaries
on a consolidated basis in accordance with GAAP for such period.

"Consolidated Net Income"
and "Consolidated Net Loss": for any Person for any period for which such
amount is being determined, the net income (loss) of such Person and its
consolidated Subsidiaries during such period determined on a consolidated basis
for such period taken as a single accounting period in accordance with GAAP,
provided that in making such determination there shall be excluded any effect
of (i) income (or loss) of any Person (other than a consolidated Subsidiary of
such Person) in which any other Person (other than such Person or any of its
consolidated Subsidiaries) has a joint interest, except to the extent of the
amount of dividends or other distributions actually paid to such Person or any
of its consolidated Subsidiaries by such other Person during such period, (ii)
the income (or loss) of any Person accrued prior to the date it becomes a
consolidated Subsidiary of such Person or is merged into or consolidated with
such Person or any of its consolidated Subsidiaries or the Person's assets are
acquired by such Person or any of its consolidated Subsidiaries, (iii) the
income of any consolidated Subsidiary of such Person to the extent that the
declaration or payment of dividends or similar distributions by that
consolidated Subsidiary of the income is not at the time permitted by operation
of the terms of its charter or any agreement, instrument, judgment, decree,
order, statute, rule or governmental regulation applicable to that consolidated
Subsidiary, (iv) Asset Acquisition-Related and Other Special Charges, (v) Third
Quarter 2001 Non-Recurring Charges; (vi) Restructuring Charges; (vii) the
Second Quarter 2001 Deferred Tax Charges; and (viii) to the extent deducted
from determining Consolidated Net Income, any non-cash charge required as a
result of the application of FASB 142.

"Consolidated Net Worth":
of a Person means total stockholders' equity of such Person and its
Subsidiaries on a consolidated basis in accordance with GAAP plus,
without duplication, Asset Acquisition-Related and Other Special Charges plus,
without duplication, the Second Quarter 2001 Deferred Tax Charges plus,
without duplication, Third Quarter 2001 Non-Recurring Charges plus,
without duplication, Restructuring Charges plus, without duplication and
only to the extent deducted in the determination of stockholder's equity, any
non-cash charge required as a result of the application of FASB 142; provided,
however, notwithstanding anything in the definitions thereof to the
contrary, Asset Acquisition-Related and Other Special Charges, Second Quarter
2001 Deferred Tax Charges, Third Quarter 2001 Non-Recurring Charges and
Restructuring Charges shall be considered in calculating Consolidated Net Worth
for purposes of Section 8.1(a) on an ongoing basis without duplication
and only to the extent previously deducted in the determination of
stockholder's equity.

"Contaminant": any
material with respect to which any Environmental Law imposes a duty or
obligation, including without limitation any pollutant, contaminant (as those
terms are defined in 42 U.S.C. §9601(33)), toxic pollutant (as that term is
defined in 33 U.S.C. §1362(13)), hazardous substance (as that term is defined
in 42 U.S.C. §9601(14)), hazardous chemical (as that term is defined by 29 CFR § 1910.1200(c)), hazardous waste (as that term is defined in 42 U.S.C.
§
6903(5)), or any state or local equivalent of such laws and regulations,
including, without limitation, radioactive material, special waste,
polychlorinated biphenyls, asbestos, petroleum, including crude oil or any
petroleum-derived substance, (or any fraction thereof), waste, or breakdown or
decomposition product thereof, or any constituent of any such substance or
waste, including but not limited to polychlorinated biphenyls and asbestos.

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

"Converted Term Loan
Amount": as defined in Section 2.1(a)(i).

"Converting Lender"
means each Lender which executed the Second Amendment and Restatement Agreement
on or before the Restatement Date and each Lender who delivered a Term Loan
Conversion Notice to the Agent on or before the Restatement Date.

"Cortland Mortgage":
the form of Cortland Mortgage attached hereto as Exhibit 6.2(a)(vi)
covering the Cortland, New York property of the Borrower as amended, restated,
supplemented or otherwise modified from time to time.

"Cortland Mortgage Policy":
any mortgage insurance policies, "marked up" mortgage title insurance
commitment, items described in Exhibit 6.2(a)(vi)(ii) hereto or similar
documents delivered pursuant to Section 5.19(b).

"Credit
Event": the making of any Loan or the issuance of any Letter of Credit.

"Credit
Party": Borrower, each Subsidiary Guarantor and any guarantor which may
hereafter enter into a guarantee agreement with respect to the Obligations.

"Currency Protection
Agreement": any foreign exchange contract, currency swap agreement, or
other financial agreement or arrangement to which Borrower or any of its
Subsidiaries is a party that is designed to protect Borrower or any of its
Subsidiaries against fluctuations in currency values.

"DBTCA": Deutsche
Bank Trust Company Americas (formerly named Bankers Trust Company).

"Debts": all
liabilities, whether matured or unmatured, liquidated or unliquidated,
absolute, fixed or contingent.

"Default Rate": a
variable rate per annum which shall be two percent (2%) per annum plus
either (i) the then applicable interest rate hereunder in respect of the amount
on which the Default Rate is being assessed, or (ii) if there is no such
applicable interest rate, the Base Rate plus the Applicable Margin, but in no
event in excess of that permitted by applicable law.

"Defaulting Lender":
any Lender with respect to which a Lender Default is in effect.

"Deposit Account"
means any account held by a Person at a bank or other financial institution
into which such Person deposits cash, checks, drafts or other similar items of
payment relating to or constituting payments made in respect of any and all
Collateral.

"Documents": the Loan
Documents.

"Dollars" and "$":
dollars in lawful currency of the U.S.

 "Domestic Subsidiary": any Subsidiary of Borrower that is
not a Foreign Subsidiary.

"Drawing": as defined in Section 2.9(d)(ii).

"Effective Date": the
effective date of the applicable Assignment and Assumption Agreement, as
defined therein.

 "Eligible Assignee": (i) a commercial bank organized under
the laws of the U.S., or any State thereof, (ii) a commercial bank organized
under the laws of any other country which is a member of OECD, or a political
subdivision of any such country; provided, however, that such
bank is acting through a branch or agency located in the country in which it is
organized or another country which is also a member of the OECD or the Cayman
Islands, (iii) the central bank of any country which is a member of the OECD,
(iv) a finance company or other financial institution or fund (whether a
corporation, partnership, trust or other entity) that is engaged in making,
purchasing or otherwise investing in commercial loans in the ordinary course of
its business, (v) an insurance company organized under the laws of the U.S. (or
any State thereof), (vi) a savings bank or savings and loan association
organized under the laws of the U.S., or any State thereof, (vii) any Lender
party to this Agreement, (viii) any Affiliate of any Lender party to this
Agreement, and (ix) any other Person approved by Agent and Borrower, such
approval not to be unreasonably withheld; provided, however, that
an affiliate of Borrower shall not qualify as an Eligible Assignee.

"Eligible Inventory" means the Inventory of the
Borrower and its Domestic Subsidiaries (valued at the lower of cost (determined
on a first-in-first-out basis) or market) located in the continental United
States as to which (a) the Borrower or a Domestic Subsidiary of the Borrower
has acquired title, (b) the Collateral Agent has a first (subject only to
statutory or common law non-consensual Liens constituting Permitted Liens) and
perfected security interest and (c) such Person shall have furnished to the
Agent information adequate for purposes of identification at times and in form
and substance as may be reasonably requested by the Agent; provided, however,
that such Inventory shall not constitute Eligible Inventory (i) if and when the
Borrower or such Subsidiary sells it, otherwise passes title thereto or
consumes it, (ii) if the Collateral Agent releases its security interest
therein, or (iii) to the extent that it (A) is obsolete, not in good condition
or not either currently useable or currently salable in the ordinary course of
the Borrower's or such Subsidiary's business, (B) is produced in violation of
the Fair Labor Standards Act and subject to the so-called "hot goods" provision
contained in Title 29, §215(a) (1) of the United States Code, (C) is Inventory
consisting of packaging material or supplies, (D) is Inventory consisting of
work in progress, (E) is Inventory held for consumption (other than raw
materials) by the Borrower or such Subsidiary and not for sale or lease in the
ordinary course of business, (F) is Inventory which is subject to a Lien in
favor of any Person other than the Collateral Agent (other than statutory or
common law non-consensual Liens constituting Permitted Liens), (G) constitutes
Inventory which is not located either (i) on the Borrower's or such
Subsidiary's owned premises in the United States of America, (ii) on any leased
premises in the United States of America provided that on any date occurring
sixty days or more following the Third Amended and Restated Effective Date,
Inventory under this subclause (G)(ii) shall, subject to the other provisions
of this definition, constitute Eligible Inventory only in the event the same
exists on leased premises in the United States of America where the landlord
thereof has consented in writing to the Collateral Agent's prior Lien in such
Inventory and the Collateral Agent's right to enter such premises and take
possession and remove such Inventory pursuant to a landlord access and lien
waiver in form and substance reasonably satisfactory to the Agent or (iii) in
warehouses or with bailees in the United States of America where the
warehousemen or bailee has consented in writing to the Collateral Agent's prior
Lien in such Inventory and the Collateral Agent's right to enter such premises
and take possession of and remove such Inventory, pursuant to an access and
lien waiver in form and substance satisfactory to the Administrative Agent, (H)
constitutes Inventory which is evidenced by an Eligible Receivable, or (I) is
Inventory which is not in full conformity with the representations made by the
Borrower and the Borrower's Subsidiaries with respect thereto in this Agreement
or the Security Documents; provided, further, that nothing in the
preceding clauses (F) or (G) shall exclude any Inventory from the definition of
Eligible Inventory to the extent such Inventory would otherwise be considered
Eligible Inventory hereunder (excluding the effect of such clauses (F) and (G))
and is Inventory consigned for sale by the Borrower or one of its Domestic
Subsidiaries to a third party for which the Borrower or such Domestic
Subsidiary has taken all steps reasonably required by the Collateral Agent to
perfect Collateral Agent's security interest in such consigned Inventory
(including without limitation completing all filings and notices required by
Section 9-324 of the Uniform Commercial Code required to protect the Borrower's
or such Domestic Subsidiary's interest in such consigned Inventory against
lenders of the applicable consignee). 
Any Inventory which is Eligible Inventory at any time, but which
subsequently fails to meet any of the foregoing requirements, shall forthwith
cease to be Eligible Inventory until such time as it once again meets all of
the foregoing requirements.

"Eligible Receivables" means the Accounts Receivable
of the Borrower and its Domestic Subsidiaries located in the continental United
States as to which (a) the Collateral Agent has a first (subject only to
statutory or common law non-consensual Liens constituting Permitted Liens)
perfected security interest and (b) the Borrower shall have furnished to the
Agent information adequate for purposes of identification at times and in form
and substance as may be reasonably requested by the Agent; provided, however,
that such Accounts Receivable shall not constitute Eligible Receivables if they
(i) by their terms are not payable within ninety (90) days after the date of
the applicable invoice with respect to shipped goods or they remain unpaid
ninety (90) days after the original date of the applicable invoice; (ii) are
Accounts Receivable owing by a single Accounts Receivable debtor in the event
that fifty percent (50%) or more of the balance of Accounts Receivable owing by
such Accounts Receivable debtor is ineligible by reason of the criteria set
forth in clause (i) immediately preceding; (iii) are Accounts Receivable with
respect to which the Accounts Receivable debtor is an Affiliate of the Borrower
or such Subsidiary or a director, officer of employee of the Borrower or of
such Subsidiary or such Affiliates; (iv) are Accounts Receivable with respect
to which the Accounts Receivable debtor is not a resident of the United States
of America other than such foreign account receivable secured by letters of
credit or sight drafts reasonably acceptable to the Agent; provided that
such letter of credit or sight draft is delivered and pledged to the Collateral
Agent as additional Collateral; (v) are Accounts Receivable arising with
respect to goods which have not been shipped or arising with respect to
services which have not been fully performed; (vi) are Accounts Receivable
which are not invoiced (and dated as of the date of such invoice) and sent to
the Accounts Receivable debtor within a reasonable time consistent with
reasonable business practices; (vii) are Accounts Receivable with respect to
which the Borrower knows, or should reasonably know, that the Accounts
Receivable debtor is the subject of a bankruptcy or a similar insolvency
proceeding or has made an assignment for the benefit of creditors or whose
assets have been conveyed to a receiver or trustee other than Accounts
Receivable of such debtor arising after an order for relief has been entered in
a case under Title 11 of the United States Code to the extent the payment of
such Accounts Receivable has been approved in such case; (viii) are Accounts
Receivable with respect to sales made on a bill-and-hold, guaranteed sale,
sale-and-return, sale on approval, consignment or similar basis; (ix) are Accounts
Receivable which are or may reasonably be expected to become subject to any
right of setoff by the Accounts Receivable debtor but only (A) to the extent of
such right of setoff and (B) if such Accounts Receivable debtor has not entered
into an agreement with the Agent which is acceptable to the Agent with respect
to the wavier of rights of setoff; or (x) are not in conformity with the
representations and warranties made by the Borrower and the Borrower's  Subsidiaries with respect thereto in this
Agreement or any Security Document; provided, further, that such
Accounts Receivable which fail to meet any of the foregoing requirements shall
be excluded from the calculation of Eligible Receivables without
duplication.  Any Account Receivable
which is at any time an Eligible Receivable, but which subsequently fails to
meet any of the foregoing requirements, shall forthwith cease to be an Eligible
Receivable until such time as it once again meets all of the foregoing
requirements.

"Environmental Laws":
any and all foreign, Federal, state, local or municipal laws, rules, orders,
regulations, statutes, ordinances, codes or decrees of any Governmental
Authority or other Requirements of Law regulating, relating to or imposing
liability or standards of conduct concerning protection of human health or the
environment, as now or may at any time hereafter be in effect that are
applicable to the Borrower or its Subsidiaries.

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

"ERISA Affiliate":
each trade or business (whether or not incorporated) which together with
Borrower or a Subsidiary of Borrower would be deemed to be a "single employer"
within the meaning of Section 4001(b)(1) of ERISA or would be included in a
"controlled group of corporations," a group of "trades or businesses under
common control" or an "affiliated service group" within the meaning of Section
414(b), (c), (m) or (o) of the Code. 
Unless otherwise qualified, all references to an "ERISA Affiliate" in
this Agreement shall refer to an ERISA Affiliate of Borrower or any Subsidiary.

"Eurocurrency Reserve
Requirements": for any day as applied to a Eurodollar Loan, the aggregate
(without duplication) of the maximum rates (expressed as a decimal fraction) of
reserve requirements in effect on such day (including, without limitation,
basic, supplemental, marginal and emergency reserves under any regulations of
the Board or other Governmental Authority having jurisdiction with respect
thereto) dealing with reserve requirements prescribed for Eurocurrency funding
(currently referred to as "Eurocurrency liabilities" in Regulation D of such
Board) maintained by a member bank of the Federal Reserve System.

"Eurodollar Borrowing":
a Borrowing comprised of Eurodollar Loans.

"Eurodollar Loan":
any Loan bearing interest at a rate determined by reference to the Eurodollar
Rate.

"Eurodollar Rate":
the arithmetic average (rounded upwards to the nearest 1/16 of 1%) of the
offered quotations, if any, to first class banks in the Eurodollar market by
DBTCA for Dollar deposits of amounts in immediately available funds comparable
to the principal amount of the applicable Eurodollar Loan for which the
Eurodollar Rate is being determined with maturities comparable to the Interest
Period for which such Eurodollar Rate will apply, as of approximately 10:00
A.M. (New York City time) on the applicable Interest Rate Determination
Date.  The determination of the
Eurodollar Rate by Agent shall be conclusive and binding on Borrower absent
demonstrable error.

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

  

                  
Eurodollar
Rate                        
          

1.00 ‐ Eurocurrency
Reserve Requirements

  

"European
Reorganization" has the meaning assigned to that term in that certain
Consent, Waiver and Fourth Amendment to Credit Agreement dated as of December
21, 1999 by and among the Borrower, the Agent and the Lenders signatory
thereto.

"Event of Default":
any of the events specified in Section 9.1; provided, however,
that any requirement for the giving of notice, the lapse of time, or both, or
any other condition, has been satisfied.

"Excess Cash Flow":
for any period, the excess of (i) the sum of (without duplication) (A)
Consolidated Net Income for such period, plus (B) the amount of all
non-cash charges (including, without limitation or duplication, depreciation,
amortization and non-cash (including without limitation any original issue
discount or pay-in-kind interest expense) interest expense) included in
determining Consolidated Net Income for such period, plus (C) the
decrease, if any, in Adjusted Working Capital from the first day to the last
day of such period, plus (D) provisions for taxes appearing on an income
statement of Borrower and its Subsidiaries for such period, over (ii) the sum
(without duplication) of (A) any non-cash credits (including from sales of
assets) included in determining Consolidated Net Income for such period, plus
(B) gains from sales of assets included in determining Consolidated Net Income
for such period, plus (C) the aggregate amount of Capital Expenditures
(excluding Capital Expenditures made utilizing insurance proceeds from Recovery
Events or financed through Indebtedness (other than Indebtedness under this
Agreement)), plus (D) the aggregate principal amount of permanent
principal payments of Indebtedness for borrowed money of Borrower and its
Subsidiaries (other than (1) repayment of Indebtedness with proceeds of
issuance of other Indebtedness or equity or equity contributions or with Net
Sale Proceeds or Recovery Events and (2) repayment of Loans, provided
that repayments of Loans shall be deducted in determining Excess Cash Flow if
such repayments were (x) required as a result of a Scheduled Term Repayments
under Section 4.4(e) or were repayments of Loans on the Termination
Date, (y) made as a voluntary prepayment with internally generated funds (but
in the case of a voluntary prepayment of Revolving Loans or Swing Line Loans,
only to the extent accompanied by a voluntary permanent reduction to the Total
Revolving Commitment) or (z) made with Net Sale Proceeds from any Asset
Disposition but only to the extent that any gain from such Asset Disposition
has been included in the determination of Consolidated Net Income for such
period) during such period, plus (E) non-cash charges added back in a
previous period pursuant to clause (i)(B) above to the extent any such charge
has become a cash item in the current period, plus (F) the increase, if
any, in Adjusted Working Capital from the first day to the last day of such
period, plus (G) taxes paid by Borrower and its Subsidiaries during such
period, plus (H) the principal portion of Capitalized Lease Obligations
paid by Borrower and its Subsidiaries during such period.

"Excess Cash Flow Period":
with respect to the repayment required on each Excess Cash Payment Date, the
immediately preceding Fiscal Year of Borrower; provided, however,
that with respect to the Fiscal Year ended December 31, 2002, there shall be
used in determining Excess Cash Flow for such Fiscal Year only the period
between the Third Amended and Restated Effective Date and December 31, 2002.

 "Excess Cash Payment Date": the date occurring 95 days
after the last day of a Fiscal Year of Borrower (beginning with its Fiscal Year
ending on December 31, 2002).

"Exchange Act": the
Securities Exchange Act of 1934, as amended and codified in U.S.C. 78a et
seq. and as hereafter amended from time to time.

"Exchangeable Stock":
any Capital Stock which is exchangeable or convertible into another security
(other than Capital Stock of Borrower which is neither Exchangeable Stock nor
Redeemable Stock).

"Existing Credit
Agreements": that certain Credit Agreement among BMC Industries, Inc.,
various Banks and Norwest Bank Minnesota, National Association, dated June 5,
1996, as amended to date, and all agreements relating to such loan agreement,
including, without limitation, any and all guarantees, pledge agreements and
security agreements.

 "Facility": any of the credit facilities established under
this Agreement.

"Facing Agent": means
(i) for Standby Letters of Credit, DBTCA and (ii) for Commercial Letters of
Credit any Revolving Lender, other than DBTCA, which at the request of the
Borrower and with the written approval of the Agent, agrees to issue Commercial
Letters of Credit.

"Federal Funds Effective
Rate": for any period, a fluctuating interest rate per annum equal for each
day during such period to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers, as published for such day (or, if such day is not a
Business Day, for the next preceding Business Day) by the Federal Reserve Bank
of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations for such day on such transactions
received by DBTCA, as Agent, from three Federal funds brokers of recognized
standing selected by it.

"Field Audit":
as defined in Section 7.15.

"Financial Officer":
with respect to any Person, the chief financial officer, principal accounting
officer, a financial vice president, treasurer or assistant treasurer of such
Person.

"Foreign Subsidiary":
a Subsidiary of Borrower that is incorporated under the laws of a jurisdiction
other than any State of the U.S. or the District of Columbia.

"GAAP": generally
accepted accounting principles in the U.S. as in effect from time to time.  If any changes in GAAP or the application
thereof from that used in the preparation of the financial statements referred
to in Section 7.1(a) hereof occur after the Closing Date and such changes
result in a material change in the calculation of any financial covenants or
restrictions set forth in this Agreement, then the parties hereto agree to
enter into and diligently pursue negotiations in order to amend such financial
covenants and restrictions so as to equitably reflect such changes, with the
desired result that the criteria for evaluating the financial condition and
results of operations of Borrower and its Subsidiaries shall be the same after
such changes as if such changes had not been made.

"Governmental Authority":
any nation or government, any state or other political subdivision thereof and
any entity exercising executive, legislative, judicial, regulatory or
administrative functions of government.

"Guarantee
Obligations": as to any Person, without duplication, any direct or indirect
obligation of such Person guaranteeing or intended to guarantee any
Indebtedness, Capital Lease or operating lease, dividend or other obligation
("primary obligations") of any other Person (the "primary obligor") in any
manner, whether directly or indirectly, including, without limitation, any
obligation of such Person, whether or not contingent:  (i) to purchase any such primary obligation or any property constituting
direct or indirect security therefor; (ii) to advance or supply funds (a) for
the purchase or payment of any such primary obligation, or (b) to maintain
working capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency of the primary obligor; (iii) to purchase
property, securities or services primarily for the purpose of assuring the
owner of any such primary obligation of the ability of the primary obligor to
make payment of such primary obligation; or (iv) otherwise to assure or hold
harmless the owner of such primary obligation against loss in respect thereof; provided,
however, that the term Guarantee Obligation shall not include any
endorsements of instruments for deposit or collection in the ordinary course of
business.  The amount of any Guarantee
Obligation of any Person at any time shall be deemed to be an amount equal to
the lesser at such time of (y) the stated or determinable amount of the primary
obligation in respect of which such Guarantee Obligation is made or (z) the
maximum amount for which such Person may be liable pursuant to the terms of the
instrument embodying such Guarantee Obligation; or, if not stated or
determinable, the maximum reasonably anticipated liability (assuming full
performance) in respect thereof.     

"Indebtedness": as applied to any Person (without duplication):

(i)     all indebtedness of such Person for
borrowed money;

(ii)     the deferred and unpaid
balance of the purchase price of assets or services (other than trade payables
and other accrued liabilities incurred in the ordinary course of business that
are not overdue by more than 90 days unless being contested in good faith)
which purchase price is (y) due more than six months from the date of
incurrence of the obligation in respect thereof or (z) evidenced by a note or a
similar written instrument;

(iii)    that portion of obligations
of such Person with respect to Capital Leases which is required to be
classified as a liability on a balance sheet in accordance with GAAP;

(iv)    all indebtedness secured by
any Lien on any property owned by such Person, whether or not such indebtedness
has been assumed by such Person or is nonrecourse to such Person;

(v)     notes payable and drafts accepted
representing extensions of credit whether or not representing obligations for
borrowed money (other than such notes or drafts for the deferred purchase price
of assets or services which does not constitute Indebtedness pursuant to clause
(ii) above);

(vi)    indebtedness or obligations
of such Person, in each case, evidenced by bonds, notes or similar written
instrument;

(vii)    the face amount of all letters of credit
and bankers' acceptances issued for the account of such Person, and without
duplication, all drafts drawn thereunder other than, in each case, commercial
or standby letters of credit or the functional equivalent thereof issued in
connection with performance, bid or advance payment obligations incurred in the
ordinary course of business, including, without limitation, performance
requirements  under workers compensation
or similar laws;

(viii)    all obligations of such Person under
Interest Rate Protection Agreements or Currency Protection Agreements;

(ix)    Guarantee Obligations of such Person; and

(x)     the principal balance outstanding under
any synthetic lease, tax retention operation lease, off-balance sheet loan or
similar off-balance sheet financing product to which such Person is a party,
where such transaction is considered borrowed money indebtedness for tax
purposes but is classified as an operating lease in accordance with GAAP.

"Insolvent": with
respect to any Person, that the present fair saleable value of the assets of
such Person is less than the amount that will be required to pay the probable
liability on existing Debts of such Person or such Person is unable to pay its
Debts, as such Debts become absolute and matured.

"Intellectual Property": as defined in Section 5.13.

"Intercompany
Indebtedness": Indebtedness of Borrower or any of its Subsidiaries which,
in the case of Borrower, is owing to any such Subsidiary and which, in the case
of any Subsidiary of Borrower, is owing to Borrower or any of its other
Subsidiaries.

"Interest Payment Date":
(a)  as to any Base Rate Loan, the last
Business Day of each March, June, September and December to occur while such
Loan is outstanding and the date on which all of the Loans hereunder are paid
in full, (b) as to any Eurodollar Loan, the last day of the Interest Period
applicable thereto and (c) as to any Eurodollar Loan having an Interest Period
longer than three months, each day which is three months after the first day of
the Interest Period applicable thereto; provided, however, that,
in addition to the foregoing, each of (x) the date upon which the Commitments
have been terminated and the Loans have been paid in full and (y) the Termination
Date shall be deemed to be an "Interest Payment Date" with respect to any
interest which is then accrued hereunder.

"Interest Period": as defined in Section 3.4.

"Interest Rate
Determination Date": the date for calculating the Eurodollar Rate for an
Interest Period, which date shall be the second Business Day prior to the first
day of the related Interest Period for such Eurodollar Loan.

"Interest Rate Protection
Agreement": any interest rate swap agreement, interest rate cap agreement
or other financial agreement or arrangement designed to protect Borrower or any
of its Subsidiaries against fluctuations in interest rates.

"Inventory" means, with respect to the Borrower and
its Subsidiaries, inclusively, all goods, merchandise and other personal property
wherever located, now owned or hereafter acquired by the Borrower or any of its
Subsidiaries of every kind or description which are held for sale or lease or
are furnished or to be furnished under a contract of service or are raw
materials, work-in-process or materials used or consumed or to be used or
consumed in the Borrower's or any of its Subsidiaries' business.

"Investment": as
applied to any Person, any direct or indirect purchase or other acquisition for
value by that Person of stock or other securities of any other Person (or a
beneficial interest therein), or a capital contribution by that Person to any
other Person, or any direct or indirect loan or advance to any other Person, or
any purchase by that Person of all or a significant part of the assets of a
business conducted by another Person or any purchase by that Person of a
futures contract or such person otherwise becoming liable for the purchase or
sale of currency or other commodity at a future date in the nature of a futures
contract.  The amount of any Investment
by any Person shall be the original Investment (including the amount of any
liability assumed to the extent that such liability would be reflected on a
balance sheet prepared in accordance with GAAP) plus the cost of all additions
thereto, without any adjustments for increases or decreases in value, or
write-ups, write-downs or write-offs with respect to such Investment.

"IRS": the United
States Internal Revenue Service, or any successor or analogous U.S.
Governmental Authority.

"Landlord Consent"
means a letter in favor of Agent and the Lenders which is executed by each
lessor of any material leased facility of Borrower or any Subsidiary of
Borrower at which Collateral may now or in the future be located, in form and
substance reasonably satisfactory to the Agent and consistent with the
standards outlined in subclause(G)(ii) of the definition of Eligible
Inventory.

 "LC
Commission": as defined in Section 2.9(e)(ii).

"LC Obligations": at
any time, an amount equal to the sum of (a) the aggregate Stated Amount of the
then outstanding Letters of Credit and (b) the aggregate amount of Unpaid
Drawings (in each case without duplication). 
The LC Obligation of any Lender at any time shall mean its Pro Rata
Share of the aggregate LC Obligations outstanding at such time.

"LC Participant": as defined in Section
2.9(e).

"LC Supportable
Indebtedness": (i) obligations of Borrower or its Subsidiaries incurred in
the ordinary course of business with respect to insurance obligations and
workers' compensation, surety bonds and other similar statutory obligations and
(ii) such other obligations of Borrower or any of its Subsidiaries as are
reasonably acceptable to Agent and the respective Facing Agent and otherwise
permitted to exist pursuant to the terms of this Agreement.

"Lender Default": (i)
the refusal (which has not been retracted) of a Lender to meet its obligation
to make available its portion of any Borrowing or to fund its portion of any
unreimbursed payment under Section 2.1(b)or (ii) a Lender having
notified in writing Borrower and/or Agent that it does not intend to comply
with its obligations under Section 2.1 (whether or not as a result of
any takeover of such Lender by any regulatory authority or agency).

"Lenders": means
those financial institutions from time to time party to the Agreement.

"Lending Office":
with respect to each Lender, the office specified on such Lender's signature
page or in the applicable Assignment and Assumption Agreement with respect to
each Type of Loan, or such other office as such Lender may designate in writing
from time to time to Borrower and Agent with respect thereto.

"Letter of Credit":
means any Standby Letter of Credit or Commercial Letter of Credit issued by a
Facing Agent hereunder, and any amendments thereto or replacements thereof,
pursuant to Section 2.9.

"Letter of Credit Payment":
as applicable (a) all payments made by the Facing Agent pursuant to either a
draft or demand for payment under a Letter of Credit or (b) all payments made
by the Lenders to the Facing Agent in respect thereof.

"Letter of Credit Request": as
defined in Section 2.9(c).

"Lien": any judgment
lien or execution, attachment, levy, distraint or similar legal process and any
mortgage, pledge, security interest, encumbrance, lien, charge or deposit
arrangement (other than a deposit in the ordinary course of business and not
intended as security) of any kind (including, without limitation, any
conditional sale or other title retention agreement or lease in the nature
thereof, any sale of receivables with recourse (in whole or in part) against
the seller or any other Person except the account debtors, any filing or
agreement to file a financing statement as debtor under the UCC or any similar
statute other than to reflect ownership by a third party of property leased to
Borrower or any of its Subsidiaries under a lease which is not in the nature of
a conditional sale or title retention agreement, or any subordination
arrangement in favor of another Person).

"Liquidity": as of
any date of determination, all cash and Cash Equivalents of the Borrower
(determined on a consolidated basis) plus the Total Available Revolving
Commitments.

"Loan": a Revolving
Loan, Term Loan or a Swing Line Loan, as the context shall require;
collectively, the "Loans."

"Loan
Documents": this Agreement, the Notes, each Letter of Credit, each Security
Document and any other instruments, documents and agreements delivered to Agent
in favor of the Lenders or for the benefit of the Lenders.

"Majority
Lenders" of any Facility means those Non-Defaulting Lenders which
would constitute the Required Lenders under, and as defined in, this Agreement
if all outstanding Obligations of other Facilities under this Agreement were
repaid in full and all Commitments with respect thereto were terminated.

 "Material Adverse Effect": a material adverse effect on (a)
the business, condition (financial or otherwise), assets, liabilities, property
or operations of Borrower and its Subsidiaries taken as a whole, (b) the
ability of Borrower or any Subsidiary to perform its obligations under any Loan
Document to which it is a party, or (c) the validity or enforceability of
this Agreement, any Note, any Security Document or the material rights or
remedies of Agent and the Lenders hereunder or thereunder.

"Material Asset
Disposition": any Asset Disposition of all or any substantial part of the
assets of Borrower and its Subsidiaries, taken as a whole, to any Person (other
than Borrower or any of its Subsidiaries). 
For purposes of this definition, any subsidiary or the assets of a
business operation which, in each case, if separately counted would constitute
a "significant subsidiary" within the meaning of Rule 1-02 of Regulation S-X
promulgated by the United States Securities and Exchange Commission shall be
deemed to constitute a "substantial part of the assets" of such Borrower and
its Subsidiaries, taken as a whole.

"Material Subsidiary":
a Subsidiary, including its subsidiaries, which meets any of the following
conditions:

(i)     the Borrower's and its Subsidiaries'
advances to and other investments in the Subsidiary exceed 10 percent of the
total assets of the Borrower and its Subsidiaries consolidated as of the end of
the most recently completed fiscal year; or

(ii)     the Borrower's and its other Subsidiaries'
proportionate share of the total assets (after intercompany eliminations) of
the Subsidiary exceeds 10 percent of the total assets of the Borrower and its
Subsidiaries consolidated as of the end of the most recently completed fiscal
year; or

(iii)     the EBITDA of the Subsidiary exceeds 10
percent of the EBITDA of the Borrower and its Subsidiaries consolidated for the
most recently completed fiscal year.

"Minimum Borrowing Amount":
with respect to Base Rate Loans, $5,000,000, and with respect to Eurodollar
Loans, $5,000,000, and with respect to Swing Line Loans, $1,000,000.

"Modification": as
defined in Section 11.1.

"Moody's": Moody's
Investors Service, Inc. or any successor to the rating agency business thereof.

 "Mortgaged Property": any real property subject to the
Mortgages pursuant to Section 5.19(b) or 7.12.

"Mortgage"
means individually and collectively, the Ramsey Mortgage, the Cortland Mortgage
and any mortgages or similar documents executed pursuant to Section 7.12,
all as amended, restated, supplemented or otherwise modified from time to time.

"Mortgage Policies"
means any mortgage insurance policies, "marked up" mortgage title
insurance commitment, items described in Exhibits 6.1(a)(vi)(ii) or 6.2(a)(vi)(ii)
hereto or similar documents delivered pursuant to Sections 5.19(a), 5.19(b)
or 7.12.

 "Most Recent Ratio of Consolidated Debt to Consolidated EBITDA":
at any date, the ratio of Consolidated Debt as of the end of the most recently
ended fiscal quarter of Borrower for which financial statements have been
delivered pursuant to Section 7.1 (after giving effect to all payments
made on or before such date) to Consolidated EBITDA for the period of four
consecutive fiscal quarters ending on the last day of the most recently ended
fiscal quarter of Borrower for which financial statements have been delivered
pursuant to Section 7.1; provided, however, that on the
date of any Acquisition, the "Most Recent Ratio of Consolidated Debt to
Consolidated EBITDA" shall be recalculated effective until the date of delivery
of the next quarterly financial statements as the ratio of Consolidated Debt as
of the date of any such Acquisition (and after giving effect to any
Indebtedness incurred or assumed in connection therewith) to Consolidated
EBITDA for the four fiscal quarter period ending as of the most recently ended
fiscal quarter for which financial statements have been delivered pursuant to Section
7.1 (calculated on a pro forma basis as set forth in the
definition of Consolidated EBITDA after giving effect to the Acquisition); provided,
further, however, that if Borrower fails to deliver such
financial statements as required by Article VII and further fails to remedy
such default within five days of notice thereof from Agent, then, without
prejudice to any other rights of any Lender hereunder, the Most Recent Ratio of
Consolidated Debt to Consolidated EBITDA" shall be deemed to be greater than
3.50 to 1.0 as of the date such financial statements were required to be
delivered under Section 7.1.

"Multiemployer Plan":
any plan described in Section 4001(a)(3) of ERISA to which contributions are
or, within the immediately preceding six years, have been made or required by
Borrower or any of its Subsidiaries or ERISA Affiliates.

"Net Offering Proceeds":
the proceeds received from (a) the issuance of any Capital Stock or (b) the
incurrence of any Indebtedness net of the actual liabilities for reasonably
anticipated cash taxes in connection with such issuance or incurrence, if any,
any underwriting, brokerage and other customary selling commissions incurred in
connection with such issuance or incurrence, and reasonable legal, advisory and
other fees and expenses, including title and recording tax expenses, if any,
incurred in connection with such issuance or incurrence.

"Net Sale Proceeds":
means the aggregate cash proceeds received from any Asset Disposition
(including, without limitation, cash received by way of deferred payment
pursuant to a note receivable, conversion of non-cash consideration, cash
payments in respect of purchase price adjustments or otherwise, but only as and
when such cash is received) by Borrower or any Subsidiary minus the reasonable
costs and expenses incurred in connection therewith and any provision for taxes
in respect thereof made in accordance with GAAP.

"New Domestic Subsidiary":
as defined in Section 7.12(a).

"Non-Convertible Capital
Stock": with respect to any corporation, any non-convertible Capital Stock
of such corporation and any Capital Stock of such corporation convertible solely
into non-convertible common stock of such corporation; provided, however,
that Non-Convertible Capital Stock shall not include any Redeemable Stock or
Exchangeable Stock.

"Non-Defaulting Lender":
each Lender which is not a Defaulting Lender.

"Notes": respectively
(i) individually, each Revolving Note, Term A Note, Term B Note or Swing Line
Note and (ii) collectively, all Revolving Notes, all Term Notes and all Swing
Line Notes.

"Notice of Borrowing": as defined
in Section 2.5.

"Notice of Conversion or
Continuation": as defined in Section 2.6.

"Obligations": all
Loans and other Indebtedness, advances, debts, liabilities, obligations,
covenants and duties owing by any Credit Party to any Lender, any Agent or any
other Person required to be indemnified under any Loan Document, of any kind or
nature, present or future, whether or not evidenced by any note, guaranty or
other instrument, arising under this Agreement or under any other Loan
Document, whether or not for the payment of money, whether arising by reason of
an extension of credit, loan, guaranty, indemnification or in any other manner,
whether direct or indirect (including those acquired by assignment), absolute
or contingent, due or to become due, now existing or hereafter arising and
however acquired.

"OECD": the
Organization for Economic Cooperation and Development.

"Operating Account"
means any account held at a bank or other financial institution out of which a
Person disburses funds for the purpose of conducting the business of such
Person.

"Original Credit
Agreement": has the meaning assigned to that term in the recitals hereto.

"Original Term Loan
Lender" as defined in Section 2.1(a)(ii).

"Original Term Loans"
as defined in Section 2.1(a)(i).

"Payment Office": the
address for such payments for such Loans set forth on Schedule 11.3
hereto in relation to Agent, or such other address as Agent may from time to
time specify in accordance with Section 11.3.

"PBGC": the Pension
Benefit Guaranty Corporation created by Section 4002(a) of ERISA or any successor
thereto.

 "Permitted Acquisition": any Acquisition where the Person
acquired is a Wholly-Owned Subsidiary or the assets acquired are owned by
Borrower or a Wholly-Owned Subsidiary and where (i) the Person acquired becomes
a Credit Party or the assets acquired are owned by a Credit Party and the
Aggregate Consideration paid by the Borrower and its Subsidiaries is less than
$5,000,000 when aggregated with the Aggregate Consideration paid in connection
with any other Permitted Acquisition consummated on or after the Third Amended
and Restated Effective Date  and (1) the
Person or assets to be acquired are in a business which is reasonably related
to the business the Borrower or any Subsidiary of the Borrower is engaged in on
the date hereof (2) after giving effect thereto on a pro forma
basis for the period (the "Pro Forma Period") of four fiscal quarters ending
with the fiscal quarter for which financial statements have most recently been
delivered (or were required to be delivered) under Section 7.1 (on the
basis that (A) Indebtedness incurred or assumed in connection with such
Acquisition was incurred or assumed at the beginning of the Pro Forma Period,
(B) if such Indebtedness bears interest at a floating rate, interest expense
for the Pro Forma Period shall be calculated at the rate in effect on the date
of such Acquisition, and (C) all income and expenses associated with the assets
or entity acquired in connection with such Acquisition for the most recently
ended four fiscal quarter period for which such income and expense amounts are
available (with good faith estimates thereof being permitted if financial
statements indicating such amounts are not available) shall be treated as being
earned or incurred by Borrower over the Pro Forma Period on a pro forma
basis), no Event of Default or Unmatured Event of Default would exist hereunder
(including, without limitation, under Section 8.1(d)); (3) the ratio of
Consolidated Debt to Consolidated EBITDA of Borrower on the pro forma
basis described above would be less than 2.75 to 1.0; and (4) after giving
effect thereto the Borrower's Liquidity shall not be less than $35,000,000; and
(ii) Borrower and its Subsidiaries have complied with the requirement of Section
7.12 hereof with respect to any required execution of the Subsidiary
Guarantee Agreement; and (iii) such Acquisition has been approved by the board
of directors of the Person to be acquired.

"Permitted IDB/Community
Development Indebtedness": (a) Indebtedness related to municipal bonds or
similar obligations of a state or political subdivision thereof, issued in
connection with an industrial development or related facilities, and (b)
Indebtedness owed to or for the benefit of any community development agency,
state or local economic development authority or similar entity providing
loans, grants or other economic assistance to encourage employment,
construction, local investment or other activity deemed beneficial for the
community (including without limitation such indebtedness having terms calling
for reduced interest rates, debt forgiveness and similar benefits) not
exceeding in the aggregate $1,500,000 outstanding at any time (when aggregated
with amounts of Permitted IDB/Community Development Indebtedness outstanding on
the Third Amended and Restated Effective Date and scheduled on Schedule 5.6
to the Credit Agreement).

"Permitted Investments":

(i)     any demand deposits with any bank or
trust company maintained in the ordinary course of business or shares of any
money market mutual fund rated at least AAA or the equivalent thereof by
S&P or at least Aaa or the equivalent thereof by Moody's, including,
without limitation, any such mutual fund managed or advised by any Lender or
Agent;

(ii)     any evidence of Indebtedness, maturing
not more than two (2) years after the date of acquisition thereof, issued by
the U.S., or an instrumentality or agency thereof and guaranteed fully as to
principal, interest and premium, if any, by the U.S.;

(iii)    any certificate of deposit that is
denominated in Dollars, maturing not more than six (6) months after the date of
purchase, issued by a Lender or a commercial banking institution which is a
member of the Federal Reserve System and which has a combined capital and
surplus and undivided profits of not less than $200,000,000;

(iv)    commercial paper, maturing not more than
ninety (90) days after the date of acquisition, issued by a corporation
organized and existing under the laws of any State of the U.S. or the District
of Columbia or Canada, which is denominated in Dollars, with a rating, at any
date of determination, of "Prime‐2" (or better) according to Moody's, or
"A‐2" (or better) according to S & P;

(v)     any Investments in any Credit Party
(other than an Investment in connection with an Acquisition which shall be
governed by clause (vii));

(vi)    any Investments made after the Third
Amended and Restated Effective Date by Borrower or any Credit Party in any
Subsidiary which is not a Credit Party or any Permitted Unconsolidated Venture
in an aggregate amount outstanding at any time not in excess of $5,000,000 or,
in the case of any Subsidiary which is not a Credit Party, any Investment in
any Subsidiary which is not a Credit Party;

(vii)    Investments made solely as a result of
mergers, acquisitions or consolidations permitted under Section 8.4;

(viii)    loans or advances to employees made in the
ordinary course of business;

(ix)    Investments in overnight Nassau time
deposits and Eurodollar deposits in branches or offices of banking institutions
described in clause (ii) of this definition of the term "Permitted
Investments";

(x)     Investments outstanding as of the
Closing Date in Subsidiaries (as such Investments may be adjusted due to
appreciation, repayment of principal, payment of interest, return of capital
and similar circumstances);

(xi)    Investments not otherwise permitted
hereunder not to exceed $3,000,000 in the aggregate outstanding at any time;

(xii)    Investments by
Buckbee-Mears European Holding Company B.V. ("BV2") in that certain
Note A dated as of December 22, 1999 by Buckbee-Mears Deutschland Holding GmbH
in favor of the Borrower and assigned to BV2 in the original principal amount
of 77,000,000 Euro; and

(xiii)    Investments by the
Borrower in that certain Note B dated as of December 22, 1999 by Buckbee-Mears
Holding Company B.V. in favor of the Borrower in the original principal amount
of 77,000,000 Euro ("Note B&1uot;);

provided that if a Permitted Unconsolidated
Venture or a Subsidiary which is not a Credit Party shall thereafter become a
Credit Party, the foregoing limitations shall thereafter be determined as
though any Investment made in such Permitted Unconsolidated Venture or
Subsidiary was originally made as an Investment in a Credit Party permitted
under clause (v) above; provided, further, that Permitted
Investments shall not include Cash or Cash Equivalents exceeding $7,000,000
held by Borrower or its Subsidiaries for more than five (5) consecutive
Business Days.

"Permitted Liens":
The following Liens:

(i)     Liens for property taxes and
assessments or governmental charges or levies and Liens securing claims or
demands of mechanics and materialmen; provided, however, payment
thereof is not later than the time required by Section 7.5;

(ii)     Liens in an aggregate
amount not to exceed $10,000,000 at any time of or resulting from any judgment
or award, the time for the appeal or petition for rehearing of which shall not
have expired, or in respect of which Borrower or a Subsidiary of Borrower shall
at any time in good faith be prosecuting an appeal or proceeding for a review
and in respect of which a stay of execution pending such appeal or proceeding
for review shall have been secured;

(iii)    Liens incidental to the
conduct of business or the ownership of properties and assets (including Liens
in connection with worker's compensation, unemployment insurance and other like
laws, warehousemen's and attorneys' liens and statutory landlords' liens) and
Liens to secure the performance of bids, tenders or trade contracts, or to
secure statutory obligations, surety or appeal bonds or other Liens of like
general nature incurred in the ordinary course of business and not in
connection with the borrowing of money; provided, however, in
each case, the obligation secured is not overdue or, if overdue, is being
contested in good faith by appropriate actions or proceedings;

(iv)    minor survey exceptions or
minor encumbrances, easements or reservations, or rights of others for rights‐of‐way,
utilities and other similar purposes, or zoning or other restrictions as to the
use of real properties, which customarily exist on properties of corporations
engaged in similar activities and similarly situated and which do not in any
event materially impair their use in the operation of the business of Borrower
and its Subsidiaries;

(v)     Liens securing Indebtedness of a Subsidiary
of Borrower to Borrower;

(vi)    Liens existing as of the
Third Amended and Restated Effective Date and reflected on Schedule 8.3
hereto and Liens incurred in connection with the refinancing of Indebtedness
secured thereby so long as no such Lien extends to any property not subject
thereto as of the Third Amended and Restated Effective Date (other than
improvements thereto or, if required by the terms of the document or instrument
creating or governing such Lien as in effect on the Third Amended and Restated
Effective Date, additions thereto and replacements and substitutions
therefor);

(vii)    customary rights of setoff,
revocation, refund or chargeback under deposit agreements or under the UCC of
banks or other financial institutions where Borrower or its Subsidiaries
maintain deposits in the ordinary course of business;

(viii)    Liens securing Permitted
IDB/Community Development Indebtedness; 

(ix)    additional Liens incurred by Borrower and
its Subsidiariesso long as the
aggregate amount of the obligations secured by such Liens does not exceed on
and after the Third Amended and Restated Effective Date, $2,000,000 plus
any amounts outstanding on the Third Amended and Restated Effective Date and
listed on Schedule 8.3 hereto; and

(x)   Permitted Real Property Encumbrances.

"Permitted Real Property
Encumbrances": (i) those liens, encumbrances and other matters affecting
title to any Mortgaged Property listed in the Mortgage Policies on the date of
delivery of such Mortgage Policies to Agent in accordance with the terms
hereof,  (ii) as to any particular
parcel of real property at any time, such easements, encroachments, covenants,
rights of way, minor defects, irregularities or encumbrances on title which do
not materially impair such parcel of real property for the purpose for which it
is held by the user thereof, or the Lien held by Agent, (iii) municipal and
zoning ordinances and environmental regulations, which are not violated in any
material respect by the existing improvements and the present use made by the
mortgagor thereof of the premises (as defined in the respective Mortgage), (iv)
general real estate taxes and assessments not yet delinquent, and (v) such
other items as to which Agent may consent which do not materially impair such
parcel of real property for the purpose for which it is held by the user
thereof, or the Lien held by the Agent.

"Permitted Subordinated
Indebtedness": up to $100,000,000 in aggregate initial principal amount of
indebtedness of the Borrower which (i) by its terms is expressly subordinated
to this Agreement, as from time to time amended, restated, supplemented,
modified, refinanced, refunded or replaced, (ii) has a maturity date not less
than one year after the Termination Date, (iii) is in all respects in form and
substance satisfactory to Agent and (iv) is rated no lower than BB by S&P
and no lower than Ba2 by Moody's.

"Permitted Unconsolidated
Venture": an Investment in a Person not constituting a Subsidiary of
Borrower which Person is engaged in the same or related business as Borrower or
any of its Subsidiaries is engaged on the Closing Date.

"Person": an
individual or a corporation, limited liability company, partnership, trust,
incorporated or unincorporated association, joint venture, joint stock company,
government (or an agency or political subdivision thereof) or other entity of
any kind provided; however, that references to Persons include their respective
permitted successors and assigns or, in the case of governmental Persons,
Persons succeeding to the relevant functions of such persons; and all
references to statutes and related regulations shall include any amendments of
same and any successor statutes and regulations.

"Plan": any plan
described in Section 4021(a) of ERISA and not excluded pursuant to Section 4021(b)
thereof, which may hereafter be or has been established or maintained, within
the immediately preceding six years, or to which contributions are or, within
the immediately preceding six years, have been made, by Borrower or any of its
Subsidiaries or ERISA Affiliates, but not including any Multiemployer Plan.

"Plan Administrator":
has the meaning assigned to the term "administrator" in Section 3(16)(A) of
ERISA.

"Plan Sponsor": has
the meaning assigned to the term "plan sponsor" in Section 3(16)(B) of ERISA.

"Pledge Agreement":
has the meaning assigned to that term in Section 6.1(a)(iv).

 "Pledged Stock": as defined in the Security Documents.

"Prime Lending Rate":
the rate which DBTCA announces from time to time as its prime lending rate,
base rate or equivalent, as in effect from time to time.  The Prime Lending Rate is a reference rate
and does not necessarily represent the lowest or best rate actually charged to
any customer.  Any Lender may make
commercial loans or other loans at rates of interest at, above or below the
Prime Lending Rate.  The Prime Lending
Rate shall change automatically and without notice from time to time as and
when DBTCA changes its prime lending rates, base rates or equivalent.

"Pro Rata Share":
when used with reference to any Lender and any described aggregate or total
amount, an amount equal to the result obtained by multiplying such described
aggregate or total amount by a fraction the numerator of which shall be such
Lender's Revolving Commitment and the denominator of which shall be the Total
Revolving Commitment or, if no Revolving Commitments are then outstanding, such
Lender's aggregate outstanding principal amount of Revolving Loans and LC
Obligations to the total outstanding principal balance of all Revolving Loans
and LC Obligations hereunder.

"Quarterly Payment Date":
the last Business Day of each March, June, September and December of each year.

"Ramsey Mortgage":
the form of Ramsey Mortgage attached hereto as Exhibit 6.1(a)(vi)(i)
covering the Ramsey, Minnesota property of the Borrower's Subsidiary as
amended, restated, supplemented or otherwise modified from time to time.

"Ramsey Mortgage Policy":
any mortgage insurance policies, "marked up" mortgage title insurance
commitment, items described in Exhibit 6.1(a)(vi)(ii) hereto or similar
documents delivered pursuant to Section 5.19(b).

"Recovery Event": the
receipt by Borrower (or any of its Affiliates) of any insurance or
condemnation proceeds payable (i) by reason of any theft, physical destruction
or damage or any other similar event with respect to any properties or assets
of Borrower or any of its Subsidiaries, (ii) by reason of any condemnation,
taking, seizing or similar event with respect to any properties or assets of
Borrower or any of its Subsidiaries and (iii) under any policy of insurance
required to be maintained under Section 5.17.

"Redeemable Stock":
any Capital Stock that by its terms or otherwise is required to be redeemed on
or prior to the first anniversary of the Termination Date (as the same may be extended
pursuant to the terms hereof) or is redeemable at the option of the holder
thereof at any time on or prior to the first anniversary of such Termination
Date.

"Refunded Swing Line
Loans": as defined in Section 2.2(d).

"Register": as
defined in Section 11.9(c).

"Regulation D", "Regulation
T", "Regulation U" and "Regulation X": respectively,
Regulation D, T, U and X of the Board as from time to time in effect and any
successor to all or a portion of any thereof.

"Release": any
release, spill, emission, leaking, pumping, pouring, emptying, dumping,
injection, deposit, disposal, discharge, dispersal, escape, leaching or
migration in violation of any Environmental Law into the indoor or outdoor
environment or into or out of any property of Borrower or its Subsidiaries, or
at any other location, including any location to which Borrower or any
Subsidiary has transported or arranged for the transportation of any
Contaminant, including the movement of Contaminants through or in the air,
soil, surface water, groundwater or property of Borrower or its Subsidiaries or
at any other location, including any location to which Borrower or any
Subsidiary has transported or arranged for the transportation of any
Contaminant.

"Remedial Action":
actions required to (i) clean up, remove, treat or in any other way address
Contaminants in the indoor or outdoor environment, (ii) prevent or minimize the
Release or threat of Release of Contaminants so they do not migrate or endanger
or threaten to endanger public health or welfare or the indoor or outdoor
environment; or (iii) perform pre-remedial or post-remedial studies and
investigations and post-remedial monitoring and care or any other studies,
reports or investigations relating to Contaminants.

 "Reportable Event": a "reportable event" described in
Section 4043(c) of ERISA or in the regulations thereunder or receipt of a
notice of withdrawal liability with respect to a Multiemployer Plan pursuant to
Section 4202 of ERISA.

"Required Lenders":
at any time, Lenders then holding at least 51% of the sum of (a) the then
aggregate unpaid principal amount of the Term Loans,  plus (b) the amount of the Total Revolving Commitment (or
if the Total Revolving Commitment has been terminated, then the aggregate
principal amount outstanding of Revolving Loans, plus the outstanding amount of
LC Obligations); provided, that, if no principal amount of any Loan is
then outstanding, then "Required Lenders" shall mean Lenders then having at
least 51% of the Total Revolving Commitment.

"Requirement of Law":
as to any Person, any law (including common law), treaty, rule or regulation or
determination of an arbitrator or a court or other Governmental Authority,
including without limitation, any Environmental Law, in each case applicable to
or binding upon such Person or any of its property or to which such Person or
any of its property is subject.

"Responsible Officer":
means any of the President, any Executive Vice President, the Chief Financial
Officer, Controller or the Treasurer of Borrower.

"Restatement Date":
the date on which the conditions specified in Section 6.1 of the Second
Amendment and Restatement Agreement were satisfied (or waived in accordance
with Section 11.1).

"Restructuring Charges":
for any period of four consecutive fiscal quarters that includes the first
fiscal quarter of Fiscal Year 2002, any actual restructuring charges recorded
by the Borrower and its Subsidiaries during such period but no later than the
first quarter of Fiscal Year 2002 in an aggregate amount for all such Restructuring
Charges not to exceed $15,000,000, of which up to $4,000,000 may be in cash, in
connection with the restructuring of the Borrower and its Subsidiaries.

"Revolver Commitment
Reduction" means a permanent reduction of the undrawn Revolving
Commitments of the Lenders on the Restatement Date by $35,000,000.

"Revolving Commitment":
as to any Lender, the obligation of such Lender to (a) make Revolving Loans to
Borrower, (b) participate in Swing Line Loans made to Borrower and (c) to
participate in Letters of Credit, in an aggregate principal and/or Stated
Amount at any one time outstanding not to exceed the amount set forth opposite
such Lender's name on Schedule 2.1(b) under the heading "Revolving
Commitment", and as such amount may be reduced from time to time in accordance
with the terms hereof; collectively, as to all Lenders, the "Revolving
Commitments".

"Revolving Lenders":
any Lender that has a Revolving Commitment or is owed a Revolving Loan.

"Revolving Loan
Facility": means the credit facility consisting of the Revolving
Commitments.

"Revolving Loans": as
defined in Section 2.1(b).

"Revolving Note": as
defined in Section 2.1(b).

"Sale and Leaseback
Transaction": any arrangement, directly or indirectly, with any Person
whereby a seller or transferor shall sell or otherwise transfer any real or
personal property and then or thereafter lease, or repurchase under an extended
purchase contract, conditional sales or other title retention agreement, the
same or similar property.

"Scheduled Term
Repayments" means a Scheduled Term A Repayment or a Scheduled Term B
Repayment.

"Scheduled
Term A Repayments" means, with respect to the principal payments on
the Term A Loans for each date set forth below, the Dollar amount set forth
opposite thereto:

  	

Date   

      	Scheduled Term A Loan

      Principal Payment
	

September 30, 2002   

      	$1,665,900
	

December 31, 2002

      	$1,665,900
	

March 31, 2003   

      	$2,332,260
	

June 30, 2003   

      	$2,332,260
	

September 30, 2003   

      	$2,332,260
	

December 31, 2003   

      	$2,332,260
	

March 31, 2004   

      	$2,332,260

Term A Loan Maturity Date          $58,306,900 or, if less, the
aggregate principal amount of Term A Loans outstanding

"Scheduled
Term B Repayments" means, with respect to the principal payments on
the Term B Loans for each date set forth below, the Dollar amount set forth
opposite thereto:

                          

  	

 

      	

Scheduled
Term B Loan

      
	

Date                        

      	

 Principal Payment

      
	

September 30, 2002                         

      	

$834,100

      
	

December 31, 2002              

      	

$834,100

      
	

March 31, 2003                                

      	

$1,167,740

      
	

June 30, 2003                  

      	

$1,167,740

      
	

September 30, 2003                         

      	

$1,167,740

      
	

December 31, 2003                          

      	

$1,167,740

      
	

March 31, 2004                                

      	

$1,167,740

      
	

Term B Loan Maturity Date               

      	

$29,193,100 or, if less, the
aggregate principal amount of Term B Loans outstanding

      

"Second Amendment
and Restatement Agreement": as defined in the Recitals. 

"Second Quarter 2001
Deferred Tax Charge": means, with respect to any period of four consecutive
fiscal quarters which includes June 30, 2001, the charge against earnings taken
for the second quarter of Fiscal Year 2001 for valuation of deferred income
taxes in an amount not exceeding $10,000,000.

"Secured Creditors":
as defined in the Security Documents.

"Security Agreements":
as defined in Section 6.1(a)(iii).

"Security Documents":
collectively, the Security Agreements, the Mortgage, each of the Pledge
Agreements each Subsidiary Guarantee Agreement, each Additional Security
Document and all other agreements, assignments, security agreements,
instruments and documents executed in connection therewith, in each case as the
same may be amended, supplemented, restated or otherwise modified and in effect.  For purposes of this Agreement, "Security
Documents" shall also include all guaranties, security agreements, mortgages,
pledge agreements, collateral assignments, subordination agreements and other
collateral documents in the nature of any thereof entered into by Borrower or
any Subsidiary of Borrower after the date of this Agreement in favor of Agent
for the benefit of the Lenders in satisfaction of the requirements of any Loan
Document.

"S&P": Standard
& Poor's Ratings Services, a division of the McGraw Hill Companies, Inc. or
any successor to the rating agency business thereof.

"Standby Letters of
Credit" means any of the irrevocable standby letters of credit issued for
the account of Borrower pursuant to this Agreement, in form acceptable to the
Facing Agent, together with any increases or decreases in the Stated Amount
thereof and any renewals, amendments and/or extensions thereof.

 "Stated Amount" or "Stated Amounts":
with respect to any Letter of Credit issued in Dollars, the stated or face
amount of such Letter of Credit to the extent available at the time for drawing
(subject to presentment of all requisite documents), as the same may be
increased or decreased from time to time in accordance with the terms of such
Letter of Credit.  

 "Subsidiary": as to any Person, any corporation,
partnership (limited or general), limited liability company, trust or other
entity of which a majority of the stock (or equivalent ownership or controlling
interest) having voting power to elect a majority of the board of directors (if
a corporation) or to select the trustee or equivalent controlling interest,
shall, at the time such reference becomes operative, be directly or indirectly
owned or controlled by such Person or one or more of the other subsidiaries of
such Person or any combination thereof. 
Unless otherwise qualified, all references to a "Subsidiary" or to
"Subsidiaries" in this Agreement shall refer to a Subsidiary or Subsidiaries of
Borrower. 

"Subsidiary Guarantee
Agreement": the Subsidiary Guarantee Agreement in substantially the form of
Exhibit 6.1(a)(v) hereto, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with its terms and the terms
hereof.

"Subsidiary Guarantor":
such Subsidiaries which are parties to the Subsidiary Guarantee Agreement or
which pursuant to Section 7.12 from time to time become a party to the
Subsidiary Guarantee Agreement and collectively, all of such Subsidiaries.

"Subsidiary
Guarantor Security Agreement" as defined in Section 6.1(a)(iii).

"Supermajority
Lenders" of any Facility means those Non-Defaulting Lenders of such
Facility the sum of whose outstanding Loans of such Facility would constitute
greater than 66 2/3% of the sum of the total outstanding Loans of
Non-Defaulting Lenders of such Facility.

"Swing
Line Commitment": of the Swing Line Lender at any date, the obligation of
the Swing Line Lender to make Swing Line Loans pursuant to Section 2.2
in the amount referred to therein.

"Swing
Line Lender": DBTCA.

"Swing
Line Loans": as defined in Section 2.2(a).

"Swing
Line Loan Participation Certificate": a certificate, substantially in the
form of Exhibit 2.2(e).

"Swing
Line Note": as defined in Section 2.2(b).

 "Taxes": any present or future taxes,
levies, imposts, duties or other charges of whatever nature imposed by any
government or any political subdivision or taxing authority thereof, other than
any tax on, or measured by, the net income of any applicable Lender.

"Term
A Conversion Pro Rata Share": means, when used with reference to any
Original Term Loan Lender, an amount equal to the result obtained by
multiplying $73,300,000 by a fraction the numerator of which shall be such
Lender's then outstanding Original Term Loans and the denominator of which
shall be all then outstanding Original Term Loans.

"Term
A Facility" means the credit facility under this Agreement evidenced
by the Term A Loans.

"Term
A Lender" means any Lender which is owed a Term A Loan.

"Term
A Loan" and "Term A Loans" as defined in Section
2.1(a)(ii).

"Term
A Loan Maturity Date": May 14, 2004 or such earlier date as the outstanding
Term A Loans shall have been reduced to $0 pursuant to this Agreement.

"Term
A Note" is defined in Section 2.2(a).

"Term
A Percentage" means, as of any date of determination, expressed as a
percentage, (i) the aggregate principal amount of outstanding Term A Loans
divided by (ii) the aggregate principal amount of all outstanding Term Loans.

"Term
A Pro Rata Share" means, when used with reference to any Term A Lender
and any described aggregate or total amount, an amount equal to the result
obtained by multiplying such described aggregate or total amount by a fraction
the numerator of which shall be such Lender's then outstanding Term A Loan and
the denominator of which shall be all then outstanding Term A Loans.

"Term
B Conversion Pro Rata Share": means, when used with reference to any
Original Term Loan Lender, an amount equal to the result obtained by
multiplying $36,700,000 by a fraction the numerator of which shall be such
Lender's then outstanding Original Term Loans and the denominator of which
shall be all then outstanding Original Term Loans.

"Term
B Facility" means the credit facility under this Agreement evidenced
by the Term B Loans.

"Term
B Lender" means any Lender which is owed a Term B Loan.

"Term
B Loan" and "Term B Loans": as defined in Section
2.1(a)(ii).

"Term
B Loan Maturity Date": May 14, 2004 or such earlier date as the outstanding
Term B Loans shall have been reduced to $0 pursuant to this Agreement.

"Term
B Note": as defined in Section 2.2(a).

"Term
B Percentage": means, as of any date of determination, expressed as a
percentage, (i) the aggregate principal amount of outstanding Term B Loans
divided by (ii) the aggregate principal amount of all outstanding Term Loans.

"Term
B Pro Rata Share": means, when used with reference to any Term B
Lender and any described aggregate or total amount, an amount equal to the
result obtained by multiplying such described aggregate or total amount by a
fraction the numerator of which shall be such Lender's then outstanding Term B
Loan and the denominator of which shall be all then outstanding Term B Loans.

"Term
Lender": any Lender that is owed a Term Loan.

"Term
Loan" and "Term Loans": as defined in Section 2.1(a)(ii).

"Term
Loan Conversion": as defined in Section 2.1(a)(i).

"Term
Loan Conversion Notice": a Term Loan Conversion Notice substantially
in the form of Exhibit 11.10 annexed hereto, delivered on or prior to
the Restatement Date and made a part hereof made by any applicable Lender.

"Term
Note": as defined in Section 2.2(a).

"Termination
Date": the earlier to occur of

(a)     May 14, 2004; and

      (b)     the date on which the Commitments shall
otherwise terminate in accordance with the provisions of this Agreement.

"Termination Event":
(i) a Reportable Event (other than a Reportable Event not subject to the
provisions for 30-day notice to the PBGC), or (ii) the withdrawal of Borrower
or any of its ERISA Affiliates from a Plan during a plan year in which it was a
"substantial employer" as defined in Section 4001(a)(2) of ERISA, or (iii) the
filing of a notice of intent to terminate a Plan in a distress termination
under Section 4041 of ERISA, or (iv) the institution of proceedings to
terminate a Plan by the PBGC, or (v) any other event or condition which could
reasonably be expected to constitute grounds under Section 4042 of ERISA
for the involuntary termination of, or the appointment of a trustee to
administer, any Plan, or (vi) the imposition of liability of Borrower or any of
its ERISA Affiliates pursuant to Sections 4064 or 4069 of ERISA, which, in the
case of any event described in clauses (i) through (vi) above, would cause the
sum of Borrower's and its ERISA Affiliates' liabilities (after giving effect to
the tax consequences thereof) resulting from or otherwise associated with such
event to exceed $10,000,000.

"Third Amended and
Restated Effective Date": the date on which the conditions specified in
Section 6.2 of the Third Amended and Restated Credit Agreement are satisfied
(or waived in accordance with Section 11.1).

 "Third Quarter 2001 Nonrecurring Charges" means, with
respect to any period of four consecutive fiscal quarters which includes
September 30, 2001, actual non-recurring charges of the Borrower and its
Subsidiaries in an amount up to $3,500,000.

"Total Available
Revolving Commitment": at the time any determination thereof is made, the
sum of the respective Available Revolving Commitments of the Revolving Lenders
at such time.

"Total Revolving Commitment":
at any time any determination is to be made, the sum of the respective
Revolving Commitments of the Revolving Lenders at such time.

"Transaction": shall
mean and include (i) each of the Credit Events occurring on the Restatement
Date, (ii) such other transactions as are contemplated by the Documents, and
(iii) the payment of fees and expenses in connection with the foregoing.

"Type": as to any
Loan, its nature as a Base Rate Loan or a Eurodollar Loan.

"Unmatured Event of
Default": an event, act, condition or occurrence which with the giving of
notice or the lapse of time (or both) would become an Event of Default.

"Unpaid Drawing": as defined in Section 2.9(c).

"U.S.": the United
States of America, its territories, its possessions and all other areas subject
to its jurisdiction.

"Voting Securities":
any class of Capital Stock of a Person pursuant to which the holders thereof
have, at the time of determination, the general voting power under ordinary
circumstances to vote for the election of directors, managers, trustees or
general partners of such Person (irrespective of whether or not at the time any
other class or classes will have or might have voting power by reason of the
happening of any contingency).

"Wholly‐Owned
Subsidiary": with respect to any Person, any Subsidiary of such Person, all
of the outstanding shares of capital stock of which (other than qualifying
shares required to be owned by directors) are at the time owned directly or
indirectly by such Person and/or one or more Wholly‐Owned Subsidiaries of
such Person.

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

"written" or "in
writing": any form of written communication or a communication by means of
a telecopier device or authenticated telex, telegraph or cable.

1.2    Accounting Terms, Financial Statements.  All accounting terms used herein shall have
the respective meanings given to them in accordance with GAAP, unless otherwise
provided herein.  All computations and
determinations for purposes of determining compliance with the financial
requirements of this Agreement shall be made in accordance with GAAP, unless
otherwise provided herein.

1.3    Other Definitional Terms.  The words "hereof", "herein" and "hereunder"
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
Article, Section, Recital, Schedule, Exhibit and like references are to this
Agreement unless otherwise specified.

ARTICLE II

AMOUNT AND TERMS OF CREDIT

2.1    The Commitments.

(a)     Term Loans.  
       
  (i)     On the Restatement Date, each Converting
Lender, severally and for itself alone, converted a portion of its then
outstanding Revolving Loans in a principal amount equal to the amount set forth
opposite each such Lender's name on Schedule 2.1(a)(i) hereto or in any
Term Loan Conversion Notice delivered by such Lender to term loans (in each
case such Converting Lender's "Converted Term Loan Amount" and
each such loan as converted, an "Original Term Loan" and
collectively, the "Original Term Loans").  Each Lender's Revolving Commitment in effect
immediately prior to the Restatement Date was reduced by its Converted Term
Loan Amount, if any (collectively, the "Term Loan Conversion").  The amount of Revolving Loans that was converted to Term Loans on
the Restatement Date was a principal amount of $125,000,000.

(ii)     On the Third Amended
and Restated Effective Date, each Lender with an Original Term Loan (each an "Original
Term Loan Lender"), severally and for itself alone, hereby agrees, on the
terms and subject to the conditions hereinafter set forth and in reliance upon
the representations and warranties set forth herein and in the other Loan
Documents, to convert all of its Original Term Loans outstanding on the Third
Amended and Restated Effective Date (the "Original Term Loan Conversion")
into two separate tranches of term loans with (A) the Term A Conversion Pro Rata
Share of such Original Term Loan Lender's Original Term Loans being converted
into one tranche of term loans (each such loan as converted, a "Term A Loan"
and collectively, the "Term A Loans") and (B) the Term B Conversion Pro
Rata Share of such Original Term Loan Lender's Original Term Loans being
converted into a separate tranche of term loans (each such loan as converted, a
"Term B Loan" and collectively, the "Term B Loans" and together
with the Term A Loans, collectively, the "Term Loans").  Except as
hereinafter provided, Term Loans may, at the option of Borrower, be maintained
as and/or converted into Base Rate Loans or Eurodollar Loans.  No amount of a
Term Loan which is repaid or prepaid by Borrower may be reborrowed
hereunder.  The amount of each Lender's outstanding Term A Loans and Term B
Loans on the Third Amended and Restated Effective Date shall be as set forth on
Schedule 2.1(a)(ii) under the columns "Term A Loans" and "Term B Loans",
respectively.  The Borrower and the Lenders hereby acknowledge that the
aggregate amounts of the Term A Loans and Term B Loans outstanding on the Third
Amended
and Restated Effective Date is equal to $73,300,000 and $36,700,000, respectively. 

(b)     Revolving Loan Commitment.  Each Lender severally and for itself alone,
hereby agrees, on the terms and subject to the conditions hereinafter set forth
and in reliance upon the representations and warranties set forth herein and in
the other Loan Documents, to make loans to Borrower on a revolving basis from
time to time during the Commitment Period, in an amount not to exceed its
Commitment Percentage of the Total Available Revolving Commitment (each such
loan by any Lender, a "Revolving Loan" and collectively, the "Revolving
Loans"); provided, however, that, after giving effect to any
Borrowing of Revolving Loans, the aggregate amount of all outstanding Revolving
Loans, and the aggregate amount of all LC Obligations and Swing Line Loans then
outstanding, shall not at any time exceed the lesser of (i) the Borrowing Base
and (ii) the Total Revolving Commitment; provided, further, that
in no event may Borrower make any Borrowing of Revolving Loans the effect of
which would cause Borrower to have on hand Cash or Cash Equivalents in excess
of $7,000,000 for a period greater than five (5) consecutive Business
Days.  All Revolving Loans comprising
the same Borrowing hereunder shall be made by the Revolving Lenders
simultaneously and in proportion to their respective Revolving
Commitments.  Prior to the Termination
Date, Revolving Loans may be repaid and reborrowed by Borrower in accordance
with the provisions hereof and, except as otherwise specifically provided in Section
3.6, all Revolving Loans comprising the same Borrowing shall at all times
be of the same Type.  Notwithstanding
anything else herein to the contrary, the parties hereby acknowledge that (A)
on the Restatement Date, the Total Revolving Commitment in effect immediately
prior to the Restatement Date (which, for the avoidance of doubt, was
$220,000,000) was permanently reduced by (x) the Aggregate Converted Term Loan
Amount; and (y) the Revolver Commitment Reduction; and (B) on the Third Amended
and Restated Effective Date, the Total Revolving Commitment in effect
immediately prior to the Third Amended and Restated Effective Date (which, for
avoidance of doubt, is acknowledged to be $60,000,000) shall be permanently
reduced by $25,000,000 and the Borrower and the Lenders hereby acknowledge that
the Total Revolving Commitment after such reduction shall be equal to
$35,000,000. 

(c)    Swing Line Loans.

    

(i)     Swing
Line Commitment.  Subject to the
terms and conditions hereof, the Swing Line Lender in its individual capacity
agrees to make swing line loans in Dollars ("Swing Line Loans") to
Borrower on any Business Day from time to time during the Commitment Period in
an aggregate principal amount at any one time outstanding not to exceed
$10,000,000; provided, however, that in no event may the amount of
any Borrowing of Swing Line Loans (A) exceed the Total Available Revolving
Commitment immediately prior to such Borrowing (after giving effect to the use
of proceeds thereof) or (B) cause the outstanding Revolving Loans of any
Lender, when added to such Lender's Commitment Percentage of the then
outstanding Swing Line Loans and Commitment Percentage of the aggregate LC
Obligations (exclusive of Unpaid Drawings relating to LC Obligations which are
repaid with the proceeds of, and simultaneously with the incurrence of,
Revolving Loans or Swing Line Loans) to exceed such Lender's Revolving
Commitment; provided, further, that, after giving effect to any
Borrowing of Swing Line Loans, the aggregate amount of all outstanding Swing
Line Loans, and the aggregate amount of all LC Obligations and Revolving Loans
then outstanding, shall not at any time exceed the lesser of (i) the Borrowing
Base and (ii) the Total Revolving Commitment. 
Amounts borrowed by Borrower under this Section 2.1(c)(i) may be
repaid and, at any time prior to the Termination Date, reborrowed.  The Swing Line Loans shall be made in
Dollars and maintained as Base Rate Loans and, notwithstanding Section 2.6,
shall not be converted into any other Type of Loan.

(ii)     Refunding
of Swing Line Loans.  The Swing Line
Lender, at any time in its sole and absolute discretion, may on behalf of
Borrower (which hereby irrevocably directs the Swing Line Lender to so act on
its behalf) notify each Lender (including the Swing Line Lender) to make a
Revolving Loan in an amount equal to such Lender's Commitment Percentage of the
principal amount of the Swing Line Loans (the "Refunded Swing Line Loans")
outstanding on the date such notice is given, provided, however,
that such notice shall be deemed to have automatically been given upon the
occurrence of an Event of Default under Sections 9.1(g) or 9.1(h)
or upon the occurrence of a Change of Control. 
Unless any of the events described in Sections 9.1(g) or 9.1(h)
shall have occurred (in which event the procedures of Section 2.1(c)(iii)
shall apply) and regardless of whether the conditions precedent set forth in
this Agreement to the making of a Revolving Loan are then satisfied, each
Lender shall make the proceeds of its Revolving Loan available to the Swing
Line Lender at the Payment Office prior to 11:00 A.M., New York City time, in
funds immediately available on the Business Day next succeeding the date such
notice is given.  The proceeds of such
Revolving Loans shall be immediately applied to repay the Refunded Swing Line
Loans.

(iii)    Participation
in Swing Line Loans.  If, prior to
refunding a Swing Line Loan with a Revolving Loan pursuant to Section
2.1(c)(ii), one of the events described in Sections 9.1(g) or 9.1(h)
shall have occurred, or if for any other reason a Revolving Loan cannot be made
pursuant to Section 2.1(c)(ii), then, subject to the provisions of Section
2.1(c)(iv) below, each Lender will, on the date such Revolving Loan was to
have been made, purchase (without recourse or warranty) from the Swing Line
Lender an undivided participation interest in the Swing Line Loans in an amount
equal to its Commitment Percentage of such Swing Line Loans.  Upon request, each Lender will immediately
transfer to the Swing Line Lender, in immediately available funds, the amount
of its participation and upon receipt thereof the Swing Line Lender will
deliver to such Lender a Swing Line Loan Participation Certificate dated the
date of receipt of such funds and in such amount.

(iv)    Lenders'
Obligations Unconditional.  Each
Lender's obligation to make Revolving Loans in accordance with Section
2.1(c)(ii) and to purchase participating interests in accordance with Section
2.1(c)(iii) above shall be absolute and unconditional and shall not be
affected by any circumstance, including, without limitation, (A) any setoff,
counterclaim, recoupment, defense or other right which such Lender may have
against the Swing Line Lender, Borrower or any other Person for any reason
whatsoever; (B) the occurrence or continuance of any Event of Default or
Unmatured Event of Default; (C) any adverse change in the condition (financial
or otherwise) of Borrower or any other Person; (D) any breach of this Agreement
by Borrower or any other Person; (E) any inability of Borrower to satisfy the
conditions precedent to borrowing set forth in this Agreement on the date upon
which such participating interest is to be purchased or (F) any other
circumstance, happening or event whatsoever, whether or not similar to any of
the foregoing.  If any Lender does not
make available to the Swing Line Lender the amount required pursuant to Section
2.1(c)(ii) or (iii) above, as the case may be, the Swing Line Lender
shall be entitled to recover such amount on demand from such Lender, together
with interest thereon for each day from the date of non-payment until such
amount is paid in full at the Federal Funds Rate for the first two Business
Days and at the Base Rate thereafter. 
Notwithstanding the foregoing provisions of this Section 2.1(c)(iv),
no Lender shall be required to make a Revolving Loan to Borrower for the
purpose of refunding a Swing Line Loan pursuant to Section 2.1(c)(ii)
above or to purchase a participating interest in a Swing Line Loan pursuant to Section
2.1(c)(iii) if an Event of Default or Unmatured Event of Default has
occurred and is continuing and, prior to the making by the Swing Line Lender of
such Swing Line Loan, the Swing Line Lender had received written notice from
such Lender specifying that such Event of Default or Unmatured Event of Default
has occurred and is continuing, describing the nature thereof and stating that,
as a result thereof, such Lender shall cease to make such Refunded Swing Line
Loans and purchase such participating interests, as the case may be; provided,
however, that the obligation of such Lender to make such Refunded Swing
Line Loans and to purchase such participating interests shall be reinstated
upon the earlier to occur of (y) the date upon which such Lender notifies the
Swing Line Lender that its prior notice has been withdrawn and (z) the date
upon which the Event of Default or Unmatured Event of Default specified in such
notice no longer is continuing.

    

  

2.2    Notes.

(a)     Evidence
of Indebtedness.  Borrower's
obligation to pay the principal of and interest on all the Loans made to it by
each Lender shall be evidenced, (w) if Term A Loans, by a promissory note
(each, a "Term A Note" and collectively, the "Term A Notes") duly
executed and delivered by Borrower substantially in the form of Exhibit
2.2(a)-1(a) hereto, with blanks appropriately completed in conformity
herewith, (x) if Term B Loans, by a promissory note (each, a "Term B Note"
and collectively, the "Term B Notes" and collectively with the Term A
Notes, the "Term Notes")) duly executed and delivered by
Borrower substantially in the form of Exhibit 2.2(a)-1(b) hereto, with
blanks appropriately completed in conformity herewith, (y) if Revolving Loans,
by a promissory note (each, a "Revolving Note" and, collectively, the "Revolving
Notes") duly executed and delivered by Borrower substantially in the form
of Exhibit 2.2(a)-2 hereto, with blanks appropriately completed in
conformity herewith and (z) if Swing Line Loans, by a promissory note
(the "Swing Line Note") duly executed and delivered by Borrower
substantially in the form of Exhibit 2.2(a)-3 hereto, with blanks
appropriately completed in conformity herewith.

    

(i)     Provisions of the
Term Notes.  (x) The Term A Note
issued to each Term A Lender shall (A) be executed by Borrower, (B) be payable
to the order of such Term A Lender and be dated the Third Amended and Restated
Effective Date, (C) be payable in the aggregate principal amount of the Term A
Loan evidenced thereby, (D) mature, with respect to each Term A Loan evidenced
thereby, on the Term A Loan Maturity Date, (E) be subject to mandatory
prepayment as provided in Section 4.3, (F) bear interest as provided in Section
3.1 in respect of the Base Rate Loans and Eurodollar Loans, as the case may
be, evidenced thereby and (G) be entitled to the benefits of this Agreement and
the other applicable Loan Documents; and (y) the Term B Note issued to each
Term B Lender shall (A) be executed by Borrower, (B) be payable to the order of
such Term B Lender and be dated the Third Amended and Restated Effective Date,
(C) be payable in the aggregate principal amount of the Term B Loan evidenced
thereby, (D) mature, with respect to each Term B Loan evidenced thereby, on the
Term B Loan Maturity Date, (E) be subject to mandatory prepayment as provided
in Section 4.3, (F) bear interest as provided in Section 3.1 in
respect of the Base Rate Loans and Eurodollar Loans, as the case may be,
evidenced thereby and (G) be entitled to the benefits of this Agreement and the
other applicable Loan Documents.

(ii)     Provisions
of the Revolving Notes.  The
Revolving Note issued to each Lender shall (A) be executed by Borrower, (B) be
payable to the order of such Lender and be dated the Third Amended and Restated
Effective Date, (C) be in a stated principal amount equal to the Revolving
Commitment of such Revolving Lender and be payable in the aggregate principal
amount of the Revolving Loans evidenced thereby, (D) mature, with respect to
each Loan evidenced thereby, on the Termination Date, (E) be subject to
mandatory prepayment as provided in Section 4.3, (F) bear interest as
provided in the appropriate clause of Section 3.1 in respect of the Base
Rate Loans or Eurodollar Loans, as the case may be, evidenced thereby and (G)
be entitled to the benefits of this Agreement and the other applicable Loan
Documents.

(iii)    Provisions
of the Swing Line Note.  The Swing
Line Note issued to the Swing Line Lender shall (A) be executed by Borrower,
(B) be payable to the order of Swing Line Lender or its registered assigns and
be dated the Initial Borrowing Date, (C) be in a stated principal amount equal
to the Swing Line Commitment and be payable in the aggregate principal amount
of the Swing Line Loans evidenced thereby, (D) mature, with respect to each
Loan evidenced thereby, five (5) Business Days prior to the Termination Date,
(E) be subject to mandatory prepayment as provided in Section 4.3, (F)
bear interest as provided in Section 3.1 in respect of the Base Rate
Loans evidenced thereby and (G) be entitled to the benefits of this Agreement
and the other applicable Loan Documents.

    

(b)     Notation
of Payments.  Each Lender will note
on its internal records the amount of each Loan made by it and each payment in
respect thereof and will, prior to any transfer of any of its Notes, endorse on
the reverse side thereof the outstanding principal amount of Loans evidenced
thereby.  Failure to make any such
notation shall not affect Borrower's or any guarantor's obligations hereunder
or under the other applicable Loan Documents in respect of such Loans.

  

2.3    Minimum
Amount of Each Borrowing; Maximum Number of Borrowings.  The aggregate principal amount of each
Borrowing by Borrower hereunder shall be not less than (i) in the case of a
Base Rate Loan, $5,000,000 and, if greater, shall be in integral multiples of
$1,000,000 above such minimum (or, if less, the then Total Available Revolving
Commitment) and (ii) in the case of a Eurodollar Loan, $5,000,000 and, if
greater, shall be in integral multiples of $1,000,000 above such minimum and
(iii) in the case of a Swing Line Loan, $1,000,000 and, if greater, shall be in
integral multiples of $500,000 above such minimum.  More than one Borrowing may be incurred on any date; provided
that at no time shall there be outstanding more than seven (7) Borrowings of
Eurodollar Loans.

2.4    Borrowing
Options. The Term Loans and the Revolving Loans shall, at the option of
Borrower except as otherwise provided in this Agreement, be (i) Base Rate
Loans, (ii) Eurodollar Loans, or (iii) part Base Rate Loans and part Eurodollar
Loans.  As to any Eurodollar Loan, any
Lender may, if it so elects, fulfill its commitment by causing a foreign branch
or affiliate to make or continue such Loan, provided that in such event that
Lender's Commitment Percentage of the Loan shall, for the purposes of this
Agreement, be considered to have been made by that Lender and the obligation of
Borrower to repay that Lender's Commitment Percentage of the Loan shall
nevertheless be to that Lender and shall be deemed held by that Lender, for the
account of such branch or affiliate.

2.5    Notice
of Borrowing.  Whenever Borrower
desires to make a Borrowing of any Loan hereunder, it shall give Agent at its
office located at 90 Hudson Street, Fifth Floor, Jersey City, New Jersey, 07302
(or such other address as the Agent may hereafter designate in writing to the
parties hereto) (the "Notice Address") at least one Business Day's prior
written notice (or telephonic notice promptly confirmed in writing), given not
later than 12:00 P.M. (New York City time) of each Base Rate Loan, and at least
three Business Days' prior written notice (or telephonic notice promptly
confirmed in writing), given not later than 12:00 P.M. (New York City time), of
each Eurodollar Loan to be made hereunder; provided, however,
that a Notice of Borrowing with respect to Borrowings to be made on the date
hereof may, at the discretion of Agent, be delivered later than the time
specified above.  Whenever Borrower
desires that Swing Line Lender make a Swing Line Loan under Section 2.1(c),
it shall deliver to Swing Line Lender prior to 11:00 A.M. (New York City time)
on the date of Borrowing written notice (or telephonic notice promptly
confirmed in writing).  Each such notice
(each a "Notice of Borrowing"), which shall be in the form of Exhibit
2.5 hereto, shall be irrevocable, shall be deemed a representation by
Borrower that all conditions precedent to such Borrowing have been satisfied
and shall specify (i) the aggregate principal amount of the Loans to be made
pursuant to such Borrowing, (ii) the date of Borrowing (which shall be a
Business Day) and (iii) whether the Loans being made pursuant to such Borrowing
are to be Base Rate Loans or Eurodollar Loans and, with respect to Eurodollar
Loans, the Interest Period to be applicable thereto.  Agent shall as promptly as practicable give each Lender written
or telephonic notice (promptly confirmed in writing) of each proposed
Borrowing, of such Lender's Commitment Percentage thereof and of the other
matters covered by the Notice of Borrowing. 
Without in any way limiting Borrower's obligation to confirm in writing
any telephonic notice, Agent or the Swing Line Lender (in the case of Swing
Line Loans) may act without liability upon the basis of telephonic notice
reasonably believed by Agent in good faith to be from a Responsible Officer of
Borrower prior to receipt of written confirmation.  Agent's records shall, absent demonstrable error, be final,
conclusive and binding on Borrower with respect to evidence of the terms of
such telephonic Notice of Borrowing.

2.6    Conversion
or Continuation.  Borrower may elect
(i) on any Business Day occurring on or after the earlier of (i) the 30th day
after the Initial Borrowing Date and (ii) the Syndication Date to convert Base
Rate Loans or any portion thereof to Eurodollar Loans and (ii) at the end of
any Interest Period with respect thereto, to convert Eurodollar Loans or any
portion thereof into Base Rate Loans or to continue such Eurodollar Loans or
any portion thereof for an additional Interest Period; provided, however,
that the aggregate principal amount of the Eurodollar Loans for each Interest
Period therefor must be in an aggregate principal amount of $5,000,000 or
an integral multiple of $1,000,000 in excess thereof.  Each conversion or continuation of Revolving Loans shall be
allocated among the Revolving Loans of the Revolving Lenders in accordance with
their respective Commitment Percentages and each conversion or continuation of
Term Loans shall be allocated among the Term Loans of the Term Lenders in
accordance with their respective Commitment Percentages.  Each such election shall be in substantially
the form of Exhibit 2.6 hereto (a "Notice of Conversion or
Continuation") and shall be made by giving Agent at least three Business
Days' prior written notice thereof to the Notice Address specifying (i) the
amount and type of conversion or continuation, (ii) in the case of a conversion
to or a continuation of Eurodollar Loans, the Interest Period therefor, (iii)
whether such conversion or continuation is made with respect to Revolving Loans
or Term Loans and (iv) in the case of a conversion, the date of conversion
(which date shall be a Business Day and, if a conversion from Eurodollar Loans,
shall also be the last day of the Interest Period therefor).  Notwithstanding the foregoing, no conversion
in whole or in part of Base Rate Loans to Eurodollar Loans, and no continuation
in whole or in part of Eurodollar Loans upon the expiration of any Interest
Period therefor, shall be permitted at any time at which an Unmatured Event of
Default or an Event of Default shall have occurred and be continuing.  If, within the time period required under
the terms of this Section 2.6, Agent does not receive a Notice of
Conversion or Continuation from Borrower containing a permitted election to
continue any Eurodollar Loans for an additional Interest Period or to convert
any such Loans, then, upon the expiration of the Interest Period therefor, such
Loans will be automatically converted to Base Rate Loans.  Each Notice of Conversion or Continuation
shall be irrevocable.

2.7    Disbursement of Funds; Funding Assumptions.

  

(a)     No later than 12:00 P.M. (New York City
time) on the date specified in each Notice of Borrowing, each Lender will make
available its Commitment Percentage of Revolving Loans of the Borrowing requested
to be made on such date in Dollars and in immediately available funds, at the
office (the "Payment Office") of Agent located at 90 Hudson Street,
Fifth Floor, Jersey City, New Jersey, 07302 (for the account of such non-U.S.
office of Agent as Agent may direct in the case of Eurodollar Loans) and Agent
will make available to Borrower at its Payment Office the aggregate of the
amounts so made available by the Lenders.

(b)     Unless Agent shall have been notified by
any Lender at least one Business Day prior to the date of Borrowing that such
Lender does not intend to make available to Agent such Lender's portion of the
Loans to be purchased or Borrowing to be made on such date, Agent may assume
that such Lender has made such amount available to Agent on such date of
Borrowing and Agent may, but shall not be required to, in reliance upon such
assumption, make available to Borrower a corresponding amount.  If such corresponding amount is not in fact
made available to Agent by such Lender on the date of Borrowing, Agent shall be
entitled to recover such corresponding amount on demand from such Lender. If
such Lender does not pay such corresponding amount forthwith upon Agent's
demand therefor, Agent shall promptly notify Borrower and, if so notified,
Borrower shall immediately pay such corresponding amount to Agent.  Agent shall also be entitled to recover from
Borrower interest on such corresponding amount in respect of each day from the
date such corresponding amount was made available by Agent to Borrower to the
date such corresponding amount is recovered by Agent, at a rate per annum equal
to the rate for Base Rate Loans or Eurodollar Loans, as the case may be,
applicable during the period in question, provided, however, that
any interest paid to Agent in respect of such corresponding amount shall be
credited against interest payable by Borrower to such lender under Section
3.1 in respect of such corresponding amount.  Any amount due hereunder to Agent from any Lender which is not
paid when due shall bear interest payable by such Lender, from the date due
until the date paid, at the Federal Funds Rate for the first three days after
the date such amount is due and thereafter at the Federal Funds Rate plus 1%,
together with Agent's standard interbank processing fee.  Further, such Lender shall be deemed to have
assigned any and all payments made of principal and interest on its Loans,  amounts due with respect to its Letters of
Credit (or its participations therein) and any other amounts due to it
hereunder first to Agent to fund any outstanding Loans made available on behalf
of such Lender by Agent pursuant to this Section 2.7 until such
Loans have been funded (as a result of such assignment or otherwise) and then
to fund Loans of all Lenders other than such Lender until each Lender has
outstanding Loans equal to its Commitment Percentage of all Revolving Loans and
Term Loans (as a result of such assignment or otherwise).  Such Lender shall not have recourse against
Borrower with respect to any amounts paid to Agent or any Lender with respect
to the preceding sentence; provided, that such Lender shall have full recourse
against Borrower to the extent of the amount of such loans it has in fact
made.  Nothing herein shall be deemed to
relieve any Lender from its obligation to fulfill its Revolving Commitment
hereunder or to prejudice any rights which Borrower may have against the Lender
as a result of any default by such Lender hereunder.

  

2.8    Pro
Rata Borrowings.  All Borrowings of
Revolving Loans under this Agreement shall be loaned by the Lenders pro rata on
the basis of their Revolving Commitments. 
No Lender shall be responsible for any default by any other Lender in
its obligation to make Loans hereunder and each Lender shall be obligated to
make the Loans provided to be made by it hereunder, regardless of the failure
of any other Lender to fulfill its Revolving Commitment or make Revolving Loans
hereunder.

  2.9    Amount and Terms of Letter of Credit.

  

(a)     Letter of Credit Commitments, Terms of Letters of Credit.

    

(i)     Subject to and upon the terms and conditions herein set
forth and such other conditions as are applicable to its customers generally,
at any time and from time to time on or after the Initial Borrowing Date and
prior to the 30th Business Day preceding the Termination Date, the Facing Agent
agrees to issue, in its own name, but for the ratable benefit of all Revolving
Lenders (including Facing Agent) one or more Letters of Credit, each having a
Stated Amount in Dollars and on a sight basis, for the account of Borrower in
an aggregate undrawn amount at any one time outstanding that together with the
aggregate Stated Amount of other Letters of Credit then outstanding, does not
exceed $15,000,000; provided, however, that Facing Agent shall
not issue or extend the expiration of any Letter of Credit if, immediately
after giving effect to such issuance or extension, (A) the aggregate LC
Obligations at such time would exceed $15,000,000, or (B) the Available
Revolving Commitment of any Revolving Lender would be less than zero.  Each Revolving Lender severally, but not
jointly, agrees to participate in each such Letter of Credit issued by Facing
Agent to the extent of its Commitment Percentage and to make available to
Facing Agent such Revolving Lender's Commitment Percentage of any payment made
to the beneficiary of such Letter of Credit to the extent not reimbursed by
Borrower; provided, however, that no Revolving Lender shall be
required to participate in any Letter of Credit to the extent that such
participation therein would exceed such Revolving Lender's Available Revolving
Commitment then in effect; provided, further, that, after giving
effect to the Issuance of any Letter of Credit, the aggregate amount of all LC
Obligations, and the aggregate amount of all Revolving Loans and Swing Line
Loans then outstanding, shall not exceed the lesser of (i) the Borrowing Base
and (ii) the Total Revolving Commitment. 
No Lender's obligation to participate in any Letter of Credit or to make
available to Facing Agent such Revolving Lender's Commitment Percentage of any
Letter of Credit Payment made by Facing Agent shall be affected by any other
Revolving Lender's failure to participate in the same or any other Letter of
Credit or by any other Revolving Lender's failure to make available to Facing
Agent such other Revolving Lender's Commitment Percentage of any Letter of
Credit Payment.  Notwithstanding the
foregoing, in the event a Lender Default exists, Facing Agent shall not be
required to issue any Letter of Credit unless Facing Agent has entered into
arrangements satisfactory to it and Borrower to eliminate such Facing Agent's
risk with respect to the participation in Letters of Credit of the Defaulting
Lender or Lenders, including by cash collateralizing such Defaulting Lender's
or Lenders' Commitment Percentage of the LC Obligations.  Schedule 2.9(a)(i) lists all Letters
of Credit outstanding on the Third Amended and Restated Effective Date and
which, for purposes of clarification, it is agreed shall remain outstanding
under this Agreement.  

(ii)     Each
Standby Letter of Credit issued or to be issued hereunder shall have an
expiration date of one (1) year or less after the issuance date thereof; provided,
however, that each Standby Letter of Credit may provide by its terms
that it will be automatically extended for additional successive one (1) year
periods unless Facing Agent shall have given notice to the applicable
beneficiary of the election by Facing Agent (such election to be in the sole
and absolute discretion of Facing Agent) not to extend such Letter of Credit; provided,
further, that no Standby Letter of Credit or extension thereof shall be
stated to expire later than the 10th Business Day preceding the date set forth
in clause (a) of the definition of Termination Date.  Each Commercial Letter of Credit issued or
to be issued hereunder shall have an expiration date not later than 180 days
after the date of issuance or the date which is 30 Business Days preceding the
Termination Date.

    

(b)     Procedure
for Issuance of Letters of Credit. 
Whenever Borrower desires the issuance of a Letter of Credit hereunder,
it shall give Agent and Facing Agent at least three (3) Business Days' prior
written notice (or such shorter period as may be agreed to by Borrower, Agent
and Facing Agent) specifying the day of issuance thereof (which day shall be a
Business Day), such notice to be given prior to 11:00 A.M. (New York City time)
on the date specified for the giving of such notice.  Each such notice (each, a "Letter of Credit Request")
shall be in the form of Exhibit 2.9 hereto and shall specify (A)
the proposed issuance date and expiration date, (B) the name(s) of each obligor
with respect to such Letter of Credit, (C) Borrower as the account party, (D)
the name and address of the beneficiary (which Person shall be reasonably
acceptable to Facing Agent), (E) the Stated Amount of such proposed Letter of
Credit and (F) the purpose of such Letter of Credit and such other information
as Facing Agent may reasonably request. 
In addition, each Letter of Credit Request shall contain a description
of the terms and conditions to be included in such proposed Letter of
Credit.  Promptly after the issuance of
or amendment to a Standby Letter of Credit, the Facing Agent shall notify the
Borrower and the Agent, in writing, of such issuance or amendment, and such
notice shall be accompanied by a copy of such issuance or amendment.  Upon receipt of such notice, the Agent shall
notify the Revolving Lenders, in writing of such issuance or amendment and if
requested to by a Revolving Lender, the Agent shall provide such Revolving
Lender with a copy of such issuance or amendment.  With regards to Commercial Letters of Credit, the Facing Agent
shall on the first Business Day of each week provide the Agent by facsimile with
a report detailing the aggregate daily outstanding amount of Commercial Letters
of Credit issued by such Facing Agent for the prior week.  Unless otherwise specified, all Letters of
Credit will be governed by Uniform Customs and Practice for Documentary Credits
(the "UCP").  On the
Business Day specified by Borrower and upon fulfillment or waiver of the
applicable conditions set forth in Article VI,  Facing Agent will issue the requested Letter of Credit to the
applicable beneficiary.

(c)     Draws
upon Letters of Credit; Reimbursement Obligation.  In the event of any drawing under any Letter of Credit by the
beneficiary thereof (each such drawing until reimbursed, an "Unpaid
Drawing"), Facing Agent shall give telephonic notice to Borrower and
Agent (x) confirming such drawing and (y) of the date on or before which Facing
Agent intends to honor such drawing, and Borrower shall reimburse Facing Agent
on the day on which such drawing is honored in an amount in same day funds and
like currency equal to the amount of such drawing; provided, however,
that, anything contained in this Agreement to the contrary notwithstanding, (i)
unless Borrower shall have notified Agent and Facing Agent prior to 11:00 A.M.
(New York City time) on the Business Day Facing Agent intends to honor such
drawing that Borrower intends to reimburse Facing Agent for the amount of such
drawing with funds other than the proceeds of Revolving Loans, Borrower shall
be deemed to have timely given a Notice of Borrowing to Agent requesting each Revolving
Lender to make Revolving Loans which are Base Rate Loans on the date on which
such drawing is honored in an amount equal to the amount of such drawing and
(ii) subject to satisfaction or waiver of the conditions specified in Section
6.3, each such Revolving Lender shall, on the date of such drawing, make
Revolving Loans which are Base Rate Loans in the amount of its Commitment
Percentage of such drawing, the proceeds of which shall be applied directly by
Agent to reimburse Facing Agent for the amount of such drawing; provided,
further, that, if for any reason, proceeds of Revolving Loans are not
received by Facing Agent on such date in an amount equal to the amount of such
drawing, Borrower shall reimburse Facing Agent, on the Business Day immediately
following the date of such drawing, in an amount in same day funds equal to the
excess of the amount of such drawing over the amount of such Revolving Loans,
if any, which are so received, plus accrued interest on such amount at the rate
set forth in Section 3.1(a).

(d)     Lenders'
Participation in Letters of Credit. 
In the event that Borrower shall fail to reimburse Facing Agent as
provided in Section 2.9(c) in an amount equal to the amount of any
drawing honored by Facing Agent under a Letter of Credit issued by it in
accordance with the terms hereof, Facing Agent shall promptly notify Agent and
Agent shall promptly notify each Revolving Lender of the unreimbursed amount of
such drawing and of such Revolving Lender's respective participation therein.  Each such Lender shall make available to
Facing Agent an amount equal to its Commitment Percentage of such drawing in
same day funds, at the office of Facing Agent specified in such notice, not
later than 1:00 P.M. (New York City time) on the Business Day after the date
such Revolving Lender is notified by Agent. 
In the event that any such Revolving Lender fails to make available to
Facing Agent the amount of such Revolving Lender's participation in such Letter
of Credit as provided in this Section 2.9(d), Facing Agent shall be
entitled to recover such amount on demand from such Lender together with
interest at the Federal Funds Effective Rate for two Business Days and
thereafter at the Base Rate.  Nothing in
this Section 2.9(d) shall be deemed to prejudice the right of any
Revolving Lender to recover from Facing Agent any amounts made available by
such Revolving Lender to Facing Agent pursuant to this Section 2.9(d) in
the event that it is determined that the payment with respect to a Letter of
Credit by Facing Agent in respect of which payment was made by such Revolving
Lender constituted gross negligence or willful misconduct as determined by a
court of competent jurisdiction on the part of Facing Agent.  Facing Agent shall distribute to each other
Revolving Lender which has paid all amounts payable by it under this Section
2.9(d) with respect to any Letter of Credit issued by Facing Agent such
other Revolving Lender's Commitment Percentage of all payments received by
Facing Agent from Borrower in reimbursement of drawings honored by Facing Agent
under such Letter of Credit when such payments are received.  Upon any change in the Revolving Commitments
of the Revolving Lenders pursuant to Section 3.7 or 12.8(c) or
otherwise, it is hereby agreed that, with respect to all LC Obligations, there
shall be an automatic adjustment to the participations pursuant to this Section 2.9(d)
to reflect the new Commitment Percentages of the assigning Lender and the
Assignee.

(e)     Fees for Letters of Credit.

    

(i)     Facing
Agent.  Borrower agrees to pay the
following amount to Facing Agent with respect to Letters of Credit issued by it
for the account of Borrower:

      

(A)    with respect to drawings made under any
Letter of Credit, interest, payable on demand, at a rate which is at all times
equal to the sum of (i) 2% per annum, (ii) the Base Rate, and (iii) the
Applicable Margin on the amount paid by Facing Agent in respect of each such
drawing from the date of the drawing to the date such amount is reimbursed by
Borrower (including any such reimbursement out of the proceeds of Revolving
Loans pursuant to Section 2.9(c));

(B)    with respect to the issuance or amendment
of each Letter of Credit and each drawing made thereunder, documentary and
processing charges in accordance with Facing Agent's standard schedule for such
charges in effect at the time of such issuance, amendment, transfer or drawing,
as the case may be; and

(C)    a facing fee as agreed to between
Borrower and the applicable Facing Bank for the applicable Letter of Credit and
unless otherwise agreed, shall be payable with respect to the maximum Stated
Amount under such outstanding Letters of Credit payable in arrears on the
Quarterly Payment Date, on the Termination Date and thereafter, on demand
together with customary issuance and drawing charges payable pursuant to clause
(B) above; provided, however, if calculation of the facing fee in
the manner set forth above would result in a facing fee of less than $500 per
year per Letter of Credit, Borrower shall be obligated to pay such additional
amount to the applicable Facing Bank so as to provide for a minimum facing fee
of $500 per year per Letter of Credit.

      

(ii)     Participating
Lender.  Borrower agrees to pay to
Agent for distribution to each participating Revolving Lender in respect of all
Letters of Credit outstanding such Revolving Lender's Commitment Percentage of
a commission equal to the Applicable Eurodollar Rate Margin with respect to the
daily Stated Amount under such outstanding Letters of Credit (the "LC
Commission"), payable in arrears on each Quarterly Payment Date, on the
Termination Date and thereafter, on demand. 
The LC Commission shall be computed from the first day of issuance of
each Letter of Credit and on the basis of the actual number of days elapsed
over a year of 360 days.

    

  

Promptly upon receipt by Facing Agent or
Agent of any amount described in clause (i)(A) and clause (ii) of this Section
2.9(e), Facing Agent or Agent shall distribute to each Revolving Lender
that has reimbursed Facing Agent in accordance with Section 2.9(d) its
Commitment Percentage of such amount. 
Amounts payable under clauses (i)(A), (B) and (C) of this Section
2.9(e) shall be paid directly to Facing Agent.

  

(f)     LC
Obligations Unconditional.  Subject
to the last paragraph of Section 2.9(g), the obligation of Borrower
to reimburse Facing Agent for drawings made under any Letter of Credit issued
by it and the obligations of each Revolving Lender under Section 2.9(d)
with respect thereto shall be unconditional and irrevocable and shall be paid
strictly in accordance with the terms of this Agreement under all
circumstances, including, without limitation, any of the following
circumstances:

    

(i)     any
lack of validity or enforceability of such Letter of Credit;

(ii)     the
existence of any claim, setoff, defense or other right which Borrower or any of
its Affiliates may have at any time against a beneficiary or any transferee of
such Letter of Credit (or any persons or entities for which any such
beneficiary or transferee may be acting), Facing Agent, any Lender or any other
Person, whether in connection with this Agreement, the transactions
contemplated herein or any unrelated transaction (including any underlying
transaction between Borrower or one of its Subsidiaries and the beneficiary of
such Letter of Credit);

(iii)    any
draft, demand, certificate or any other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect, provided
the same appears on its face to comply with the draw requirements for the
Letter of Credit;

(iv)    payment
by Facing Agent under such Letter of Credit against presentation of a demand,
draft or certificate or other document which does not comply with the terms of
such Letter of Credit, provided the same appears on its face to comply with the
draw requirements for the Letter of Credit;

(v)     the
fact that an Event of Default or an Unmatured Event of Default shall have
occurred and be continuing.

    

(g)     Indemnification.  In addition to amounts payable as elsewhere
provided in this Agreement, Borrower hereby agrees to protect, indemnify, pay
and save Facing Agent harmless from and against any and all claims, demands,
liabilities, damages, losses, costs, charges and expenses (including reasonable
attorneys fees) (other than for Taxes, which shall be covered by Section 4.7)
which Facing Agent may incur or be subject to as a consequence, direct or
indirect, of (i) the issuance of the Letters of Credit, other than as a result of
the gross negligence or willful misconduct of Facing Agent as determined by a
court of competent jurisdiction or (ii) the failure of Facing Agent to honor a
drawing under any Letter of Credit as a result of any act or omissions, whether
rightful or wrongful, of any present or future de jure or de facto government
or Governmental Authority (all such acts or omissions herein called "Government
Acts").  As between Borrower and
Facing Agent, Borrower assumes all risks of the acts and omissions of, or
misuse of the Letters of Credit issued by Facing Agent by, the respective
beneficiaries of such Letters of Credit. 
In furtherance and not in limitation of the foregoing, Facing Agent
shall not be responsible: (i) for the form, validity, sufficiency, accuracy, genuineness
or legal effect of any document submitted by any party in connection with the
application for and issuance of or any drawing under such Letters of Credit,
even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged, provided such document appears
on its face to comply with the requirements applicable to it; (ii) for the
validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign any such Letter of Credit or the rights or
benefits thereunder or proceeds thereof, in whole or in part, which may prove
to be invalid or ineffective for any reason; (iii) for failure of the
beneficiary of any such Letter of Credit to comply fully with conditions
required in order to draw upon such Letter of Credit; (iv) for errors,
omissions, interruptions or delays in transmission or delivery of any messages,
by mail, cable, telegraph, telex or otherwise, whether or not they be in
cipher; (v) for errors in interpretation of technical terms; (vi) for any loss
or delay in the transmission or otherwise of any document required in order to
make a drawing under any such Letter of Credit or of the proceeds thereof;
(vii) for the misapplication by the beneficiary of any such Letter of Credit of
the proceeds of any drawing under such Letter of Credit; and (viii) for any
consequences arising from causes beyond the control of Facing Agent, including,
without limitation, any Government Acts. 
None of the above shall affect, impair, or prevent the vesting of any of
Facing Agent's rights or powers hereunder.

In furtherance and extension and not in
limitation of the specific provisions hereinabove set forth, any action taken
or omitted by Facing Agent under or in connection with the Letters of Credit
issued by it or the related certificates, if taken or omitted in good faith,
shall not put Facing Agent under any resulting liability to Borrower.  Notwithstanding anything to the contrary
contained in this Agreement, Borrower shall have no obligation to indemnify
Facing Agent in respect of any liability incurred by Facing Agent arising
solely out of the gross negligence or willful misconduct of Facing Agent.  The right of indemnification in the first
paragraph of this Section 2.9(g) shall not prejudice any rights that
Borrower may otherwise have against Facing Agent with respect to a Letter of
Credit issued hereunder.

 (h)    Increased Costs.  If at any time after the Closing
Date, any Facing Agent or any Lender determines that the introduction of or
any change in any applicable law, rule, regulation, order, guideline or request
or in the interpretation or administration thereof by any Governmental
Authority charged with the interpretation or administration thereof, or
compliance by such Facing Agent or such Lender with any request or directive by
any such authority (whether or not having the force of law), shall either (i)
impose, modify or make applicable any reserve, deposit, capital adequacy or
similar requirement against Letters of Credit issued by Facing Agent or
participated in by any Lender, or (ii) impose on any Facing Agent or any Lender
any other conditions relating, directly or indirectly, to this Agreement or any
Letter of Credit; and the result of any of the foregoing is to increase the cost
to any Facing Agent or any Lender of issuing, maintaining or participating in
any Letter of Credit, or reduce the amount of any sum received or receivable by
any Facing Agent or any Lender hereunder or reduce the rate of return on its
capital with respect to Letters of Credit, then, upon demand to Borrower by
Facing Agent or any Lender (a copy of which demand shall be sent by such Facing
Agent or such Lender to Agent), Borrower shall pay to such Facing Agent or such
Lender such additional amount or amounts as will compensate such Facing Agent
or such Lender for such increased cost or reduction in the amount receivable or
reduction on the rate of return on its capital.  In determining such additional amounts pursuant to the preceding
sentence, such Facing Agent or such Lender will act reasonably and in good
faith and will, to the extent the increased costs or reductions in amounts
receivable or reductions in rates of return relate to such Facing Agent's or
such Lender's letters of credit in general and are not specifically
attributable to the Letters of Credit hereunder, use averaging and attribution
methods which are reasonable and which cover all letters of credit similar to
the Letters of Credit issued by or participated in by such Facing Agent or such
Lender whether or not the documentation for such other Letters of Credit permit
such Facing Agent or such Lender to receive amounts of the type described in
this Section 2.9(i).  Any Facing
Agent or any Lender, upon determining that any additional amounts will be
payable pursuant to this Section 2.9(i), will give prompt written notice
thereof to Borrower, which notice shall include a certificate submitted to
Borrower by such Facing Agent or such Lender (a copy of which certificate shall
be sent by such Facing Agent or such Lender to Agent), setting forth in
reasonable detail the basis for the calculation of such additional amount or
amounts necessary to compensate such Facing Agent or such Lender, although
failure to give any such notice shall not release or diminish Borrower's
obligations to pay additional amounts pursuant to this Section 2.9(i)
provided that Borrower shall not be required to compensate a Lender or a Facing
Agent pursuant to this section for any increased costs or reductions incurred
more than 180 days prior to the date that such Lender or such Facing Agent, as
the case may be, notifies Borrower of the additional amounts and of such
Lender's or Facing Agent's intention to claim compensation therefor; provided
further that, if the change in law giving rise to such increased costs or
reductions is retroactive, then the 180-day period referred to above shall be
extended to include the period of retroactive effect thereof. The certificate
required to be delivered pursuant to this Section 2.9(i) shall, absent
demonstrable error, be final, conclusive and binding on Borrower and the Facing
Agent or the Lender, as applicable.

  

ARTICLE III

INTEREST AND FEES

3.1    Interest. 

  

(a)     Base
Rate Loans.  Borrower agrees to pay
interest in respect of the unpaid principal amount of each Base Rate Loan at a
rate per annum equal to the Base Rate plus the Applicable Margin from the date
the proceeds thereof are made available to Borrower until the earlier of (i)
the maturity (whether by acceleration or otherwise) of such Base Rate Loan or
(ii) the conversion of such Base Rate Loan to a Eurodollar Loan pursuant to Section
2.6.

(b)     Eurodollar
Loans.  Borrower agrees to pay
interest in respect of the unpaid principal amount of each Eurodollar Loan from
the date the proceeds thereof are made available to Borrower until the earlier
of (i) the maturity (whether by acceleration or otherwise) of such Eurodollar
Loan or (ii) the conversion of such Eurodollar Loan to a Base Rate Loan
pursuant to Section 2.6 at a rate per annum equal to the relevant
Eurodollar Rate plus the Applicable Margin

(c)     Payment
of Interest.  Interest on each Loan
shall be payable in arrears on each Interest Payment Date; provided, however,
that interest accruing pursuant to Section 3.1(e) shall be payable from time
to time on demand.  Interest shall also
be payable on all then outstanding Loans on the Termination Date and on all
Loans on the date of repayment (including prepayment) thereof (except that
voluntary prepayments of Revolving Loans that are Base Rate Loans made pursuant
to Section 4.2 on any day other than an Interest Payment Date or the
Termination Date need not be made with accrued interest from the most recent
Quarterly Payment Date, provided such accrued interest is paid on the next
Interest Payment Date) and on the date of maturity (by acceleration or
otherwise) of such Loans.  During the
existence of any Event of Default, interest on any Loan shall be payable on
demand.

(d)     Notification
of Rate.  Agent, upon determining in
accordance herewith the interest rate for any Borrowing of Eurodollar Loans for
any Interest Period, shall promptly notify Borrower and the Lenders
thereof.  Such determination shall,
absent demonstrable error and subject to Section 3.6, be final,
conclusive and binding upon all parties hereto.

(e)     Default
Interest.  Notwithstanding the rates
of interest specified herein, effective on the date 30 days after the
occurrence and continuance during such 30 day period of any Event of Default
(other than the failure to pay Obligations when due) and for so long thereafter
as any Event of Default shall be continuing, and effective immediately upon any
failure to pay any Obligations or any other amounts due under any of the Loan
Documents when due, whether by acceleration or otherwise, the principal balance
of each Loan then outstanding and, to the extent permitted by applicable law,
any interest payment on each Loan not paid when due or other amounts then due
and payable shall bear interest payable on demand, after as well as before
judgment at a rate per annum equal to the Default Rate.

(f)     Maximum
Interest.  If any interest payment
or other charge or fee payable hereunder exceeds the maximum amount then
permitted by applicable law, Borrower shall be obligated to pay the maximum
amount then permitted by applicable law and Borrower shall continue to pay the
maximum amount from time to time permitted by applicable law until all such
interest payments and other charges and fees otherwise due hereunder (in the
absence of such restraint imposed by applicable law) have been paid in full.

  

3.2    Fees.

  

(a)     Commitment
Fee.  On each Quarterly Payment
Date, and on the Termination Date (or, if earlier, on the date upon which the
Revolving Commitments are terminated and the Loans are paid in full and the LC Obligations
are paid in full or cash collateralized in a manner satisfactory to Agent),
Borrower shall pay to Agent, for the ratable benefit of the Lenders, a
commitment fee equal to the Applicable Commitment Fee which accrued during the
quarterly period most recently ended (or, in the case of the payment due on the
Termination Date, the portion thereof ending on such date).  Such commitment fee shall be based upon the
average unused Revolving Commitments of the Lenders during the preceding
quarter.

(b)     Agency
Fees.  Borrower shall pay to Agent
for its own account, agency and other Loan fees in the amount and at the times
set forth in the letter agreement between Borrower and Agent.

(c)     Third Amended and Restated Credit
Agreement Fees.  In consideration of
the execution of the Third Amended and Restated Credit Agreement by the Agent
and the Lenders, the Borrower hereby agrees to pay to each Lender executing
this Agreement a fee in an amount equal to (a) such Lender's Revolving
Commitment in effect on the Third Amended and Restated Effective Date (after
giving effect to the Third Amended and Restated Credit Agreement) plus the
aggregate outstanding principal amount of such Lender's Term Loans multiplied
by (b) 0.500%.  

(d)     July
1, 2003 Special Fee.  Borrower shall
pay on July 1, 2003, a special one-time fee to each Lender in an amount equal
to (a) such Lender's Revolving Commitment (as in effect on such date) plus the
aggregate outstanding principal amount of such Lender's Term Loans (as
outstanding on such date) multiplied by (b) 0.750%.  

  

3.3    Computation
of Interest and Fees.  Interest on
all Loans and fees payable hereunder shall be computed on the basis of the
actual number of days elapsed over a year of 360 days; provided that
interest on all Base Rate Loans shall be computed on the basis of the actual
number of days elapsed over a year of 365 or 366 days, as the case may be.  Each determination of an interest rate by
Agent pursuant to any provision of this Agreement and in accordance therewith
shall be conclusive and binding on Borrower, Agent and the Lenders in the
absence of demonstrable error.  Agent
shall, at any time and from time to time upon request of Borrower, deliver to
Borrower a statement showing the quotations used by Agent in determining any interest
rate applicable to Loans pursuant to this Agreement.  Each change in the Applicable Margin, the Applicable Commitment
Fee or any change in the applicable LC Commission as a result of a change in
Borrower's Most Recent Ratio of Total Debt to EBITDA shall become effective on
the Adjustment Date.

3.4    Interest
Periods.  At the time it gives any
Notice of Borrowing or a Notice of Conversion or Continuation with respect to
Eurodollar Loans, Borrower shall elect, by giving Agent written notice, the
interest period (each an "Interest Period") which Interest Period shall,
at the option of Borrower, be one, two, three or six months, provided that:

  
    

(i)     all Eurodollar Loans
comprising a single Borrowing shall at all times have the same Interest Period;

(ii)     the initial Interest
Period for any Eurodollar Loan shall commence on the date of such Borrowing of
such Eurodollar Loan (including the date of any conversion thereto from a Loan
of a different Type) and each Interest Period occurring thereafter in respect of
such Eurodollar Loan shall commence on the last day of the immediately
preceding Interest Period;

(iii)    if any Interest Period
relating to a Eurodollar Loan begins on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period,
such Interest Period shall end on the last Business Day of such calendar month;

(iv)    if any Interest Period
would otherwise expire on a day which is not a Business Day, such Interest
Period shall expire on the next succeeding Business Day; provided, however,
that if any Interest Period for a Eurodollar Loan would otherwise expire on a
day which is not a Business Day but is a day of the month after which no
further Business Day occurs in such month, such Interest Period shall expire on
the next preceding Business Day;

(v)     no Interest Period may
be selected at any time when an Unmatured Event of Default or Event of Default
is then in existence; and

(vi)    no Interest Period
shall extend beyond the Termination Date.

    

  

3.5    Compensation for Funding Losses.

  

(a)     Borrower
shall compensate each Lender, upon its written request (which request shall set
forth in reasonable detail the basis for requesting such amounts), for all
losses, expenses and liabilities (including, without limitation, any interest
paid by such Lender to lenders of funds borrowed by it to make or carry its
Eurodollar Loans to the extent not recovered by the Lender in connection with
the liquidation or re-employment of such funds and including the compensation
payable by such Lender to a Participant but excluding loss of anticipated
profit with respect to any Loans) and any loss sustained by such Lender in
connection with the liquidation or re-employment of such funds (including,
without limitation, a return on such liquidation or re-employment that would
result in such Lender receiving less than it would have received had such
Eurodollar Loan remained outstanding until the last day of the Interest Period
applicable to such Eurodollar Loans) which such Lender may sustain as a result
of (regardless of whether such events occur as a result of an Event of Default
or Unmatured Event of Default or the exercise of any right or remedy of Agent
or the Lenders under this Agreement or any other agreement, or at law): (i) any
failure by Borrower to continue or borrow, or convert from or into, Eurodollar
Loans on a date specified therefor in a Notice of Borrowing or Notice of
Conversion or Continuation delivered by Borrower (whether or not withdrawn);
(ii) any payment, prepayment or conversion or continuation of any of its
Eurodollar Loans occurring for any reason whatsoever on a date which is not the
last day of an Interest Period applicable thereto; (iii) any repayment of any
of its Eurodollar Loans not being made on the date specified in a notice of
payment given by Borrower; or (iv) (A) any other failure by Borrower to repay
its Eurodollar Loans when required by the terms of this Agreement or (B) an
election made by Borrower pursuant to Section 3.7.  Such a written request as to additional
amounts owed such Lender under this Section 3.5 and delivered to
Borrower and Agent by such Lender shall, absent demonstrable error, be final,
conclusive and binding for all purposes.

(b)     Calculation
of all amounts payable to a Lender under this Section 3.5 shall be made
as though that Lender had actually funded its relevant Eurodollar Loan through
the purchase of a Eurodollar deposit bearing interest at the Eurodollar Rate in
an amount equal to the amount of that Loan, having a maturity comparable to the
relevant Interest Period and through the transfer of such Eurodollar deposit
from an offshore office of that Lender to a domestic office of that Lender in
the United States of America; provided, however, that each Lender
may fund each of its Eurodollar Loans in any manner it sees fit and the
foregoing assumption shall be utilized only for the calculation of amounts
payable under this Section 3.5.

  

3.6     
Increased Costs, Illegality, Etc. 

  

(a)     Generally.  In
the event that:

    

(i)     on any Interest Rate Determination Date, by reason of any
changes arising after the date of this Agreement affecting the interbank
Eurodollar market, adequate and fair means do not exist for ascertaining the
applicable interest rate on the basis provided for in the definition of
Eurodollar Rate; or

(ii)     at any time, any Lender shall incur increased costs or reduction in the
amounts received or receivable hereunder with respect to any Eurodollar Loan
because of (x) any change since the date of this Agreement in any applicable
law or governmental rule, regulation, order, guideline or request (whether or
not having the force of law) or in the interpretation or administration thereof
and including the introduction of any new law or governmental rule, regulation,
order, guideline or request, such as, for example, but not limited to: (A) a
change in the basis of taxation of payments to any Lender of the principal of
or interest on the Notes or any other amounts payable hereunder (except for (a)
changes in the rate of tax on, or determined by reference to, the net income or
profits of such Lender imposed by the jurisdiction in which its principal
office or applicable lending office is located and (b) United States
withholding taxes, which shall be governed by the provisions of Section 4.6)
or (B) a change in official reserve requirements (but, in all events, excluding
reserves required under Regulation D to the extent included in the computation
of the Eurodollar Rate) and/or (y) other circumstances since the date of this
Agreement affecting such Lender or the interbank Eurodollar market or the
position of such Lender in such market (excluding, however, differences in a
Lender's cost of funds from those of Agent which are solely the result of
credit differences between such Lender and Agent); or

(iii)    at any time, the making or continuance of any Eurodollar Loan has been
made (x) unlawful by any law or governmental rule, regulation or order, (y)
impossible by compliance by any Lender in good faith with any governmental
request (whether or not having force of law) or (z) impracticable as a result
of a contingency occurring after the date of this Agreement which materially
and adversely affects the interbank Eurodollar market;

then, and in any such event, such Lender (or Agent, in the
case of clause (i) above) shall promptly give notice (by telephone confirmed in
writing), which notice shall, absent demonstrable error, be final and
conclusive and binding upon all parties hereto, to Borrower and, except in the
case of clause (i) above, to Agent of such determination (which notice Agent
shall promptly transmit to each of the other Lenders).  Thereafter (x) in the case of clause (i)
above, Eurodollar Loans shall no longer be available until such time as Agent
notifies Borrower and the Lenders that the circumstances giving rise to such
notice by Agent no longer exist, and any Notice of Borrowing or Notice of
Conversion or Continuation given by Borrower with respect to Eurodollar Loans
(other than with respect to conversions to Base Rate Loans) which have not yet
been incurred (including by way of conversion) shall be deemed rescinded by
Borrower, (y) in the case of clause (ii) above, Borrower shall pay to such
Lender, upon written demand therefor, such additional amounts (in the form of
an increased rate of, or a different method of calculating, interest or
otherwise as such Lender shall reasonably determine) as shall be required to
compensate such Lender for such increased costs or reductions in amounts
received or receivable hereunder (a written notice as to the additional amounts
owed to such Lender, showing the basis for the calculation thereof, submitted
to Borrower by such Lender shall, absent demonstrable error, be final and
conclusive and binding on all the parties hereto; however the failure to give
any such notice shall not release or diminish Borrower's obligations to pay
additional amounts pursuant to this Section 3.6 (a)(y) provided that
Borrower shall not be required to compensate such Lender pursuant to this
section for any increased costs or reductions incurred more than 180 days prior
to the date that such Lender notifies Borrower of the increased costs or
reductions and of such Lender's intention to claim compensation therefor; provided
further that, if the change in law giving rise to such increased costs or
reductions is retroactive, then the 180-day period referred to above shall be
extended to include the period of retroactive effect thereof and (z) in the
case of clause (iii) above, Borrower shall take one of the actions specified in
Section 3.6(b) as promptly as possible and, in any event, within the
time period required by law.  In
determining such additional amounts pursuant to clause (y) of the immediately
preceding sentence, each Lender shall act reasonably and in good faith and
will, to the extent the increased costs or reductions in amounts receivable
relate to such Lender's loans in general and are not specifically attributable
to a Loan hereunder, use averaging and attribution methods which are reasonable
and which cover all loans similar to the Loans made by such Lender whether or
not the loan documentation for such other loans permits the Lender to receive
increased costs of the type described in this Section 3.6(a).

    

(b)     Eurodollar
Loans.  At any time that any
Eurodollar Loan is affected by the circumstances described in Section
3.6(a)(ii) or (iii), Borrower may (and, in the case of a Eurodollar
Loan affected by the circumstances described in Section 3.6(a)(iii),
shall) either (i) if the affected Eurodollar Loan is then being made initially
or pursuant to a conversion, cancel the respective Borrowing by giving Agent
telephonic notice (confirmed in writing) on the same date that Borrower was
notified by the affected Lender or Agent pursuant to Section 3.6(a)(ii)
or (iii), or (ii) if the affected Eurodollar Loan is then outstanding,
upon at least three Business Days' written notice to Agent, require the
affected Lender to convert such Eurodollar Loan into a Base Rate Loan, provided,
that if more than one Lender is affected at any time, then all affected Lenders
must be treated the same pursuant to this Section 3.6(b).

(c)     Capital
Requirements.  If any Lender
determines that the introduction of or any change in any applicable law or
governmental rule, regulation, order, guideline or request (whether or not
having the force of law) concerning capital adequacy, or any change in (after
the date of this Agreement) interpretation or administration thereof by any
Governmental Authority, central bank or comparable agency, will have the effect
of increasing the amount of capital required or expected to be maintained by
such Lender or any corporation controlling such Lender based on the existence
of such Lender's Revolving Commitment or Term Loans hereunder or its
obligations hereunder, then Borrower shall pay to such Lender, upon its written
demand therefor, such additional amounts as shall be required to compensate
such Lender or such other corporation for the increased cost to such Lender or
such other corporation or the reduction in the rate of return to such Lender or
such other corporation as a result of such increase of capital.  In determining such additional amounts, each
Lender will act reasonably and in good faith and will use averaging and
attribution methods which are reasonable and which will, to the extent the
increased costs or reduction in the rate of return relates to such Lender's
commitments or obligations in general and are not specifically attributable to
the Revolving Commitments, Term Loans and obligations hereunder, cover all
commitments and obligations similar to the Revolving Commitment or Term Loans
and obligations of such Lender hereunder whether or not the loan documentation
for such other commitments or obligations permits the Lender to make the
determination specified in this Section 3.6(c), and such Lender's
determination of compensation owing under this Section 3.6(c) shall,
absent demonstrable error, be final and conclusive and binding on all the
parties hereto.  Each Lender, upon
determining that any additional amounts will be payable pursuant to this Section 3.6(c),
will give prompt written notice thereof to Borrower, which notice shall show in
reasonable detail the basis for calculation of such additional amounts,
although the failure to give any such notice shall not release or diminish any
of Borrower's obligations to pay additional amounts pursuant to this Section
3.6(c) provided that Borrower shall not be required to compensate such
Lender pursuant to this Section 3.6(c) for any increased costs or
reductions incurred more than 180 days prior to the date that such Lender
notifies Borrower of the increased costs or reductions and of such Lender's
intention to claim compensation therefor; provided further that, if the
change in law giving rise to such increased costs or reductions is retroactive,
then the 180-day period referred to above shall be extended to include the
period of retroactive effect thereof.

(d)     Change
of Lending Office.  Each Lender
which is or will be owed compensation pursuant to Section 3.6(a) or (c)
will, if requested by Borrower, use reasonable efforts (subject to overall
policy considerations of such Lender) to cause a different branch or Affiliate
to make or continue a Loan or Letter of Credit if such designation will avoid
the need for, or materially reduce the amount of, such compensation to such
Lender and will not, in the judgment of such Lender, be otherwise
disadvantageous to such Lender. 
Borrower hereby agrees to pay all reasonable expenses incurred by any Lender
in utilizing a different branch or Affiliate pursuant to this Section 3.6(d).  Nothing in this Section 3.6(d) shall
affect or postpone any of the obligations of Borrower or the right of any
Lender provided for herein.

  

3.7    Replacement of Affected Lenders.  (x) If any Lender becomes a Defaulting
Lender or otherwise defaults in its Obligations to make Revolving Loans or fund
Unpaid Drawings, (y) if any Lender is owed increased costs under Section
3.6(a)(ii) or (iii), Section 3.6(c) or Borrower is required
to make any payments under Section 4.6 to any Lender materially in
excess of those to the other Lenders or (z) as provided in Section 11.1(b)
in the case of certain refusals by a Lender to consent to certain proposed
amendments, changes, supplements, waivers, discharges or terminations with respect
to this Agreement which have been approved by the Required Lenders, Borrower
shall have the right, if no Event of Default or Unmatured Event of Default then
exists, to replace such Lender (the "Replaced Lender") with one or more
other Eligible Assignee or Eligible Assignees, none of whom shall be a
Defaulting Lender at the time of such replacement (collectively, the "Replacement
Lender") acceptable to Agent, provided that (i) at the time of any
replacement pursuant to this Section 3.7, the Replacement Lender shall
enter into one or more assignment agreements, in the form of Exhibit 11.9
hereto, pursuant to which the Replacement Lender shall acquire all of the
Commitments and outstanding Loans of the Replaced Lender and (ii) all
obligations of Borrower owing to the Replaced Lender (including, without
limitation, any such increased costs and excluding those specifically described
in clause (i) above in respect of which the assignment purchase price has been,
or is concurrently being paid) shall be paid in full to such Replaced Lender
concurrently with such replacement. 
Upon the execution of the respective assignment documentation, the
payment of amounts referred to in clauses (i) and (ii) above and, if so
requested by the Replacement Lender, delivery to the Replacement Lender of the
appropriate Note or Notes executed by Borrower, the Replacement Lender shall
become a Lender hereunder and the Replaced Lender shall cease to constitute a
Lender hereunder, except with respect to indemnification provisions under this
Agreement, which shall survive as to such Replaced Lender.  Notwithstanding anything to the contrary
contained above, no Lender that acts as a Facing Agent may be replaced
hereunder at any time which it has Letters of Credit outstanding hereunder unless
arrangements satisfactory to such Facing Agent (including the furnishing of a
standby letter of credit in form and substance, and issued by an issuer
satisfactory to such Facing Agent or the depositing of cash collateral into the
Collateral Account in amounts and pursuant to arrangements satisfactory to such
Facing Agent) have been made with respect to such outstanding Letters of
Credit.

ARTICLE IV

REDUCTION
OF COMMITMENTS; PAYMENTS AND PREPAYMENTS

4.1    Voluntary Reduction of Commitments.  Upon at least three Business Days' prior
written notice (or telephonic notice confirmed in writing) to Agent at the
Notice Office (which notice Agent shall promptly transmit to each Lender),
Borrower shall have the right, from time to time and without premium or penalty,
to terminate the unutilized portion of the Revolving Commitments or the Swing
Line Commitment, as the case may be, in part or in whole; provided that
(x) any such voluntary termination of the Revolving Commitments shall apply to
proportionately and permanently reduce the Revolving Commitment of each
Revolving Lender, (y) any partial voluntary reduction pursuant to this Section
4.1 shall be in the amount of at least $5,000,000 and integral multiples of
$5,000,000 in excess of that amount and (z) no such voluntary termination of
the Revolving Commitments shall be permitted if the effect thereof would be to
reduce the total of the Revolving Commitments below the aggregate principal
amount of outstanding Revolving Loans plus the aggregate LC Obligations and the
Swing Line Loan Commitment.  The parties
hereto acknowledge that the Borrower on the Restatement Date and prior to the
Term Loan Conversion permanently reduced the Revolving Commitments by the
amount of the Revolver Commitment Reduction . 
The parties hereto further acknowledge that on the Third Amended and
Restated Effective Date the Borrower further permanently reduced the Revolving
Commitments by $20,000,000.

4.2    Voluntary
Prepayments.  (a)  Borrower shall have the right to prepay any
or all of the Loans in whole or in part from time to time on the following
terms and conditions: (i) Borrower shall give Agent irrevocable written notice
at its Notice Office (or telephonic notice promptly confirmed in writing) of
its intent to prepay, the amount of such prepayment and the specific Borrowings
to which such prepayment is to be applied, which notice shall be given by
Borrower to Agent by 12:00 noon (New York City time) at least three Business
Days prior to the date of such prepayment and which notice shall (except
in the case of Swing Line Loans) promptly be transmitted by Agent to each of
the applicable Lenders; (ii) each partial prepayment of any Borrowing (other
than a Borrowing of Swing Line Loans) shall be in an aggregate principal amount
of at least $1,000,000 and each partial prepayment of a Swing Line Loan shall
be in an aggregate principal amount of at least $500,000; provided that no
partial prepayment of Eurodollar Loans made pursuant to a single Borrowing
shall reduce the aggregate principal amount of the outstanding Loans made
pursuant to such Borrowing to an amount less than the Minimum Borrowing Amount
applicable thereto; (iii) Eurodollar Loans may only be prepaid pursuant to this
Section 4.2 on the last day of an Interest Period applicable thereto or
on any other day subject to Section 3.5; (iv) each prepayment in respect
of any Borrowing shall be applied pro rata among the Loans comprising such
Borrowing provided, that such prepayment shall not be applied to any
Loans of a Defaulting Lender at any time when the aggregate amount of Loans of
any Non-Defaulting Lender exceeds such Non-Defaulting Lender's Commitment
Percentage of all Loans then outstanding.  Voluntary prepayments of Term Loans may
not be made utilizing proceeds of Revolving Loans or Swing Line Loans and shall
be applied first to the Scheduled Term A Repayments and the Scheduled Term B
Repayments due within the 6 month period following the date of such prepayment
in direct order of maturity and, thereafter, shall be applied in proportional
amounts equal to the Term A Percentage and Term B Percentage (in each case,
after giving effect to the prepayments made to the Scheduled Term A Repayments
and Scheduled Term B Repayments due within such 6 month period as specified
above), as the case may be, of such remaining prepayment, if any, and within
each Term Loan, shall be applied to reduce the remaining Scheduled Term A
Repayments and Scheduled Term B Repayments on a pro rata basis. The notice
provisions, the provisions with respect to the minimum amount of any
prepayment, and the provisions requiring prepayments in integral multiples
above such minimum amount of this Section 4.2 are for the benefit
of Agent and may be waived unilaterally by Agent.

  

(b)     In the event of certain refusals by a
Lender to consent to certain proposed amendments, changes, supplements,
waivers, discharges or terminations with respect to this Agreement which have
been approved by the Required Lenders as provided in Section 11.1(b),
Borrower shall have the right, upon five (5) Business Days' prior written
notice to Agent (which notice Agent shall promptly transmit to each of the
Lenders), to repay all Loans, together with accrued and unpaid interest,
fees  and all other amounts due and
owing to such Lender in accordance with said Section 11.1(b), so long as
(A) in the case of the repayment of Revolving Loans of any Revolving Lender
pursuant to this clause (b), the Revolving Commitment of such Revolving Lender
is terminated concurrently with such repayment pursuant to Section 4.1(b)
and (B) in the case of the repayment of Loans of any Lender, the consents
required by Section 11.1(b) in connection with the repayment pursuant to
this clause (b) shall have been obtained.

  

4.3    Mandatory Prepayments.

  

(a)     Prepayment
Upon Overadvance.  Borrower shall
prepay the outstanding principal amount of the Revolving Loans or the Swing
Line Loan on any date on which the aggregate outstanding principal amount of
such Loanstogether with the
aggregate LC Obligations (after giving effect to any other repayments or
prepayments on such day) exceeds the aggregate Revolving Commitments or the
Swing Line Loan Commitment, as the case may be, in the amount of such excess; provided,
however, if at any time the aggregate of all Revolving Loans then
outstanding plus the aggregate amount of all LC Obligations and Swing Line
Loans then outstanding exceeds the lesser of (i) the Borrowing
Base and (ii) the Total Revolving Commitment, the Borrower shall immediately,
and without notice or demand, prepay the outstanding principal amount of the
Revolving Loans and Swing Line Loans by an amount equal to the applicable
excess.  If, after giving effect to
the prepayment of all outstanding Revolving Loans, the aggregate LC Obligations
exceeds the lesser of (i) the Borrowing Base and (ii) the Total Revolving
Commitment then in effect, Borrower shall cash collateralize LC Obligations by
depositing, pursuant to a cash collateral agreement to be entered into in form
and substance reasonably satisfactory to Agent and Borrower, cash with Agent in
an amount equal to the difference between such LC Obligations and the lesser of
(i) the Borrowing Base and (ii) the Total Revolving Commitment then in
effect.  Agent shall establish in its
name for the benefit of the Revolving Lenders a cash collateral account (the "Collateral
Account") into which it shall deposit such cash to hold as collateral
security for the LC Obligations.

(b)     Payment
at Termination Date.  Borrower
hereby unconditionally promises to pay to each Lender on the Termination Date,
the unpaid principal amount of each Loan (including, without limitation, each
Swing Line Loan) made by such Lender. 
Borrower hereby further agrees to pay interest in immediately available
funds at the office of Agent on the unpaid principal amount of such Loans from
time to time from the date hereof until payment in full thereof at the rates
per annum, and on the dates, set forth in Section 2.6.

(c)     Mandatory
Prepayment Upon Asset Disposition. 
On the first Business Day after the date of receipt thereof by Borrower
and/or any of its Subsidiaries of Net Sale Proceeds from any Asset Disposition,
an amount equal to 100% of the Net Sale Proceeds from such Asset Disposition
shall be applied as a mandatory repayment of principal of the Loans as provided
in Section 4.4.

(d)     Mandatory
Prepayment Upon Incurrence of Indebtedness.  On the date of receipt by Borrower and/or any of their
Subsidiaries of Net Offering Proceeds from the incurrence of Indebtedness,
an amount equal to 100% of such Net Offering Proceeds shall be applied as a
mandatory prepayment of Loans in the manner set forth in Section 4.4.

(e)     Scheduled
Term Repayments.  

    

       (i)     Scheduled Term A Repayments.
Borrower agrees to pay Scheduled Term A Repayments on the Term A Loans until
the Term A Loans are paid in full in the amounts and at the times specified in
the definition of Scheduled Term A Repayments to the extent that prepayments
have not previously been applied to such Scheduled Term A Repayments (and such
Scheduled Term A Repayments have not otherwise been reduced) pursuant to the
terms hereof.

       (ii)     Scheduled Term B Repayments.
Borrower agrees to pay Scheduled Term B Repayments on the Term B Loans until
the Term B Loans are paid in full in the amounts and at the times specified in
the definition of Scheduled Term B Repayments to the extent that prepayments
have not previously been applied to such Scheduled Term B Repayments (and such
Scheduled Term B Repayments have not otherwise been reduced) pursuant to the
terms hereof.

    

(f)     Mandatory
Prepayment With Excess Cash Flow. 
On each Excess Cash Payment Date, an amount equal to 75% of Excess Cash
Flow, if positive, of Borrower and its Subsidiaries for the most recent Excess
Cash Flow Period ending prior to such Excess Cash Payment Date shall be applied
as a mandatory repayment of principal of the Loans as provided in Section
4.4.

(g)     Mandatory Prepayment Upon Recovery
Event.  Within fifteen (15) days
following each date on which Borrower or any of its Subsidiaries receives any
proceeds from any Recovery Event, an amount equal to 100% of the proceeds of
such Recovery Event (net of reasonable costs and taxes incurred in connection
with such Recovery Event) shall be applied as a mandatory repayment of
principal of the Loans as provided in Section 4.4, provided that
(1) so long as no Event of Default or Unmatured Event of Default then exists,
if the net proceeds from any Recovery Event are less than $500,000, then no
prepayment shall be required pursuant to this Section 4.3(g), and (2) so
long as no Event of Default or Unmatured Event of Default then exists, with
respect to any single or series of related Recovery Events the net proceeds
therefrom which are equal to or greater than $500,000 but less than $1,000,000,
such proceeds shall not be required to be so applied on such date to the extent
that Borrower has delivered a certificate to the Agent on or prior to such date
stating that such proceeds shall be used to replace or restore any properties
or assets in respect of which such proceeds were paid within 180 days following
the date of the receipt of such proceeds (which certificate shall set forth the
estimates of the proceeds to be so expended) provided, further,
that (i) if the amount of such proceeds from any single or series of related
Recovery Events exceeds $1,000,000, then the entire amount and not just the
portion in excess of $1,000,000 shall be applied as a mandatory repayment of
Loans as provided above in this Section 4.3(g) and (ii) if all or any
portion of such proceeds not required to be applied to the repayment of Loans
pursuant to the first proviso of this Section 4.3(g) are not so used (or
contractually committed to be used) within 180 days after the day of the
receipt of such proceeds, such remaining portion shall be applied on the last day
of such period as a mandatory repayment of principal of the Loans as provided
in this Section 4.3(g).

  

4.4    Application
of Prepayments. Except as expressly provided in this Agreement, all
prepayments of principal made by Borrower pursuant to Section 4.3(c),(d),
(f) and (g) shall be applied (i) first to the payment of the unpaid
principal amount of the Term Loans (with the Term A Percentage of such
repayment to be applied as a repayment of Term A Loans and the Term B
Percentage of such repayment to be applied as a repayment of Term B Loans),
after all Term A and Term B Loans have been paid in full, second to the payment
of the then outstanding balance of the Revolving Loans and third, after all
Revolving Loans have been paid in full, to the cash collateralization of LC
Obligations; (ii) within each of the foregoing Loans, first to the payment of
Base Rate Loans and second to the payment 
of Eurodollar Loans; and (iii) with respect to Eurodollar Loans, in such
order as Borrower shall request (and in the absence of such request, as Agent
shall determine so as to minimize breakage costs).  Each prepayment of the Term Loans pursuant to Sections 4.3(c)
and (d)  shall be applied to the
Term Loans in proportional amounts equal to the Term A Percentage and Term B Percentage,
as the case may be, of such remaining prepayment, if any and, within each Term
Loan, shall be applied first to the Scheduled Term A Repayments and the
Scheduled Term B Repayments due within the 6 month period following the date of
such prepayment in direct order of maturity and, thereafter to reduce the
remaining Scheduled Term A Repayments and Scheduled Term B Repayments on a pro
rata basis (based upon the then remaining principal amount of such Scheduled
Term A Repayments and Scheduled Term B Repayments, respectively).  Each prepayment of the Term Loans pursuant
to Sections 4.3(f) and (g) shall be applied to the Term Loans in
proportional amounts equal to the Term A Percentage and Term B Percentage, as
the case may be, of such remaining prepayment, if any and, within each Term
Loan, shall be applied to reduce the remaining Scheduled Term A Repayments and
Scheduled Term B Repayments on a pro rata basis (based upon the then remaining
principal amount of such Scheduled Term A Repayments and Scheduled Term B
Repayments, respectively).  If any
prepayment of Eurodollar Loans made pursuant to a single Borrowing shall reduce
the outstanding Loans made pursuant to such Borrowing to an amount less than
the Minimum Borrowing Amount, such Borrowing shall immediately be converted
into Base Rate Loans.  All prepayments
shall include payment of accrued interest on the principal amount so prepaid,
shall be applied to the payment of interest before application to principal and
shall include amounts payable, if any, under Section 3.5.

4.5    Method
and Place of Payment.

  

(a)     Except as otherwise specifically
provided herein, all payments under this Agreement shall be made to Agent, for
the ratable account of the Lenders entitled thereto, not later than 12:00 Noon
(New York City time) on the date when due and shall be made in immediately
available funds in lawful money of the United States of America and in each
case to the account specified therefor for Agent or if no account has been so
specified at the Payment Office, it being understood that with respect to
payments in Dollars, written telex or telecopy notice by Borrower to Agent to
make a payment from the funds in Borrower's account at the Payment Office shall
constitute the making of such payment to the extent of such funds held in such
account.  Agent will thereafter cause to
be distributed on the same day (if payment was actually received by Agent prior
to 12:00 Noon (New York City time) on such day) like funds relating to the
payment of principal or interest or fees ratably to the Lenders entitled to
receive any such payment in accordance with the terms of this Agreement.  If and to the extent that any such
distribution shall not be so made by Agent in full on the same day (if payment
was actually received by Agent prior to 12:00 Noon (New York City time) on such
day), Agent shall pay to each Lender its ratable amount thereof and each such
Lender shall be entitled to receive from Agent interest on such amount at the
overnight Federal Funds Rate for each day from the date such amount is paid to
Agent until the date Agent pays such amount to such Lender.

(b)     Any payments under this Agreement which
are made by Borrower later than 12:00 Noon (New York City time) shall, for the
purpose of calculation of interest, be deemed to have been made on the next
succeeding Business Day.  Whenever any
payment to be made hereunder shall be stated to be due on a day which is not a
Business Day, the due date thereof shall be extended to the next succeeding
Business Day and, with respect to payments of principal, interest shall be
payable during such extension at the applicable rate in effect immediately
prior to such extension, except that with respect to Eurodollar Loans, if such
next succeeding Business Day is not in the same month as the date on which such
payment would otherwise be due hereunder or under any Note, the due date with
respect thereto shall be the next preceding applicable Business Day.

  

4.6    Net Payments.

  

(a)     All
payments made by Borrower hereunder or under any Loan Document will be made
without setoff, counterclaim or other defense. 
Except as provided in Section 4.7(d), all payments hereunder and
under any of the Loan Documents (including, without limitation, payments on
account of principal and interest and fees) shall be made by Borrower free and
clear of and without deduction or withholding for or on account of any present
or future tax, duty, levy, impost, assessment or other charge of whatever
nature now or hereafter imposed by any Governmental Authority, but excluding therefrom
(i) a tax imposed on or measured by the net income, net profits, net receipts
or capital (including a branch profits tax or a franchise tax based on net
income, net profits, net receipts or capital) of the Lender by the jurisdiction
(or political subdivision or taxing authority thereof) in which the Lender is
incorporated or organized, or in which it is a citizen, resident or domiciliary
or the jurisdiction (or political subdivision or taxing authority thereof) in
which any lending office that participated in the making of a loan hereunder is
located, (ii) in the case of any Lender organized under the laws of any
jurisdiction other than the United States or any state thereof (including the
District of Columbia), any taxes imposed by the United States by means of
withholding at the source unless, and to the extent that, such withholding
results from a change in applicable law, treaty or regulations or the
interpretation or administration thereof (including, without limitation, any
guideline or policy not having the force of law) by any authority charged with
the administration thereof subsequent to the date such Lender becomes a Lender
with respect to the Loan or portion thereof affected by such change and (iii)
any tax imposed on or measured by the net income, net profits, net receipts or
capital (including a branch profits tax, or a franchise tax based on net
income, net profits, net receipts or capital) of a Lender or an office or
branch thereof by the United States of America or any political subdivision or
taxing authority thereof or therein (such tax or taxes, other than a tax or
taxes excluded under (i), (ii), or (iii), being herein referred to as "Tax"
or "Taxes" and tax or taxes excluded under (i), (ii) or (iii) shall be
referred to as "Excluded Taxes"). 
If Borrower is required by law to make any deduction or withholding of
any Taxes from any payment due hereunder or under any of the Loan Documents,
then the amount payable will be increased to such amount which, after deduction
from such increased amount of all such Taxes required to be withheld or
deducted therefrom, will not be less than the amount due and payable hereunder
had no such deduction or withholding been required.  A certificate as to any additional amounts payable to a Lender
under this Section 4.6 submitted to Borrower by such Lender shall
show in reasonable detail the amount payable and the calculations used to
determine in good faith such amount and shall, absent manifest error, be final,
conclusive and binding upon all parties hereto.

(b)     If
Borrower makes any payment hereunder or under any of the Loan Documents in
respect of which it is required by law to make any deduction or withholding of
any Taxes, it shall pay the full amount to be deducted or withheld to the
relevant taxation or other authority within the time allowed for such payment
under applicable law and shall deliver to all affected Lenders within 30 days
after it has made such payment to the applicable authority any receipt issued
by such authority to the Borrower evidencing the payment to such authority of
all amounts so required to be deducted or withheld from such payment.

(c)     Without
prejudice to the other provisions of Section 4.6, if any Lender, or
Agent on its behalf, is required by law to make any payment on account of Taxes
on or in relation to any amount received or receivable hereunder or under any
of the Loan Documents by such Lender, or Agent on its behalf, or any liability
for Tax in respect of any such payment is imposed, levied or assessed against
any Lender or Agent on its behalf, Borrower will promptly, following receipt of
the certificate described in the immediately following sentence, indemnify such
person against such Tax payment or liability, together with any interest,
penalties and expenses (including reasonable counsel fees and expenses) payable
or incurred in connection therewith, including any tax of any Lender arising by
virtue of payments under this Section 4.6(c), computed in a manner
consistent with this Section 4.6(c). 
A certificate prepared in good faith as to the amount of such payment
(showing in reasonable detail the amount payable and the calculations used to
determine such amount) by such Lender, or Agent on its behalf, absent manifest
error, shall be final, conclusive and binding upon all parties hereto for all
purposes.

(d)     Each
Lender that is not a United States person (as such term is defined in Section
7701(a)(30) of the Code) agrees to deliver to Borrower and Agent on or prior to
the Third Amended and Restated Effective Date, or in the case of a Lender that
is an Assignee of an interest under this Agreement pursuant to Section 3.7
or 11.9 (unless the respective Lender was already a Lender hereunder
immediately prior to such assignment), on the date of such assignment to such
Lender, (i) two accurate and complete original signed copies of IRS Form
W-8BEN, W-8ECI, or W-8IMY (or successor or other applicable forms prescribed by
the IRS) certifying to such Lender's entitlement to a complete exemption from
or reduced rate of United States withholding tax on interest payments to be
made under this Agreement and under any Note, or (ii) if the Lender is not a
"bank" within the meaning of Section 881(c)(3)(A) of the Code and cannot
deliver the applicable form pursuant to clause (i) above, (x) a certificate
substantially in the form of Exhibit 4.6(d) (any such certificate, a "Section
4.6(d)(ii) Certificate") and (y) two accurate and complete original signed
copies of IRS Form W-8BEN (or successor form), certifying to such Lender's
entitlement to a complete exemption from United States withholding tax on
payments of interest to be made under this Agreement and under any Note; provided,
however, that no Lender shall be required to deliver an IRS Form W-8BEN,
W-8ECI, W-8IMY, or Section 4.6(d)(ii) Certificate under this Section
4.6(d) to the extent that the delivery of such form is not authorized by law; provided
further, however, that in the event that a Lender provides the
Borrower or the Agent with an IRS Form W-8IMY (or substitute form) indicating
that it is a "flow through" entity, as defined in Treasury Regulations
promulgated under Section 1441 of the Code, or otherwise, not a beneficial
owner of interest payments under this Agreement and under any Note, such Lender
agrees, on or prior to the Third Amended and Restated Effective Date, or the
date of assignment to such Lender, as applicable, to take any actions
necessary, and to deliver to Borrower and Agent all forms necessary, to
establish such Lender's entitlement to a complete exemption from, or a
reduction in, United States withholding tax on payments of interest to be made
under this Agreement and under any Note, including causing its partners,
members, beneficiaries, beneficial owners, and their beneficial owners, if any,
to take any actions and deliver any forms necessary to establish such
exemption.  Notwithstanding the
foregoing, (i) a fiscally transparent entity may provide an IRS Form W-8BEN to
claim a treaty exemption or rate reduction to the extent that such entity
is receiving interest and is not treated as fiscally transparent by its own
jurisdiction,  provided the satisfaction
of such conditions entitles the Lender to an exemption or reduction from
withholding at the time such Lender becomes a party to this Agreement and (ii)
a withholding foreign partnership, withholding foreign trust, and qualified
intermediary shall only provide such information as is required by Treasury
Regulations promulgated under Code Section 1441.  For purposes of this Agreement, the term "Forms" shall include
any attachments for to IRS Forms W-8 IMY required to be filed by the
Lender.  In addition, each Lender agrees
that from time to time after the Initial Borrowing Date, when a lapse in time
or change in circumstances renders the previous certification obsolete or
inaccurate in any material respect, such Lender will deliver to Borrower and
Agent two new accurate and complete original signed copies of an IRS Form
W-8BEN, W-8ECI, or W-8IMY and a Section 4.6(d)(ii) Certificate, as the
case may be, and such other forms as may be required in order to confirm or
establish the entitlement of such Lender (or its partners, members,
beneficiaries, or beneficial owners) to a continued exemption from or reduction
in United States withholding Tax on interest payments under this Agreement and
any Note, or it shall immediately notify Borrower and Agent of its inability to
deliver any such form or certificate; provided, however, that no
Lender shall be required to deliver an IRS Form W8-BEN, W-8ECI, or W-8IMY under
this Section 4.6(d) to the extent that the delivery of such form is not
authorized by law; provided, further, however, that any
Lender which does not deliver the applicable form pursuant to Section 4.6(d)
shall be entitled to additional payment pursuant to Section 4.6(a) or
indemnification under Section 4.6(c) only if and to the extent (i) such
failure results solely from a change in law or (ii) the Tax to which such
additional payment or indemnification relates would have been imposed
regardless of whether such Lender provided such forms.  Notwithstanding anything to the contrary
contained in Section 4.6, any Lender that has not provided to Borrower
the IRS Forms required to be provided to Borrower pursuant to this Section
4.6(d) shall not be entitled to any payment of additional amounts pursuant
to Section 4.6(a) or indemnification under Section 4.6(c) with
respect to any deduction or withholding which would not have been required if
such Lender had provided such forms.

(e)     Each
Lender that is incorporated or organized under the laws of the United States of
America or a state thereof shall provide two properly completed and duly
executed copies of IRS Form W-9, or any successor or other applicable
form.  Each Lender shall deliver to Borrower and Agent
(provided that such Lender remains lawfully able to do so), two further duly
executed forms and statements, properly completed in all material respects, at
or before 4he time any such form or statement expires or becomes obsolete, or
otherwise as reasonably requested by Borrower. 
Each Lender shall promptly notify Borrower at any time it determines
that it is no longer in a position to provide any previously delivered
certificate to Borrower (or any other form or certification adopted by U.S.
taxing authorities for such purpose).

(f)     Each
Lender agrees that, as promptly as practicable after it becomes aware of the
occurrence of any event or the existence of any condition that would cause
Borrower to make a payment in respect of any Taxes to such Lender pursuant to Section
4.6(a) or a payment in indemnification for any Taxes pursuant to Section
4.6(c), it will use reasonable efforts to make,
fund or maintain the Loan (or portion thereof) of such Lender with respect to
which the aforementioned payment is or would be made through another lending
office of such Lender or take any other action reasonably requested by Borrower
if as a result thereof the additional amounts which would otherwise be required
to be paid by such Borrower in respect of such Loans (or portions thereof) or
participation in Letters of Creditpursuant
to Section 4.6(a) or Section 4.6(c) would be materially reduced,
and if, as determined by such Lender, in its reasonable discretion, the making,
funding or maintaining of such Loans or participation in Letters of Credit (or
portions thereof) through such other lending office or taking of such other
action would not otherwise materially adversely affect such Loans or such
Lender.  Borrower agrees to pay all
reasonable expenses incurred by any Lender in utilizing another lending office
of such Lender or taking of such other action pursuant to this Section
4.6(f).

  

ARTICLE V

REPRESENTATIONS AND WARRANTIES

To induce Agent and each Lender to enter
into this Agreement and the Third Amended and Restated Credit Agreement and to
make the Loans and issue (or participate in) the Letters of Credit, Borrower
hereby represents and warrants to Agent and each Lender, and hereby agrees, as
follows:

5.1    Corporate
Existence; Compliance with Law. 
Each of Borrower and its Subsidiaries (a) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization, (b) has the corporate power and authority, and the legal right,
to own and operate its property, to lease the property it operates as lessee
and to conduct the business in which it is currently engaged, (c) is duly
qualified and in good standing as a foreign corporation, and is duly authorized
to do business, in each jurisdiction where its ownership or leasing of property
or the character of its operations makes such qualification necessary, except
where the failure to so qualify would not reasonably be expected to have a
Material Adverse Effect and (d) is in compliance with all Requirements of Law
except to the extent that all failures to comply therewith would not reasonably
be expected to have a Material Adverse Effect.

5.2    Corporate
Power; Authorization; No Violation. 
The execution, delivery and performance by each Credit Party of this
Agreement and the other Loan Documents to which it is a party (i) are
within such Credit Party's corporate power, (ii) have been duly authorized by
all necessary corporate, shareholder and other action on the part of each
Person whose authorization is required, (iii) do not violate any Requirement of
Law or any material Contractual Obligation applicable to such Credit Party,
(iv) will not result in or require the creation or imposition of any Lien of
any nature upon or with respect to any of the properties now owned or hereafter
acquired by such Person (other than any permitted by the Loan Documents) and
(v) will not require any authorization or approval or other action by, or
notice to or filing or registration with, any Governmental Authority (other
than those which have been obtained and are in force and effect).

5.3    Binding
Effect.  This Agreement has been,
and the other Loan Documents to which any Credit Party is a party will be when
executed and delivered, duly executed and delivered on behalf of Borrower and
the other Loan Parties thereto.  This
Agreement constitutes, and the other Loan Documents to which any Credit Party
is a party when executed and delivered will constitute, a legal, valid and
binding obligation of the Loan Parties that are party thereto, enforceable
against such Loan Parties in accordance with their respective terms, except as
enforcement thereof may be subject to (i) the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors' rights generally and (ii) general principles of equity (regardless
of whether such enforcement is sought in a proceeding in equity or at
law).  The security interests created in
favor of Agent, as Pledgee for the benefit of the Lenders under the Pledge
Agreement constitute first perfected security interests in the Pledged Stock,
subject to no security interests of any other Person.  No filings or recordings are required in order to perfect the
security interests created in the Pledged Stock under the Pledge Agreement.

5.4    Purpose
of Loans.  The proceeds of the Loans
shall be used by Borrower to (i) repay existing indebtedness under the Existing
Credit Agreements and (ii) for general corporate and working capital purposes
(including without limitation the Asset Acquisition and other Acquisitions).  No proceeds of any of the Loans will be used
for "buying," "purchasing," or "carrying," any "margin stock" within the
respective meanings of each of the quoted terms under Regulation U of the Board
as now and from time to time hereafter in effect or for any purpose which would
cause any of the loans or extensions of credit under this Agreement to be
considered a "purpose credit" within the meaning of Regulation T, U or X of the
Board.  Notwithstanding anything else
herein to the contrary, no proceeds of any Revolving Loans will be used to
effect (either directly or indirectly) a voluntary or mandatory prepayment of
Term Loans hereunder.

5.5    Subsidiaries.  Schedule 5.5 annexed hereto and made
a part hereof is a complete and correct list of all Subsidiaries of Borrower as
of the Third Amended and Restated Effective Date and separately identifies all
Material Subsidiaries of Borrower as of the Third Amended and Restated
Effective Date.  All of such
Subsidiaries are Wholly‐Owned Subsidiaries of Borrower except as otherwise
indicated on such Schedule 5.5. 
There does not exist any encumbrance or restriction on the ability of
(i) any Subsidiary of Borrower to pay dividends or make any other distributions
on its capital stock or any other interest or participation in its profits
owned by Borrower or any Subsidiary of Borrower, or to pay any Indebtedness
owed to Borrower or a Subsidiary of Borrower, (ii) any Subsidiary of Borrower
to make loans or advances to Borrower or any of Borrower's Subsidiaries or
(iii) Borrower or any of its Subsidiaries to transfer any of its properties or
assets to Borrower or any of its Subsidiaries, except for such encumbrances or
restrictions existing under or by reason of (x) applicable law, (y) this
Agreement or the other Loan Documents or (z) customary provisions restricting
subletting or assignment of any lease or other contract governing a leasehold
interest or other contract rights of Borrower or a Subsidiary of Borrower.

5.6    Indebtedness.  Schedule 5.6 annexed hereto and made
a part hereof is a complete and correct list of all Indebtedness of Borrower
and its Subsidiaries which, in any individual instance exceeds $250,000 in
principal amount and which is outstanding as of the Third Amended and Restated
Effective Date (other than Intercompany Indebtedness).

5.7    
 
Financial Statements; Financial Condition; Undisclosed
Liabilities; Projections, etc.

  

(a)     Financial
Statements.  The balance sheet of
Borrower at December 31, 1998, December 31, 1999, December 31, 2000 and
December 31, 2001, and the related statements of operations, cash flows and
shareholders' equity of Borrower for the Fiscal Year or other period ended on
such dates, as the case may be, copies of which have been furnished to the
Lenders prior to the date hereof which have been examined by Ernst & Young L.L.P., independent certified public accountants, were prepared in accordance
with GAAP in effect on the date such statements were prepared and fairly
present the consolidated financial condition and results of operations of the
Borrower and its Subsidiaries at such dates and for the periods then
ended.  Since December 31, 2001,
there has been no Material Adverse Effect.

(b)     Solvency.  On and as of the Third Amended and Restated
Effective Date, after giving effect to the Third Amended and Restated Credit
Agreement and to all Indebtedness (including the Loans) being incurred, and to
be incurred (and the use or proceeds thereof), and Liens created, and to be
created, by Borrower in connection with the transactions contemplated hereby,
(i) the sum of the assets, at a fair valuation, of Borrower will exceed its
Debts; (ii) Borrower has not incurred nor intends to, nor believes that it
will, incur Debts beyond its ability to pay such Debts as such Debts mature;
and (iii) Borrower will have sufficient capital with which to conduct its
business.

(c)     No
Undisclosed Liabilities.  Except as
fully reflected in the financial statements and the notes thereto referred to
in Section 5.7(a) or on Schedule 5.7(c), there are (after giving
effect to the Third Amended and Restated Credit Agreement and the other
transactions contemplated hereby) no liabilities or obligations with respect to
Borrower of any nature whatsoever (whether absolute, accrued, contingent or
otherwise and whether or not due) which, either individually or in aggregate,
would be material to Borrower.  As of
the Third Amended and Restated Effective Date (and after giving effect to the
Third Amended and Restated Credit Agreement and the other transaction contemplated
hereby), Borrower does not know of any basis for the assertion against Borrower
of any liability or obligation of any nature whatsoever that is not reflected
in such financial statements or the notes related thereto delivered pursuant to
Section 5.7(a) or on Schedule 5.6 which, either individually
or in the aggregate, could reasonably be expected to be material to Borrower.

(d)     Projections.  On and as of the Third Amended and Restated
Effective Date, the financial projections, attached hereto as Schedule
5.7(d) (the "Projections") have been prepared on a basis consistent
with the financial statements referred to in Section 5.7(a) and are
based on good faith estimates and assumptions made by the management of
Borrower, and there are no statements or conclusions in any of the Projections
which are based upon or include information known to Borrower to be misleading
or which fail to take into account material information known to Borrower
regarding the matters reported therein. 
On the Third Amended and Restated Effective Date, Borrower believed that
the Projections were reasonable and attainable, it being understood that
uncertainty is inherent in any forecasts or projections and that no assurance
can be given that the results set forth in the Projections will actually be
obtained.

  

5.8    No
Material Litigation.  There are no
actions, suits, proceedings or investigations pending or, to the knowledge of
Borrower, threatened against Borrower or any of its Subsidiaries or any of its
or their respective properties or assets before any arbitrator or Governmental
Authority (a) with respect to this Agreement or any other Loan Document or any
of the actions contemplated hereby or thereby, or (b) which would reasonably be
expected to have a Material Adverse Effect.

5.9    Performance
of Agreements.  Neither Borrower nor
any of its Subsidiaries is in default in the performance, observance or
fulfillment of any of the obligations, covenants or conditions contained in any
Contractual Obligation of Borrower or any of its Subsidiaries and no event or
condition has occurred or become known or exists which with notice or the lapse
of time or both would constitute such a default except where such default or
defaults, if any, would not reasonably be expected to have a Material Adverse
Effect.

5.10   Taxes.  Borrower and each of its Subsidiaries has
filed or caused to be filed all material tax returns and reports which are
required to be filed, and has paid all taxes shown to be due and payable on
said returns or on any assessments made against it or any of its properties or
assets and all other taxes, fees and other charges imposed on its or any of
their respective properties by any Governmental Authority other than those the
amount or validity of which are currently being contested in good faith by
appropriate proceedings diligently pursued and with respect to which reserves
in conformity with GAAP have been provided on the books of Borrower and/or its
Subsidiaries, as applicable) and no material tax Lien has been filed or
received.  There is no proposed tax
assessment against Borrower or any of its Subsidiaries which would reasonably
be expected to have a Material Adverse Effect.

5.11   Governmental
Regulation.  (i)  Neither Borrower nor any of its Subsidiaries
is an "investment company" or a company "controlled" by a company required to
be registered as an "investment company" within the meaning of the Investment
Company Act of 1940, as amended, and (ii) neither Borrower nor any of its
Subsidiaries is engaged directly or indirectly, principally, or as one of its
important activities, in the business of extending, or arranging for the
extension of, credit for the purposes of purchasing or carrying any margin
stock, within the meaning of Regulation T, U or X of the Board.

5.12   Ownership
of Property; Liens.  Each of
Borrower and its Subsidiaries has good and indefeasible title in fee simple to,
or a valid leasehold interest in, all its material real property, and good
title to, or a valid leasehold interest in, all its other material property,
and none of such property is subject to any Lien except for Permitted Liens.

5.13   Intellectual
Property.  Borrower and each of its
Subsidiaries owns, or is licensed to use, all trademarks, tradenames,
copyrights, technology, know-how, patents and processes necessary for the
conduct of its business as currently conducted, except for those the failure to
own or be licensed to use, which would not reasonably be expected to have a
Material Adverse Effect (the "Intellectual Property").  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, nor does
Borrower know of any valid basis for any such claim except for such claims and
infringements that, in the aggregate, would not reasonably be expected to have
a Material Adverse Effect.  To
Borrower's or any of its Subsidiaries' knowledge, the use of such Intellectual
Property by Borrower and its Subsidiaries does not infringe on the rights of
any Person, in each case except for such claims and infringements that, in the
aggregate, would not reasonably be expected to have a Material Adverse Effect.

5.14   Disclosure.  This Agreement and any other document,
certificate or statement furnished to Agent or any Lender by or on behalf of
Borrower or any of its Subsidiaries, taken as a whole, do not contain any
untrue statement of a material fact and do not omit to state a material fact
necessary in order to make the statements contained herein and therein not
misleading when made.  There is no fact
known to Borrower or any of its Subsidiaries which now has or in the future
would reasonably be expected to have (so far as Borrower or any of its
Subsidiaries can now reasonably foresee) a Material Adverse Effect which has
not been disclosed in this Agreement, or in the other documents and
certificates furnished to Agent and each Lender specifically for use in
connection with the transactions contemplated hereby.

5.15   ERISA.  Borrower and each of its ERISA Affiliates
are in compliance in all material respects with applicable provisions of ERISA
and the Code and the regulations and published interpretations thereunder with
respect to all Plans and, to the best of Borrower's knowledge, all
Multiemployer Plans, except where noncompliance would not reasonably be
expected to have a Material Adverse Effect. 
No Termination Event has occurred or is reasonably expected to occur
with respect to any Plan.  The sum of the
"amounts of unfunded benefit commitments" (as defined in Section 4001(a)(18) of
ERISA) under all Plans (excluding each Plan with an amount of unfunded benefit
commitments of zero or less) is not more than $7,500,000.  The aggregate Withdrawal Liability under all
Multiemployer Plans is not more than $7,500,000.

5.16   Labor
Relations.  Except to the extent
that such practices, circumstances, events or questions would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect,
(a) neither Borrower nor any of its Subsidiaries is engaged in any unfair labor
practice and (b) no significant strike, labor dispute, slowdown or stoppage is
pending against Borrower or any of its Subsidiaries or, to the best knowledge
of Borrower, threatened against Borrower or any of its Subsidiaries.

5.17   Insurance.  Except as otherwise permitted by Section
7.8, the properties of Borrower and its Subsidiaries are insured with
financially sound and reputable insurance companies, in such amounts, with such
deductibles and covering such risks as are customarily carried by Persons
engaged in the same or similar businesses.

5.18   Public
Utility Holding Company Act. 
Neither Borrower nor any of its Subsidiaries is a "holding company," or
a "subsidiary company" of a "holding company," or an "affiliate" of a "holding
company" or of a "subsidiary company" of a "holding company," within the
meaning of the Public Utility Holding Company Act of 1935, as amended.

5.19   Security Documents.  

  

(a)     Security Agreement Collateral.  The provisions of each Security
Agreement  are effective to create in
favor of Collateral Agent for the benefit of the Secured Creditors a legal,
valid and enforceable security interest in all right, title and interest of the
relevant Credit Party in the Collateral, and each Security Agreement, together
with the timely filings of Form UCC-1 creates a fully perfected first lien on,
and security interest in, all right, title and interest of the relevant Credit
Party in all of the Collateral described therein, subject to no other Liens
other than Permitted Liens.  Each Credit
Party has good and marketable title to, or rights in, all Collateral, free and
clear of all Liens except Permitted Liens.

(b)     Real Estate Collateral.  (i) The Ramsey Mortgage executed on the
Restatement Date creates, as security for the obligations purported to be
secured thereby, a valid and enforceable perfected security interest in and
Lien on the Mortgaged Property thereunder for the benefit of the Secured
Creditors, superior to and prior to the rights of all third Persons (except
that the security interest created in the Mortgaged Property thereunder may be
subject to the Permitted Liens related thereto and any Liens referred to in the
Ramsey Mortgage Policy) and subject to no other Liens (other than Permitted
Real Property Encumbrances and any Liens referred to in the Ramsey Mortgage
Policy).

(ii) The Cortland
Mortgage creates, as security for the obligations purported to be secured
thereby, a valid and enforceable perfected security interest in and Lien on the
Mortgaged Property thereunder for the benefit of the Secured Creditors,
superior to and prior to the rights of all third Persons (except that the
security interest created in the Mortgaged Property thereunder may be subject
to the Permitted Liens related thereto and any Liens referred to in the Cortland
Mortgage Policy) and subject to no other Liens (other than Permitted Real
Property Encumbrances and any Liens referred to in the Cortland Mortgage
Policy).  

  

5.20   Matters
Pertaining to Second Amendment and Restatement Agreement.  

  

(a)     Representations and Warranties.  Each of the representations and warranties
given by Borrower in the Agreement are true and correct in all material
respects as of the Restatement Date, except to the extent such representations
and warranties are expressly made as of a specified date in which event such
representations and warranties shall be true and correct as of such specified
date.

(b)     Corporate Power; Authorization; No
Violation.  The execution, delivery
and performance by each Credit Party of the Second Amendment and Restatement
Agreement and the other Loan Documents to which it is a party (i) are
within such Credit Party's corporate power, (ii) have been duly authorized by
all necessary corporate, shareholder and other action on the part of each
Person whose authorization is required, (iii) do not violate any Requirement of
Law or any material Contractual Obligation applicable to such Credit Party,
(iv) will not result in or require the creation or imposition of any Lien of
any nature upon or with respect to any of the properties now owned or hereafter
acquired by such Person (other than any permitted by the Loan Documents) and
(v) will not require any authorization or approval or other action by, or
notice to or filing or registration with, any Governmental Authority (other
than those which have been obtained and are in force and effect).

  

5.21   Matters Pertaining to Third Amended and
Restated Credit Agreement.  

  

(a)     Representations
and Warranties.  Each of the
representations and warranties given by Borrower in the Agreement are true and
correct in all material respects as of the Third Amended and Restated Effective
Date, except to the extent such representations and warranties are expressly
made as of a specified date in which event such representations and warranties
shall be true and correct in all material respects as of such specified date.

(b)
    Corporate Power; Authorization;
No Violation.  The execution,
delivery and performance by each Credit Party of the Third Amended and Restated
Credit Agreement and the other Loan Documents to which it is a party
(i) are within such Credit Party's corporate power, (ii) have been duly
authorized by all necessary corporate, shareholder and other action on the part
of each Person whose authorization is required, (iii) do not violate any
Requirement of Law or any material Contractual Obligation applicable to such
Credit Party, (iv) will not result in or require the creation or imposition of
any Lien of any nature upon or with respect to any of the properties now owned
or hereafter acquired by such Person (other than any permitted by the Loan
Documents) and (v) will not require any authorization or approval or other
action by, or notice to or filing or registration with, any Governmental
Authority (other than those which have been obtained and are in force and
effect).

  

5.22   Deposit Accounts.  Schedule 5.22 lists all banks and
other financial institutions at which any Credit Party maintains deposits
and/or other accounts as of the Third Amended and Restated Effective Date and
such Schedule correctly identifies the name, city and state of each depository,
the name in which the account is held and the complete account number.

 

ARTICLE VI

CONDITIONS OF CREDIT

6.1    Conditions Precedent to Effectiveness.  The parties acknowledge and agree that the
Second Amendment and Restatement Agreement became effective upon the
satisfaction or waiver of each of the following conditions:

      

(a)     Loan Documents. 
Agent shall have received each of:

        

(i)                 
the
Second Amendment and Restatement Agreement, executed and delivered by a duly
authorized officer of Borrower, the Agent and the Required Lenders; 

(ii)               
for
the account of each Lender requesting the same, Notes conforming to the
requirements hereof and executed by a duly authorized officer of Borrower;

(iii)              
a
Security Agreement executed and delivered by a duly authorized officer of
Borrower and each Subsidiary Guarantor substantially in the form of Exhibit
6.1(a)(iii) hereto (as amended, restated, supplemented or otherwise
modified from time to time, in the case of the Borrower the "Original
Borrower Security Agreement" and in the case of the Subsidiary
Guarantors the "Original Subsidiary Guarantor Security Agreement"
collectively with the Borrower Security Agreement, the "Original Security
Agreements") together with:

          

        

(a)     proper financing statements (Form UCC-1
or such other financial statements or similar notices as shall be required by
local law) duly prepared for filing under the UCC or other appropriate filing
offices of each jurisdiction as may be necessary or, in the opinion of Agent,
desirable to perfect the security interests purported to be created by the
Original Security Agreements;

 (b)    evidence
of the completion of all other recordings and filings of, or with respect to,
the Security Agreements and all other actions as may be necessary or, in the
opinion of Agent, desirable to perfect the security interests intended to be
created by the Original Security Agreements;

 (c)    evidence
that all other actions necessary, or in the reasonable opinion of Agent,
desirable to perfect the security interests purported to be granted by the
Original Security Agreements have been taken;

        

(iv)    the Amended and Restated Pledge Agreement
executed and delivered by a duly authorized officer of Borrower substantially
in the form of Exhibit 6.1(a)(iv) hereto (as amended, restated,
supplemented or otherwise modified from time to time, the "Pledge Agreement")
and all the Pledged Securities referred to therein then owned, if any, by such
Credit Party, (x) endorsed in blank in the case of promissory notes
constituting Pledged Securities and (y) together with executed and undated
stock powers, in the case of capital stock constituting Pledged Securities, or
other transfer assignment instruments in form and substance satisfactory to
Agent, in the case of membership interests constituting Pledged Securities and
(z) the Pledge Agreement and such other documents shall be in full force and
effect, and each Credit Party which is a limited liability company shall have
certificated all existing membership interests and delivered to Agent, as
pledgee, such pledged certificates as Pledged Securities;

(v)     the Amended and Restated Guaranty
executed and delivered by a duly authorized officer of each Subsidiary
Guarantor substantially in the form of Exhibit 6.1(a)(v) (as amended,
restated, supplemented or otherwise modified from time to time, the "Subsidiary
Guaranty"); and

(vi)    the Ramsey Mortgage in the form of Exhibit
6.1(a)(vi)(i), executed by Borrower's Subsidiary, Vision Ease Lens, Inc.,
with respect to such Subsidiary's real property in the city of Ramsey,
Minnesota together with a "marked up" Ramsey Mortgage Title Insurance
Commitment in the form attached hereto as Exhibit 6.1(a)(vi)(ii).

    

(b)     Corporate Proceedings.  Agent shall have received (i) a copy of the
resolutions, in form and substance satisfactory to Agent, of the board of
directors of Borrower authorizing (x) the execution, delivery and performance
of the Second Amendment and Restatement Agreement, the Notes and the other Loan
Documents to which it is a party and (y) the borrowings and other extensions of
credit contemplated hereunder, certified by the Secretary or an Assistant
Secretary of Borrower as of the Restatement Date, which certificate shall state
that the resolutions thereby certified have not been amended, revoked, or
rescinded and shall be in form and substance satisfactory to Agent, (ii) a copy
of the resolutions, in form and substance satisfactory to Agent, of the board
of directors of each Subsidiary Guarantor authorizing (x) the execution,
delivery and performance of each Loan Document to which it is a party,
certified by the Secretary or an Assistant Secretary of each such Subsidiary
Guarantor as of the Restatement Date, which certificate shall state that the
resolutions thereby certified have not been amended, revoked, or rescinded and
shall be in form and substance satisfactory to Agent and (iii) copies of all
documents and papers, including records of corporate proceedings, governmental
approvals, good standing certificates, and bring down telegrams, if any, which
Agent reasonably may have requested in connection therewith, such documents and
papers where appropriate to be certified by proper corporate or governmental
authorities.

(c)     Corporate Documents.  Agent shall have received, with a
counterpart for each Lender, true and complete copies of the certificate of
incorporation and by-laws of Borrower and each Subsidiary, certified as of the
Restatement Date as complete and correct copies thereof by the Secretary or an
Assistant Secretary of such Person or a certificate of the Secretary or an
Assistance Secretary of such Person certifying that there has been no change to
such Certificate of Incorporation and By-laws since the Restatement Date.

(d)     Incumbency Certificate.  Agent shall have received a certificate of
the Secretary or an Assistant Secretary of each Credit Party, dated the
Restatement Date, as to the incumbency and signature of the officers of such
Person executing the Loan Documents to which it is a party and any certificate
or other documents to be delivered by it pursuant thereto.

(e)     Fees and Amendment Fee.  Agent and the Documentation Agent shall have
received, for their own accounts and/or the accounts of Lenders, (i) all
accrued fees and expenses due and owing hereunder or in connection herewith to
Lenders and Agents and (ii) an amendment fee in the amount of .125% of the sum
of the Commitments and Converted Term Loan Amounts of each Lender (after giving
effect to the Second Amendment and Restatement Agreement) that executes the
Second Amendment and Restatement Agreement on or before 5:00 p.m. central time,
October 12, 2001.

(f)     Legal
Opinions.  Agent shall have
received, with a counterpart for each Lender, the executed legal opinion of
each of Faegre & Benson, counsel to the Credit Parties, substantially in
the form of Exhibit 6.1(f)(i) and of the general counsel of Borrower
substantially in the form of Exhibit 6.1(f)(ii).  Such legal opinions shall cover such other
matters incident to the transactions contemplated by the Second Amendment and
Restatement Agreement as Agent may reasonably require and such counsel
delivering the foregoing legal opinion is expressly instructed to deliver its
opinion for the benefit of each of Agent and the Lenders.

(g)     Approvals.  All necessary governmental (domestic and
foreign) and third party approvals in connection with the Transaction and
otherwise referred to herein or therein shall have been obtained and remain in
effect, and all applicable waiting periods shall have expired without any
action being taken by any competent authority which restrains, prevents or
imposes materially adverse conditions upon the consummation of all or any part
of the Transaction or the other transactions contemplated by the Loan Documents
and otherwise referred to herein or therein. 
Additionally, there shall not exist any judgment, order, injunction or
other restraint issued or filed or a hearing seeking injunctive relief or other
restraint pending or notified prohibiting or imposing materially adverse conditions
upon all or any part of the Transaction, the transactions contemplated by the
Documents or the making of the Loans or the issuance of the Letters of Credit.

(h)     Litigation.  No litigation by any entity (private or
governmental) shall be pending or, to the best knowledge of Borrower,
threatened with respect to the Second Amendment and Restatement Agreement, any
of the Loan Documents or any documentation executed in connection herewith or
the transactions contemplated hereby (including, without limitation, the
Transaction), or the obligations being refinanced in connection with the
consummation of the Transaction or which Agents or the Required Lenders shall
determine could reasonably be expected to have a Material Adverse Effect.

(i)     Officer's Certificate.  Agents shall have received a certificate
executed by a responsible officer on behalf of Borrower, dated the Restatement
Date and in the form of Exhibit 6.1(i) hereto, stating that the
representations and warranties set forth in Article V hereof are true
and correct as of the date of the certificate, that no Event of Default or
Unmatured Event of Default has occurred and is continuing and that the
conditions of Section 6.1 hereof have been fully satisfied (except
that no opinion need be expressed as to the Agent's or Required Lenders'
satisfaction with any document, instrument or other matter).

(j)     Adverse Change.  On or prior to the Restatement Date, nothing
shall have occurred (and none of the Agents nor any Lender shall have become
aware of any facts or conditions not previously known) which Agents or the
Required Lenders shall determine has or reasonably could be expected to have,
or could have a Material Adverse Effect.

  

6.2    Conditions Precedent to Effectiveness.  The Third Amended and Restated Credit
Agreement shall become effective upon the satisfaction of each of the following
conditions:

  

(a)     Loan Documents. 
Agent shall have received each of:

    

(i)     the
Third Amended and Restated Credit Agreement, executed and delivered by a duly
authorized officer of Borrower, the Agent and the Lenders; 

(ii)     for
the account of each Lender requesting the same, Notes conforming to the
requirements hereof and executed by a duly authorized officer of Borrower;

(iii)    an
Amended and Restated Security Agreement executed and delivered by a duly
authorized officer of Borrower and each Subsidiary Guarantor substantially in
the form of Exhibit 6.2(a)(iii) hereto (as amended, restated,
supplemented or otherwise modified from time to time, in the case of the
Borrower the "Borrower Security Agreement" and in the case of
the Subsidiary Guarantors the "Subsidiary Guarantor Security Agreement"
collectively with the Borrower Security Agreement, the "Security Agreements")
and in each case along with Annex H and Annex I thereto executed and delivered
by a duly authorized officer of each Person party thereto, together with:

      

(a)     proper amendments to the UCC-1 financing
statements (Form UCC-3 or such other financial statements or similar notices as
shall be required by local law) duly prepared for filing under the UCC or other
appropriate filing offices of each jurisdiction as may be necessary or, in the
opinion of Agent, desirable to perfect the security interests purported to be
created by the Security Agreements;

 (b)    evidence
of the completion of all other recordings and filings of, or with respect to,
the Security Agreements and all other actions as may be necessary or, in the
reasonable opinion of Agent, desirable to perfect the security interests
intended to be created by the Security Agreements;

 (c)    evidence
that all other actions necessary, or in the reasonable opinion of Agent,
desirable to perfect the security interests purported to be granted by the
Security Agreement have been taken;

      

(iv)    any additional Pledged Securities
required to be delivered pursuant to the Pledge Agreement, if any, by any
Credit Party, (x) endorsed in blank in the case of promissory notes
constituting Pledged Securities and (y) together with executed and undated
stock powers, in the case of capital stock constituting Pledged Securities, or
other transfer assignment instruments in form and substance satisfactory to
Agent, in the case of membership interests constituting Pledged Securities and
(z) the Pledge Agreement and such other documents shall be in full force and
effect, and each Credit Party which is a limited liability company shall have
certificated all existing membership interests and delivered to Agent, as
pledgee, such pledged certificates as Pledged Securities;

(v)     the Reaffirmation of Guaranty executed
and delivered by a duly authorized officer of each Subsidiary Guarantor
substantially in the form of Exhibit 6.2(a)(v) (as amended, restated,
supplemented or otherwise modified from time to time, the "Reaffirmation
of  Guaranty"); and

    

  

  
    

(vi)    the Cortland Mortgage in the form of Exhibit
6.2(a)(vi)(i), executed by Borrower together with a "marked up"
Cortland Mortgage Title Insurance Commitment in the form attached hereto as Exhibit
6.2(a)(vi)(ii).

    

(b)     Corporate Proceedings.  Agent shall have received (i) a copy of the
resolutions, in form and substance satisfactory to Agent, of the board of
directors of Borrower authorizing (x) the execution, delivery and performance
of the Third Amended and Restated Credit Agreement, the Notes and the other
Loan Documents to which it is a party and (y) the borrowings and other
extensions of credit contemplated hereunder, certified by the Secretary or an
Assistant Secretary of Borrower as of the Third Amended and Restated Effective
Date, which certificate shall state that the resolutions thereby certified have
not been amended, revoked, or rescinded and shall be in form and substance
satisfactory to Agent, (ii) a copy of the resolutions, in form and substance
satisfactory to Agent, of the board of directors of each Subsidiary Guarantor
authorizing (x) the execution, delivery and performance of each Loan Document
to which it is a party, certified by the Secretary or an Assistant Secretary of
each such Subsidiary Guarantor as of the Third Amended and Restated Effective
Date, which certificate shall state that the resolutions thereby certified have
not been amended, revoked, or rescinded and shall be in form and substance
satisfactory to Agent and (iii) copies of all documents and papers, including
records of corporate proceedings, governmental approvals, good standing
certificates, and bring down telegrams, if any, which Agent reasonably may have
requested in connection therewith, such documents and papers where appropriate
to be certified by proper corporate or governmental authorities.

(c)     Corporate Documents.  Agent shall have received, with a
counterpart for each Lender, true and complete copies of the certificate of
incorporation and by-laws of Borrower and each Subsidiary Guarantor, certified
as of the Third Amended and Restated Effective Date as complete and correct
copies thereof by the Secretary or an Assistant Secretary of such Person or a
certificate of the Secretary or an Assistance Secretary of such Person
certifying that there has been no change to such Certificate of Incorporation
and By-laws since the Third Amended and Restated Effective Date.

(d)     Incumbency Certificate.  Agent shall have received a certificate of
the Secretary or an Assistant Secretary of each Credit Party, dated the Third
Amended and Restated Effective Date, as to the incumbency and signature of the
officers of such Person executing the Loan Documents to which it is a party and
any certificate or other documents to be delivered by it pursuant thereto.

(e)     Fees and Amendment Fee.  Agent and the Documentation Agent shall have
received, for their own accounts and/or the accounts of Lenders, (i) all
accrued fees and expenses due and owing hereunder or in connection herewith to
Lenders and Agents and (ii) an amendment fee in the amount of .500% of the sum
of the Commitments and Term Loans of each Lender (after giving effect to the
Third Amended and Restated Credit Agreement) that executes the Third Amended
and Restated Credit Agreement on or before 5:00 p.m. central time, September
27, 2002.

(f)     Legal Opinions.  Agent shall have received, with a
counterpart for each Lender, the executed legal opinions of (i) the general
counsel of Borrower, substantially in the form of Exhibit 6.2(f)(i);
(ii) Faegre & Benson LLP, counsel to the Credit Parties, substantially in
the form of Exhibit 6.2(f)(ii); and (iii) Bond, Schoenock & King
LLP, counsel to the Credit Parties substantially in the form of Exhibit
6.2(f)(iii)  Such legal opinions
shall cover such other matters incident to the transactions contemplated by the
Third Amended and Restated Credit Agreement as Agent may reasonably require and
such counsel delivering the foregoing legal opinion is expressly instructed to
deliver its opinion for the benefit of each of Agent and the Lenders.

(g)     Approvals.  All necessary governmental (domestic and
foreign) and third party approvals in connection with the Third Amended and
Restated Credit Agreement and otherwise referred to herein or therein shall
have been obtained and remain in effect, and all applicable waiting periods
shall have expired without any action being taken by any competent authority
which restrains, prevents or imposes materially adverse conditions upon the
consummation of all or any part of the Third Amended and Restated Credit
Agreement or the other transactions contemplated by the Loan Documents and
otherwise referred to herein or therein. 
Additionally, there shall not exist any judgment, order, injunction or
other restraint issued or filed or a hearing seeking injunctive relief or other
restraint pending or notified prohibiting or imposing materially adverse
conditions upon all or any part of the Third Amended and Restated Credit
Agreement, the transactions contemplated by the Documents or the making of the
Loans or the issuance of the Letters of Credit.

(h)     Litigation.  No litigation by any entity (private or
governmental) shall be pending or, to the best knowledge of Borrower,
threatened with respect to the Third Amended and Restated Credit Agreement, any
of the Loan Documents or any documentation executed in connection herewith or
the transactions contemplated hereby (including, without limitation, the Third
Amended and Restated Credit Agreement), or the obligations being refinanced in
connection with the consummation of the Third Amended and Restated Credit
Agreement or which Agents or the Required Lenders shall determine could
reasonably be expected to have a Material Adverse Effect.

(i)     Officer's Certificate.  Agents shall have received a certificate
executed by a responsible officer on behalf of Borrower, dated the Third
Amended and Restated Effective Date and in the form of Exhibit 6.2(i)
hereto, stating that the representations and warranties set forth in Article
V hereof are true and correct as of the date of the certificate, that no
Event of Default or Unmatured Event of Default has occurred and is continuing
and that the conditions of Section 6.2 hereof have been fully
satisfied (except that no opinion need be expressed as to the Agent's or
Required Lenders' satisfaction with any document, instrument or other matter).

(j)     Adverse Change.  On or prior to the Third Amended and
Restated Effective Date, nothing shall have occurred (and none of the Agents
nor any Lender shall have become aware of any facts or conditions not
previously known) which Agents or the Required Lenders shall determine has or
reasonably could be expected to have, or could have a Material Adverse Effect.

 (k)    Cortland
Appraisal.  On or prior to the Third
Amended and Restated Effective Date, the Agents and the Lenders shall have received
an appraisal of the Cortland, New York property owned by the Borrower in form
and substance satisfactory to the Agent and the Required Lenders.

(l)     Ramsey Mortgage Amendment.  Agent shall have received an amendment to
the Ramsey Mortgage executed and delivered by a duly authorized officer of
Borrower in form and substance satisfactory to the Agent.

(m)    Borrowing Base Certificate.  Agent shall have received a Borrowing Base
Certificate executed by the Treasurer or Chief Financial Officer of Borrower,
dated the Third Amended and Restated Effective Date in the form of Exhibit
7.2(h) hereto.

  

6.3    Certain
Conditions Precedent to Each Loan or Letter of Credit.  The agreement of each Lender to make a Loan
(including, without limitation, its initial Loans hereunder, but other than any
Revolving Loan the proceeds of which are to be used exclusively to repay
Refunded Swing Line Loans) and the obligation of any Facing Agent to issue or
any Lender to participate in any Letter of Credit is subject to the satisfaction
of the following conditions precedent:

  

(a)     Representations
and Warranties.  All representations
and warranties of Borrower and each other Credit Party contained herein and in
the other Loan Documents shall be true and correct in all material respects with
the same effect as though such representations and warranties had been made on
and as of the date of the making of such Loan or Letter of Credit;

(b)     No
Events of Default.  There shall
exist no Event of Default or Unmatured Event of Default;

(c)     Available
Revolving Commitment.  After giving
effect to the Loans and Letters of Credit requested to be made, no Lender will
have an Available Revolving Commitment which is less than zero; and

(d)     Other
Matters.  Agent shall have received
such other documents as required by this Agreement in connection with such
Loan, all in form and substance as required by this Agreement including, with
respect to Revolving Loans, a request for a Borrowing in accordance with the
provisions of Section 2.5 hereof; and with respect to the issuance of a
Letter of Credit, Agent and the respective facing Agent shall have received a
Letter of Credit Request meeting the requirements of Section 2.9(b).

  

Each request for a Borrowing and the
acceptance by Borrower of the proceeds thereof shall constitute a
representation and warranty by Borrower, as of the date of the Loans comprising
such Borrowing, that the conditions specified in Section 6.3(a), (b)
and (c) have been satisfied.

ARTICLE VII

AFFIRMATIVE COVENANTS

Borrower
hereby agrees that, so long as any Commitment remains in effect, or any Loan or
LC Obligation remains outstanding and unpaid or any other amount is owing to
any Lender or any Agent hereunder, Borrower shall:

7.1    Financial Statements.  Furnish
to each Lender:

  

(a)     as soon as available, but in any event
within 90 days after the end of each fiscal year of Borrower, a copy of the
consolidated and consolidating (by business unit) balance sheet of Borrower and
its consolidated Subsidiaries as at the end of such year and the related consolidated
and consolidating (by business unit) statements of income, retained earnings
and of cash flows for such year, setting forth in each case in comparative form
the figures for the previous year; and

(b)     as soon as available, but in any event
not later than 45 days after the end of each of the quarterly periods of each
fiscal year of Borrower, the unaudited consolidated and consolidating (by
business unit) balance sheet of Borrower and its consolidated Subsidiaries as
at the end of such quarter and the related unaudited consolidated and
consolidating (by business unit) statements of income, retained earnings and of
cash flows of Borrower and its consolidated Subsidiaries for such quarter and
the portion of the fiscal year through the end of such quarter, setting forth
in each case in comparative form the figures for the previous year (except with
respect to balance sheet figures which shall be in comparative form for the
previous audited period only);

(c)     as
soon as available, but in any event within 30 days after the end of each fiscal
month of Borrower other than the last such month of any fiscal quarter of
Borrower, the consolidated and business segment statements of operations for
such month in form reasonably satisfactory to Agent;

all such financial statements shall be complete and
correct in all material respects and shall be prepared in accordance with GAAP
applied consistently throughout the periods reflected therein and with prior
periods (except as approved by the accountants preparing such statements or
Financial Officer, as the case may be, and disclosed therein) and, in the case
of the consolidated financial statements referred to in Section 7.1(a),
accompanied by a report thereon of independent certified public accountants of
recognized national standing, which report shall contain no qualifications with
respect to the continuance of Borrower and its Subsidiaries as going concerns
and shall include a statement to the effect that such financial statements
present fairly in all material respects the consolidated financial position of
Borrower and its Subsidiaries as at the dates indicated and the consolidated
results of their operations and cash flow for the periods indicated in
conformity with GAAP and that the examination by such accountants in connection
with such financial statements has been made in accordance with generally
accepted auditing standards.

  

7.2    Certificates;
Other Information.  Furnish to each
Lender (or, if specified below, to Agent):

  

(a)     Accountant's
Certificates.  Concurrently with the
delivery of the financial statements referred to in Section 7.1(a), (i)
to the extent not contrary to the then current recommendations of the American
Institute of Certified Public Accountants, a certificate from Ernst & Young
L.L.P. or other independent certified public accountants of nationally
recognized standing, stating that, in the course of their annual audit of the
books and records of Borrower, no Event of Default or Unmatured Event of
Default has come to their attention which was continuing at the end of such
fiscal year or on the date of their certificate, or if such an Event of Default
or Unmatured Event of Default has come to their attention, the certificate
shall indicate the nature of such Event of Default or Unmatured Event of
Default and the action which Borrower proposes to take with respect thereto,
and (ii) a letter, in form reasonably satisfactory to Agent from such
accountants with respect to reliance on such accountant's certificate and
report on the annual consolidated financial statements referred to in this
Section;

(b)     Officer's
Certificate.  Concurrently with the
delivery of the financial statements referred to in Sections 7.1(a), 7.1(b)
and 7.1(c), a certificate of a Financial Officer substantially in the
form of Exhibit 7.2(b) stating that, to the best of such Financial
Officer's knowledge, (i) such financial statements present fairly, in
accordance with GAAP, the financial condition and results of operations of
Borrower and its Subsidiaries for the period referred to therein (subject, in
the case of interim statements, to normal recurring adjustments) and  (ii) that no Event of Default or Unmatured
Event of Default has occurred, in each case except as specified in such certificates,
which shall set forth detailed computations to the extent necessary to
establish whether Borrower is in compliance with the covenants set forth in Section
8.1 of this Agreement;

(c)     Budgets;
Projections.  As soon as available
and in any event within sixty (60) days following the first day of each fiscal
year of Borrower (i) an annual budget in form substantially similar to the
Projections (including budgeted statements of operations, income, cash flows,
retained earnings and shareholders' equity and balance sheets) prepared by
Borrower for each fiscal quarter of such fiscal year and (ii) projections in
form substantially similar to the Projections covering the period from such
fiscal year through the Termination Date, in each case prepared in reasonable
detail, with appropriate presentation and discussion of the principal
assumptions upon which such budgets and projections are based, which shall be
accompanied by the statement of the chief executive officer or Chief Financial
Officer of Borrower to the effect that, to the best of his knowledge, such
budget and projections are a reasonable estimate for the periods respectively
covered thereby;

(d)     Audit
Reports and Statements.  Promptly
following Borrower's receipt thereof, copies of all consolidated financial or
other consolidated reports or statements, if any, submitted to Borrower or any
of its Subsidiaries by independent public accountants relating to any annual or
interim audit of the books of Borrower or any of its Subsidiaries;

(e)     Public
Filings.  Within 20 days after the
same become public, copies of all financial statements, filings, registrations
and reports which Borrower may make to, or file with, the United States
Securities and Exchange Commission or any successor or analogous U.S.
Governmental Authority;

(f)     Status.  Within five Business Days after the
occurrence thereof, written notice to Agent of any change in the Most Recent
Ratio of Consolidated Debt to Consolidated EBITDA which results in a change in
the Applicable Margin or the Applicable Commitment Fee, provided, however,
that the failure to provide such notice shall not delay or otherwise affect any
change in the Applicable Margin or other amount payable hereunder which is to
occur upon such a change pursuant to the terms of this Agreement; and

(g)    Other Requested
Information  Such other information
respecting the respective properties, business affairs, financial condition
and/or operations of Borrower or any of its Subsidiaries as Agent or any Lender
may from time to time reasonably request.

(h)     Borrowing
Base Certificate.  As soon as
available, but not later than 30 days after the end of each month, a borrowing
base certificate in the form of Exhibit 7.2(h) (each, a "Borrowing Base
Certificate") executed by the Treasurer or Chief Financial Officer of the
Borrower, with respect to the Eligible Receivables and Eligible Inventory of
the Borrower and its Subsidiaries as of the last day of the immediately
preceding month.

  

7.3    Notices.  Promptly upon obtaining knowledge thereof,
give notice to Agent (which shall promptly provide a copy of such notice to
each Lender) of:

  

(a)     Event
of Default or Unmatured Event of Default. 
The occurrence of any Event of Default or Unmatured Event of Default,
accompanied by a statement of a Financial Officer setting forth details of the
occurrence referred to therein and stating what action Borrower proposes to
take with respect thereto.

(b)     Litigation
and Related Matters.  The
commencement of, or any material development in any action, suit, proceeding or
investigation pending or threatened against or affecting Borrower or any of its
Subsidiaries or any of their respective properties before any arbitrator or
Governmental Authority, in which the amount involved that Borrower reasonably
determines is not covered by insurance is $7,500,000 or more, or which, if
determined adversely to Borrower or any of its Subsidiaries, would reasonably
be expected to have a Material Adverse Effect.

(c)     Notice
of Change of Control.  Each occasion
that there shall occur a Change of Control, and such notice shall set forth in
reasonable detail the particulars of each such occasion.

  

7.4    Conduct
of Business and Maintenance of Existence. 
Continue to engage in business of the same general type as now conducted
by it and preserve, renew and keep in full force and effect its and each
Subsidiary's corporate existence (except for any Subsidiary merged or otherwise
consolidated with or into Borrower or another Subsidiary) and take all
reasonable action to maintain all rights, privileges and franchises material to
its and those of each of its Subsidiaries' businesses except as otherwise
permitted pursuant to Sections 8.4 and 8.7 and comply and cause
each of its Subsidiaries to comply with all Contractual Obligations and
Requirements of Law except to the extent that failure to comply therewith would
not in the aggregate reasonably be expected to have a Material Adverse Effect.

7.5    Payment
of Obligations.  Pay or discharge or
otherwise satisfy at maturity or, to the extent permitted hereby, prior to
maturity or before they become delinquent, as the case may be, and cause each
of its Subsidiaries to pay or discharge or otherwise satisfy at or before
maturity or before they become delinquent, as the case may be:

  

(i)     all
its and their respective Indebtedness;

(ii)     all taxes, assessments and governmental
charges or levies imposed upon any of them or upon any of their income or
profits or any of their respective properties or assets prior to the date on
which penalties attach thereto; and

(iii)    all lawful claims prior to the time they
become a Lien (other than Permitted Liens) upon any of their respective
properties or assets;

  

provided, however, that neither Borrower nor
any of its Subsidiaries shall be required to pay or discharge any such
Indebtedness, tax, assessment, charge, levy or claim while the same is being
contested by it in good faith and by appropriate proceedings diligently pursued
so long as Borrower or such Subsidiary, as the case may be, shall have set
aside on its books adequate reserves in accordance with GAAP (segregated to the
extent required by GAAP) with respect thereto and title to any material
properties or assets is not jeopardized in any material respect.

7.6    Inspection
of Property, Books and Records. 
Keep, or cause to be kept, and cause each of its Subsidiaries to keep or
cause to be kept, adequate records and books of account, in which complete
entries are to be made reflecting its and their business and financial
transactions, such entries to be made in accordance with sound accounting
principles consistently applied and will permit, and cause each of its
Subsidiaries to permit, any Lender or its respective representatives, at any
reasonable time, and from time to time at the reasonable request of such Lender
made to Borrower and upon reasonable notice, to visit and inspect its and their
respective properties, to examine and make copies of and take abstracts from
its and their records and books of account, and to discuss its and their
respective affairs, finances and accounts with its and their principal
officers, directors and independent public accountants (and by this provision
Borrower authorizes such accountants to discuss with the Lenders and such
representatives the affairs, finances and accounts of Borrower and its
Subsidiaries; provided, however, that prior to the occurrence and
continuance of an Event of Default, all such discussions shall take place in
the presence of a Financial Officer of Borrower).

7.7    ERISA.  (i) 
As soon as practicable and in any event within thirty days after
Borrower or any of its Subsidiaries or ERISA Affiliates knows or has reason to
know that a Reportable Event has occurred with respect to any Plan which would
have a Material Adverse Effect, deliver, or cause such Subsidiary or ERISA
Affiliate to deliver, to Agent a certificate of a responsible officer of
Borrower or such Subsidiary or ERISA Affiliate, as the case may be, setting
forth the details of such Reportable Event and the action, if any, which
Borrower or such Subsidiary or ERISA Affiliate is required or proposes to take,
together with any notices required or proposed to be given; (ii) upon the
request of any Lender made from time to time, deliver, or cause each Subsidiary
or ERISA Affiliate to deliver, to each Lender a copy of the most recent
actuarial report completed and annual report filed with respect to any Plan;
(iii) as soon as possible and in any event within ten (10) days after Borrower
or any of its Subsidiaries or ERISA Affiliates knows or has reason to know that
any of the following have occurred or is reasonably likely to occur with
respect to any Plan and could reasonably be expected to have a Material Adverse
Effect: (A) the Plan Sponsor intends to terminate such Plan, (B) the PBGC has
instituted or will institute proceedings under Section 4042 of ERISA to terminate
such Plan, (C) that an accumulated funding deficiency (as defined in Section
3.02(a) of ERISA and Section 412(a) of the Code) has been incurred or that on
application may be or has been made to the Secretary of the Treasury for a
waiver or modification of the minimum funding standard (including any required
installment payments) or on extension of any amortization period under Section
412 of the Code, or (D) that Borrower, or any Subsidiary of Borrower or any
ERISA Affiliate will or is reasonably likely to incur any liability (including,
but not limited to, contingent or secondary liability) to or on account of the
termination of or withdrawal from a Plan under Section 401(a)(29), 4971, 4975
or 4980 of the Code or Section 409 or 502(1) of ERISA, deliver, or cause such
Subsidiary or ERISA Affiliate to deliver, to Agent a written notice thereof;
and (iv) as soon as possible and in any event within thirty days after Borrower
or any of its Subsidiaries or ERISA Affiliates knows or has reason to know that
any of them has caused a complete withdrawal or partial withdrawal (within the
meaning of Sections 4203 and 4205, respectively, of ERISA) from any
Multiemployer Plan and that such withdrawal could reasonably be expected to
have a Material Adverse Effect, deliver, or cause such Subsidiary or ERISA
Affiliate to deliver, to Agent a written notice thereof.  For purposes of this Section 7.7,
Borrower shall be deemed to have knowledge of all facts known by the Plan
Administrator of any Plan of which Borrower is the Plan Sponsor, and each
Subsidiary and ERISA Affiliate of Borrower shall be deemed to have knowledge of
all facts known by the Plan Administrator of any Plan of which such Subsidiary
or ERISA Affiliate, respectively, is a Plan Sponsor.  In addition to its other obligations set forth in this Section
7.7, Borrower shall, and shall cause each of its Subsidiaries and ERISA
Affiliates to,

  

(A)    furnish to Agent, promptly after delivery
of the same to the PBGC by Borrower or any of its Subsidiaries, a copy of any
delinquency notice pursuant to Section 412(n) (4) of the Code,

(B)    correct any such failure to satisfy
funding requirements or delinquency referred to in the foregoing clauses
(iii)(C) of the first sentence of this Section 7.7 and clause (A)
above within ninety (90) days after the occurrence thereof, except where the
failure to so satisfy would not reasonably be expected to have a Material
Adverse Effect, and

(C)    comply in good faith with the
requirements set forth in Section 4980B of the Code and with Sections
601(a) and 606 of ERISA, except where the failure to so comply could not
reasonably be expected to have a Material Adverse Effect.

  

7.8    Insurance.  Borrower shall maintain, and shall cause
each of its Subsidiaries to maintain, with financially sound and reputable
insurers, insurance with respect to its properties and business against loss or
damage of the kinds customarily insured against by Persons engaged in the same
or similar business, or such types and in such amounts as are customarily
carried under similar circumstances by such other Persons.  Such insurance shall be maintained with
financially sound and reputable insurers, except that a portion of such
insurance program (not to exceed that which is customary in the case of
companies engaged in the same or similar business or having similar properties
similarly situated) may be effected through self-insurance, provided adequate
reserves therefor, in accordance with GAAP, are maintained.

7.9    Environmental
Laws.

  

(a)     Comply with in all material respects, and
cause its Subsidiaries to comply with in all material respects, and, in each
case take reasonable steps to ensure compliance in all material respects by all
tenants and subtenants, if any, with, all applicable Environmental Laws and
obtain and comply in all material respects with and maintain, and take
reasonable steps to ensure that all tenants and subtenants obtain and comply in
all material respects with and maintain, any and all licenses, approvals,
notifications, registrations or permits required by applicable Environmental
Laws except to the extent that failure to do so would not reasonably be
expected to have a Material Adverse Effect;

(b)     Conduct and complete all investigations,
studies, sampling and testing, and all remedial, removal and other actions
required under Environmental Laws and promptly comply in all material respects
with all lawful orders, directives and information requests of all Governmental
Authorities regarding Environmental Laws except to the extent that the same are
being contested in good faith by appropriate proceedings and the pendency of
such proceedings would not  reasonably
be expected to have a Material Adverse Effect; and

(c)     Defend, indemnify and hold harmless
Agent and the Lenders, and their respective employees, agents, officers and
directors, from and against any and all claims, demands, penalties, fines,
liabilities, settlements, damages, costs and expenses of whatever kind or
nature known or unknown, contingent or otherwise, arising out of, or in any way
relating to the violation of, noncompliance with or liability under, any
Environmental Law applicable to the operations of Borrower, any of its
Subsidiaries or their respective properties, or any orders, requirements or
demands of Governmental Authorities related thereto, including, without
limitation, reasonable attorneys' and consultants' fees, investigation and
laboratory fees, costs arising from any Remedial Actions, court costs and
litigation expenses, except to the extent that any of the foregoing arise out of
the gross negligence or willful misconduct of the party seeking indemnification
therefor.  The agreements in this clause
(c) shall survive repayment of the Notes and all other Obligations.

  

7.10   Intentionally
Omitted.  

7.11   Intentionally
Omitted.

7.12   Additional Security; Further Assurances.  

  

(a)     Additional Subsidiary Guarantors.  Borrower agrees to cause each new Domestic
Subsidiary established or created in accordance with Sections 8.4 and 8.8
(a "New Domestic Subsidiary") to execute and deliver the Subsidiary
Guaranty or such other guaranty of all Obligations and all obligations under
Interest Rate Protection Agreements entered into with a Lender or any Affiliate
thereof in form and substance reasonably satisfactory to Agent.

(b)     Pledge of New Subsidiary Stock.  Borrower agrees to pledge, or to cause its
Subsidiaries to pledge, (i) all of the Capital Stock of each New Domestic
Subsidiary and (ii) 65% of all Capital Stock of each new Foreign Subsidiary
owned directly by Borrower or any Domestic Subsidiary established or created to
Collateral Agent for the benefit of the Secured Creditors pursuant to the
Pledge Agreement.

(c)     Grant of Security by New Domestic
Subsidiaries.  Borrower will cause
each New Domestic Subsidiary which is required to execute and deliver the
Subsidiary Guarantee Agreement pursuant to Section 7.12(a) to grant to
Collateral Agent a first priority Lien (subject to Permitted Liens) on all
property (tangible and intangible) of such Subsidiary that would have
constituted Collateral on the Third Amended and Restated Effective Date upon
terms substantially similar to those set forth in the Security Documents as
appropriate, and reasonably satisfactory in form and substance to Agent.  Borrower shall cause each Subsidiary, at its
own expense, to execute, acknowledge and deliver, or cause the execution,
acknowledgment and delivery of, any document or instrument necessary or
desirable for the creation and perfection of the foregoing Liens.  Borrower will cause each of its newly
established Subsidiaries to take all actions requested by Agent (including,
without limitation, the filing of UCC-1's) in connection with the granting and
perfecting of such security interests.

(d)     Documentation for Additional Security.  The security interests required to be granted
pursuant to this Section 7.12 shall be granted pursuant to such security
documentation (which shall  be
substantially similar to the Security Documents already executed and delivered
by the Credit Parties on the Third Amended and Restated Effective Date)
reasonably satisfactory in form and substance to Agent and shall constitute
valid and enforceable perfected security interests prior to the rights of all
third Persons (subject to Permitted Liens) and subject to no other Liens except
Permitted Liens or, in the case of Mortgages, Permitted Real Property
Encumbrances.  The Additional Security
Documents and other instruments related thereto shall be duly recorded or filed
in such manner and in such places and at such times as are required by law to
establish, perfect, preserve and protect the Liens, in favor of Collateral
Agent for the benefit of the Secured Creditors, required to be granted pursuant
to the Additional Security Document and, all taxes, fees and other charges
payable in connection therewith shall be paid in full by Borrower.  At the time of the execution and delivery of
the Additional Security Documents, Borrower shall cause to be delivered to the
Collateral Agent such agreements, certificates, opinions of counsel, Mortgage
Policies, title surveys, real estate appraisals  and other related documents as may be reasonably requested by
Agent to assure Agent that this Section 7.12 has been complied with.

(e)     Foreign Subsidiaries Security.  If following a change in applicable law,
including the relevant sections of the Code or the regulations promulgated thereunder, counsel for Borrower reasonably acceptable to Agent does not within
45 days after a request from Agent or the Lenders deliver evidence, in form and
substance reasonably satisfactory to Agent, with respect to any Foreign
Subsidiary which has not already had all of its stock pledged pursuant to the
Pledge Agreement that a pledge of 66-2/3% or more of the total combined voting
power of all classes of capital stock of such Foreign Subsidiary entitled to
vote would cause the undistributed earnings of such Foreign Subsidiary as
determined for Federal income tax purposes to be treated as a deemed dividend
to such Foreign Subsidiary's United States parent for Federal income tax
purposes, then that portion of such Foreign Subsidiary's outstanding capital
stock not theretofore pledged pursuant to the Pledge Agreement shall be pledge
to the Collateral Agent for the benefit of the Secured Creditors pursuant to
the Pledge Agreement (or another pledge agreement in substantially similar
form, if needed), to the extent that entering into such Pledge Agreement is
permitted by the laws of the respective foreign jurisdiction and with all
documents delivered pursuant to this Section 7.12 to be in form and substance
reasonably satisfactory to Agent.

(f)     Agreement to Grant Additional
Security.  Promptly, and in any
event within 30 days after the acquisition by Borrower or any Subsidiary of
assets or real or personal property or leasehold interests of the type that
would have constituted Collateral on the Third Amended and Restated Effective
Date and investments of the type that would have constituted Collateral on the
Third Amended and Restated Effective Date (the "Additional Collateral"),
Borrower will notify the Agent of such new Collateral and will execute all
filing of appropriate financing statements under the provisions of the UCC,
applicable foreign, domestic or local laws, rules or regulations in each of the
offices where such filing is, except with respect to Foreign Subsidiaries as
otherwise set forth herein, necessary or appropriate and (ii) will with respect
to real estate, execute a mortgage, obtain Mortgage Policies, title surveys,
Landlord Consents and real estate appraisals satisfying all Requirements of
Law, to grant Collateral Agent a perfected Lien in such Collateral (or
comparable interest under foreign law in the case of foreign Collateral)
pursuant to and to the full extent required by the Security Documents and this
Agreement; provided, however, that Borrower shall not be required
to notify the Agent for any Additional Collateral in the event Lenders'
security interest therein has already been perfected.

  

7.13 
Pledge of BV1.   Borrower
shall, as soon as practicable, but in any event not later than January 31, 2000
(subject to extension in the reasonable discretion of the Agent), pledge 65% of
the issued and outstanding Capital Stock of Buckbee-Mears Holding Company B.V.,
to the Collateral Agent for the benefit of the Secured Creditors pursuant to
documentation reasonably satisfactory to the Agent, including, without
limitation, an opinion of counsel (if requested by Agent).

7.14  Third Party Consultant.    
Upon the occurrence of any Event of Default, or in the event that as of
the last day of any fiscal quarter, the Consolidated EBITDA of the Borrower and
its Subsidiaries is less than $26 million for the period of four consecutive
fiscal quarters ending on such last day as determined in conjunction with the
calculation of the Leverage Ratio pursuant to Section 8.1(b), the Agent
shall be entitled to retain an independent third party consultant to assist it
in evaluating the reasonableness of Borrower's financial forecast, the fees and
expenses of such third party consultant to be paid by Borrower.  

7.15   Field Audit.  Within sixty (60) days following the Third
Amended and Restated Effective Date, the Borrower shall deliver to Agent and
the Lenders a report of the field examination of the Accounts Receivable and
Inventory of Borrower and its Subsidiaries (the "Field Audit")
which shall be in a form reasonably satisfactory to Agent.

7.16   Operating Accounts and Deposit Accounts.  Borrower shall, at all times, and shall
cause each Credit Party to, at all times, maintain all of its Operating
Accounts and Deposit Accounts with a Lender or Lenders; provided, however,
that nothing in this Section 7.16 shall be construed to require Borrower
or any Credit Party to maintain its Deposit Accounts and Operating Accounts
with any Lender on terms that are not commercially reasonable nor shall
anything in this Section 7.16 be construed to require any Lender to
offer any such services to Borrower or any Credit Party; provided, further,
in the event Borrower or any Credit Party is unable to obtain Deposit Accounts
and Operating Accounts with any of the Lenders on a commercially reasonable
basis, Borrower and the Credit Parties may maintain such Deposit Accounts and
Operating Accounts with a financial institution(s) that is not a Lender
provided that such financial institution(s) provide the Agent a written
acknowledgement in form and substance reasonably satisfactory to Agent
acknowledging the Lenders' Lien in the Collateral held in such Deposit Accounts
and Operating Accounts and agreeing, upon the occurrence and continuance of an
Event of Default, to take any such action with respect to the Collateral as
directed by the Agent consistent with the terms of this Agreement and the Loan
Documents. 

7.17   Field Exam Upon Event of Default.  Upon the occurrence of any Event of Default,
at the request of the Agent and the Supermajority Lenders of the Revolving Loan
Facility, the Term A Facility and the Term B Facility, the Borrower shall
retain a third party consultant to undertake a field examination of the
Accounts Receivable and Inventory of Borrower and its Subsidiaries a report of
which field examination shall be delivered to the Lenders and Agent within
forty-five (45) days following any such request.   

ARTICLE VIII

NEGATIVE COVENANTS

Borrower
hereby agrees that, so long as the Revolving Commitments remain in effect or
any Obligation is owing to any Lender or any Agent hereunder, Borrower shall
not, nor shall it permit any of its Subsidiaries to, directly or indirectly:

8.1    Financial Condition Covenants.

  

(a)     Maintenance
of Consolidated Net Worth.  Permit
Consolidated Net Worth on the last day of any fiscal quarter to be less than
the sum of (i)  $150,000,000 plus (ii) the amount equal to 50%
of the aggregate Consolidated Net Income of Borrower and its consolidated
Subsidiaries since December 31, 1997; provided, however, that in
the event that Borrower and its consolidated Subsidiaries have a consolidated
net loss for any fiscal quarter, Consolidated Net Income for purposes only of
clause (ii) of this Section 8.1(a) shall be deemed to be zero for such
fiscal quarter plus (iii) 75% of the Net Offering Proceeds from the
issuance of Capital Stock.

(b)     Leverage
Ratio.  Permit the ratio of
(a) Consolidated Debt on the last day of any fiscal quarter of Borrower
(after giving effect to all payments and prepayments made on or prior to such
last day) to (b) Consolidated EBITDA for the period of four consecutive
fiscal quarters ending on such last day to be greater than the respective ratio
set forth below opposite such fiscal quarter:

  

	
  Fiscal Quarter Ending

  	
  Ratio

  
	
               September 30, 2002 

  	
  4.40:1.0

  
	
               December 31, 2002 

  	
  4.25:1.0

  
	
               March 31, 2003

  	
  4.25:1.0

  
	
               June 30, 2003

  	
  3.50:1.0

  
	
               September 30, 2003 

  	
  3.25:1.0

  
	
               December 31, 2003

  	
  3.00:1.0

  
	
               March  31,
  2004

  	
  3.00:1.0

  

  

(c)     Interest
Coverage Ratio.  Permit the ratio of
(a) Consolidated EBITDA for the period of four consecutive fiscal quarters
ending on the last day of any fiscal quarter of Borrower to
(b) Consolidated Interest Expense for such period to be less than the
respective ratio set forth below opposite such fiscal quarter:

  

	
                      Fiscal Quarter Ending

  	
  Ratio

  
	
       September 30, 2002 through March 31, 2003 

  	
  2.00:1.0

  
	
       June 30, 2003 

  	
  2.25:1.0

  
	
       September 30, 2003 through December 31, 2003 

  	
  2.50:1.0

  
	
       March 31, 2004

  	
  2.75:1.0

  

  

(d)     Capital
Expenditures. (i) Borrower will not, and will not permit any of its
Subsidiaries to, make any Capital Expenditures, except that during any fiscal
year Borrower and its Subsidiaries may make Capital Expenditures so long as the
aggregate amount so made by Borrower and its Subsidiaries (on a consolidated
basis) during such fiscal year does not exceed $15,000,000.

    

 (ii)    Notwithstanding
the foregoing, Borrower and its Subsidiaries may make Capital Expenditures
(which Capital Expenditures will not be included in any determination under the
foregoing clause (i)) with the insurance proceeds received by Borrower or any of
its Subsidiaries from any Recovery Event so long as such Capital Expenditures
are to replace or restore any properties or assets in respect to which such
proceeds are received.

    

  

8.2    Indebtedness.  Incur, directly or indirectly, or suffer to
exist any Indebtedness except:

  

(a)     Indebtedness incurred pursuant to this
Agreement and the other Loan Documents;

(b)     Intercompany Indebtedness to the extent
such Indebtedness constitutes a Permitted Investment; provided, however,
that in the event of any subsequent issuance or transfer of any Capital Stock
which results in the holder of such Indebtedness ceasing to be a Credit Party
of Borrower or any subsequent transfer of such Indebtedness (other than to
Borrower or any other Credit Party) such Indebtedness shall be required to be
permitted under another clause of this Section 8.2; provided, further,
however, that in the case of Intercompany Indebtedness consisting of a
loan or advance to Borrower, each such loan or advance shall be subordinated to
the indefeasible payment in full of all of Borrower's obligations pursuant to
this Agreement and the other Loan Documents, and each such loan or advance
shall be on open account and shall not be evidenced by a promissory note or
other instrument;

(c)     Indebtedness outstanding on the Closing
Date and listed on Schedule 8.2(c) hereto, provided that the
Indebtedness under Existing Credit Agreements have been paid in full with the
proceeds of the Initial Loans under the Original Agreement;

(d)     Indebtedness under Interest Rate
Protection Agreements entered into to protect Borrower or any of its
Subsidiaries against fluctuations in interest rates in respect of the
Obligations;

(e)     Indebtedness under Currency Protection
Agreements so long as management of Borrower or such Subsidiary, as the case
may be, has determined that entering into of such Currency Protection
Agreements are bona fide hedging activities;

(f)     Permitted
Subordinated Indebtedness;

(g)     Permitted IDB/Community Development
Indebtedness; and

(h)     other
Indebtedness in addition to that described in clauses (a) through (g) of this Section
8.2; provided, however, that the aggregate principal amount
of the Indebtedness permitted under this Section 8.2(i), when added to
all Permitted IDB/Community Development Indebtedness then outstanding does not
exceed $5,000,000.

  

8.3    Liens.
Create, incur, assume or suffer to exist or agree to create, incur or assume
any Lien (except for Permitted Liens) in, upon or with respect to any of its
properties or assets (including, without limitation, any securities or debt
instruments of any of its Subsidiaries), whether now owned or hereafter
acquired, or assign or otherwise convey any right to receive income to secure
any obligation.

8.4    Fundamental
Changes.  Enter into any merger,
consolidation or amalgamation, or liquidate, wind-up or dissolve itself (or
suffer any liquidation or dissolution); make any Material Asset Disposition;
make any Acquisition; or make any material change in its present method of
conducting business; provided, however, that as long as
immediately after giving effect to such transaction, the resulting, surviving
or transferee Person shall have Consolidated Net Worth in an amount which is
not less than the Consolidated Net Worth of such Person prior to such
transaction:

  

(a)     any Subsidiary of Borrower may be merged
or consolidated with or into Borrower (provided, however, that
Borrower shall be the continuing or surviving corporation) or with or into any one
or more Wholly-Owned Subsidiaries of Borrower (provided, however,
that (i) at least one Wholly-Owned Subsidiary shall be the continuing or
surviving corporation and (ii) in the case of any merger or consolidation
between Subsidiaries at least one of that is a Subsidiary Guarantor, a
Subsidiary Guarantor shall be the surviving Person);

(b)     any Wholly-Owned Subsidiary may sell,
lease, transfer or otherwise dispose of any or all of its assets (upon
voluntary liquidation or otherwise) to Borrower or any other Wholly-Owned
Subsidiary of Borrower (and may thereafter be dissolved); 

(c)     Borrower may make any Permitted
Acquisition (which may be effected through a merger of a Subsidiary with or
into an acquired Person); and

(d)     Borrower
may carry out the European Reorganization, may continue its departure from the
computer-monitor apperture business, may complete the sale and transfer of its
operations in Saint Paul, Minnesota, and may close its operations in Azusa,
California (including the exercise by Vision-Ease Lens Azusa, Inc. of its
option to purchase certain real estate under its current leases and to sell
such real estate). 

  

8.5    Restricted
Payments.  Either:  (i) declare or pay any dividend or make any
distribution on or in respect of its Capital Stock or to the direct or indirect
holders of its Capital Stock (except dividends or distributions payable solely
in its Non-Convertible Capital Stock or in options, warrants or other rights to
purchase its Non-Convertible Capital Stock and except dividends or distributions
payable to Borrower or a Subsidiary of Borrower) or (ii) purchase, redeem or
otherwise acquire or retire for value any Capital Stock of Borrower (any such
dividend, distribution, purchase, redemption, repurchase, defeasance, other
acquisition, retirement or Investment being hereinafter referred to as a
"Restricted Payment"); provided, however, that during such time
as no Event of Default or Unmatured Event of Default has occurred and is
continuing or would result therefrom, Borrower or any Wholly-Owned Subsidiary
of Borrower may make Restricted Payments in any fiscal year of Borrower
consisting of repurchases of Capital Stock of Borrower in an aggregate amount
not to exceed $1,000,000. 

8.6    Distributions
from Subsidiaries.  Create or
otherwise cause or permit to exist or become effective any consensual
encumbrance or restriction on the ability of any Subsidiary of Borrower to (i)
pay dividends or make any other distributions on its Capital Stock or pay any
Indebtedness or other obligation owed to Borrower or any of its other
Subsidiaries, (ii) make any loans or advances to Borrower or any of its other
Subsidiaries, or (iii) transfer any of its property or assets to Borrower or
any of its other Subsidiaries, except:

  

(a)     any encumbrance or restriction pursuant
to an agreement in effect at or entered into on the Closing Date and reflected
on Schedule 8.6(a) hereto;

(b)     any encumbrance or restriction with
respect to a Subsidiary of Borrower pursuant to an agreement relating to any
Indebtedness issued by such Subsidiary on or prior to the date on which such
Subsidiary became a Subsidiary of Borrower or was acquired by Borrower (other
than Indebtedness issued as consideration in, or to provide all or any portion
of the funds utilized to consummate, the transaction or series of related
transactions in contemplation of or pursuant to which such Subsidiary became a
Subsidiary or was acquired by Borrower) and outstanding on such date;

(c)     any such encumbrance or restriction
consisting of customary non-assignment provisions in leases or other contracts
governing leasehold interests or other contract rights to the extent such
provisions restrict the transfer of the lease, contract or rights; and

(d)     in the case of clause (iii) above,
restrictions contained in security agreements securing Indebtedness of a
Subsidiary of Borrower to the extent such restrictions restrict the transfer of
the property subject to such security agreements.

  

8.7    Sales
of Assets and Subsidiary Stock. 
Convey, sell, lease or otherwise dispose of (or agree to do any of the
foregoing without the Agent's prior written consent) all or any part of the
property or assets of a Subsidiary of Borrower with a value in excess of
$1,000,000 unless Borrower or such Subsidiary receives consideration at the time
of such disposition at least equal to the fair market value, as determined in
good faith by the board of directors of such Person (including a determination
as to the value of all noncash consideration), of the shares and assets subject
to such disposition.  The Net Sale
Proceeds of any disposition shall be applied in the manner set forth in Section
4.3.

  8.8    Investments. 
Make any Investments except for Permitted Investments.

8.9    Transactions
with Affiliates.  Conduct any
business or enter into any transaction or series of similar transactions
(including the purchase, sale, lease or exchange of any property or the
rendering of any service) with any Affiliate of Borrower or any legal or
beneficial owner of 5% or more of any class of Capital Stock of Borrower or
with any Affiliate of such owner (other than a Wholly-Owned Subsidiary of
Borrower or an employee stock ownership plan for the benefit of Borrower's or
any of its Subsidiaries' employees) unless the terms of such business,
transaction or series of transactions are (i) as favorable to Borrower or such
Subsidiary as terms that would be obtainable at the time for a comparable
transaction or series of similar transactions in arm's‐length dealings
with an unrelated third person or, if such transaction is not one which by its
nature could be obtained from such person, is on fair and reasonable terms and
(ii) are in the ordinary course of business or, if not in the ordinary course
of business, are set forth in writing and the board of directors of Borrower or
such Subsidiary, as the case may be, has determined in good faith that such
business or transaction or series of transactions meets the applicable criteria
set forth in clause (i) above.

8.10   Sale-Leasebacks.  Lease any property as lessee in connection
with a Sale and Leaseback Transaction entered into after the Closing Date if,
at the time of such entering into and after giving effect thereto, Attributable
Debt for such Sale and Leaseback Transaction and for all Sale and Leaseback
Transactions so entered into by Borrower and its Subsidiaries from and after
the Closing Date shall exceed $5,000,000.

  8.11   Fiscal Year. 
Change the fiscal year of Borrower.

8.12   Amendments
to Organizational Documents.  Amend,
modify or waive, or permit any amendment, modification or waiver as to any
material provision of its articles of incorporation, by-laws or other similar
governing documents if such amendment, modification or waiver would adversely
affect the interests of Agent or the Lenders.

8.13   Accounting
Changes.  Make or permit to be made
any change in accounting policies affecting the presentation of financial
statements or reporting practices from those employed by it on the date hereof,
unless (i) such change is required by GAAP, (ii) such change is disclosed to
the Lenders through Agent or otherwise and (iii) relevant prior financial
statements that are affected by such change are restated (in form and detail
reasonably satisfactory to Agent) as may be required by GAAP to show
comparative results.

8.14   Lines
of Business.  Enter into or acquire
any line of business which is not reasonably related to the business engaged in
as of the date hereof.

8.15   Limitation
on Voluntary Payments.  Make any
voluntary prepayment of, or redeem, repurchase or defease, any Indebtedness except
(i) prepayments of the Obligations and (ii) mandatory prepayments required
pursuant to the instrument evidencing such Indebtedness or pursuant to which
any such Indebtedness was issued.

ARTICLE IX

EVENTS OF DEFAULT

9.1    Events
of Default.  If any of the events,
acts, conditions or occurrences (each, an "Event of Default") hereinafter set
forth shall occur or exist (for any reason whatsoever, and whether such
happening shall be voluntary or involuntary or come about or be effected by
operation of law or pursuant to or in accordance with any judgment, decree or
order of any court or any order, rule or regulation of any administrative or
governmental body):

  

(a)     Failure
to Make Payments When Due.  (i)
Borrower shall default in the payment when due of principal on any Loan in
accordance with the terms hereof or any reimbursement obligation with respect
to any Letter of Credit; or (ii) Borrower shall default in the payment when due
of interest on any Loan in accordance with the terms hereof and such default shall
continue for five (5) days after the date when due; or (iii) Borrower shall
default in the payment when due of any other amount owing hereunder or any
other Loan Document and such default shall continue for ten (10) days after the
date when due; or

(b)     Representations.  Any representation or warranty made or
deemed to be made by Borrower or any Credit Party herein or in any document,
instrument or certificate delivered by a Credit Party pursuant hereto shall
prove to have been incorrect or misleading in any material respect on or as of
the date made or deemed made; or

(c)     Breach
of Certain Covenants.  Borrower
shall fail to perform or comply with any term or condition contained in Sections
7.1, 7.2, 7.3 or 7.12, Article VIII; or

(d)     Other
Defaults Under Agreement or Loan Documents.  Borrower or any of its Subsidiaries shall default in the
performance or observance of any term, covenant, condition or agreement
contained in this Agreement (other than as provided in clauses (a), (b) or (c)
of this Section 9.1), or any other Loan Document and such default shall
continue unremedied for a period of 30 days after written notice thereof shall
have been given to Borrower by Agent or the Required Lenders; or

(e)     Default
Under Other Agreements.  Borrower or
any of its Subsidiaries (i) shall default in the payment when due (after giving
effect to any applicable grace period), whether at stated maturity or
otherwise, of principal or interest in respect of Indebtedness having an
aggregate principal amount of $5,000,000 or more; or (ii) shall fail to perform
or observe any other condition or covenant, or any other event shall occur or
condition exist, under any agreement or instrument relating to any such
Indebtedness having an aggregate principal amount of $5,000,000, if the effect
of any such failure, event or condition is to cause, or to permit the holder or
holders of such Indebtedness or beneficiary or beneficiaries of such
Indebtedness (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause (determined without regard to whether
any notice of acceleration or similar notice is required), such Indebtedness to
be declared to be due and payable prior to its stated maturity, or cash
collateral in respect thereof to be demanded; or

(f)     Judgments.  One or more judgments or decrees shall be
entered against Borrower or any of its Subsidiaries involving, individually or
in the aggregate, a liability of $7,500,000 or more and all such judgments or
decrees shall not have been vacated, discharged or stayed pending appeal within
sixty (60) days from the entry thereof but in any event prior to the
commencement of enforcement proceedings; or

(g)     Voluntary
Insolvency, Etc.  Borrower or any of
its Material Subsidiaries shall become insolvent, generally fail to pay, or
state in writing or publicly its inability or unwillingness to pay, its debts
as they become due or call a meeting of creditors for the purpose of adjusting
its debts; or Borrower or any of its Material Subsidiaries shall become insolvent
or shall voluntarily commence any proceeding or file any petition under any
bankruptcy, insolvency or similar law seeking dissolution or reorganization or
the appointment of a receiver, trustee, custodian or liquidator for it or a
substantial portion of its property, assets or business, or to effect a plan or
other arrangement with its creditors, or shall file any answer admitting the
jurisdiction of the court and the material allegations of an involuntary
petition filed against it in any bankruptcy, insolvency or similar proceeding,
or shall be adjudicated bankrupt, or shall make a general assignment for the
benefit of creditors, or shall consent to, or acquiesce in the appointment of,
a receiver, trustee, custodian or liquidator for a substantial portion of its
property, assets or business; or

(h)     Involuntary
Insolvency, Etc.  Involuntary
proceedings or an involuntary petition shall be commenced or filed against
Borrower or any of its Material Subsidiaries under any bankruptcy, insolvency
or similar law or seeking the dissolution or reorganization of it or the
appointment of a receiver, trustee, custodian or liquidator for it or of a
substantial part of its property, assets or business, or any writ, judgment,
warrant of attachment, execution or similar process shall be issued or levied
against a substantial part of its property, assets or business, and such
proceedings or petition shall not be dismissed, or such writ, judgment, warrant
of attachment, execution or similar process shall not be released, vacated or
fully bonded, within sixty (60) days after commencement, filing or levy, as the
case may be, or any order for relief shall be entered in any such proceeding;
or

(i)     Unenforceability.  This Agreement or any other Loan Document
shall cease for any reason to be in full force and effect (other than by reason
of any action by Agent or any Lender or the satisfaction of all Borrower's or
any of its Subsidiaries' obligations thereunder) or Borrower or any of its
Subsidiaries or any other Person (other than the Lenders or Agent) shall
disavow its obligations under any provision hereof or thereof, or shall deny
that it has any or further obligations under any provision thereof, or shall
contest the validity or enforceability of any provision thereof; or

(j)     ERISA.

    

(i)  A
Reportable Event or Reportable Events, or a failure to make a required
installment or other payment (within the meaning of Section 412(n)(l) of the
Code), shall have occurred with respect to any Plan or Plans that would
reasonably be expected to result in liability of Borrower to the PBGC or to a
Plan in each case in an aggregate amount exceeding $7,500,000 and the Agent
shall have notified Borrower in writing that (x) the Required Lenders have made
a determination that, on the basis of such Reportable Event or Reportable
Events or such failure to make a required payment, there are reasonable grounds
(A) for the termination of such Plan or Plans by the PBGC, (B) for the
appointment by the appropriate United States District Court of a trustee to
administer such Plan or Plans or (C) for the imposition of a lien in favor of a
Plan and (y) as a result thereof an Event of Default exists hereunder; or a
Termination Event shall have occurred; or

(ii)     The
Borrower or any ERISA Affiliate shall have been notified by the sponsor of a
Multiemployer Plan that it has incurred Withdrawal Liability to such
Multiemployer Plan and the amount of the Withdrawal Liability specified in such
notice, when aggregated with all other Withdrawal Liabilities (determined as of
the date or dates of such notification), exceeds $7,500,000; or

(iii)    Borrower
or any ERISA Affiliate shall have been notified by the sponsor of a
Multiemployer Plan that such Multiemployer Plan is in reorganization or is
being terminated, within the meaning of Title IV of ERISA, if solely as a
result of such reorganization or termination the aggregate annual contributions
of Borrower and its ERISA Affiliates to all Multiemployer Plans that are then
in reorganization or have been or are being terminated have been or will be
increased over the amounts required to be contributed to such Multiemployer
Plans for their most recently completed plan years by an amount exceeding
$7,500,000; or

    

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

(l)     Environmental
Default.  The Borrower or any of its
Subsidiaries shall be the subject of any proceeding or investigation pertaining
to the release by Borrower or any of its Subsidiaries, or any other Person of
any toxic or hazardous waste or substance into the environment, or any
violation of any Environmental Law, which, in either case, would reasonably be
expected to have a Material Adverse Effect; or

(m)    Security
Documents.  At any time after the
execution and delivery thereof, any of the Security Documents shall cease to be
in full force and effect in accordance with the terms thereof or shall cease to
give Agent for the benefit of the Lenders the Liens, rights, powers and
privileges purported to be created thereby (including, without limitation, a
first priority perfected security interest (subject to Permitted Liens) in, and
Lien on, all of the Collateral for which Agent or Collateral Agent has taken
necessary actions to perfect its security interest), in favor of Agent,
superior to and prior to the rights of all third Persons and subject to no
other Liens (except to the extent expressly permitted herein or therein); or
any Credit Party shall default in the due performance or observance of any
term, covenant or agreement on its part to be performed or observed pursuant to
any of the Security Documents and such default shall continue beyond any grace
period specifically applicable thereto pursuant to the terms of such Security
Document.

  

THEN, and in any such event (except an
Event of Default specified in paragraph (g) or (h) of this Section) and at any
time thereafter while an Event of Default is continuing, Agent may with the
consent of Required Lenders, and at the direction of the Required Lenders
shall, take one or more of the following actions: (A) declare the Revolving
Commitments terminated, whereupon the Revolving Commitment(s) of each Lender
hereunder shall terminate immediately and all fees and other amounts accrued in
accordance with this Agreement shall forthwith become due and payable without
any other notice of any kind; (B) declare all sums then owing by Borrower
hereunder and under the Notes to be forthwith due and payable, whereupon all
such sums shall become and be immediately due and payable without presentment,
demand, protest or notice of any kind, all of which are hereby expressly waived
by Borrower; (C) exercise on behalf of itself and the Lenders all rights and
remedies available to it and the Lenders under the Loan Documents or applicable
law and (D) terminate any Letter of Credit which may be terminated in
accordance with its terms, (iv) direct Borrower to pay (and Borrower agrees
that upon receipt of such notice, or upon the occurrence of any Event of
Default specified in Section 9.1(g) or Section 9.1(h) with
respect to Borrower it will pay) to Agent such additional amount of cash, to be
held as security by Agent, as is equal to the aggregate Stated Amount of all
Letters of Credit issued for the account of Borrower and its subsidiaries and
then outstanding, provided, however, that if an Event of Default
specified in paragraph (g) or (h) of this Section shall occur, the result which
would occur upon the giving of notice by Agent to Borrower, as specified in
clauses (A) or (B) above, shall occur automatically without the giving of any
such notice.  Promptly following the
making of any such declaration, Agent shall give notice thereof to Borrower and
each Lender, but failure to notify any Person shall not impair the effect of
such declaration.

9.2    Rescission
of Acceleration.  Anything in Section
9.1 to the contrary notwithstanding, Agent shall, at the request of the
Required Lenders, rescind and annul any acceleration of the Notes under this
Agreement by written instrument filed with Borrower; provided, however,
that at the time such acceleration is so rescinded and annulled:

  

(i)     all past due interest and principal, if
any, on the Notes and all other sums payable under this Agreement (except any
principal and interest on any Notes which has become due and payable solely by
reason of such acceleration) shall have been duly paid, and

(ii)     no other Event of Default or Unmatured
Event of Default shall have occurred and be continuing which shall not have
been waived in accordance with this Agreement.

  

9.3    Rights
Not Exclusive.  The rights provided
for in this Agreement and the other Loan Documents are cumulative and are not
exclusive of any other rights, powers, privileges or remedies provided by law
or in equity, or under any other instrument, document or agreement now existing
or hereafter arising.

ARTICLE X

AGENT

10.1   Appointment
and Authorization.  Each Lender
hereby irrevocably appoints, designates and authorizes DBTCA as Agent (for
purposes of this Article X the term "Agent" shall include DBTCA in its capacity
as Collateral Agent pursuant to the Security Documents) and each holder of any
Note by the acceptance of such Note shall be deemed irrevocably to have
authorized Agent to take such action on its behalf under the provisions of this
Agreement and each other Loan Document and to exercise such powers and perform
such duties as are expressly delegated to it by the terms of this Agreement or
any other Loan Document, together with such powers as are reasonably incidental
thereto (including, without limitation, to give notices and take such actions
on behalf of the Required Lenders as are consented to in writing by the
Required Lenders).  Agent may perform
any of its duties hereunder, or under the other Loan Documents, by or through
its agents or employees.

10.2   Nature
of Duties.  Agent shall have no
duties or responsibilities except those expressly set forth in this
Agreement.  The duties of Agent shall be
mechanical and administrative in nature. 
EACH LENDER HEREBY ACKNOWLEDGES AND AGREES THAT AGENT SHALL NOT HAVE, BY
REASON OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, A FIDUCIARY RELATIONSHIP
TO OR IN RESPECT OF ANY LENDER.  Nothing
in any of the Loan Documents, expressed or implied, is intended to or shall be
so construed as to impose upon Agent any obligations in respect of any of the
Loan Documents except as expressly set forth herein or therein.  Each Lender shall make its own independent
investigation of the financial condition and affairs of Borrower in connection
with the making and the continuance of the Loans hereunder and shall make its
own appraisal of the credit worthiness of Borrower, and Agent shall have no
duty or responsibility, either initially or on a continuing basis, to provide
any lender with any credit or other information with respect thereto, whether
coming into its possession before making of the Loans or at any time or times
thereafter.  Agent will promptly notify
each Lender at any time that the Required Lenders have instructed it to act or
refrain from acting pursuant to Article IX.

10.3   Liability
of Agent.  Agent, its Affiliates, or
any of their respective officers, directors, employees, agents, affiliates or
attorneys‐in‐fact (collectively, the "Agent‐Related Persons")
shall not (i) be liable to any of the Lenders for any action taken or omitted
to be taken by any of them under or in connection with this Agreement or any
other Loan Document (except for their own gross negligence or willful
misconduct), or (ii) be responsible in any manner to any of the Lenders for any
recital, statement, representation or warranty made by Borrower or Affiliate of
Borrower, or any officer thereof, contained in this Agreement or in any other
Loan Document, or in any certificate, report, statement or other document
referred to or provided for in, or received by Agent, or the Documentation
Agent under or in connection with, this Agreement or any other Loan Document,
or the execution, validity, effectiveness, genuineness, enforceability,
collectibility or sufficiency of this Agreement or any other Loan Document, or
for any failure of Borrower to perform its obligations hereunder or
thereunder.  No Agent‐Related
Person shall be under any obligation to any Lender to ascertain or to inquire
as to the observance or performance of any of the terms or provisions contained
in, or conditions of, this Agreement or any other Loan Document, or the
financial condition of Borrower, or the existence or possible existence of any
Unmatured Event of Default or Event of Default unless requested to do so by the
Required Lenders, or to inspect the properties, books or records of Borrower or
any of its Subsidiaries or Affiliates.

10.4   Reliance by Agent.

  

(a)     The Lenders agree that Agent shall be
entitled to rely, and shall be fully protected in relying, upon any writing,
resolution, notice, consent, certificate, affidavit, letter, telegram,
facsimile, telex or telephone message, statement or other document or
conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons, and upon advice and statements of
legal counsel (including counsel to Borrower), independent accountants and
other experts selected by Agent.  Agent
may at any time request instructions from the Lenders with respect to actions
or approvals (including the failure to act or approve) which by the terms of any
of the Loan Documents Agent is permitted or required to take or to grant.  The Lenders agree that Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any
other Loan Document unless it shall first receive such advice or concurrence of
the Required Lenders as it deems appropriate and, if it so requests, it shall
first be indemnified to its satisfaction by the Lenders against any and all
liability and expense which may be incurred by it by reason of taking or continuing
to take any such action.  The Lenders
agree that Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement or any other Loan Document in
accordance with a request or consent of the Required Lenders and such request
or consent and any action taken or failure to act pursuant thereto shall be
binding upon all of the Lenders.

(b)     For purposes of determining compliance
with the conditions specified in Sections 6.1 and 6.2, each
Lender that has executed this Agreement shall be deemed to have consented to,
approved or accepted or to be satisfied with each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to the Lender, unless an officer of Agent, responsible for the
transactions contemplated by the Loan Documents shall have received notice from
the Lender prior to the initial Borrowing specifying in reasonable detail its
objection thereto and either such objection shall not have been withdrawn by
notice to Agent to that effect, or the Lender shall not have made available to
Agent the Lender's ratable portion of such Borrowing.

  

10.5   Notice
of Default.  Agent shall not be
deemed to have knowledge or notice of the occurrence of any Event of Default or Unmatured Event of Default, except with respect to defaults in the payment of
principal, interest and fees required to be paid to Agent for the account of
the Lenders, unless Agent shall have received written notice from a Lender or
Borrower referring to this Agreement, describing such Event or Default or
Unmatured Event of Default and stating that such notice is a "notice of
default".  In the event that Agent
receives such a notice, Agent shall give notice thereof to the Lenders.  Agent shall take such action with respect to
such Event of Default or Unmatured Event of Default as shall be requested by
the Required Lenders in accordance with Article IX; provided, however,
that unless and until Agent shall have received any such request, Agent may
(but shall not be obligated to) take such action, or refrain from taking such
action, with respect to such Event of Default or Unmatured Event of Default as
it shall deem advisable or in the best interest of the Lenders.

10.6   Credit
Decision.  Each Lender expressly
acknowledges that none of the Agent‐Related Persons has made any
representation or warranty to it and that no act by any Agent, hereinafter
taken, including any review of the affairs of Borrower and its Subsidiaries
shall be deemed to constitute any representation or warranty by such Agent to
any Lender.  Each Lender represents to
Agent that it has, independently and without reliance upon Agent and based on
such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of Borrower and
its Subsidiaries, and all applicable bank regulatory laws relating to the
transactions contemplated thereby, and made its own decision to enter into this
Agreement and extend credit to Borrower hereunder.  Each Lender also represents that it will, independently and
without reliance upon Agent, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement
and the other Loan Documents, and to make such investigations as it deems
necessary to inform itself as to the business, prospects, operations, property,
financial and other condition and creditworthiness of Borrower or its
Subsidiaries.  Except for notices,
reports and other documents expressly herein required to be furnished to the
Lenders by Agent, Agent shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business,
prospects, operations, property, financial and other condition or
creditworthiness of Borrower which may come into the possession of any of the
Agent‐Related Persons.

10.7   Indemnification.  The Lenders shall indemnify upon demand the
Agent‐Related Persons (to the extent not reimbursed by or on behalf of
Borrower and without limiting the obligation of Borrower to do so), ratably
according to each Lender's Commitment Percentage from and against any and all
liabilities, obligations, losses, damages, claims, penalties, actions,
judgments, suits, costs, and reasonable expenses and disbursements of any kind
whatsoever which may at any time (including at any time following the repayment
of the Loans) be imposed on, incurred by or asserted against any such Person
any way relating to or arising out of this Agreement or any document
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by any such
Person under or in connection with any of the foregoing; provided, however,
that no Lender shall be liable for the payment to the Agent‐Related
Persons of any portion of such liabilities, obligations, losses, damages,
claims, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from such Person's gross negligence or willful misconduct.  Without limitation of the foregoing, each
Lender shall reimburse Agent upon demand for its ratable share of any reasonable
costs or out‐of‐pocket expenses (including Attorney Costs) incurred
by Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement, any other Loan Document, or
any document contemplated by or referred to herein to the extent that Agent is
not reimbursed for such expenses by or on behalf of Borrower.  Without limiting the generality of the
foregoing, if the IRS or any authority of the U.S. or other jurisdiction
asserts a claim that Agent did not properly withhold tax from amounts paid to
or for the account of any Lender (because the appropriate form was not
delivered, was not properly executed, or because such Lender failed to notify
Agent of a change in circumstances which rendered the exemption from, or
reduction of, withholding tax ineffective, or for any other reason) such Lender
shall indemnify Agent fully for all amounts paid, directly or indirectly, by
Agent as tax or otherwise, including penalties and interest, and including any
taxes imposed by any jurisdiction on the amounts payable to Agent under this Section
10.7, together with all Attorney Costs. 
The obligation of the Lenders in this Section 10.7 shall survive
the payment of all Obligations hereunder and termination of the Agreement.

10.8   Agent
in Individual Capacity.  Agent and
its Affiliates may make loans to, issue letters of credit for the account of,
accept deposits from, acquire equity interests in and generally engage in any
kind of banking, trust, financial advisory or other business with Borrower and
its Subsidiaries and Affiliates as though Agent were not Agent hereunder and
without notice to the Lenders.  With
respect to its Loans, Agent shall have the same rights and powers under this
Agreement as any other Lender and may exercise the same as though it were not
Agent hereunder or under any other Loan Document, including, without limitation,
the acceptance of fees or other consideration for services without having to
account for the same to any of the Lenders. 
The terms "Lender" and "Lenders" shall include DBTCA in its individual
capacity.

10.9   Resignation by Agent.

  

(a)     Agent may resign from the performance of
all its functions and duties hereunder at any time by giving fifteen (15)
Business Days' prior written notice to Borrower and the Lenders.  Such resignation shall take effect upon the acceptance
by a successor Agent of appointment pursuant to clauses (b) and (c) below or as
otherwise provided below.

(b)     Upon any such notice of resignation, the
Required Lenders shall appoint a successor Agent who shall (unless an Event of
Default has occurred and is continuing) be satisfactory to Borrower and shall
be an incorporated bank or trust company.

(c)     If a successor Agent shall not have been
so appointed within said 15 Business Day period, Agent, with the consent of
Borrower, shall then appoint a successor Agent who shall serve as Agent until
such time, if any, as the Required Lenders, with the consent of Borrower,
appoint a successor Agent as provided above.

(d)     If no successor Agent has been appointed
pursuant to clause (b) or (c) by the 20th Business Day after the date such
notice of resignation was given by Agent, Agent's resignation shall become
effective and the Required Lenders shall thereafter perform all the duties of
Agent hereunder until such time, if any, as the Required Lenders, with the
consent of Borrower, appoint a successor Agent as provided above.

(e)     Upon the effective date of such
resignation, only such successor Agent shall succeed to all the rights, powers
and duties of the retiring Agent and the term "Agent" shall mean such successor
agent and the retiring Agent's rights, powers and duties in such capacity shall
be terminated.  After any retiring Agent
resigns hereunder as Agent the provisions of this Article X and Section 11.4
shall inure to their respective benefit as to any actions taken or omitted to
be taken by it while it was Agent under this Agreement; except with respect to
indemnification provisions under this Agreement which shall survive as to such
resigning Agent.

  

10.10  Documentation
Agent.  The designation of Bank One,
NA as Documentation Agent shall not impose upon it any obligation or liability
to the Borrower or any Lender.

ARTICLE XI

MISCELLANEOUS

11.1   No Waiver; Modifications in Writing.   

  

(a) No failure or delay
on the part of Agent or any Lender in exercising any right, power or remedy
under this Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right, power or remedy preclude any other or
further exercise thereof or the exercise of any other right, power or
remedy.  The remedies provided for in
this Agreement are cumulative and are not exclusive of any remedies that may be
available to Agent or any Lender at law or in equity or otherwise.  No amendment, modification, supplement,
termination or waiver of or to any provision of this Agreement or any Note, nor
consent to any departure by Borrower therefrom, shall be effective unless the
same shall be consented to by or on behalf of Borrower and the Required
Lenders; provided, however, that the consent of each Lender
(other than a Defaulting Lender) affected thereby shall be required to effect
any amendment, modification, supplement, termination, waiver or consent, as the
case may be (any of the foregoing, a "Modification"), which has the effect of

    

(i)     reducing the aggregate principal amount of, or interest rate
on, any of the Revolving Notes or Term Notes or releasing any Subsidiary
Guarantor (other than as a result of a transaction permitted by Section 8.4
or an Asset Disposition made in accordance with the terms of this Agreement) or
reducing the aggregate amount of any fees provided for in this Agreement,
except that any Modification that has the effect of reducing the aggregate
amount of any fees payable to Agent for its own account shall require only the
consent of Agent;

(ii)     extending the stated final maturity of any of the Revolving
Commitments, Term Loans or the Notes or extending the date of any portion of
any payment of principal of, or interest or fees in respect of, any of the
Revolving Commitments, Term Loans or Notes (it being understood that modifying
or waiving any Event of Default or Unmatured Event of Default (other than an
Event of Default described in Section 9.1(a)(i), 9.1(g) or 9.1(h))
or amending the mandatory prepayment provisions or financial covenants shall
not constitute an extension of the final stated maturity or extension of the
date of any payment of any Commitment, 
Loan or Note); or

(iii)    changing this proviso or the first sentence of Section
11.9(a), reducing the percentage specified in the definition of the term
"Required Lenders", or (except in connection with a permitted assignment by any
Lender under this Agreement) the definition of the terms "Revolving
Commitment", "Term Loans" or "Commitment Percentage" (it being
understood with respect to all of the foregoing that, with the consent of the
Required Lenders, additional extensions of credit pursuant to this Agreement
may be included in the determination of the Required Lenders); 

(iv)    releasing any of the
Pledged Stock (except as expressly provided in the applicable Security Documents)
under all of the Security Documents; or

(v)    releasing any of the Collateral (except as expressly provided
in Section 11.20(b)); 

    

provided, further, that no
such amendment, modification, supplement, waiver, discharge, termination or
other change shall (1) without the consent of the Majority Lenders of each
Facility which is being allocated a lesser prepayment, repayment or commitment
reduction, alter the required application of any prepayments or repayments (or
commitment reduction), as between the various Facilities (although the Required
Lenders may waive in whole or in part, any such prepayment, repayment or
commitment reduction so long as the application, as amongst the various
Facilities, of any such prepayment, repayment or commitment reduction which is
still required to be made is not altered) (it being understood with respect to
all of the foregoing that, with the consent of the Required Lenders, the
definition of Majority Lenders may be amended to permit additional extensions
of credit as otherwise permitted by this Agreement) or (2) amend the
definitions of "Borrowing Base", "Eligible Receivables", or
"Eligible Inventory" without the consent of the Supermajority Lenders
of the Revolving Loan Facility; 

provided, further, that the
consent of Agent shall be required to effect any Modification that has the
effect of (x) increasing the duties or obligations of Agent, (y) increasing the
standard of care or performance required on the part of Agent, or (z) reducing
or eliminating the indemnities, exculpations or immunities to which Agent is
entitled;

Any Modification of or to any provision of
this Agreement shall be effective only in the specific instance and for the
specific purpose for which made or given and only if in writing.  Except where notice is specifically required
by this Agreement, no notice to or demand on Borrower or any other Person in
any case shall entitle Borrower or such other Person to any other or further
notice or demand in similar or other circumstances.

 (b) 
If, in connection with any proposed amendment, change, supplement,
waiver, discharge or termination of any of the provisions of this Agreement as
contemplated by clauses (a)(i) through (v), inclusive, of the first proviso to
the third sentence of Section 11.1(a), the consent of the Required
Lenders is obtained but the consent of one or more of such other Lenders whose
consent is required is not obtained, then Borrower shall have the right, so
long as all non‐consenting Lenders whose individual consent is required
are treated as described in either clauses (A) or (B) below, to either (A)
replace each such non‐consenting Lender or Lenders (or, at the option of
the Borrower if the respective Lender's consent is required with respect to
less than all Loans, to replace only the respective Loans of the respective
non-consenting Lender which gave rise to the need to obtain such Lender's
individual consent) with one or more Replacement Lenders pursuant to Section
3.7 so long as at the time of such replacement, each such Replacement
Lender consents to the proposed amendment, modification, supplement, waiver,
discharge, termination or other change or (B) terminate such non‐consenting
Lender's Revolving Commitment and repay all outstanding Loans of such Lender
which gave rise to the need to obtain such Lender's consent, in accordance with
Section 4.l(b) and/or 4.2; provided that, unless the
Revolving Commitment is terminated and Loans repaid pursuant to the preceding
clause (B) are immediately replaced in full at such time through the addition
of new Lenders or the increase of the Commitments and/or outstanding Loans of
existing Lenders (who in each case must specifically consent thereto), then in
the case of any action pursuant to preceding clause (B) the Required Lenders
(determined before giving effect to the proposed action) shall specifically
consent thereto, provided, further, that in any event Borrower
shall not have the right to replace a Lender, terminate its Revolving
Commitment or repay its Loans solely as a result of the exercise of such
Lender's rights (and the withholding of any required consent by such Lender)
contemplated by the second proviso to the third sentence of Section 11.1(a).

  

11.2   Intentionally omitted.

11.3   Notices,
Etc.  Except where telephonic
instructions or notices are authorized herein to be given, all notices,
demands, instructions and other communications required or permitted to be
given to or made upon any party hereto or any other Person shall be in writing
and shall be personally delivered or sent by registered or certified mail,
postage prepaid, return receipt requested, or by a reputable courier delivery
service, or by prepaid telex, TWX or telegram (with messenger delivery
specified in the case of a telegram), or by telecopier, and shall be deemed to be
given for purposes of this Agreement on the day received if deposited in
registered or certified mail, postage prepaid, and otherwise on the day that
such writing is delivered or sent to the intended recipient thereof, or in the
case of notice delivered by telecopy, upon completion of transmission with a
copy of such notice also being delivered under any of the methods provided
above, all in accordance with the provisions of this Section provided that any
notice, request or demand to or upon any Agent or the Lenders pursuant to Sections
2.1, 2.2, 3.4 or 4.1 shall not be effective until
received.  Unless otherwise specified in
a notice sent or delivered in accordance with the foregoing provisions of this
Section, notices, demands, instructions and other communications in writing
shall be given to or made upon the respective parties hereto at their
respective addresses (or to their respective telex, TWX or telecopier numbers)
indicated on Schedule 11.3 hereto or in any applicable Assignment and
Assumption Agreement and, in the case of telephonic instructions or notices, by
calling the telephone number or numbers indicated for such party on Schedule
11.3 hereto or in any applicable Assignment and Assumption Agreement (in
each case as such may be modified from time to time by notice hereunder).

11.4   Costs, Expenses and Taxes; Indemnity.

  

(a)     Generally.  Borrower agrees (without duplication) to pay
promptly upon written request by Agent, which shall include reasonable detail
(i) all reasonable costs and expenses in connection with the negotiation,
preparation, printing, typing, reproduction, execution and delivery of this
Agreement and the other Loan Documents and the documents and instruments
referred to herein and therein and any amendment, waiver, consent relating
hereto or thereto or other modifications of (or supplements to) any of the
foregoing and any and all other documents and instruments furnished pursuant
hereto or thereto or in connection herewith or therewith, including without
limitation, the reasonable fees and out-of-pocket expenses of Winston &
Strawn, special counsel to Agent, and any local counsel retained by Agent
relative thereto, other Attorney Costs, independent public accountants and
other outside experts retained by Agent in connection with the administration
of this Agreement and the other Loan Documents, and (ii) all reasonable
costs and expenses (including, without limitation, Attorney Costs), if any,
paid by Agent or any Lender in connection with the enforcement of this
Agreement, any of the Loan Documents or any other agreement furnished by
Borrower or any of its Subsidiaries pursuant hereto or thereto or in connection
herewith or therewith.  In addition,
Borrower shall pay any and all present and future stamp, transfer excise and
other similar taxes payable or determined to be payable in connection with the
execution and delivery of this Agreement, any Loan Document, or the making of
any Loan, and each agrees to save and hold Agent and each Lender harmless from
and against any and all liabilities with respect to or resulting from any delay
by Borrower in paying, or omission by Borrower to pay, such taxes.  Any portion of the foregoing fees,  costs and expenses which remains unpaid more
than thirty (30) days following Agent's or any Lender's statement and request
for payment thereof shall bear interest from the date of such statement and
request to the date of payment at the Default Rate.

(b)     Indemnification.  Borrower will indemnify and hold harmless
Agent and each Lender and each director, officer, employee, agent and Affiliate
of each Agent and each Lender (collectively, the "Indemnified Persons") from
and against all losses, claims, damages, penalties, causes of action,
obligations, costs, expenses or liabilities (including, without limitation,
Attorney Costs and reasonable expenses, consultant fees and investigation fees)
(collectively, "Expenses") to which such Indemnified Person shall become
subject, insofar as such Expenses (or actions, suits or proceedings, including,
without limitation, any inquiry or investigation or claim in respect thereof,
whether or not any Indemnified Person is named as a party) arise out of, in any
way relate to, or result from the transactions contemplated by this Agreement
and to reimburse each Indemnified Person upon its written demand showing
reasonable detail, for any legal or other expenses incurred in connection with
investigating, preparing to defend or defending any such loss, claim, damage,
liability, action or claim; provided, however, that Borrower shall
have no obligation to an Indemnified Person hereunder with respect to
indemnified liabilities arising from the gross negligence or willful misconduct
of any such Indemnified Person or for any loss, claim, damage, liability,
action or claim incurred by such Indemnified Person hereunder resulting solely
from the gross negligence or willful misconduct of such Indemnified Person; and
provided, further, however, that no Indemnified Person may
settle any such action, suit or proceeding without the consent of Borrower
which consent shall not be unreasonably withheld or delayed.  If an action, suit or proceeding arising
from any of the foregoing is brought against any Indemnified Person, Borrower
shall, if requested by such Indemnified Person, resist and defend at its own
expense such action, suit or proceeding or cause the same to be resisted and
defended by counsel reasonably satisfactory to such Indemnified Person.  Each Indemnified Person shall have the right
to employ its own counsel to investigate and control the defense of any matter
covered by such indemnity and the reasonable fees and expenses of such counsel
shall be at the expense of the indemnifying party, provided, however,
that in any one action or separate but similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances, Borrower shall
not be liable for fees and expenses of more than one counsel (in addition to
any local counsel), which counsel shall be designated by the Agent provided,
further, however, each Indemnified Person shall have the right to
employ separate counsel in any such inquiry, action, claim or proceeding and to
control the defense thereof, and the reasonable fees and expenses of such
counsel shall be at the expense of the Borrower if (i) Borrower shall have
agreed in writing to pay such fees and expenses or (ii) such Indemnified
Person shall have notified Borrower that it has been advised by counsel that
there may be one or more legal defenses available to such Indemnified Person that
are different from or additional to those available to the other Indemnified
Persons and that such common representation would adversely impact the adequacy
of the proposed representation.  If
Borrower shall fail to do, or cause to be done, any act or thing which it has
covenanted to do or cause to be done under this Agreement or any representation
or warranty on the part of Borrower contained in any Loan Document shall be
breached, Agent may (but shall not be obligated to) do the same or cause it to
be done or remedy any such breach, and may expend its own funds for such
purpose, and will use its best efforts to give prompt written notice to
Borrower that it proposes to take such action; provided, however,
that any failure by Agent to do any such act or thing or give any such notice
shall not relieve Borrower of any such obligations and shall not impose or
result in the imposition of any liability on Agent or any Lender.  Any and all amounts so expended by Agent shall
be due and payable by Borrower promptly upon Agent's written demand therefor,
together with interest thereon at a rate per annum equal to the Default Rate
during the period from and including the date so demanded by Agent to the date
of repayment.  To the extent that the
undertaking to indemnify, pay or hold harmless Agent or Lender as set forth in
this Section 11.4 may be unenforceable because it is violative of any
law or public policy, Borrower shall make the maximum contribution to the
payment and satisfaction of each of the indemnified liabilities which is
permissible under applicable law.

(c)     If any sum due from Borrower under this
Agreement or any order or judgment given or made in relation hereto has to be
converted from the currency (the "first currency") in which the same is
payable hereunder or under such order or judgment into another currency (the "second
currency") for the purpose of (i) making or filing a claim or proof against
Borrower with any Governmental Authority or in any court or tribunal, or (ii)
enforcing any order or judgment given or made in relation hereto, Borrower
shall indemnify and hold harmless each of the Persons to whom such sum is due
from and against any loss actually suffered as a result of any discrepancy
between (a) the rate of exchange used to convert the amount in question from
the first currency into the second currency, and (b) the rate or rates of
exchange at which such Person, acting in good faith in a commercially
reasonable and prompt manner, purchased the first currency with the second
currency after receipt of a sum paid to it in the second currency in
satisfaction, in whole or in part, of any such order, judgment, claim or
proof.  The foregoing indemnity shall
constitute a separate obligation of Borrower distinct from its other
obligations hereunder and shall survive the giving or making of any judgment or
order in relation to all or any of such other obligations.

(d)     The obligations of Borrower under this
Section and the other indemnification obligations of the Borrower under this
Agreement shall be effective and binding on Borrower irrespective of whether
any Loans are made and shall survive (i) the termination of this Agreement and
the discharge of Borrower's other obligations hereunder and under the Notes and
(ii) the assignment by any Lender of any of its interests herein pursuant to Section
11.9(c) with respect to any acts, omissions and/or events occurring or
arising prior to the Effective Date of such assignment.

(e)     Nothing contained in this Section shall
be deemed to limit or reduce any indemnity in favor of any Agent or any Lender
contained in any other Loan Document or agreement.

  

11.5   Confirmations.  Each of Borrower and each holder of a Note
agrees, from time to time, upon written request received by it from the other,
to confirm to the other in writing (with a copy of each such confirmation to
Agent) the aggregate unpaid principal amount of the Loans then outstanding
under such Note.

11.6   Transfer
of Notes.  In the event that the
holder of any Note (including any Lender) shall transfer such Note, it shall
immediately advise Agent and Borrower of such transfer, and Agent and Borrower
shall be entitled conclusively to assume that no transfer of any Note has been
made by any holder (including any Lender) unless and until Agent and Borrower
shall have received written notice to the contrary.  Each transferee of any Note shall take such Note subject to the
provisions of this Agreement and to any Modification or other action taken
under this Agreement prior to the receipt by Agent and Borrower of written
notice of such transfer by each previous holder of such Note and, except as
expressly otherwise provided in such notice, Agent and Borrower shall be
entitled conclusively to assume that the transferee named in such notice shall
thereafter be vested with all rights and powers under this Agreement with
respect to the Loans of the Lender named as the payee of the Note which is the
subject of such transfer.

11.7   Adjustments; Setoff.

  

(a)     If, other than as expressly set forth
elsewhere herein, any Lender shall obtain on account of the Committed Loans
made by it any payment (whether voluntary, involuntary, through the exercise of
any right of setoff, or otherwise) in excess of its Commitment Percentage of
payments on account of the Committed Loans obtained by all the Lenders, such
Lender shall forthwith (x) notify Agent of such fact, and (y) purchase from the
other Lenders such participations in the Committed Loans made by them as shall
be necessary to cause such purchasing Lender to share the excess payment ratably
with each of them; provided, however, that if all or any portion
of such excess payment is thereafter recovered from the purchasing Lender, such
purchase shall to that extent be rescinded and each other Lender shall repay to
the purchasing Lender the purchase price paid thereto together with an amount
equal to such paying Lender's Commitment Percentage (according to the
proportion of (i) the amount of such paying Lender's required repayment to (ii)
the total amount so recovered from the purchasing Lender, of any interest or
other amount paid or payable by the purchasing Lender in respect of the total
amount so recovered.  Agent will keep
records (which shall be conclusive and binding in the absence of demonstrable
error), of participations purchased pursuant to this Section 11.7 and
will in each case promptly notify the Lenders and Borrower following any such
purchases.  Any payments received after
the Lenders have taken action pursuant to this Section 11.7 shall be
allocated ratably among the Revolving Loans and the Swing Line Loans of all the
Lenders.

(b)     Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this Section 11.7
may, to the fullest extent permitted by law, exercise all its rights of payment
(including the right of setoff, but subject to Section 11.7(d)) with
respect to such participation as fully as if such Lender were the direct
creditor of Borrower in the amount of such participation.

(c)     Nothing herein shall require any Lender
to exercise any right of setoff or similar rights or shall affect the right of
any Lender to exercise, and retain the benefits of exercising, any such right
with respect to any other Indebtedness or obligation of Borrower.

(d)     In addition to any rights and remedies
of the Lenders provided by law, each Lender shall have the right, without prior
notice to Borrower or any other Person, any such notice being expressly waived
by Borrower, upon the occurrence of an Event of Default to setoff and apply
against any Obligations any and all deposits (general or special, time or
demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, whether matured or unmatured, of Borrower to
such Lender, any amount owing from such Lender or any branch or agency thereof
to or for the credit or account of Borrower, at or at any time after, the
happening of  any of the above-mentioned
events, and the aforesaid right of setoff may be exercised by such Lender
against Borrower or against any trustee in bankruptcy, debtor in possession,
assignee for the benefit of creditors, receivers, or execution, judgment or
attachment creditor of Borrower, or against anyone else claiming through or against,
Borrower or such trustee in bankruptcy, debtor in possession, assignee for the
benefit of creditors, receivers, or execution, judgment or attachment creditor,
notwithstanding the fact that such right of setoff shall not have been
exercised by such Lender prior to the making, filing or issuance, or service
upon such Lender of, or of notice of, any such petition, assignment for the
benefit of creditors, appointment or application for the appointment of a
receiver, or issuance of execution, subpoena, order or warrant.  Each Lender agrees promptly to notify
Borrower and Agent after any such setoff and application made by such Lender; provided,
however, that the failure to give such notice shall not affect the
validity of such setoff and application.

(e)     Borrower expressly agrees that to the
extent Borrower makes a payment or payments and such payment or payments, or
any part thereof, are subsequently invalidated, declared to be fraudulent or
preferential, set aside or are required to be repaid to a trustee, receiver, or
any other party under any bankruptcy act, state or federal law, common law or
equitable cause, then to the extent of such payment or repayment, the
Indebtedness to the Lenders or part thereof intended to be satisfied shall be
revived and continued in full force and effect as if said payment or payments
had not been made.

  

11.8   Execution
in Counterparts.  This Agreement may
be executed in any number of counterparts and by the different parties hereto
on separate counterparts, each of which counterparts, when so executed and
delivered, shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same Agreement and it shall
not be necessary in making proof of this Agreement to produce more than one
such counterpart or counterparts bearing the signatures of all of the parties
thereto.

11.9   Binding Effect; Assignment; Addition and Substitution of
Lenders.

  

(a)     This Agreement shall be binding upon,
and inure to the benefit of, Borrower, Agent, the Lenders, all future holders
of the Notes and their respective successors and assigns; provided, however,
that Borrower may not assign its rights or obligations hereunder or in
connection herewith or any interest herein (voluntarily, by operation of law or
otherwise) without the prior written consent of Agent and all of the Lenders.

(b)     Each Lender may at any time sell to one
or more banks or other entities ("Participants") participating interests
in all or any portion of its Revolving Commitment and Loans or participation in
Letters of Credit or any other interest of such Lender hereunder (in respect of
any Lender, its "Credit Exposure"). 
In the event of any such sale by a Lender of participating interests to
a Participant, such Lender's obligations under this Agreement shall remain
unchanged, such Lender shall remain solely responsible for the performance
thereof, and Borrower and Agent shall continue to deal solely and directly with
such Lender in connection with such Lender's rights and obligations under this
Agreement.  Borrower agrees that if
amounts outstanding under this Agreement or any of the Loan Documents are due
or unpaid, or shall have been declared or shall have become due and payable
upon the occurrence of an Event of Default, each Participant shall be deemed to
have the right of setoff in respect of its participating interest in amounts
owing under this Agreement and the Loan Documents to the same extent as if the
amount of its participating interest were owing directly to it as a Lender
under this Agreement or any other Loan Document, provided, however,  that such right of setoff shall be subject
to the obligation of such Participant to share with the Lenders, and the
Lenders agree to share with such Participant, as provided in Section 11.7.  Borrower also agrees that each Participant
shall be entitled to the benefits of Sections 3.5, 3.6 and 4.6
with respect to its participation in the Loans outstanding from time to
time.  Each Lender agrees that any
agreement between such Lender and any such Participant in respect of such
participating interest shall not restrict such Lender's right to approve or
agree to any amendment, change, supplement waiver of, discharge or termination
to any of the provisions of this Agreement or any of the Loan Documents except
to the extent that any of the forgoing would (i) extend the final scheduled
maturity of any Loan or Note in which such Participant is participating beyond
the Termination Date, or reduce the rate or extend the time of payment of
interest or fees on any such Loan or Note (except in connection with a waiver
of applicability of any post‐default increase in interest rates) or
reduce the principal amount thereof, or increase the amount of the
participant's participation over the amount thereof then in effect (it being
understood that waivers or modifications of conditions precedent, covenants,
Events of Default or Unmatured Events of Default or of a mandatory reduction in
Commitments shall not constitute a change in the terms of such participation,
and that an increase in any Revolving Commitment or Loan shall be permitted
without the consent of any Participant if the Participant's participation is
not increased as a result thereof), (ii) consent to the assignment or transfer
by Borrower of any of its rights and obligations under this Agreement or (iii)
release all or substantially all of the Collateral under all of the Security
Documents (except as expressly provided in the Loan Documents) supporting the
Loans and/or Letters of Credit hereunder in which such Participant is
participating.

(c)     Any Lender may at any time assign to one
or more Eligible Assignees, including an Affiliate thereof (each an "Assignee"),
all or any part of its Credit Exposure pursuant to an Assignment and Assumption
Agreement, provided that (i) it assigns its Credit Exposure in an amount
not less than $5,000,000 (or if less the entire amount of Lender's Credit
Exposure) and (ii) any assignment of all or any portion of any Lender's Credit
Exposure to an Assignee other than another Lender shall require the prior
written consent of Agent and, so long as no Unmatured Event of Default or Event
of Default has occurred and is continuing, Borrower (the consent of Borrower
and Agent not to be unreasonably withheld or delayed), and provided further,
that notwithstanding the foregoing limitations, any Lender may at any time
assign all or any part of its Credit Exposure to any Affiliate of such Lender
or to any other Lender.  Upon execution
of an Assignment and Assumption Agreement and the payment of a nonrefundable
assignment fee of $3,500 in immediately available funds to Agent at its Payment
Office in connection with each such assignment, written notice thereof by such
transferor Lender to Agent and the recording by Agent of such assignment and
the resulting effect upon the Loans and Revolving Commitment of the assigning
Lender and the Assignee, the Assignee shall have, to the extent of such
assignment, the same rights and benefits as it would have if it were a Lender
hereunder and the holder of the Obligations (provided that Borrower and Agent
shall be entitled to continue to deal solely and directly with the assignor
Lender in connection with the interests so assigned to the Assignee until
written notice of such assignment, together with payment instructions,
addresses and related information with respect to the Assignee, shall have been
given to Borrower and Agent by the assignor Lender and the Assignee) and, if
the Assignee has expressly assumed, for the benefit of Borrower, some or all of
the transferor Lender's obligations hereunder, such transferor Lender shall be
relieved of its obligations hereunder to the extent of such assignment and
assumption, and except as described above, no further consent or action by
Borrower, the Lenders or Agent shall be required.  At the time of each assignment pursuant to this Section
11.9(c) to a Person which is not already a Lender hereunder and which is
not a United States person (as such term is defined in Section 7701(a)(30)
of the Code) United States Federal income tax purposes, the respective Assignee
shall provide to Borrower and Agent the appropriate IRS Forms (and, if
applicable a Section 4.6(d)(ii) Certificate) described in Section
4.6(d).  Each Assignee shall take
such Credit Exposure subject to the provisions of this Agreement and to any
request made, waiver or consent given or other action taken hereunder, prior to
the receipt by Agent and Borrower of written notice of such transfer, by each
previous holder of such Credit Exposure. 
Such Assignment and Assumption Agreement shall be deemed to amend this
Agreement and Schedule 2.1(a)(ii) and 2.1(b) hereto, to  the extent, and only to the extent,
necessary to reflect the addition of such Assignee as a Lender and the
resulting adjustment of all or a portion of the rights and obligations of such
transferor Lender under this Agreement, the Revolving Commitment, the
determination of its Commitment Percentage (rounded to twelve decimal places),
the Loans and any new Notes to be issued, at Borrower's expense, to  such Assignee, and no further consent or
action by Borrower or the Lenders shall be required to effect such amendments.

(d)     Borrower authorizes each Lender to
disclose to any Participant or Assignee (each, a "Transferee") and any
prospective Transferee any and all financial information in such Lender's
possession concerning Borrower and any Subsidiary of Borrower which has been
delivered to such Lender by Borrower pursuant to this Agreement or which has
been delivered to such Lender by Borrower in connection with such Lender's
credit evaluation of Borrower prior to entering into this Agreement; provided
that such Transferee or prospective Transferee agrees in writing to treat any
such information which is not public as confidential.

(e)     Notwithstanding any other provision set
forth in this Agreement, any Lender may at any time pledge or assign all or any
portion of its rights under this Agreement and the other Loan Documents
(including, without limitation, the Notes held by it) to any Federal Reserve
Bank in accordance with Regulation A of the Federal Reserve Board without
notice to, or the consent of, Borrower. 
No such pledge or assignment shall release the transferor Lender from
its obligations hereunder.

  

11.10  CONSENT TO JURISDICTION; MUTUAL WAIVER OR JURY TRIAL.

  

(A)    ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE
BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE
SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, EACH PARTY HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF
ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID
COURTS.  EACH PARTY HEREBY IRREVOCABLY
DESIGNATES, APPOINTS AND EMPOWERS CT CORPORATION SYSTEM WITH OFFICES ON THE
DATE HEREOF AT 1633 BROADWAY, NEW YORK, NEW YORK 10019 AS ITS DESIGNEE,
APPOINTEE AND AGENT TO RECEIVE, ACCEPT AND ACKNOWLEDGE FOR AND ON ITS BEHALF,
AND IN RESPECT OF ITS PROPERTY, SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS,
NOTICES AND DOCUMENTS WHICH MAY BE SERVED IN ANY SUCH ACTION OR
PROCEEDING.  IF FOR ANY REASON SUCH
DESIGNEE, APPOINTEE AND AGENT SHALL CEASE TO BE AVAILABLE TO ACT AS SUCH, THEN
SUCH PARTY SHALL DESIGNATE A NEW DESIGNEE, APPOINTEE AND AGENT IN NEW YORK CITY
ON THE TERMS AND FOR THE PURPOSES OF THIS PROVISION SATISFACTORY TO AGENT UNDER
THIS AGREEMENT.  EACH PARTY FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY
REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH PARTY, AT ITS ADDRESS
SET FORTH OPPOSITE ITS SIGNATURE BELOW. 
NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY PARTY UNDER THIS AGREEMENT
TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY PARTY IN ANY OTHER JURISDICTION.

(B)    EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF
THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN
CLAUSE (A) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD
OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

(C)    EACH OF THE PARTIES TO THIS AGREEMENT
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN ANY COURT
OR JURISDICTION, INCLUDING WITHOUT LIMITATION THOSE REFERRED TO IN CLAUSE (A)
ABOVE, IN RESPECT TO ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY.

  

11.11  Governing
Law.  THIS AGREEMENT AND EACH NOTE
SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE INTERNAL LAWS OF THE STATE OF
NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED
IN ACCORDANCE WITH SUCH LAWS OF SAID STATE, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAWS.

11.12  Registry.  Borrower hereby designates Agent to serve as
Borrower's agent, solely for purposes of this Section 11.12 to maintain
a register (the "Register") on which it will record the Commitment from
time to time of each of the Lenders, the Loans made by each of the Lenders and
each repayment in respect of the principal amount of the Loans of each
Lender.  Failure to make any such
recordation, or any error in such recordation shall not affect Borrower's
obligations in respect of such Loans. 
With respect to any Lender, the transfer of the Commitments of such
Lender and the rights to the principal of, and interest on, any Loan made
pursuant to such Commitment shall not be effective until such transfer is
recorded on the Register maintained by Agent with respect to ownership of such
Commitment and Loans and prior to such recordation all amounts owing to the
transferor with respect to such Commitments and Loans shall remain owing to the
transferor.  The registration of
assignment or transfer of all or part of any Commitment and Loans shall be recorded
by Agent on the Register only upon the acceptance by Agent of a properly
executed and delivered Assignment and Assumption Agreement pursuant to Section
11.9.  Coincident with the delivery
of such an Assignment and Assumption Agreement to Agent for acceptance and
registration of assignment or transfer of all or part of a Loan, or as soon
thereafter as practicable, the assigning or transferor Lender shall surrender
the Note evidencing such Loan, and thereupon one or more new Notes in the same
aggregate principal amount then owing to such assignor or transferor Lender
shall be issued to the assigning or transferor Lender and/or the new Lender.
Borrower agrees to indemnify Agent from and against any and all losses, claims,
damages and liabilities of whatsoever nature which may be imposed on, asserted
against or incurred by Agent in performing its duties under this Section 11.12
except for those resulting solely from Agent's willful misconduct and/or gross
negligence in the performance of such duties.

11.13  Severability
of Provisions.  Any provision of
this Agreement that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provision in any other
jurisdiction.

11.14  Headings.  The Table of Contents and article and
section headings used in this Agreement are for convenience of reference only
and shall not affect the construction of this Agreement.

11.15  Independent
Nature of Lenders' Rights.  The
amounts payable at any time under this Agreement to each Agent and each Lender
shall be separate and independent debts; each Lender shall be entitled to
protect and enforce its rights arising out of this Agreement; and it shall not
be necessary for any Agent or any other Lender to be joined as an additional
party in any proceeding for such purpose.

11.16  Survival
of Representations.  Unless a longer
period is provided herein, all covenants, agreements and representations in
this Agreement shall survive the making by the Lenders of the Loans and the
execution and delivery to Agent for the account of the Lenders of the Notes
evidencing the Loans, regardless of any investigation made by any Agent or the
Lenders and of the Agent's and the Lenders' access to any information, and
shall continue in full force and effect until the final and indefeasible
payment in full of the Notes and all of Borrower's obligations under this Agreement
and the termination of the Revolving Commitments in their entirety.

11.17  Confidentiality.  Each of the Lenders severally agrees to keep
confidential all non-public information pertaining to Borrower and its
Subsidiaries which is provided to it by any such parties in accordance with
such Lender's customary procedures for handling confidential information of
this nature and in a prudent fashion, and shall not disclose such information
to any Person except (i) to the extent such information is public when received
by such Lender or becomes public thereafter due to the act or omission of any
party other than a Lender, (ii) to the extent such information is independently
obtained from a source other than Borrower or its Subsidiaries and such
information from such source is not, to such Lender's knowledge, subject to an
obligation of confidentiality or, if such information is subject to an
obligation of confidentiality, that disclosure of such information is
permitted, (iii) to an Affiliate of such Lender, counsel, auditors, examiners
of any regulatory authority having jurisdiction over such Lender, accountants
and other consultants retained by Agent or any Lender, (iv) in connection with
any litigation or the enforcement of the rights of any Lender or Agent under
this Agreement or any other Loan Document, (v) to the extent required by any
applicable statute, rule or regulation or court order (including, without
limitation, by way of subpoena) or pursuant to the request of any Governmental
Authority having jurisdiction over any Lender or Agent; provided, however, that
in such event, if the Lender(s) are able to do so, the Lender shall provide
Borrower with prompt notice of such requested disclosure so that Borrower may
seek a protective order or other appropriate remedy, and, in any event, the
Lenders will endeavor in good faith to provide only that portion of such
information which, in the reasonable judgment of the Lender(s), is relevant and
legally required to be provided, or (vi) to the extent disclosure to other
entities is appropriate in connection with any proposed or actual assignment or
grant of a participation by any of the Lenders of interests in this Agreement
and/or any of the other Loan Documents to such other financial institutions
(who will in turn be required to maintain confidentiality as if they were
Lenders parties to this Agreement).  In
no event shall Agent or any Lender be obligated or required to return any such
information or other materials furnished by Borrower.

11.18   Effectiveness.
 This Agreement shall become effective
on the date (the "Effective Date") on which Borrower, Agent and each of
the Lenders shall have signed a counterpart of this Agreement (whether the same
or different counterparts) and shall have delivered the same to the Agent at
the Notice Office (or to Agent's counsel as directed by such counsel) or, in
the case of the Lenders, shall have given to Agent or telephonic (confirmed in
writing), written, telex or facsimile notice (actually received) at such office
or the office of Agent's counsel that the same has been signed and mailed to
it.  Agent will give Borrower and each
Lender prompt written notice of the occurrence of the Effective Date.

11.19  Waiver
of Immunities.  Subject to Section
11.10 of this Agreement, each Lender waives, in relation to any action or
proceeding arising out of or relating to this Agreement or any Note, any
sovereign immunity or other immunity to suit or to execution or attachment to
which such Lender or any of its property may be or become entitled.

11.20  Concerning the Collateral and the Loan
Documents.

  

(a)     Authority.  Each Lender (on its own behalf and on behalf
of any Affiliate of such Lender which is a Secured Creditor) authorizes and
directs DBTCA to act as collateral agent and to enter into the Loan Documents
relating to the Collateral for the benefit of the Lenders and the other Secured
Creditors.  Each Lender (on its own
behalf and on behalf of any Affiliate of such Lender which is a Secured Creditor)
agrees that any action taken by the Agent, the Collateral Agent or the Required
Lenders (or, where required by the express terms, hereof, a different
proportion of the Lenders) in accordance with the provisions hereof or of the
other Loan Documents, and the exercise by the Agent, the Collateral Agent or
the Required Lenders (or, where so required, such different proportion) of the
powers set forth herein or therein, together with such other powers as are
reasonably incidental thereto, shall be authorized and binding upon all of the
Lenders and the other Secured Creditors. Without limiting the generality of the
foregoing, the Agent and the Collateral Agent shall have the sole and exclusive
right and authority to (i) act as the disbursing and collecting agent for the
Lenders and the other Secured Creditors with respect to all payments and
collections arising in connection herewith and with the Loan Documents relating
to the Collateral; (ii) execute and deliver each Loan Document relating to the
Collateral and accept delivery of each such agreement delivered by any Credit
Party, (iii) act as collateral agent for the Lenders and the other Secured
Creditors for purposes stated in the Loan Documents to the extent such
perfection is required under the Loan Documents, provided, however, the Agent
and the Collateral Agent hereby appoints, authorizes and directs each Lender
and the other Secured Creditors to act as collateral sub-agent for the Agent,
the Collateral Agent and the Lenders for purposes of the perfection of all
security interests and Liens with respect to each Credit Party's respective
deposit accounts maintained with, and cash and Cash Equivalents held by, such
Lender or such other Secured Creditor; (iv) manage, supervise and otherwise
deal with the Collateral; (v) take such action as is necessary or desirable to
maintain the perfection and priority of the security interests and liens
created or purported to be created by the Loan Documents, and (vi) except as
may be otherwise specifically restricted by the terms hereof or of any other
Loan Document, exercise all remedies given to the Agent or the Lenders with
respect to the Collateral under the Loan Documents relating thereto, applicable
law or otherwise.

(b)     Release of Collateral.  

    

(i)     The Agent and each Lender (on its own
behalf and on behalf of any Affiliate of such Lender that is a Secured
Creditor) hereby directs the Agent and the Collateral Agent to release, in
accordance with the terms hereof, any Lien held by the Agent or the Collateral
Agent, under the Security Documents:

      

(A)    against all of the Collateral, upon final
and indefeasible payment in full in cash of the Loans and Obligations and
termination of all Commitments and Letters of Credit and termination hereof;

(B)    against any part of the Collateral sold
or disposed of by Borrower or any of its Subsidiaries to the extent such sale
or disposition is permitted hereby (or permitted pursuant to a waiver or
consent of a transaction otherwise prohibited hereby);

(C)    against any Collateral acquired by
Borrower or any of its Subsidiaries after the Third Amended and Restated
Effective Date and at least 80% of the purchase price therefor is within 120
days of the acquisition thereof financed with Purchase Money Indebtedness
secured by a Lien permitted by clause (ix) of the definition of Permitted
Liens.

(D)    so long as no Unmatured Event of Default
or Event of Default has occurred and is continuing, in the sole discretion of
the Agent upon the request of Borrower, against any part of the Collateral with
a fair market value of less than $1,000,000 in the aggregate during the term of
this Agreement as such fair market value may be certified to the Agent by
Borrower in an officer's certificate acceptable in form and substance to the
Agent; and

(E)    against a part of the Collateral which
release does not require the consent of all of the Lenders as set forth in Section
11.1(a), if such release is consented to by the Required Lenders;

      

provided, however, that (y) the Agent and
the Collateral Agent shall not be required to execute any such document on terms
which, in its opinion, would expose it to liability or create any obligation or
entail any consequence other than the release of such Liens without recourse or
warranty, and (z) such release shall not in any manner discharge, affect or
impair the Obligations or any Liens upon (or obligations of Borrower or any of
its Subsidiaries in respect of) all interests retained by Borrower and/or any
of its Subsidiaries, including (without limitation) the proceeds of any sale,
all of which shall continue to constitute part of the Collateral.

(ii)     Each Lender (on its own behalf and on
behalf of any Affiliate of such Lender that is a Secured Creditor) hereby
directs the Agent and the Collateral Agent (and the Agent and the Collateral
Agent agree) to execute and deliver or file such termination and partial
release statements and such other things as are necessary to release Liens to
be released pursuant to this Section 11.20 promptly upon the
effectiveness of any such release or enter into intercreditor agreements contemplated
or permitted herein.

    

(c)     No Obligation.  Neither the Agent nor the Collateral Agent
shall have any obligation whatsoever to any Lender or any other Secured
Creditor or to any other Person to assure that the Collateral exists or is
owned by any Credit Party or is cared for, protected or insured or has been
encumbered or that the Liens granted to the Agent and the Collateral Agent
herein or pursuant to the Loan Documents have been properly or sufficiently or
lawfully created, perfected, protected or enforced or are entitled to any
particular priority, or to exercise at all or in any particular manner or under
any duty of care, disclosure or fidelity, or to continue exercising, any of the
rights, authorities and powers granted or available to the Agent or the
Collateral Agent in any of the Loan Documents, it being understood and agreed
that in respect of the Collateral, or any act, omission or event related
thereto, Agent and the Collateral Agent may act in any manner it may deem
appropriate, in its sole discretion, given the Agent's and the Collateral
Agent's own interests in the Collateral as one of the Lenders and that the
Agent and the Collateral Agent shall not have any duty or liability whatsoever
to any Lender, provided, that, notwithstanding the foregoing, the Agent and the
Collateral Agent shall be responsible for its grossly negligent actions or
actions constituting intentional misconduct.

  

     &nbspIN WITNESS WHEREOF, the parties hereto have caused this Third Amended
and Restated Credit Agreement to be executed by their respective officers
thereunto duly authorized, as of the date first above written.

BMC
INDUSTRIES, INC.

By:  /s/ Curtis E. Petersen

Name:  Curtis E. Petersen

Title:  Senior Vice President, Finance and
Administration, Chief Financial Officer
 DEUTSCHE BANK
TRUST COMPANY AMERICAS (formerly named Bankers Trust Company),

individually as a Lender and
as Agent

By:  /s/ M.A. Orlando

Name:  Marco Orlando

Title:  Director

BANK ONE, NA (Main Office Chicago)

individually as a Lender and
as documentation agent

By:  /s/ Henry W. Howe

Name:  Henry W. Howe

Title:  Officer

WELLS FARGO BANK MINNESOTA,
NATIONAL ASSOCIATION (f/k/a Norwest Bank Minnesota, National Association)

By:  /s/ Calvin R. Emerson

Name:  Calvin R. Emerson

Title:  Vice President

HARRIS TRUST AND SAVINGS
BANK

By:  /s/ George M. Oluhy

Name:  George M. Oluhy

Title:  Vice President

CREDIT AGRICOLE INDOSUEZ

By:  /s/ Larry Materi

Name:  Larry Materi

Title:  Vice President

WACHOVIA BANK, N.A.

By:  /s/ Richard E.S. Bowen

Name:  Richard E.S. Bowen

Title:  Vice President

UNION BANK OF CALIFORNIA,
N.A.

By:  /s/ Jeffrey Mumm

Name:  Jeffrey Mumm

Title:  Vice President

U.S. BANK NATIONAL
ASSOCIATION

By:  /s/ Nicholas G. Myers

Name:  Nicholas G. Myers

Title:  Assistant Vice PresidentDocument

 

TABLE
OF CONTENTS

 

 

	
  ARTICLE I SECURITY INTERESTS

  	
  5

  
	
   

  	
  1.1  

  	
  Grant of Security
  Interests

  	
  5

  
	
   

  	
  1.2  

  	
  Power of Attorney

  	
  5

  
	
  ARTICLE II GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

  	
  6

  
	
   

  	
  2.1  

  	
  Chief Executive
  Office/Inventory and Equipment Locations

  	
  6

  
	
   

  	
  2.2  

  	
  State of Incorporation

  	
  6

  
	
   

  	
  2.3  

  	
  Trade Names; CHANGE OF
  NAME

  	
  7

  
	
  ARTICLE III PROVISIONS CONCERNING ALL COLLATERAL

  	
  7

  
	
   

  	
  3.1  

  	
  Protection of Administrative
  Agent's Security

  	
  7

  
	
   

  	
  3.2  

  	
  Warehouse Receipts
  Non-Negotiable; THIRD-PARTY ACKNOWLEDGMENTS

  	
  7

  
	
   

  	
  3.3  

  	
  Further Actions

  	
  8

  
	
   

  	
  3.4  

  	
  Financing Statements

  	
  8

  
	
  ARTICLE IV REMEDIES UPON OCCURRENCE OF EVENT OF DEFAULT

  	
   8

  
	
   

  	
  4.1 

  	
  Remedies; Obtaining the
  Collateral Upon Default

  	
  8

  
	
   

  	
  4.2  

  	
  Remedies; Disposition of
  the Collateral

  	
  9

  
	
   

  	
  4.3  

  	
  Waiver of Claims

  	
  10

  
	
   

  	
  4.4  

  	
  Application of Proceeds

  	
  11

  
	
   

  	
  4.5  

  	
  Remedies Cumulative

  	
  13

  
	
   

  	
  4.6  

  	
  Discontinuance of
  Proceedings

  	
  13

  
	
  ARTICLE V INDEMNITY

  	
   14

  
	
   

  	
  5.1  

  	
  Indemnity

  	
  14

  
	
   

  	
  5.2  

  	
  Indemnity Obligations
  Secured by Collateral; SURVIVAL

  	
  14

  
	
  ARTICLE VI DEFINITIONS

  	
  15

  
	
  ARTICLE VII MISCELLANEOUS

  	
  19

  
	
   

  	
  7.1 

  	
  Notices

  	
  19

  
	
   

  	
  7.2 

  	
  Waiver; AMENDMENT

  	
  19

  
	
   

  	
  7.3  

  	
  Obligations Absolute

  	
  19

  
	
   

  	
  7.4  

  	
  Successors and Assigns

  	
  19

  
	
   

  	
  7.5  

  	
  Headings Descriptive

  	
  20

  
	
   

  	
  7.6  

  	
  Severability

  	
  20

  
	
   

  	
  7.7  

  	
  GOVERNING LAW

  	
  20

  
	
   

  	
  7.8 

  	
  Borrower's Duties

  	
  20

  
	
   

  	
  7.9 

  	
  Termination; RELEASE

  	
  20

  
	
   

  	
  7.10 

  	
  Counterparts

  	
  21

  
	
   

  	
  7.11

  	
  The Administrative Agent

  	
  21

  
	
  ARTICLE VIII SPECIAL PROVISIONS CONCERNING ACCOUNTS;  CONTRACT RIGHTS;  INSTRUMENTS

  	
  22

  
	
   

  	
  8.1 

  	
  Additional Representations and Warranties

  	
  22

  
	
   

  	
  8.2  

  	
  Maintenance of Records

  	
  22

  
	
   

  	
  8.3 

  	
  Modification of Terms; ETC

  	
  23

  
	
   

  	
  8.4 

  	
  Collection

  	
  23

  
	
   

  	
  8.5

  	
  Instruments

  	
  23

  
	
   

  	
  8.6

  	
  Further Actions

  	
  23

  
	
  ARTICLE IX SPECIAL PROVISIONS CONCERNING MARKS

  	
  24

  
	
   

  	
  9.1 

  	
  Additional Representations and Warranties

  	
  24

  
	
   

  	
  9.2 

  	
  Licenses and Assignments

  	
  24

  
	
   

  	
  9.3 

  	
  Infringements

  	
  24

  
	
   

  	
  9.4

  	
  Preservation of Marks

  	
  24

  
	
   

  	
  9.5

  	
  Maintenance of Registration

  	
  24

  
	
   

  	
  9.6

  	
  Future Registered Marks

  	
  25

  
	
   

  	
  9.7

  	
  Remedies

  	
  25

  
	
  ARTICLE X SPECIAL PROVISIONS CONCERNING PATENTS AND
  COPYRIGHTS AND TRADE SECRETS

  	
  25

  
	
   

  	
  10.1  

  	
  Additional
  Representations and Warranties

  	
  25

  
	
   

  	
  10.2 

  	
  Licenses and Assignments

  	
  26

  
	
   

  	
  10.3  

  	
  Infringements

  	
  26

  
	
   

  	
  10.4 

  	
  Maintenance of Patents

  	
  26

  
	
   

  	
  10.5  

  	
  Prosecution of Patent
  Application

  	
  26

  
	
   

  	
  10.6  

  	
  Other Patents and
  Copyrights

  	
  27

  
	
   

  	
  10.7 

  	
  Remedies

  	
  27

  

;

	
  ANNEX A

  	
  Schedule of Chief Executive Offices

  
	
  ANNEX B

  	
  Schedule of Inventory and
  Equipment Locations

  
	
  ANNEX C

  	
  Schedule of Trade, Fictitious and
  Other Names

  
	
  ANNEX D

  	
  Schedule of Marks

  
	
  ANNEX E

  	
  Schedule of License Agreements and
  Assignments

  
	
  ANNEX F

  	
  Schedule of Patents and Copyrights

  
	
  ANNEX G

  	
  Schedule of Copyrights and
  Applications

  
	
  ANNEX H

  	
  Assignment of Security Interest in
  U.S. Trademarks and Patents

  
	
  ANNEX I

  	
  Assignment of Security Interest in
  U.S. Copyrights

  

 

 

AMENDED
AND RESTATED

SECURITY AGREEMENT

between

BMC INDUSTRIES, INC.,

DEUTSCHE
BANK TRUST COMPANY AMERICAS 

(formerly
named Bankers Trust Company),

as Administrative Agent

and

U.S. BANK NATIONAL ASSOCIATION

Dated
as of September 27, 2002

 

AMENDED
AND RESTATED SECURITY AGREEMENT

THIS AMENDED AND RESTATED SECURITY
AGREEMENT, dated as of September 27, 2002, is between BMC INDUSTRIES, INC., a
Minnesota corporation ("Borrower"), DEUTSCHE BANK TRUST
COMPANY AMERICAS (formerly named Bankers Trust Company), as administrative
agent (the "Administrative Agent") and U.S. BANK NATIONAL
ASSOCIATION ("US Bank") for the benefit of (i) the Lenders and
the Agent under the Credit Agreement hereinafter referred to (such Lenders and
the Agent are hereinafter called the "Bank Creditors"), (ii)
if one or more Lenders (or any Affiliate thereof) enter into one or more (A)
interest rate protection agreements (including, without limitation, interest
rate swaps, caps, floors, collars and similar agreements), (B) foreign
exchange contracts, currency swap agreements or other similar agreements or
arrangements designed to protect against the fluctuations in currency values
and/or (C) other types of hedging agreements from time to time
(collectively, the "Interest Rate Protection or Other Hedging
Agreements") with, or guaranteed by, Borrower, any such Lender or
Lenders or any Affiliate of such Lender or Lenders (even if the respective
Lender subsequently ceases to be a Lender under the Credit Agreement for any
reason) so long as any such Lender or Affiliate participates in the extension
of such Interest Rate Protection or Other Hedging Agreements and their
subsequent assigns, if any (collectively, the "Other Creditors")
and (iii) US Bank as lender under the US Bank Letter of Credit Facility (as
defined below) (the "LC Creditor" and, together with the Other
Creditors and the Bank Creditors, hereinafter called the "Secured Creditors").  Except as otherwise defined herein, terms
used herein and defined in the Credit Agreement (as hereinafter defined) shall
be used herein as so defined.

W I T N E S S E T H :

WHEREAS, Borrower, the financial
institutions (the "Lenders") from time to time party thereto
and Bankers Trust Company, as Administrative Agent (together with any successor
agent, the "Agent"), have entered into an Amended and Restated
Credit Agreement, dated as of June 25, 1998, providing for the making of Loans
and the issuance of, and participation in, Letters of Credit as contemplated
therein (as used herein, the term "Credit Agreement" means the
Credit Agreement described above in this paragraph, as in effect on the date
hereof and as amended by that certain Second Amendment and Restatement
Agreement dated as of October 12, 2001 and as amended and restated by that
certain Third Amended and Restated Credit Agreement dated as of the date
hereof, as the same may be amended, modified, extended, renewed, replaced,
restated or supplemented from time to time, and including any agreement
extending the maturity of or restructuring of all or any portion of the
Indebtedness under such agreement or any successor agreements);

WHEREAS, Borrower may at any time and
from time to time enter into, or guarantee, one or more Interest Rate
Protection or Other Hedging Agreements with one or more Other Creditors;

WHEREAS, Borrower, Administrative Agent
and US Bank previously entered into a Security Agreement dated as of October
12, 2001 (the "Original Security Agreement");

WHEREAS, it is a condition precedent to
each of the above-described extensions of credit that Borrower shall have
executed and delivered this Agreement which shall amend and restate the
Original Security Agreement in its entirety; and

WHEREAS, Borrower desires to enter into
this Agreement in order to satisfy the condition described in the preceding
paragraph;

NOW, THEREFORE, in consideration of the
extensions of credit to be made to Borrower and other benefits accruing to
Borrower, the receipt and sufficiency of which are hereby acknowledged,
Borrower hereby makes the following representations and warranties to the
Administrative Agent for the benefit of the Secured Creditors and hereby
covenants and agrees with the Administrative Agent for the benefit of the
Secured Creditors as follows:

 

ARTICLE I

SECURITY INTERESTS

1.1             
Grant of Security Interests.  (a)  As security for the prompt and complete payment
and performance when due of all of the Obligations, Borrower does hereby pledge
and grant to the Administrative Agent for the benefit of the Secured Creditors,
a continuing security interest of first priority (subject to Liens evidenced by
Permitted Filings and other Permitted Liens) in, all of the right, title and
interest of Borrower in, to and under all of the following, whether now
existing or hereafter from time to time acquired:  (i) each and every Account, (ii) all Contracts, together with all
Contract Rights arising thereunder, (iii) all Inventory, (iv) all Equipment,
(v) all Marks, together with the registrations and right to all renewals
thereof, and the goodwill of the business of Borrower symbolized by the Marks,
(vi) all Patents and Copyrights, and all reissues, renewals or extensions
thereof, (vii) all computer programs of Borrower and all intellectual property
rights therein and all other proprietary information of Borrower, including,
but not limited to, Trade Secrets, (viii) all other Goods, General Intangibles,
Chattel Paper, Documents, Investment Property and Instruments, (ix) Letter of
Credit Rights, (x) Deposit Accounts, (xi) all cash, accounts, deposits and
insurance policies now or at any time hereafter in the possession or under
control of Borrower or its respective bailees and any interest therein, (xii)
all vehicles, aircraft, vessels, barges, railcars, rolling stock and fixtures
owned by the Borrower, together with accessions thereto and replacement parts
therefor, and (xiii) all Proceeds and products of any and all of the foregoing
(all of the above, collectively, the "Collateral"). 

(b)  The security interests of
the Administrative Agent under this Agreement extend to all Collateral of the
kind which is the subject of this Agreement which Borrower may acquire at any
time during the continuation of this Agreement.

1.2             
Power of Attorney.  Borrower hereby constitutes and appoints the Administrative Agent its
true and lawful attorney, with full power after the occurrence of and during
the continuance of an Event of Default (in the name of Borrower or otherwise),
in the Administrative Agent's reasonable discretion, to take any action and to
execute any instrument required by this Agreement if Borrower has failed to do
so after demand by the Administrative Agent.

ARTICLE II

GENERAL
REPRESENTATIONS, WARRANTIES AND COVENANTS

Borrower represents, warrants and
covenants, which representations, warranties and covenants shall survive
execution and delivery of this Agreement, as follows:

2.1             
Chief Executive Office/Inventory and Equipment Locations.  The chief executive office of Borrower is
located at the address indicated on Annex A hereto.  All Inventory and Equipment held on the date
hereof by Borrower is located at one of the locations shown on Annex B
hereto (other than (i) immaterial portions of Inventory or Equipment or (ii)
Equipment out for repair).    Prior to
January 1, 2002, the Borrower shall not (x) move its chief executive office to
any of the States of Mississippi, Alabama or Florida, or (y) move any Inventory
or Equipment to any of the States of Mississippi, Alabama or Florida until (i)
it shall have given to the Administrative Agent not less than 30 days' prior
written notice of its intention to do so, (ii) with respect to such move, it
shall have taken all action, reasonably satisfactory to the Administrative
Agent, to maintain the security interest of the Administrative Agent in the
Collateral intended to be granted and perfected under the Uniform Commercial
Code hereby at all times fully perfected and in full force and effect, (iii) at
the reasonable request of the Administrative Agent, it shall have furnished a
customary opinion of counsel reasonably acceptable to the Administrative Agent
to the effect that all financing or continuation statements and amendments or
supplements thereto have been filed in the appropriate filing office or
offices, and all other actions (including, without limitation, the payment of
all filing fees and taxes, if any, payable in connection with such filings)
have been taken, in order to perfect (and maintain the perfection and priority
of) the security interest granted hereby and (iv) the Administrative Agent
shall have received evidence that all other actions (including, without
limitation, the payment of all filing fees and taxes, if any, payable in
connection with such filings) have been taken, in order to perfect (and
maintain the perfection and priority of) the security interest granted hereby.

2.2             
State of Incorporation.  The state of incorporation of Borrower is indicated on Annex A
hereto.  Borrower will not change its
state of incorporation except as in accordance with the last sentence of this Section
2.2.  Borrower shall not establish a
new state of incorporation until (i) it shall have given to the Administrative
Agent not less than 30 days' prior written notice of its intention to do so,
clearly describing such new state of incorporation and providing such other
information in connection therewith as the Administrative Agent may reasonably
request, (ii) with respect to such new state of incorporation, it shall have
taken all action, reasonably satisfactory to the Administrative Agent, to
maintain the security interest of the Administrative Agent in the Collateral
intended to be granted and perfected under the Uniform Commercial Code hereby
at all times fully perfected and in full force and effect, (iii) at the
reasonable request of the Administrative Agent, it shall have furnished a
customary opinion of counsel reasonably acceptable to the Administrative Agent
to the effect that all financing or continuation statements and amendments or
supplements thereto have been filed in the appropriate filing office or
offices, and all other actions (including, without limitation, the payment of
all filing fees and taxes, if any, payable in connection with such filings)
have been taken, in order to perfect (and maintain the perfection and priority
of) the security interest granted hereby and (iv) the Administrative Agent
shall have received evidence that all other actions (including, without
limitation, the payment of all filing fees and taxes, if any, payable in
connection with such filings have been taken, in order to perfect (and maintain
the perfection and priority of) the security interest granted hereby.

2.3             
Trade Names; Change of Name.  Borrower does not have and has not operated in any jurisdiction
under, or in the preceding 12 months has not had nor has operated in any
jurisdiction under, any trade names, fictitious names or other names
(including, without limitation, any names of divisions or operations) except
its legal name and such other trade, fictitious or other names as are listed on
Annex C hereto.  The
corporation identification number or other applicable formation identification
number shall be set forth across from the exact legal name of Borrower
identified in Annex C.  Borrower
shall not change its legal name or assume or operate in any jurisdiction under
any trade, fictitious or other name in any manner which might make any
financing statement or continuation statement filed in connection therewith
seriously misleading except those names listed on Annex C hereto and new
names (including, without limitation, any names of divisions or operations)
established in accordance with the last sentence of this Section 2.3.  Borrower shall not assume or operate in any
jurisdiction under any new trade, fictitious or other name that would make any
financing statement or continuation statement filed in connection therewith,
seriously misleading until (i) it shall have given to the Administrative Agent
not less than 30 days' prior written notice of its intention so to do, clearly
describing such new name and the jurisdictions in which such new name shall be
used and providing such other information in connection therewith as the
Administrative Agent may reasonably request, (ii) with respect to such new
name, it shall have taken all action to maintain the security interest of the
Administrative Agent in the Collateral intended to be granted hereby at all
times fully perfected and in full force and effect, (iii) at the reasonable
request of the Administrative Agent, it shall have furnished a customary
opinion of counsel reasonablyacceptable
to the Administrative Agent to the effect that all financing or continuation
statements and amendments or supplements thereto have been filed in the
appropriate filing office or offices, and (iv) the Administrative Agent shall
have received evidence that all other actions (including, without limitation,
the payment of all filing fees and taxes, if any, payable in connection with
such filings) have been taken, in order to perfect (and maintain the perfection
and priority of) the security interest granted hereby.

ARTICLE
III

PROVISIONS
CONCERNING ALL COLLATERAL

3.1             
Protection of Administrative Agent's Security.  Borrower will do nothing to impair the
rights of the Administrative Agent in the Collateral other than dispositions,
the creation of Liens and other encumbrances and other actions permitted
hereunder and under the Credit Agreement and other Loan Documents.   

3.2             
Warehouse Receipts Non-Negotiable; Third-Party
Acknowledgments.  Borrower agrees
that if any warehouse receipt or receipt in the nature of a warehouse receipt
is issued with respect to any of its Inventory, such warehouse receipt or
receipt in the nature thereof shall not be "negotiable" (as such term
is used in Section 7-104 of the Uniform Commercial Code as in effect in
any relevant jurisdiction or under other relevant law).  Where Collateral with a fair market value of
greater than $100,000 is in the possession of a third party, Borrower will
promptly notify Administrative Agent of the occurrence of any such fact and
will join with the Administrative Agent in notifying the third party of the
Administrative Agent's security interest and obtaining an acknowledgment from
the third party that it is holding the Collateral for the benefit of the
Administrative Agent.

3.3             
Further Actions.  Borrower will, at its own expense, make, execute, endorse, acknowledge,
file and/or deliver to the Administrative Agent from time to time such lists, descriptions
and designations of its Collateral, warehouse receipts, receipts in the nature
of warehouse receipts, bills of lading, documents of title, vouchers, invoices,
schedules, confirmatory assignments, conveyances, financing statements,
transfer endorsements, powers of attorney, certificates, reports and other
assurances or instruments and take such further steps relating to the
Collateral and other property or rights covered by the security interest hereby
granted, which the Administrative Agent deems reasonably appropriate or
advisable to perfect, preserve or protect its security interest in the
Collateral.  

3.4             
Financing Statements.  Borrower agrees to deliver to the Administrative Agent such financing
statements, in form reasonably acceptable to the Administrative Agent, as the
Administrative Agent may from time to time reasonably request or as are
reasonably  necessary (or desirable in
the reasonable opinion of the Administrative Agent) to establish and maintain a
valid, enforceable, first priority perfected security interest (subject only to
Permitted Liens) in the Collateral as provided herein and the other rights and
security contemplated hereby all in accordance with the Uniform Commercial Code
as enacted in any and all relevant jurisdictions or any other relevant
law.  Borrower will pay any applicable
filing fees, recordation taxes and related expenses relating to its
Collateral.  Borrower hereby authorizes
the Administrative Agent to file any such Uniform Commercial Code financing
statements without the signature of Borrower where permitted by law.

ARTICLE
IV

REMEDIES
UPON OCCURRENCE OF EVENT OF DEFAULT

4.1             
Remedies; Obtaining the Collateral Upon Default.  Borrower agrees that, if any Event of
Default shall have occurred and be continuing, then and in every such case,
subject to any mandatory requirements of applicable law then in effect, the
Administrative Agent, in addition to any rights now or hereafter existing under
applicable law, shall have all rights as a secured creditor under the Uniform
Commercial Code in all relevant jurisdictions and may:

(a)        personally, or
by agents or attorneys, immediately take possession of the Collateral or any
part thereof, from Borrower or any other Person who then has possession of any
part thereof with or without notice or process of law, and for that purpose may
enter upon Borrower's premises where any of the Collateral is located and
remove the same and use in connection with such removal any and all services,
supplies, aids and other facilities of Borrower; and

(b)        instruct the
obligor or obligors on any agreement, instrument or other obligation
(including, without limitation, the Accounts and the Contracts) constituting
the Collateral to make any payment required by the terms of such agreement,
instrument or other obligation directly to the Administrative Agent and may
exercise any and all remedies of Borrower in respect of such Collateral; and

(c)       sell,
assign or otherwise liquidate, or direct Borrower to sell, assign or otherwise
liquidate, any or all of the Collateral or any part thereof, and take
possession of the proceeds of any such sale or liquidation; and

(d)        take possession of the Collateral or any
part thereof, by directing Borrower in writing to deliver the same to the
Administrative Agent at any place or places reasonably designated by the
Administrative Agent, in which event Borrower shall at its own expense:

(i)         forthwith cause the same to be moved to
the place or places so designated by the Administrative Agent and there
delivered to the Administrative Agent, and

(ii)        store and keep any Collateral so
delivered to the Administrative Agent at such place or places pending further
action by the Administrative Agent as provided in Section 6.2 hereof,
and

(iii)       while the Collateral shall be so stored
and kept, provide such guards and maintenance services as shall be necessary to
protect the same and to preserve and maintain them in good condition; and

(e)        license
or sublicense (to the extent not in violation of the license), whether on an
exclusive or nonexclusive basis, any Marks (together with associated goodwill),
Patents or Copyrights included in the Collateral for such term and on such
conditions and in such manner as the Administrative Agent shall in its sole
judgment determine (taking into account such provisions as may be necessary to
protect and preserve such Marks, Patents or Copyrights); and

it being understood that Borrower's obligation so to
deliver the Collateral is of the essence of this Agreement and that,
accordingly, upon application to a court of equity having jurisdiction, the
Administrative Agent shall be entitled to seek a decree requiring specific
performance by Borrower of said obligation.

4.2             
Remedies; Disposition of the Collateral.  If an Event of Default shall have occurred
and be continuing, then any Collateral repossessed by the Administrative Agent
under or pursuant to Section 4.1 hereof and any other Collateral whether
or not so repossessed by the Administrative Agent, may be sold, assigned,
leased or otherwise disposed of under one or more contracts or as an entirety,
and without the necessity of gathering at the place of sale the property to be
sold, and in general in such manner, at such time or times, at such place or
places and on such terms as the Administrative Agent may, in compliance with
any mandatory requirements of applicable law, determine to be commercially
reasonable.  Any of the Collateral may
be so sold, leased or otherwise disposed of, in the condition in which the same
existed when taken by the Administrative Agent or after any overhaul or repair
at the expense of Borrower which the Administrative Agent shall determine to be
commercially reasonable.  Any such
disposition which shall be a private sale or other private proceedings permitted
by such requirements shall be made upon not less than 10 days' written notice
to Borrower specifying the time at which such disposition is to be made and the
intended sale price or other consideration therefor, and shall be subject, for
the 10 days after the giving of such notice, to the right of Borrower or any
nominee of Borrower to acquire the Collateral involved at a price or for such
other consideration at least equal to the intended sale price or other
consideration so specified.  Any such
disposition which shall be a public sale permitted by such requirements shall
be made upon not less than 10 days' written notice to Borrower specifying the
time and place of such sale and, in the absence of applicable requirements of
law, shall be by public auction (which may, at the Administrative Agent's
option, be subject to reserve), after publication of notice of such auction not
less than 10 days prior thereto in two newspapers in general circulation in the
City of New York or in such other locations as may be necessary in order for
the sale to be "commercially reasonable" (as such term is used in
Article 9 Part V of the New York Uniform Commercial Code).  To the extent permitted by any such
requirement of law, the Administrative Agent and the Secured Creditors may bid
for and become the purchaser of the Collateral or any item thereof, offered for
sale in accordance with this Section without accountability to Borrower.  If, under mandatory requirements of
applicable law, the Administrative Agent shall be required to make disposition
of the Collateral within a period of time which does not permit the giving of
notice to Borrower as hereinabove specified, the Administrative Agent need give
Borrower only such notice of disposition as shall be reasonably practicable in
view of such mandatory requirements of applicable law.  Borrower agrees to do or cause to be done
all such other acts and things as may be reasonably necessary to make such sale
or sales of all or any portion of the Collateral valid and binding and in
compliance with any and all applicable laws, regulations, orders, writs,
injunctions, decrees or awards of any and all courts, arbitrators or
governmental instrumentalities, domestic or foreign, having jurisdiction over
any such sale or sales, all at Borrower's expense.

4.3             
Waiver of Claims. 
Except as otherwise provided in this Agreement, BORROWER HEREBY WAIVES,
TO THE EXTENT PERMITTED BY APPLICABLE LAW, NOTICE AND JUDICIAL HEARING IN
CONNECTION WITH THE ADMINISTRATIVE AGENT'S TAKING POSSESSION OR THE
ADMINISTRATIVE AGENT'S DISPOSITION OF ANY OF THE COLLATERAL, INCLUDING, WITHOUT
LIMITATION, ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR
REMEDIES AND ANY SUCH RIGHT WHICH BORROWER WOULD OTHERWISE HAVE UNDER THE
CONSTITUTION OR ANY STATUTE OF THE UNITED STATES OR OF ANY STATE, and Borrower
hereby further waives, to the extent permitted by law:

(a)        all damages
occasioned by such taking of possession except any damages which are the direct
result of the Administrative Agent's gross negligence or willful misconduct;

(b)        all other requirements
as to the time, place and terms of sale or other requirements with respect to
the enforcement of the Administrative Agent's rights hereunder; and

(c)        all rights of
redemption, appraisement, valuation, stay, extension or moratorium now or hereafter
in force under any applicable law in order to prevent or delay the enforcement
of this Agreement or the absolute sale of the Collateral or any portion
thereof, and Borrower, for itself and all who may claim under it, insofar as it
or they now or hereafter lawfully may, hereby waives the benefit of all such
laws.

Any sale of, or the grant of options to purchase, or any
other realization upon, any Collateral shall operate to divest all right,
title, interest, claim and demand, either at law or in equity, of Borrower
therein and thereto, and shall be a perpetual bar both at law and in equity
against Borrower and against any and all Persons claiming or attempting to
claim the Collateral so sold, optioned or realized upon, or any part thereof,
from, through and under Borrower.

4.4             
Application of Proceeds.  (a)  All moneys collected
by the Administrative Agent (or, to the extent the Pledge Agreement or any
Mortgage to which Borrower is a party requires proceeds of Collateral under
such agreement to be applied in accordance with the provisions of this
Agreement, the Pledgee or Mortgagee under such other agreement) upon any sale
or other disposition of the Collateral, together with all other moneys received
by the Administrative Agent hereunder, shall be applied as follows:

(i)         first, to the payment of all amounts
owing the Administrative Agent of the type    described
in clauses (iii) and (iv) of the definition of "Obligations";

(ii)        second,
to the extent proceeds remain after the application pursuant to the preceding
clause (i), an amount equal to the outstanding Primary Obligations shall be
paid to the Secured Creditors as provided in Section 4.4(e) hereof, with
each Secured Creditor receiving an amount equal to such outstanding Primary
Obligations or, if the proceeds are insufficient to pay in full all such
Primary Obligations, its Pro Rata Share of the amount remaining to be
distributed;

(iii)       third,
to the extent proceeds remain after the application pursuant to the preceding
clauses (i) and (ii), an amount equal to the outstanding Secondary Obligations
shall be paid to the Secured Creditors as provided in Section 4.4(e),
with each Secured Creditor receiving an amount equal to its outstanding
Secondary Obligations or, if the proceeds are insufficient to pay in full all
such Secondary Obligations, its Pro Rata Share of the amount remaining to be
distributed; and

(iv)       fourth,
to the extent proceeds remain after the application pursuant to the preceding
clauses (i) through (iii), inclusive, and following the termination of this
Agreement pursuant to Section 7.9(a) hereof, to Borrower or to whomever
may be lawfully entitled to receive such surplus.

(b)        For
purposes of this Agreement (i) "Pro Rata Share" shall mean, when
calculating a Secured Creditor's portion of any distribution or amount, that
amount (expressed as a percentage) equal to a fraction the numerator of which
is the then unpaid amount of such Secured Creditor's Primary Obligations or
Secondary Obligations, as the case may be, and the denominator of which is the
then outstanding amount of all Primary Obligations or Secondary Obligations, as
the case may be, (ii) "Primary Obligations" shall mean (A) in
the case of the Credit Agreement Obligations, all principal of, and interest
on, all Loans, all Unpaid Drawings theretofore made (together with all interest
accrued thereon), and the aggregate Stated Amounts of all Letters of Credit
issued (or deemed issued) under the Credit Agreement, and all Fees and (B) in the
case of the Other Obligations, all amounts due under the Interest Rate
Protection or Other Hedging Agreements (other than indemnities, fees
(including, without limitation, attorneys' fees) and similar obligations and
liabilities) and (iii) "Secondary Obligations" shall mean all
Obligations other than Primary Obligations.

(c)        When
payments to Secured Creditors are based upon their respective Pro Rata Shares,
the amounts received by such Secured Creditors hereunder shall be applied (for
purposes of making determinations under this Section 4.4 only) (i)
first, to their Primary Obligations and (ii) second, to their Secondary
Obligations.  If any payment to any
Secured Creditor of its Pro Rata Share of any distribution would result in
overpayment to such Secured Creditor, such excess amount shall instead be
distributed in respect of the unpaid Primary Obligations or Secondary
Obligations, as the case may be, of the other Secured Creditors, with each
Secured Creditor whose Primary Obligations or Secondary Obligations, as the
case may be, have not been paid in full to receive an amount equal to such
excess amount multiplied by a fraction the numerator of which is the unpaid
Primary Obligations or Secondary Obligations, as the case may be, of such
Secured Creditor and the denominator of which is the unpaid Primary Obligations
or Secondary Obligations, as the case may be, of all Secured Creditors entitled
to such distribution.

(d)        Each
of the Secured Creditors agrees and acknowledges that if the Bank Creditors are
to receive a distribution on account of undrawn amounts with respect to Letters
of Credit issued (or deemed issued) under the Credit Agreement (which shall
only occur after all outstanding Loans and Unpaid Drawings with respect to such
Letters of Credit have been paid in full), such amounts shall be paid to the
Agent under the Credit Agreement and held by it, for the equal and ratable
benefit of the Bank Creditors, as cash security for the repayment of
Obligations owing to the Bank Creditors as such.  If any amounts are held as cash security pursuant to the
immediately preceding sentence, then upon the termination of all outstanding
Letters of Credit, and after the application of all such cash security to the
repayment of all Obligations owing to the Bank Creditors after giving effect to
the termination of all such Letters of Credit, if there remains any excess
cash, such excess cash shall be returned by the Agent to the Administrative
Agent for distribution in accordance with Section 4.4(a) hereof.

(e)        Except
as set forth in Section 4.4(d) hereof, all payments required to be made
hereunder shall be made (i) if to the Bank Creditors, to the Agent under the
Credit Agreement for the account of the Bank Creditors, and (ii) if to the
Other Creditors, to the trustee, paying agent or other similar representative
(each a "Representative") for the Other Creditors or, in the
absence of such a Representative, directly to the Other Creditors.

(f)         For
purposes of applying payments received in accordance with this Section 4.4,
the Administrative Agent shall be entitled to rely upon (i) the Agent under the
Credit Agreement and (ii) the Representative for the Other Creditors or, in the
absence of such a Representative, upon the Other Creditors for a determination
(which the Agent, each Representative for any Secured Creditors and the Secured
Creditors agree (or shall agree) to provide upon request of the Administrative
Agent) of the outstanding Primary Obligations and Secondary Obligations owed to
the Bank Creditors or the Other Creditors, as the case may be.  Unless it has actual knowledge (including by
way of written notice from a Bank Creditor or an Other Creditor) to the
contrary, the Agent and each Representative, in furnishing information pursuant
to the preceding sentence, and the Administrative Agent, in acting hereunder,
shall be entitled to assume that no Secondary Obligations are outstanding.  Unless it has actual knowledge (including by
way of written notice from an Other Creditor) to the contrary, the
Administrative Agent, in acting hereunder, shall be entitled to assume that no
Interest Rate Protection or Other Hedging Agreements are in existence.

(g)        It
is understood and agreed that Borrower shall remain jointly and severally
liable to the extent of any deficiency between the amount of the proceeds of
the Collateral hereunder and the aggregate amount of the sums referred to in
clauses (i) through (iii), inclusive, of Section 4.4(a) hereof.

4.5             
Remedies Cumulative.  
Each and every right, power and remedy hereby specifically given to the
Administrative Agent shall be in addition to every other right, power and
remedy specifically given under this Agreement, the Interest Rate Protection or
Other Hedging Agreements, the other Loan Documents or now or hereafter existing
at law or in equity, or by statute and each and every right, power and remedy
whether specifically herein given or otherwise existing may be exercised from
time to time or simultaneously and as often and in such order as may be deemed
expedient by the Administrative Agent.  
All such rights, powers and remedies shall be cumulative and the
exercise or the beginning of the exercise of one shall not be deemed a waiver
of the right to exercise any other or others.  
No delay or omission of the Administrative Agent in the exercise of any
such right, power or remedy and no renewal or extension of any of the
Obligations and no course of dealing between Borrower and the Administrative
Agent or any holder of any of the Obligations shall impair any such right,
power or remedy or shall be construed to be a waiver of any Default or Event of
Default or an acquiescence therein.  No
notice to or demand on Borrower in any case shall entitle it to any other or
further notice or demand in similar or other circumstances or constitute a waiver
of any of the rights of the Administrative Agent to any other or further action
in any circumstances without notice or demand.  
In the event that the Administrative Agent shall bring any suit to
enforce any of its rights hereunder and shall be entitled to judgment, then in
such suit the Administrative Agent may recover reasonable expenses, including
reasonable attorneys' fees, and the amounts thereof shall be included in such
judgment.

4.6             
Discontinuance of Proceedings.  In case the Administrative Agent shall have
instituted any proceeding to enforce any right, power or remedy under this
Agreement by foreclosure, sale, entry or otherwise, and such proceeding shall
have been discontinued or abandoned for any reason or shall have been
determined adversely to the Administrative Agent, then and in every such case
Borrower, the Administrative Agent and each holder of any of the Obligations
shall be restored to their former positions and rights hereunder with respect
to the Collateral subject to the security interest created under this Agreement
(except to the extent of any such adverse determination), and all rights,
remedies and powers of the Administrative Agent shall continue (a) as if no
such proceeding had been instituted, in the case of any such proceeding so
discontinued or abandoned, or (b) as if no proceeding had been instituted,
except to the extent of the determination, in the case of any such proceeding
so adversely determined.

ARTICLE
V

INDEMNITY

5.1             
Indemnity.  (a)  Borrower agrees to
indemnify and hold harmless the Administrative Agent and each Secured Creditor
and their respective successors, assigns, employees, agents and servants
(individually an "Indemnitee," and collectively the "Indemnitees")
from and against any and all claims, demands, losses, judgments and liabilities
(including liabilities for penalties) of whatsoever kind or nature, and to
reimburse each Indemnitee for all costs and expenses, including reasonable
attorneys' fees, growing out of or resulting from this Agreement or the
exercise by any Indemnitee of any right or remedy granted to it hereunder or
under any Interest Rate Hedging Agreement or under any other Loan Document (but
excluding any claims, demands, losses, judgments and liabilities or expenses to
the extent incurred by reason of gross negligence or willful misconduct of such
Indemnitee).  If and to the extent that
the obligations of the Borrower under this Section 5.1(a) are
unenforceable for any reason, the Borrower hereby agrees to make the maximum
contribution to the payment and satisfaction of such obligations which is
permissible under applicable law.

(b)        Without
limiting the application of Section 5.1(a) hereof, Borrower agrees to
pay, or reimburse the Administrative Agent for any and all reasonable fees,
costs and expenses of whatever kind or nature incurred in connection with the
creation, preservation or protection of the Administrative Agent's Liens on,
and security interest in, the Collateral, including, without limitation, all
reasonable fees and taxes in connection with the recording or filing of
instruments and documents in public offices, payment or discharge of any taxes
or Liens upon or in respect of the Collateral, premiums for insurance with
respect to the Collateral and all other reasonable fees, costs and expenses in
connection with protecting, maintaining or preserving the Collateral and the
Administrative Agent's interest therein, whether through judicial proceedings
or otherwise, or in defending or prosecuting any actions, suits or proceedings
arising out of or relating to the Collateral.

(c)        Without
limiting the application of Section 5.1(a) or (b) hereof, Borrower
agrees to pay, indemnify and hold each Indemnitee harmless from and against any
loss, costs, damages and expenses which such Indemnitee may suffer, expend or
incur in consequence of or growing out of any misrepresentation by Borrower in
this Agreement, any Interest Rate Protection or Other Hedging Agreement, any
other Loan Document or in any writing contemplated by or made or delivered
pursuant to or in connection with this Agreement, any Interest Rate Protection
or Other Hedging Agreement or any other Loan Document.

(d)        If
and to the extent that the obligations of Borrower under this Section 5.1
are unenforceable for any reason, Borrower hereby agrees to make the maximum
contribution to the payment and satisfaction of such obligations which is
permissible under applicable law.

5.2             
Indemnity Obligations Secured by Collateral; Survival.  Any amounts paid by any Indemnitee as to
which such Indemnitee has the right to reimbursement shall constitute
Obligations secured by the Collateral prior to the release of the Collateral
pursuant to the terms hereof.  The
indemnity obligations of Borrower contained in this Article V shall
continue in full force and effect notwithstanding the full payment of all the
Notes issued under the Credit Agreement, the termination of all Interest Rate
Protection or Other Hedging Agreements and the payment of all other Obligations
(but excluding any unasserted contingent and indemnification obligations which
survive the termination hereof) and notwithstanding the discharge thereof.

ARTICLE
VI

DEFINITIONS

The following terms shall have the
meanings herein specified.  Such
definitions shall be equally applicable to the singular and plural forms of the
terms defined.

"Account" shall have the
meaning provided in the Uniform Commercial Code.

"Administrative Agent"
shall have the meaning provided in the first paragraph of this Agreement.

"Agent" shall have the
meaning provided in the first WHEREAS clause of this Agreement.

"Agreement" shall mean
this Amended and Restated Security Agreement as the same may be modified,
supplemented, extended, renewed, replaced, restated or amended from time to
time in accordance with its terms.

"Bank Creditor" shall
have the meaning provided in the first paragraph of this Agreement.

"Borrower" shall have
the meaning provided in the first paragraph of this Agreement.

"Chattel Paper" shall have the meaning provided
in the Uniform Commercial Code.

"Class" shall have the meaning
provided in Section 7.2 of this Agreement.

"Collateral" shall have
the meaning provided in Section 1.1(a) of this Agreement.

"Contract Rights" shall
mean all rights of Borrower (including, without limitation, all rights to
payment) under each Contract.

"Contracts" shall mean
all contracts between Borrower and one or more additional parties (including,
without limitation, (i) each partnership agreement to which Borrower is a party
and (ii) any Interest Rate Protection or Other Hedging Agreements), but
excluding licenses, agreements and leases, which are immaterial to the
operations of Borrower, to the extent that the terms thereof prohibit the
assignment of, or granting of a security interest in, such licenses, agreements
or leases.

"Copyrights"
shall mean any United States copyright which Borrower now owns or hereafter
acquires, including any registrations of any Copyrights in the United States
Copyright Office, as well as any application for a United States copyright
registration now or hereafter made with the United States Copyright Office by
Borrower.

"Credit Agreement" shall have the meaning
provided in the first WHEREAS clause of this Agreement.

"Credit Agreement Obligations"
shall have the meaning provided in the definition of "Obligations" in
this Article VI.

"Default" shall mean any
event which, with notice or lapse of time, or both, would constitute an Event
of Default.

"Deposit Accounts" shall
have the meaning provided in the Uniform Commercial Code.

"Documents" shall have the
meaning provided in the Uniform Commercial Code.

"Equipment" shall mean
any "equipment," as such term is defined in the Uniform Commercial
Code, now or hereafter owned by Borrower.

"Event of Default" shall
mean any Event of Default under, and as defined in, the Credit Agreement and
shall in any event, without limitation, include any payment default on any of
the Obligations after the expiration of any applicable grace period.

"General Intangibles"
shall have the meaning provided in the Uniform Commercial Code.

"Goods" shall have the
meaning provided in the Uniform Commercial Code.

"Indemnitee" shall have the meaning provided in Section
5.1 of this Agreement.

"Instrument" shall have
the meaning provided in Article 9 of the Uniform Commercial Code.

"Interest Rate Protection or
Other Hedging Agreements" shall have the meaning provided in the first
paragraph of this Agreement.

"Inventory" shall mean
all "inventory" as such term is defined in the Uniform Commercial
Code, now or hereafter owned by Borrower.

"Investment Property"
shall have the meaning ascribed thereto in Article 9 of the UCC.

"LC Creditor" shall have
the meaning provided in the first WHEREAS clause of this Agreement.

"Lenders" shall have the
meaning provided in the first WHEREAS clause of this Agreement.

"Letter-of-Credit Rights"
shall have the meaning provided in the Uniform Commercial Code.

"Marks" shall mean all
right, title and interest in and to any trademarks and service marks and trade
names now held or hereafter acquired by Borrower, which are registered in the
United States Patent and Trademark Office or in any similar office or agency of
the United States or any state thereof or any political subdivision thereof and
any application for such trademarks and service marks, as well as any unregistered
marks used by Borrower in the United States and trade dress including logos,
designs, trade names, company names, business names, fictitious business names
and other business identifiers in connection with which any of these registered
or unregistered marks are used in the United States, but excluding all
intent-to-use trademark applications for which an application to allege use
under 15 U.S.C. §1051(c) and/or for which a statement of use under 15 U.S.C.
§1051(d) has not been filed, which applications are identified in Annex D
(III).

"Obligations" shall mean (i) the full and prompt
payment when due (whether at the stated maturity, by acceleration or otherwise)
of all obligations (including, without limitation, all "Obligations"
as such term is defined in the Credit Agreement and all obligations which, but
for the automatic stay under Section 362(a) of the Bankruptcy Code,
would become due) and liabilities of Borrower now existing or hereafter
incurred under, arising out of or in connection with the Credit Agreement or
any other Loan Document to which Borrower is a Party and the due performance
and compliance by Borrower with all of the terms, conditions and agreements
contained in each such Loan Document (all such obligations and liabilities being
herein collectively called the "Credit Agreement Obligations");
(ii) the full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of all obligations (including obligations which, but
for the automatic stay under Section 362(a) of the Bankruptcy Code,
would become due) and liabilities of Borrower now existing or hereafter
incurred under, arising out of or in connection with (x) any Interest Rate
Protection or Other Hedging Agreement, whether such Interest Rate Protection or
Other Hedging Agreement is now in existence or hereafter arising and the due
performance and compliance by Borrower with all of the terms, conditions and
agreements contained therein and (y) the US Bank Letter of Credit Facility up
to a maximum amount of $2,000,000 (provided that at no time shall there be more
than $2,000,000 under the US Bank Letter of Credit Facility secured by the
Security Documents) (all such obligations and liabilities described in this
clause (ii) being herein collectively called the "Other Obligations");
(iii) any and all sums advanced by the Administrative Agent in order to
preserve the Collateral or preserve its security interest in the Collateral;
(iv) in the event of any proceeding for the collection or enforcement of
any indebtedness, obligations, or liabilities of Borrower referred to in
clauses (i) and (ii), after an Event of Default shall have occurred and be
continuing, the reasonable expenses of taking, holding, preparing for sale or
lease, selling or otherwise disposing of or realizing on the Collateral, or of
any exercise by the Administrative Agent of its rights hereunder, together with
reasonable attorneys' fees and court costs; and (v) all amounts paid by any
Indemnitee as to which such Indemnitee has the right to reimbursement under Section
6.1 of this Agreement.  It is
acknowledged and agreed that the "Obligations" shall include
extensions of credit of the types described above, whether outstanding on the
date of this Agreement or extended from time to time after the date of this
Agreement.

"Other Creditors" shall
have the meaning provided in the first paragraph of this Agreement.

"Other Obligations"
shall have the meaning provided in the definition of "Obligations" in
this Article VI.

"Patents" shall mean any
United States patent now or hereafter owned by Borrower, as well as any
application for a United States patent now or hereafter owned by Borrower, but
excluding patents and applications for patents that Borrower is prohibited by
written contract from assigning or granting a security interest in.

"Permitted Filings" shall mean any filing or
similar item that was a matter of public record on October 12, 2001, with
respect to Collateral secured by the Original Security Agreement, or on the
date hereof, with respect to any other Collateral.

"Primary Obligations"
shall have the meaning provided in Section 4.4(b) of this Agreement.

"Pro Rata Share" shall
have the meaning provided in Section 4.4(b) of this Agreement.

"Proceeds" shall have the
meaning provided in the Uniform Commercial Code.

"Representative" shall have the meaning provided
in Section 5.4(e) of this Agreement.

"Required Secured Creditors"
shall mean (i) the Required Lenders (or, to the extent required by Article
XI of the Credit Agreement, all of the Lenders) under the Credit Agreement
so long as any Credit Agreement Obligations remain outstanding and (ii) in
any situation not covered by preceding clause (i), the holders of a majority of
the outstanding principal amount of the Other Obligations.

"Requisite Creditors"
shall have the meaning provided in Section 7.2 of this Agreement.

"Secondary Obligations"
shall have the meaning provided in Section 4.4(b) of this Agreement.

"Secured Creditors"
shall have the meaning provided in the first paragraph of this Agreement.

"Termination Date" shall have the meaning
provided in Section 7.9 of this Agreement.

"Trade Secrets" shall
mean any know-how, technology, product formulations, procedures and product and
manufacturing specifications or standards now or hereafter utilized by Borrower
in Borrower's business.

"Uniform Commercial Code"
or "UCC" shall mean the Uniform Commercial Code as now or hereafter
in effect from time to time in the State of New York or any other applicable
jurisdiction.

"US Bank Letter of Credit
Facility" means that certain revolving letter of credit facility in
effect on the date hereof pursuant to that certain Continuing Reimbursement
Agreement for Commercial Letters of Credit, dated as of July 14, 2000 by and
among the LC Creditor and the Borrower providing for commercial letters of
credit; provided, however, that at no time shall there be more
than a maximum amount of $2,000,000 under the US Bank Letter of Credit Facility
secured by the Security Documents. 

ARTICLE
VII

MISCELLANEOUS

7.1&nb3p;            
Notices.  All
such notices and communications hereunder shall be sent or delivered in
accordance with the terms of the Credit Agreement.

7.2             
Waiver; Amendment.  
None of the terms and conditions of this Agreement may be changed,
waived, modified or varied in any manner whatsoever unless in writing duly
signed by Borrower and the Administrative Agent (with the written consent of
the Required Lenders, or to the extent required by Section 11.1 of the
Credit Agreement, all the Lenders); provided, however, that any
change, waiver, modification or variance affecting the rights and benefits of a
single Class of Secured Creditors (and not all Secured Creditors in a like or
similar manner) shall require the written consent of the Requisite Creditors of
such affected Class.  For the purpose of
this Agreement, the term "Class" shall mean each class of
Secured Creditors, i.e., whether (i) the Bank Creditors as holders
of the Credit Agreement Obligations or (ii) the Other Creditors as the holders
of the Other Obligations; and the term "Requisite Creditors"
of any Class shall mean each of (A) with respect to the Credit Agreement
Obligations, the Required Lenders and (B) with respect to the Other
Obligations, the holders of at least a majority of all obligations outstanding
from time to time under the Interest Rate Protection Agreements or Other
Hedging Agreements.

7.3             
Obligations Absolute.  
The obligations of Borrower hereunder shall remain in full force and
effect without regard to, and shall not be impaired by, (a) any bankruptcy,
insolvency, reorganization, arrangement, readjustment, composition, liquidation
or the like of Borrower; (b) any exercise or non-exercise, or any waiver of,
any right, remedy, power or privilege under or in respect of this Agreement,
any other Loan Document or any Interest Rate Protection or Other Hedging
Agreement except as specifically set forth in a waiver granted pursuant to Section
7.2 hereof; or (c) any amendment to or modification of any Loan Document or
any Interest Rate Protection or Other Hedging Agreement or any security for any
of the Obligations; whether or not Borrower shall have notice or knowledge of
any of the foregoing.

7.4             
Successors and Assigns.  This Agreement shall be binding upon the parties hereto and their
respective successors and assigns and shall inure to the benefit of the
Administrative Agent, each Secured Creditor and Borrower and their respective
successors and assigns, provided that Borrower may not transfer or assign any
or all of its rights or obligations hereunder without the written consent of
the Required Secured Creditors.  All
agreements, statements, representations and warranties made by Borrower herein
or in any certificate or other instrument delivered by Borrower or on its
behalf under this Agreement shall be considered to have been relied upon by the
Secured Creditors and shall survive the execution and delivery of this
Agreement, the other Loan Documents and the Interest Rate Protection or Other
Hedging Agreements regardless of any investigation made by the Secured
Creditors or on their behalf.

7.5             
Headings Descriptive.  
The headings of the several sections of this Agreement are inserted for
convenience only and shall not in any way affect the meaning or construction of
any provision of this Agreement.

7.6             
Severability.  
Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

7.7             
GOVERNING LAW.  
THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF
THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS AND DECISIONS OF SAID STATE, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.

7.8             
Borrower's Duties.  
It is expressly agreed, anything herein contained to the contrary
notwithstanding, that Borrower shall remain liable to perform all of the
obligations, if any, assumed by it with respect to the Collateral and the
Administrative Agent shall not have any obligations or liabilities with respect
to any Collateral by reason of or arising out of this Agreement, nor shall the
Administrative Agent be required or obligated in any manner to perform or
fulfill any of the obligations of Borrower under or with respect to any
Collateral.

7.9             
Termination; Release.  
(a)  After the Termination Date, this Agreement shall
automatically terminate (provided that all indemnities set forth herein
including, without limitation, in Section 5.1 hereof shall survive such
termination) and the Administrative Agent, at the request and expense of
Borrower, will execute and deliver to Borrower a proper instrument or
instruments (including Uniform Commercial Code termination statements on form
UCC-3) acknowledging the satisfaction and termination of this Agreement, and
will duly assign, transfer and deliver to Borrower (without recourse and
without any representation or warranty) such of the Collateral of Borrower and
as has not theretofore been sold or otherwise applied or released pursuant to
this Agreement.  As used in this
Agreement, "Termination Date" shall mean the date upon which
all Interest Rate Protection or Other Hedging Agreements have been terminated,
no Note under the Credit Agreement is outstanding (and all Loans have been
repaid in full), all Letters of Credit have been terminated and all Obligations
(as defined in the Credit Agreement) then outstanding (other than any
indemnities described in Section 5.1 hereof and in Section 11.4
of the Credit Agreement with respect to which no claim has been asserted) have
been paid in full in cash.

(b)        In
the event that any part of the Collateral is sold or otherwise disposed of in
connection with a sale or other disposition permitted by Section 8.7 of
the Credit Agreement or is otherwise released at the direction of the Required
Lenders (or all the Lenders if required by Section 11.1 of the Credit
Agreement) and the proceeds of such sale or sales or from such release are
applied in accordance with the provisions of Section 4.4 of the Credit
Agreement, to the extent required to be so applied, such Collateral will be
sold free and clear of the Liens created by this Agreement and the
Administrative Agent, at the request and expense of Borrower, will duly assign,
transfer and deliver to Borrower (without recourse and without any
representation or warranty) such of the Collateral as is then being (or has
been) so sold or released and has not theretofore been released pursuant to
this Agreement.  The Administrative
Agent shall also be entitled to and is hereby authorized and directed to duly
assign, transfer and deliver such of the Collateral as provided in Section
11.20(b) of the Credit Agreement.

(c)        At
any time that Borrower desires that the Administrative Agent take any action to
acknowledge or give effect to any release of Collateral pursuant to the
foregoing Section 7.9(a) or (b), as the case may be, it shall deliver to
the Administrative Agent a certificate signed by an Authorized Officer stating
that the release of the respective Collateral is permitted pursuant to Section
7.9(a) or (b), as the case may be.

(d)        The
Administrative Agent shall have no liability whatsoever to any Secured Creditor
as a result of any release of Collateral by it in accordance with this Section
7.9.

7.10         
Counterparts.  This Agreement may be executed
in any number of counterparts and by the different parties hereto on separate
counterparts, each of which when so executed and delivered shall be an
original, but all of which shall together constitute one and the same
instrument.  A set of counterparts
executed by all the parties hereto shall be lodged with Borrower and the
Administrative Agent.

7.11         
The Administrative Agent.  The Administrative Agent will hold in accordance with this
Agreement all items of the Collateral at any time received under this
Agreement.  It is expressly understood
and agreed by the parties hereto and each Secured Creditor, by accepting the
benefits of this Agreement, acknowledges and agrees that the obligations of the
Administrative Agent as holder of the Collateral and interests therein and with
respect to the disposition thereof, and otherwise under this Agreement, are
only those expressly set forth in this Agreement and as provided in the Uniform
Commercial Code in the State of New York.  
The Administrative Agent shall act hereunder on the terms and conditions
set forth in Article IX and Section 11.18 of the Credit
Agreement.

7.12         
US Bank.  (a) US
Bank as LC Creditor under the US Bank Letter of Credit Facility and in its
capacity as a Secured Party hereunder hereby irrevocably designates and
appoints Bankers Trust Company as Administrative Agent under this Agreement and
irrevocably authorizes Bankers Trust Company to act as its Administrative Agent
and to take such action on its behalf under the provisions of this Agreement
and to exercise such powers and perform such duties as are expressly delegated
to the Administrative Agent under this Agreement and the Loan Documents,
together with such other powers as are reasonably incidental thereto.  Notwithstanding any provision to the
contrary in this Agreement, the Administrative Agent shall not have any duties
or responsibilities with respect to US Bank in its capacity LC Creditor under
the US Bank Letter of Credit Facility or any fiduciary relationship with US
Bank, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or otherwise exist
against the Administrative Agent.

            (b)        For avoidance of doubt, US Bank
expressly acknowledges that all rights and remedies of the Administrative Agent
hereunder shall be exercised by the Administrative Agent in accordance with the
applicable provisions of the Credit Agreement, and no consent of, or notice to,
US Bank shall be required with respect thereto and US Bank shall not undertake
any separate action with respect to the Collateral.  The sole right of US Bank hereunder shall be to receive its
proportionate share of any proceeds received by the Administrative Agent
hereunder in accordance with the terms hereof.

7.13         
Amended and Restated.  
This Agreement amends and restates the Original Security Agreement and
is not in satisfaction of payment of any obligations thereunder and does not
constitute a novation of the Original Security Agreement but rather shall
relate back to the time of the Original Security Agreement for the purposes of
filing and perfection.

ARTICLE VIII

SPECIAL
PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS

8.1             
Additional Representations and Warranties.  As of the time when each of its Accounts
arises, Borrower shall be deemed to have represented and warranted that such
Account, and all records, papers and documents of Borrower relating thereto (if
any) are genuine and in all material respects what they purport to be, and that
all papers and documents of Borrower (if any) relating thereto to the best knowledge
of Borrower (i) will represent the genuine, legal, valid and binding
obligation of the account debtor evidencing indebtedness unpaid and owed by the
respective account debtor arising out of the performance of labor or services
or the sale or lease and delivery of the merchandise listed therein, or both,
(ii) will be the only original writings of Borrower evidencing and
embodying such obligation of the account debtor named therein (other than
copies created for general accounting purposes), (iii) will evidence true and
valid obligations, enforceable in accordance with their respective terms
subject to applicable bankruptcy, insolvency, reorganization, moratorium and
general principles of equityand
(iv) will be in material compliance and will conform in all material
respects with all applicable federal, state and local laws and applicable laws
of any relevant foreign jurisdiction.

8.2             
Maintenance of Records.  Borrower will keep and maintain at its own cost and expense
accurate and complete records of its Accounts and Contracts, including, but not
limited to, records of all payments received, all credits granted thereon, all
merchandise returned and all other dealings therewith, and Borrower will make
the same available on Borrower's premises to the Administrative Agent for
inspection, at Borrower's own cost and expense (not to exceed reasonable costs
and expenses), at any and all reasonable times upon prior notice to an
Responsible Officer of Borrower.  At the
request of the Administrative Agent and upon the occurrence and during the
continuance of an Event of Default, Borrower shall, at its own cost and
expense, deliver all tangible evidence of its Accounts and Contract Rights
(including, without limitation, all documents evidencing the Accounts and all Contracts)
and such books and records to the Administrative Agent or to its
representatives (copies of which evidence and books and records may be retained
by Borrower).  Upon the occurrence and
during the continuance of an Event of Default, if the Administrative Agent so
directs, Borrower shall legend, in form and manner reasonably satisfactory to
the Administrative Agent, the Accounts and the Contracts, as well as books,
records and documents of Borrower evidencing or pertaining to such Accounts and
Contracts with an appropriate reference to the fact that the Administrative
Agent and that the Administrative Agent has a security interest therein.

8.3             
Modification of Terms; etc.  Borrower shall not rescind or cancel any indebtedness evidenced
by any Account or under any Contract, or modify any term relating to such
indebtedness or make any adjustment with respect thereto, or extend or renew
the same, or compromise or settle any material dispute, claim, suit or legal
proceeding relating thereto, or sell any Account or Contract, or interest
therein, without the prior written consent of the Administrative Agent (not to
be unreasonably withheld or delayed), except as permitted by Section 8.4
hereof or the Credit Agreement.  
Borrower will duly fulfill in all material respects all obligations on
its part to be fulfilled under or in connection with the Accounts and Contracts
and will do nothing to impair the rights of the Administrative Agent in the
Accounts or Contracts.

8.4             
Collection.  
Borrower shall endeavor to cause to be collected from the account debtor
named in each of its Accounts or obligor under any Contract, as and when due
(including, without limitation, amounts which are delinquent, such amounts to
be collected in accordance with sound business judgement) any and all amounts
owing under or on account of such Account or Contract, and apply
forthwith upon receipt thereof all such amounts as are so collected to the
outstanding balance of such Account or under such Contract, except that, unless
an Event of Default has occurred and is continuing, Borrower may allow in the
ordinary course of business as adjustments to amounts owing under its Accounts
and Contracts (i) an extension or renewal of the time or times of payment,
or settlement for less than the total unpaid balance, which Borrower finds
appropriate in accordance with sound business judgment and (ii) a refund
or credit due as a result of returned or damaged merchandise or improperly
performed services or for other reasons which Borrower finds appropriate in accordance
with sound business judgment.  The
reasonable costs and expenses (including, without limitation, reasonable
attorneys' fees) of collection, whether incurred by Borrower or the
Administrative Agent, shall be borne by Borrower.

8.5             
Instruments.  If
Borrower owns or acquires any Instrument constituting Collateral, Borrower will
within 15 days notify the Administrative Agent thereof, and upon request by the
Administrative Agent will promptly deliver such Instrument to the
Administrative Agent appropriately endorsed to the order of the Administrative
Agent as further security hereunder.

8.6             
Further Actions.  
Borrower will, at its own expense, make, execute, endorse, acknowledge,
file and/or deliver to the Administrative Agent from time to time such vouchers,
invoices, schedules, confirmatory assignments, conveyances, financing
statements, transfer endorsements, powers of attorney, certificates, reports
and other assurances or instruments and take such further steps relating to its
Accounts, Contracts, Instruments and other property or rights covered by the
security interest hereby granted, as the Administrative Agent may reasonably
require.

ARTICLE IX

SPECIAL
PROVISIONS CONCERNING MARKS

9.1             
Additional Representations and Warranties.  Borrower represents and warrants that it is
the true and lawful exclusive owner of or otherwise has the right to use the
Marks listed in Annex D(I) and D(II) hereto for Borrower and that
said listed Marks include all the United States federal trademark registrations
or applications registered in the United States Patent and Trademark
Office.  Borrower represents and
warrants that it owns or is licensed to use or is not prohibited from using all
Marks that it uses.  Borrower further
warrants that, except as set forth in Annex D(IV), it is aware of no
third party claim that any aspect of Borrower's present or contemplated
business operations infringes or will infringe any Mark.  Borrower represents and warrants that it is
the owner of record of or otherwise has the right to use all United States
registrations and applications listed in Annex D(I) and D(II)
hereto and that said registrations are valid, subsisting, have not been
canceled and that, except as set forth in Annex D(IV), Borrower is not
aware of any third-party claim that any of said registrations is invalid or
unenforceable.  Borrower hereby grants
to the Administrative Agent an absolute power of attorney to sign, upon the
occurrence and during the continuance of an Event of Default, any document
which may be required by the United States Patent and Trademark Office in order
to effect an absolute assignment of all right, title and interest in each Mark
and associated goodwill, and record the same.

9.2             
Licenses and Assignments.  Other than the license agreements listed on Annex E hereto
and any extensions or renewals thereof, Borrower hereby agrees not to divest
itself of any right under any Mark absent prior written approval of the
Administrative Agent (which shall not be unreasonably withheld or delayed),
except that Borrower may license any of its rights in such a Mark in the
ordinary course of business provided that such license does not
materially interfere with the business of Borrower.

9.3             
Infringements.  
Borrower agrees, promptly upon learning thereof, to notify the Administrative
Agent in writing of the name and address of, and to furnish such pertinent
information that may be available with respect to (except for any privileged
communication), any party who may be infringing or otherwise violating any of
Borrower's rights in and to any Mark to the extent that Borrower reasonably
believes that such infringement or violation is material to its business, or
with respect to any party claiming that Borrower's use of any Mark violates any
property right of that party.  Borrower
further agrees, if consistent with good business practice and unless otherwise
agreed by the Administrative Agent, to diligently prosecute any Person
infringing any Mark to the extent that Borrower reasonably believes that such
infringement is material to its business.

9.4             
Preservation of Marks.  
Borrower agrees to use its Marks in interstate commerce during the time
in which this Agreement is in effect, sufficiently to preserve such Marks as
trademarks or service marks registered under the laws of the United States;
provided that, to the extent permitted by the Credit Agreement, Borrower shall
not be obligated to preserve any Mark in the event Borrower determines, in its
reasonable business judgment, that the preservation of such Mark is no longer
desirable in the conduct of its business.

9.5             
Maintenance of Registration.  Borrower shall, at its own expense, diligently process all
documents required by the Trademark Act of 1946, 15 U.S.C. §§ 1051 et
seq. to maintain trademark registrations, including but not limited to
affidavits of use and applications for renewals of registration in the United
States Patent and Trademark Office for all of its Marks pursuant to 15 U.S.C.
§§ 1058(a), 1059 and 1065, and shall pay all fees and disbursements in
connection therewith and shall not abandon any such filing of affidavit of use
or any such application of renewal prior to the exhaustion of all reasonable
administrative and judicial remedies without prior written consent of the
Administrative Agent (which consent will not be unreasonably withheld or
delayed) except if, in its reasonable business judgment, such action is no
longer desirable in the conduct of its business.

9.6             
Future Registered Marks.  If any Mark registration issues hereafter to Borrower as a result
of any application now or hereafter pending before the United States Patent and
Trademark Office, within 60 days of receipt of such certificate, Borrower shall
deliver to the Administrative Agent a copy of such certificate, and a grant of
security in such Mark to the Administrative Agent, confirming the grant thereof
hereunder, the form of such confirmatory grant to be substantially the same as
the form hereof.

9.7             
Remedies.  If an
Event of Default shall occur and be continuing, the Administrative Agent may,
by written notice to Borrower, take any or all of the following actions:  (i) declare the entire right, title and
interest of Borrower in and to each of its Marks together with the goodwill of
the business associated therewith, together with all trademark rights and rights
of protection to the same, vested in the Administrative Agent for the benefit
of the Secured Creditors, in which event such rights, title and interest shall
immediately vest, in the Administrative Agent for the benefit of the Secured
Creditors, in which case the Administrative Agent shall be entitled to exercise
the power of attorney referred to in Section 9.1 to execute, cause to be
acknowledged and notarized and record said absolute assignment with the
applicable agency; (ii) take and use or sell the Marks together with the
goodwill of Borrower's business symbolized by the Marks and the right to carry
on the business and use the assets of Borrower in connection with which the
Marks have been used; and (iii) direct Borrower to refrain, in which event
Borrower shall refrain, from using the Marks in any manner whatsoever, directly
or indirectly, and, if requested by the Administrative Agent, change Borrower's
corporate name to eliminate therefrom any use of any Mark and execute such
other and further documents that the Administrative Agent may request to
further confirm this and to transfer ownership of the Marks and any
registrations and any trademark application in the United States Patent and
Trademark Office or any equivalent government agency or office in any foreign
jurisdiction to the Administrative Agent.

ARTICLE X

SPECIAL
PROVISIONS CONCERNING PATENTS AND COPYRIGHTS AND TRADE SECRETS

10.1         
Additional Representations and Warranties.  Borrower represents and warrants that it is
the true and lawful exclusive owner of or otherwise has the right to use (i)
all material Trade Secrets necessary to operate the business of Borrower, (ii)
the Patents listed in Annex F hereto for Borrower and (iii) the
Copyrights listed in Annex G hereto for Borrower, that to the best of its
knowledge said Patents include all the United States patents and applications
for United States patents that Borrower now owns or otherwise has the right to
use (except for any patent that Borrower does not have the right to assign or
grant a security interest in) and that said Copyrights constitute all the
United States copyrights registered with the United States Copyright Office and
applications for United States copyrights that Borrower now owns or otherwise
has the right to use and that in each case are necessary in the conduct of the
business of Borrower.  Borrower
represents and warrants that it owns or is licensed to practice under all
Patents and Copyrights that it now uses or practices under.  Borrower further warrants that, except as
set forth in Schedule F(I), it is aware of no third party claim that any
aspect of Borrower's present or contemplated business operations infringes or
will infringe any patent or any copyright or Borrower has misappropriated any
Trade Secrets or proprietary information.  
Borrower hereby grants to the Administrative Agent an absolute power of
attorney to sign, upon the occurrence and during the continuance of any Event
of Default, any document which may be required by the United States Patent and
Trademark Office or the United States Copyright Office in order to effect an
absolute assignment of all right, title and interest in each Patent and
Copyright, and record the same.

10.2         
Licenses and Assignments.  Other than the license agreements listed on Annex E hereto
and any extensions or renewals thereof, Borrower hereby agrees not to divest
itself of any right under any Patent or Copyright absent prior written approval
of the Administrative Agent except that Borrower may license any of its rights
to such Patent or Copyright in the ordinary course of business provided that
such license does not materially interfere with the business of Borrower or any
Subsidiary consistent with past practices or as is consistent with its existing
licensing strategy.

10.3         
Infringements.  
Borrower agrees, promptly upon learning thereof, to furnish the
Administrative Agent in writing with all pertinent information (except for any
privileged information) available to Borrower with respect to any infringement
or other violation of Borrower's rights in and to any Patent or Copyright to
the extent that Borrower reasonably believes that such infringement or
violation is material to its business, or with respect to any claim that
practice of any Patent or Copyright violates any property right of a third party,
or with respect to any misappropriation of any Trade Secret by Borrower or any
claim that Borrower's practice of any Trade Secret violates any property right
of a third party.  Borrower further
agrees, consistent with good business practice and absent direction of the
Administrative Agent to the contrary, diligently to prosecute any Person
infringing any Patent or Copyright or any Person misappropriating any of such
Borrower's Trade Secrets to the extent that Borrower reasonably believes that
such infringement or misappropriation is material to its business.

10.4         
Maintenance of Patents.  At its own expense, Borrower shall make timely payment of all
post-issuance fees required pursuant to 35 U.S.C. § 41 to maintain in force
rights under each Patent except if, in its reasonable business judgment, such
maintenance of such Patent is no longer desirable in the conduct of its
business.

10.5         
Prosecution of Patent Application.  At its own expense, Borrower shall
diligently prosecute all applications for Patents listed in Annex F
hereto for Borrower and shall not abandon any such application prior to
exhaustion of all reasonable administrative and judicial remedies, absent
written consent of the Administrative Agent; provided, however,
that to the extent permitted by the Credit Agreement, Borrower shall not be
obligated to prosecute any application in the event Borrower determines, in its
reasonable business judgment, that the prosecuting of such application is no
longer necessary or desirable in the conduct of its business.

10.6         
Other Patents and Copyrights.  Within 60 days of its acquisition of a Patent or Copyright, or of
its filing of an application for a Patent or Copyright, Borrower shall deliver
to the Administrative Agent a copy of said Patent or Copyright or such
application, as the case may be, with a grant of security as to such Patent or
Copyright, as the case may be, confirming the grant thereof hereunder, the form
of such confirmatory grant to be substantially the same as the form hereof.

10.7         
Remedies.  If an
Event of Default shall occur and be continuing, the Administrative Agent may by
written notice to Borrower, take any or all of the following actions:  (i) declare the entire right, title, and
interest of Borrower in each of the Patents and Copyrights vested in the
Administrative Agent for the benefit of the Secured Creditors, in which event
such right, title, and interest shall immediately vest in the Administrative
Agent for the benefit of the Secured Creditors, in which case the
Administrative Agent shall be entitled to exercise the power of attorney
referred to in Section 10.1 hereof to execute, cause to be acknowledged
and notarized and record said absolute assignment with the applicable agency;
(ii) take and practice or sell the Patents and Copyrights; and (iii) direct
Borrower to refrain, in which event Borrower shall refrain, from practicing the
Patents and using the Copyrights directly or indirectly, and Borrower shall
execute such other and further documents as the Administrative Agent may
request further to confirm this and to transfer ownership of the Patents and
Copyrights to the Administrative Agent for the benefit of the Secured
Creditors.

 

 

 

[Signature Page Follows]

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

BMC INDUSTRIES,
INC.,

as
Borrower

By:  /s/ Bradley D. Carlson

Name:  Bradley D. Carlson

Title:  Treasurer

 

DEUTSCHE
BANK TRUST COMPANY AMERICAS (formerly named Bankers Trust Company),

as Administrative Agent

By:  /s/ Mary Jo Jolly

Name:  Mary Jo Jolly

Title:  Assistant Vice President

 

U.S.
BANK NATIONAL ASSOCIATION

By:  /s/ Nicholas G. Myers

Name:  Nicholas G. Myers

Title:  Assistant Vice President

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