Document:

Exhibit 10.18

 

SOFTWARE LICENSING AGREEMENT    

 

This Software Licensing Agreement (“Agreement”) made and entered into on 9th August 2005 

(“Effective Date”)  and between:

 

CENEGA PUBLISHING, s.r.o. (“LICENSOR”), having its principal place of business

at Naskové 3,150 00 PRAGUE 5, Czech Republic

 

and

 

2WG, LLC.,   (“LICENSEE”), having its principal place at 4975 Preston Park Blvd. #775

Plano, TX  75093,Texas, USA

 

RECITALS

 

	
            (A)
 	
            LICENSOR designs, originates, and publishes computer software games.
 	
             

	
            (B)
 	
            LICENSEE is in the business of designing, publishing and distributing interactive software products.
 

	
            (C)
 	
            LICENSOR has agreed to grant to LICENSEE the right to distribute and sell the Product(s) as hereinafter defined in APPENDICES in the Territory on the terms and conditions hereinafter contained and LICENSEE desires to receive these rights from LICENSOR.
 

 

NOW THEREFORE, the parties hereto agree as follows :

 

 

	
            Article 1.
 	
            Definitions
 

 

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

 

	
            1.1
 	
            “ Effective Date “ ,  “LICENSOR “ , and  “LICENSEE “ shall be used herein as defined above.
 

 

	
            1.2
 	
            “ Agreement “ means this document including its Appendices or /and Amendments.
 

 

	
            1.3
 	
            “ Original Product “ means the full retail product developed in English.
 

 

	
            1.4
 	
            “ Product “ or “ Product(s) “ means the Original Product with a master, manual, CD label and retail packaging localised by LICENSEE into the Language indicated in Appendices  and for which LICENSEE is authorized as per the Agreement to publish and/or distribute.
 

 

	
            1.5
 	
            “ Language “ means the language mentioned in Appendices into which LICENSEE is authorized to publish and/or distribute the Original Product.
 

 

	
            1.6
 	
            “ Territory “ means countries in which the rights subject of the Agreement are granted to LICENSEE as set forth in Appendices.
 

 

	
            1.7
 	
            “ Licensed platforms “ mean the platforms  defined in Appendices.
 

 

 

 

 

 

	
            1.8
 	
            “ Alternate platforms “ mean the additional platforms  than these defined in Appendices to this Agreement and for which LICENSOR have or will have the rights (by way of illistration and not of limitation, Alternate platforms shall include X-box, X-box 360, Nintendo GameCube, Nintnedo Revolution, Sony Playstation 2, Sony Playstation 3, Sony PSP Nintendo Gameboy SP, Nintendo Gameboy DS, Palm Pilot and other PDAs, wireless platforms and any other successor products)
 

 

	
            1.9
 	
            “ Term “ means the duration of the Agreement as defined in Appendices.
 

 

	
            1.10
 	
            “Trademarks “ mean all trademarks as used by LICENSOR on or in relation to the Product at any time during the Term of this Agreement.
 

 

	
            1.11
 	
            “ Intellectual Property Rights “ mean any and all intellectual property rights, including without limitation, all copyrights, patents,trademarks, know how, trade secrets and other proprietary rights.
 

 

	
            1.12
 	
            “ Localisation kit “ means files, English assets (in game texts, on screen texts,read me files etc..) necessary for the localisation of the Product or the in-game content.
 

 

	
            1.13
 	
            “ Localisation artwork materials “ means files necessary for the localisation of the product (s) of the user ́s manual, packaging and CD label.
 

 

	
            1.14
 	
            “Materials “ means both Localisation Kit and Localisation artwork materials.
 

 

	
            1.15
 	
            “Master or Gold Master “ means the media (i.e. CD-Rom, tape or other form of support) which hold the final version of the Original Product suitable for reproduction.
 

 

	
            1.16
 	
            “Sell-off Period “ means that LICENSOR allows LICENSEE to continue to sell products ,non-exclusively, to the retail during One-Hundred and eighty (180) days after the termination or expiration of this Agreement. 
 

 

	
            1.17
 	
            "Samples For Licensor” means finished localised Products (As indicated in the Appendices) given free of charge by LICENSEE to LICENSOR .The quantity should not exceed 50 units for each product.
 

 

	
            1.18
 	
                             “Add-Ons” means sequel ,datadisk or expansion pack related to the Product and for which LICENSOR has obtained rights .
 

 

	
            1.19
 	
            "Net Revenue” is defined as payments for all Product units that are actually received by LICENSEE less Cost of Goods Sold. For purposes of this Agreement, “Cost of Goods Sold” means direct manufacturing costs, and other costs and fulfillment and royalties payable to third parties such as Sony, Nintendo or Microsoft, not to exceed $3.00 for PC products, $12.00 for video game consoles and actual manufacturing costs (including royalties, if any, payable to third party console manufacturers) for all other platforms.
 

 

	
            1.20
 	
            “Alpha Build” means version of the Product specified in Apendix B
 

 

	
            1.21
 	
            “Beta Build” means means version of the Product specified in Apendix B
 

 

	
            1.22
 	
            “Release Candidate “ means version of the Product specified in Apendix B
 

 

	
            1.23
 	
            "ETA” shall mean Expected ime of Arrival release date.
 

 

	
            1.24
 	
            "Milestone” means version of the Product as specified in the Appendix B of this Agreement (B=by way of illustration and not of limitation of milesotnes shall include Alpha Build, Beta Build, Release Candidate, Gold Master.
 
	
            1.25
 	
            "Acceptance Criteria” means criteria that neds to be fulfilled to approve individual Milestone(s). Acceptance Criteria foir individual Milestones are Specified in Appendix B.
 

 

 

 

 

	
            Article 2.
 	
            Grant Of License Rights
 

 

	
            2.1
 	
            LICENSOR shall grant to LICENSEE the exclusive right to use, advertise, promote, produce, reproduce, translate, localise, merchendise sell and distribute the Product(s) in the Territory for the retail stand-alone version on the Licensed Platform (s).Such right shall include the right to use all patents, designs, trademarks, copyrights and other intellectual property associated with the Product, solely for such manufacture, sale and distribution on the Licensed Platform in the Territory during the Term and under the terms and conditions of the Agreement. The authorized channels are mentioned in Appendices. All other distribution channels are reserved by the LICENSOR.
 

 

	
            2.2
 	
            All other rights (OEM, bundle, broadband...etc..) are expressely reserved by LICENSOR.Neverthless, LICENSEE is a sole representative in regard of any deals of bundles or OEM but shall obtain expressly LICENSOR ́s prior written approval upon such deals. In this event, both parties will discuss and settle in good faith appropriate financial terms and conditions. 
 

 

	
            2.3
 	
            For the avoidance of doubt nothing in this Agreement shall be interpreted so as to grant to the LICENSEE the right to use the Product(s) in any way except as expressly permitted by this Agreement and all rights not expressly licensed to the LICENSEE pursuant to this Agreement are reserved to the LICENSOR absolutely.
 

 

	
            2.4
 	
            LICENSEE shall have to the sole and exclusive right to publish the Product on all platforms (“Alternate Platforms”) other than the Platform. By way of illustration and not of limitation, Alternate Platforms shall include, X-box, X-box 360, Nintendo GameCube, Nintendo Revolution, Sony PlayStation2, Sony Playstation 3, Sony PSP, Nintendo Gameboy SP, Nintendo Gameboy DS, Palm Pilot and other PDAs, wireless platforms and any other successor products.
 

 

	
            2.5
 	
            LICENSEE shall have a right of first refusal and last refusal rights (matching rights for all offers made and received) to publish any prequel or sequel to the Product. LICENSEE shall send first proposal for prequel or sequel no later than 45 days after rlease date of the Product in the Territory. The terms of such rights shall be negotiated in good faith.
 

 

	
            Article 3.
 	
            Financial Terms
 

 

	
            3.1
 	
            In consideration of the rights granted under Article 2, LICENSEE undertakes to pay to LICENSOR a royalty which amount is indicated in Appendices (hereinafter reffered to as the “Royalties Advance”).
 

The Royalties Advance is non-refundable whatever the number of units of  Product is sold or manufactured by LICENSEE.The Royalties Advance applied as credit before LICENSEE is obligated to make additional royalties payments to LICENSOR. 

 

	
            3.2
 	
            Invoicing and related payments shall be made in the currency designated in Appendices. Payment shall be made by wire transfer to the LICENSOR ́s bank. All required bank information and details will be supplied on each respective invoice.
 

 

	
            3.3
 	
            Any amount payable under this Agreement remaining unpaid after the due date may bear interest at a rate of 1,25% per month from the date such amount is due until the date of actual payment.
 

 

	
            3.4
 	
            LICENSEE shall pay the amount invoiced , free and clear of any taxes , other duties and any bank charges except for those charges incurred by LICENSOR’s bank for wire services.
 

 

	
            3.5
 	
            In case of outstanding amounts owed by LICENSEE during the Term and/or during the notice period before termination or expiration of the Agreement, LICENSOR reserves the right to implement new payment terms, such as secured payment or payment in advance, which will apply to any new authorized manufactured quantities.
 

 

	
            3.6
 	
            LICENSOR may reserve the right to set up and update, pursuant to documents provided by a credit insurance company, a credit limit attached to Licensee’s account. In the event of an excess of such credit 
 

 

 

 

limit and not before 5 (five) days following the day on which Licensor is informed of such excess, Licensor would be free without prejudice to terminate the Agreement in case of late payments or documents showing indications of Licensee’s unsound financial situation, except if Licensee immediately upon Licensor’s written notice pays all sums outstanding, including any interests applicable. In the event Licensor would choose not to terminate the Agreement, any new Licensee’s request to manufacture leading to an excess of such credit limit would be accepted subject to a payment upon Licensor’s prior written authorization and prior manufacturing.

 

	
            3.8
 	
            AUDIT. LICENSOR shall have the right to audit the LICENSEE’s financial statements and records which relate solely to the matters dealt with by this Agreement within normal office hours and with a written notice of at least 30 days annually by independent financial auditors at LICENSOR’s own cost provided that if any such audit shows any underpayment has been made by LICENSEE in excess of 5% of the amounts due to LICENSOR in respect thereof LICENSEE shall be liable for such costs as LICENSOR has reasonably incurred in respect of the audit. Books can be audited maximum two years backwards. Further, LICENSOR agrees to conduct such an audit only twice in any 12 month period.
 

 

	
            Article 4.
 	
            Licensee’s Obligation
 

 

	
            4.1
 	
            LICENSEE hereby warrants that throughout the Term it shall:
 

 

Act in LICENSOR’s best interests as its reseller of the Product(s) in the Territory and use its best 

endeavours market the Products to customers and prospective customers in the Territory (both before and after the launch thereof in the Territory) with all due care and diligence and maximise sales of the Product(s) in the Territory. 

 

Conform with all legislation, rules, regulations and statutory requirements existing in the Territory from time to time in relation to the Products and the performance of its obligations under this Agreement (including, without limitation, obtaining at its own cost all applicable licences, permits and approvals and paying all applicable customs, duties and taxes in respect of the importation of the Products into and their resale in the Territory).

 

	
            4.2
 	
            LICENSEE has to warrant that LICENSOR will receive Manufacturing reports directly from the 3rd
 

party manufacturer for the Product(s) as specified in Appendices.

 

	
            4.3
 	
            Encryption . LICENSEE shall manufacture all CDs or DVDs for the Product(s) as set out in Appendices according to acceptable industry standards. As it manufactures the Products, LICENSEE undertakes to encrypt the units manufactured of the Products at its own costs and risks in order to provide each copy with an efficient protection against piracy, according to LICENSOR’s requirements. 
 

 

	
            4.4
 	
            LICENSEE shall promptly and fully notify the LICENSOR against any grey market and software piracy  that is identified in the Territory in order to protect the LICENSOR’s property. 
 

 

	
            4.5
 	
            LICENSEE undertakes to provide LICENSOR with a monthly Statements according to the  Reporting Process defined in Appendices for three months after commercial release of the Product in the Territory, after this initial period LICENSEE undertskes to provide LICENSOR with quarterly Sales Statement according to the Reporting Process defined in the Appendices, with regard to the distribution of  the Product(s), which LICENSEE will submit to the LICENSOR by the 15th of the month following the end of each quarter. 
 

 

	
            4.6
 	
            LICENSEE undertakes to provide LICENSOR with a quarterly Royalty Report with regard to the distribution of  the Product(s), which LICENSEE will submit to the LICENSOR by the 15th of the following month after end of each quarter. Each Royalty payment hereunder shall be accompanied by a statement in United States dollars, in accordance with LICENSEE’s regular accounting practices. Royalty statements shall include, without limitation, the number of units sold through, Net Revenues resulting from such sales, Cost of Goods Sold and a listing of all deductions and offsets from royalties, whether due to recoupment or otherwise.
 

 

 

 

 

 

	
            4.7
 	
            LICENSOR shall provide to LICENSEE a complete design document outlining the major features, functions and design of the game.
 

 

	
            4.8
 	
            LICENSOR shall devliver to LICENSEE each milestone as set out in Appendices, for approval by LICENSEE. LICNESEE will have Ten (10) business days to examine and test such Unapproved Milstone to determine in its sole discretion whether it conforms in all material respects to the design document provided by LICENSOR, and in the case of the Gold Master, whether it is complete and free from material error. On or before the Tenth day after delivery, LICENSEE will notify LICENSOR in writing of LICENSEE’s acceptance or rejection of the Unapproved Deliverable. In the event LICENSEE fails to provide LICENSOR with such written notification within Ten (10) days of the date of delivery of an Unapproved Deliverable, LICENSEE shall be deemed to have approved such Unapproved Deliverable. In the event of a rejection, LICENSOR will use its best efforts to correct the
deficiencies (including, without limitation, any material bugs and deficiencies that affect game play and/or compatibility) and will resubmit such Unapproved Deliverable, as corrected, as soon as reasonably practicable following LICENSEE’s rejection. LICENSEE will either accept or reject the corrected Unapproved Deliverables based upon the Acceptance Criteria. This procedure will continue until LICENSEE either (i) accepts the Unapproved Deliverable or (ii) elects to terminate this Agreement for material breach. 
 

 

 

	
            Article 5.
 	
            Localisation
 

 

 

	
            5.1
 	
            LICENSOR shall send Gold Master Candidate for testing to LICENSEE for final approval.
 

The final approved version with the Gold Master is the version of the Product to be used to manufacture and publish in the Territory.

 

	
            5.2
 	
            LICENSOR shall also provide the Localisation Artwork materials in English language to the LICENSEE. LICENSEE is responsible for the DTP and manufacturing of packaging, manual and CD label in the Language. The final version of localised manual is LICENSEE ́s responsibility. LICENSEE will provide LICENSOR with localised packaging, manual cover and CD label for approval.
 

 

	
            5.3
 	
            LICENSEE acknowledges and agrees that the LICENSOR is the owner of the Localized materials such as localized content (translation or/and recordings), packaging and printed manuals for the Licensed Products. LICENSEE recognizes and accepts that such translation and/or recordings shall not be used by LICENSEE without LICENSOR ́s approval. 
 

 

 

	
            Article 6.
 	
            Marketing
 

 

 

	
            6.1
 	
            LICENSEE shall prepare a Marketing Plan for each Product(s) to be released in the Territory. LICENSEE shall provide Marlketing Plan to LICENSEOR.
 

                 

	
            6.2
 	
            LICENSEE shall use its reasonable commercial efforts to market the Product(s).
 

 

	
            6.3 
 	
            LICENSEE shall pay all marketing costs and shall receive prior written approval on the activities for each Marketing campaign  in the Territory from LICENSOR. LICENSEE shall be responsible for all PR. 
 

 

	
            6.4 
 	
            LICENSEE guarantees to spend minimum percentage of its revenues in marketing of each Product, as specified in Appendices.
 

 

	
            6.5
 	
            Copyright and Trademark Notices. LICENSEE shall display the copyright and trademark notices as provided by LICENSOR on all advertising for the Product(s) and other related materials.
 

 

	
            6.6
 	
            LICENSOR’s Approval Rights . LICENSEE shall be required to submit to LICENSOR, and LICENSOR shall have the right to review and approve (at its sole discretion) prior to manufacture in production, quantities and prior to dissemination, all creative,marketing and promotional materials for the 
 

 

 

 

Product(s). Licensor will have Seven (7) business days to approve or disaaprove such creative,marketing and promotional materials for the Product(s). On or before the Seventh day after delivery, LICENSOR will notify LICENSEE in writing of LICENSORs’s acceptance or rejection of the Unapproved creative,marketing and promotional materials. In the event LICENSOR fails to provide LICENSEE with such notifiation within Seven (7) days of the date of delivery of an unapproved  creative,marketing and promotional materials, LICENSEE shall be deemed to have approved such unapproved creative,marketing and promotional materials. In the event of rejection, LICENSEE will use its best efforts to correct the deficiencies. LICENSEE further agrees to furnish to LICENSOR for its prior approval as to acceptable standards of quality samples of the following :

	
            a)
 	
            LICENSEE ́s use of Trademarks, copyrights and credits in connection with the Product(s) in the Territory; and
 

All creative, promotional and publicity materials for the Product(s

 

	
            6.7
 	
            Marketing and PR Package. On the fiftenth (15th) day of each quarter ending during the Term, LICENSEE shall provide to LICENSOR a monthly  marketing package for the Territory that includes samples of advertisements, reviews, press clippings, promotions, photos of store window displays, videos, and all other printed marketing materials featuring LICENSOR ́s Product(s), report of the marketing spent per Product, and summary from LICENSEE’s public relations department (or its outside public relations agency) outlining all public relations activities involving LICENSORs Products. LICENSEE agrees to cooperate with LICENSOR ́s public relations department in connection with any public relations activities undertaken by LICENSOR in the Territory. 
 

 

6.8        LICENSEE shall be entitled to distribute or have distributed two hundred and fifty (250) Product units on a promotional basis without payment of any Royalty therefore. Of such promotional units, LICENSOR shall be entitled to fifty (50) units. 

 

	
            Article 7.
 	
            Quality Control Of The Product
 

 

The quallity of the Product’s maunal, CD and packaging which includes Trademarks shall be in full conformance with applicable laws and regulations.

 

	
            Article 8.
 	
            Quantities Manufactured
 

 

8.1        LICENSEE is entitled to have the units of the Product (s) manufactured by a third party  (the “Manufacturer”) as its own costs and risks.

 

Manufactured units. Each time LICENSEE wants to manufacture quantities of the Product ,LICENSEE shall inform LICENSOR in writting about number of units manufactured.

 

 

	
            Article 9.
 	
            Indication of the right
 

 

LICENSEE undertakes to affix upon all Materials including but not limited to advertising of the Product(s) the name and logo of the LICENSOR in the same size of those of LICENSEE, and that the Product (s) is based on the rights granted hereby to LICENSEE. Other logos to appear on the packaging materials and/or any advertising materials, are defined in Appendices. LICENSEE will include LICENSOR copyright, trademark and other proprietary notices in the Products, as necessary to preserve the rights of the LICENSOR and other owners of rights such as developers of each Product(s) in the Territory and any other mention (s) requested by LICENSOR as reasonably requested by LICENSOR. LICENSEE shall have to request in writing and obtain LICENSOR’s prior written approval to such material’s use. 

 

All Trademarks, service marks, trade names, logos or other words or symbols identifying the Product(s) (“the Trade Marks”) and LICENSOR business (“the Trade Names”) are and will remain the exclusive property of LICENSOR whether or not specifically recognized or perfected under the laws of the Territory. LICENSEE will not make any registration using LICENSOR name or mark. 

 

LICENSEE acknowledges that all property rights included in the Products and any materials in relation thereto or in 

 

 

relation to this Agreement provided by LICENSOR but without limitation including all Intellectual Property Rights are the sole ownership of Licensor and Licensee further acknowledges that no rights of such nature are granted to Licensee under this Agreement. All translation of the Licensed Products and any intellectual properties with respect to the Licensed Products, such as localized content, packaging and printed manuals for the Licensed Products,  made by LICENSEE or by LICENSEE together with LICENSOR shall be automatically assigned to LICENSOR and remain sole property of LICENSOR.

 

In any event, LICENSEE shall remove from, or obscure upon any Product(s), any LICENSOR’s labels, mentions, reference or note without the prior consent of LICENSOR.

LICENSEE undertakes to protect LICENSOR’s trademark(s) and any other trademark(s) belonging to or use by LICENSOR in the Territory.

LICENSEE undertakes, immediately upon the expiration or earlier termination of the Agreement, to discontinue all and any use of such trademarks and of any trademark bearing a graphic or phonetic resemblance thereto.

 

 

	
            Article 10.
 	
            Licensee ́s other obligations and prohibitions
 

 

LICENSEE undertakes to LICENSOR:

 

(a)         to use commercially reasonable efforts to create, meet and expand the market for the Product (s) and in this connection to supply, promote and publicize the Product (s)

(b)         not to promote, directly or indirectly, the sale of the Product (s) outside the Territory, nor to seek customers outside the Territoryor establish a branch or maintain a distribution depot for Product (s) outside the Territory.

	
            For this propose , LICENSEE undertakes :
 	
             

	
            - not to knowingly sell any Product (s) to third parties for distribution outside the Territory;
 

- to insert in agreements concluded with sub-licencees (if any) provisions preventing distribution of the Product(s) outside the Territory; and

	
            (c)
 	
            not to manufacture, sell or distribute Products on any platform other than the Licensed platform ;
 

(d) not to modify, reverse engineer or decompile the Products ;

(e)to provide end users with technical support for all Product(s) (as hereinafter described in Article 11 distributed in the Territory, such support being provided in the same conditions and quality as the support provided by LICENSEE for its own products, and ;

to pay any sales, use, exercise, import or export, value added or similar tax or duty, including penalty interests and all governmental permit licenses, customs or other arising upon the delivery and/or distribution of the Product(s) under this Agreement (The “Taxes). LICENSEE shall make no deduction from any amount to LICENSOR for any Taxes [except as set forth in Appendices of this Agreement]. LICENSEE agrees to provide LICENSOR with appropriate information and/or documentation satisfactory to the applicable taxing authorities to substantiate any claim of exemption from any Taxes.

 

	
            Article 11.
 	
            Technical Assistance
 

 

LICENSOR shall, upon request from the LICENSEE, use reasonable efforts to reply to LICENSEE ́s questions in connection with the Product (s) and give reasonable technical assistance to LICENSEE.

 

LICENSEE shall set up and maintain at its own expense and in the Language a web suppport accesable throughout the Territory in order to provide the necessary assistance for proper use of Localized Peoducts(s) to users thereof. 

LICENSOR shall, For a period of one (1) year after first commercial sale of the Product, continue to fix any bugs that materially affect the Product or game play.

 

 

	
            Article 12.
 	
            Infringement
 

 

In the event that either party hereto discovers that a third party infrignes the rights granted hereunder, the party shall give notice to the other party within ten (10) days after the discovery and the party shall discuss the countermeasures etc. that are necessary. Each   party hereto shall be entitled to have the right to file and lawsuit at such party ́s absolute discretion.

 

 

 

 

Licencee shall also notify LICENSOR in writing of any claim made or proceeding initiated against LICENSOR or LICENSEE involving the Product(s) within five (5) days after LICENSEE is informed of such claim or proceeding.

 

	
            Article 13.
 	
            Compilance With Law
 

 

LICENSEE represents and warrants that :

 

	
            a)
 	
            LICENSEE shall comply with all applicable, local and national laws and regulations; and
 
	
            b)
 	
            The Agreement and all of its terms are in full compliance with such laws; and
 	
             

	
            c)
 	
            It shall not act in any fashion or take any action, which will render LICENSOR, its parents, subsidiaries or affiliates, liable for violation of such laws.
 

 

 

	
            Article 14.
 	
            Confidentiality
 

 

14.1. Each party hereto shall not disclose the confidential information received from the other party in connection herewith without the other party’s prior written approval.

 

14.2. The following information shall not be included in the confidential information :

 

	
            (a) 
 	
            information which at the time of disclosure is in the public domain or after disclosure becomes part of the public domain on account of reason not attributable to the receiving party ;
 
	
            (b) 
 	
            the information which at the time of disclosure is possessed by the receiving party , or after disclosure is legally acquired from a third party who has the right to disclose the information ; and 
 
	
            (c) 
 	
            the information, which is developed by the receiving party independently of the disclosure by the disclosing party.
 
			

 

 

 

	
            Article 15.
 	
            Termination Of The Agreement
 

 

	
            15.1
 	
            Either party may terminate this Agreement by written notice to the other party in the event that the other party fails to comply with any material term of this agreement and such breach shall not be corrected within  thirty (30) days after written notice is given by the terminating party complaining of such breach by the other party. For the avoidance of doubt, any failure by the LICENSEE to pay the LICENSOR any sum due under this Agreement or breach of the Article 4.2, 4.6 would be a material breach of this Agreement. Moreover, cure of a breach under this agreement will not discharge any claims for damages by the non-breaching party or parties. If there are conditions for terminating of this Agreement according to this clause, LICENSOR may at its own discretion ex parte cancel an exclusivity of this Agreement by written notice. For the avoidance of doubt LICENSOR
may cancel an exclusivity without termination of this Agreement.
 

 

	
            15.2
 	
            Either Party may immediately terminate the agreement in writing where one or more of the following occur :
 

 

	
            (a)
 	
            appointment of a trustee or receiver for all or any of the assets of the other party ;
 
	
            (b)
 	
            insolvency or bankruptcy of the other party ;
 	
             

	
            (c)
 	
            assignment of the other party for the benefit of creditor ;
 	
             

	
            (d)
 	
            attachment of the assets of the other party ;
 	
             

	
            (e)
 	
            expropriation of substantially all of the assets of the other party ; or
 	
             

	
            (f)
 	
            dissolution or liquidation of the other party.
 	
             

							

 

If either party is involved in any event enumerated in paragraph (a) through paragraph (f) above, such party shall notify the other immediately, in writing via registered mail, of the occurrence of such event.

 

 

 

 

	
            Article 16.
 	
            EFFECT OF TERMINATION
 

 

Upon termination by LICENSOR for LICENSEE’s failure, all outstanding invoices will become immediately due and payable.

 

LICENSEE will be authorized to distribute ,non-exclusively, under the terms, conditions and restrictions of the Agreement, for up to one-hundred and eighty (180) days (“Sell-off Period) after such termination or expiration, all units of Product(s) in LICENSEE’s inventory at the date of termination or expiration.  I have to be able to liquidate at my discretion. I don’t mind giving Cenega the first option to buy the product to protect the price point.

 

Rights recovered

Immediately upon termination or expiration, rights granted herein will cease except to the extent necessary for LICENSEE to sell-off its inventory as permitted hereinabove.

 

Materials

Immediately upon termination or expiration, LICENSEE undertakes to send back the Materials and/or Master and undertakes not to keep any copy of them.

 

 

	
            Article 17.
 	
            INDEMNIFICATION
 

 

In the event that one party hereto causes damages to the other party on account of the party violation hereof, the party shall indemnify the other party for such damage.

 

	
            Article 18.
 	
            MISCELLANEOUS
 

 

	
            18.1
 	
            Force Majeure
 

 

	
            18.1.1
 	
            In the event that any of the Parties is affected by any circumstances beyond the reasonable control of such Party, hereinafter referred to as “force majeure” as more fully defined by the applicable  law, it shall forthwith notify the other Party of the nature and extent of the force majeure. 
 
	
            18.1.2
 	
            No Party shall be deemed to be in breach of this Agreement or otherwise liable to any other Party by reason of any delay in performance or non-performance of any of its obligations hereunder to the extent that such delay in performance or non-performance is due to any force majeure of which it has notified the other Parties and the time for performance of that obligation shall be extended accordingly.
 

In the event that force majeure prevails for a continuous period in excess of ten (10) days from the notification date pursuant to this Article, then the Parties shall enter into good faith discussions with a view to alleviating its effects, or to agreeing upon such alternative arrangements as may be fair and reasonable.

18.1.3   LICENSEE realizes that Product(s) are still in development process and LICENSOR shall inform LICENSEE in writing if at any time prior to the Release Date of any of the Product(s) LICENSOR is made incapable of delivering any of the Product(s) in accordance with the terms of this Agreement for a reason which is wholly out of its control (such as but not limited to the cancellation or late performance of development of any of the Product(s) by their developers). In such circumstances the Parties shall be entitled to treat this Agreement as frustrated in respect of each or any of the Product(s)s concerned and no payment due related to such a cancelled Product(s) under the terms of this Agreement will be required to be paid by either of the Parties to the other except for the repayment of all Royalties Advance already paid by LICENSEE to LICENSOR in accordance with the
point 3.1.of this Agreement. In the event the Product is cancelled, LICENSOR shall repay all royalty advances within 15 days of notification and or cancellation of the Product.

	
            18.2
 	
            Assignment
 

 

This Agreement shall be binding and shall inure to the benefit of the parties hereto and their permitted assigns, except that neither this Agreement nor Licensee’s rights or obligations hereunder shall be assigned or transferred by Licensee without the prior consent of Licensor and any attempted assignment without such consent shall be 

 

 

void ab initio and of no force and effect; provided, however, that no consent shall be necessary from Licensor in the event of an assignment to a successor entity resulting from a merger, acquisition or consolidation by Licensee or assignment to an entity under common Control with, Controlled by or in Control of Licensee. “Control” means any person or entity that, directly or indirectly, (i) owns more than  50% of the outstanding voting securities or equity interest in an other entity.

 

 

	
            18.3
 	
            Notices
 

 

All notices, requests, demands and other communications made in connection herewith shall be in writing and delivered in person or sent by fax or by certified or registered mail, postage prepaid and shall be deemed to have duly given on the date of delivery, if delivered to the persons identified below, or one (1) day after the faxing if faxed or ten (10) days after the mailing was sent if mailed, addressed as follows :

 

 

	
            (a)
 	
            If to Licensor:
 

CENEGA PUBLISHING

 

Naskové 3

150 00 Prague 5

Czech Republic

Attention: Mr. Martin Valkovic

Fax: +420 2 57210384

 

 

	
            (b)
 	
            If to Licensee :
 

 

 

2WG, LLC

4975 Preston Park Blvd. #775

Plano, 

TX  75093,

Texas, USA

 

Attention: Mr.Robert Westmoreland

Fax: 

 

 

	
            18.4
 	
            Governing Law and Governing Language
 

 

This Agreement is governed by the applicable laws of the State of Texas.

This Agreement shall be signed in English language. 

 

 

	
            18.5
 	
            Entire Agreement
 

 

This Agreement shall constitute the entire and sole agreement between the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements or understandings relating hereto, and may not be changed, modified or altered without the written consent of both parties.

 

 

	
            18.6
 	
            ETA Release
 

LICENSOR will make all reasonable steps to ensure ETA release date simultaneously with intenational launch of the titles.

 

 

 

 

 

	
            18.7
 	
            Signature
 

 

 

IN WITNESS WHEREOF, each of the Parties hereto has caused this Agreement to be executed in duplicate by its duly authorized officers or representatives as of the date first above written.

 

 

	
            Signed on behalf :
 	
            Signed on behalf :
 
	
            LICENSOR:
 	
            LICENSEE :
 	
             

 

 

 

 

	
            ------/s/ Martin Valkovi -----
 	
            -----/s/ Robert Westmoreland-----
 

 

	
            Signature
 	
            Signature
 

 

 

 

	
            Name:Martin Valkovi
 	
            Name :  Robert Westmoreland
 
	
            Position:Executive Head
 	
            Position : CEO
 	
             

 

 

 

 

 

 

 

 

 

 

 

APPENDIX  A

 

 

THE PRODUCT (S) :

 

 

	
            PRODUCT (S) 
 	
            PLATFORM
 	
            LANGUAGE
 	
            PACK AND MANUAL

LANGUAGE
 	
            IN GAME TEXTS

LANGUAGE
 	
            IN GAME VOICES, LANGUAGE
 
	
            EL MATADOR
 	
            PC CD
 	
            ENGLISH
 	
            ENGLISH
 	
            ENGLISH
 	
            ENGLISH
 

 

 

TERRITORY :

 

North America

 

DISTRIBUTION CHANNELS :

 

Traditional Retail Channels, OEM,bundle exclusively

Broadband,digital distribution non-exclusively

 

TERM:

 

This Agreement shall be effective for a term of five (5) years  from the Effective Date hereof, and should automatically expire thereafter. If both parties agree on conditions for extending the Term , new Appendix will be signed.

 

MINIMUM MARKETING EXPENDITURE :

 

10%

 

 

 

 

PAYMENT TERMS AND CONDITIONS:

 

ROYALTIES ADVANCE:

 

	
            PRODUCT(S)
 	
            PLATFORM
 	
            Quantities Committed
 	
            Royalty
 	
            Non refundable advance USD
 
	
            EL MATADOR
 	
            PC CD
 	
             
 	
            0% from Net Revenue
 	
            0  
 
	
            Total in USD of a non refundable advance
 	
             
 	
             
 	
             
 	
            $               0
 

 

 

Payment 

 

	
            0USD Payment at  signature of the Agreement
 	
             

	
            0USD Payment at acceptance of Alpha Build  
 	
             

	
            0USD Payment at acceptance of Beta Build  
 	
             

	
            0USD Payment at acceptance of Release Candidate Build
 
	
            0USD Payment at acceptance of Gold Master Candidate
 	
             

					

 

 

Payment after Royalty advance is paid

 

100% of the value reported as per the Royalty report Royalties earned hereunder will be accrued quarterly and paid in United States dollars within thirty (30) days following the last day of January, April, July and October.

 

REPORTING PROCESS 

 

Sales Report

 

	
            Period 
 	
            Territory
 	
            Product
 	
            Platform
 	
            Units sold into retail
 	
            Units returned 
 	
            Units Sold through
 	
            Release Date
 	
            Total units sold since release
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 

 

 

Manufacturing Report

 

 

	
            Period 
 	
            Territory
 	
            Product
 	
            Platform
 	
            Release Date
 	
            Units Manufactured
 	
            Total units manufactured since release
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 

 

 

Stock Report

 

	
            Date
 	
            Territory
 	
            Product
 	
            Platform
 	
            Release Date
 	
            Units on stock 
 	
            Estimated units in retail
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 

 

 

ENCRYPTION :

Starforce

 

 

 

 

COPYRIGHTS :

 

EL MATADOR

© 2005 CENEGA PUBLISHING.

Other produicts and company names mentioned herein maybe trademarks of their respective owners. Developed by Plastic Reality Technologies. All rights reserved.NTK Holdings Bridge Loan Agreement

    
      	
              BRIDGE
                LOAN AGREEMENT

               

              Dated
                as of May 10, 2006

               

              among

               

              NTK
                HOLDINGS, INC.,

               

               

              The
                Lenders Party Hereto,

               

              and

               

              GOLDMAN
                SACHS CREDIT PARTNERS L.P.,

              as
                Administrative Agent

               

              ___________________________

               

               

              GOLDMAN
                SACHS CREDIT PARTNERS L.P. 

               

              and

               

              CREDIT
                SUISSE SECURITIES (USA) LLC,

              as
                Joint Lead Arrangers and Joint Bookrunners,

               

              CREDIT
                SUISSE SECURITIES (USA) LLC,

              as
                Syndication Agent,

               

              and

               

              BANC
                OF AMERICA BRIDGE LLC and

              UBS
                SECURITIES LLC,

              as
                Co-Documentation Agents

               

            

    

    [CS&M
      Ref. No. 5865-444]

    

    ARTICLE
      I

    Definitions
      and Accounting Terms

     

    1.01 Defined
      Terms

    1.02 Other
      Interpretive Provisions

    1.03 Accounting
      Terms

    1.04 References
      to Laws

    1.05 Times
      of
      Day

    1.06 Timing
      of
      Payment or Performance

     

    ARTICLE
      II

    Loans

     

    2.01 Commitments

    2.02 Procedure
      for Borrowing

    2.03 Maturity;
      Extended Loans; Exchange Notes

    2.04 Optional
      and Mandatory Prepayments

    2.05 Repayment
      of Loans

    2.06 Interest
      and Fees

    2.07 Computation
      of Interest and Fees

    2.08 Evidence
      of Indebtedness

    2.09 Payments
      Generally

    2.10 Sharing
      of Payments

    2.11 Change
      of
      Control Offer

    2.12 Asset
      Sale Offer

     

    ARTICLE
      III

    Taxes
      and
      Increased Costs Protection

     

    3.01 Taxes

    3.02 Increased
      Cost and Reduced Return; Capital Adequacy

    3.03 Certain
      Losses

    3.04 Matters
      Applicable to All Requests for Compensation

    3.05 Replacement
      of Lenders Under Certain Circumstances

    3.06 Survival

     

    ARTICLE
      IV

    Conditions
      Precedent To Effectiveness and to Making of the Initial Loans

     

    4.01 Conditions
      to Effectiveness

     

    ARTICLE
      V

    Representations
      and Warranties

     

    5.01 Disclosure

    5.02 Capitalization,
      Organization, Powers and Authorization

    5.03 Government
      Authorization; Other Consents

    5.04 No
      Conflicts

    5.05 Financial
      Statements

    5.06 Independent
      Registered Accounting Firm

    5.07 Litigation

    5.08 Intellectual
      Property; Licenses, Etc

    5.09 No
      Material Adverse Effect

    5.10 Taxes

    5.11 Margin
      Regulations

    5.12 Ownership
      of Properties

    5.13 No
      Omissions

    5.14 Environmental
      Compliance

    5.15 Labor
      Matters

    5.16 Insurance

    5.17 ERISA

    5.18 Internal
      Controls

    5.19 Investment
      Company Act

    5.20 FCPA

    5.21 Sarbanes-Oxley

     

    ARTICLE
      VI

    Covenants

     

    6.01 Corporate
      Existence

    6.02 Payment
      of Taxes and Other Claims

    6.03 Maintenance
      of Properties and Insurance

    6.04 Compliance
      Certificate; Notice of Default

    6.05 Waiver
      of
      Stay or Extension Laws

    6.06 Incurrence
      of Indebtedness and Issuance of Preferred Stock.

    6.07 Limitation
      on Restricted Payments

    6.08 Limitation
      on Liens

    6.09 Asset
      Sales

    6.10 Limitation
      on Transactions with Affiliates

    6.11 Dividend
      and Other Payment Restrictions Affecting Restricted Subsidiaries

    6.12 Future
      Guarantors

    6.13 Reports.

    6.14 Designation
      of Restricted and Unrestricted Subsidiaries

    6.15 Business
      Activities

    6.16 Merger,
      Consolidation, or Sale of Assets

    6.17 Exchange
      Notes

     

    ARTICLE
      VII

    Default
      and Remedies

     

    7.01 Events
      of
      Default

    7.02 Acceleration

    7.03 Other
      Remedies

    7.04 Waiver
      of
      Defaults

    7.05 Control
      by Majority

    7.06 Limitation
      on Suits

    7.07 Rights
      of
      Lenders To Receive Payment

    7.08 Collection
      Suit by Administrative Agent

    7.09 Priorities

    7.10 Undertaking
      for Costs

     

    ARTICLE
      VIII

    Administrative
      Agent

     

    8.01 Appointment
      and Authorization of Administrative Agent

    8.02 Delegation
      of Duties

    8.03 Liability
      of Administrative Agent

    8.04 Reliance
      by Administrative Agent

    8.05 Notice
      of
      Default

    8.06 Credit
      Decision; Disclosure of Information by the Administrative Agent

    8.07 Indemnification
      of the Administrative Agent

    8.08 Administrative
      Agent in its Individual Capacity

    8.09 Successor
      Administrative Agent

    8.10 Administrative
      Agent May File Proofs of Claim

    8.11 Other
      Agents; Arrangers and Bookrunners

     

    ARTICLE
      IX

    Miscellaneous

     

    9.01 Amendments,
      Etc

    9.02 Notices
      and Other Communications; Facsimile Copies

    9.03 No
      Waiver; Cumulative Remedies

    9.04 Attorney
      Costs, Expenses and Taxes

    9.05 Indemnification
      by the Borrower

    9.06 Payments
      Set Aside

    9.07 Successors
      and Assigns

    9.08 Confidentiality

    9.09 Setoff

    9.10 Interest
      Rate Limitation

    9.11 Counterparts

    9.12 Integration

    9.13 Survival
      of Representations and Warranties

    9.14 Severability

    9.15 Tax
      Forms

    9.16 Governing
      Law

    9.17 Waiver
      of
      Right to Trial by Jury

    9.18 Binding
      Effect

    9.19 USA
      PATRIOT Act Notice

     

    SCHEDULES

     

    2.01    Commitments

    5.02(a-1)    Capitalization

    5.02(a-2)    Capital
      Stock

    5.02(a-3)    Restrictions
      on Capital Stock

    5.02(a-4)    Subsidiaries

    9.02   Administrative
      Agent’s Office; Certain Addresses for Notices

     

    EXHIBIT
      A Form
      of
      Exchange Request

    EXHIBIT
      B Form
      of
      Interest Payment Election

    

    

    BRIDGE
      LOAN AGREEMENT dated as of May 10, 2006 (this “Agreement”),
      among
      NTK HOLDINGS, INC., a Delaware corporation (the “Borrower”),
      the
      Lenders (as defined in Article I), and GOLDMAN SACHS CREDIT PARTNERS
      L.P., as administrative agent (in such capacity, the “Administrative
      Agent”)
      for
      the Lenders.

     

    The
      Borrower has requested the Lenders to make Initial Loans (such term and each
      other capitalized term used but not defined in this introductory statement
      having the meaning given to it in Article I) on the Closing Date, in an
      aggregate principal amount of $205.0 million, the proceeds of which,
      together with cash on-hand of Nortek, will be used by the Borrower to
      (a) make a distribution in respect of all outstanding Class A
      membership interests of Investors LLC and a portion of the outstanding Class
      B
      membership interests of Investors LLC in an aggregate amount of approximately
      $174.9 million, (b) cause Nortek Holdings, Inc. to make a payment to
      participants under the Holdings Deferred Compensation Plan in an aggregate
      amount of approximately $54.0 million and (c) pay related fees and
      expenses (the transactions described in clauses (a) through (c) being
      collectively referred to herein as the “Bridge
      Loan Transactions”).

     

    The
      Lenders are willing to extend such credit to the Borrower on the terms and
      subject to the conditions set forth herein. Accordingly, the parties hereto
      agree as follows:

     

    ARTICLE
      I

     

    DEFINITIONS
      AND ACCOUNTING TERMS

     

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

     

    “Acquired
      Debt”
means,
      with respect to any specified Person: (1) Indebtedness of any other Person
      existing at the time such other Person is merged with or into or became a
      Subsidiary of such specified Person, whether or not such Indebtedness is
      incurred in connection with, or in contemplation of, such other Person merging
      with or into, or becoming a Subsidiary of, such specified Person; and
      (2) Indebtedness secured by a Lien encumbering any asset acquired by such
      specified Person.

     

    “Adjusted
      LIBO Rate”
means,
      for any Interest Period, an interest rate per annum equal to the product of
      (a) the LIBO Rate in effect for such Interest Period and (b) Statutory
      Reserves.

     

    “Administrative
      Agent”
means
      Goldman Sachs Credit Partners L.P. in its capacity as Administrative Agent
      under
      any of the Loan Documents, or any successor in such capacity.

     

    “Administrative
      Agent’s Office”
means
      the Administrative Agent’s ad-dress and, as appropriate, account as set forth on
Schedule 9.02,
      or such
      other address or account as the Administrative Agent may from time to time
      notify the Borrower and the Lenders.

     

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

     

    “Affiliate”
of
      any
      specified Person means any other Person directly or indirectly controlling
      or
      controlled by or under direct or indirect common control with such specified
      Person. For purposes of this definition, “control,” as used with respect to any
      Person, shall mean the possession, directly or indirectly, of the power to
      direct or cause the direction of the management and policies of such Person,
      whether through the ownership of voting securities, by agreement or otherwise.
      For purposes of this definition, the terms “Controlling,” “Controlled By” and
“Under Common Control With” shall have correlative meanings.

     

    “Affiliate
      Transaction”
has
      the
      meaning specified in Section
      6.10.

     

    “Agent-Related
      Persons”
means
      the Administrative Agent, together with its Affiliates, and the officers,
      directors, employees, agents and attorneys-in-fact of such Person and
      Affiliates.

     

    “Agents”
means,
      collectively, the Administrative Agent, the Arrangers, the Syndication Agent
      and
      the Co-Documentation Agents.

     

    “Agreement”
means
      this Bridge Loan Agreement as amended, amended and restated or otherwise
      modified from time to time.

     

    “Amend”
means
      amend, modify, supplement, restate or amend and restate, including successively;
      and “Amending” and “Amended” have correlative meanings.

     

    “Applicable
      Extended Loan Percentage”
means,
      with respect to any Extended Loan, 0 basis points during the Interest
      Period beginning on the Initial Maturity Date, which amount shall increase
      by 50
      basis points at the beginning of the next succeeding Interest Period and by
      an
      additional 50 basis points at the beginning of each subsequent Interest
      Period.

     

    “Applicable
      Initial Loan Percentage”
means,
      with respect to any Initial Loan, 250 basis points for each of the first two
      Interest Periods immediately following the Closing Date, and 350 basis points
      for each of the two immediately succeeding Interest Periods.

     

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

     

    “Arrangers”
means
      Goldman Sachs Credit Partners L.P. and Credit Suisse Securities (USA) LLC,
      in
      their capacities as joint lead arrangers and joint bookrunners.

     

    “Asset”
means
      any asset or property, whether real, personal or other, tangible or
      intangible.

     

    “Asset
      Acquisition”
means
      (a) an Investment by the Borrower or any of its Restricted Subsidiaries in
      any other Person if, as a result of such Investment, such Person shall become
      a
      Restricted Subsidiary of the Borrower, or shall be merged with or into the
      Borrower or any Restricted Subsidiary of the Borrower, or (b) the
      acquisition by the Borrower or any Restricted Subsidiary of the Borrower of
      all
      or substantially all of the assets of any other Person or any division or line
      of business of any other Person.

     

    “Asset
      Sale”
means:
      (1) the sale, lease, conveyance or other disposition of any assets or
      rights of the Borrower or any Restricted Subsidiary; provided
      that the
      sale, conveyance or other disposition of all or substantially all of the assets
      of the Borrower and its Restricted Subsidiaries taken as a whole will be
      governed by Section 2.11
      and/or
Section 6.16
      and not
      by Section 6.09;
      and
      (2) the issuance or sale of Equity Interests in or by any of the Borrower’s
      Restricted Subsidiaries (other than director’s qualifying shares or shares
      required by applicable law to be held by Persons other than the Borrower or
      a
      Restricted Subsidiary).

     

    Notwithstanding
      the preceding, the following items shall not be deemed to be Asset
      Sales:

     

    (1) any
      single transaction or series of related transactions that involves assets having
      a fair market value of less than $5.0 million;

     

    (2) a
      transfer of assets between or among the Borrower and its Restricted
      Subsidiaries;

     

    (3) an
      issuance of Equity Interests by a Restricted Subsidiary to the Borrower or
      to
      another Restricted Subsidiary;

     

    (4) the
      sale,
      lease, sublease, license, sublicense or consignment of equipment, inventory
      or
      other assets in the ordinary course of business;

     

    (5) the
      sale
      or other disposition of cash or Cash Equivalents;

     

    (6) a
      Restricted Payment or Permitted Investment that is permitted under Section 6.07;

     

    (7) the
      licensing of intellectual property to third Persons on customary terms as
      determined by the Board of Directors of the Borrower in good faith;

     

    (8) any
      sale
      of accounts receivable, or participations therein, in connection with any
      Qualified Receivables Transaction;

     

    (9) any
      sale
      or disposition of any property or equipment that has become damaged, worn-out,
      obsolete, condemned, given over in lieu of deed or otherwise unsuitable or
      not
      required for the ordinary course of the business of the Borrower and its
      Restricted Subsidiaries;

     

    (10) any
      sale
      of Equity Interests in, or Indebtedness or other securities of, an Unrestricted
      Subsidiary;

     

    (11) any
      foreclosures of assets; and

     

    (12) any
      disposition of an account receivable in connection with the collection or
      compromise thereof.

     

    “Asset
      Sale Offer”
has
      the
      meaning specified in Section
      2.12.
      

     

    “Assignment
      and Assumption”
means
      an Assignment and Assumption entered into by a Lender and an assignee, and
      accepted by the Administrative Agent, in a form as shall be approved by the
      Administrative Agent.

     

    “Attorney
      Costs”
means
      and includes all reasonable fees, expenses and disbursements of any law firm
      or
      other external counsel.

     

    “Attributable
      Debt”
in
      respect of a sale and leaseback transaction means, at the time of determination,
      the present value of the obligation of the lessee for net rental payments during
      the remaining term of the lease included in such sale and leaseback transaction,
      including any period for which such lease has been extended or may, at the
      option of the lessor, be extended. Such present value shall be calculated using
      a discount rate equal to the rate of interest implicit in such transaction,
      determined in accordance with GAAP.

     

    “Bankruptcy
      Exceptions”
has
      the
      meaning specified in Section
      5.02(c).

     

    “Bankruptcy
      Law”
means
      Title 11, U.S. Code or any similar Federal, state or foreign law for
      the relief of debtors.

     

    “Beneficial
      Owner”
has
      the
      meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the
      Exchange Act, except that in calculating the beneficial ownership of any
      particular “person” (as that term is used in Section 13(d)(3) of the
      Exchange Act), such “person” shall be deemed to have beneficial ownership of all
      securities that such “person” has the right to acquire by conversion or exercise
      of other securities, whether such right is currently exercisable or is
      exercisable only upon the occurrence of a subsequent condition. The terms
“Beneficially Owns” and “Beneficially Owned” shall have a corresponding
      meaning.

     

    “Board”
means
      the Board of Governors of the Federal Reserve System.

     

    “Board
      of Directors”
means:
      (1) with respect to a corporation, the board of directors of the
      corporation or a committee thereof authorized to exercise the power of the
      board
      of directors of such corporation; (2) with respect to a partnership, the
      board of directors of the general partner of the partnership; and (3) with
      respect to any other Person, the board or committee of such Person serving
      a
      similar function.

     

    “Board
      Resolution”
means,
      with respect to any Person, a copy of a resolution certified by the Secretary
      or
      an Assistant Secretary of such Person to have been duly adopted by the Board
      of
      Directors of such Person and to be in full force and effect on the date of
      such
      certification, and delivered to the Administrative Agent.

     

    “Borrower”
means
      NTK Holdings, Inc., a Delaware corporation.

     

    “Borrowing”
means
      the incurrence of the Initial Loans.

     

    “Borrowing
      Base”
means,
      as of any date, an amount equal to:

     

    (1) 85%
      of
      the face amount of all accounts receivable owned by the Borrower and its
      Restricted Subsidiaries as of the end of the most recent fiscal quarter
      preceding such date that were not more than 90 days past due;
      plus

     

    (2) 65%
      of
      the book value of all inventory owned by the Borrower and its Restricted
      Subsidiaries as of the end of the most recent fiscal quarter preceding such
      date; all calculated on a consolidated basis and in accordance with
      GAAP.

     

    “Borrowing
      Request”
means
      a
      request by the Borrower in accordance with Section 2.02,
      in a
      form reasonably satisfactory to the Administrative Agent.

     

    “Bridge
      Loan Transactions”
has
      the
      meaning specified in the preamble to this Agreement. 

     

    “Business
      Day”
means
      any day other than a Saturday, Sunday or any other day on which banking
      institutions in the City of New York are required or authorized by law or
      other governmental action to be closed.

     

    “Calculation
      Date”
has
      the
      meaning specified in the definition of the term “Fixed Charge Coverage Ratio”.

     

    “Capital
      Lease Obligation”
means,
      at the time any determination thereof is to be made, the amount of the liability
      in respect of a capital lease that would at that time be required to be
      capitalized on a balance sheet in accordance with GAAP.

     

    “Capital
      Stock”
means:
      (1) in the case of a corporation, corporate stock; (2) in the case of
      an association or business entity, any and all shares, interests,
      participations, rights or other equivalents (however designated) of
      corporate stock; (3) in the case of a partnership or limited liability
      company, partnership or membership interests (whether general or limited);
      and (4) any other interest or participation that confers on a Person the
      right to receive a share of the profits and losses of, or distributions of
      assets of, the issuing Person.

     

    “Cash
      Equivalents”
means:
      (1) United States dollars or, in the case of any Foreign Restricted
      Subsidiary, such local currencies held by it from time to time in the ordinary
      course of business; (2) securities issued or directly and fully guaranteed
      or insured by the United States government or any agency or instrumentality
      of
      the United States, Canada or any member nation of the European Union having
      maturities of not more than 360 days from the date of acquisition;
      (3) certificates of deposit, time deposits and eurodollar time deposits
      with maturities of twelve months or less from the date of acquisition, bankers’
acceptances with maturities not exceeding six months and overnight bank
      deposits, in each case, with any domestic commercial bank having capital and
      surplus in excess of $500.0 million; (4) repurchase obligations for
      underlying securities of the types described in clauses (2) and (3)
      above entered into with any financial institution meeting the qualifications
      specified in clause (3) above; (5) commercial paper having the rating
      of P-1 or better from Moody’s or A-1 or better from S&P and in each case
      maturing within twelve months after the date of acquisition; (6) readily
      marketable direct obligations issued by any state of the United States or any
      political subdivision thereof having one of the two highest rating categories
      from either Moody’s or S&P with maturities of twelve months or less from the
      date of acquisition; (7) instruments equivalent to those referred to in
      clauses (1) to (6) above denominated in euro or any other foreign
      currency comparable in credit quality and tenor to those referred to above
      and
      customarily used by corporations for cash management purposes in any
      jurisdiction outside the United States to the extent reasonably required in
      connection with any business conducted by any Restricted Subsidiary organized
      in
      such jurisdiction; and (8) investments in funds which invest substantially
      all of their assets in Cash Equivalents of the kinds described in
      clauses (1) through (7) of this definition.

     

    “CERCLA”
has
      the
      meaning specified in Section
      5.14.

     

    “Change
      of Control”
means
      the occurrence of any of the following: (1) the direct or indirect sale,
      transfer, conveyance or other disposition (other than by way of merger or
      consolidation), in one or a series of related transactions, of all or
      substantially all of the properties or assets of the Borrower and its Restricted
      Subsidiaries, taken as a whole, to any “person” (as that term is used in
      Section 13(d)(3) of the Exchange Act) other than the Principals or Related
      Parties of the Principals; (2) the adoption of a plan relating to the
      liquidation or dissolution of the Borrower; (3) the consummation of any
      transaction (including, without limitation, any merger or consolidation) the
      result of which is that any “person” or “group” (as such terms are used in
      Sections 13(d) and 14(d) of the Exchange Act), other than the Principals and
      their Related Parties, becomes the Beneficial Owner, directly or indirectly,
      of
      more than 50% of the voting power of the Voting Stock of the Borrower or the
      direct parent company of the Borrower, as the case may be; (4) the first
      day on which a majority of the members of the Board of Directors of the direct
      parent company of the Borrower or the Borrower are not Continuing Directors;
      or
      (5) the direct parent company of the Borrower or the Borrower consolidates
      with, or merges with or into, any Person, or any Person consolidates with,
      or
      merges with or into, the direct parent company of the Borrower or the Borrower,
      in any such event pursuant to a transaction in which any of the outstanding
      Voting Stock of the direct parent company of the Borrower, the Borrower or
      such
      other Person is converted into or exchanged for cash, securities or other
      property, other than any such transaction where (A) the Voting Stock of the
      direct parent company of the Borrower or the Borrower outstanding immediately
      prior to such transaction is converted into or exchanged for Voting
      Stock (other than Disqualified Stock) of the surviving or transferee Person
      constituting a majority of the outstanding shares of such Voting Stock of such
      surviving or transferee Person (immediately after giving effect to such
      issuance) and (B) immediately after such transaction, no “person” or
“group” (as such terms are used in Sections 13(d) and 14(d) of
      the Exchange Act), other than the Principals and their Related Parties, becomes
      the Beneficial Owner, directly or indirectly, of more than 50% of the voting
      power of the Voting Stock of the surviving or transferee person.

     

    “Change
      of Control Offer”
has
      the
      meaning specified in Section
      2.11.

     

    “Change
      of Control Prepayment”
has
      the
      meaning specified in Section 2.11.

     

    “Change
      of Control Prepayment Date”
has
      the
      meaning specified in Section
      2.11.
      

     

    “Closing
      Date”
means
      May 10, 2006.

     

    “Co-Documentation
      Agents”
means
      Banc of America Bridge LLC and UBS Securities LLC, as Co-Documentation Agents
      under the Loan Documents. 

     

    “Code”
means
      the United States Internal Revenue Code of 1986, as amended from time to time,
      and the regulations promulgated and rulings issued thereunder. Section
      references to the Code are to the Code as in effect on the Closing Date and
      any
      subsequent provisions of the Code amendatory thereof, supplemental thereto
      or
      substituted therefor.

     

    “Commission”
means
      the Securities and Exchange Commission.

     

    “Commitment”
means,
      with respect to each Lender, the commitment of such Lender to make a Loan
      hereunder as set forth on Schedule 2.01.
      The
      aggregate amount of the Lenders’ Commitments is
      $205.0 million.

     

    “Compensation
      Period”
has
      the
      meaning specified in Section
      2.09(c).

     

    “Consolidated
      Cash Flow”
means,
      with respect to any specified Person for any period, the Consolidated Net Income
      of such Person for such period and, without duplication, plus:
      (1) provision for taxes based on income or profits of such Person and its
      Restricted Subsidiaries for such period, to the extent that such provision
      for
      taxes was deducted in computing such Consolidated Net Income; plus
      (2) consolidated interest expense of such Person and its Restricted
      Subsidiaries for such period, whether or not paid or accrued and whether or
      not
      capitalized (including, without limitation, amortization of debt issuance costs
      and original issue discount, non-cash interest payments, the interest component
      of any deferred payment obligations, the interest component of all payments
      associated with Capital Lease Obligations, imputed interest with respect to
      Attributable Debt, commissions, discounts and other fees and charges incurred
      in
      respect of letter of credit or bankers’ acceptance financings, and net of the
      effect of all payments made or received pursuant to Hedging Obligations), to
      the
      extent that any such expense was deducted in computing such Consolidated Net
      Income; plus (3) depreciation, amortization (including amortization of the
      step-up in inventory valuation arising from purchase accounting and other
      intangibles) and other non-cash expenses (excluding any such non-cash expense
      to
      the extent that it represents an accrual of or reserve for cash expenses in
      any
      future period or amortization of a prepaid cash expense that was paid in a
      prior
      period) of such Person and its Restricted Subsidiaries for such period to the
      extent that such depreciation, amortization and other non-cash expenses were
      deducted in computing such Consolidated Net Income; plus (4) any management
      fees paid by the Borrower or any Restricted Subsidiary to Kelso &
Company L.P. or Thomas H. Lee Partners, L.P., as the case may be, or their
      respective Affiliates, in such period pursuant to management agreements entered
      into in connection with the Original Transactions pursuant to the Stock Purchase
      Agreement, to the extent that any such management fees were deducted in
      computing such Consolidated Net Income; provided
      that the
      maximum aggregate amount of such management fees in any 12-month period payable
      to Thomas H. Lee Partners, L.P. or its Affiliates shall not exceed the
      amount described in the 2005 10-K; plus (5) any reasonable expenses, fees
      or charges related to the Original Transactions or any acquisition or
      Investment, in each case to the extent that any such expenses, fees or charges
      were deducted in computing such Consolidated Net Income; plus (6) other
      non-recurring cash charges not to exceed in the aggregate $3.0 million in
      any fiscal year; minus (7) non-cash items increasing such Consolidated Net
      Income for such period, excluding any items which represent the reversal of
      any
      accrual of, or cash reserve for, anticipated cash charges in any prior
      period.

     

    Notwithstanding
      the preceding, the provision for taxes based on the income or profits of, and
      the depreciation and amortization and other non-cash expenses of, a Restricted
      Subsidiary of the Borrower shall be added to Consolidated Net Income to compute
      Consolidated Cash Flow of the Borrower only to the extent that a corresponding
      amount would be permitted at the date of determination to be dividended to
      the
      Borrower by such Restricted Subsidiary without prior governmental approval
      (that
      has not been obtained), and without direct or indirect restriction pursuant
      to
      the terms of its charter and all agreements, instruments, judgments, decrees,
      orders, statutes, rules and governmental regulations applicable to that
      Restricted Subsidiary or its stockholders unless (x) such restriction with
      respect to the payment of dividends or similar distributions has been legally
      waived or (y) such restriction is permitted by Section 6.11.

     

    “Consolidated
      Net Income”
means,
      with respect to any specified Person for any period, the aggregate of the Net
      Income of such Person and its Subsidiaries for such period, on a consolidated
      basis, determined in accordance with GAAP; provided
      that:

     

    (1) the
      Net
      Income of any Person that is not a Restricted Subsidiary, or that is accounted
      for by the equity method of accounting shall be excluded; provided
      that, to
      the extent not previously included, Consolidated Net Income shall be increased
      by the amount of dividends or distributions paid in cash to the specified Person
      or a Restricted Subsidiary thereof;

     

    (2) the
      Net
      Income of any Restricted Subsidiary shall be excluded to the extent that the
      declaration or payment of dividends or similar distributions by that Restricted
      Subsidiary of that Net Income is not at the date of determination permitted
      without any prior governmental approval (that has not been obtained) or,
      directly or indirectly, by operation of the terms of its charter or any
      agreement, instrument, judgment, decree, order, statute, rule or governmental
      regulation applicable to that Restricted Subsidiary or its stockholders, unless
      such restriction with respect to the payment of dividends or similar
      distributions (x) has been legally waived or (y) is permitted by
Section 6.11;
      provided
      that
      Consolidated Net Income of such Person shall be increased by the amount of
      dividends or distributions or other payments that are actually paid in cash
      (or
      to the extent converted into cash) to such Person or a Restricted Subsidiary
      thereof (subject to provisions of this clause (2)) during such period, to
      the extent not previously included therein;

     

    (3) the
      Net
      Income (or loss) of any Person acquired in a pooling of interests transaction
      for any period prior to the date of such acquisition shall be
      excluded;

     

    (4) the
      cumulative effect of a change in accounting principles shall be
      excluded;

     

    (5) non-cash
      charges relating to employee benefit or other management compensation plans
      of
      any Parent (to the extent such non-cash charges relate to plans of any Parent
      for the benefit of members of the Board of Directors of the Borrower or any
      Restricted Subsidiary (in their capacity as such) or employees of the Borrower
      or any Restricted Subsidiary), the Borrower or any of its Restricted
      Subsidiaries or any non-cash compensation charge arising from any grant of
      stock, stock options or other equity-based awards of any Parent (to the extent
      such non-cash charges relate to plans of the Borrower or any Restricted
      Subsidiary for the benefit of members of the Board of Directors of the Borrower
      or any Restricted Subsidiary (in their capacity as such) or employees of the
      Borrower or any Restricted Subsidiary), the Borrower or any of its Restricted
      Subsidiaries (excluding in each case any non-cash charge to the extent that
      it
      represents an accrual of or reserve for cash expenses in any future period
      or
      amortization of a prepaid cash expense incurred in a prior period) in each
      case,
      to the extent that such non-cash charges are deducted in computing such
      Consolidated Net Income shall be excluded;

     

    (6) any
      non-cash goodwill or other impairment charges resulting from the application
      of
      Statement of Financial Accounting Standards No. 142 or Statement of Financial
      Accounting Standards No. 144, and non-cash charges relating to the amortization
      of intangibles resulting from the application of Statement of Financial
      Accounting Standards No. 141, shall be excluded;

     

    (7) any
      increase in cost of sales as a result of the step-up in inventory valuation
      arising from applying the purchase method of accounting in accordance with
      GAAP
      in connection with the Original Transactions or any acquisition consummated
      after February 15, 2005, net of taxes, shall be excluded;

     

    (8) unrealized
      gains and losses relating to hedging transactions and mark-to-market of
      Indebtedness denominated in foreign currencies resulting from the application
      of
      Statement of Financial Accounting Standards No. 52 shall be excluded;
      and

     

    (9) all
      restructuring charges, including severance, relocation and transition costs,
      shall be excluded.

     

    “Consolidated
      Tangible Assets”
means,
      with respect to any Person, the consolidated total assets of such Person and
      its
      Restricted Subsidiaries determined in accordance with GAAP, less all goodwill,
      trade names, trademarks, patents and other similar intangibles properly
      classified as intangibles in accordance with GAAP, all as shown on the most
      recent balance sheet for such Person.

     

    “Continuing
      Directors”
means,
      as of any date of determination, any member of the Board of Directors of the
      Borrower or any Parent, as the case may be, who: (1) was a member of such
      Board of Directors on February 15, 2005; (2) was nominated for election or
      elected to such Board of Directors with the approval of a majority of the
      Continuing Directors who were members of such Board of Directors at the time
      of
      such nomination or election; or (3) was designated or appointed by the
      Principals and the Related Parties of the Principals.

     

    “Contracts”
has
      the
      meaning specified in Section
      5.03.
      

     

    “Credit
      Facilities”
means
      one or more debt facilities (including, without limitation, the Nortek
      Credit Agreement), commercial paper facilities or indentures, in each case
      with
      banks or other institutional lenders or a trustee providing for revolving credit
      loans, term loans, receivables financing (including through the sale of
      receivables to such lenders or to special purpose entities formed to borrow
      from
      such lenders against such receivables), letters of credit or issuances of notes,
      in each case as amended, modified, renewed, refunded, replaced, restated,
      substituted or refinanced in whole or in part from time to time.

     

    “Debtor
      Relief Laws”
means
      the Bankruptcy Code of the United States, and all other liquidation,
      conservatorship, bankruptcy, assignment for the benefit of creditors,
      moratorium, rearrangement, receivership, insolvency, reorganization, or similar
      debtor relief Laws of the United States or other applicable jurisdictions from
      time to time in effect and affecting the rights of creditors
      generally.

     

    “Default”
means
      any event that is, or with the passage of time or the giving of notice or both
      would be, an Event of Default.

     

    “Default
      Rate”
means
      an interest rate equal to the interest rate otherwise applicable to the Loans
      plus 2.0% per annum, to the fullest extent permitted by applicable
      Laws.

     

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

     

    “Disqualified
      Stock”
means
      any Capital Stock that, by its terms (or by the terms of any security into
      which
      it is convertible, or for which it is exchangeable, in each case at the option
      of the holder thereof), or upon the happening of any event, matures or is
      mandatorily redeemable, pursuant to a sinking fund obligation or otherwise,
      or
      redeemable at the option of the holder thereof, in whole or in part, on or
      prior
      to the date that is 91 days after the Final Maturity Date; provided
      that if
      such Capital Stock is issued to any employee or to any plan for the benefit
      of
      employees of the Borrower or any of its Subsidiaries or by any such plan to
      such
      employees, such Capital Stock shall not constitute Disqualified Stock solely
      because it may be required to be repurchased by the Borrower or such Subsidiary
      in order to satisfy applicable statutory or regulatory obligations; and
provided
      further
      that any
      Capital Stock that would constitute Disqualified Stock solely because the
      holders thereof have the right to require the Borrower or any of its Restricted
      Subsidiaries to repurchase such Capital Stock upon the occurrence of a change
      of
      control or an asset sale shall not constitute Disqualified Stock if the terms
      of
      such Capital Stock provided that the Borrower or any such Restricted Subsidiary
      may not repurchase or redeem any such Capital Stock pursuant to such provisions
      unless such repurchase or redemption complies with Section 6.07.

     

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

     

    “Domestic
      Subsidiary”
means
      any Restricted Subsidiary that was formed under the laws of the United States
      or
      any state thereof or the District of Columbia.

     

    “Environmental
      Laws”
has
      the
      meaning specified in Section
      5.14.

     

    “Environmental
      Liability”
means
      any liability or costs, contingent or otherwise (including any liability for
      damages, costs of environmental remediation, fines, penalties or indemnities),
      of the Borrower, any other Loan Party or any of their respective Subsidiaries
      directly or indirectly resulting from or based upon (a) violation of any
      Environmental Law, (b) the generation, use, handling, transportation, storage,
      treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous
      Materials, (d) the Release or threatened Release of any Hazardous Materials
      into
      the environment or (e) any contract, agreement or other consensual arrangement
      pursuant to which liability is assumed or imposed with respect to any of the
      foregoing. 

     

    “Equity
      Interests”
means
      Capital Stock and all warrants, options or other rights to acquire Capital
      Stock
      (but excluding any debt security that is convertible into, or exchangeable
      for,
      Capital Stock).

     

    “Equity
      Sponsor”
means
      Thomas H. Lee Partners, L.P., a Delaware limited partnership.

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974.

     

    “ERISA
      Affiliate”
means
      any trade or business (whether or not incorporated) under common control
      with the Borrower within the meaning of Section 414(b) or (c) of the Code
      (and Sections 414(m) and (o) of the Code for purposes of provisions
      relating to Section 412 of the Code).

     

    “Event
      of Default”
has
      the
      meaning specified in Section 7.01.

     

    “Excess
      Proceeds”
has
      the
      meaning specified in Section
      2.12.
      

     

    “Excess
      Proceeds Prepayment”
has
      the
      meaning specified in Section
      2.12.

     

    “Excess
      Proceeds Prepayment Date”
has
      the
      meaning specified in Section
      2.12.
      

     

    “Exchange”
has
      the
      meaning specified in Section 2.03(b)(i).

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      of the Commission promulgated thereunder.

     

    “Exchange
      Date”
has
      the
      meaning specified in Section 2.03(b)(ii).

     

    “Exchange
      Note Indenture”
means
      an Exchange Note Indenture, prepared by the Administrative Agent and reasonably
      acceptable to the Borrower and the Trustee, to be entered into pursuant to
      Section 6.17,
      among
      the Borrower and the Trustee, relating to the issuance of the Exchange
      Notes.

     

    “Exchange
      Notes”
means
      any notes (or, if more than one such note is outstanding, all such notes,
      including any Increasing Rate Exchange Notes and Fixed Rate Exchange
      Notes (unless the context otherwise requires)) issued under the Exchange
      Note Indenture in exchange for one or more Loans, substantially in the form
      attached as an exhibit to the Exchange Note Indenture.

     

    “Exchange
      Request”
has
      the
      meaning specified in Section
      2.03(b)(iii).

     

    “Excluded
      Contributions”
means
      the net cash proceeds received by the Borrower after August 27, 2004 from
      (a) contributions to its common equity capital and (b) the
      sale (other than to a Subsidiary or to any management equity plan or stock
      option plan or any other management or employee benefit plan or agreement of
      the
      Borrower or any of its Subsidiaries) of Capital Stock (other than
      Disqualified Stock) of the Borrower, in each case designated within 60 days
      of the receipt of such net cash proceeds as Excluded Contributions pursuant
      to
      an Officers’ Certificate, the cash proceeds of which are excluded from the
      calculation set forth in Section 6.07(a)(3).

     

    “Existing
      Indebtedness”
means
      Indebtedness outstanding on the Closing Date, other than under this Agreement
      and the Nortek Credit Agreement.

     

    “Extended
      Loans”
has
      the
      meaning specified in Section
      2.03(a).

     

    “Federal
      Funds Rate”
means,
      for any day, the rate per annum equal to the weighted average of the rates
      on
      overnight Federal funds transactions with members of the Federal Reserve System
      arranged by Federal funds brokers on such day, as published by the Federal
      Reserve Bank of New York on the Business Day next succeeding such day;
provided
      that
      (a) if such day is not a Business Day, the Federal Funds Rate for such day
      shall be such rate on such transactions on the next preceding Business Day
      as so
      published on the next succeeding Business Day, and (b) if no such rate is
      so published on such next succeeding Business Day, the Federal Funds Rate for
      such day shall be the average (rounded upward, if necessary, to a whole
      multiple of 1/100 of 1%) of the quotations for the day for such transactions
      received by the Administrative Agent from three federal funds brokers of
      recognized standing selected by it.

     

    “Fee
      Letter”
means
      the Fee Letter dated May 10, 2006, among the Borrower, the Initial Lenders
      and
      the Arrangers.

     

    “Fees”
means
      any and all fees payable to the Administrative Agent or any Lender pursuant
      to
      the Agreement, the Fee Letter or any of the other Loan Documents.

     

    “Final
      Maturity Date”
means
      March 1, 2014.

     

    “Financing
      Obligations”
means
      any principal, interest, penalties, fees, indemnifications, reimbursements,
      damages, costs, expenses and other liabilities payable under the documentation
      governing any Indebtedness.

     

    “Fixed
      Charge Coverage Ratio”
means
      with respect to any specified Person for any period, the ratio of the
      Consolidated Cash Flow of such Person for such period to the Fixed Charges
      of
      such Person for such period. In the event that the specified Person or any
      of
      its Restricted Subsidiaries incurs, assumes, Guarantees, repays, repurchases
      or
      redeems any Indebtedness or issues, repurchases or redeems Disqualified Stock
      or
      preferred stock subsequent to the commencement of the period for which the
      Fixed
      Charge Coverage Ratio is being calculated and on or prior to the date on which
      the event for which the calculation of the Fixed Charge Coverage Ratio is
      made (the “Calculation
      Date”),
      then
      the Fixed Charge Coverage Ratio shall be calculated giving pro forma effect
      to
      such incurrence, assumption, Guarantee, repayment, repurchase, or redemption
      of
      Indebtedness, or such issuance, repurchase or redemption of Disqualified Stock
      or preferred stock and the use of the proceeds therefrom as if the same had
      occurred at the beginning of the applicable four-quarter reference
      period.

     

    In
      addition, for purposes of calculating the Fixed Charge Coverage
      Ratio:

     

    (1) the
      Investments, acquisitions, dispositions, mergers, consolidations and
      discontinued operations (as determined in accordance with GAAP) that have
      been made by the Borrower or any Restricted Subsidiary of the Borrower during
      the four-quarter reference period or subsequent to such reference period and
      on
      or prior to or simultaneously with the Calculation Date shall be calculated
      on a
      pro forma basis including Pro Forma Cost Savings assuming that all such
      Investments, acquisitions, dispositions, mergers, consolidations and
      discontinued operations (and the change in any associated fixed charge
      obligations and the change in EBITDA resulting therefrom) had occurred on the
      first day of the four-quarter reference period. If since the beginning of such
      period any Person (that subsequently became a Restricted Subsidiary of the
      Borrower or was merged with or into the Borrower or any Restricted Subsidiary
      of
      the Borrower since the beginning of such period) shall have made any Investment,
      acquisition, disposition, merger, consolidation or discontinued operation that
      would have required adjustment pursuant to this definition, then the Fixed
      Charge Coverage Ratio shall be calculated giving pro forma effect thereto for
      such period as if such Investment, acquisition, disposition, merger,
      consolidation or discontinued operation had occurred at the beginning of the
      applicable four-quarter period; and

     

    (2) in
      calculating Fixed Charges attributable to interest on any Indebtedness computed
      on a pro forma basis, (a) interest on outstanding Indebtedness determined
      on a fluctuating basis as of the Calculation Date and which will continue to
      be
      so determined thereafter shall be deemed to have accrued at a fixed rate per
      annum equal to the rate of interest on such Indebtedness in effect on the
      Calculation Date; (b) if interest on any Indebtedness actually incurred on
      the Calculation Date may optionally be determined at an interest rate based
      upon
      a factor of a prime or similar rate, a eurocurrency interbank offered rate,
      or
      other rates, then the interest rate in effect on the Calculation Date will
      be
      deemed to have been in effect during the four-quarter period; and
      (c) notwithstanding clause (a) above, interest on Indebtedness
      determined on a fluctuating basis, to the extent such interest is covered by
      agreements relating to interest rate swaps, caps or collars, shall be deemed
      to
      accrue at the rate per annum resulting after giving effect to the operation
      of
      such agreement.

     

    “Fixed
      Charges”
means,
      with respect to any specified Person for any period, the sum, without
      duplication of: (1) the consolidated interest expense of such Person and
      its Restricted Subsidiaries for such period, whether paid or accrued, including,
      without limitation, amortization of debt issuance costs and original issue
      discount, noncash interest payments (other than the amortization of discount
      or
      imputed interest arising as a result of purchase accounting), the interest
      component of any deferred payment obligations, the interest component of all
      payments associated with Capital Lease Obligations, imputed interest with
      respect to Attributable Debt, commissions, discounts and other fees and charges
      incurred in respect of letter of credit or bankers’ acceptance financings, and
      net of the effect of all payments made or received pursuant to Hedging
      Obligations; plus (2) the consolidated interest of such Person and its
      Restricted Subsidiaries that was capitalized during such period; plus
      (3) any interest expense on Indebtedness of another Person that is
      Guaranteed by such Person or one of its Restricted Subsidiaries or secured
      by a
      Lien on assets of such Person or one of its Restricted Subsidiaries, whether
      or
      not such Guarantee or Lien is called upon; plus (4) all dividends and
      distributions, whether paid or accrued and whether or not in cash, on any series
      of preferred stock or Disqualified Stock of such Person or any of its Restricted
      Subsidiaries, other than dividends on Equity Interests payable solely in Equity
      Interests of the Borrower (other than Disqualified Stock) or to the Borrower
      or
      a Restricted Subsidiary of the Borrower; minus (5) the amortization or
      expensing of financing fees (including any write-off of unamortized debt
      discount) incurred by the Borrower and its Restricted Subsidiaries in connection
      with the Original Transactions or the Bridge Loan Transactions and recognized
      in
      the applicable period; minus (6) interest income actually received by the
      Borrower or any Restricted Subsidiary in cash for such period.

     

    “Fixed
      Rate Exchange Note”
has
      the
      meaning specified in Section 6.17.

     

    “Foreign
      Lender”
has
      the
      meaning specified in Section 9.15(a)(i).

     

    “Foreign
      Restricted Subsidiary”
means
      any Restricted Subsidiary of the Borrower organized in any jurisdiction outside
      the United States.

     

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

     

    “GAAP”
means
      generally accepted accounting principles set forth in the opinions and
      pronouncements of the Accounting Principles Board of the American Institute
      of
      Certified Public Accountants and statements and pronouncements of the Financial
      Accounting Standards Board or in such other statements by such other entity
      as
      have been approved by a significant segment of the accounting profession, which
      were in effect on August 27, 2004. 

     

    “Governmental
      Authority”
means
      any nation or government, any state or other political subdivision thereof,
      any
      agency, authority, instrumentality, regulatory body, court, administrative
      tribunal, central bank or other entity exercising executive, legislative,
      judicial, taxing, regulatory or administrative powers or functions of or
      pertaining to government.

     

    “Granting
      Lender”
has
      the
      meaning specified in Section 9.07(g).

     

    “Guarantee”
means
      a
      guarantee other than by endorsement of negotiable instruments for collection
      in
      the ordinary course of business, direct or indirect, in any manner including,
      without limitation, by way of a pledge of assets or through letters of credit
      or
      reimbursement agreements in respect thereof, of all or any part of any
      Indebtedness, and the term “Guaranteed” shall have a correlative
      meaning.

     

    “Guarantors”
means
      each Person that is required to, or at the election of the Borrower does, become
      a Guarantor by the terms of this Agreement after the Closing Date, in each
      case,
      until such Person is released from its Loan Guarantee in accordance with
Section 6.12.

     

    “Hazardous
      Materials”
means
      all pollutants, contaminants, chemicals, constituents substances, or wastes,
      including petroleum or petroleum products, asbestos or asbestos-containing
      materials, polychlorinated biphenyls, radon gas, infectious or medical wastes,
      of any nature regulated pursuant to or which can give rise to liability under
      any Environmental Law.

     

    “Hedging
      Obligations”
means,
      with respect to any specified Person, the obligations of such Person
      under:

     

    (1) interest
      rate swap agreements, interest rate cap agreements, interest rate collar
      agreements and other agreements or arrangements designed for the purpose of
      fixing, hedging or swapping interest rate risk;

     

    (2) commodity
      swap agreements, commodity option agreements, forward contracts and other
      agreements or arrangements designed for the purpose of fixing, hedging or
      swapping commodity price risk; and

     

    (3) foreign
      exchange contracts, currency swap agreements and other agreements or
      arrangements designed for the purpose of fixing, hedging or swapping foreign
      currency exchange rate risk.

     

    “Holdings
      Deferred Compensation Plan”
means
      the Nortek Holdings, Inc. Deferred Compensation Plan, effective as of
      August 27, 2004, and any replacement plan adopted by the Borrower or any of
      its Subsidiaries, which provides for the right to receive payments to be made
      to
      participants thereunder in amounts determined in relation to amounts distributed
      to direct or indirect equity holders of the Borrower.

     

    “Increasing
      Rate Exchange Note”
means
      any Exchange Note other than a Fixed Rate Exchange Note.

     

    “Incur”
has
      the
      meaning specified in Section 6.06.

     

    “Indebtedness”
means,
      with respect to any specified Person, any indebtedness of such Person, whether
      or not contingent, in respect of:

     

    (1) borrowed
      money;

     

    (2) evidenced
      by bonds, notes, debentures or similar instruments or letters of credit (or
      reimbursement agreements in respect thereof);

     

    (3) banker’s
      acceptances;

     

    (4) representing
      Capital Lease Obligations;

     

    (5) the
      balance deferred and unpaid of the purchase price of any property, except any
      such balance that constitutes an accrued expense or trade payable;
      or

     

    (6) representing
      any Hedging Obligations,

     

    if
      and to
      the extent any of the preceding items (other than letters of credit and Hedging
      Obligations) would appear as a liability upon a balance sheet of the specified
      Person prepared in accordance with GAAP. In addition, the term “Indebtedness”
includes all Indebtedness of others secured by a Lien on any asset of the
      specified Person (whether or not such Indebtedness is assumed by the specified
      Person) and, to the extent not otherwise included, the Guarantee by the
      specified Person of any obligations constituting Indebtedness.

     

    The
      amount of any Indebtedness outstanding as of any date shall be:

     

    (1) the
      accreted value thereof, in the case of any Indebtedness issued with original
      issue discount;

     

    (2) the
      principal amount thereof, together with any interest thereon that is more than
      30 days past due, in the case of any other Indebtedness; and

     

    (3) with
      respect to Indebtedness of another Person secured by a Lien on the assets of
      the
      Borrower or any of its Restricted Subsidiaries, the lesser of the fair market
      value of the property secured or the amount of the secured
      Indebtedness.

     

    “Indemnified
      Liabilities”
has
      the
      meaning specified in Section
      9.05.

     

    “Indemnitees”
has
      the
      meaning specified in Section
      9.05.

     

    “Independent
      Financial Advisor”
has
      the
      meaning specified in Section 6.07(c).

     

    “Information”
has
      the
      meaning specified in Section
      9.08.

     

    “Initial
      Lender”
means
      each of Goldman Sachs Credit Partners L.P., Credit Suisse, Banc of America
      Bridge LLC and UBS Loan Finance LLC. 

     

    “Initial
      Loans”
has
      the
      meaning specified in Section 2.01(a).

     

    “Initial
      Maturity Date”
means
      May 10, 2007.

     

    “Interest
      Payment Date”
means,
      with respect to any Loan, the last day of each Interest Period applicable to
      such Loan, the Initial Maturity Date and the day on which such Loan is repaid
      or
      prepaid.

     

    “Interest
      Period”
means
      the period commencing on the Closing Date and ending on the numerically
      corresponding day (or, if there is no numerically corresponding day, on the
      last
      day) in the calendar month that is three months thereafter, and each successive
      three-month period commencing on the last day of the preceding interest period
      and ending on the numerically corresponding day (or, if there is no numerically
      corresponding day, on the last day) in the calendar month that is three months
      thereafter; provided,
      however,
      that if
      any Interest Period would end on a day other than a Business Day, such Interest
      Period shall be extended to the next succeeding Business Day unless such next
      succeeding Business Day would fall in the next calendar month, in which case
      such Interest Period shall end on the next preceding Business Day. Interest
      shall accrue from and including the first day of an Interest Period to but
      excluding the last day of such Interest Period.

     

    “Interest
      Rate Cap”
has
      the
      meaning specified in Section
      2.06(a).
      

     

    “Investments”
means,
      with respect to any Person, all direct or indirect investments by such Person
      in
      other Persons (including Affiliates) in the forms of loans (including Guarantees
      or other obligations), advances or capital contributions (excluding accounts
      receivable, trade credit, advances to customers, commission, travel and similar
      advances to officers and employees made consistent with past practices),
      purchases or other acquisitions for consideration of Indebtedness, Equity
      Interests or other securities, together with all items that are or would be
      classified as investments on a balance sheet prepared in accordance with GAAP.
      If the Borrower or any Restricted Subsidiary of the Borrower sells or otherwise
      disposes of any Equity Interests of any direct or indirect Restricted Subsidiary
      of the Borrower such that, after giving effect to any such sale or disposition,
      such Person is no longer a Restricted Subsidiary of the Borrower, the Borrower
      shall be deemed to have made a Restricted Investment on the date of any such
      sale or disposition equal to the fair market value of the Equity Interests
      of
      such Restricted Subsidiary not sold or disposed of in an amount determined
      as
      provided in Section 6.07(c).
      The
      acquisition by the Borrower or any Restricted Subsidiary of the Borrower of
      a
      Person that holds an Investment in a third Person shall be deemed to be an
      Investment by the Borrower or such Restricted Subsidiary in such third Person
      in
      an amount equal to the fair market value of the Investment held by the acquired
      Person in such third Person in an amount determined as provided in Section 6.07(c).

     

    For
      purposes of the definition of “Unrestricted Subsidiary” and Section 6.07,
      (i)
      Investments shall include the portion (proportionate to the Borrower’s equity
      interest in such Subsidiary) of the fair market value of the net assets of
      a
      Subsidiary of the Borrower at the time such Subsidiary is designated an
      Unrestricted Subsidiary; provided,
      however,
      that
      upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Borrower
      shall be deemed to continue to have a permanent “Investment” in an Unrestricted
      Subsidiary in an amount (if positive) equal to (x) the Borrower’s “Investment”
in such Subsidiary at the time of such redesignation less (y) the portion
      (proportionate to the Borrower’s equity interest in such Subsidiary) of the fair
      market value of the net assets of such Subsidiary at the time of such
      redesignation; and (ii) any property transferred to or from an Unrestricted
      Subsidiary shall be valued at its fair market value at the time of such
      transfer, in each case as determined in good faith by the Borrower.

     

    “Investors
      LLC”
means
      THL-Nortek Investors, LLC, a Delaware limited liability company.

     

    “IRS”
means
      the U.S. Internal Revenue Service.

     

    “Laws”
means,
      collectively, all international, foreign, Federal, state and local statutes,
      treaties, rules, guidelines, regulations, ordinances, codes and administrative
      or judicial precedents or authorities, including the interpretation or
      administration thereof by any Governmental Authority charged with the
      enforcement, interpretation or administration thereof, and all applicable
      administrative orders, directed duties, requests, licenses, authorizations
      and
      permits of, and agreements with, any Governmental Authority, in each case
      whether or not having the force of law.

     

    “Lender”
means
      (a) the persons listed on Schedule 2.01
      (other
      than any such Person that has ceased to be a party hereto pursuant to an
      Assignment and Assumption) and (b) any Person that has become a party
      hereto pursuant to an Assignment and Assumption.

     

    “Lending
      Office”
means,
      as to any Lender, the office or offices of such Lender described as such in
      such
      Lender’s Administrative Questionnaire, or such other office or offices as a
      Lender may from time to time notify the Borrower and the Administrative
      Agent.

     

    “LIBO
      Rate”
means,
      with respect to any Loan for any Interest Period, the rate appearing on
      Page 3750 of the Dow Jones Market Service (or on any successor or
      substitute page of such Service, or any successor to or substitute for such
      Service, providing rate quotations comparable to those currently provided on
      such page of such Service, as determined by the Administrative Agent from time
      to time for purposes of providing quotations of interest rates applicable to
      dollar deposits in the London interbank market) at approximately
      11:00 a.m., London time, two Business Days prior to the commencement
      of such Interest Period, as the rate for dollar deposits with a maturity
      comparable to such Interest Period. In the event that such rate is not available
      at such time for any reason, then the “LIBO Rate” for such Interest Period shall
      be the rate (rounded upwards, if necessary, to the next 1/100 of 1%) at
      which dollar deposits of $5,000,000 and for a maturity comparable to such
      Interest Period are offered by the principal London office of the Administrative
      Agent in immediately available funds in the London interbank market at
      approximately 11:00 a.m., London time, two Business Days prior to the
      commencement of such Interest Period.

     

    “Lien”
means,
      with respect to any asset, any mortgage, lien, pledge, charge, security interest
      or encumbrance of any kind in respect of such asset, whether or not filed,
      recorded or otherwise perfected under applicable law, including any conditional
      sale or other title retention agreement, any lease (other than an operating
      lease), any option or other agreement to sell or give a security interest in
      and
      any filing of or agreement to give any financing statement under the Uniform
      Commercial Code (or equivalent statutes) of any jurisdiction.

     

    “Loan
      Documents”
means
      the Agreement, the promissory notes, if any, executed and delivered pursuant
      to
Section 2.08(a),
      and the
      Fee Letter.

     

    “Loan
      Facility”
means,
      at any time, the aggregate Loans of all Lenders at such time under this
      Agreement.

     

    “Loan
      Guarantee”
means
      the Guarantee by each Guarantor of the Borrower’s payment Obligations under this
      Agreement and the Loans, executed pursuant to the provisions of this
      Agreement.

     

    “Loan
      Parties”
means,
      collectively, the Borrower and each Guarantor (if any).

     

    “Loans”
means
      the loans made by the Lenders to the Borrower pursuant to this Agreement,
      including the Initial Loans and the Extended Loans.

     

    “Mandatory
      Prepayment Termination Date”
has
      the
      meaning specified in Section
      2.04(b).
      

     

    “Material
      Adverse Effect”
has
      the
      meaning specified in Section
      5.02(b).

     

    “Maximum
      Rate”
has
      the
      meaning specified in Section 9.10.

     

    “Minority
      Lenders”
has
      the
      meaning specified in Section 9.01.

     

    “Moody’s”
means
      Moody’s Investors Service, Inc. or any successor to the rating agency business
      thereof.

     

    “Net
      Income”
means,
      with respect to any specified Person, the net income (loss) of such Person,
      determined in accordance with GAAP and before any reduction in respect of
      preferred stock dividends, excluding, however: (1) any gain (or loss), together
      with any related provision for taxes on such gain (or loss), realized in
      connection with: (a) any Asset Sale (without reference to the $5.0 million
      limitation); or (b) the disposition of any other assets by such Person or any
      of
      its Restricted Subsidiaries (other than in the ordinary course of business)
      or
      the extinguishment of any Indebtedness of such Person or any of its Restricted
      Subsidiaries; (2) any extraordinary or nonrecurring gains, losses or charges,
      together with any related provision for taxes on such gain, loss or charge;
      and
      (3) any gains, losses, or charges of the Borrower and its Subsidiaries incurred
      in connection with the Original Transactions, including severance, bonus, change
      of control payments and other compensation charges arising therefrom, together
      with any related provision for taxes on such gain, loss, or charge.

     

    “Net
      Proceeds”
means
      (a) with respect to any Asset Sale, the aggregate cash proceeds received by
      the
      Borrower or any of its Restricted Subsidiaries in respect of any Asset Sale
      (including, without limitation, any cash received upon the sale or other
      disposition of any noncash consideration received in any Asset Sale), net of
      the
      direct costs relating to such Asset Sale or disposition of such noncash
      consideration, including, without limitation, legal, accounting and investment
      banking fees, and sales commissions, and any relocation expenses incurred as
      a
      result thereof, taxes paid or payable as a result thereof, in each case, after
      taking into account any available tax credits or deductions and any tax sharing
      arrangements, and amounts required to be applied to the repayment of
      Indebtedness (other than revolving credit Indebtedness, unless there is a
      required reduction in commitments) secured by a Lien on the asset or assets
      that
      were the subject of such Asset Sale and any (1) reserve for adjustment in
      respect of the sale price of such asset or assets established in accordance
      with
      GAAP and (2) any reserve or payment with respect to any liabilities associated
      with such asset or assets and retained by the Borrower after such sale or other
      disposition thereof, including, without limitation, severance costs, pension
      and
      other post-employment benefit liabilities and liabilities related to
      environmental matters or against any indemnification obligations associated
      with
      such transaction and (b) with respect to any Incurrence of Specified
      Indebtedness or Specified Equity Issuance, the cash proceeds thereof, net of
      all
      investment banking fees, underwriting discounts and commissions, taxes and
      other
      out-of-pocket expenses and other customary expenses incurred in connection
      therewith.

     

    “Non-Recourse
      Debt”
means
      Indebtedness:

     

    (1) as
      to
      which neither the Borrower nor any of its Restricted Subsidiaries
      (a) provides credit support of any kind (including any undertaking,
      agreement or instrument that would constitute Indebtedness), or (b) is
      directly or indirectly liable as a guarantor or otherwise; and

     

    (2) as
      to
      which the lenders have been notified in writing that they will not have any
      recourse to the stock or assets of the Borrower or any of its Restricted
      Subsidiaries.

     

    “Nortek”
means
      Nortek, Inc., a Delaware corporation, and its successors and
      assigns.

     

    “Nortek
      Credit Agreement”
means
      that certain Credit Agreement, dated as of August 27, 2004, as amended and
      restated on April 3, 2006, by and among Nortek, UBS AG Stamford Branch, as
      U.S. Administrative Agent and Canadian Administrative Agent, and the other
      Lenders named therein providing for up to $700.0 million in term loan
      borrowings and $200.0 million of revolving credit borrowings, including any
      related notes, Guarantees, collateral documents, instruments and agreements
      executed in connection therewith, and in each case as amended, modified,
      renewed, refunded, replaced, restated, substituted or refinanced in whole or
      in
      part from time to time, including any agreement extending the maturity of,
      refinancing, replacing or otherwise restructuring (including increasing the
      amount of available borrowings thereunder or adding Subsidiaries of Nortek
      as
      additional borrowers or guarantors thereunder) all or any portion of the
      Indebtedness under such agreement or any successor or replacement agreement,
      including any agreement governing Credit Facilities incurred pursuant to
      clause (1) or (15) of Section 6.06(b),
      and
      whether by the same or any other agent, lender or group of lenders.

     

    “NTK
      Senior Discount Notes”
means
      the 103⁄4 senior discount notes of the Borrower due 2014 having an aggregate
      accreted value at maturity of $403,000,000 issued on February 15, 2005, and
      any exchange notes issued in exchange therefor, in each case pursuant to the
      NTK
      Senior Discount Notes Indenture.

     

    “NTK
      Senior Discount Notes Indenture”
means
      the Indenture dated as of February 15, 2005 among U.S. Bank National
      Association, as trustee, and the Borrower.

     

    “Obligations”
means
      all advances to, and debts, liabilities, obligations, covenants and duties
      of,
      any Loan Party arising under any Loan Document or otherwise with respect to
      any
      Loan, whether direct or indirect (including those acquired by assumption),
      absolute or contingent, due or to become due, now existing or hereafter arising
      and including interest and fees that accrue after the commencement by or against
      any Loan Party of any proceeding under any Debtor Relief Laws naming such Person
      as the debtor in such proceeding, regardless of whether such interest and fees
      are allowed claims in such proceeding. Without limiting the generality of the
      foregoing, the Obligations of the Loan Parties under the Loan Documents include
      (a) the obligation to pay principal, interest, charges, expenses, fees, Attorney
      Costs, indemnities and other amounts payable by any Loan Party under any Loan
      Document and (b) the obligation of any Loan Party to reimburse any amount in
      respect of any of the foregoing that any Lender, in its sole discretion, may
      elect to pay or advance on behalf of such Loan Party in accordance with the
      terms of the Loan Documents.

     

    “Officer”
means
      the Chairman of the Board, the Chief Executive Officer, Chief Financial Officer
      or Chief Accounting Officer, the President, any Executive Vice President, Senior
      Vice President or Vice President, the Treasurer or the Secretary of the
      Borrower.

     

    “Officers’
      Certificate”
means,
      with respect to any Person, a certificate signed by the Chief Executive Officer
      or President and by the Treasurer, Chief Financial Officer or Chief Accounting
      Officer of such Person; provided
      that any
      such certificate delivered on the Closing Date shall be signed by the Chief
      Executive Officer, President, Treasurer, Chief Financial Officer or Chief
      Accounting Officer of such Person 

     

    “Old
      Nortek Holdings”
means
      Nortek Holdings, Inc., a Delaware corporation, as in existence prior to the
      consummation of the Original Transactions completed on August 27,
      2004.

     

    “Original
      Transactions”
means
      (1) the purchase by THL Buildco, Inc. of all the outstanding Capital Stock
      of Old Nortek Holdings pursuant to the Stock Purchase Agreement, (2) the
      merger of THL Buildco, Inc. with and into Old Nortek Holdings with Old Nortek
      Holdings continuing as the surviving corporation, and the subsequent merger
      of
      Old Nortek Holdings with and into Nortek, with Nortek continuing as the
      surviving corporation, (3) the tender offers to purchase for cash all of
      Old Nortek Holdings’ outstanding 10% senior discount notes due 2011, Nortek’s
      outstanding senior floating rate notes due 2010 and Nortek’s outstanding 9-7/8%
      senior subordinated notes due 2011, (4) the repurchase or rollover of
      management stock options and severance, transaction bonuses and change of
      control payments to management, and all related transactions in connection
      with
      the foregoing and (5) other than for purposes of clause (15) of
Section 6.07(b),
      the
      offering and sale of the NTK Senior Discount Notes and the use of proceeds
      thereof as described in the 2005 10-K.

     

    “Other
      Taxes”
has
      the
      meaning specified in Section 3.01(b).

     

    “Outstanding
      Amount”
means,
      on any date, the aggregate outstanding principal amount of the Loans on such
      date.

     

    “Parent”
means
      any direct or indirect parent company of the Borrower.

     

    “Participant”
has
      the
      meaning specified in Section 9.07(d).

     

    “Payment
      Default’ has
      the
      meaning specified in Section 7.01.

     

    “PBGC”
means
      the Pension Benefit Guaranty Corporation.

     

    “Permits”
means
      permits, licenses or other approvals. 

     

    “Permitted
      Business”
means
      any business conducted or proposed to be conducted as described in the 2005
      10-K
      by the Borrower and its Restricted Subsidiaries on the Closing Date and other
      businesses reasonably related or ancillary thereto.

     

    “Permitted
      Debt”
has
      the
      meaning specified in Section
      6.06(b).

     

    “Permitted
      Investments”
      means:

     

    (1) any
      Investment in the Borrower or in a Restricted Subsidiary of the
      Borrower;

     

    (2) any
      Investment in Cash Equivalents;

     

    (3) any
      Investment by the Borrower or any Restricted Subsidiary of the Borrower in
      a
      Person, if as a result of such Investment:

     

    (a) such
      Person becomes a Restricted Subsidiary of the Borrower; or

     

    (b) such
      Person is merged, consolidated or amalgamated with or into, or transfers or
      conveys substantially all of its assets to, or is liquidated into, the Borrower
      or a Restricted Subsidiary of the Borrower;

     

    (4) any
      Investment made as a result of the receipt of noncash consideration from an
      Asset Sale or other sale of assets that was made pursuant to and in compliance
      with Section 6.09.

     

    (5) any
      Investment the payment for which consists of Equity Interests (other than
      Disqualified Stock) of the Borrower or any Parent (which Investment, in the
      case
      of any Parent, is contributed to the common equity capital of the Borrower;
      provided
      that any
      such contribution shall be excluded from Section 6.07(a)(3)(b));

     

    (6) Hedging
      Obligations;

     

    (7) any
      Investment to the extent such Investment, when taken together with all other
      Investments made pursuant to this clause (7) and outstanding on the date of
      such Investment, do not exceed the greater of (x) $50.0 million or (y) 5%
      of Consolidated Tangible Assets of the Borrower;

     

    (8) any
      Investment of the Borrower or any of its Restricted Subsidiaries existing on
      February 15, 2005; and any extension, modification or renewal of any such
      Investment, but only to the extent not involving additional advances,
      contributions or other Investments of cash or other assets or other increases
      thereof (other than as a result of the accrual or accretion of interest or
      original issue discount or the issuance of pay-in-kind securities, in each
      case,
      pursuant to the terms of such Investment as in effect on February 15,
      2005);

     

    (9) loans
      to
      employees that are approved in good faith by a majority of the Board of
      Directors of the Borrower (or the Board of Directors of Nortek in the case
      of
      Nortek and its Restricted Subsidiaries) in an amount not to exceed
      $5.0 million outstanding at any time;

     

    (10) any
      Investment acquired by the Borrower or any of its Restricted
      Subsidiaries:

     

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

     

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

     

    (11) Investments
      consisting of the licensing or contribution of intellectual property pursuant
      to
      joint marketing arrangements with other Persons;

     

    (12) Investments
      in joint ventures engaged in a Permitted Business not in excess of the greater
      of (x) $25.0 million or (y) 2.5% of Consolidated Tangible Assets
      of the Borrower, in the aggregate outstanding at any one time;

     

    (13) Investments
      in Unrestricted Subsidiaries not in excess of the greater of
      (x) $25.0 million or (y) 2.5% of Consolidated Tangible Assets of
      the Borrower, in the aggregate outstanding at any one time;

     

    (14) Investments
      by the Borrower or a Restricted Subsidiary of the Borrower in a Receivables
      Subsidiary or any Investment by a Receivables Subsidiary in any other Person,
      in
      each case, in connection with a Qualified Receivables Transaction;
      and

     

    (15) any
      Guarantee otherwise permitted under this Agreement.

     

    The
      amount of Investments outstanding at any time pursuant to clauses (7), (12)
      and (13) of this definition shall be reduced by an amount equal to the net
      reduction in Investments by the Borrower and its Restricted Subsidiaries,
      subsequent to February 15, 2005, resulting from payments of interest on
      Indebtedness, dividends, repayments of loans or advances or other transfers
      of
      assets, in each case to the Borrower or any such Restricted Subsidiary from
      any
      such Investment, or from the net cash proceeds from the sale of any such
      Investment, or from a redesignation of an Unrestricted Subsidiary to a
      Restricted Subsidiary, not to exceed, in the case of any Investment, the amount
      of the Investment previously made by the Borrower or any Restricted Subsidiary
      in such Person or Unrestricted Subsidiary.

     

    “Permitted
      Liens”
      means:

     

    (1) Liens
      on
      the assets of the Borrower securing Indebtedness and other obligations
      (including Guarantees) incurred pursuant to clause (1),
      (15)
      or (20)
      of
Section 6.06(b);

     

    (2) Liens
      on
      the assets of a Restricted Subsidiary securing Indebtedness (other than a
      Guarantee of Indebtedness of the Borrower) and other obligations of such
      Restricted Subsidiary otherwise permitted under this Agreement;

     

    (3) Liens
      in
      favor of the Borrower or any Restricted Subsidiary of the Borrower;

     

    (4) Liens
      on
      property of a Person existing at the time such Person is merged with or into
      or
      consolidated with the Borrower or any Restricted Subsidiary of the Borrower;
      provided
      that
      such Liens were in existence prior to the contemplation of such merger or
      consolidation and do not extend to any assets other than those of the Person
      merged into or consolidated with the Borrower or the Restricted
      Subsidiary;

     

    (5) Liens
      on
      property existing at the time of acquisition thereof by the Borrower or any
      Restricted Subsidiary of the Borrower; provided
      that
      such Liens were in existence prior to the contemplation of such acquisition
      and
      do not extend to any property other than the property so acquired by the
      Borrower or the Restricted Subsidiary;

     

    (6) Liens
      to
      secure Indebtedness (including Capital Lease Obligations) permitted by
Section 6.06(b)(4)
      covering
      only the assets acquired with such Indebtedness;

     

    (7) Liens
      of
      the Borrower and its Restricted Subsidiaries existing on the Closing
      Date;

     

    (8) Liens
      incurred in the ordinary course of business of the Borrower or any Restricted
      Subsidiary of the Borrower with respect to obligations that do not exceed
      $10.0 million at any one time outstanding;

     

    (9) Liens
      to
      secure the performance of statutory obligations, surety or appeal bonds,
      performance bonds or other similar obligations (exclusive of obligations for
      the
      payment of borrowed money) incurred in the ordinary course of
      business;

     

    (10) Liens
      upon specific items of inventory, or other goods and proceeds of any Person
      securing such Person’s obligations in respect of bankers’ acceptances issued or
      created for the account of such Person to facilitate the purchase, shipment
      or
      storage of such inventory or other goods;

     

    (11) Liens
      incurred or deposits made in the ordinary course of business in connection
      with
      workers’ compensation, unemployment insurance and other types of social
      security, including any Lien securing letters of credit issued in the ordinary
      course of business consistent with past practice in connection
      therewith;

     

    (12) Liens
      to
      secure Indebtedness of any Foreign Restricted Subsidiary permitted by
Section 6.06(b)(16)
      covering
      only the assets of such Foreign Restricted Subsidiary;

     

    (13) Liens
      on
      assets of a Receivables Subsidiary arising in connection with a Qualified
      Receivables Transaction;

     

    (14) Liens
      for
      taxes, assessments, governmental charges or claims that are not yet due or
      are
      being contested in good faith by appropriate legal proceedings; provided
      that any
      reserve or other appropriate provision, if any, as shall be required in
      conformity with GAAP shall have been made therefor;

     

    (15) statutory
      Liens of landlords and carriers, warehousemen, mechanics, suppliers,
      materialmen, repairmen or other similar Liens arising in the ordinary course
      of
      business and with respect to amounts not yet delinquent or being contested
      in
      good faith by appropriate legal proceedings; provided
      that any
      reserve or other appropriate provision, if any, as shall be required in
      conformity with GAAP shall have been made therefor;

     

    (16) easements,
      rights-of-way, municipal and zoning ordinances and similar charges,
      encumbrances, title defects or other irregularities that do not materially
      interfere with the ordinary course of business of the Borrower or any of its
      Subsidiaries, taken as a whole;

     

    (17) leases
      or
      subleases or licenses granted to others in the ordinary course of business
      of
      the Borrower or any of its Restricted Subsidiaries, taken as a
      whole;

     

    (18) Liens
      encumbering property or assets under construction arising from progress or
      partial payments by a customer of the Borrower or any of its Restricted
      Subsidiaries relating to such property or assets;

     

    (19) any
      interest or title of a lessor in the property subject to any Capital Lease
      Obligation;

     

    (20) Liens
      arising from filing Uniform Commercial Code financing statements regarding
      leases;

     

    (21) Liens
      on
      property of, or on shares of stock or Indebtedness of, any Person existing
      at
      the time (A) such Person becomes a Restricted Subsidiary of the Borrower or
      (B) such Person or such property is acquired by the Borrower or any
      Restricted Subsidiary;

     

    (22) Liens
      arising from the rendering of a final judgment or order against the Borrower
      or
      any Restricted Subsidiary that does not give rise to an Event of
      Default;

     

    (23) Liens
      securing reimbursement obligations with respect to letters of credit that
      encumber documents and other property relating to such letters of credit and
      the
      products and proceeds thereof;

     

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

     

    (25) Liens
      encumbering customary initial deposits and margin deposits, and other Liens
      that
      are either within the general parameters customary in the industry and incurred
      in the ordinary course of business or otherwise permitted under the terms of
      the
      Credit Facilities, in each case securing Indebtedness under commodity
      agreements, interest rate agreements and currency agreements;

     

    (26) Liens
      solely on any cash earnest money deposits made by the Borrower or any of its
      Restricted Subsidiaries in connection with any letter of intent or purchase
      agreement permitted under this Agreement;

     

    (27) Liens
      (i) of a collection bank arising under Section 4-210 of the Uniform
      Commercial Code on items in the course of collection and (ii) in favor of a
      banking institution arising as a matter of law encumbering
      deposits (including the right of set-off) and which are within the general
      parameters customary in the banking industry; and

     

    (28) Liens
      encumbering reasonable customary initial deposits and margin deposits and
      similar Liens attaching to brokerage accounts incurred in the ordinary course
      of
      business and not for speculative purposes.

     

    “Permitted
      Refinancing Indebtedness”
means
      any Indebtedness of the Borrower or any of its Restricted Subsidiaries issued
      in
      exchange for, or the net proceeds of which are used to extend, refinance, renew,
      replace, defease or refund other Indebtedness of the Borrower or any of its
      Restricted Subsidiaries (other than intercompany Indebtedness); provided
      that:

     

    (1) the
      principal amount (or accreted value, if applicable) of such Permitted
      Refinancing Indebtedness does not exceed the principal amount (or accreted
      value, if applicable) of the Indebtedness so extended, refinanced, renewed,
      replaced, defeased or refunded (plus all accrued interest thereon and the amount
      of any reasonably determined premium and other amounts necessary to accomplish
      such refinancing and such reasonable fees and expenses incurred in connection
      therewith);

     

    (2) such
      Permitted Refinancing Indebtedness has a final maturity date equal to or later
      than the final maturity date of, and has a Weighted Average Life to Maturity
      equal to or greater than the Weighted Average Life to Maturity of, the
      Indebtedness being extended, refinanced, renewed, replaced, defeased or
      refunded;

     

    (3) if
      the
      Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded
      is subordinated in right of payment to the Loans, such Permitted Refinancing
      Indebtedness has a final maturity date later than the final maturity date of,
      and is subordinated in right of payment to, the Loans on terms at least as
      favorable to the Lenders as those contained in the documentation governing
      the
      Indebtedness being extended, refinanced, renewed, replaced, defeased or
      refunded; and

     

    (4) such
      Indebtedness is incurred either by the Borrower or by the Restricted Subsidiary
      who is the obligor on the Indebtedness being extended, refinanced, renewed,
      replaced, defeased or refunded.

     

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

     

    “PIK
      Interest”
has
      the
      meaning specified in Section
      2.06(b).

     

    “PIK
      Option”
has
      the
      meaning specified in Section 2.06(b).

     

    “Plan”
means
      any “employee benefit plan” (as such term is defined in Section 3(3)
      of ERISA) established by the Borrower or, with respect to any such plan that
      is
      subject to Section 412 of the Code or Title IV of ERISA, any ERISA
      Affiliate.

     

    “Portal”
has
      the
      meaning specified in Section 6.17.

     

    “Principals”
means
      the Equity Sponsor and its Affiliates.

     

    “Pro
      Forma Cost Savings”
means,
      with respect to any period, the reduction in net costs and related adjustments
      that (i) were directly attributable to an Asset Acquisition that occurred
      during the four-quarter period or after the end of the four-quarter period
      and
      on or prior to the Calculation Date and calculated on a basis that is consistent
      with Regulation S-X under the Securities Act as in effect and applied as of
      August 27, 2004, (ii) were actually implemented by the business that was
      the subject of any such Asset Acquisition within six months after the date
      of
      the Asset Acquisition and prior to the Calculation Date that are supportable
      and
      quantifiable by the underlying accounting records of such business or
      (iii) relate to the business that is the subject of any such Asset
      Acquisition and that the Borrower reasonably determines are probable based
      upon
      specifically identifiable actions to be taken within six months of the date
      of
      the Asset Acquisition and, in the case of each of (i), (ii) and (iii)
      of this definition, are described, as provided below, in an Officers’
Certificate, as if all such reductions in costs had been effected as of the
      beginning of such period. Pro Forma Cost Savings described above shall be
      accompanied by a certificate delivered to the Administrative Agent from the
      Borrower’s Chief Financial Officer that outlines the specific actions taken or
      to be taken, the net cost savings achieved or to be achieved from each such
      action and that, in the case of clause (iii) above, such savings have been
      determined to be probable.

     

    “Pro
      Rata Share”
means,
      with respect to each Lender at any time, a fraction (expressed as a percentage,
      carried out to the ninth decimal place), the numerator of which is the principal
      amount of the Loans of such Lender at such time and the denominator of which
      is
      the Outstanding Amount. The initial Pro Rata Share of each Lender is set forth
      opposite the name of such Lender on Schedule 2.01
      or in
      the Assignment and Assumption pursuant to which such Lender becomes a party
      hereto, as applicable.

     

    “Public
      Equity Offering”
means
      an offer and sale for cash of common stock (other than Disqualified Stock)
      of the Borrower or any Parent pursuant to a registration statement that has
      been
      declared effective, by the Commission pursuant to the Securities Act (other
      than
      a registration statement on Form S-8 or otherwise relating to equity
      securities issuable under any employee benefit plan of the
      Borrower).

     

    “Purchase
      Money Note”
means
      a
      promissory note evidencing a line of credit, or evidencing other Indebtedness,
      owed to the Borrower or any Restricted Subsidiary of the Borrower in connection
      with a Qualified Receivables Transaction, which note shall be repaid from cash
      available to the maker of such note, other than amounts required to be
      established as reserves pursuant to agreement, amounts paid to investors in
      respect of interest, principal and other amounts owing to such investors and
      amounts paid in connection with the purchase of newly generated
      receivables.

     

    “Qualified
      Receivables Transaction”
means
      any transaction or series of transactions that may be entered into by the
      Borrower or by any Restricted Subsidiary of the Borrower pursuant to which
      the
      Borrower or any Restricted Subsidiary of the Borrower may sell, convey or
      otherwise transfer to a Receivables Subsidiary, any accounts
      receivable (whether now existing or arising in the future) of the Borrower
      or any Restricted Subsidiary of the Borrower and any asset related thereto,
      including, without limitation, all collateral securing such accounts receivable,
      and all Guarantees or other obligations in respect of such accounts receivable,
      proceeds of such accounts receivable and other assets that are customarily
      transferred, or in respect of which security interests are customarily granted,
      in connection with an asset securitization transaction involving accounts
      receivable.

     

    “Receivables
      Subsidiary”
means
      a
      Subsidiary of the Borrower (other than a Guarantor) that engages in no
      activities other than in connection with the financing of accounts receivables
      and that is designated by the Board of Directors of the Borrower (as provided
      below) as a Receivables Subsidiary (a) no portion of the Indebtedness or
      any other Financing Obligations (contingent or otherwise) of which (i) is
      Guaranteed by the Borrower or any other Restricted Subsidiary of the Borrower
      (excluding Guarantees of obligations (other than the principal of, and interest
      on, Indebtedness) pursuant to Standard Securitization Undertakings),
      (ii) is recourse to or obligates the Borrower or any other Restricted
      Subsidiary of the Borrower in any way other than pursuant to Standard
      Securitization Undertakings or (iii) subjects any property or asset of the
      Borrower or any other Restricted Subsidiary of the Borrower, directly or
      indirectly, contingently or otherwise to the satisfaction thereof, other than
      pursuant to Standard Securitization Undertakings, (b) with which neither
      the Borrower nor any other Restricted Subsidiary of the Borrower has any
      material contract, agreement, arrangement or understanding (except in connection
      with a Purchase Money Note or Qualified Receivables Transaction) other than
      on
      terms no less favorable to the Borrower or such other Restricted Subsidiary
      of
      the Borrower than those that might be obtained at the time from Persons that
      are
      not Affiliates of the Borrower, other than fees payable in the ordinary course
      of business in connection with servicing accounts receivable, and (c) to
      which neither the Borrower nor any other Restricted Subsidiary of the Borrower
      has any obligation to maintain or preserve such entity’s financial condition or
      cause such entity to achieve a certain level of operating results. Any such
      designation by the Board of Directors of the Borrower shall be evidenced to
      the
      Administrative Agent by filing with the Administrative Agent a certified copy
      of
      the resolution of the Board of Directors of the Borrower giving effect to such
      designation and an Officers’ Certificate certifying, to the best of such
      officer’s knowledge and belief after consulting with counsel, that such
      designation complied with the foregoing conditions.

     

    “Register”
has
      the
      meaning specified in Section 9.07(c).

     

    “Related
      Party”
means
      (1) any controlling stockholder, partner, member, 80% (or more) owned
      Subsidiary, or immediate family member (in case of an individual) of any
      Principal or (2) any trust, corporation, partnership or other entity, the
      beneficiaries, stockholders, partners, owners or Persons beneficially holding
      an
      80% or more controlling interest of which consist of any one or more Principals
      and/or such other Persons referred to in the immediately preceding
      clause.

     

    “Release”
means
      any spilling, leaking, seepage, pumping, pouring, emitting, emptying,
      discharging, injecting, escaping, leaching, dumping, disposing or depositing
      in,
      into or onto the environment.

     

    “Replacement
      Assets”
means
      (1) noncurrent tangible assets that will be used or useful in a Permitted
      Business or (2) all or substantially all of the assets of a Permitted
      Business or a majority of the Voting Stock of any Person engaged in a Permitted
      Business that will become on the date of acquisition thereof a Restricted
      Subsidiary.

     

    “Required
      Lenders”
means,
      as of any date of determination, Lenders having more than 50% of Outstanding
      Amount.

     

    “Restricted
      Investment”
means
      an Investment other than a Permitted Investment.

     

    “Restricted
      Payments”
has
      the
      meaning specified in Section 6.07(a).

     

    “Restricted
      Subsidiary”
of
      a
      Person means any Subsidiary of the referent Person that is not an Unrestricted
      Subsidiary.

     

    “Rollover
      Fee”
has
      the
      meaning specified in Section
      2.06(f).

     

    “S&P”
means
      Standard & Poor’s Ratings Services, or any successor to the rating agency
      business thereof.

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations of
      the Commission promulgated thereunder.

     

    “Senior
      Subordinated Notes”
means
      the 8.50% unsecured senior subordinated notes of Nortek due 2014 in an aggregate
      principal amount of $625,000,000 issued on August 27, 2004, and any
      exchange notes issued in exchange therefor, in each case, pursuant to the Senior
      Subordinated Notes Indenture.

     

    “Senior
      Subordinated Notes Indenture”
means
      the Indenture dated as of August 27, 2004 among U.S. Bank National Association,
      as trustee, Nortek and the guarantors.

     

    “Significant
      Subsidiary”
means
      any Subsidiary that would be a “significant subsidiary” as defined in
      Article I, Rule 1-02 of Regulation S-X, promulgated pursuant to
      the Securities Act, as such Regulation is in effect on August 27,
      2004.

     

    “Solvent”
and
      “Solvency”
mean,
      with respect to any Person on any date of determination, that on such date
      (a) the fair value of the property of such Person is greater than the total
      amount of liabilities, including, without limitation, contingent liabilities,
      of
      such Person, (b) the present fair salable value of the assets of such
      Person is not less than the amount that will be required to pay the probable
      liability of such Person on its debts as they become absolute and matured,
      (c) such Person does not intend to, and does not believe that it will,
      incur debts or liabilities beyond such Person’s ability to pay such debts and
      liabilities as they mature, and (d) such Person is not engaged in business
      or a
      transaction, and is not about to engage in business or a transaction, for which
      such Person’s property would constitute an unreasonably small capital. The
      amount of contingent liabilities at any time shall be computed as the amount
      that, in the light of all the facts and circumstances existing at such time,
      represents the amount that can reasonably be expected to become an actual or
      matured liability.

     

    “SPC”
has
      the
      meaning specified in Section 9.07(g).

     

    “Specified
      Equity Issuance”
means
      the sale or issuance by the Borrower or any Parent of any of its Equity
      Interests in a Public Equity Offering.

     

    “Specified
      Indebtedness”
means
      any Indebtedness Incurred by the Borrower after the Closing Date pursuant to
      Section
      6.06(a),
      Section
      6.06(b)(1),
      Section
      6.06(b)(5)
      (to the
      extent the net proceeds of the applicable Permitted Refinancing Indebtedness
      are
      used to refund, refinance or replace Indebtedness that is permitted by this
      Agreement to be incurred under Section
      6.06(a),
      Section
      6.06(b)(2),
      Section
      6.06(b)(3)
      or
Section
      6.06(b)(15))
      or
Section
      6.06(b)(15).

     

    “Sponsor
      Management Agreement”
means
      the Management Agreement dated August 27, 2004 between THL Managers V, LLC
      and Nortek Holdings, Inc.

     

    “Standard
      Securitization Undertakings”
means
      representations, warranties, covenants and indemnities entered into by the
      Borrower or any Restricted Subsidiary of the Borrower that are reasonably
      customary in an accounts receivable transaction.

     

    “Statutory
      Reserves”
means
      a
      fraction (expressed as a decimal), the numerator of which is the number one
      and the denominator of which is the number one minus the aggregate of the
      maximum reserve percentages (including any marginal, special, emergency or
      supplemental reserves) expressed as a decimal established by the Board and
      any
      other banking authority, domestic or foreign, to which the Administrative Agent
      or any Lender (including any branch, Affiliate or other fronting office making
      or holding a Loan) is subject for Eurocurrency Liabilities (as defined in
      Regulation D of the Board). The Loans shall be deemed to constitute
      Eurocurrency Liabilities (as defined in Regulation D of the Board) and to
      be subject to such reserve requirements without benefit of or credit for
      proration, exemptions or offsets that may be available from time to time to
      any
      Lender under such Regulation D. Statutory Reserves shall be adjusted
      automatically on and as of the effective date of any change in any reserve
      percentage.

     

    “Stock
      Purchase Agreement”
means
      the Stock Purchase Agreement, dated as of July 15, 2004, by and among Kelso
      Investment Associates VI, L.P., the other sellers named therein, THL
      Buildco Holdings, Inc. and THL Buildco, Inc.

     

    “Subsidiary”
means,
      with respect to any specified Person: (1) any corporation, association or
      other business entity of which more than 50% of the total voting power of shares
      of Capital Stock entitled (without regard to the occurrence of any contingency)
      to vote in the election of directors, managers or trustees thereof is at the
      time owned or controlled, directly or indirectly, by such Person or one or
      more
      of the other Subsidiaries of that Person (or a combination thereof); and
      (2) any partnership (a) the sole general partner or the managing
      general partner of which is such Person or a Subsidiary of such Person or
      (b) the only general partners of which are such Person or one or more
      Subsidiaries of such Person (or any combination thereof).

     

    “Super
      Majority Lenders”
has
      the
      meaning specified in Section 9.01.

     

    “Syndication
      Agent”
means
      Credit Suisse Securities (USA) LLC, as Syndication Agent under the Loan
      Documents. 

     

    “Taxes”
has
      the
      meaning specified in Section 3.01(a).

     

    “Trustee”
has
      the
      meaning assigned to such term in the Exchange Note Indenture. 

     

    “2005
      10-K”
means
      the Annual Report on Form 10-K for the fiscal year ended December 31, 2005,
      filed by the Borrower with the Commission on March 10, 2006.

     

    “2006
      10-Q”
means
      the Quarterly Report on Form 10-Q for the fiscal quarter ended April 1,
      2006, filed by the Borrower with the Commission on the Closing
      Date.

     

    “United
      States”
and
      “U.S.”
mean
      the United States of America.

     

    “Unrestricted
      Subsidiary”
means
      any Subsidiary of the Borrower that is designated by the Board of Directors
      of
      the Borrower as an Unrestricted Subsidiary pursuant to a Board Resolution,
      but
      only to the extent that such Subsidiary:

     

    (1) has
      no
      Indebtedness other than Non-Recourse Debt;

     

    (2) is
      a
      Person with respect to which neither the Borrower nor any of its Restricted
      Subsidiaries has any direct or indirect obligation (a) to subscribe for
      additional Equity Interests or (b) to maintain or preserve such Person’s
      financial condition or to cause such Person to achieve any specified levels
      of
      operating results; and

     

    (3) is
      not a
      guarantor or does not otherwise directly or indirectly provide credit support
      for any Indebtedness of the Borrower or any of its Restricted Subsidiaries
      at
      the time of such designation unless such Guarantee or credit support is released
      upon such designation.

     

    Any
      designation of a Restricted Subsidiary of the Borrower as an Unrestricted
      Subsidiary shall be evidenced to the Administrative Agent by filing with the
      Administrative Agent a certified copy of the Board Resolution giving effect
      to
      such designation and an Officers’ Certificate certifying that such designation
      complied with the preceding conditions and was permitted by Section 6.07.
      If, at
      any time, any Unrestricted Subsidiary would fail to meet the preceding
      requirements as an Unrestricted Subsidiary, it shall thereafter cease to be
      an
      Unrestricted Subsidiary for purposes of this Agreement and any Indebtedness
      of
      such Subsidiary shall be deemed to be incurred by a Restricted Subsidiary of
      the
      Borrower as of such date and, if such Indebtedness is not permitted to be
      incurred as of such date under Section 6.06,
      the
      Borrower shall be in default.

     

    “USA
      PATRIOT Act”
means
      The Uniting and Strengthening America by Providing Appropriate Tools Required
      to
      Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub.
      L. No. 107-56 (signed into law on October 26,
      2001)).

     

    “Voting
      Stock”
of
      any
      Person as of any date means the Capital Stock of such Person that is at the
      time
      entitled to vote in the election of the Board of Directors of such
      Person.

     

    “Weighted
      Average Life to Maturity”
means,
      when applied to any Indebtedness at any date, the number of years obtained
      by
      dividing: (1) the sum of the products obtained by multiplying (a) the
      amount of each then remaining installment, sinking fund, serial maturity or
      other required payments of principal, including payment at final maturity,
      in
      respect thereof, by (b) the number of years (calculated to the nearest
      one-twelfth) that will elapse between such date and the making of such payment;
      by (2) the then outstanding principal amount of such
      Indebtedness.

     

    1.02  Other
      Interpretive Provisions.
      With
      reference to this Agreement and each other Loan Document, unless otherwise
      specified herein or in such other Loan Document:

     

    (a)
        The
      meanings of defined terms are equally applicable to the singular and plural
      forms of the defined terms.

     

    (b)
        (i)
      The
      words
“herein,” “hereto,” “hereof” and “hereunder” and words of similar import when
      used in any Loan Document shall refer to such Loan Document as a whole and
      not
      to any particular provision thereof.

     

    (ii)
        Article,
      Section, Exhibit and Schedule references are to the Loan Document in which
      such
      reference appears.

     

    (iii)
        The
      term
“including” is by way of example and not limitation.

     

    (iv)
        The
      term
“documents” includes any and all instruments, documents, agreements,
      certificates, notices, reports, financial statements and other writings, however
      evidenced, whether in physical or electronic form.

     

    (v)
        The
      term
“principal” with respect to any Loan includes the original principal amount of
      such Loan on the Closing Date and any increase thereof as a result of the
      payment of PIK Interest. 

     

    (c)
        In
      the
      computation of periods of time from a specified date to a later specified date,
      the word “from” means “from and including”; the words “to” and “until” each mean
“to but excluding”; and the word “through” means “to and
      including.”

     

    (d)
        Section
      headings herein and in the other Loan Documents are included for convenience
      of
      reference only and shall not affect the interpretation of this Agreement or
      any
      other Loan Document.

     

    1.03  Accounting
      Terms.
      All
      accounting terms not specifically or completely defined herein shall be
      construed in conformity with GAAP.

     

    1.04  References
      to Laws. Unless otherwise expressly provided herein, references to any Law
      shall
      include all statutory and regulatory provisions consolidating, amending,
      replacing, supplementing or interpreting such Law.

     

    1.05  Times
      of
      Day. Unless otherwise specified, all references herein to times of day shall
      be
      references to Eastern time (daylight or standard, as
      applicable).

     

    1.06  Timing
      of
      Payment or Performance. When the payment of any obligation or the performance
      of
      any covenant, duty or obligation is stated to be due or performance required
      on
      a day which is not a Business Day, the date of such payment (other than as
      described in the definition of Interest Period) or performance shall extend
      to
      the immediately succeeding Business Day.

     

    ARTICLE
      II

     

    LOANS

     

    2.01  Commitments.
      (a)
      Subject
      to the terms and conditions and relying upon the representations and warranties
      herein set forth, each Lender agrees, severally and not jointly, to make a
      loan (individually, an “Initial
      Loan”
and
      collectively, the “Initial
      Loans”)
      to the
      Borrower on the Closing Date in a principal amount not to exceed its Commitment.
      Amounts repaid or prepaid in respect of the Loans may not be
      reborrowed.

     

    (b)
        The
      Commitments shall terminate on the earliest of (i) the making of the
      Initial Loans on the Closing Date or (ii) 5:00 p.m., New York
      City time, on May 12, 2006, if the Initial Loans are not made on or before
      such date. The Borrower may terminate or reduce the Commitments at any time
      by
      providing irrevocable written or fax notice thereof to the Administrative
      Agent.

     

    2.02  Procedure
      for Borrowing.
      In
      order to request the Borrowing to be made on the Closing Date, the Borrower
      shall notify the Administrative Agent of such request by telephone, not later
      than 12:00 noon (New York City time) one Business Day before the
      Closing Date. Such telephonic borrowing request shall be confirmed promptly
      in
      writing by hand delivery or fax to the Administrative Agent of a written
      Borrowing Request, signed by or on behalf of the Borrower and each such
      telephonic borrowing request and written Borrowing Request shall specify the
      following information: (i) the date of such Borrowing (which shall be a
      Business Day), (ii) the number and location of the account to which funds
      are to be disbursed and (iii) the amount of such Borrowing. The
      Administrative Agent shall promptly advise the Lenders of any notice given
      pursuant to this Section 2.02 (and the contents thereof), and of each
      Lender’s portion of the requested Borrowing.

     

    2.03  Maturity;
      Extended Loans; Exchange Notes. (a)
      The
      Initial Loans will mature on the Initial Maturity Date; provided,
      however,
      that if the Initial Loans have not been repaid on or prior to the Initial
      Maturity Date, the maturity date of each Initial Loan outstanding on such date
      shall automatically be extended, without the need for any action by any party
      hereto, until the Final Maturity Date (any Initial Loan so extended, an
“Extended
      Loan”).

     

    (b)
        (i)
      Each
      Lender will have the option at any time on or after the Initial Maturity Date
      to
      receive Exchange Notes in exchange for all (but not a portion of) the Extended
      Loans of such Lender (including any interest thereon not required to be
      paid in cash) then outstanding pursuant to Section 6.17
      (each
      such event being referred to herein as an “Exchange”);
      provided
      that the
      Borrower shall not be required to issue Exchange Notes until it shall have
      received Exchange Requests to issue not less than $25,000,000 aggregate
      principal amount of Exchange Notes.

     

    (ii)
        The
      principal amount of the Exchange Notes will equal 100.0% of the aggregate
      principal amount (including any accrued interest not required to be paid in
      cash) of the Loans for which they are exchanged. The Exchange Notes will rank
      pari
      passu
      with the
      Extended Loans and will have the terms set forth in the Exchange Note Indenture.
      On any date an Exchange occurs (an “Exchange
      Date”),
      the
      Borrower shall, pursuant to the provisions of this Article II, pay any
      accrued and unpaid interest required to be paid on the Loans so exchanged.
      If a
      Default shall have occurred and be continuing on any Exchange Date, any notices
      given or cure periods commenced while the Loan was outstanding shall be deemed
      given or commenced (as of the actual dates thereof) for all purposes with
      respect to the Exchange Notes (with the same effect as if the Exchange
      Notes had been outstanding as of the actual dates thereof). Receipt by a Lender
      of the Exchange Notes and all amounts due in respect of the corresponding Loans
      through the Exchange Date shall be in satisfaction of, and shall constitute
      the
      discharge of, the corresponding Loans and the Borrower will have no further
      obligations in respect of such Loans.

     

    (iii)
        In
      order
      to effect an Exchange, a Lender shall provide the Administrative Agent and
      the
      Borrower written or fax notice (an “Exchange
      Request”)
      in the
      form attached hereto as Exhibit A at least seven Business Days prior to an
      Exchange Date  selected by such Lender for an Exchange in compliance with
      clause (ii) above, together with such other information as may be
      reasonably requested by the Administrative Agent. Each Exchange Request shall
      specify (A) the Lender’s legal name; (B) the Exchange Date selected by
      such Lender; (C) the principal amount of the Loans to be exchanged pursuant
      to the applicable notice and (D) the principal amount of such Exchange Notes
      to
      be represented by Fixed Rate Exchange Notes (whether in connection with the
      sale
      thereof to a third party or as otherwise provided by this Agreement) and
      Increasing Rate Exchange Notes. Upon receipt of an Exchange Request, the
      Administrative Agent shall send, on the date that is five Business Days prior
      to
      the Exchange Date specified in such Exchange Request, written or fax notice
      of
      such proposed Exchange to the Depositary (as defined in the Exchange Note
      Indenture), with a copy to the Borrower, that shall specify the information
      contained in such Exchange Request.

     

    2.04  Optional
      and Mandatory Prepayments.
      (a)
      The
      Borrower shall have the right at any time and from time to time to prepay the
      Loans, in whole or in part, without premium or penalty, upon at least one
      Business Day’s prior written or fax notice (or telephone notice promptly
      confirmed by written or fax notice) to the Administrative Agent before
      12:30 p.m., New York City time; provided, however, that each partial
      optional prepayment shall be in an amount that is an integral multiple of
      $1,000,000 and not less than $5,000,000. If such notice is given by the
      Borrower, the Borrower shall make such prepayment and the payment amount
      specified in such notice shall be due and payable on the date specified
      therein.

     

    (b)
        In
      the
      event and on each occasion at any time on or prior to the date on which any
      Loans or Increasing Rate Exchange Notes commence to accrue interest at a rate
      per annum equal to the Interest Rate Cap (the “Mandatory
      Prepayment Termination Date”)
      that
      (a) a Specified Equity Issuance occurs or (b) the Borrower incurs or
      issues any Specified Indebtedness, the Borrower shall promptly, but in any
      event
      within five Business Days after the receipt thereof by the Borrower or any
      Parent, apply 100% of the Net Proceeds therefrom to prepay outstanding
      Loans.

     

    (c)
        If
      the
      Borrower shall optionally redeem any Exchange Notes (other than any Fixed Rate
      Exchange Notes) pursuant to the terms of the Exchange Note Indenture, then
      the
      Borrower shall, promptly, but in any event within five Business Days after
      such
      redemption, prepay Loans on a pro rata
      basis
      with the Exchange Notes so redeemed.

     

    (d)
        All
      optional and mandatory prepayments under this Section 2.04
      shall be
      subject to Section 3.02
      but
      otherwise without premium or penalty. All optional and mandatory prepayments
      under this Section 2.04
      shall be
      accompanied by accrued and unpaid interest on the principal amount to be prepaid
      to, but excluding, the date of payment.

     

    (e)
        Notwithstanding
      the foregoing, the Borrower may rescind or postpone any notice of prepayment
      under Section 2.04(a)
      if such
      prepayment would have resulted from a refinancing of all of the Loans, which
      refinancing shall not be consummated or otherwise shall be delayed.

     

    2.05  Repayment
      of Loans.
      The
      Borrower shall repay to the Administrative Agent for the ratable account of
      each
      Lender on the Final Maturity Date the aggregate principal amount of all Loans
      outstanding on such date.

     

    2.06  Interest
      and Fees

     

    (a)
        (i)
      Subject to the provisions of Section 2.06(c),
      the
      Initial Loans shall bear interest on the outstanding principal amount thereof
      for each Interest Period at a rate per annum equal to the Adjusted LIBO Rate
      for
      such Interest Period plus
      the
      Applicable Initial Loan Percentage.

     

    (ii)
        Subject
      to the provisions of Sections 2.06(c),
      Extended Loans (and Increasing Rate Exchange Notes) shall bear interest for
      each
      Interest Period on the unpaid principal thereof at a rate per annum equal to
      the
      interest rate in effect with respect to the Initial Loans on the Business Day
      immediately preceding the Initial Maturity Date plus
      100
      basis points plus
      the
      Applicable Extended Loan Percentage.

     

    (iii)
        Notwithstanding
      the foregoing clauses (i) and (ii) (but subject to the provisions in
Section 2.06(c)),
      the
      interest rate borne by the Loans (and Increasing Rate Exchange Notes) in any
      Interest Period shall not exceed 11.00% per annum (the “Interest
      Rate Cap”).

     

    (iv)
        Except
      as
      otherwise provided in Section
      2.06(b),
      interest on the Initial Loans and Extended Loans (and Increasing Rate Exchange
      Notes) shall be payable entirely in cash. 

     

    (b)
        (i)
      Notwithstanding anything to the contrary in Section 2.06(a),
      the
      Borrower may elect, at its option (the “PIK
      Option”),
      to
      pay interest on the Loans on any Interest Payment Date entirely by increasing
      the principal amount of the Loans by the amount accrued on the outstanding
      principal amount of the Loans (including principal amounts representing
      capitalized interest under this paragraph) during the applicable Interest Period
      at a rate as set forth in Section 2.06(a)
      (the
“PIK
      Interest”).
      If
      the Borrower exercises the PIK Option with respect to any Interest Period,
      an
      amount equal to the unpaid interest accrued on each Lender’s Loan during such
      Interest Period will be added to the principal amount of such Loan on the
      applicable Interest Payment Date, and such accrued interest will be deemed
      to
      have been paid with the increase of the principal amount of such Loan in such
      amount. Following an increase in the principal amount of the Loans as a result
      of the payment of PIK Interest, the Loans shall bear interest on such increased
      principal amount from and after the date of such payment of PIK Interest. The
      Borrower must elect the form of interest payment for each Interest Period by
      delivering a notice to the Administrative Agent, in the form of Exhibit B
      at least five Business Days prior to the end of such Interest Period. The
      Administrative Agent shall promptly deliver a corresponding notice to all
      Lenders. In the absence of the due exercise by the Borrower of the PIK Option,
      interest on the Loans will be payable entirely in cash.

     

    (ii)
        Notwithstanding
      the foregoing, the Borrower shall make payments of accrued interest in cash
      in
      an amount and at a time such that the Extended Loans outstanding will not be
      considered “an applicable high yield discount obligation” within the meaning of
      Section 163(i)(2) of the Code. As such, the Borrower shall pay by the end
      of the first Interest Payment Date ending after the fifth anniversary of the
      Closing Date, and to the extent necessary on any Interest Payment Date
      thereafter an amount such that at no time during the continued term of the
      Extended Loans will there be accrued but unpaid interest on the Extended Loans
      exceeding an amount equal to the product of (i) the original “issue price”
of the Initial Loans as of the Closing Date (within the meaning of
      Section 1273(b) and Section 1274(a) of the Code) and (ii) the
      Extended Loans’ yield to maturity.

     

    (iii)
        Notice
      of
      the mandatory payment to be made pursuant to this Section 2.06(b)
      shall be
      given in the manner provided for in Section 9.02
      not less
      than 30 days nor more than 60 days prior to the date of such payment,
      to the Administrative Agent and each Lender receiving such payment. At the
      Borrower’s request, the Administrative Agent shall give notice of the mandatory
      payment in the Borrower’s name and at the Borrower’s expense; provided,
      however,
      that
      the Borrower shall deliver to the Administrative Agent, at least 45 days
      prior to the payment date, an Officers’ Certificate requesting that the
      Administrative Agent give such notice at the Borrower’s expense and setting
      forth the information to be stated in such notice as provided as
      follows:

     

    (A)
        the
      date
      of such payment; and

     

    (B)
        the
      amount of such payment.

     

    (iv)
        The
      mandatory payment under this Section 2.06(b)
      shall be
      made on a pro rata basis among the Lenders, by lot or by such other method
      as
      the Administrative Agent in its sole discretion shall deem fair and appropriate
      (and in such manner as complies with applicable legal requirements);
provided,
      however,
      that no
      such payment shall reduce the portion of the principal amount at maturity of
      a
      Loan to less than $1,000.

     

    (v)
        Prior
      to
      12:30 p.m., New York City time, on the mandatory payment date, the Borrower
      shall deposit with the Administrative Agent the amount of money required to
      be
      paid pursuant to this Section 2.06(b).

     

    (c)
        Any
      past
      due amount of the Obligations shall accrue interest at a rate per annum at
      all
      times equal to the Default Rate. Accrued and unpaid interest on past due amounts
      (including interest on past due interest) shall be due and payable upon
      demand.

     

    (d)
        Interest
      on each Loan shall be due and payable in arrears (either in cash or, to the
      extent permitted by clause (b) above, by adding to the then outstanding
      principal amount of such Loan) on each Interest Payment Date applicable thereto
      and at such other times as may be specified herein. Interest hereunder shall
      be
      due and payable in accordance with the terms hereof before and after judgment,
      and before and after the commencement of any proceeding under any Debtor Relief
      Law.

     

    (e)
        
      The
      Borrower agrees to pay to the Administrative Agent, for its own account, the
      administration fee provided for in the Fee Letter at the times, in the amounts
      and on the terms set forth therein.

     

    (f)
        If
      the
      Initial Loans have not been repaid in full on or prior to the Initial Maturity
      Date, the Borrower shall pay on the Initial Maturity Date a rollover fee (the
      “Rollover
      Fee”)
      to
      each Lender in an amount equal to 2.00% of the aggregate principal amount of
      the
      Initial Loans of such Lender outstanding on the Initial Maturity Date. If any
      of
      the Loans (or related Exchange Notes) are repaid, redeemed or repurchased,
      as
      applicable, by the Borrower on or prior to the 180th day after the Initial
      Maturity Date, the applicable Lender on the Initial Maturity Date
      (notwithstanding any assignment of any Loans by such Lender subsequent to the
      Initial Maturity Date but prior to the date of such repayment, redemption or
      repurchase) will refund to the Borrower an amount equal to 50% of the Rollover
      Fee actually received by such Lender from the Borrower in respect of the Loans
      (or related Exchange Notes) repaid, redeemed or repurchased.

     

    2.07  Computation
      of Interest and Fees.
      All
      computations of fees and interest shall be made on the basis of a three hundred
      and sixty (360) day year and actual days elapsed (which results in more
      fees or interest, as applicable, being paid than if computed on the basis of
      a
      three hundred and sixty-five (365) day year). Interest shall accrue on each
      Loan for the day on which the Loan is made, and shall not accrue on a Loan,
      or
      any portion thereof, for the day on which the Loan or such portion is paid
      in
      accordance with the terms of this Agreement. Each determination by the
      Administrative Agent of an interest rate or fee hereunder shall be conclusive
      and binding for all purposes, absent manifest error.

     

    2.08  Evidence
      of Indebtedness

     

    (a)
        The
      Loans
      made by each Lender shall be evidenced by one or more accounts or records
      maintained by such Lender and evidenced by one or more entries in the Register
      maintained by the Administrative Agent (and the Administrative Agent shall
      act
      solely for purposes of Treasury Regulation Section 5f.103-1(c), as agent for
      the
      Borrower), in each case in the ordinary course of business, in which it shall
      record (i) the amount of each Loan made hereunder (including any principal
      amounts accrued pursuant to an exercise of the PIK Option), (ii) the amount
      of any principal or interest due and payable or to become due and payable from
      the Borrower to each Lender hereunder and (iii) the amount of any sum
      received by the Administrative Agent hereunder for the account of the Lenders
      and each Lender’s share thereof. The accounts or records maintained by the
      Administrative Agent and each Lender shall be prima
      facie
      evidence
      absent manifest error of the amount of the Loans made by the Lenders to the
      Borrower and the interest and payments thereon. Any failure to so record or
      any
      error in doing so shall not, however, limit or otherwise affect the obligation
      of the Borrower hereunder to pay any amount owing with respect to the
      Obligations. In the event of any conflict between the accounts and records
      maintained by any Lender and the accounts and records of the Administrative
      Agent in respect of such matters, the accounts and records of the Administrative
      Agent shall control in the absence of manifest error. Upon the request of any
      Lender made through the Administrative Agent, the Borrower shall execute and
      deliver to such Lender (through the Administrative Agent) a promissory note
      payable to such Lender, which shall evidence such Lender’s Loans in addition to
      such accounts or records. Each Lender may attach schedules to its promissory
      note and endorse thereon the date, amount and maturity of its Loans and payments
      with respect thereto.

     

    (a)
        Entries
      made in good faith by the Administrative Agent in the Register pursuant to
      Section
      2.08(a),
      and by
      each Lender in its account or accounts pursuant to Section
      2.08(a),
      shall
      be prima
      facie
      evidence
      of the amount of principal and interest due and payable or to become due and
      payable from the Borrower to, in the case of the Register, each applicable
      Lender and, in the case of such account or accounts, such Lender, under this
      Agreement and the other Loan Documents, absent manifest error; provided
      that the
      failure of the Administrative Agent or such Lender to make an entry, or any
      finding that an entry is incorrect, in the Register or such account or accounts
      shall not limit or otherwise affect the Obligations of the
      Borrower.

     

    2.09  Payments
      Generally 

     

    (a)
        All
      payments to be made by the Borrower shall be made without condition or deduction
      for any counterclaim, defense, recoupment or setoff. Except as otherwise
      expressly provided herein, all payments by the Borrower hereunder shall be
      made
      to the Administrative Agent, for the account of the respective Lenders to which
      such payment is owed, at the Administrative Agent’s Office. All payments shall
      be made in U.S. Dollars not later than 2:00 p.m. (New York City time)
      on the date specified herein. The Administrative Agent will promptly distribute
      to each Lender its Pro Rata Share of such payment in like funds as received
      by
      wire transfer to such Lender’s Lending Office. All payments received by the
      Administrative Agent after 2:00 p.m. (New York City time) shall be deemed
      received on the next succeeding Business Day and any applicable interest or
      fee
      shall continue to accrue.

     

    (b)
        If
      any
      payment to be made by the Borrower shall come due on a day other than a Business
      Day, payment shall be made on the next following Business Day, and such
      extension of time shall be reflected in computing interest or fees, as the
      case
      may be; provided,
      however,
      that,
      if such extension would cause payment of interest on or principal of Loans
      to be
      made in the next succeeding calendar month, such payment shall be made on the
      immediately preceding Business Day.

     

    (c)
        Unless
      the Borrower or any Lender has notified the Administrative Agent, prior to
      the
      date any payment is required to be made by it to the Administrative Agent
      hereunder, that the Borrower or Lender, as the case may be, will not make such
      payment, the Administrative Agent may assume that the Borrower or such Lender,
      as the case may be, has timely made such payment and may (but shall not be
      so
      required to), in reliance thereon, make available a corresponding amount to
      the
      Person entitled thereto. If and to the extent that such payment was not in
      fact
      made to the Administrative Agent in immediately available funds,
      then:

     

    (i)
        if
      the
      Borrower failed to make such payment, each Lender shall forthwith on demand
      repay to the Administrative Agent the portion of such assumed payment that
      was
      made available to such Lender in immediately available funds, together with
      interest thereon in respect of each day from and including the date such amount
      was made available by the Administrative Agent to such Lender to the date such
      amount is repaid to the Administrative Agent in immediately available funds
      at
      the Federal Funds Rate from time to time in effect or, if greater, a rate
      determined by the Administrative Agent in accordance with banking industry
      rules
      on interbank compensation; and

     

    (ii)
        if
      any
      Lender failed to make such payment, such Lender shall forthwith on demand pay
      to
      the Administrative Agent the amount thereof in immediately available funds,
      together with interest thereon for the period from the date such amount was
      made
      available by the Administrative Agent to the Borrower to the date such amount
      is
      recovered by the Administrative Agent (the “Compensation
      Period”)
      at a
      rate per annum equal to the Federal Funds Rate from time to time in effect
      or,
      if greater, a rate determined by the Administrative Agent in accordance with
      banking industry rules on interbank compensation. When such Lender makes payment
      to the Administrative Agent (together with all accrued interest thereon), then
      such payment amount (excluding the amount of any interest which may have accrued
      and been paid in respect of such late payment) shall constitute such Lender’s
      Loan included in the Borrowing. If such Lender does not pay such amount
      forthwith upon the Administrative Agent’s demand therefor, the Administrative
      Agent may make a demand therefor upon the Borrower, and the Borrower shall
      pay
      such amount to the Administrative Agent, together with interest thereon for
      the
      Compensation Period at a rate per annum equal to the rate of interest applicable
      to the Borrowing. Nothing herein shall be deemed to relieve any Lender from
      its
      obligation to fulfill its Commitment or to prejudice any rights which the
      Administrative Agent or the Borrower may have against any Lender as a result
      of
      any default by such Lender hereunder.

     

    A
      notice
      of the Administrative Agent to any Lender or any Borrower with respect to any
      amount owing under this Section
      2.09(c)
      shall be
      conclusive, absent manifest error.

     

    (d)
        If
      any
      Lender makes available to the Administrative Agent funds for any Initial Loan
      to
      be made by such Lender as provided in the foregoing provisions of this
Article
      II,
      and
      such funds are not made available to the Borrower by the Administrative Agent
      because the conditions precedent to the making of the Initial Loans set forth
      in
Article
      IV
      are not
      satisfied or waived in accordance with the terms hereof, the Administrative
      Agent shall promptly return such funds (in like funds as received from such
      Lender) to such Lender, without interest.

     

    (e)
        The
      obligations of the Lenders hereunder to make Initial Loans are several and
      not
      joint. The failure of any Lender to make the Initial Loans on the Closing Date
      shall not relieve any other Lender of its corresponding obligation to do so
      on
      such date, and no Lender shall be responsible for the failure of any other
      Lender to so make its Initial Loan.

     

    (f)
        Nothing
      herein shall be deemed to obligate any Lender to obtain the funds for the
      Initial Loan of such Lender in any particular place or manner or to constitute
      a
      representation by any Lender that it has obtained or will obtain the funds
      for
      such Initial Loan in any particular place or manner.

     

    (g)
        Whenever
      any payment received by the Administrative Agent under this Agreement or any
      of
      the other Loan Documents is insufficient to pay in full all amounts due and
      payable to the Administrative Agent and the applicable Lenders under or in
      respect of this Agreement and the other Loan Documents on any date, such payment
      shall be distributed by the Administrative Agent and applied by such
      Administrative Agent and the Lenders in the order of priority set forth in
      Section
      7.09.
      If the
      Administrative Agent receives funds for application to the Obligations of the
      Loan Parties under or in respect of the Loan Documents under circumstances
      for
      which the Loan Documents do not specify the manner in which such funds are
      to be
      applied, the Administrative Agent shall distribute such funds to each of the
      Lenders in accordance with such Lender’s Pro Rata Share, in repayment or
      prepayment of such of the outstanding Loans or other applicable Obligations
      then
      owing to such Lender.

     

    2.10  Sharing
      of Payments.
      If,
      other than as expressly provided elsewhere herein, any Lender shall obtain
      on
      account of the Loans made by it any payment (whether voluntary, involuntary,
      through the exercise of any right of setoff, or otherwise) in excess of its
      ratable share thereof, such Lender shall immediately (a) notify the
      Administrative Agent of such fact, and (b) purchase from the other Lenders
      such
      participations in the Loans made by them as shall be necessary to cause such
      purchasing Lender to share the excess payment in respect of such Loans, pro
      rata
      with each of them; provided, however, that if all or any portion of such excess
      payment is thereafter recovered from the purchasing Lender under any of the
      circumstances described in Section 9.06 (including pursuant to any settlement
      entered into by the purchasing Lender in its discretion), such purchase shall
      to
      that extent be rescinded and each other Lender shall repay to the purchasing
      Lender the purchase price paid therefor, together with an amount equal to such
      paying Lender’s ratable share (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,
      without further interest thereon. The Borrower agrees that any Lender so
      purchasing a participation from another Lender may, to the fullest extent
      permitted by law, exercise all its rights of payment (including the right of
      set-off, but subject to Section 9.09) with respect to such participation as
      fully as if such Lender were the direct creditor of the Borrower in the amount
      of such participation. The Administrative Agent will keep records (which shall
      be conclusive and binding in the absence of manifest error) of participations
      purchased under this Section 2.10 and will in each case notify the Lenders
      following any such purchases or repayments. Each Lender that purchases a
      participation pursuant to this Section 2.10 shall from and after such purchase
      have the right to give all notices, requests, demands, directions and other
      communications under this Agreement with respect to the portion of the
      Obligations purchased to the same extent as though the purchasing Lender were
      the original owner of the Obligations purchased.

     

    2.11  Change
      of
      Control Offer. (a)
      Upon
      the
      occurrence of a Change of Control, each Lender shall have the right to require
      the Borrower to prepay all or any part of such Lender’s Loans pursuant to an
      offer (the “Change
      of Control Offer”)
      on the
      terms set forth in this Agreement. In the Change of Control Offer, the Borrower
      shall offer to all Lenders to prepay all Loans by making a cash payment equal
      to
      100% of the principal amount thereof, plus accrued and unpaid interest, thereon,
      to the date of prepayment (the “Change
      of Control Prepayment”).
      All
      prepayments of Loans under this Section 2.11 shall be subject to Section
      3.03. 

     

    (b)
        Within
      30 days following any Change of Control, the Borrower shall mail a notice
      to the Administrative Agent and to each Lender stating:

     

    (i)
        that
      the
      Change of Control Offer is being made pursuant to this Section 2.11
      and that
      all Loans of all Lenders properly accepting such offer of prepayment will be
      prepaid;

     

    (ii)
        the
      amount of the Change of Control Prepayment and the prepayment date (the
“Change
      of Control Prepayment Date”),
      which
      may not be earlier than 30 days nor later than 60 days from the date
      such notice is mailed;

     

    (iii)
        that
      any
      Loans as to which such offer is not properly accepted will remain outstanding
      and will continue to accrue interest; 

     

    (iv)
        that,
      unless the Borrower defaults in the payment of the prepayment price of any
      Loans
      as to which the Change of Control Offer shall have been accepted, all Loans
      accepted for prepayment pursuant to the Change of Control Offer will cease
      to
      accrue interest on and after the Change of Control Prepayment Date;

     

    (v)
        that
      Lenders electing to have any Loans prepaid pursuant to a Change of Control
      Offer
      will be required to notify the Administrative Agent prior to the close of
      business on the third Business Day preceding the Change of Control Prepayment
      Date; and

     

    (vi)
        that
      Lenders will be entitled to withdraw their election to require the Borrower
      to
      prepay their Loans on the terms and conditions set forth in such
      notice.

     

    (c)
        On
      the
      Change of Control Prepayment Date, the Borrower shall, to the extent
      lawful:

     

    (i)
        prepay
      all Loans, or portions thereof, as to which the Change of Control Offer was
      accepted and not withdrawn; and

     

    (ii)
        deposit
      with the Administrative Agent an amount equal to the Change of Control
      Prepayment in respect of all Loans or portions thereof, as to which the Change
      of Control Offer was accepted and not withdrawn.

     

    (d)
        If
      the
      terms of the Nortek Credit Agreement prohibit the Borrower from making a Change
      of Control Offer or from prepaying the Loans pursuant thereto, prior to the
      mailing of the notice to Lenders described in clause (b) above, but in any
      event within 90 days following any Change of Control, the Borrower shall
      either:

     

    (i)
        repay
      in
      full all Indebtedness outstanding under the Nortek Credit Agreement or offer
      to
      repay in full all such Indebtedness and repay the Indebtedness of each lender
      who has accepted such offer; or

     

    (ii)
        obtain
      the requisite consent under the Nortek Credit Agreement to permit the prepayment
      of the Loans as described above.

     

    The
      Borrower must first comply with this Section 2.11(d)
      before
      it shall be required to prepay any Loans in the event of a Change of
      Control.

     

    (e)
        Notwithstanding
      the foregoing, the Borrower shall not be required to make a Change of Control
      Offer upon a Change of Control if (1) a third party makes the Change of Control
      Offer in the manner, at the times and otherwise in compliance with the
      requirements set forth in this Agreement applicable to a Change of Control
      Offer
      made by the Borrower and prepays all Loans as to which such Change of Control
      Offer was accepted and not withdrawn or (2) a notice of prepayment has been
      given pursuant to Section
      2.04
      unless
      and until there is a Default with respect to such prepayment or such notice
      has
      been rescinded or postponed pursuant to Section
      2.04(e).
      A
      Change of Control Offer may be made in advance of a Change of Control,
      conditional upon such Change of Control, if a definitive agreement is in place
      for the Change of Control at the time of making of the Change of Control
      Offer.

     

    (f)
        The
      Borrower shall publicly announce the results of the Change of Control Offer
      on
      or as soon as practicable after the Change of Control Prepayment
      Date.

     

    2.12  Asset
      Sale Offer 

     

    (a)
        Any
      Net
      Proceeds from Asset Sales that are not applied or invested as provided in
Section 6.09(b)
      shall
      constitute “Excess
      Proceeds.”
When
      the aggregate amount of Excess Proceeds exceeds $20.0 million, the Borrower
      shall make an offer (the “Asset
      Sale Offer”)
      to all
      Lenders and all holders of other Indebtedness that is pari
      passu
      with the
      Loans containing provisions similar to those set forth in Section 6.09
      with
      respect to offers to prepay or purchase with the proceeds of sales of assets
      to
      prepay the maximum principal amount of Loans, and such other pari
      passu
      Indebtedness that may be prepaid or purchased out of the Excess Proceeds. The
      offer price in any Asset Sale Offer shall be equal to 100% of the principal
      amount (in the case of the Loans), or accreted value or principal amount, as
      applicable (in the case of any other Indebtedness), plus, without duplication,
      accrued and unpaid interest, if any, to the date of prepayment or purchase,
      as
      applicable, and will be payable in cash (the “Excess
      Proceeds Prepayment”).
      All
      prepayments of Loans under this Section 2.12
      shall be
      subject to Section
      3.03.

     

    (b)
        If
      any
      Excess Proceeds remain after consummation of an Asset Sale Offer, the Borrower
      may use such Excess Proceeds for any purpose not otherwise prohibited by this
      Agreement. If the aggregate principal amount of all Loans and the accreted
      value
      or principal amount, as the case may be, of such other pari
      passu Indebtedness
      tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds,
      the
      Loans and such other pari
      passu Indebtedness
      to be prepaid or purchased shall be prepaid or purchased, as applicable, on
      a
      pro rata basis based on the principal amount of the Loans and the accreted
      value
      or principal amount, as applicable, of such other pari
      passu Indebtedness
      tendered. Upon completion of each Asset Sale Offer, the amount of Excess
      Proceeds shall be reset at zero.

     

    (c)
        To
      the
      extent that the aggregate principal amount of the Loans as to which an Asset
      Sale Offer is accepted by Lenders is less than the Excess Proceeds, the Borrower
      may use the remaining Excess Proceeds for general corporate purposes and such
      amounts shall no longer be deemed Excess Proceeds. If the aggregate principal
      amount of the Loans as to which an Asset Sale Offer is accepted by Lenders
      exceeds the amount of Excess Proceeds available to prepay the Loans, the
      Administrative Agent shall select the Loans to be prepaid on a pro rata
      basis.

     

    (d)
        Immediately
      following any Asset Sale Offer, the Borrower shall mail a notice to the
      Administrative Agent and to each Lender stating:

     

    (i)
        that
      the
      Asset Sale Offer is being made pursuant to this Section 2.12
      and that
      all Loans of all Lenders properly accepting such Asset Sale Offer will be
      prepaid;

     

    (ii)
        the
      amount of the Excess Proceeds Prepayment and the purchase date (the
“Excess
      Proceeds Prepayment Date”),
      which
      may not be earlier than 30 days nor later than 60 days from the date
      such notice is mailed;

     

    (iii)
        that
      any
      Loans as to which such offer is not properly accepted by the Lender thereof
      will
      remain outstanding and will continue to accrue interest;

     

    (iv)
        that,
      unless the Borrower defaults in the prepayment of any Loans as to which the
      Asset Sale Offer shall have been accepted by Lenders, all Loans accepted for
      prepayment pursuant to the Asset Sale Offer will cease to accrue interest on
      and
      after the Excess Proceeds Prepayment Date;

     

    (v)
        that
      Lenders electing to have any Loans prepaid pursuant to an Asset Sale Offer
      will
      be required to notify the Administrative Agent prior to the close of business
      on
      the third Business Day preceding the Excess Proceeds Prepayment Date;
      and

     

    (vi)
        that
      Lenders will be entitled to withdraw their election to require the Borrower
      to
      prepay their Loans on the terms and conditions set forth in such
      notice.

     

    (e)
        On
      the
      Excess Proceeds Prepayment Date, the Borrower shall, to the extent
      lawful:

     

    (i)
        prepay
      all Loans, or portions thereof, as to which the Asset Sale Offer was accepted
      by
      Lenders and not withdrawn; and

     

    (ii)
        deposit
      with the Administrative Agent an amount sufficient to pay the Excess Proceeds
      Prepayment in respect of all Loans or portions thereof, as to which the Asset
      Sale Offer was accepted by Lenders and not withdrawn.

     

    (f)
        The
      Borrower shall publicly announce the results of the Asset Sale Offer on or
      as
      soon as practicable after the Excess Proceeds Prepayment Date.

     

    ARTICLE
      III

     

    Taxes
      and Increased Costs Protection

     

    3.01  Taxes

     

    (a)
        Except
      as
      provided in this Section 3.01
      or as
      otherwise expressly provided in this Agreement, any and all payments by the
      Borrower to or for the account of the Administrative Agent or any Lender under
      any Loan Document shall be made free and clear of and without reduction for
      or
      on account of any and all present or future taxes, duties, levies, imposts,
      deductions, assessments, fees, withholdings or similar charges, and all
      liabilities (including additions to tax, penalties and interest) with respect
      thereto, excluding,
      in the
      case of the Administrative Agent and each Lender, taxes imposed on or measured
      by its net income (including branch profits), and capital and franchise (and
      similar) taxes imposed on it in lieu of net income taxes, by the jurisdiction
      (or any political subdivision thereof) under the Laws of which the
      Administrative Agent or such Lender, as the case may be, is organized or
      maintains a lending office, and all liabilities (including additions to tax,
      penalties and interest) with respect thereto (all such non-excluded taxes,
      duties, levies, imposts, deductions, assessments, fees, withholdings or similar
      charges, and liabilities being hereinafter referred to as “Taxes”).
      If
      the Borrower shall be required by any Laws to deduct or withhold any Taxes
      from
      or in respect of any sum payable under any Loan Document to the Administrative
      Agent or any Lender, (i) the sum payable shall be increased as necessary so
      that after making all required deductions or withholdings (including amounts
      applicable to additional sums payable under this Section 3.01),
      each
      of the Administrative Agent and such Lender receives an amount equal to the
      sum
      it would have received had no such deductions or withholdings been made,
      (ii) the Borrower shall make such deductions, (iii) the Borrower shall
      pay the full amount deducted or withheld to the relevant taxation authority
      or
      other authority in accordance with applicable Laws, and (iv) within thirty
      (30) days after the date of such payment, the Borrower shall furnish to the
      Administrative Agent or Lender (as the case may be) the original or a certified
      copy of a receipt evidencing payment thereof to the extent such a receipt is
      issued therefor, or other written proof of payment thereof that is reasonably
      satisfactory to the Administrative Agent.

     

    (b)
        In
      addition, the Borrower agrees to pay any and all present or future stamp, court
      or documentary taxes and any other excise, sales, goods and services or
      intangible taxes or charges or similar levies which arise from any payment
      made
      under any Loan Document or from the execution, delivery, performance,
      enforcement or registration of, or otherwise with respect to the exercise by
      the
      Administrative Agent or a Lender of its rights under, any Loan
      Document (hereinafter referred to as “Other
      Taxes”).

     

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

     

    (d)
        The
      Borrower shall not be required pursuant to this Section 3.01
      to pay
      any additional amount to, or to indemnify, any Lender or the Administrative
      Agent, as the case may be, to the extent that such Lender or the Administrative
      Agent becomes subject to Taxes subsequent to the Closing Date (or, if
      later, the date such Lender or the Administrative Agent becomes a party to
      this
      Agreement) as a result of a change in the place of organization of such Lender
      or Administrative Agent or a change in the lending office of such Lender, except
      to the extent that any such change is requested or required by the Borrower
      (and
provided
      that
      nothing in this clause (d) shall be construed as relieving the Borrower
      from any obligation to make such payments or indemnification in accordance
      with
Section 3.02
      in the
      event of a change that is a change in Law).

     

    (e)
        If
      the
      forms provided by a Lender or the Administrative Agent pursuant to Section 9.15(a)
      at the
      time such Lender or the Administrative Agent, as the case may be, first becomes
      a party to this Agreement indicate a United States withholding tax rate in
      excess of zero, United States withholding tax at such rate shall be considered
      excluded from Taxes unless and until such Lender or the Administrative Agent,
      as
      the case may be, provides the appropriate forms certifying that a lesser rate
      applies, whereupon withholding tax at such lesser rate only shall be considered
      excluded from Taxes for periods governed by such forms; provided,
      however,
      that,
      if at the date of the Assignment and Assumption pursuant to which a Lender
      becomes a party to this Agreement, the Lender assignor was entitled to payments
      under clause (a) of this Section 3.01
      in
      respect of United States withholding tax with respect to interest paid at such
      date, then, to such extent, the term Taxes shall include (in addition to United
      States withholding taxes that may be imposed in the future or other amounts
      otherwise includable in Taxes) United States withholding tax, if any, applicable
      with respect to the Lender assignee on such date.

     

    (f)
        If
      any
      Lender or the Administrative Agent determines that it has received a refund
      or
      over-payment credit in respect of any Taxes or Other Taxes as to which
      indemnification or additional amounts have been paid to it by the Borrower
      pursuant to this Section 3.01,
      it
      shall promptly remit the amount of such refund or credit (including any
      interest included in such refund or credit) to the Borrower (to the extent
      that it reasonably determines that it can do so without prejudice to the
      retention of the refund or credit), net of all out-of-pocket expenses of the
      Lender or the Administrative Agent, as the case may be; provided,
      however,
      that
      the Borrower, upon the request of the Lender or the Administrative Agent, as
      the
      case may be, agrees promptly to return such refund or credit to such party
      in
      the event such party is required to repay such refund or credit to the relevant
      taxing authority. Such Lender or the Administrative Agent, as the case may
      be,
      shall, at the Borrower’s request, provide the Borrower with a copy of any notice
      of assessment or other evidence of the requirement to repay such refund or
      credit received from the relevant taxing authority (provided
      that
      such Lender or the Administrative Agent may delete any information therein
      that
      such Lender or the Administrative Agent deems confidential). Nothing herein
      contained shall interfere with the right of a Lender or the Administrative
      Agent
      to arrange its tax affairs in whatever manner it thinks fit nor oblige any
      Lender or the Administrative Agent to claim any tax refund or to disclose any
      information relating to its tax affairs or any computations in respect thereof
      or require any Lender or the Administrative Agent to do anything that would
      prejudice its ability to benefit from any other refunds, credits, reliefs,
      remissions or repayments to which it may be entitled.

     

    (g)
        Each
      Lender agrees that, upon the occurrence of any event giving rise to the
      operation of Section 3.01(a)
      or (c)
      with
      respect to such Lender it will, if requested by the Borrower, use commercially
      reasonable efforts (subject to such Lender’s overall internal policies of
      general application and legal and regulatory restrictions) to avoid the
      consequences of such event, including to designate another Lending Office for
      any Loan affected by such event; provided
      that
      such efforts are made on terms that, in the reasonable judgment of such Lender,
      do not cause such Lender and its Lending Office(s) to suffer any material
      economic, legal or regulatory disadvantage; and provided,
      further,
      that
      nothing in this Section 3.01(g)
      shall
      affect or postpone any of the Obligations of the Borrower or the rights of
      such
      Lender pursuant to Sections 3.01(a)
      and (c).

     

    3.02  Increased
      Cost and Reduced Return; Capital Adequacy

     

    (a)
        If
      any
      Lender determines that as a result of the introduction of or any change in
      or in
      the interpretation of any Law, in each case after the date hereof, or such
      Lender’s compliance therewith, there shall be any increase in the cost to such
      Lender of agreeing to make or making, funding or maintaining Loans, or a
      reduction in the amount received or receivable by such Lender in connection
      with
      the foregoing (excluding for purposes of this Section 3.02(a)
      any such
      increased costs or reduction in amount resulting from (i) Taxes or Other
      Taxes (as to which Section 3.01
      shall
      govern), (ii) changes in the basis of taxation of net income or gross
      income (including branch profits), capital and franchise (and similar) taxes
      imposed in lieu of net income taxes, by the United States or any foreign
      jurisdiction or any political subdivision of either thereof under the Laws
      of
      which such Lender is organized or maintains a lending office, and
      (iii) reserve requirements contemplated by the definition of the term
“Adjusted LIBO Rate”), then from time to time upon demand of such Lender setting
      forth in reasonable detail such increased costs (with a copy of such demand
      to
      the Administrative Agent given in accordance with Section 3.04),
      the
      Borrower shall pay to such Lender such additional amounts as will compensate
      such Lender for such increased cost or reduction.

     

    (b)
        If
      any
      Lender determines that the introduction of any Law regarding capital adequacy,
      reserve requirements or similar requirements or any change therein or in the
      interpretation thereof, in each case after the date hereof, or compliance by
      such Lender (or its Lending Office) therewith, has the effect of reducing
      the rate of return on the capital of such Lender or any corporation controlling
      such Lender as a consequence of such Lender’s obligations hereunder (taking
      into consideration its policies with respect to capital adequacy and such
      Lender’s desired return on capital), then from time to time upon demand of such
      Lender setting forth in reasonable detail the charge and the calculation of
      such
      reduced rate of return (with a copy of such demand to the Administrative
      Agent given in accordance with Section 3.04),
      the
      Borrower shall pay to such Lender such additional amounts as will compensate
      such Lender for such reduction.

     

    (c)
        If
      any
      Lender requests compensation under this Section 3.02,
      then
      such Lender will, if requested by the Borrower, use commercially reasonable
      efforts to designate another Lending Office for any Loan affected by such event;
      provided
      that
      such efforts are made on terms that, in the reasonable judgment of such Lender,
      do not cause such Lender and its Lending Office(s) to suffer any material
      economic, legal or regulatory disadvantage, and provided
      further
      that
      nothing in this Section 3.02(c)
      shall
      affect or postpone any of the Obligations of the Borrower or the rights of
      such
      Lender pursuant to Section 3.02(a)
      or
(b).

     

    3.03  Certain
      Losses.
      Upon demand of any Lender setting forth in reasonable detail the amount thereof
      (with a copy to the Administrative Agent) from time to time, the Borrower shall
      promptly compensate such Lender for and hold such Lender harmless from any
      loss,
      cost or expense incurred by it as a result of any failure of the Borrower to
      make any payment or prepayment required to be made by it hereunder or following
      revocation of the notice to make the same.

     

    3.04  Matters
      Applicable to All Requests for Compensation

     

    (a)
        A
      certificate of the Administrative Agent or any Lender claiming compensation
      under this Article III
      and
      setting forth the additional amount or amounts to be paid to it hereunder shall
      be conclusive in the absence of manifest error. In determining such amount,
      the
      Administrative Agent or such Lender may use any reasonable averaging and
      attribution methods.

     

    (b)
        With
      respect to any Lender’s claim for compensation under Section 3.01
      or
3.02
      the
      Borrower shall not be required to compensate such Lender for any amount incurred
      more than one hundred eighty (180) days prior to the date that such Lender
      notifies the Borrower of the event that gives rise to such claim; provided
      that, if
      the circumstances giving rise to such claim are retroactive, then such 180-day
      period shall be extended to include the period of retroactive effect
      thereof.

     

    3.05  Replacement
      of Lenders Under Certain Circumstances

     

    (a)
        If
      at any
      time the Borrower becomes obligated to pay additional amounts or indemnity
      payments described in Section 3.01
      or 3.02
      as a
      result of any condition described in such Sections, then the Borrower may,
      on
      ten (10) Business Days’ prior written notice to the Administrative Agent
      and such Lender, either (i) replace such Lender by causing such Lender to
      (and such Lender shall be obligated to) assign pursuant to Section 9.07(b)
      all of
      its rights and obligations under this Agreement to one or more Persons;
provided
      that
      neither the Administrative Agent nor any Lender shall have any obligation to
      the
      Borrower to find a replacement Lender or other such Person or (ii) repay
      all obligations of the Borrower owing to such Lender relating to the Loans
      and
      participations held by such Lender as of such termination date.

     

    (b)
        Any
      Lender being replaced pursuant to Section 3.05(a)
      above
      shall (i) execute and deliver an Assignment and Assumption with respect to
      such Lender’s outstanding Loans, and (ii) deliver any promissory notes
      evidencing such Loans to the Borrower or the Administrative Agent. Pursuant
      to
      such Assignment and Assumption, (i) the assignee Lender shall acquire all
      of the assigning Lender’s outstanding Loans, (ii) all obligations of the
      Borrower owing to the assigning Lender relating to the Loans so assigned shall
      be paid in full by the assignee Lender to such assigning Lender concurrently
      with such assignment and assumption and (iii) upon such payment and, if so
      requested by the assignee Lender, delivery to the assignee Lender of a
      promissory note or notes executed by the Borrower, the assignee Lender shall
      become a Lender hereunder and the assigning Lender shall cease to constitute
      a
      Lender hereunder with respect to such assigned Loans, except with respect to
      indemnification provisions under this Agreement, which shall survive as to
      such
      assigning Lender.

     

    3.06  Survival.
      All of
      the Borrower’s obligations under this Article III shall survive termination
      of this Agreement and repayment of all Loans and other Obligations
      hereunder.

     

    ARTICLE
      IV

     

    Conditions
      Precedent To Effectiveness and to Making of the Initial
      Loans

     

    4.01  Conditions
      to Effectiveness.
      The
      effectiveness of this Agreement, and the obligations of the Lenders to make
      the
      Initial Loans hereunder, are subject to the satisfaction of the following
      conditions:

     

    (a)
        The
      Administrative Agent shall have received from the Borrower, (i) either
      (x) a counterpart of this Agreement signed on behalf of the Borrower or
      (y) written evidence satisfactory to the Administrative Agent (which
      may include fax transmission of a signed signature page of this Agreement)
      that
      the Borrower has signed a counterpart of this Agreement and (ii) a notice of
      such Borrowing as required by Section
      2.02;

     

    (b)
        The
      representations and warranties of the Borrower contained in Article V
      or any
      other Loan Document shall be true and correct in all material respects on and
      as
      of the Closing Date, except to the extent that such representations and
      warranties specifically refer to an earlier date, in which case they shall
      be
      true and correct in all material respects as of such earlier date;

     

    (c)
        At
      the
      time of and immediately after the Borrowing to be made on the Closing Date,
      no
      Default or Event of Default shall have occurred and be continuing;

     

    (d)
        The
      Administrative Agent shall have received a certificate, dated the Closing Date
      and signed by the chief financial officer, principal accounting officer,
      treasurer or controller of the Borrower, confirming compliance with the
      conditions precedent set forth in paragraphs (b) and (c) above.

     

    (e)
        The
      Administrative Agent shall have received, on behalf of itself and the Lenders,
      a
      favorable written opinion of Ropes & Gray LLP, counsel for the Borrower, in
      form and substance reasonably satisfactory to the Administrative Agent, (A)
      dated the Closing Date, (B) addressed to the Administrative Agent and the
      Lenders and (C) covering such other matters relating to the Loan Documents
      and
      the Bridge Loan Transactions as the Administrative Agent shall reasonably
      request, and the Borrower hereby request such counsel to deliver such opinion.
      

     

    (f)
        The
      Administrative Agent shall have received (i) a copy of the certificates of
      incorporation, including all amendments thereto, of the Borrower, Nortek
      Holdings, Inc. and Nortek, certified as of a recent date by the Secretary of
      State of Delaware, (ii) a certificate, dated the Closing Date and signed by
      the Secretary or Assistant Secretary of the Borrower, Nortek Holdings, Inc.
      and
      Nortek, as applicable, certifying (A) that attached thereto is a true and
      complete copy of the by-laws of the Borrower, Nortek Holdings, Inc. and Nortek,
      respectively, each as in effect on the Closing Date and at all times since
      a
      date prior to the resolutions described in clause (B) below, (B) that
      attached thereto is a true and complete copy of resolutions duly adopted by
      the
      Board of Directors of the Borrower, Nortek Holdings, Inc. and Nortek,
      respectively, authorizing the execution, delivery and performance of this
      Agreement, the borrowings hereunder and the Bridge Loan Transactions, and that
      such resolutions have not been modified, rescinded or amended and are in full
      force and effect, (C) that attached thereto is a certificate of good
      standing of the Borrower, Nortek Holdings, Inc., and Nortek, respectively,
      each
      as of a recent date by the Secretary of the State of Delaware, and (D) as
      to the incumbency and specimen signature of each officer executing this
      Agreement or any other Loan Document or any other document delivered in
      connection therewith; (iii) a certificate of another officer as to the
      incumbency and specimen signature of the Secretary or Assistant Secretary
      executing the certificate pursuant to clause (ii) above; and (iv) such
      other documents as the Lenders or the Administrative Agent may reasonably
      request.

     

    (g)
        The
      Administrative Agent and the Lenders shall have received all fees and other
      amounts due and payable on or prior to the Closing Date, including fees pursuant
      to the Fee Letter and, to the extent invoiced, reimbursement or payment of
      all
      out of pocket expenses required to be reimbursed or paid by the Borrower
      thereunder, hereunder or under any other Loan Document. 

     

    (h)
        The
      Administrative Agent shall have received (i) a solvency opinion in form and
      substance and from an independent investment bank or valuation firm reasonably
      acceptable to the Administrative Agent to the effect that, or (ii) a certificate
      from the chief financial officer of the Borrower certifying, that the Borrower
      and its subsidiaries, on a consolidated basis after giving effect to the Bridge
      Loan Transactions and the other transactions contemplated hereby, are
      Solvent.

     

    (i)
        The
      Lenders shall have received to the extent requested, all documentation and
      other
      information required by regulatory authorities under applicable “know your
      customer” and anti-money laundering rules and regulations, including without
      limitation the USA PATRIOT Act.

     

    ARTICLE
      V

     

    REPRESENTATIONS
      AND WARRANTIES

     

    The
      Borrower represents and warrants to the Administrative Agent and the Lenders
      that:

     

    5.01  Disclosure.
      None of
      (a) the 2005 10-K, (b) any quarterly or current reports filed with the
      Commission by the Borrower or any of its Subsidiaries with respect to any period
      commencing, or event occurring, after December 31, 2005 and (c) the
      report entitled “Nortek-Overview-April 2006” that was delivered by the Borrower
      to the Initial Lenders prior to the Closing Date contains, in the case of items
      (a) and (b), as of the date of filing of such reports with the Commission and,
      subject to any information in a subsequent filing superceding information in
      a
      previous filing, as of the Closing Date, and, in the case of item (c), as of
      the
      date of such delivery and as of the Closing Date, any untrue statement of a
      material fact or omitted or will omit to state a material fact necessary to
      make
      the statements therein, in the light of the circumstances under which they
      were
      made, not misleading.

     

    5.02  Capitalization,
      Organization, Powers and Authorization

     

    (a)
        Capitalization.
      As of
      April 1, 2006, the capitalization of the Borrower shall be as set forth on
      Schedule
      5.02(a-1).
      All of
      the subsidiaries of the Borrower are listed on Schedule
      5.02(a-2);
      all of
      the outstanding shares of capital stock of the Borrower and its Subsidiaries
      have been, and as of the Closing Date will be, duly authorized and validly
      issued, are fully paid and nonassessable and were not issued in violation of
      any
      preemptive or similar rights; except for security interests granted pursuant
      to
      the Nortek Credit Agreement, all of the outstanding shares of capital stock
      of
      the Borrower and of each of its Subsidiaries are and will be as of the Closing
      Date free and clear of all liens, encumbrances, equities and claims or
      restrictions on transferability (other than those imposed by Federal securities
      laws or the securities or “Blue Sky” laws of certain jurisdictions) or voting;
      other than as set forth on Schedule 5.02(a-3),
      there
      are no (a) options, warrants or other rights to purchase,
      (b) agreements or other obligations to issue or (c) other rights to
      convert any obligation into, or exchange any securities for, shares of capital
      stock of or ownership interests in the Borrower or any of its Subsidiaries
      outstanding. Except for the Subsidiaries, as set forth on Schedule 5.02(a-4),
      the
      Borrower does not own, directly or indirectly, more than 5% of the outstanding
      capital stock or other equity interests in any firm, partnership, joint venture
      or other entity.

     

    (b)
        Existence,
      Qualification and Power.
      Each of
      the Borrower and its Subsidiaries is duly organized, validly existing and in
      good standing under the laws of its respective jurisdiction of incorporation,
      and each of the Borrower and its Subsidiaries has all requisite corporate,
      limited liability company or partnership, as applicable, power and authority
      to
      own its properties and conduct its business as now conducted and as described
      in
      the 2005 10-K and the 2006 10-Q; each of the Borrower and its Subsidiaries
      is
      duly qualified to do business as a foreign corporation, limited liability
      company or partnership, as applicable, in good standing, where applicable,
      in
      all other jurisdictions where the ownership or leasing of its properties or
      the
      conduct of its business requires such qualification, except where the failure
      to
      be so qualified would not, individually or in the aggregate, have a material
      adverse effect on (a) the condition (financial or otherwise), business,
      operations, assets or liabilities of the Borrower and its Subsidiaries, taken
      as
      a whole, (b) the ability of the Borrower or the Loan Parties (taken as a
      whole) to perform their respective obligations under the Loan Documents or
      (c) the rights and remedies of the Lenders under any Loan Document (any
      such event, a “Material
      Adverse Effect”).

     

    (c)
        Authorization;
      No Contravention.
      The
      Borrower has all requisite corporate power and authority to execute, deliver
      and
      perform its obligations under this Agreement and to consummate the Bridge Loan
      Transactions. This Agreement and the consummation by the Borrower of the Bridge
      Loan Transactions have been duly and validly authorized by the Borrower. This
      Agreement has been duly executed and delivered by the Borrower. This Agreement
      constitutes a valid and legally binding obligation of the Borrower, enforceable
      against the Borrower in accordance with its terms, except that the enforcement
      thereof may be subject to (a) bankruptcy, insolvency, reorganization,
      moratorium or other similar laws now or hereafter in effect relating to
      creditors’ rights generally, and (b) general principles of equity and the
      discretion of the court before which any proceeding therefor may be brought
      (the
“Bankruptcy
      Exceptions”).

     

    5.03  Government
      Authorization; Other Consents.
      No
      consent, approval, authorization or order of any court or governmental agency
      or
      body, or third party is required for execution, delivery or performance by,
      or
      enforcement against, the Borrower of this Agreement, except such as have been
      obtained or will be obtained prior to the Closing Date. Neither the Borrower
      nor
      any of its Subsidiaries is or will be on the Closing Date (a) in violation
      of their certificates of incorporation or by-laws (or similar organizational
      document), (b) in breach or violation of any statute, judgment, decree,
      order, rule or regulation applicable to any of them or any of their properties
      or assets, except for any such breach or violation that would not, individually
      or in the aggregate, have a Material Adverse Effect, or (c) in breach of or
      default under (nor has any event occurred that, with notice or passage of time
      or both, would constitute a default under) or in violation of any of the terms
      or provisions of any indenture, mortgage, deed of trust, loan agreement, note,
      lease, license, franchise agreement, permit, certificate, contract or other
      agreement or instrument to which any of them is a party or to which any of
      them
      or their respective properties or assets is subject (collectively, “Contracts”),
      except for any such breach, default, violation or event that would not,
      individually or in the aggregate, have a Material Adverse Effect.

     

    5.04  No
      Conflicts. The execution, delivery and performance by the Borrower of this
      Agreement and the consummation by the Borrower and any of its Subsidiaries,
      as
      applicable, of the Bridge Loan Transactions will not conflict with or constitute
      or result in a breach of or a default under (or an event that with notice or
      passage of time or both would constitute a default under) or violation of any
      of
      (a) the terms or provisions of any Contract, except for any such conflict,
      breach, violation, default or event that would not, individually or in the
      aggregate, have a Material Adverse Effect, (b) the certificate of
      incorporation or by-laws (or similar organizational document) of the Borrower
      or
      any of the Subsidiaries or (c) any statute, judgment, decree, order, rule
      or regulation applicable to the Borrower or any of its Subsidiaries or any
      of
      their respective properties or assets, except for any such conflict, breach
      or
      violation that would not, individually or in the aggregate, have a Material
      Adverse Effect.

     

    5.05  Financial
      Statements. The historical consolidated financial statements (including the
      notes thereto) of the Borrower (or its predecessors) and its subsidiaries
      included in each of the 2005 10-K and the 2006 10-Q present fairly in all
      material respects the consolidated financial position, results of operations,
      cash flows and changes in stockholder’s investment of the Borrower at the
      respective dates and for the respective periods indicated. All such financial
      statements have been prepared in accordance with generally accepted accounting
      principles in the United States applied on a consistent basis throughout the
      periods presented (except as disclosed therein), except that the interim
      financial statements do not include full footnote disclosure.

     

    5.06  Independent
      Registered Accounting Firm. Ernst & Young LLP, which has audited the
      financial statements and supporting schedules included in the 2005 10-K, is
      an
      independent registered public accounting firm in accordance with the Standards
      of the Public Company Accounting Oversight Board (United States). 

     

    5.07  Litigation.
      There is not pending or, to the knowledge of the Borrower, threatened any
      action, suit, proceeding, inquiry or investigation to which the Borrower or
      any
      of its Subsidiaries is a party, or to which the property or assets of the
      Borrower or any of the Subsidiaries are subject, before or brought by any court,
      arbitrator or governmental agency or body that could reasonably be expected
      to
      have a Material Adverse Effect or that seeks to restrain, enjoin, prevent the
      consummation of or otherwise challenge the performance by the Borrower of its
      obligations under this Agreement or the consummation of the Bridge Loan
      Transactions.

     

    5.08  Intellectual
      Property; Licenses, Etc. The Borrower and its Subsidiaries own or possess
      adequate licenses or other rights to use all patents, trademarks, service marks,
      trade names, copyrights, technology and know-how necessary to conduct the
      business now or proposed to be conducted by the Borrower and its Subsidiaries
      as
      described in the 2005 10-K and the 2006 10-Q, except for those patents,
      trademarks, service marks, trade names, copyrights, technology and know-how
      the
      failure to own or have the right to use which would not have a Material Adverse
      Effect, and, except as disclosed in the 2005 10-K or the 2006 10-Q, neither
      the
      Borrower, nor any of its Subsidiaries has received any notice of infringement
      of
      or conflict with (or knows of such infringement of or conflict with) rights
      of others with respect to any patents, trademarks, service marks, trade names,
      copyrights, technology or know-how except for conflicts which could not
      reasonably be expected to have a Material Adverse Effect; and to the best
      knowledge of the Borrower, do not in the conduct of their business as now
      conducted or proposed to be conducted, infringe or conflict with any such rights
      of any third party, except as could not reasonably be expected to have a
      Material Adverse Effect.

     

    5.09  No
      Material Adverse Effect

     

    (a)
        Since
      April 1, 2006 (a) none of the Borrower or its Subsidiaries has
      incurred any liabilities or obligations, direct or contingent, or entered into
      or agreed to enter into any transactions or contracts (written or oral) not
      in
      the ordinary course of business, which liabilities, obligations, transactions
      or
      contracts would, individually or in the aggregate, be material to the general
      affairs, management, business, condition (financial or otherwise),
      prospects or results of operations of the Borrower and the Subsidiaries, taken
      as a whole and (b) none of the Borrower or the Subsidiaries has purchased
      any of its outstanding capital stock, nor declared, paid or otherwise made
      any
      dividend or distribution of any kind on its capital stock (other than with
      respect to any of such Subsidiaries, the purchase of, or dividend or
      distribution on, capital stock owned by the Borrower or any of the Subsidiaries
      and other than on the Closing Date with respect to the Bridge Loan
      Transactions).

     

    (b)
        Since
      December 31, 2005, there has been no event or circumstance, either
      individually or in the aggregate, that has had or could reasonably be expected
      to result in a material adverse change in the condition (financial or
      otherwise), business, operations, assets or liabilities of the Borrower and
      its
      Subsidiaries, taken as a whole.

     

    5.10  Taxes.
      The
      Borrower and its Subsidiaries have (A) filed all Federal, state and local
      and foreign tax returns which are required to be filed through the date hereof,
      and all such tax returns are true, complete and accurate in all material
      respects, or (B) received valid extensions thereof and have paid all taxes
      shown on such returns and all assessments received by them except where, in
      the
      case of state and local and foreign tax returns, the failure to file in
      clause (A), or extend the due date of or pay the same in clause (B),
      in the aggregate, could not reasonably be expected to have a Material Adverse
      Effect; the Borrower has no knowledge of any tax deficiency which has been
      or
      might be asserted against the Borrower or any of the Subsidiaries which could
      reasonably be expected to have a Material Adverse Effect; and to the best
      knowledge of the Borrower, all tax liabilities of the Borrower and the
      Subsidiaries are adequately provided for on the consolidated books of the
      Borrower.

     

    5.11  Margin
      Regulations. None of the Borrower, the Subsidiaries or any agent acting on
      their
      behalf is engaged or will engage, principally or as one of their important
      activities, in the business of purchasing or carrying margin stock (within
      the
      meaning of Regulation U of the Board, in effect, or as the same may
      hereafter be in effect, on the Closing Date), or extending credit for the
      purpose of purchasing or carrying margin stock and no Loan will be used to
      purchase or carry any margin stock or to extend credit to others for the purpose
      of purchasing or carrying any margin stock.

     

    5.12  Ownership
      of Properties. Each of the Borrower and its Subsidiaries has good and marketable
      title to all real property and personal property and assets owned by them which
      is material to the business of the Borrower and the Subsidiaries, in each case
      subject to no lien, mortgage, pledge, charge or encumbrance of any kind except
      (A) Permitted Liens or (B) those which are not material in amount and
      do not adversely affect the use made and proposed to be made of such property
      by
      the Borrower and its Subsidiaries except for such uses the failure of which
      to
      be made would not have a Material Adverse Effect. Each of the Borrower and
      its
      Subsidiaries holds its leased properties under valid, subsisting and enforceable
      leases, with such exceptions as are not, individually or in the aggregate,
      material and do not, individually or in the aggregate, interfere with the use
      made or proposed to be made of such properties by the Borrower or any of its
      Subsidiaries (except for such uses the failure of which to be made would not
      have a Material Adverse Effect). Except as disclosed in the 2005 10-K, the
      Borrower and each of its Subsidiaries owns or leases all such properties as
      are
      necessary to its operations as now conducted or as proposed to be conducted
      (except for such properties the failure of which to own or lease would not
      have
      a Material Adverse Effect).

     

    5.13  No
      Omissions. There are no legal or governmental proceedings involving or affecting
      the Borrower or any Subsidiary or any of their respective properties or assets
      that would be required to be described in the 2005 10-K or the 2006 10-Q that
      are not so described, nor are there any material contracts or other documents
      that would be required to be described in the 2005 10-K or the 2006 10-Q that
      are not so described.

     

    5.14  Environmental
      Compliance

     

    (a)
        Except
      as
      would not, individually or in the aggregate, have a Material Adverse Effect,
      (A) each of the Borrower and its Subsidiaries is in compliance with and not
      subject to liability under applicable Environmental Laws (as defined below),
      (B) each of the Borrower and the Subsidiaries has made all filings and
      provided all notices required under any applicable Environmental Law, and has
      and is in compliance with all Permits required under any applicable
      Environmental Laws and each of them is in full force and effect, (C) there
      is no civil, criminal or administrative action, suit, demand, claim, hearing,
      notice of violation, investigation, proceeding, notice or demand letter or
      request for information pending or, to the knowledge of the Borrower or any
      of
      the Subsidiaries, threatened against the Borrower or any of the Subsidiaries
      under any Environmental Law, (D) no lien, charge, encumbrance or
      restriction has been recorded under any Environmental Law with respect to any
      assets, facility or property owned, operated, leased or controlled by the
      Borrower or any of the Subsidiaries, (E) none of the Borrower or the
      Subsidiaries has received notice that it has been identified as a potentially
      responsible party under the Comprehensive Environmental Response, Compensation
      and Liability Act of 1980, as amended (“CERCLA”),
      or
      any comparable state law and (F) no property or facility of the Borrower or
      any of the Subsidiaries is (i) listed or proposed for listing on the
      National Priorities List under CERCLA or (ii) listed in the Comprehensive
      Environmental Response, Compensation, Liability Information System List
      promulgated pursuant to CERCLA, or on any comparable list maintained by any
      Governmental Authority.

     

    (b)
        For
      purposes of this Agreement, “Environmental
      Laws”
means
      the common law and all applicable Federal, state and local laws or regulations,
      codes, orders, decrees, judgments or injunctions issued, promulgated, approved
      or entered thereunder, relating to pollution or protection of public or employee
      health and safety or the environment, including, without limitation, laws
      relating to (a) Releases or threatened Releases of Hazardous Materials into
      the environment (including, without limitation, ambient air, surface water,
      ground water, land surface or subsurface strata), (b) the manufacture,
      processing, distribution, use, generation, treatment, storage, disposal,
      transport or handling of Hazardous Materials, and (c) underground and above
      ground storage tanks and related piping, and Releases or threatened Releases
      therefrom.

     

    5.15  Labor
      Matters.
      Except
      as described in the 2005 10-K or the 2006 10-Q, (A) no labor disturbance by
      or dispute with the employees of the Borrower or any of its Subsidiaries exists
      or, to the best knowledge of the Borrower, is threatened and (B) the
      Borrower is not aware of any labor disturbance by the employees of any of the
      Borrower’s or the Subsidiaries’ significant manufacturers, suppliers, customers
      or contractors, that could reasonably be expected, in the case of both (A)
      and (B), to have a Material Adverse Effect.

     

    5.16  Insurance.
      The Borrower and its Subsidiaries have insurance covering their respective
      properties, operations, personnel and businesses, which insures against such
      losses and risks and in such amounts as are prudent and customary in the
      businesses in which they are engaged and, in the opinion of the Borrower, are
      adequate to protect their respective businesses.

     

    5.17  ERISA.
      Except as would not have a Material Adverse Effect, none of the Borrower or
      its
      Subsidiaries has any liability for any prohibited transaction or funding
      deficiency or any complete or partial withdrawal liability with respect to
      any
      pension, profit sharing or other plan that is subject to the Employee Retirement
      Income Security Act of 1974, as amended (“ERISA”),
      to
      which the Borrower or any of its Subsidiaries makes or ever has made a
      contribution and in which any employee of the Borrower or any Subsidiary is
      or
      has ever been a participant. With respect to such plans, the Borrower and each
      Subsidiary is in compliance in all material respects with all applicable
      provisions of ERISA.

     

    5.18  Internal
      Controls. The Borrower and each of its Subsidiaries maintains a system of
      internal accounting controls sufficient to provide reasonable assurances that
      (A) transactions are executed in accordance with the management’s general
      or specific authorizations; (B) transactions are recorded as necessary to
      permit preparation of financial statements in conformity with generally accepted
      accounting principles and to maintain accountability for assets; (C) access
      to assets is permitted only in accordance with management’s general or specific
      authorization; and (D) the recorded accountability for assets is compared
      with existing assets at reasonable intervals and appropriate action is taken
      with respect to any differences. To the best knowledge of the executive officers
      of the Borrower, after reasonable investigation, the Borrower’s auditors and the
      audit committee of the Board of Directors of the Borrower have been advised
      of
      all, and none of such executive officers is now aware of any:
      (A) significant deficiencies in the design or operation of internal
      controls which could materially adversely affect the Borrower’s ability to
      record, process, summarize and report financial data; and (B) material
      fraud that involves management or other employees who have a role in the
      Borrower’s internal controls; and since the date of the most recent evaluation
      of such disclosure controls and procedures, there have been no significant
      changes in internal controls or in other factors that could significantly affect
      internal controls, including any corrective actions with regard to significant
      deficiencies and material weaknesses.

     

    5.19  Investment
      Company Act. Neither the Borrower nor any of its Subsidiaries is, and upon
      consummation of the transactions contemplated hereby, none of such persons
      will
      be, subject to registration as an “investment company” or an entity “controlled
      by” an “investment company” within the meaning of the Investment Company Act
      of 1940, as amended, and the rules and regulations promulgated thereunder.
      Each such person will conduct its business and financial affairs in such a
      manner as to ensure that it will not become an “investment company” or an entity
“controlled” by an “investment company”. 

     

    5.20  FCPA.
      None of the Borrower or any of its Subsidiaries nor, to the knowledge of the
      Borrower, any director, officer, agent, employee or other person associated
      with
      or acting on behalf of the Borrower or any of its Subsidiaries has used any
      corporate funds for unlawful contributions, gifts, entertainment or other
      unlawful expenses relating to political activity, made any unlawful payment
      to
      foreign or domestic government officials or employees or to foreign or domestic
      political parties or campaigns from corporate funds, made any bribe, rebate,
      payoff, influence payment, kickback, or other unlawful payment or violated
      any
      provision of the Foreign Corrupt Practices Act of 1977.

     

    5.21  Sarbanes-Oxley.
      There is and has been no failure on the part of Nortek and the Borrower and
      any
      of their respective directors or officers, in their capacities as such, to
      comply in all material respects with any provision of the Sarbanes-Oxley Act
      of 2002 and the rules and regulations promulgated in connection therewith
      that are now in effect and that apply to Nortek or the Borrower, as
      applicable.

     

    ARTICLE
      VI

     

    COVENANTS

     

    6.01  Corporate
      Existence.
      Except
      as otherwise permitted by Section 6.16, the Borrower shall do or cause to
      be done all things necessary to preserve and keep in full force and effect
      its
      corporate existence in accordance with its organizational documents and the
      rights (charter and statutory) and material franchises of the
      Borrower.

     

    6.02  Payment
      of Taxes and Other Claims. The Borrower shall, and shall cause each of its
      Restricted Subsidiaries to, pay or discharge or cause to be paid or discharged,
      before the same shall become delinquent, (a) all material taxes,
      assessments and governmental charges levied or imposed upon it or any of its
      Restricted Subsidiaries or upon the income, profits or property of it or any
      of
      its Restricted Subsidiaries and (b) all lawful claims for labor, materials
      and supplies which, in each case, if unpaid, might by law become a material
      liability or Lien upon the property of it or any of its Restricted Subsidiaries;
      provided, however, that the Borrower shall not be required to pay or discharge
      or cause to be paid or discharged any such tax, assessment, charge or claim
      whose amount, applicability or validity is being contested in good faith by
      appropriate actions.

     

    6.03  Maintenance
      of Properties and Insurance

     

    (a)
        The
      Borrower shall cause all material properties owned by or leased by it or any
      of
      its Restricted Subsidiaries used or useful to the conduct of its business or
      the
      business of any of its Restricted Subsidiaries to be maintained and kept in
      normal condition, repair and working order and supplied with all necessary
      equipment and shall cause to be made all repairs, renewals, replacements, and
      betterments thereof, all as in its judgment may be necessary, so that the
      business carried on in connection therewith may be properly and advantageously
      conducted at all times; provided,
      however,
      that
      nothing in this Section 6.03
      shall
      prevent the Borrower or any of its Restricted Subsidiaries from discontinuing
      the use, operation or maintenance of any of such properties, or disposing of
      any
      of them, if such discontinuance or disposal is, in the judgment of the
      management of the Borrower or any such Restricted Subsidiary desirable in the
      conduct of the business of the Borrower or any such Restricted Subsidiary;
      provided
      further
      that
      nothing in this Section 6.03
      shall
      prevent the Borrower or any of its Restricted Subsidiaries from discontinuing
      or
      disposing of any properties to the extent otherwise permitted by this
      Agreement.

     

    (b)
        The
      Borrower shall maintain, and shall cause its Restricted Subsidiaries to
      maintain, insurance with responsible carriers against such risks and in such
      amounts, and with such deductibles, retentions, self-insured amounts and
      co-insurance provisions, as are customarily carried by similar businesses of
      similar size, including property and casualty loss, workers’ compensation and
      interruption of business insurance.

     

    6.04  Compliance
      Certificate; Notice of Default

     

    (a)
        The
      Borrower shall deliver to the Administrative Agent, within 120 days after
      the close of each fiscal year commencing with the fiscal year ending
      December 31, 2006, an Officers’ Certificate stating that a review of the
      activities of the Borrower and its Subsidiaries has been made under the
      supervision of the signing Officers with a view to determining whether the
      Borrower has kept, observed, performed and fulfilled its obligations under
      this
      Agreement and further stating, as to each such Officer signing such certificate,
      that to the best of such Officer’s knowledge, the Borrower during such preceding
      fiscal year has kept, observed, performed and fulfilled each and every such
      covenant and no Default occurred during such year and at the date of such
      certificate there is no Default that has occurred and is continuing or, if
      such
      signers do know of such Default, the certificate shall describe its status
      with
      particularity. The Officers’ Certificate shall also notify the Administrative
      Agent should the Borrower elect to change the manner in which it fixes its
      fiscal year end.

     

    (b)
        The
      Borrower shall deliver to the Administrative Agent as soon as possible, and
      in
      any event within fifteen days after the Borrower becomes aware of the
      occurrence of any Default or Event of Default, an Officers’ Certificate
      specifying the Default or Event of Default and describing its status with
      particularity and the action proposed to be taken thereto.

     

    (c)
        The
      Borrower’s fiscal years currently end on December 31. The Borrower will
      provide written notice to the Administrative Agent of any change in its fiscal
      year.

     

    6.05  Waiver
      of Stay
      or
      Extension Laws. The Borrower covenants (to the extent permitted by applicable
      law) that it will not at any time insist upon, plead, or in any manner
      whatsoever claim or take the benefit or advantage of, any stay or extension
      law
      or other law that would prohibit or forgive the Borrower from paying all or
      any
      portion of the principal of, premium, if any, and/or interest on the Loans
      as
      contemplated herein, wherever enacted, now or at any time hereafter in force,
      or
      which may affect the covenants or the performance of this Agreement, and (to
      the
      extent permitted by applicable law) the Borrower hereby expressly waives all
      benefit or advantage of any such law, and covenants that it will not hinder,
      delay or impede the execution of any power herein granted to the Administrative
      Agent, but will suffer and permit the execution of every such power as though
      no
      such law had been enacted.

     

    6.06  Incurrence
      of Indebtedness and Issuance of Preferred Stock.

     

    (a)
        The
      Borrower shall not, and shall not permit any of its Restricted Subsidiaries
      to,
      directly or indirectly, create, incur, issue, assume, Guarantee or otherwise
      become directly or indirectly liable, contingently or otherwise, with respect
      to
      (collectively, “Incur”)
      any
      Indebtedness (including Acquired Debt), and the Borrower will not issue any
      Disqualified Stock and the Borrower will not permit any of its Restricted
      Subsidiaries to issue any Disqualified Stock or preferred stock; provided,
      however,
      that
      (x) the Borrower may incur Indebtedness (including Acquired Debt) or issue
      Disqualified Stock and any of its Restricted Subsidiaries (other than Nortek
      and
      its Restricted Subsidiaries) may incur Indebtedness (including Acquired Debt)
      or
      issue Disqualified Stock or preferred stock, if the Fixed Charge Coverage Ratio
      of the Borrower for its most recently ended four full fiscal quarters for which
      internal financial statements are available immediately preceding the date
      on
      which such additional Indebtedness is incurred or such Disqualified Stock or
      preferred stock is issued would have been at least 2.00 to 1.00, determined
      on a
      pro forma basis (including a pro forma application of the net proceeds
      therefrom), as if the additional Indebtedness had been incurred or Disqualified
      Stock or preferred stock had been issued, as the case may be, at the beginning
      of such four-quarter period, and (y) Nortek and its Restricted Subsidiaries
      may incur Indebtedness (including Acquired Debt) or issue Disqualified Stock
      or
      preferred stock, if the Fixed Charge Coverage Ratio of Nortek for its most
      recently ended four full fiscal quarters for which internal financial statements
      are available immediately preceding the date on which such additional
      Indebtedness is incurred or such Disqualified Stock or preferred stock is issued
      would have been at least 2.00 to 1.00, determined on a pro forma basis
      (including a pro forma application of the net proceeds therefrom), as if the
      additional Indebtedness had been incurred or Disqualified Stock or preferred
      stock had been issued, as the case may be, at the beginning of such four-quarter
      period.

     

    (b)
        Section 6.06(a)
      shall
      not prohibit the incurrence of any of the following items of Indebtedness
      (collectively, “Permitted
      Debt”):

     

    (1)
        (a) the
      incurrence by the Borrower or any Restricted Subsidiary of Indebtedness under
      Credit Facilities in an aggregate principal amount at any one time outstanding
      (with letters of credit being deemed to have a principal amount equal to the
      maximum potential liability of the Borrower and the Restricted Subsidiaries
      thereunder) not to exceed $1.0 billion and (b) the incurrence by the
      Borrower or any Restricted Subsidiary of additional Indebtedness under Credit
      Facilities in an aggregate principal amount at any one time outstanding (with
      letters of credit being deemed to have a principal amount equal to the maximum
      potential liability of the Borrower and the Restricted Subsidiaries thereunder)
      not to exceed the amount, if any, by which (x) the amount of the Borrowing
      Base as of the date of such incurrence exceeds (y) the aggregate amount of
      Indebtedness permitted to be incurred pursuant to the immediately preceding
      clause (a) as of the date of such incurrence, less, in the case of
      clause (a), the aggregate amount of all Net Proceeds of Asset Sales,
      applied by the Borrower or any Restricted Subsidiary to repay any Indebtedness
      under Credit Facilities (and, in the case of any revolving credit Indebtedness
      under a Credit Facility, to effect a corresponding commitment reduction
      thereunder) pursuant to Section 6.09(b)(1)
      and, in
      the case of each of clauses (a) and (b), less amounts outstanding
      under any Qualified Receivables Transactions;

     

    (2)
        the
      incurrence by the Borrower or any Restricted Subsidiary of the Existing
      Indebtedness;

     

    (3)
        the
      incurrence by the Borrower of Indebtedness represented by the Initial Loans,
      Extended Loans or Exchange Notes to be made or issued, as applicable, pursuant
      to the Loan Documents, any Loan Guarantees in respect thereof and the Exchange
      Note Indenture;

     

    (4)
        the
      incurrence by the Borrower or any of its Restricted Subsidiaries of Indebtedness
      represented by Capital Lease Obligations, mortgage financings or purchase money
      obligations, in each case, incurred for the purpose of financing all or any
      part
      of the purchase price, or cost of construction or improvement, of property
      (real
      or personal), plant or equipment used in the business of the Borrower or any
      of
      its Restricted Subsidiaries (whether through the direct acquisition of such
      assets or the acquisition of Equity Interests of any Person owning such assets)
      in an aggregate principal amount, including all Permitted Refinancing
      Indebtedness incurred to refund, refinance or replace any Indebtedness incurred
      pursuant to this clause (4), not to exceed, at any time outstanding, the
      greater of (x) $30.0 million or (y) 3% of Consolidated Tangible
      Assets of the Borrower;

     

    (5)
        the
      incurrence by the Borrower or any of its Restricted Subsidiaries of Permitted
      Refinancing Indebtedness in exchange for, or the net proceeds of which are
      used
      to refund, refinance or replace Indebtedness (other than intercompany
      Indebtedness) that is permitted by this Agreement to be incurred under
Section 6.06(a)
      or
      clauses (2), (3), (4), (5), (15) or (16) of this Section 6.06(b);

     

    (6)
        the
      incurrence by the Borrower or any of its Restricted Subsidiaries of intercompany
      Indebtedness between or among the Borrower and any of its Restricted
      Subsidiaries; provided,
      however,
      that
      (i) any subsequent issuance or transfer of Equity Interests that results in
      any such Indebtedness being held by a Person other than the Borrower or a
      Restricted Subsidiary thereof and (ii) any sale or other transfer of any
      such Indebtedness to a Person that is not either the Borrower or a Restricted
      Subsidiary thereof, shall be deemed, in each case, to constitute an incurrence
      of such Indebtedness by the Borrower or such Restricted Subsidiary, as the
      case
      may be, that was not permitted by this clause (6);

     

    (7)
        the
      incurrence by the Borrower or any of its Restricted Subsidiaries of Hedging
      Obligations that are incurred in the ordinary course of business for the purpose
      of fixing, hedging or swapping interest rate, commodity price or foreign
      currency exchange rate risk (or to reverse or amend any such agreements
      previously made for such purposes), and not for speculative purposes, and that
      do not increase the Indebtedness of the obligor outstanding at any time other
      than as a result of fluctuations in interest rates, commodity prices or foreign
      currency exchange rates or by reason of fees, indemnities and compensation
      payable thereunder;

     

    (8)
        the
      Guarantee by the Borrower or any Restricted Subsidiary of Indebtedness of the
      Borrower or a Restricted Subsidiary of the Borrower that was permitted to be
      incurred by another provision of this Section 6.06;
      provided
      that, in
      the case of a Guarantee of Indebtedness of the Borrower by any Restricted
      Subsidiary that is not a Guarantor, such Restricted Subsidiary complies with
      Section 6.12;

     

    (9)
        the
      accrual of interest, the accretion or amortization of original issue discount,
      the payment of interest on any Indebtedness in the form of additional
      Indebtedness with the same terms, and the payment of dividends on Disqualified
      Stock or preferred stock in the form of additional shares of the same class
      of
      Disqualified Stock or preferred stock will not be deemed to be an incurrence
      of
      Indebtedness or an issuance of Disqualified Stock or preferred stock for
      purposes of this Section 6.06;
      provided,
      in each
      such case, that the amount thereof is included in Fixed Charges of the Borrower
      as accrued (other than as expressly permitted to be excluded for any purpose
      by
      the terms of this Agreement);

     

    (10)
        the
      incurrence by the Borrower’s Unrestricted Subsidiaries of Non-Recourse Debt;
provided,
      however,
      that if
      any such Indebtedness ceases to be Non-Recourse Debt of an Unrestricted
      Subsidiary, such event shall be deemed to constitute an incurrence of
      Indebtedness by a Restricted Subsidiary of the Borrower that was not permitted
      by this clause (10);

     

    (11)
        the
      incurrence by the Borrower or any of its Restricted Subsidiaries of Indebtedness
      constituting reimbursement obligations with respect to letters of credit issued
      in the ordinary course of business, including, without limitation, letters
      of
      credit in respect of workers’ compensation claims or self-insurance, or other
      Indebtedness with respect to reimbursement type obligations regarding workers’
compensation claims or self-insurance; provided,
      however,
      that,
      upon the drawing of such letters of credit or the incurrence of such
      Indebtedness, such obligations are reimbursed within 30 days following such
      drawing or incurrence;

     

    (12)
        the
      incurrence by the Borrower or any of its Restricted Subsidiaries of Indebtedness
      arising from agreements of the Borrower or such Restricted Subsidiary providing
      for indemnification, adjustment of purchase price or similar obligations, in
      each case, incurred or assumed in connection with the disposition of any
      business, assets or Capital Stock of the Borrower or a Restricted Subsidiary,
      other than Guarantees of Indebtedness incurred by any Person acquiring all
      or
      any portion of such business, assets or a Subsidiary for the purpose of
      financing such acquisition; provided
      that:

     

    (a)  such
      Indebtedness is not reflected on the balance sheet of the Borrower or any
      Restricted Subsidiary (contingent obligations referred to in a footnote or
      footnotes to financial statements and not otherwise reflected on the balance
      sheet will not be deemed to be reflected on that balance sheet for purposes
      of
      this clause (a));
      and

     

    (b)  the
      maximum assumable liability in respect of that Indebtedness shall at no time
      exceed the gross proceeds including noncash proceeds (the fair market value
      of
      those noncash proceeds being measured at the time received and without giving
      effect to any subsequent changes in value) actually received by the Borrower
      and/or that Restricted Subsidiary in connection with that
      disposition;

     

    (13)
        the
      issuance of Disqualified Stock or preferred stock by any of the Borrower’s
      Restricted Subsidiaries issued to the Borrower or another Restricted Subsidiary;
      provided
      that
      (i) any subsequent issuance or transfer of any Equity Securities that
      results in such Disqualified Stock or preferred stock being held by a Person
      other than the Borrower or a Restricted Subsidiary thereof and (ii) any
      sale or other transfer of any such shares of Disqualified Stock or preferred
      stock to a Person that is not either the Borrower or a Restricted Subsidiary
      thereof shall be deemed, in each case, to constitute an issuance of such shares
      of Disqualified Stock or preferred stock that was not permitted by this
      clause (13);

     

    (14)
        the
      incurrence by the Borrower or any of its Restricted Subsidiaries of obligations
      in respect of performance and surety bonds and completion Guarantees provided
      by
      the Borrower or such Restricted Subsidiary in the ordinary course of
      business;

     

    (15)
        the
      incurrence by the Borrower or any Restricted Subsidiary of Indebtedness in
      an
      aggregate principal amount (or accreted value, as applicable) at any time
      outstanding, including all Permitted Refinancing Indebtedness incurred to
      refund, refinance or replace any Indebtedness incurred pursuant to this
      clause (15), not to exceed $75.0 million;

     

    (16)
        the
      incurrence by the Foreign Restricted Subsidiaries of the Borrower of
      Indebtedness in an aggregate principal amount at any one time outstanding (with
      letters of credit being deemed to have a principal amount equal to the maximum
      potential liability of the Foreign Restricted Subsidiaries thereunder),
      including all Permitted Refinancing Indebtedness incurred to refund, refinance
      or replace any Indebtedness incurred pursuant to this clause (16), not to
      exceed $50.0 million;

     

    (17)
        the
      incurrence of any Indebtedness by a Receivables Subsidiary that is not recourse
      to the Borrower or any other Restricted Subsidiary of the Borrower (other than
      Standard Securitization Undertakings) incurred in connection with a Qualified
      Receivables Transaction; provided,
      that,
      the aggregate amount of Indebtedness under this clause (17), when
      aggregated with all Indebtedness outstanding under clause (1), shall not
      exceed the maximum amount permitted under clause (1);

     

    (18)
        contingent
      liabilities arising out of endorsements of checks and other negotiable
      instruments for deposit or collection in the ordinary course of
      business;

     

    (19)
        the
      incurrence by the Borrower or any Restricted Subsidiary of Indebtedness to
      effect the repurchase, redemption or other acquisition or retirement for value
      of any Equity Interests of the Borrower or any Parent, in each case held by
      any
      former or current employees, officers, directors or consultants of the Borrower
      or any of its Restricted Subsidiaries or their respective estates, spouses,
      former spouses or family members under any management equity plan or stock
      option or other management or employee benefit plan upon the death, disability
      or termination of employment of such Persons in an aggregate amount at any
      one
      time outstanding not to exceed the maximum amount of such acquisitions pursuant
      to Section 6.07(b)(5);
      and

     

    (20)
        the
      incurrence of Indebtedness of the Borrower or any Restricted Subsidiary
      supported by a letter of credit issued pursuant to the Nortek Credit Agreement
      in a principal amount not in excess of the stated amount of such letter of
      credit.

     

    For
      purposes of determining compliance with this Section 6.06,
      in the
      event that any proposed Indebtedness meets the criteria of more than one of
      the
      categories of Permitted Debt described in clauses (1) through (20)
      above, or is entitled to be incurred pursuant to Section 6.06(a),
      the
      Borrower will be permitted to classify such item of Indebtedness on the date
      of
      its incurrence, and from time to time may reclassify, in any manner that
      complies with this Section 6.06
      at such
      time. Indebtedness under the Nortek Credit Agreement on the Closing Date shall
      be deemed to have been outstanding on such date pursuant to Section 6.06(b)(1).

     

    6.07  Limitation
      on Restricted Payments

     

    (a)
        The
      Borrower shall not, and shall not permit any of its Restricted Subsidiaries
      to,
      directly or indirectly:

     

    (I)
        declare
      or pay any dividend or make any other payment or distribution on account of
      the
      Borrower’s or any of its Restricted Subsidiaries’ Equity Interests (including,
      without limitation, any payment in connection with any merger or consolidation
      involving the Borrower or any of its Restricted Subsidiaries or any payment
      under the Holdings Deferred Compensation Plan to the extent such payment is
      funded with a dividend or distribution that would have constituted a “Restricted
      Payment” under the terms of the Senior Subordinated Notes Indenture, as such
      indenture may be amended, supplemented or otherwise modified from time to time
      in accordance with the terms thereof), other than dividends or distributions
      payable in Equity Interests (other than Disqualified Stock) of the Borrower
      or
      to the Borrower or a Restricted Subsidiary of the Borrower;

     

    (II)
        purchase,
      redeem or otherwise acquire or retire for value (including, without limitation,
      in connection with any merger or consolidation involving the Borrower) any
      Equity Interests of the Borrower or any Parent;

     

    (III)
        make
      any
      payment of principal or premium on or with respect to, or purchase, redeem,
      defease or otherwise acquire or retire for value, any Indebtedness that is
      subordinated to the Loans or any Loan Guarantee prior to scheduled maturity,
      scheduled repayment or scheduled sinking fund payment (other than (A) from
      the Borrower or a Restricted Subsidiary or (B) the purchase, repurchase,
      redemption, defeasance or other acquisition or retirement of such subordinated
      Indebtedness purchased in anticipation of satisfying a sinking fund obligation,
      principal installment or final maturity, in each case due within one year of
      the
      date of such purchase, repurchase, redemption, defeasance or other acquisition
      or retirement); or

     

    (IV)
        make
      any
      Restricted Investment (all such payments and other actions set forth in
      clause (I) through (IV) above being collectively referred to as
“Restricted
      Payments”),
      unless, at the time of and after giving effect to such Restricted
      Payment:

     

    (1)
        no
      Default or Event of Default shall have occurred and be continuing or would
      occur
      as a consequence thereof; and

     

    (2)
        the
      Borrower or such Restricted Subsidiary, as the case may be, would, at the time
      of such Restricted Payment and after giving pro forma effect thereto as if
      such
      Restricted Payment had been made at the beginning of the applicable four-quarter
      period, have been permitted to incur at least $1.00 of additional Indebtedness
      pursuant to Section 6.06(a);
      provided
      that for
      purposes of this clause (2) only, any of the Borrower’s non-cash interest
      expense and amortization of original issue discount shall be excluded from
      the
      determination of the Fixed Charge Coverage Ratio of the Borrower to the extent
      not already excluded therefrom; and

     

    (3)
        such
      Restricted Payment, together with the aggregate amount of all other Restricted
      Payments made by the Borrower and its Restricted Subsidiaries after
      August 27, 2004 (excluding Restricted Payments permitted by
      clauses (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (13), (14),
      (15) and (16) of Section 6.07(b)),
      is
      less than the sum, without duplication, of:

     

    (a)  50%
      of
      the Consolidated Net Income (excluding, for purposes of calculating Consolidated
      Net Income of the Borrower for this clause (3)(a) only, (A) any of the
      Borrower’s non-cash interest expense and amortization of original issue discount
      to the extent not already excluded from the definition of Consolidated Net
      Income and (B) any other expenses actually incurred by the Borrower,
      including amortization of expenses associated with the offering of the NTK
      Senior Discount Notes) for the period (taken as one accounting period) beginning
      on August 27, 2004 and ending on the date of the Borrower’s most recently
      ended fiscal quarter for which internal financial statements are available
      at
      the time of such Restricted Payment (provided,
      that,
      if the amount of Consolidated Net Income as so calculated divided by the number
      of full fiscal quarters in such period exceeds $5.25 million, then such
      amount shall equal (i) 50% of the product of $5.25 million multiplied
      by the number of full fiscal quarters in such period plus (ii) 75% of the
      amount in excess of the product of $5.25 million multiplied by the number
      of full fiscal quarters in such period) (or, if such Consolidated Net Income
      for
      such period is a deficit, less 100% of such deficit); plus

     

    (b)  100%
      of
      the aggregate net proceeds (including the fair market value of property)
      received by the Borrower subsequent to August 27, 2004 as a contribution to
      its
      common equity capital or from the issue or sale of Equity Interests of the
      Borrower (other than Excluded Contributions or net proceeds from the issue
      and
      sale of Disqualified Stock) or from the issue or sale of convertible or
      exchangeable Disqualified Stock or convertible or exchangeable debt securities
      of the Borrower that have been converted into or exchanged for such Equity
      Interests (other than Equity Interests (or Disqualified Stock or debt
      securities) sold to a Restricted Subsidiary of the Borrower); plus

     

    (c)  in
      an
      amount equal to the net reduction in Investments by the Borrower and its
      Restricted Subsidiaries, subsequent to August 27, 2004, resulting from payments
      of interests on Indebtedness, dividends, repayments of loans or advances or
      other transfers of assets, in each case to the Borrower or any such Restricted
      Subsidiary from any such Investment, or from the net cash proceeds from the
      sale
      of any such Investment, or from a designation of an Unrestricted Subsidiary
      to a
      Restricted Subsidiary, but only if and to the extent such amounts are not
      included in the calculation of Consolidated Net Income (as calculated as set
      forth above) and not to exceed in the case of any Investment the amount of
      the
      Investment previously made by the Borrower or any Restricted Subsidiary in
      such
      Person or Unrestricted Subsidiary; provided
      that 50%
      (or, if subclause (a)(ii) of this clause (3) is applicable to the
      period in which such amounts are received, 75%) of amounts in excess of the
      amount of the Investment previously made may be added to the amounts otherwise
      available under this clause (c) to make Restricted Investments pursuant to
      this clause (3).

     

    (b)
        Section 6.07(a)
      shall
      not prohibit:

     

    (1)
        the
      payment of any dividend within 60 days after the date of declaration
      thereof, if at said date of declaration such payment would have complied with
      the provisions of this Agreement;

     

    (2)
        the
      redemption, repurchase, retirement, defeasance or other acquisition of any
      subordinated Indebtedness of the Borrower or any Restricted Subsidiary or of
      any
      Equity Interests of the Borrower or any Parent in exchange for, or out of the
      net cash proceeds of the substantially concurrent sale (other than to a
      Restricted Subsidiary of the Borrower) of, Equity Interests of the Borrower
      other than Disqualified Stock (and any distribution, loan or advance of such
      net
      cash proceeds to the Borrower or any Parent for such purpose) or out of
      contributions to the equity capital of the Borrower (other than Disqualified
      Stock); provided
      that the
      amount of any such net proceeds that are utilized for any such redemption,
      repurchase, retirement, defeasance or other acquisition shall be excluded from
      Section 6.07(a)(3)(b);

     

    (3)
        the
      repayment, defeasance, redemption, repurchase or other acquisition of
      subordinated Indebtedness of the Borrower or any Restricted Subsidiary with
      the
      net cash proceeds from an incurrence of Permitted Refinancing
      Indebtedness;

     

    (4)
        the
      payment of any dividend by a Restricted Subsidiary of the Borrower to the
      holders of any series or class of its common Equity Interests on a pro rata
      basis;

     

    (5)
        the
      repurchase, redemption or other acquisition or retirement for value of any
      Equity Interests of the Borrower and any distribution, loan or advance to any
      Parent for the repurchase, redemption or other acquisition or retirement for
      value of any Equity Interests of any Parent, in each case held by any former
      or
      current employees, officers, directors or consultants of the Borrower or any
      of
      its Restricted Subsidiaries or their respective estates, spouses, former spouses
      or family members under any management equity plan or stock option or other
      management or employee benefit plan upon the death, disability or termination
      of
      employment of such Persons, in an amount not to exceed $7.5 million in any
      calendar year; provided
      that
      such amount in any calendar year may be increased by an amount not to exceed
      (i) the net cash proceeds from the sale of Equity Interests (other than
      Disqualified Stock) of the Borrower (or any Parent to the extent such net cash
      proceeds are contributed to the common equity of the Borrower) to employees,
      officers, directors or consultants of the Borrower and its Restricted
      Subsidiaries that occurs after August 27, 2004 (to the extent the cash
      proceeds from the sale of such Equity Interests have not otherwise been applied
      to the payment of Restricted Payments pursuant to clause (2) above or
      previously applied to the payment of Restricted Payments pursuant to this
      clause (5)) plus (ii) the cash proceeds of key man life insurance
      policies received by the Borrower and its Restricted Subsidiaries after
      August 27, 2004 less any amounts previously applied to the payment of
      Restricted Payments pursuant to this clause (5); provided
      further
      that
      cancellation of Indebtedness owing to the Borrower from employees, officers,
      directors and consultants of the Borrower or any of its Restricted Subsidiaries
      in connection with a repurchase of Equity Interests of the Borrower from such
      Persons will not be deemed to constitute a Restricted Payment for purposes
      of
      this Section 6.07
      or any
      other provisions of this Agreement to the extent that the proceeds received
      from
      the sale of such Equity Interests were excluded from Section 6.07(a)(3)(b);
      provided
      further
      that the
      net cash proceeds from such sales of Equity Interests described in
      subclause (i) of this clause (5) shall be excluded from Section 6.07(a)(3)(b)
      to the
      extent such proceeds have been or are applied to the payment of Restricted
      Payments pursuant to this clause (5);

     

    (6)
        the
      payment of dividends or other distributions or the making of loans or advances
      to any Parent in amounts required for any Parent to pay franchise taxes and
      other fees required to maintain its existence and provide for all other
      operating costs of any Parent to the extent attributable to the ownership or
      operation of the Borrower and its Restricted Subsidiaries, including, without
      limitation, in respect of director fees and expenses, administrative, legal
      and
      accounting services provided by third parties and other costs and expenses
      including all costs and expenses with respect to filings with the Commission
      plus any indemnification claims made by directors or officers of the Borrower,
      any Parent or any Restricted Subsidiary attributable to the ownership or
      operation of the Borrower and its Restricted Subsidiaries;

     

    (7)
        the
      payment of dividends or other distributions by the Borrower to any Parent in
      amounts required to pay the tax obligations of any Parent attributable to the
      Borrower and its Subsidiaries determined as if the Borrower and its Subsidiaries
      had filed a separate consolidated, combined or unitary return for the relevant
      taxing jurisdiction; provided
      that any
      refunds received by any Parent attributable to the Borrower or any of its
      Subsidiaries shall promptly be returned by any Parent to the Borrower through
      a
      contribution to the common equity of, or the purchase of common stock (other
      than Disqualified Stock) of the Borrower from, the Borrower; and provided
      further
      that the
      amount of any such contribution or purchase shall be excluded from Section 6.07(a)(3)(b);

     

    (8)
        repurchases
      of Capital Stock deemed to occur upon the cashless exercise of stock options
      and
      warrants;

     

    (9)
        after
      February 15, 2006, Restricted Payments not otherwise permitted pursuant to
      this Section
      6.07
      in an
      aggregate amount not to exceed $50.0 million;

     

    (10)
        the
      declaration and payment of dividends and distributions to holders of any class
      or series of Disqualified Stock of the Borrower or any of its Restricted
      Subsidiaries issued or incurred in accordance with Section 6.06;

     

    (11)
        Investments
      that are made with Excluded Contributions;

     

    (12)
        following
      the first Public Equity Offering of the Borrower or any Parent after the Closing
      Date, the payment of dividends on the Borrower’s common stock (and, in the case
      of a Public Equity Offering of any Parent, solely for the purpose of paying
      dividends on any Parent’s common stock) in an amount not to exceed 6% per annum
      of the gross proceeds of such Public Equity Offering received by or contributed
      to the common equity capital of, the Borrower (other than any such gross
      proceeds constituting Excluded Contributions);

     

    (13)
        upon
      the
      occurrence of a Change of Control or Asset Sale and within 60 days after
      completion of the Change of Control Offer pursuant to Section 2.11
      or Asset
      Sale Offer pursuant to Section 2.12
      (including the repayment of all Loans of Lenders that have elected to have
      such
      Loans repaid pursuant thereto), any purchase or redemption of Indebtedness
      of
      the Borrower subordinated to the Loans that is required to be repurchased or
      redeemed pursuant to the terms thereof as a result of such Change of Control
      or
      Asset Sale, at a purchase price not greater than 101% of the aggregate principal
      amount or accreted value, as applicable, thereof (plus accrued and unpaid
      interest);

     

    (14)
        the
      payment of dividends or other distributions by the Borrower to any Parent in
      amounts required for any Parent to pay any expenses incurred in connection
      with
      unconsummated offerings of debt securities or Equity Interests of any
      Parent;

     

    (15)
        the
      payment of dividends or other distributions by the Borrower to any Parent in
      an
      amount equal to any reduction in taxes realized by the Borrower and its
      Restricted Subsidiaries in the form of refunds or deductions realized in
      connection with or otherwise resulting from the Original Transactions;
      and

     

    (16)
        Restricted
      Payments made with the net proceeds received by the Borrower from the sale
      of
      the NTK Senior Discount Notes on February 15, 2005;

     

    provided,
      however,
      that in
      the case of clauses (2), (3), (5), (9), (10), (12), (13), (14)
      and (15) of this Section 6.07(b),
      no
      Default or Event of Default has occurred and is continuing;

     

    (c)
        The
      amount of all Restricted Payments (other than cash) shall be the fair market
      value on the date of the Restricted Payment of the asset(s) or securities
      proposed to be transferred or issued to or by the Borrower or such Subsidiary,
      as the case may be, pursuant to the Restricted Payment. The fair market value
      of
      any assets or securities that are required to be valued by this Section 6.07
      shall,
      if the fair market value thereof exceeds $10.0 million, be determined by
      the Board of Directors of the Borrower whose resolution with respect thereto
      shall be delivered to the Administrative Agent. The determination of the Board
      of Directors of the Borrower must be based upon an opinion or appraisal issued
      by an accounting, appraisal or investment banking firm of national standing
      (an
“Independent
      Financial Advisor”)
      if the
      fair market value exceeds $25.0 million. If any fairness opinion or
      appraisal is required by this Agreement in connection with any Restricted
      Payments, the Borrower shall deliver to the Administrative Agent an Officers’
Certificate stating that such Restricted Payment is permitted and setting forth
      the basis upon which the calculations required by this Section 6.07
      were
      computed, together with a copy of such fairness opinion or
      appraisal.

     

    6.08  Limitation
      on Liens.
      The
      Borrower shall not create, incur, assume or otherwise cause or suffer to exist
      or become effective any Lien of any kind securing Indebtedness of the Borrower
      (other than Permitted Liens) upon any property or assets of the Borrower or
      any
      of its Restricted Subsidiaries, now owned or hereafter acquired, unless all
      Loans made pursuant to this Agreement are secured on an equal and ratable basis
      with the obligations so secured (or, in the case of subordinated Indebtedness,
      prior or senior thereto, with the same relative priority as the Loans shall
      have
      with respect to such subordinated Indebtedness) until such time as such
      obligations are no longer secured by a Lien.

     

    6.09  Asset
      Sales

     

    (a)
        The
      Borrower shall not, and shall not permit any of its Restricted Subsidiaries
      to,
      consummate an Asset Sale unless:

     

    (1)
        the
      Borrower (or such Restricted Subsidiary, as the case may be) receives
      consideration at the time of such Asset Sale at least equal to the fair market
      value of the assets or Equity Interests issued or sold or otherwise disposed
      of;

     

    (2)
        in
      the
      case of Asset Sales involving consideration in excess of $10.0 million,
      such fair market value is determined by the Borrower’s Board of Directors and
      evidenced by a resolution of such Board of Directors set forth in an Officers’
Certificate delivered to the Administrative Agent; and

     

    (3)
        at
      least
      75% of the consideration therefor received by the Borrower or such Restricted
      Subsidiary is in the form of cash, Cash Equivalents or Replacement Assets or
      a
      combination thereof. For purposes of this Section 6.09(a)(3),
      each of
      the following shall be deemed to be cash:

     

    (A)
        any
      liabilities (as shown on the Borrower’s or such Restricted Subsidiary’s most
      recent balance sheet) of the Borrower or any Restricted Subsidiary (other than
      contingent liabilities and liabilities that are by their terms subordinated
      to
      the Loans) that are assumed by the transferee of any such assets and, in the
      case of liabilities other than Non-Recourse Debt, where the Borrower and all
      Restricted Subsidiaries are released from any further liability in connection
      therewith;

     

    (B)
        any
      securities, notes or other obligations received by the Borrower or any such
      Restricted Subsidiary from such transferee that are converted by the Borrower
      or
      such Restricted Subsidiary into cash within 180 days thereafter (to the
      extent of the cash received in that conversion); and

     

    (C)
        any
      Designated Noncash Consideration received by the Borrower or any of its
      Restricted Subsidiaries in such Asset Sale having an aggregate fair market
      value
      (as determined in good faith by the Board of Directors of the Borrower), taken
      together with all other Designated Noncash Consideration received pursuant
      to
      this clause (C) that is at that time outstanding, not to exceed the greater
      of (x) $50.0 million or (y) 5.0% of Consolidated Tangible Assets
      at the time of the receipt of such Designated Noncash Consideration (with the
      fair market value of each item of Designated Noncash Consideration being
      measured at the time received without giving effect to subsequent changes in
      value).

     

    For
      purposes of this Section 6.09(a)(3)
      above,
      any liabilities of the Borrower or any Restricted Subsidiary that are not
      assumed by the transferee of such assets in respect of which the Borrower and
      all Restricted Subsidiaries are not released from any future liabilities in
      connection therewith shall not be considered consideration.

     

    (b)
        Within
      365 days after the receipt of any Net Proceeds from an Asset Sale, the
      Borrower may apply such Net Proceeds at its option:

     

    (1)
        to
      repay
      Indebtedness under the Nortek Credit Agreement, secured Indebtedness of the
      Borrower or Indebtedness of any Restricted Subsidiary (other than Indebtedness
      which is by its terms subordinated to any Loan Guarantee) and, if the
      Indebtedness repaid is revolving credit Indebtedness, to correspondingly reduce
      commitments with respect thereto; provided
      that if
      an offer to purchase, redeem or otherwise repay any Indebtedness of any
      Restricted Subsidiary is made in accordance with the terms of such Indebtedness,
      the obligation to reduce Indebtedness of such Restricted Subsidiary will be
      deemed to be satisfied to the extent of the amount of the offer, whether or
      not
      accepted by the holders thereof, and the amount of Net Proceeds will be reduced
      to the extent of the amount of the offer;

     

    (2)
        to
      acquire all or substantially all of the assets of, or a majority of the Voting
      Stock of, another Person engaged in a Permitted Business;

     

    (3)
        to
      acquire other assets, including investments in property, or to make capital
      expenditures, that, in either case, are used or useful in a Permitted Business;
      or

     

    (4)
        any
      combination of the foregoing;

     

    provided
      that the
      Borrower shall be deemed to have applied Net Proceeds in accordance with this
      paragraph within such 365-day period if, within such 365-day period, it has
      entered into a binding commitment or agreement to invest such Net Proceeds
      and
      continues to use all reasonable efforts to so apply such Net Proceeds as soon
      as
      practicable thereafter but in any event within 180 days after the end of
      such 365-day period; provided
      further
      that
      upon the earlier of (x) any abandonment or termination of such commitment or
      agreement or (y) the end of such 180-day period, the Net Proceeds not applied
      will constitute Excess Proceeds.

     

    Pending
      the final application of any such Net Proceeds, the Borrower may temporarily
      reduce revolving credit borrowings or otherwise invest such Net Proceeds in
      any
      manner that is not prohibited by this Agreement.

     

    6.10  Limitation
      on Transactions with Affiliates.
      The
      Borrower shall not, and shall not permit any of its Restricted Subsidiaries
      to,
      make any payment to, or sell, lease, transfer or otherwise dispose of any of
      its
      properties or assets to, or purchase any property or assets from, or enter
      into
      or make or amend any transaction, contract, agreement, understanding, loan,
      advance or Guarantee with, or for the benefit of, any Affiliate involving
      aggregate consideration in excess of $5.0 million on or after the Closing
      Date (each, an “Affiliate
      Transaction”),
      unless:

     

    (1)
        such
      Affiliate Transaction is on terms that are no less favorable to the Borrower
      or
      the relevant Restricted Subsidiary than those that would have been obtained
      in a
      comparable transaction by the Borrower or such Restricted Subsidiary with an
      unrelated Person; and

     

    (2)
        the
      Borrower delivers to the Administrative Agent:

     

    (a)  with
      respect to any Affiliate Transaction or series of related Affiliate Transactions
      involving aggregate consideration in excess of $10.0 million, a resolution
      of the Board of Directors of the Borrower set forth in an Officers’ Certificate
      certifying that such Affiliate Transaction complies with this Section 6.10
      and that
      such Affiliate Transaction has been approved by a majority of the disinterested
      members of the Board of Directors of the Borrower; and

     

    (b)  with
      respect to any Affiliate Transaction or series of related Affiliate Transactions
      involving aggregate consideration in excess of $25.0 million, an opinion as
      to the fairness to the Borrower or such Restricted Subsidiary of such Affiliate
      Transaction from a financial point of view issued by an Independent Financial
      Advisor.

     

    The
      following items shall not be deemed to be Affiliate Transactions and, therefore,
      will not be subject to the provisions of the prior paragraph:

     

    (1) any
      consulting or employment agreement or arrangement entered into by the Borrower
      or any of its Restricted Subsidiaries approved by a majority of the
      disinterested members of the Board of Directors of the Borrower (or the Board
      of
      Directors of Nortek in the case of Nortek and its Restricted
      Subsidiaries);

     

    (2) transactions
      between or among the Borrower and/or its Restricted Subsidiaries;

     

    (3) payment
      of reasonable directors’ fees to directors of the Borrower, any Parent or any
      Restricted Subsidiary and the provision of customary indemnities to directors,
      officers, employees or consultants of the Borrower, and any Parent or any
      Restricted Subsidiary;

     

    (4) issuances
      and sales of Equity Interests (other than Disqualified Stock) to Affiliates
      of
      the Borrower;

     

    (5) any
      tax
      sharing agreement or arrangement and payments pursuant thereto among the
      Borrower and its Subsidiaries and any other Person with which the Borrower
      or
      its Subsidiaries is required or permitted to file a consolidated, combined
      or
      unitary tax return or with which the Borrower or any of its Restricted
      Subsidiaries is or could be part of a consolidated, combined or unitary group
      for tax purposes in amounts not otherwise prohibited by this
      Agreement;

     

    (6) Restricted
      Payments that are permitted by Section 6.07
      or any
      Permitted Investments;

     

    (7) the
      payment (directly or through any Parent) of annual management, consulting,
      monitoring and advising fees and related expenses to the Equity Sponsor and
      its
      respective Affiliates pursuant to the Sponsor Management Agreement, as the
      same
      may be amended, modified or replaced from time to time, so long as any such
      amendment, modification or replacement is not materially less favorable to
      the
      Borrower and its Restricted Subsidiaries than such agreement as in effect on
      the
      Closing Date;

     

    (8) payments
      by the Borrower or any of its Restricted Subsidiaries to the Equity Sponsor
      and
      its Affiliates for any financial advisory, financing, underwriting or placement
      services or in respect of other investment banking activities, including,
      without limitation, in connection with acquisitions or divestitures, which
      payments are approved by the majority of the Board of Directors of the Borrower
      (or the Board of Directors of Nortek in the case of Nortek and its Restricted
      Subsidiaries) in good faith; provided
      that the
      maximum aggregate amount of any such fees in any 12-month period shall not
      exceed 1.25% of the aggregate transaction value (including enterprise value
      in
      connection with acquisitions or divestitures) (or portion thereof) in respect
      of
      which such services are rendered (excluding, in any case, commitment or similar
      fees for providing financing);

     

    (9) loans
      to
      employees that are approved in good faith by a majority of the Board of
      Directors of the Borrower (or the Board of Directors of Nortek in the case
      of
      Nortek and its Restricted Subsidiaries) in an amount not to exceed
      $5.0 million outstanding at any time and advances and expense
      reimbursements to employees in the ordinary course of business;

     

    (10) agreements
      (and payments relating thereto) existing on the Closing Date, as the same may
      be
      amended, modified or replaced from time to time, so long as any amendment,
      modification or replacement is not materially less favorable to the Borrower
      and
      its Restricted Subsidiaries than such agreements as in effect on the Closing
      Date;

     

    (11) transactions
      with a joint venture engaged in a Permitted Business; provided
      that all
      the outstanding ownership interests of such joint venture are owned only by
      the
      Borrower, its Restricted Subsidiaries and Persons who are not Affiliates of
      the
      Borrower;

     

    (12) transactions
      between a Receivables Subsidiary and any Person in which the Receivables
      Subsidiary has an Investment;

     

    (13) transactions
      with customers, clients, suppliers or purchasers or sellers of goods, in each
      case in the ordinary course of business; and

     

    (14) transactions
      which have been approved by a majority of the disinterested members of the
      Board
      of Directors of the Borrower (or the Board of Directors of Nortek in the case
      of
      Nortek and its Restricted Subsidiaries) and with respect to which an Independent
      Financial Advisor has delivered an opinion as to the fairness to the Borrower
      or
      such Restricted Subsidiary of such transaction from a financial point of
      view.

     

    6.11  Dividend
      and Other Payment Restrictions Affecting Restricted
      Subsidiaries

     

    (a)
        The
      Borrower shall not, and shall not permit any of its Restricted Subsidiaries
      to,
      directly or indirectly, create or permit to exist or become effective any
      consensual encumbrance or restriction on the ability of any Restricted
      Subsidiary to:

     

    (1)
        pay
      dividends or make any other distributions on its Capital Stock to the Borrower
      or any of its Restricted Subsidiaries or pay any indebtedness owed to the
      Borrower or any of its Restricted Subsidiaries;

     

    (2)
        make
      loans or advances to the Borrower or any of its Restricted Subsidiaries;
      or

     

    (3)
        transfer
      any of its properties or assets to the Borrower or any of its Restricted
      Subsidiaries.

     

    (b)
        However,
      the preceding restrictions will not apply to encumbrances or restrictions
      existing under or by reason of:

     

    (1)
        Existing
      Indebtedness and the Nortek Credit Agreement;

     

    (2)
        this
      Agreement, the Loans and the Loan Guarantees, if any, or by other Indebtedness
      of the Borrower or a Guarantor, if any, which is pari
      passu
      in right
      of payment with the Loans or the Loan Guarantees, as applicable, incurred
      pursuant to Section 6.06;
      provided
      that the
      encumbrances and restrictions are no more restrictive, taken as a whole, than
      those contained in this Agreement;

     

    (3)
        applicable
      law or regulation;

     

    (4)
        any
      agreements or instruments governing Indebtedness or Capital Stock of a Person
      acquired by the Borrower or any of its Restricted Subsidiaries as in effect
      at
      the time of such acquisition (except to the extent such Indebtedness or Capital
      Stock was incurred or issued, as the case may be, in connection with or in
      contemplation of such acquisition), which encumbrance or restriction is not
      applicable to any Person, or the properties or assets of any Person, other
      than
      the Person, or the property or assets of the Person, so acquired; provided
      that, in
      the case of Indebtedness, such Indebtedness was permitted by the terms of this
      Agreement to be incurred;

     

    (5)
        Indebtedness
      incurred by Restricted Subsidiaries in compliance with Section 6.06;
      provided
      either
      (i) the provisions relating to such encumbrance or restriction contained in
      such
      Indebtedness, taken as a whole, are not less favorable to the Borrower in any
      material respect as determined by the Board of Directors of the Borrower in
      its
      good faith judgment than the provisions contained in the Nortek Credit Agreement
      and the Senior Subordinated Notes Indenture in each case, as in effect on the
      Closing Date, or (ii) any encumbrance or restriction contained in such
      Indebtedness does not prohibit (except upon a default or event of default
      thereunder) the payment of dividends in an amount sufficient, as determined
      by
      the Board of Directors of the Borrower in its good faith judgment, to make
      payments of cash interest on Loans after the fifth anniversary of the Closing
      Date;

     

    (6)
        customary
      non-assignment provisions in leases, licenses and other agreements entered
      into
      in the ordinary course of business;

     

    (7)
        purchase
      money obligations for property acquired in the ordinary course of business
      that
      impose restrictions on the property so acquired of the nature described in
      Section 6.11(a)(3);

     

    (8)
        an
      agreement entered into for the sale or disposition of Capital Stock or assets
      of
      a Restricted Subsidiary or an agreement entered into for the sale of specified
      assets or the granting of an option to purchase specified assets (in either
      case, so long as such encumbrance or restriction, by its terms, terminates
      on
      the earlier of the termination of such agreement or the consummation of such
      agreement and so long as such restriction applies only to the Capital Stock
      or
      assets to be sold);

     

    (9)
        Permitted
      Refinancing Indebtedness; provided
      that the
      encumbrances and restrictions contained in the agreements governing such
      Permitted Refinancing Indebtedness are no more restrictive, taken as a whole,
      than those contained in the agreements governing the Indebtedness being
      refinanced;

     

    (10)
        Permitted
      Liens securing Indebtedness of the Borrower or Liens securing Indebtedness
      of
      any Restricted Subsidiary, in each case, that limit the right of the debtor
      to
      dispose of the assets subject to such Lien;

     

    (11)
        customary
      limitations on the disposition or distribution of assets or property in joint
      venture agreements and other similar agreements entered into in the ordinary
      course of business;

     

    (12)
        any
      Purchase Money Note, or other Indebtedness or contractual requirements of a
      Receivables Subsidiary in connection with a Qualified Securitization
      Transaction; provided
      that
      such restrictions only apply to such Receivables Subsidiary;

     

    (13)
        cash
      or
      other deposits or net worth imposed by customers or agreements entered into
      in
      the ordinary course of business;

     

    (14)
        customary
      provisions in joint venture agreements;

     

    (15)
        Indebtedness
      of a Foreign Restricted Subsidiary permitted to be incurred under this
      Agreement; and

     

    (16)
        any
      encumbrances or restrictions imposed by any amendments, modifications,
      restatements, renewals, increases, supplements, refundings, replacements or
      refinancings of the agreements, contracts, instruments or obligations referred
      to in clauses (1) through (15) above; provided
      that
      such amendments, modifications, restatements, renewals, increases, supplements,
      refundings, replacements or refinancings are, in the good faith judgment of
      the
      Borrower’s Board of Directors, not materially more restrictive, taken as a
      whole, with respect to such dividend and other payment restrictions than the
      dividend or other payment restrictions contained in the contracts, agreements,
      instruments or obligations referred to in clauses (1) through (15) above
      prior to such amendment, modification, restatement, renewal, increase,
      supplement, refunding, replacement or refinancing; provided
      further,
      however,
      that
      with respect to contracts, agreements, instruments or obligations existing
      on
      the Closing Date, any such amendments, modifications, restatements, renewals,
      increases, supplements, refundings, replacements or refinancings contain, in
      the
      good faith judgment of the Borrower’s Board of Directors, dividend and other
      payment restrictions that are not materially more restrictive, taken as a whole,
      than such restrictions contained in such contracts, instruments or obligations
      as in effect on the Closing Date.

     

    6.12  Future
      Guarantors.
      (a)
      The
      Borrower shall cause each Domestic Subsidiary that Guarantees any Indebtedness
      of the Borrower to, at the same time such Restricted Subsidiary Guarantees
      such
      Indebtedness, execute and deliver to the Administrative Agent a Loan Guarantee
      pursuant to which such Restricted Subsidiary shall unconditionally (subject
      to
      limitations determined by the Board of Directors of the Borrower to be customary
      in order to prevent such Guarantee from constituting a fraudulent conveyance)
      Guarantee payment of the Loans on a joint and several senior unsecured basis
      (and if such other Indebtedness of the Borrower is subordinated Indebtedness,
      the Guarantee by such Restricted Subsidiary of such Indebtedness shall be
      subordinated to the same extent to such Restricted Subsidiary’s Loan
      Guarantee).

     

    (b)
        The
      Loan
      Guarantee of a Guarantor will be automatically released:

     

    (1)
        in
      connection with any sale or other disposition of all or substantially all of
      the
      assets of that Guarantor (including by way of merger or consolidation) to a
      Person that is not (either before or after giving effect to such transaction)
      a
      Restricted Subsidiary of the Borrower, if the sale or other disposition of
      all
      or substantially all of the assets of that Guarantor complies with Section 6.09
      and
Section
      2.12;

     

    (2)
        in
      connection with any sale of all of the Capital Stock of a Guarantor to a Person
      that is not (either before or after giving effect to such transaction) a
      Restricted Subsidiary of the Borrower, if the sale of all such Capital Stock
      of
      that Guarantor complies with Section 6.09
      and
Section
      2.12;

     

    (3)
        if
      the
      Borrower properly designates any Restricted Subsidiary that is a Guarantor
      as an
      Unrestricted Subsidiary;

     

    (4)
        in
      connection with any sale of Capital Stock of a Guarantor to a Person that
      results in the Guarantor no longer being a Subsidiary of the Borrower, if the
      sale of such Capital Stock of that Guarantor complies with Section 6.09
      and
Section
      2.12;

     

    (5)
        upon
      the
      release or discharge of the Guarantee by such Restricted Subsidiary of
      Indebtedness of the Borrower or the repayment of the Indebtedness or
      Disqualified Stock, in each case, which resulted in the obligation to Guarantee
      the Loans; or

     

    (6)
        upon
      the
      applicable Subsidiary ceasing to be a Subsidiary as a result of any foreclosure
      of any pledge or security interest securing such other Indebtedness or other
      exercise of remedies in respect thereof.

     

    6.13  Reports.

     

    (a)
        Whether
      or not required by the Commission, so long as any Loans are outstanding the
      Borrower shall furnish to the Administrative Agent, on behalf of the Lenders,
      within the time periods specified in the Commission’s rules and
      regulations:

     

    (1)
        all
      quarterly and annual financial information that would be required to be
      contained in a filing with the Commission on Forms 10-Q and 10-K if the Borrower
      were required to file such Forms, including a “Management’s Discussion and
      Analysis of Financial Condition and Results of Operations” and, with respect to
      the annual information only, a report on the annual financial statements by
      the
      Borrower’s certified independent accountants; and

     

    (2)
        all
      current reports that would be required to be filed with the Commission on Form
      8-K if the Borrower were required to file such reports;

     

    provided
      that if
      the Borrower files such reports electronically with the Commission’s Electronic
      Data Gathering Analysis and Retrieval System (or any successor system) within
      such time periods, the Borrower shall not be required under this Agreement
      to
      furnish such reports as specified above.

     

    (b)
        In
      addition, if at any time any Parent becomes a Guarantor (there being no
      obligation of any Parent to do so) and holds no material assets other than
      cash,
      Cash Equivalents and the Capital Stock of the Borrower or any Parent (and
      performs the related incidental activities associated with such ownership),
      the
      reports, information and other documents required to be filed and furnished
      to
      Lenders of the Loans pursuant to this Section 6.13
      may, at
      the option of the Borrower, be filed by and be those of any Parent rather than
      the Borrower.

     

    (c)
        The
      Administrative Agent shall not be under a duty to review or evaluate any report
      or information delivered to the Administrative Agent pursuant to the provisions
      of this Section 6.13
      for the
      purposes of making such reports available to it and to the Lenders who may
      request such information. Delivery of such reports, information and documents
      to
      the Administrative Agent as may be required under this Section 6.13
      is for
      informational purposes only and the Administrative Agent’s receipt of such shall
      not constitute constructive notice of any information contained therein or
      determinable from information contained therein, including the Borrower’s
      compliance with any of its covenants hereunder (as to which the Administrative
      Agent is entitled to rely exclusively on an Officers’ Certificate).

     

    6.14  Designation
      of Restricted and Unrestricted Subsidiaries.
      The
      Board of Directors of the Borrower may designate any Restricted Subsidiary
      to be
      an Unrestricted Subsidiary if that designation would not cause a Default;
      provided that in no event shall there be any Unrestricted Subsidiaries on or
      immediately following the Closing Date. If a Restricted Subsidiary is designated
      as an Unrestricted Subsidiary, the aggregate fair market value of all
      outstanding Investments owned by the Borrower and its Restricted Subsidiaries
      in
      the Subsidiary so designated (after giving effect to any sale of Equity
      Interests of such Subsidiary in connection with such designation) will be deemed
      to be an Investment made as of the time of such designation and will either
      reduce the amount available for Restricted Payments under Section 6.07(a)
      or reduce the amount available for future Investments under one or more
      clauses of the definition of “Permitted Investments.” That designation
      shall only be permitted if such Investment would be permitted at that time
      and
      if such Restricted Subsidiary otherwise meets the definition of an Unrestricted
      Subsidiary. The Board of Directors of the Borrower may at any time designate
      any
      Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such
      designation shall be deemed to be an incurrence of Indebtedness by a Restricted
      Subsidiary of the Borrower of any outstanding Indebtedness of such Unrestricted
      Subsidiary and such designation shall only be permitted if (1) such
      Indebtedness is permitted under Section 6.06, calculated on a pro forma
      basis as if such designation had occurred at the beginning of the four-quarter
      reference period; and (2) no Default or Event of Default would be in
      existence following such designation.

     

    6.15  Business
      Activities. The Borrower shall not, and shall not permit any Restricted
      Subsidiary to, engage in any business other than Permitted Businesses, except
      as
      would not be material to the Borrower and its Subsidiaries, taken as a
      whole.

     

    6.16  Merger,
      Consolidation, or Sale of Assets

     

    (a)
        The
      Borrower shall not, directly or indirectly, consolidate or merge with or into
      another Person (whether or not the Borrower is the surviving corporation),
      and
      the Borrower will not sell, assign, transfer, convey or otherwise dispose of
      all
      or substantially all of the properties or assets of the Borrower and its
      Restricted Subsidiaries taken as a whole, in one or more related transactions,
      to another Person (including by way of consolidation or merger),
      unless:

     

    (1)
        either:
      (A) the Borrower is the surviving corporation or (B) the Person formed
      by or surviving any such consolidation or merger (if other than the Borrower)
      or
      to which such sale, assignment, transfer, conveyance or other disposition shall
      have been made is a corporation, partnership or limited liability company
      organized or existing under the laws of the United States, any state thereof
      or
      the District of Columbia; provided
      that, in
      the case such Person is a limited liability company or a partnership, a
      co-obligor of the Loans is a corporation;

     

    (2)
        the
      Person formed by or surviving any such consolidation or merger (if other than
      the Borrower) or the Person to which such sale, assignment, transfer, conveyance
      or other disposition shall have been made assumes all the obligations of the
      Borrower, as the case may be, under the Loans and this Agreement pursuant to
      agreements reasonably satisfactory to the Administrative Agent;

     

    (3)
        immediately
      after such transaction and any related financing transactions, no Default or
      Event of Default exists; and

     

    (4)
        the
      Borrower or the Person formed by or surviving any such consolidation or merger
      (if other than the Borrower), or to which such sale, assignment, transfer,
      conveyance or other disposition shall have been made, on the date of such
      transaction after giving pro forma effect thereto and any related financing
      transactions as if the same had occurred at the beginning of the applicable
      four-quarter period either (A) would be permitted to incur at least $1.00
      of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test
      set
      forth in clause (x) of Section 6.06(a),
      or
      (B) would have a Fixed Charge Coverage Ratio on such basis higher than the
      Fixed Charge Coverage Ratio of the Borrower immediately prior to such
      transactions.

     

    (b)
        Notwithstanding
      clauses (3) and (4) of Section 6.16(a),
      the
      Borrower may merge or consolidate with a Restricted Subsidiary incorporated
      solely for the purposes of organizing the Borrower in another
      jurisdiction.

     

    (c)
        The
      Borrower shall not, directly or indirectly, lease all or substantially all
      of
      its properties or assets, in one or more related transactions, to any other
      Person.

     

    (d)
        This
      Section 6.16
      shall
      not apply to a sale, assignment, transfer, conveyance or other disposition
      of
      assets (including by way of consolidation or merger) between or among the
      Borrower and any of its Restricted Subsidiaries.

     

    (e)
        In
      connection with any such consolidation, merger, sale, assignment, transfer,
      conveyance or other disposition, the Borrower shall deliver, or cause to be
      delivered, to the Administrative Agent, in form and substance reasonably
      satisfactory to the Administrative Agent, an Officers’ Certificate and an
      Opinion of Counsel, each stating that such consolidation, merger, sale,
      assignment, transfer, conveyance or other disposition comply with this Agreement
      and that all conditions precedent therein provided for relating to such
      transactions have been complied with.

     

    (f)
        Upon
      any
      such consolidation, merger, sale, assignment, transfer, conveyance or other
      disposition, the successor Person formed by such consolidation or into which
      the
      Borrower is merged or the successor Person to which such transfer is made shall
      succeed to, and be substituted for, and may exercise every right and power
      of,
      the Borrower under this Agreement with the same effect as if such successor
      Person had been named as the Borrower in this Agreement, and when a successor
      Person assumes all the obligations of its predecessor under this Agreement,
      the
      predecessor shall be released from those obligations; provided,
      however,
      that in
      the case of a transfer by lease, the predecessor shall not be released from
      the
      payment of principal of, premium, if any, and interest on the
      Loans.

     

    6.17  Exchange
      Notes.
      (a)
      In
      the
      event that any Loans remain outstanding on the 270th day after the Closing
      Date,
      (i) the Borrower and the Administrative Agent shall agree to the form of
      the Exchange Note Indenture (and all exhibits and appendices thereto) (such
      agreement to be evidenced in a writing satisfactory to the Borrower and the
      Administrative Agent), it being understood that the covenants and events of
      default contained in such Exchange Note Indenture, to the extent analogous,
      shall be substantially similar to the covenants and events of default contained
      in Article VI and Article VII herein, respectively, with such changes
      as are appropriate, and (1) the Change of Control Prepayment for any Fixed
      Rate Exchange Notes (as defined below) shall be for a purchase price in cash
      equal to 101% of the principal amount thereof plus accrued but unpaid interest
      to the date of repurchase, (2) a Lender shall have the right to fix the
      interest rate on an Exchange Note at the interest rate then in effect on such
      Exchange Note (each such note, a “Fixed
      Rate Exchange Note”);
      provided that prior to the Mandatory Prepayment Termination Date (but not on,
      or
      after, such date), such right may only be exercised upon the sale of an Exchange
      Note to a third party purchaser, (3) each Fixed Rate Exchange Note shall be
      non-callable prior to September 1, 2009 (subject to equity clawback and
      make-whole provisions on terms substantially similar to those contained in
      the
      NTK Senior Discount Notes Indenture) and shall be callable thereafter at par
      plus accrued interest plus a premium equal to 50% of the interest rate thereon
      in effect on the date of issuance of such Fixed Rate Exchange Note, which
      premium shall decline ratably on each yearly anniversary of the date of such
      sale to zero two years prior to the Final Maturity Date, (4) the amendment
      provisions in the Exchange Note Indenture shall be substantially similar to
      the
      amendment provisions contained in the NTK Senior Discount Notes Indenture,
      (5)
      interest on the Exchange Notes shall be computed on the basis of a 360-day
      year
      comprised of twelve 30-day months and (6) the Exchange Note Indenture shall
      contain provisions similar to Section 2.06(b) with respect to all Exchange
      Notes
      and Section 2.04(a) and (b) with respect to Increasing Rate Exchange Notes
      and
      (ii) on the date of the first issuance of Exchange Notes, the Borrower shall
      place the full amount of the Exchange Notes (other than the Exchange Notes
      actually issued on such date) that may be issued pursuant to the terms hereof
      in
      escrow, on terms reasonably satisfactory to the Administrative Agent, and with
      a
      fiduciary reasonably satisfactory to the Administrative Agent, to be held,
      undated, in escrow pending issuance pursuant to the terms hereof. The Exchange
      Note Indenture shall be in such form that it can be qualified under the U.S.
      Trust Indenture Act of 1939, as amended.

     

    (b)
        The
      Borrower shall, no later than ten Business Days prior to the Initial Maturity
      Date, (i) cause the Exchange Notes to become eligible for deposit at The
      Depository Trust Company (including by the filing of an appropriately executed
      letter of representations), (ii) obtain “CUSIP” and “ISIN” numbers for the
      Exchange Notes and (iii) cause the Exchange Notes to be eligible for trading
      in
      the Private Offerings, Resales and Trading through Automatic Linkages
      (“Portal”)
      market.

     

    (c)
        On
      or
      prior to the fifth Business Day following the receipt of an Exchange Request
      from a Lender in accordance with Section
      2.03(b)
      (and
      subject to the proviso set forth therein) that requests the exchange of any
      Loan
      (or portion thereof to the extent permitted by such Section) of such Lender
      for
      Exchange Notes, the Borrower shall use all commercially reasonable efforts
      to
      cause the Trustee to deliver, in accordance with the instructions set forth
      in
      such Exchange Request and with the terms of the Exchange Note Indenture, a
      fully
      executed and authenticated Exchange Note or Exchange Notes, bearing interest
      and
      with a maturity date as set forth for such Exchange Notes in the Exchange Note
      Indenture, in exchange for such Loan, dated the date of the issuance of such
      Exchange Note. Such Exchange Note shall either (i) be recorded in book-entry
      form as a beneficial interest in one or more global notes deposited with the
      Trustee as custodian for the Depositary Trust Company and credited to the
      account of the exchanging Lender directly or indirectly through its participant
      in the Depository Trust Company system, in each case in the same principal
      amount as such Loan (or portion thereof) being exchanged or (ii) if the
      foregoing is not reasonably practicable, be issued as a definitive registered
      note payable to the order of the holder or beneficial owner, as the case may
      be,
      in the same principal amount as such Loan (or portion thereof) being
      exchanged.

     

    ARTICLE
      VII

     

    DEFAULT
      AND REMEDIES

     

    7.01  Events
      of Default.
      Each of
      the following constitutes an “Event of Default”:

     

    (1) the
      Borrower defaults for 30 days in the payment when due of interest on the
      Loans;

     

    (2) the
      Borrower defaults in payment when due of the principal of, or premium if any,
      on
      any Loans when and as the same shall become due and payable, whether at the
      due
      date thereof or at the date fixed for prepayment thereof or by acceleration
      thereof or otherwise;

     

    (3) failure
      by the Borrower or any of its Restricted Subsidiaries to comply with
Sections 2.11,
      2.12,
      6.09
      and
6.16;

     

    (4) failure
      by the Borrower or any of its Restricted Subsidiaries for 45 days after
      notice by the Administrative Agent or Lenders holding at least 25% in principal
      amount of the then outstanding Loans to comply with any of the other agreements
      in this Agreement;

     

    (5) default
      by the Borrower or any Restricted Subsidiary under any mortgage, indenture
      or
      instrument under which there may be issued or by which there may be secured
      or
      evidenced any Indebtedness for money borrowed by the Borrower or any of its
      Restricted Subsidiaries (or the payment of which is Guaranteed by the Borrower
      or any of its Restricted Subsidiaries) whether such Indebtedness or Guarantee
      now exists, or is created after the Closing Date, if that default:

     

    (a)  is
      caused
      by a failure to make any payment when due at the final maturity (after any
      applicable grace period) of such Indebtedness (a “Payment
      Default”);
      or

     

    (b)  results
      in the acceleration of such Indebtedness prior to its express
      maturity;

     

    and,
      in
      each case, the principal amount of any such Indebtedness, together with the
      principal amount of any other such Indebtedness under which there has been
      a
      Payment Default or the maturity of which has been so accelerated, aggregates
      $25.0 million or more;

     

    (6) failure
      by the Borrower or any of its Restricted Subsidiaries to pay final judgments
      aggregating in excess of $25.0 million (net of any amount covered by
      insurance), which judgments are not paid, discharged or stayed for a period
      of
      60 days after such judgments have become final and non-appealable and, in
      the event such judgment is covered by insurance, an enforcement proceeding
      has
      been commenced by any creditor upon such judgment or decree that is not promptly
      stayed;

     

    (7) the
      Borrower or any of its Significant Subsidiaries or any group of Restricted
      Subsidiaries that, taken together, would constitute a Significant Subsidiary,
      pursuant to or within the meaning of Bankruptcy Law:

     

    (i)
        commences
      a voluntary case; or

     

    (ii)
        consents
      to entry of an order for relief against it in an involuntary case;
      or

     

    (iii)
        consents
      to the appointment of a custodian of it or for all or substantially all of
      its
      property; or

     

    (iv)
        makes
      a
      general assignment for the benefit of its creditors; or

     

    (v)
        generally
      is not paying its debts as they become due; or

     

    (8) a
      court
      of competent jurisdiction enters an order or decree under any Bankruptcy Law
      that:

     

    (i)
        is
      for
      relief against the Borrower or any of its Subsidiaries that is a Significant
      Subsidiary or any group of Subsidiaries that, taken as a whole, would constitute
      a Significant Subsidiary in an involuntary case;

     

    (ii)
        appoints
      a custodian of the Borrower or any of its Subsidiaries that is a Significant
      Subsidiary or any group of Subsidiaries that, taken as a whole, would constitute
      a Significant Subsidiary or for all or substantially all of the property of
      the
      Borrower or any of its Subsidiaries that is a Significant Subsidiary or any
      group of Subsidiaries that, take as a whole, would constitute a Significant
      Subsidiary; or

     

    (iii)
        orders
      the liquidation of the Borrower or any of its Subsidiaries that is a Significant
      Subsidiary or any group of Subsidiaries that, taken as a whole, would constitute
      a Significant Subsidiary;

     

    and
      the
      order or decree remains unstayed and in effect for 60
      consecutive days.

     

    In
      the
      event of a declaration of acceleration of the Loans because an Event of Default
      has occurred and is continuing as a result of the acceleration of any
      Indebtedness described in clause (5) of the preceding paragraph, the
      declaration of acceleration of the Loans shall be automatically annulled if
      the
      holders of any Indebtedness described in clause (5) of the preceding
      paragraph have rescinded the declaration of acceleration in respect of such
      Indebtedness within 30 days of the date of such declaration and if (i) the
      annulment of the acceleration of Loans would not conflict with any judgment
      or
      decree of a court of competent jurisdiction and (ii) all existing Events of
      Default, except nonpayment of Loans or interest on the Loans that became due
      solely because of the acceleration of the Loans have been cured or
      waived.

     

    7.02  Acceleration.
      In the
      case of any Event of Default specified in Section 7.01(7) or (8) that
      occurs and is continuing, then all unpaid principal of, premium, if any, and
      accrued and unpaid interest, if any, on all of the outstanding Loans shall
      ipso
      facto become due and payable immediately without further action or notice on
      the
      part of the Administrative Agent or any Lender.

     

    If
      any
      Event of Default (other than an Event of Default specified in Section 7.01(7)
      or
(8))
      occurs
      and is continuing, the Administrative Agent or Lenders holding at least 25%
      in
      principal amount of the then outstanding Loans may declare all unpaid principal
      of, premium, if any, and accrued interest on the Loans to be due and payable
      immediately by notice in writing to the Borrower specifying the respective
      Event
      of Default.

     

    7.03  Other
      Remedies.
      (a)
      If
      a
      Default occurs and is continuing, the Administrative Agent may pursue any
      available remedy by proceeding at law or in equity to collect the payment of
      principal of, premium, if any, or interest on the Loans or to enforce the
      performance of any provision of this Agreement.

     

    (b)
        The
      Administrative Agent may maintain a proceeding even if it does not possess
      any
      of the Loans. A delay or omission by the Loans or any Lender in exercising
      any
      right or remedy accruing upon a Default shall not impair the right or remedy
      or
      constitute a waiver of or acquiescence in the Default. No remedy is exclusive
      of
      any other remedy. All available remedies are cumulative to the extent permitted
      by law.

     

    7.04  Waiver
      of Defaults.
      Provided the Loans are not then due and payable by reason of a declaration
      of
      acceleration, the Required Lenders may on behalf of all the Lenders waive any
      Default with respect to such Loans and its consequences by providing written
      notice thereof to the Borrower and the Administrative Agent, except a Default
      (1) in the payment of principal of, premium, if any, or interest on any Loan
      or
      (2) in respect of a covenant or provision hereof which under this Agreement
      cannot be modified or amended without the consent of each Lender. In the case
      of
      any such waiver, the Borrower, the Administrative Agent and the Lenders will
      be
      restored to their former positions and rights under this Agreement,
      respectively; provided that no such waiver shall extend to any subsequent or
      other Default or impair any right consequent thereto.

     

    7.05  Control
      by Majority. The Required Lenders may direct the time, method and place of
      conducting any proceeding for any remedy available to the Administrative Agent
      or exercising any trust or power conferred on it. Subject to Section 8.01,
      however, the Administrative Agent may refuse to follow any direction that
      conflicts with any law or this Agreement, that the Administrative Agent
      determines may be unduly prejudicial to the rights of another Lender, or that
      may involve the Administrative Agent in personal liability; provided that the
      Administrative Agent may take any other action deemed proper by the
      Administrative Agent which is not inconsistent with such direction.

     

    In
      the
      event the Administrative Agent takes any action or follows any direction
      pursuant to this Agreement, the Administrative Agent shall be entitled to
      indemnification against any loss or expense caused by taking such action or
      following such direction.

     

    7.06  Limitation
      on Suits.
      A
      Lender may not pursue any remedy with respect to this Agreement
      unless:

     

    (1) the
      Lender gives to the Administrative Agent written notice of a continuing Event
      of
      Default;

     

    (2) the
      Lender or Lenders holding at least 25% in principal amount of the outstanding
      Loans make a written request to the Administrative Agent to pursue the
      remedy;

     

    (3) such
      Lender or Lenders offer and provide to the Administrative Agent reasonable
      indemnity or security against any loss, liability or expense satisfactory to
      the
      Administrative Agent;

     

    (4) the
      Administrative Agent does not comply with the request within 30 days after
      receipt of the request and the offer of indemnity and security; and

     

    (5) during
      such 30-day period the Required Lenders do not give the Administrative Agent
      a
      direction which, in the opinion of the Administrative Agent, is inconsistent
      with the request.

     

    A
      Lender
      may not use this Agreement to prejudice the rights of another Lender or to
      obtain a preference or priority over such other Lender.

     

    7.07  Rights
      of Lenders To Receive Payment.
      Notwithstanding any other provision of this Agreement, the right of any Lender
      to receive payment of the principal of, premium, if any, and interest on a
      Loan,
      on or after the respective due dates expressed in this Agreement, or to bring
      suit for the enforcement of any such payment on or after such respective dates,
      shall not be impaired or affected without the consent of the
      Lender.

     

    7.08  Collection
      Suit by Administrative Agent. If a Default specified in clause (1) or (2)
      of Section 7.01 occurs and is continuing, the Administrative Agent may
      recover judgment in its own name and as trustee of an express trust against
      the
      Borrower or any other obligor on the Loans for the whole amount of the principal
      of, premium, if any, and accrued interest on the Loans and fees remaining
      unpaid, together with interest on overdue principal and premium, if any, and,
      to
      the extent that payment of such interest is lawful, interest on overdue
      installments of interest, in each case at the rate per annum borne by the Loans
      and such further amount as shall be sufficient to cover the costs and expenses
      of collection, including the reasonable compensation, expenses, disbursements
      and advances of the Administrative Agent, its agents and counsel.

     

    7.09  Priorities.
      If the Administrative Agent collects any money or property pursuant to this
      Article VII, it shall pay out the money or property in the following
      order:

     

    FIRST:
      to
      the Administrative Agent for amounts due under Sections 2.06
      and
8.07;

     

    SECOND:
      to Lenders for interest accrued on the Loans to the date of such distribution,
      ratably, without preference or priority of any kind, according to the amounts
      due and payable on the Loans for interest;

     

    THIRD:
      to
      Lenders for the principal amount and premium, if any, due and unpaid on the
      Loans without preference or priority of any kind, according to the amounts
      due
      and payable on the Loans for principal and premium, if any; and

     

    FOURTH:
      to the Borrower.

     

    The
      Administrative Agent, upon prior notice to the Borrower, may fix a Record Date
      and payment date for any payment to Lenders pursuant to this Section 7.09.

     

    7.10  Undertaking
      for Costs.
      In any
      suit for the enforcement of any right or remedy under this Agreement or in
      any
      suit against the Administrative Agent for any action taken or omitted by it
      as
      the Administrative Agent, a court in its discretion may require the filing
      by
      any party litigant in the suit of an undertaking to pay the costs of the suit,
      and the court in its discretion may assess reasonable costs, including
      reasonable attorneys’ fees and expenses, against any party litigant in the suit,
      having due regard to the merits and good faith of the claims or defenses made
      by
      the party litigant. This Section 7.10 does not apply to a suit by the
      Administrative Agent, a suit by a Lender pursuant to Section 7.07, or a
      suit by a Lender or Lenders of more than 10% in principal amount of the
      outstanding Loans.

     

    ARTICLE
      VIII

     

    ADMINISTRATIVE
      AGENT

     

    8.01  Appointment
      and Authorization of Administrative Agent.
      Each
      Lender hereby irrevocably appoints, designates and authorizes the Administrative
      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.
      Notwithstanding any provision to the contrary contained elsewhere herein or
      in
      any other Loan Document, (i) the Administrative Agent shall not have any duties
      or responsibilities, except those expressly set forth herein, nor shall the
      Administrative Agent have or be deemed to have any fiduciary relationship with
      any Lender or participant, and no implied covenants, functions,
      responsibilities, duties, obligations or liabilities shall be read into this
      Agreement or any other Loan Document or otherwise exist against the
      Administrative Agent, (ii) the Administrative Agent shall not have any duty
      to
      take any discretionary action or exercise any discretionary powers, except
      discretionary rights and powers expressly contemplated by the Loan Documents
      that the Administrative Agent is required to exercise in writing by the Required
      Lenders (or such greater or lesser number of Lenders as may be expressly
      required hereby in any instance), (iii) except as expressly set forth in the
      Loan Documents, the Administrative Agent shall not have any duty to disclose
      or
      shall be liable for the failure to disclose, any information relating to the
      Borrower or any of its Subsidiaries that is communicated to or obtained by
      the
      bank serving as the Administrative Agent or any of its Affiliates in any
      capacity and (iv) the Administrative Agent shall not be liable to any Lender
      for
      any action taken or not taken by it with the consent or at the request of the
      Required Lenders (or such greater or lesser number of Lenders as may be
      expressly required hereby in any instance) or in the absence of its own gross
      negligence or willful misconduct. Without limiting the generality of the
      foregoing sentence, the use of the term “agent” herein and in the other Loan
      Documents with reference to the Administrative Agent is not intended to connote
      any fiduciary or other implied (or express) obligations arising under agency
      doctrine of any applicable Law. Instead, such term is used merely as a matter
      of
      market custom, and is intended to create or reflect only an administrative
      relationship between independent contracting parties.

     

    8.02  Delegation
      of Duties. The Administrative Agent may execute any of its duties under this
      Agreement or any other Loan Document by or through agents, employees or
      attorneys-in-fact and shall be entitled to advice of counsel and other
      consultants or experts concerning all matters pertaining to such duties. The
      Administrative Agent shall not be responsible for the negligence or misconduct
      of any agent or attorney-in-fact that they select in the absence of gross
      negligence or willful misconduct.

     

    8.03  Liability
      of Administrative Agent. No Agent-Related Person shall (a) be liable 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 or the transactions contemplated
      hereby (except for its own gross negligence or willful misconduct in connection
      with its duties expressly set forth herein), or (b) be responsible in any manner
      to any Lender or participant for any recital, statement, representation or
      warranty made by any Loan Party or any officer thereof, contained herein or
      in
      any other Loan Document, or in any certificate, report, statement or other
      document referred to or provided for in, or received by the Administrative
      Agent
      under or in connection with, this Agreement or any other Loan Document, or
      the
      validity, effectiveness, genuineness, enforceability or sufficiency of this
      Agreement or any other Loan Document, or for any failure of any Loan Party
      or
      any other party to any Loan Document to perform its obligations hereunder or
      thereunder. No Agent-Related Person shall be under any obligation to any Lender
      or participant to ascertain or to inquire as to the observance or performance
      of
      any of the agreements contained in, or conditions of, this Agreement or any
      other Loan Document, or to inspect the properties, books or records of any
      Loan
      Party or any Affiliate thereof.

     

    8.04  Reliance
      by Administrative Agent

     

    (a)
        The
      Administrative Agent shall be entitled to rely, and shall be fully protected
      in
      relying, upon any writing, communication, signature, resolution, representation,
      notice, consent, certificate, affidavit, letter, telegram, facsimile, telex
      or
      telephone message, electronic mail 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 any Loan Party), independent accountants
      and
      other experts selected by the Administrative Agent. Except for its express
      obligations to the Loan Parties under the Loan Documents, the Administrative
      Agent shall be fully justified in failing or refusing to take any action under
      any 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 Administrative 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 (or such greater or lesser number of Lenders as may be
      expressly required hereby in any instance) and such request and any action
      taken
      or failure to act pursuant thereto shall be binding upon all the
      Lenders.

     

    (b)
        For
      purposes of determining compliance with the conditions specified in Article
      IV,
      each
      Lender that has signed 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 a Lender unless the Administrative Agent shall have received
      notice from such Lender prior to the proposed Closing Date specifying its
      objection thereto.

     

    8.05  Notice
      of Default.
      The
      Administrative Agent shall not be deemed to have knowledge or notice of the
      occurrence of any Default, except with respect to defaults in the payment of
      principal, interest and fees required to be paid to the Administrative Agent
      for
      the account of the Lenders, unless the Administrative Agent shall have received
      written notice from a Lender or the Borrower referring to this Agreement,
      describing such Default and stating that such notice is a “notice of default.”
The Administrative Agent will notify the Lenders of its receipt of any such
      notice. The Administrative Agent shall take such action with respect to any
      Event of Default as may be directed by the Required Lenders in accordance with
      Article VII; provided, however, that unless and until the Administrative Agent
      has received any such direction, the Administrative Agent may (but shall not
      be
      obligated to) take such action, or refrain from taking such action, with respect
      to such Event of Default as it shall deem advisable or in the best interest
      of
      the Lenders.

     

    8.06  Credit
      Decision; Disclosure of Information by the Administrative Agent. Each Lender
      acknowledges that no Agent-Related Person or any other Lender has made any
      representation or warranty to it, and that no act by the Administrative Agent
      hereafter taken, including any consent to and acceptance of any assignment
      or
      review of the affairs of any Loan Party or any Affiliate thereof, shall be
      deemed to constitute any representation or warranty by any Agent-Related Person
      or any other Lender to any Lender as to any matter, including whether
      Agent-Related Persons or other Lenders have disclosed material information
      in
      their possession. Each Lender represents to the Administrative Agent that it
      has, independently and without reliance upon any Agent-Related Person or any
      other Lender 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 the Borrower and its Subsidiaries, and all applicable bank
      or other regulatory Laws relating to the transactions contemplated hereby,
      and
      made its own decision to enter into this Agreement and to extend credit to
      the
      Borrower hereunder. Each Lender also represents that it will, independently
      and
      without reliance upon any Agent-Related Person or any other Lender 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 the Borrower and the other Loan Parties. Except for notices,
      reports and other documents expressly required to be furnished to the Lenders
      by
      the Administrative Agent herein, the Administrative 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 the Borrower or any other Loan Party
      or any of their respective Affiliates which may come into the possession of
      any
      Agent-Related Person.

     

    8.07  Indemnification
      of the Administrative Agent. Whether or not the transactions contemplated hereby
      are consummated, the Lenders shall indemnify upon demand each Agent-Related
      Person (to the extent not reimbursed by or on behalf of the Borrower and without
      limiting the obligation of the Borrower to do so), pro rata, and hold harmless
      each Agent-Related Person from and against any and all Indemnified Liabilities
      incurred by it; provided, however, that no Lender shall be liable for the
      payment to any Agent-Related Person of any portion of such Indemnified
      Liabilities to the extent determined in a final, nonappealable judgment by
      a
      court of competent jurisdiction to have resulted from such Agent-Related
      Person’s own gross negligence or willful misconduct; provided, however, that no
      action taken in accordance with the directions of the Required Lenders shall
      be
      deemed to constitute gross negligence or willful misconduct for purposes of
      this
      Section 8.07. In the case of any investigation, litigation or proceeding giving
      rise to any Indemnified Liabilities, this Section 8.07 applies whether any
      such
      investigation, litigation or proceeding is brought by any Lender or any other
      Person. Without limitation of the foregoing, each Lender shall reimburse the
      Administrative Agent upon demand for their ratable share of any costs or
      out-of-pocket expenses (including Attorney Costs) incurred by the Administrative
      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 the Administrative
      Agent is not reimbursed for such expenses by or on behalf of the Borrower.
      The
      undertaking in this Section 8.07 shall survive the payment of all other
      Obligations and the resignation of the Administrative Agent.

     

    8.08  Administrative
      Agent in its Individual Capacity. Goldman Sachs Credit Partners L.P. 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, underwriting or other business with each
      of
      the Loan Parties and their respective Affiliates as though Goldman Sachs Credit
      Partners L.P. were not the Administrative Agent hereunder and without notice
      to
      or consent of the Lenders. The Lenders acknowledge that, pursuant to such
      activities, Goldman Sachs Credit Partners L.P. or its Affiliates may receive
      information regarding any Loan Party or its Affiliates (including information
      that may be subject to confidentiality obligations in favor of such Loan Party
      or such Affiliate) and acknowledge that the Administrative Agent shall be under
      no obligation to provide such information to them. With respect to its Loans,
      Goldman Sachs Credit Partners L.P. and its Affiliates shall have the same rights
      and powers under this Agreement as any other Lender and may exercise such rights
      and powers as though it were not the Administrative Agent, and the terms
“Lender” and “Lenders” include Goldman Sachs Credit Partners L.P. in its
      individual capacity.

     

    8.09  Successor
      Administrative Agent. The Administrative Agent may resign as an Administrative
      Agent upon thirty (30) days’ notice to the Lenders. If the Administrative Agent
      resigns under this Agreement, the Required Lenders shall appoint from among
      the
      Lenders a successor agent for such Lenders, which successor agent shall be
      consented to by the Borrower at all times other than during the existence of
      an
      Event of Default under Section 7.01(1), (2), (7) or (8) (which consent of
      the Borrower shall not be unreasonably withheld or delayed). If no successor
      agent is appointed prior to the effective date of the resignation of the
      Administrative Agent, the Administrative Agent may appoint, after consulting
      with the Lenders and the Borrower, a successor agent from among the Lenders.
      Upon the acceptance of its appointment as successor agent hereunder, the Person
      acting as such successor agent shall succeed to all the rights, powers and
      duties of the retiring Administrative Agent and the term “Administrative Agent,”
shall mean such successor administrative agent and/or supplemental
      administrative agent, as the case may be, and the retiring Administrative
      Agent’s appointment, powers and duties as the Administrative Agent shall be
      terminated. After the retiring Administrative Agent’s resignation hereunder as
      the Administrative Agent, the provisions of this Article VIII and Sections
      9.04
      and 9.05 shall inure to its benefit as to any actions taken or omitted to be
      taken by it while it was the Administrative Agent under this Agreement. If
      no
      successor agent has accepted appointment as the Administrative Agent by the
      date
      which is thirty (30) days following the retiring Administrative Agent’s notice
      of resignation, such retiring Administrative Agent’s resignation shall
      nevertheless thereupon become effective and the Lenders shall perform all of
      the
      duties of the Administrative Agent hereunder until such time, if any, as the
      Required Lenders appoint a successor agent as provided for above. Upon the
      acceptance of any appointment as the Administrative Agent hereunder by a
      successor every successor Administrative Agent shall thereupon succeed to and
      become vested with all the rights, powers, discretion, privileges, and duties
      of
      such retiring Administrative Agent, and such retiring Administrative Agent
      shall
      be discharged from its duties and obligations under the Loan Documents. After
      an
      Administrative Agent’s resignation hereunder as the Administrative Agent, the
      provisions of this Article VIII shall continue in effect for its benefit in
      respect of any actions taken or omitted to be taken by it while it was acting
      as
      Administrative Agent.

     

    8.10  Administrative
      Agent May File Proofs of Claim. In case of the pendency of any receivership,
      insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
      composition or other judicial proceeding relative to any Loan Party, the
      Administrative Agent (irrespective of whether the principal of any Loan shall
      then be due and payable as herein expressed or by declaration or otherwise
      and
      irrespective of whether the Administrative Agent shall have made any demand
      on
      the Borrower) shall be entitled and empowered, by intervention in such
      proceeding or otherwise:

     

    (a)
        to
      file
      and prove a claim for the whole amount of the principal and interest owing
      and
      unpaid in respect of the Loans and all other Obligations, that are owing and
      unpaid and to file such other documents as may be necessary or advisable in
      order to have the claims of the Lenders and the Administrative Agent (including
      any claim for the reasonable compensation, expenses, disbursements and advances
      of the Lenders and the Administrative Agent and their respective agents and
      counsel and all other amounts due the Lenders and the Administrative Agent
      under
Sections
      2.06
      and
9.04)
      allowed
      in such judicial proceeding; and

     

    (b)
        to
      collect and receive any monies or other property payable or deliverable on
      any
      such claims and to distribute the same;

     

    and
      any
      custodian, receiver, assignee, trustee, liquidator, sequestrator or other
      similar official in any such judicial proceeding is hereby authorized by each
      Lender to make such payments to the Administrative Agent and, in the event
      that
      the Administrative Agent shall consent to the making of such payments directly
      to the Lenders, to pay to the Administrative Agent any amount due for the
      reasonable compensation, expenses, disbursements and advances of the
      Administrative Agent and its agents and counsel, and any other amounts due
      to
      the Administrative Agent under Sections
      2.06
      and
9.04.

     

    Nothing
      contained herein shall be deemed to authorize the Administrative Agent to
      authorize or consent to or accept or adopt on behalf of any Lender any plan
      of
      reorganization, arrangement, adjustment or composition affecting the Obligations
      or the rights of any Lender or to authorize the Administrative Agent to vote
      in
      respect of the claim of any Lender in any such proceeding.

     

    8.11  Other
      Agents; Arrangers
      and Bookrunners. None of the Lenders or other Persons identified on the facing
      page of this Agreement as a “syndication agent”, “documentation agent”,
“co-documentation agent”, “joint lead arranger” or “joint bookrunner” shall have
      any obligation, liability, responsibility or duty under this Agreement other
      than those applicable to all Lenders as such. Without limiting the foregoing,
      none of the Lenders or other Persons so identified shall have or be deemed
      to
      have any fiduciary relationship with any Lender. Each Lender acknowledges that
      it has not relied, and will not rely, on any of the Lenders or other Persons
      so
      identified in deciding to enter into this Agreement or in taking or not taking
      action hereunder.

     

    ARTICLE
      IX

     

    MISCELLANEOUS

     

    9.01  Amendments,
      Etc.
      No
      amendment or waiver of any provision of this Agreement or any other Loan
      Document, and no consent to any departure by the Borrower or any other Loan
      Party therefrom, shall be effective unless in writing signed by the Required
      Lenders and the Borrower or the applicable Loan Party, as the case may be,
      and
      each such waiver or consent shall be effective only in the specific instance
      and
      for the specific purpose for which given; provided, however, that no such
      amendment, waiver or consent shall:

     

    (a)
        extend
      or
      increase the Commitment of any Lender without the written consent of such
      Lender;

     

    (b)
        extend
      the date specified as the Initial Maturity Date or the Final Maturity Date
      or
      otherwise extend the maturity of the Loans (it being understood that the
      automatic maturity date extension to the Final Maturity Date as provided in
      Section 2.03
      shall
      not
      be considered an extension of the maturity of the Loans for purposes of this
      clause (b)),
      or
      postpone any date scheduled for any payment of principal, interest or fees
      under
Section
      2.05
      or
2.06
      without
      the written consent of each Lender directly affected thereby;

     

    (c)
        reduce
      or
      forgive the principal of, or the rate of interest specified herein on, any
      Loan
      or (subject to clause (i)
      of the
      third proviso to this Section 9.01)
      any
      fees or other amounts payable hereunder or under any other Loan Document without
      the written consent of each Lender directly affected thereby; provided,
      however,
      that
      only the consent of the Required Lenders shall be necessary to amend the
      definition of “Default Rate” or to waive any obligation of the Borrower to pay
      interest at the Default Rate;

     

    (d)
        impose
      any additional restrictions on the ability of the Lenders to exchange Extended
      Loans for Exchange Notes or modify the principal amount of Exchange Notes into
      which the principal amount of Extended Loans is exchangeable from 100.0% without
      the written consent of each Lender;

     

    (e)
        change
      Section 2.04(b)
      or
2.04(c),
      any
      provision of this Section 9.01
      or the
      definition of “Required Lenders” without the written consent of each Lender or
      change any other provision of any Loan Document specifying the number or
      percentage of Lenders required to waive, amend or modify any rights thereunder
      or make any determination or grant any consent thereunder, without the written
      consent of such specified number or percentage of the Lenders;

     

    (f)
        change
      the priorities provisions of Section 7.09,
      the pro
      rata treatment provisions of Section 2.11,
      or the
      sharing of payment provisions of Section 2.10
      without
      the consent of each Lender adversely affected thereby;

     

    and
      provided,
      further,
      that
      (i) no amendment, waiver or consent shall, unless in writing and signed by
      the Administrative Agent in addition to the Lenders required above, affect
      the
      rights or duties of, or any fees or other amounts payable to, the Administrative
      Agent under this Agreement or any other Loan Document; (ii) Section 9.07(g)
      may not
      be amended, waived or otherwise modified without the consent of each Granting
      Lender all or any part of whose Loans are being funded by an SPC at the time
      of
      such amendment, waiver or other modification; (iii) the Fee Letter may be
      amended, or rights or privileges thereunder waived, in a writing executed only
      by the parties thereto; and (iv) the definition of “Super Majority Lenders”
may not be amended without the written consent of the Super Majority
      Lenders.

     

    Notwithstanding
      anything to the contrary contained in Section 9.01,
      in the
      event that the Borrower requests that this Agreement be modified or amended
      in a
      manner that would require the unanimous consent of all of the Lenders and such
      modification or amendment is agreed to by the Super Majority Lenders (as
      hereinafter defined), then with the consent of the Borrower and the Super
      Majority Lenders, the Borrower and the Super Majority Lenders shall be permitted
      to amend the Agreement without the consent of the Lender or Lenders that did
      not
      agree to the modification or amendment requested by the Borrower (such Lender
      or
      Lenders, collectively the “Minority
      Lenders”)
      to
      provide for (x) the making of such additional Loans by one or more other
      financial institutions (each of which shall consent to the requested
      modification or amendment) or Super Majority Lender or Lenders, as the case
      may
      be, as may be necessary to repay in full, at par, the outstanding Loans of
      and
      interest and fees payable to the Minority Lenders immediately before giving
      effect to such amendment and (y) such other modifications to this Agreement
      as may be appropriate to effect the foregoing clause (x).
      As used
      herein, the term “Super
      Majority Lenders”
shall
      mean, as of any date of determination, Lenders having more than 66 2/3% of
      the
      sum of the Outstanding Amount.

     

    9.02  Notices
      and Other Communications; Facsimile Copies

     

    (a)
        General.
      Unless
      otherwise expressly provided herein, all notices and other communications
      provided for hereunder or any other Loan Document shall be in writing (including
      by facsimile transmission). All such written notices shall be mailed, faxed
      or
      delivered to the applicable address, facsimile number or (subject to
Section
      9.02(c))
      electronic mail address, and all notices and other communications expressly
      permitted hereunder to be given by telephone shall be made to the applicable
      telephone number, as follows:

     

    (i)
        if
      to the
      Borrower or the Administrative Agent, to the address, facsimile number,
      electronic mail address or telephone number specified for such Person on
Schedule
      9.02
      or to
      such other address, facsimile number, electronic mail address or telephone
      number as shall be designated by such party in a notice to the other parties;
      and

     

    (ii)
        if
      to any
      other Lender, to the address, facsimile number, electronic mail address or
      telephone number specified in its Administrative Questionnaire or to such other
      address, facsimile number, electronic mail address or telephone number as shall
      be designated by such party in a notice to the Borrower and the Administrative
      Agent.

     

    All
      such
      notices and other communications shall be deemed to be given or made upon the
      earlier to occur of (i) actual receipt by the relevant party hereto and (ii)
      (A)
      if delivered by hand or by courier, when signed for by or on behalf of the
      relevant party hereto; (B) if delivered by mail, four Business Days after
      deposit in the mails, postage prepaid; (C) if delivered by facsimile, when
      sent
      and receipt has been confirmed by telephone; and (D) if delivered by electronic
      mail (which form of delivery is subject to the provisions of Section
      9.02(c)),
      when
      delivered; provided,
      however,
      that
      notices and other communications to the Administrative Agent pursuant to
Article
      II
      shall
      not be effective until actually received by such Person; provided,
      further,
      that
      failure to deliver courtesy copies of notices and other communications shall
      in
      no event affect the validity or effectiveness of such notices and other
      communications. In no event shall a voicemail message be effective as a notice,
      communication or confirmation hereunder.

     

    (b)
        Effectiveness
      of Facsimile Documents and Signatures.
      Loan
      Documents may be transmitted and/or signed by facsimile. The effectiveness
      of
      any such documents and signatures shall, subject to applicable Law, have the
      same force and effect as manually-signed originals and shall be binding on
      all
      Loan Parties, the Agents and the Lenders. The Administrative Agent may also
      require that any such documents and signatures be confirmed by a manually-signed
      original thereof; provided,
      however,
      that
      the failure to request or deliver the same shall not limit the effectiveness
      of
      any facsimile document or signature.

     

    (c)
        Limited
      Use of Electronic Mail.
      Electronic mail and Internet and intranet websites may be used only to
      distribute routine communications, and to distribute Loan Documents for
      execution by the parties thereto, and may not be used for any other
      purpose.

     

    (d)
        Reliance
      by Administrative Agent and Lenders.
      The
      Administrative Agent and the Lenders shall be entitled to rely and act upon
      any
      notice (including a telephonic Borrowing Request) purportedly given by or on
      behalf of the Borrower even if (i) such notices were not made in a manner
      specified herein, were incomplete or were not preceded or followed by any other
      form of notice specified herein, or (ii) the terms thereof, as understood by
      the
      recipient, varied from any confirmation thereof. The Borrower shall indemnify
      each Agent-Related Person and each Lender from all losses, costs, expenses
      and
      liabilities resulting from the reliance by such Person on each notice
      purportedly given by or on behalf of the Borrower in the absence of gross
      negligence or willful misconduct. All telephonic notices to the Administrative
      Agent may be recorded by the Administrative Agent, and each of the parties
      hereto hereby consents to such recording.

     

    9.03  No
      Waiver; Cumulative Remedies.
      No
      failure by any Lender or the Administrative Agent to exercise, and no delay
      by
      any such Person in exercising, any right, remedy, power or privilege hereunder
      or under any other Loan Document shall operate as a waiver thereof; nor shall
      any single or partial exercise of any right, remedy, power or privilege
      hereunder preclude any other or further exercise thereof or the exercise of
      any
      other right, remedy, power or privilege. The rights, remedies, powers and
      privileges herein provided, and provided under each other Loan Document, are
      cumulative and not exclusive of any rights, remedies, powers and privileges
      provided by Law.

     

    9.04  Attorney
      Costs, Expenses and Taxes. The Borrower agrees (a) to pay or reimburse the
      Agents for all reasonable costs and expenses incurred in connection with the
      preparation, negotiation, syndication and execution of the commitments to
      provide the Loans hereunder, this Agreement and the other Loan Documents, and
      any actual or proposed amendment, waiver, consent or other modification of
      the
      provisions hereof and thereof (whether or not the transactions contemplated
      thereby are consummated), and the consummation and administration of the
      transactions contemplated hereby and thereby, including all Attorney Costs
      of
      Cravath, Swaine & Moore LLP and local counsel (if any), and (b) to
      pay or reimburse the Administrative Agent and each Lender for all reasonable
      costs and expenses incurred in connection with the enforcement of any rights
      or
      remedies under this Agreement or the other Loan Documents (including all such
      costs and expenses incurred during any legal proceeding, including any
      proceeding under any Debtor Relief Law), including all Attorney Costs of counsel
      to the Administrative Agent. The foregoing costs and expenses shall include
      all
      out-of-pocket expenses incurred by any Agent. All amounts due under this
      Section 9.04 shall be paid within twenty (20) Business Days after invoiced
      or demand therefor. The agreements in this Section 9.04 shall survive the
      termination of this Agreement and the repayment of all other Obligations. If
      the
      Borrower fails to pay when due any costs, expenses or other amounts payable
      by
      it hereunder or under any Loan Document, such amount may be paid on behalf
      of
      the Borrower by the Administrative Agent or any Lender, in its sole
      discretion.

     

    9.05  Indemnification
      by the Borrower. Whether or not the transactions contemplated hereby are
      consummated, the Borrower shall indemnify and hold harmless each Agent-Related
      Person, each Lender and their respective Affiliates, directors, officers,
      employees, counsel, agents and, in the case of any funds, trustees and advisors
      and attorneys-in-fact (collectively the “Indemnitees”)
      from
      and against any and all liabilities, obligations, losses, damages, penalties,
      claims, demands, actions, judgments, suits, costs, expenses and disbursements
      (including Attorney Costs (which shall be limited to one (1) counsel to the
      Administrative Agent and the Lenders (plus any local counsel), unless
      (x) the interests of the Administrative Agent and the Lenders are
      sufficiently divergent, in which case one (1) additional counsel may be
      appointed, and (y)  if the interests of any Lender or group of Lenders
      (other than all of the Lenders) are distinctly or disproportionately affected,
      one (1) additional counsel for such Lender or group of Lenders)) of any kind
      or
      nature whatsoever which may at any time be imposed on, incurred by or asserted
      against any such Indemnitee in any way relating to or arising out of or in
      connection with (a) the execution, delivery, enforcement, performance or
      administration of any Loan Document or any other agreement, letter or instrument
      delivered in connection with the transactions contemplated thereby or the
      consummation of the transactions contemplated thereby, (b) any Loan or the
      use or proposed use of the proceeds therefrom, or (c) any actual or alleged
      presence, Release or threatened Release of Hazardous Materials at, under, on
      or
      from any property currently or formerly owned or operated by the Borrower or
      any
      Subsidiary, or any Environmental Liability related in any way to the Borrower
      or
      any Subsidiary, or (d) any actual or prospective claim, litigation,
      investigation or proceeding relating to any of the foregoing, whether based
      on
      contract, tort or any other theory (including any investigation of, preparation
      for, or defense of any pending or threatened claim, investigation, litigation
      or
      proceeding) and regardless of whether any Indemnitee is a party thereto (all
      the
      foregoing, collectively, the “Indemnified
      Liabilities”),
      in
      all cases, whether or not caused by or arising, in whole or in part, out of
      the
      negligence of the Indemnitee; provided that such indemnity shall not, as to
      any
      Indemnitee, be available to the extent that such liabilities, obligations,
      losses, damages, penalties, claims, demands, actions, judgments, suits, costs,
      expenses or disbursements are determined by a court of competent jurisdiction
      by
      final and nonappealable judgment to have resulted from the gross negligence
      or
      willful misconduct of such Indemnitee or breach of the Loan Documents by such
      Indemnitee. No Indemnitee shall be liable for any damages arising from the
      use
      by others of any information or other materials obtained through IntraLinks
      or
      other similar information transmission systems in connection with this
      Agreement, nor shall any Indemnitee or any Loan Party have any liability for
      any
      special, punitive, indirect or consequential damages relating to this Agreement
      or any other Loan Document or arising out of its activities in connection
      herewith or therewith (whether before or after the Closing Date). In the case
      of
      an investigation, litigation or other proceeding to which the indemnity in
      this
      Section 9.05 applies, such indemnity shall be effective whether or not such
      investigation, litigation or proceeding is brought by any Loan Party, its
      directors, shareholders or creditors or an Indemnitee or any other Person,
      whether or not any Indemnitee is otherwise a party thereto and whether or not
      any of the transactions contemplated hereunder or under any of the other Loan
      Documents is consummated. All amounts due under this Section 9.05 shall be
      payable within twenty (20) Business Days after demand therefor; provided that
      any Indemnitee shall promptly refund amounts paid to such Indemnitee pursuant
      to
      this Section 9.05 to the extent that a court of competent jurisdiction
      determines in a final, nonappealable judgment that such Indemnitee was not
      entitled to indemnification with respect to such payment pursuant to the express
      terms of this Section 9.05. The agreements in this Section 9.05 shall
      survive the resignation of the Administrative Agent, the replacement of any
      Lender and, the repayment, satisfaction or discharge of all other
      Obligations.

     

    9.06  Payments
      Set Aside. To the extent that any payment by or on behalf of any Borrower is
      made to the Administrative Agent or any Lender, or the Administrative Agent
      or
      any Lender exercises its right of setoff, and such payment or the proceeds
      of
      such setoff or any part thereof is subsequently invalidated, declared to be
      fraudulent or preferential, set aside or required (including pursuant to any
      settlement entered into by the Administrative Agent or such Lender in its
      discretion) to be repaid to a trustee, receiver or any other party, in
      connection with any proceeding under any Debtor Relief Law or otherwise, then
      (a) to the extent of such recovery, the obligation or part thereof
      originally intended to be satisfied shall be revived and continued in full
      force
      and effect as if such payment had not been made or such setoff had not occurred,
      and (b) each Lender severally agrees to pay to the Administrative Agent
      upon demand its applicable share of any amount so recovered from or repaid
      by
      the Administrative Agent, plus interest thereon from the date of such demand
      to
      the date such payment is made at a rate per annum equal to the Federal Funds
      Rate from time to time in effect.

     

    9.07  Successors
      and Assigns

     

    (a)
        The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns permitted hereby,
      except that the Borrower may not assign or otherwise transfer any of its rights
      or obligations hereunder (except as expressly permitted by Section 6.16)
      without
      the prior written consent of each Lender and no Lender may assign or otherwise
      transfer any of its rights or obligations hereunder, except (i) in
      accordance with the provisions of Section 9.07(b),
      (ii) by way of participation in accordance with the provisions of
Section 9.07(d),
      (iii) by way of pledge or assignment of a security interest subject to the
      restrictions of Section 9.07(f)
      or
(h)
      or
      (iv) to an SPC in accordance with the provisions of Section
      9.07(g)
      (and any
      other attempted assignment or transfer by any party hereto shall be null and
      void). Nothing in this Agreement, expressed or implied, shall be construed
      to
      confer upon any Person (other than the parties hereto, their respective
      successors and assigns permitted hereby, Participants to the extent provided
      in
Section 9.07(d)
      and, to
      the extent expressly contemplated hereby, the Indemnitees) any legal or
      equitable right, remedy or claim under or by reason of this
      Agreement.

     

    (b)
        Any
      Lender may at any time assign to one or more Persons all or a portion of its
      rights and obligations under this Agreement (including all or a portion of
      the
      Loans at the time owing to it); provided
      that
      (i) the outstanding principal balance of the Loan of the assigning Lender
      subject to each such assignment, determined as of the date the Assignment and
      Assumption with respect to such assignment is delivered to the Administrative
      Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of
      the Trade Date, shall not be less than $1,000,000, except in the case of an
      assignment of the entire amount of the Loans at the time owing to the assigning
      Lender or in the case of an assignment to a Lender or an Affiliate of a Lender
      or an Approved Fund with respect to a Lender, unless the Administrative Agent
      and, so long as no Default has occurred and is continuing, the Borrower
      otherwise consents (each such consent not to be unreasonably withheld or
      delayed); (ii) the parties to each assignment shall execute and deliver to
      the Administrative Agent an Assignment and Assumption; (iii) the assigning
      Lender shall deliver any promissory notes, if any, evidencing such Loans to
      the
      Borrower or the Administrative Agent; (iv) any such assignment (other than
      an assignment to an Affiliate of a Lender or an Approved Fund with respect
      to a
      Lender) (A) that occurs at any time prior to the date that is three months
      after the Closing Date or (B) that occurs at any time prior to the Initial
      Maturity Date and that involves the assignment by an Initial Lender that would
      result in such Initial Lender holding less than 51% of the aggregate principal
      amount of the Loans of such Initial Lender as of the Closing Date, must be
      consented to by the Borrower; and (v) the assigning Lender shall remain
      obligated to refund the Rollover Fee to the extent, and in the circumstances,
      required in accordance with the provisions of Section
      2.06(f);
      provided,
      further,
      that in
      the case of an assignment to an Affiliate of the assigning Lender, such
      assignment shall be effective as between such Lender and its Affiliate
      immediately without compliance with the conditions for assignment under this
      Section 9.07(b)
      or
Section 9.07(d),
      but
      shall not be effective with respect to the Borrower, Administrative Agent or
      any
      other Lender, and the Borrower, Administrative Agent or other Lender shall
      be
      entitled to deal solely with (and continue to treat as the Lender hereunder
      for
      all purposes) such assigning Lender under any such assignment, in each case,
      until the conditions for assignment under this Section 9.07(b)
      and
Section 9.07(c)
      have
      been complied with. Subject to acceptance and recording thereof by the
      Administrative Agent pursuant to Section
      9.07(c),
      from
      and after the effective date specified in each Assignment and Assumption, the
      assignee thereunder shall be a party to this Agreement and, to the extent of
      the
      interest assigned by such Assignment and Assumption, have the rights and
      obligations of a Lender under this Agreement, and the assigning Lender
      thereunder shall, to the extent of the interest assigned by such Assignment
      and
      Assumption, be released from its obligations under this Agreement (and, in
      the
      case of an Assignment and Assumption covering all of the assigning Lender’s
      rights and obligations under this Agreement, such Lender shall cease to be
      a
      party hereto but shall continue to be entitled to the benefits of Sections 3.01,
      3.02,
      3.03,
      9.04
      and
9.05
      with
      respect to facts and circumstances occurring prior to the effective date of
      such
      assignment). Upon request, and the surrender by the assigning Lender of any
      promissory note evidencing the Loan of such Lender, the Borrower (at its
      expense) shall execute and deliver a promissory note to the assignee Lender.
      Any
      assignment or transfer by a Lender of rights or obligations under this Agreement
      that does not comply with this clause (b)
      shall be
      treated for purposes of this Agreement as a sale by such Lender of a
      participation in such rights and obligations in accordance with Section 9.07(d).

     

    (c)
        The
      Administrative Agent, acting solely for this purpose as an agent of the
      Borrower, shall maintain at its Administrative Agent’s Office a copy of each
      Assignment and Assumption relating to the Loans delivered to it and a register
      for the recordation of the names and addresses of the applicable Lenders, and
      principal amounts (and related interest amounts) of the applicable Loans, owing
      to, each Lender pursuant to the terms hereof from time to time (each, a
“Register”).
      The
      entries in the applicable Register shall be conclusive, absent manifest error,
      and the Borrower and the Lenders shall treat each Person whose name is recorded
      in such Register pursuant to the terms hereof as a Lender hereunder for all
      purposes of this Agreement, notwithstanding notice to the contrary. The
      Registers shall be available for inspection by the Borrower and any Lender,
      at
      any reasonable time and from time to time upon reasonable prior
      notice.

     

    (d)
        Any
      Lender may at any time, subject to clause (a),
      without
      the consent of, or notice to, the Borrower (except as otherwise provided below
      in this Section 9.07(d))
      or the
      Administrative Agent, sell participations to any Person (other than a natural
      person) (each, a “Participant”)
      in all
      or a portion of such Lender’s rights and/or obligations under this Agreement
      (including all or a portion of the Loans owing to it); provided
      that
      (i) such Lender’s obligations under this Agreement shall remain unchanged,
      (ii) such Lender shall remain solely responsible to the other parties
      hereto for the performance of such obligations, (iii) the Borrower, the
      Administrative Agent and the other Lenders shall continue to deal solely and
      directly with such Lender in connection with such Lender’s rights and
      obligations under this Agreement and (iv) any such sale of a participation
      (other than any sale of a participation pursuant to Section
      2.10)
      that
      (A) occurs at any time prior to the date that is three months after the
      Closing Date and (B) involves the sale by an Initial Lender of
      participations (together with all other such participations sold by such Initial
      Lender during the period specified in clause (A))
      in
      Loans representing more than 33.0% of the aggregate principal amount of the
      Loans of such Initial Lender as of the Closing Date, must be consented to by
      the
      Borrower. Any agreement or instrument pursuant to which a Lender sells such
      a
      participation shall provide that such Lender shall retain the sole right to
      enforce this Agreement and to approve any amendment, modification or waiver
      of
      any provision of this Agreement; provided
      that
      such agreement or instrument may provide that such Lender will not, without
      the
      consent of the Participant, agree to any amendment, waiver or other modification
      described in the first proviso to Section 9.01
      that
      directly affects such Participant. Subject to Section 9.07(e),
      the
      Borrower agrees that each Participant shall be entitled to the benefits of
      Sections 3.01,
      3.02
      and
3.03
      to the
      same extent as if it were a Lender and had acquired its interest by assignment
      pursuant to Section 9.07(b)
      but
      shall not be entitled to recover greater amounts under such Sections than the
      selling Lender would have been entitled to recover. To the extent permitted
      by
      law, each Participant also shall be entitled to the benefits of Section 9.09
      as
      though it were a Lender, provided such Participant agrees to be subject to
      Section 2.10
      as
      though it were a Lender.

     

    (e)
        A
      Participant shall not be entitled to receive any greater payment under
Section 3.01,
      3.02
      or
3.03
      than the
      applicable Lender would have been entitled to receive with respect to the
      participation sold to such Participant, unless the sale of the participation
      to
      such Participant is made with the Borrower’s prior written consent. A
      Participant shall not be entitled to the benefits of Section 3.01
      unless
      the Borrower is notified of the participation sold to such Participant and
      such
      Participant agrees, for the benefit of the applicable Borrower, to comply with
      Section 9.15
      as
      though it were a Lender.

     

    (f)
        Any
      Lender may at any time pledge or assign a security interest in all or any
      portion of its rights under this Agreement (including under the promissory
      note
      evidencing the Loan of such Lender, if any) to secure obligations of such
      Lender, including any pledge or assignment to secure obligations to a Federal
      Reserve Bank; provided
      that no
      such pledge or assignment shall release such Lender from any of its obligations
      hereunder or substitute any such pledgee or assignee for such Lender as a party
      hereto.

     

    (g)
        Notwithstanding
      anything to the contrary contained herein, any Lender (a “Granting
      Lender”)
      may
      grant to a special purpose funding vehicle identified as such in writing from
      time to time by the Granting Lender to the Administrative Agent and the Borrower
      (an “SPC”)
      the
      option to provide all or any part of the Loan that such Granting Lender would
      otherwise be obligated to make pursuant to this Agreement; provided
      that
      (i) nothing herein shall constitute a commitment by any SPC to fund any
      Loan, and (ii) if an SPC elects not to exercise such option or otherwise
      fails to make all or any part of the Loan, the Granting Lender shall be
      obligated to make the Loan pursuant to the terms hereof. Each party hereto
      hereby agrees that (i) neither the grant to any SPC nor the exercise by any
      SPC of such option shall increase the costs or expenses or otherwise increase
      or
      change the obligations of the Borrower under this Agreement (including their
      obligations under Section 3.01
      or
3.02),
      (ii) no SPC shall be liable for any indemnity or similar payment obligation
      under this Agreement for which a Lender would be liable, and (iii) the
      Granting Lender shall for all purposes, including the approval of any amendment,
      waiver or other modification of any provision of any Loan Document, remain
      the
      lender of record hereunder. The making of a Loan by an SPC hereunder shall
      utilize the Commitment of the Granting Lender to the same extent, and as if,
      such Loan were made by such Granting Lender. Notwithstanding anything to the
      contrary contained herein, any SPC may (i) with notice to, but without
      prior consent of the Borrower and the Administrative Agent, assign all or any
      portion of its right to receive payment with respect to the Loan to the Granting
      Lender and (ii) disclose on a confidential basis any non-public information
      relating to its funding of the Loan to any rating agency, commercial paper
      dealer or provider of any surety or Guarantee or credit or liquidity enhancement
      to such SPC.

     

    (h)
        Notwithstanding
      anything to the contrary contained herein, any Lender that is a Fund may create
      a security interest in all or any portion of the Loans owing to it and the
      promissory note evidencing the same, if any, held by it to the trustee for
      holders of obligations owed, or securities issued, by such Fund as security
      for
      such obligations or securities; provided
      that
      unless and until such trustee actually becomes a Lender in compliance with
      the
      other provisions of this Section 9.07,
      (i) no such pledge shall release the pledging Lender from any of its
      obligations under the Loan Documents and (ii) such trustee shall not be
      entitled to exercise any of the rights of a Lender under the Loan Documents
      even
      though such trustee may have acquired ownership rights with respect to the
      pledged interest through foreclosure or otherwise.

     

    9.08  Confidentiality.
      Each of
      the Agents and the Lenders agrees to maintain the confidentiality of the
      Information, except that Information may be disclosed (a) to its and its
      Affiliates’ directors, officers, employees and agents, including accountants,
      legal counsel and other advisors (it being understood that the Persons to whom
      such disclosure is made will be informed of the confidential nature of such
      Information and instructed to keep such Information confidential); (b) to
      the extent requested by any regulatory authority; (c) to the extent
      required by applicable Laws or regulations or by any subpoena or similar legal
      process; (d) to any other party to this Agreement; (e) subject to an
      agreement containing provisions substantially the same as those of this
      Section 9.08 (or as may otherwise be reasonably acceptable to the
      Borrower), to any assignee of or Participant in, or any prospective assignee
      of
      or Participant in, any of its rights or obligations under this Agreement;
      (f) with the consent of the Borrower; (g) to the extent such
      Information becomes publicly available other than as a result of a breach of
      this Section 9.08; (h) to any state, provincial, Federal or foreign
      authority or examiner (including the National Association of Insurance
      Commissioners or any other similar organization) regulating any Lender or its
      Affiliates; (i) to any rating agency when required by it (it being
      understood that, prior to any such disclosure, such rating agency shall
      undertake to preserve the confidentiality of any Information relating to the
      Borrower received by it from such Lender) or (j) in connection with the
      exercise of any remedy hereunder or any suit, action or proceeding relating
      to
      this Agreement or any other Loan Document or the enforcement of rights hereunder
      or thereunder. In addition, the Agents and the Lenders may disclose the
      existence of this Agreement and information about this Agreement to market
      data
      collectors, similar service providers to the lending industry, and service
      providers to the Agents and the Lenders in connection with the administration
      and management of this Agreement, the other Loan Documents, the Commitments,
      and
      the Loans. For the purposes of this Section 9.08, “Information”
means
      all information received from any Loan Party relating to any Loan Party or
      its
      business, other than any such information that is publicly available to any
      Agent or any Lender prior to disclosure by any Loan Party other than as a result
      of a breach of this Section 9.08; provided that, in the case of information
      received from a Loan Party after the date hereof, such information is clearly
      identified at the time of delivery as confidential. Any Person required to
      maintain the confidentiality of Information as provided in this
      Section 9.08 shall be considered to have complied with its obligation to do
      so if such Person has exercised the same degree of care to maintain the
      confidentiality of such Information as such Person would accord to its own
      confidential information.

     

    9.09  Setoff.
      In addition to any rights and remedies of the Lenders provided by Law, upon
      the
      occurrence and during the continuance of any Event of Default, each Lender
      is
      authorized at any time and from time to time, without prior notice to the
      Borrower or any other Loan Party, any such notice being waived by the Borrower
      (on its own behalf and on behalf of each Loan Party) to the fullest extent
      permitted by Law, to set off and apply any and all deposits (general or special,
      time or demand, provisional or final) at any time held by, and other
      Indebtedness at any time owing by, such Lender to or for the credit or the
      account of the respective Loan Parties against any and all Obligations owing
      to
      such Lender hereunder or under any other Loan Document, now or hereafter
      existing, irrespective of whether or not the Administrative Agent or such Lender
      shall have made demand under this Agreement or any other Loan Document and
      although such Obligations may be contingent or unmatured or denominated in
      a
      currency different from that of the applicable deposit or Indebtedness. Each
      Lender agrees promptly to notify the Borrower and the Administrative 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. The rights of the Administrative Agent and each Lender under this
      Section 9.09 are in addition to other rights and remedies (including,
      without limitation, other rights of setoff) that the Administrative Agent and
      such Lender may have.

     

    9.10  Interest
      Rate Limitation

     

    (a)
        Notwithstanding
      anything to the contrary contained in any Loan Document, the interest paid
      or
      agreed to be paid under the Loan Documents shall not exceed the maximum rate
      of
      non-usurious interest permitted by applicable Law (the “Maximum
      Rate”).
      If
      the Administrative Agent or any Lender shall receive interest in an amount
      that
      exceeds the Maximum Rate, the excess interest shall be applied to the principal
      of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower.
      In determining whether the interest contracted for, charged, or received by
      the
      Administrative Agent or a Lender exceeds the Maximum Rate, such Person may,
      to
      the extent permitted by applicable Law, (a) characterize any payment that
      is not principal as an expense, fee, or premium rather than interest,
      (b) exclude voluntary prepayments and the effects thereof, and
      (c) amortize, prorate, allocate, and spread in equal or unequal parts the
      total amount of interest throughout the contemplated term of the Obligations
      hereunder.

     

    9.11  Counterparts.
      This
      Agreement and each other Loan Document may be executed in one or more
      counterparts, each of which shall be deemed an original, but all of which
      together shall constitute one and the same instrument. Delivery by fax of an
      executed counterpart of a signature page to this Agreement and each other Loan
      Document shall be effective as delivery of an original executed counterpart
      of
      this Agreement and such other Loan Document. The Administrative Agent may also
      require that any such documents and signatures delivered by fax be confirmed
      by
      a manually-signed original thereof; provided that the failure to request or
      deliver the same shall not limit the effectiveness of any document or signature
      delivered by fax.

     

    9.12  Integration.
      This Agreement, together with the other Loan Documents and the Fee Letter,
      comprises the complete and integrated agreement of the parties on the subject
      matter hereof and thereof and supersedes all prior agreements, written or oral,
      on such subject matter. In the event of any conflict between the provisions
      of
      this Agreement and those of any other Loan Document, the provisions of this
      Agreement shall control; provided that the inclusion of supplemental rights
      or
      remedies in favor of the Administrative Agent or the Lenders in any other Loan
      Document shall not be deemed a conflict with this Agreement. Each Loan Document
      was drafted with the joint participation of the respective parties thereto
      and
      shall be construed neither against nor in favor of any party, but rather in
      accordance with the fair meaning thereof.

     

    9.13  Survival
      of Representations and Warranties. All representations and warranties made
      hereunder and in any other Loan Document or other document delivered pursuant
      hereto or thereto or in connection herewith or therewith shall survive the
      execution and delivery hereof and thereof. Such representations and warranties
      have been or will be relied upon by each Agent and each Lender, regardless
      of
      any investigation made by any Agent or any Lender or on their behalf and
      notwithstanding that any Agent or any Lender may have had notice or knowledge
      of
      any Default at the time of any making of any credit extension, and shall
      continue in full force and effect as long as any Loan or any other Obligation
      hereunder shall remain unpaid or unsatisfied.

     

    9.14  Severability.
      If any provision of this Agreement or the other Loan Documents is held to be
      illegal, invalid or unenforceable, the legality, validity and enforceability
      of
      the remaining provisions of this Agreement and the other Loan Documents shall
      not be affected or impaired thereby. The invalidity of a provision in a
      particular jurisdiction shall not invalidate or render unenforceable such
      provision in any other jurisdiction.

     

    9.15  Tax
      Forms

     

    (a)
        (i)
      Each
      Lender and Agent that is not a “U.S. person” within the meaning of
      Section 7701(a)(30) of the Code (each, a “Foreign
      Lender”)
      shall
      deliver to the Borrower and the Administrative Agent, prior to receipt of any
      payment subject to withholding under the Code (or upon accepting an assignment
      of an interest herein), two duly signed, properly completed copies of either
      IRS
      Form W-8BEN or any successor thereto (relating to such Foreign Lender and
      entitling it to an exemption from, or reduction of, United States withholding
      tax on all payments to be made to such Foreign Lender by the Borrower pursuant
      to this Agreement or any other Loan Document) or IRS Form W-8ECI or any
      successor thereto (relating to all payments to be made to such Foreign Lender
      by
      the Borrower or any other Loan Party pursuant to this Agreement or any other
      Loan Document) or such other evidence reasonably satisfactory to the Borrower
      and the Administrative Agent that such Foreign Lender is entitled to an
      exemption from, or reduction of, United States withholding tax, including any
      exemption pursuant to Section 881(c) of the Code, and in the case of a
      Foreign Lender claiming such an exemption under Section 881(c) of the Code,
      a certificate that establishes in writing to the Borrower and the Administrative
      Agent that such Foreign Lender is not (x) a “bank” as described in
      Section 881(c)(3)(A) of the Code, (y) a 10-percent shareholder within
      the meaning of Section 871(h)(3)(B) of the Code, or (z) a controlled
      foreign corporation related to the Borrower within the meaning of
      Section 864(d) of the Code. Thereafter and from time to time, each such
      Foreign Lender shall (A) promptly submit to the Borrower and the
      Administrative Agent such additional duly completed and signed copies of one
      or
      more of such forms or certificates (or such successor forms or certificates
      as
      shall be adopted from time to time by the relevant U.S. taxing authorities)
      as
      may then be available under then current U.S. laws and regulations to avoid,
      or
      such evidence as is reasonably satisfactory to the Borrower and the
      Administrative Agent of any available exemption from, or reduction of, United
      States withholding taxes in respect of all payments to be made to such Foreign
      Lender by the Borrower pursuant to this Agreement, or any other Loan Document,
      in each case, (1) on or before the date that any such form, certificate or
      other evidence expires or becomes obsolete, (2) after the occurrence of any
      event requiring a change in the most recent form, certificate or evidence
      previously delivered by it to the Borrower and the Administrative Agent and
      (3) from time to time thereafter if reasonably requested by the Borrower or
      the Administrative Agent, and (B) promptly notify the Borrower and the
      Administrative Agent of any change in circumstances which would modify or render
      invalid any claimed exemption or reduction.

     

    (ii)
        Each
      Foreign Lender, to the extent it does not act or ceases to act for its own
      account with respect to any portion of any sums paid or payable to such Foreign
      Lender under any of the Loan Documents (for example, in the case of a typical
      participation by such Foreign Lender), shall deliver to the Borrower and the
      Administrative Agent on the date when such Foreign Lender ceases to act for
      its
      own account with respect to any portion of any such sums paid or payable, and
      at
      such other times as may be necessary in the determination of the Borrower or
      the
      Administrative Agent (in either case, in the reasonable exercise of its
      discretion), (A) two duly signed completed copies of the forms or
      statements required to be provided by such Foreign Lender as set forth above,
      to
      establish the portion of any such sums paid or payable with respect to which
      such Foreign Lender acts for its own account that is not subject to United
      States withholding tax, and (B) two duly signed completed copies of IRS
      Form W-8IMY (or any successor thereto), together with any information such
      Foreign Lender chooses to transmit with such form, and any other certificate
      or
      statement of exemption required under the Code, to establish that such Foreign
      Lender is not acting for its own account with respect to a portion of any such
      sums payable to such Foreign Lender.

     

    (iii)
        The
      Borrower shall not be required to pay any additional amount or any indemnity
      payment under Section 3.01
      to
      (A) any Foreign Lender with respect to any Taxes required to be deducted or
      withheld on the basis of the information, certificates or statements of
      exemption such Lender transmits with an IRS Form W-8IMY pursuant to this
Section 9.15(a),
      (B) any Foreign Lender by reason of such Foreign Lender failing to satisfy
      the foregoing provisions of this Section 9.15(a),
      or
      (C) any Lender by reason of such Lender failing to satisfy the provisions
      of Section 9.15(b);
      provided
      that if
      such Lender shall have satisfied the requirement of this Section 9.15(a)
      or
Section 9.15(b),
      as
      applicable, on the date such Lender became a Lender or ceased to act for its
      own
      account with respect to any payment under any of the Loan Documents, nothing
      in
      this Section 9.15(a)
      or
Section 9.15(b)
      shall
      relieve the Borrower of its obligation to pay any amounts pursuant to
Section 3.01
      in the
      event that, as a result of any change in any applicable Law, treaty or
      governmental rule, regulation or order, or any change in the interpretation,
      administration or application thereof, such Lender is no longer properly
      entitled to deliver forms, certificates or other evidence at a subsequent date
      establishing the fact that such Lender or other Person for the account of which
      such Lender receives any sums payable under any of the Loan Documents is not
      subject to withholding or is subject to withholding at a reduced
      rate.

     

    (iv)
        The
      Administrative Agent may deduct and withhold any taxes required by any Laws
      to
      be deducted and withheld from any payment under any of the Loan Documents and
      shall promptly provide notice to the Borrower if it does so. If the
      Administrative Agent deducts or withholds any such taxes, the obligations of
      the
      Borrower to gross-up or indemnify, or the rights of the Borrower to not gross-up
      or indemnify, for such taxes or related amounts shall be as otherwise stated
      in
      this Agreement.

     

    (b)
        Each
      Lender and Agent that is a “U.S. person” within the meaning of
      Section 7701(a)(30) of the Code (each, only for the purposes of this
Section 9.15,
      a
“U.S.
      Lender”)
      shall
      deliver to the Administrative Agent and the Borrower two duly signed, properly
      completed copies of IRS Form W-9 on or prior to the Closing Date (or on or
      prior
      to the date it becomes a party to this Agreement), certifying that such Lender
      is entitled to an exemption from United States backup withholding tax, or any
      successor form. If such Lender fails to deliver such forms, then the
      Administrative Agent may withhold from any payment to such Lender an amount
      equivalent to the applicable backup withholding tax imposed by the
      Code.

     

    9.16  Governing
      Law

     

    (a)
        THIS
      AGREEMENT AND EACH OTHER LOAN DOCUMENT SHALL BE GOVERNED BY, AND CONSTRUED
      IN
      ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     

    (b)
        ANY
      LEGAL
      ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
      MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK CITY
      OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY
      EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER, THE ADMINISTRATIVE
      AGENT
      AND EACH LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE
      EXCLUSIVE JURISDICTION OF THOSE COURTS. THE BORROWER, THE ADMINISTRATIVE AGENT
      AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO
      THE
      LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM
      NON CONVENIENS,
      WHICH
      IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN
      SUCH
      JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED
      THERETO.

     

    9.17  Waiver
      of Right to Trial by Jury.
      EACH
      PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY
      OF
      ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT
      OR
      IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE
      PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE
      TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
      ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY
      HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF
      ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO
      THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
      SECTION 9.17 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
      SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

     

    9.18  Binding
      Effect. This Agreement shall become effective when it shall have been executed
      by the parties hereto and thereafter shall be binding upon and inure to the
      benefit of the Borrower, the Administrative Agent and each Lender and their
      respective successors and assigns, except that the Borrower shall not have
      the
      right to assign their rights hereunder or any interest herein without the prior
      written consent of the Lenders.

     

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

     

    

     

    

     

    

     

    

     

    [THE
      REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

     

    

     

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Agreement to be duly executed as of the date
      first above written.

     

    
      	
                           NTK
                HOLDINGS,
                INC.,

               

            
	
                          by

            
	 	
              /s/
                Edward J. Cooney

            
	 	
              Name: Edward
                J. Cooney

            
	 	
              Title: Vice
                President and Treasurer

            

    

    

     

    
      	
                          GOLDMAN
                SACHS CREDIT PARTNERS L.P.,
                individually and as Administrative Agent,

            
	
                          by

            
	 	
              /s/
                William W. Archer

            
	 	
              Name: William
                W. Archer

            
	 	
              Title: Managing
                Director

            

    

    

     

     

    
      	
                          CREDIT
                SUISSE, CAYMAN ISLANDS BRANCH, as Initial Lender, 

            
	
                          by

            
	 	
              /s/
                David Dodd

            
	 	
              Name: David
                Dodd

            
	 	
              Title: Vice
                President

            
	 
	
                          by

            
	 	
              /s/
                Mikhail Faybusovich

            
	 	
              Name: Mikhail
                Faybusovich

            
	 	
              Title: Associate

            

    

    

     

    
      	
                          BANC
                OF
                AMERICA BRIDGE LLC, as Initial Lender, 

            
	
                        by

            
	 	
              /s/
                Bruce R. Thompson

            
	 	
              Name: Bruce
                R. Thompson

            
	 	
              Title: Managing
                Director

            

    

    

     

    

     

    
      	
                          UBS
                LOAN FINANCE LLC, as Initial Lender, 

            
	
                          by

            
	 	
              /s/
                Richard L. Tavrow

            
	 	
              Name: Richard
                L. Tavrow

            
	 	
              Title: Director

            
	 
	
                          by

            
	 	
              /s/
                Irja R. Otsa

            
	 	
              Name: Irja
                R. Otsa

            
	 	
              Title: Associate
                Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]