Document:

Exhibit
      4.2

     

    WAIVER
      NO. 1 UNDER INDENTURE

     

    WAIVER
      NO.
      1 (this “Waiver”) dated as of February 15, 2008 under the
      Indenture dated as of November 21, 2003 (the “Indenture”) by
      and among TEKNI-PLEX, INC., a Delaware corporation (the
“Company”), the GUARANTORS party thereto (the
“Guarantors”) and HSBC BANK USA, NATIONAL ASSOCIATION,
      a
      national banking association organized under the laws of the United States
      of
      America, as trustee (the “Trustee”).

     

    WITNESSETH:

     

    WHEREAS,
      the Company is contemplating various restructuring initiatives, which may
      include an exchange of certain Subordinated Notes for Voting Stock of the
      Company (the “Exchange”), which, if consummated, may under
      certain circumstances result in a Change of Control;

     

    WHEREAS,
      the Company has conducted no substantive discussions relating to such
      restructuring initiatives, however, it has requested this Waiver in
      advance;

     

    WHEREAS,
      the Company has requested that the Holders permanently and irrevocably waive
      compliance with Section 4.15 of the Indenture, to the extent that such section
      would otherwise require the Company to repurchase any Note or take any other
      action upon a Change of Control arising out of or in connection  with
      the Exchange;

     

    WHEREAS,
      Section 9.02 of the Indenture provides that, subject to certain inapplicable
      exceptions, the Holders of a majority in aggregate principal amount of the
      Notes
      then outstanding voting as a single class may waive compliance in a particular
      instance by the Company with any provision of the Indenture, the Notes, the
      Security Documents or the Subsidiary Guarantees;

     

    WHEREAS,
      the Holders that have approved this Waiver (as evidenced by their execution
      of a
      Consent Form) constitute Holders of a majority in aggregate principal amount
      of
      the Notes now outstanding and are willing to grant such waivers;
      and

     

    WHEREAS,
      consistent with DTC practice, DTC has authorized direct participants in DTC
      set
      forth in the position listing of DTC as of the date hereof to approve this
      Waiver as if they were Holders of the Notes held of record in the name of DTC
      or
      the name of its nominee.

     

    NOW,
      THEREFORE, the parties hereto agree as follows:

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
      1.  Definitions.  Unless
      otherwise defined herein, each term used herein which is defined in the
      Indenture has the meaning assigned to such term in the Indenture.

     

    Section
      2.  Waiver.  The
      Holders that have approved this Waiver (as evidenced by their execution of
      a
      Consent Form), as Holders of a majority in aggregate principal amount of the
      Notes outstanding voting as a single class, permanently and irrevocably waive
      compliance with Section 4.15 of the Indenture, to the extent that such section
      would otherwise require the Company to repurchase any Note or take any other
      action upon a Change of Control arising out of or in connection with the
      Exchange.

     

    Section
      3.  Indenture
      Remains in Full Force and Effect.  Except to the extent waived
      hereby, all provisions in the Indenture shall remain in full force and
      effect.

     

    Section
      4.  Separability.  If
      any one or more of the provisions contained in this Waiver shall be invalid,
      illegal or unenforceable, the validity, legality and enforceability of the
      remaining provisions shall not in any way be affected or impaired
      thereby.

     

    Section
      5.  Governing
      Law.  THIS WAIVER SHALL BE GOVERNED BY, AND CONSTRUED IN
      ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO
      ANY
      OTHER CONFLICTS OF LAW PROVISIONS.Exhibit
        10.1

       

       

      Execution
        Version

       

      $110,000,000

       

      AMENDED
        AND RESTATED CREDIT
        AGREEMENT

       

      Dated
        as of February 14, 2008

       

      among

       

      Tekni-Plex,
        Inc.

      as
        Borrower

       

      and

       

      The
        Lenders and Issuers Party Hereto

       

      and

       

      Citicorp
        USA, Inc.

      as
        Administrative Agent

       

      and

       

      General
        Electric Capital Corporation

      as
        Syndication Agent

       

      *
        * *

       

      Citigroup
        Global Markets Inc.

       

      as
        Sole Book Manager and Sole Lead Arranger

       

      Weil,
        Gotshal & Manges LLP

      767
        Fifth Avenue

      New
        York, New York 10153-0119

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

        
          TABLE
            OF CONTENTS

        

         

      

      
        	 	 	
                Page

              
	
                Article
                  I

              	
                Definitions,
                  Interpretation and Accounting Terms

              	
                2

              
	 	
                Section
                  1.1

              	
                Defined
                  Terms

              	
                2

              
	 	
                Section
                  1.2

              	
                Computation
                  of Time Periods

              	
                33

              
	 	
                Section
                  1.3

              	
                Accounting
                  Terms and Principles

              	
                33

              
	 	
                Section
                  1.4

              	
                Conversion
                  of Foreign Currencies

              	
                34

              
	 	
                Section
                  1.5

              	
                Certain
                  Terms

              	
                34

              
	
                Article
                  II

              	
                The
                  Facility

              	
                35

              
	 	
                Section
                  2.1

              	
                The
                  Revolving Credit Commitments

              	
                35

              
	 	
                Section
                  2.2

              	
                Borrowing
                  Procedures

              	
                36

              
	 	
                Section
                  2.3

              	
                Swing
                  Loans

              	
                37

              
	 	
                Section
                  2.4

              	
                Letters
                  of Credit

              	
                39

              
	 	
                Section
                  2.5

              	
                Reduction
                  and Termination of the Revolving Credit Commitments

              	
                44

              
	 	
                Section
                  2.6

              	
                Repayment
                  of Loans

              	
                45

              
	 	
                Section
                  2.7

              	
                Evidence
                  of Debt

              	
                45

              
	 	
                Section
                  2.8

              	
                Optional
                  Prepayments

              	
                46

              
	 	
                Section
                  2.9

              	
                Mandatory
                  Prepayments

              	
                47

              
	 	
                Section
                  2.10

              	
                Interest

              	
                48

              
	 	
                Section
                  2.11

              	
                Conversion/Continuation
                  Option

              	
                49

              
	 	
                Section
                  2.12

              	
                Fees

              	
                50

              
	 	
                Section
                  2.13

              	
                Payments
                  and Computations

              	
                51

              
	 	
                Section
                  2.14

              	
                Special
                  Provisions Governing Eurodollar Rate Loans

              	
                54

              
	 	
                Section
                  2.15

              	
                Capital
                  Adequacy

              	
                56

              
	 	
                Section
                  2.16

              	
                Taxes

              	
                56

              
	 	
                Section
                  2.17

              	
                Substitution
                  of Lenders

              	
                59

              
	 	
                Section
                  2.18

              	
                Maximum
                  Revolving Credit Outstandings

              	
                60

              
	
                Article
                  III

              	
                Conditions
                  to Loans and Letters of Credit

              	
                60

              
	 	
                Section
                  3.1

              	
                Conditions
                  Precedent to Effectiveness

              	
                60

              
	 	
                Section
                  3.2

              	
                Conditions
                  Precedent to Each Loan and Letter of Credit

              	
                63

              
	 	
                Section
                  3.3

              	
                Determinations
                  of Initial Borrowing Conditions

              	
                64

              

      

       

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      
        TABLE
          OF CONTENTS

        (continued)

      

       

      
        	 	 	
                Page 

              
	
                Article
                  IV

              	
                Representations
                  and Warranties

              	
                64

              
	 	
                Section
                  4.1

              	
                Corporate
                  Existence and Power

              	
                65

              
	 	
                Section
                  4.2

              	
                Corporate
                  and Governmental Authorization; No Contravention

              	
                65

              
	 	
                Section
                  4.3

              	
                Binding
                  Effect

              	
                65

              
	 	
                Section
                  4.4

              	
                Financial
                  Information

              	
                65

              
	 	
                Section
                  4.5

              	
                Litigation

              	
                66

              
	 	
                Section
                  4.6

              	
                Compliance
                  with ERISA

              	
                66

              
	 	
                Section
                  4.7

              	
                Environmental
                  Compliance

              	
                67

              
	 	
                Section
                  4.8

              	
                Taxes

              	
                68

              
	 	
                Section
                  4.9

              	
                Ownership
                  of Borrower; Subsidiaries

              	
                69

              
	 	
                Section
                  4.10

              	
                No
                  Regulatory Restrictions on Borrowing

              	
                70

              
	 	
                Section
                  4.11

              	
                Full
                  Disclosure

              	
                70

              
	 	
                Section
                  4.12

              	
                Intellectual
                  Property

              	
                70

              
	 	
                Section
                  4.13

              	
                [Reserved]

              	
                70

              
	 	
                Section
                  4.14

              	
                Labor
                  Relations

              	
                70

              
	 	
                Section
                  4.15

              	
                Subordinated
                  Notes; etc

              	
                71

              
	 	
                Section
                  4.16

              	
                Deposit
                  Accounts

              	
                71

              
	 	
                Section
                  4.17

              	
                No
                  Burdensome Restrictions; No Defaults

              	
                71

              
	 	
                Section
                  4.18

              	
                Insurance

              	
                72

              
	 	
                Section
                  4.19

              	
                Title;
                  Real Property

              	
                72

              
	
                Article
                  V

              	
                Affirmative
                  Covenants

              	
                72

              
	 	
                Section
                  5.1

              	
                Information

              	
                73

              
	 	
                Section
                  5.2

              	
                Payment
                  of Obligations

              	
                77

              
	 	
                Section
                  5.3

              	
                Maintenance
                  of Property; Insurance

              	
                77

              
	 	
                Section
                  5.4

              	
                Conduct
                  of Business and Maintenance of Existence

              	
                77

              
	 	
                Section
                  5.5

              	
                Compliance
                  with Laws

              	
                77

              
	 	
                Section
                  5.6

              	
                Inspection
                  of Property, Books and Records

              	
                78

              
	 	
                Section
                  5.7

              	
                Use
                  of Proceeds; Compliance with Margin Regulations

              	
                78

              
	 	
                Section
                  5.8

              	
                Environmental

              	
                78

              

      

       

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

      
         

        TABLE
          OF CONTENTS

        (continued)

      

      
        	 	 	 	
                Page 

              
	 	
                Section
                  5.9

              	
                Additional
                  Collateral and Guaranties

              	
                79

              
	 	
                Section
                  5.10

              	
                Further
                  Assurances

              	
                80

              
	 	
                Section
                  5.11

              	
                Control
                  Accounts; Approved Deposit Accounts

              	
                80

              
	 	
                Section
                  5.12

              	
                Landlord
                  Waivers and Bailee’s Letters

              	
                81

              
	 	
                Section
                  5.13

              	
                Real
                  Property

              	
                82

              
	 	
                Section
                  5.14

              	
                Post-Effectiveness
                  Matters

              	
                82

              
	
                Article
                  VI

              	
                Negative
                  Covenants

              	
                82

              
	 	
                Section
                  6.1

              	
                Limitation
                  on Liens

              	
                82

              
	 	
                Section
                  6.2

              	
                Limitation
                  on Indebtedness

              	
                84

              
	 	
                Section
                  6.3

              	
                Mergers,
                  Etc

              	
                85

              
	 	
                Section
                  6.4

              	
                Sales
                  of Assets

              	
                86

              
	 	
                Section
                  6.5

              	
                Restricted
                  Payments

              	
                86

              
	 	
                Section
                  6.6

              	
                Investments

              	
                87

              
	 	
                Section
                  6.7

              	
                Transactions
                  with Affiliates

              	
                89

              
	 	
                Section
                  6.8

              	
                Limitation
                  on Restrictions Affecting Subsidiaries

              	
                89

              
	 	
                Section
                  6.9

              	
                Limitation
                  on Issuance of Capital Stock

              	
                90

              
	 	
                Section
                  6.10

              	
                Limitation
                  on Voluntary Payments and Modifications of Indebtedness and Preferred
                  Stock Documents

              	
                90

              
	 	
                Section
                  6.11

              	
                Limitation
                  on Fixed-Price Contracts

              	
                91

              
	 	
                Section
                  6.12

              	
                End
                  of Fiscal Years; Fiscal Quarters

              	
                91

              
	 	
                Section
                  6.13

              	
                Designated
                  Senior Indebtedness, Etc

              	
                92

              
	 	
                Section
                  6.14

              	
                Conduct
                  of Business

              	
                92

              
	 	
                Section
                  6.15

              	
                Modification
                  of Constituent Documents

              	
                92

              
	 	
                Section
                  6.16

              	
                Capital
                  Expenditures

              	
                93

              
	 	
                Section
                  6.17

              	
                Minimum
                  Consolidated EBITDA

              	
                93

              
	
                Article
                  VII

              	
                Events
                  of Default

              	
                94

              
	 	
                Section
                  7.1

              	
                Events
                  of Default

              	
                94

              
	 	
                Section
                  7.2

              	
                Remedies

              	
                96

              
	 	
                Section
                  7.3

              	
                Actions
                  in Respect of Letters of Credit

              	
                97

              
	 	
                Section
                  7.4

              	
                Rescission

              	
                97

              

      

       

       

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

      
         

        TABLE
          OF CONTENTS

        (continued)

      

      
        	 	 	
                Page 

              
	
                Article
                  VIII

              	
                The
                  Administrative Agent; The Agents

              	
                98

              
	 	
                Section
                  8.1

              	
                Authorization
                  and Action

              	
                98

              
	 	
                Section
                  8.2

              	
                Administrative
                  Agent’s Reliance, Etc

              	
                99

              
	 	
                Section
                  8.3

              	
                Posting
                  of Approved Electronic Communications

              	
                99

              
	 	
                Section
                  8.4

              	
                The
                  Administrative Agent Individually

              	
                100

              
	 	
                Section
                  8.5

              	
                Lender
                  Credit Decision

              	
                100

              
	 	
                Section
                  8.6

              	
                Indemnification

              	
                101

              
	 	
                Section
                  8.7

              	
                Successor
                  Administrative Agent

              	
                101

              
	 	
                Section
                  8.8

              	
                Concerning
                  the Collateral and the Collateral Documents

              	
                102

              
	 	
                Section
                  8.9

              	
                Collateral
                  Matters Relating to Related Obligations

              	
                103

              
	
                Article
                  IX

              	
                Miscellaneous

              	
                104

              
	 	
                Section
                  9.1

              	
                Amendments,
                  Waivers, Etc

              	
                104

              
	 	
                Section
                  9.2

              	
                Assignments
                  and Participations

              	
                106

              
	 	
                Section
                  9.3

              	
                Costs
                  and Expenses

              	
                111

              
	 	
                Section
                  9.4

              	
                Indemnities

              	
                112

              
	 	
                Section
                  9.5

              	
                Limitation
                  of Liability

              	
                114

              
	 	
                Section
                  9.6

              	
                Right
                  of Set-off

              	
                114

              
	 	
                Section
                  9.7

              	
                Sharing
                  of Payments, Etc

              	
                114

              
	 	
                Section
                  9.8

              	
                Notices,
                  Etc

              	
                115

              
	 	
                Section
                  9.9

              	
                No
                  Waiver; Remedies

              	
                117

              
	 	
                Section
                  9.10

              	
                Governing
                  Law

              	
                117

              
	 	
                Section
                  9.11

              	
                Submission
                  to Jurisdiction; Service of Process

              	
                117

              
	 	
                Section
                  9.12

              	
                Waiver
                  of Jury Trial

              	
                118

              
	 	
                Section
                  9.13

              	
                Marshaling;
                  Payments Set Aside

              	
                118

              
	 	
                Section
                  9.14

              	
                Section
                  Titles

              	
                118

              
	 	
                Section
                  9.15

              	
                Execution
                  in Counterparts

              	
                118

              
	 	
                Section
                  9.16

              	
                Entire
                  Agreement

              	
                119

              
	 	
                Section
                  9.17

              	
                Confidentiality

              	
                119

              
	 	
                Section
                  9.18

              	
                Patriot
                  Act Notice

              	
                119

              

      

       

       

      
        
          
          

        

        
          iv

          
            

          

        

        
          
          

        

      

      
         

        TABLE
          OF CONTENTS

        (continued)

      

      
        	 	 	 	
                Page 

              
	 	
                Section
                  9.19

              	
                Amendment
                  and Restatement

              	
                120

              

      

      

       

      
        	
                Schedules

              
	
                Schedule I

              	
                -

              	
                Revolving
                  Credit
                  Commitments

              
	
                Schedule II

              	
                -

              	
                Applicable
                  Lending Offices and Addresses for
                  Notices

              
	
                Schedule 4.6

              	
                -

              	
                List
                  of Plans

              
	
                Schedule 4.9(c)

              	
                -

              	
                Ownership
                  of Subsidiaries

              
	
                Schedule
                  4.14

              	
                -

              	
                Labor
                  Matters

              
	
                Schedule 4.16

              	
                -

              	
                Deposit
                  Accounts

              
	
                Scheuled
                  4.18

              	
                -

              	
                Insurance

              
	
                Schedule 4.19

              	
                -

              	
                Real
                  Property

              
	
                Schedule
                  5.15

              	
                -

              	
                Post-Closing
                  Matters

              
	
                Schedule 6.1

              	
                -

              	
                Existing
                  Liens

              
	
                Schedule 6.2

              	
                -

              	
                Existing
                  Indebtedness

              
	
                Schedule 6.6

              	
                -

              	
                Existing
                  Investments

              
	
                Exhibits

              
	
                Exhibit A

              	
                -

              	
                Form
                  of Assignment and
                  Acceptance

              
	
                Exhibit
                  B

              	
                -

              	
                Form
                  of Revolving Credit
                  Note

              
	
                Exhibit C

              	
                -

              	
                Form
                  of Notice of
                  Borrowing

              
	
                Exhibit D

              	
                -

              	
                Form
                  of Swing Loan
                  Request

              
	
                Exhibit E

              	
                -

              	
                Form
                  of Letter of Credit
                  Request

              
	
                Exhibit F

              	
                -

              	
                Form
                  of Notice of Conversion or
                  Continuation

              
	
                Exhibit G

              	
                -

              	
                Form
                  of Opinion of Counsel for the Loan
                  Parties

              
	
                Exhibit H

              	
                -

              	
                Guaranty

              
	
                Exhibit I

              	
                -

              	
                Security
                  Agreement

              
	
                Exhibit J-I

              	
                -

              	
                Form
                  of Tranche A Borrowing Base
                  Certificate

              
	
                Exhibit
                  J-II

              	
                -

              	
                Form
                  of Tranche A-1 Borrowing Base Certificate

              
	
                Exhibit K

              	
                -

              	
                Form
                  of Deposit Account Control Agreement

              
	
                Exhibit L

              	
                -

              	
                Form
                  of Securities Account Contral Agreement

              
	
                Exhibit M

              	
                -

              	
                Pledge
                  Agreement

              
	
                Exhibit N

              	
                -

              	
                Form
                  of Bailee’s Letter

              
	
                Exhibit O

              	
                -

              	
                Form
                  of Landlord Waiver

              
	
                Exhibit P

              	
                -

              	
                Form
                  of Collateral Access Agreement

              
	
                Exhibit Q

              	
                -

              	
                Reaffirmation
                  Agreement

              

      

       

      
 

      
        
          
          

        

        
          v

          
            

          

        

        
          
          

        

      

     

    Amended
      and Restated Credit
      Agreement,
      dated as of February 14, 2008, among Tekni-Plex, Inc., a Delaware corporation
      (the “Borrower”), the Lenders (as defined below), the Issuers (as
      defined below), Citicorp USA, Inc. (“Citicorp”), as agent for the
      Lenders and the Issuers (in such capacity and as agent for the Secured Parties
      under the Collateral Documents, the “Administrative Agent”), and
      General Electric Capital Corporation (“GECC”), as syndication agent (in
      such capacity, the “Syndication Agent”).

     

    W
      i t n e
      s s e t h:

     

    Whereas,
      the Borrower entered into the Credit Agreement, dated as of June 10, 2005 (as
      amended, modified or otherwise supplemented, the “Existing Credit
      Agreement”), with the lenders, issuers and agents party
      thereto;

     

    Whereas,
      the Borrower desires to reorganize its capital structure in connection with
      a
      restructuring and as part of such reorganization intends to consummate the
      Debt
      Swap (as defined below) on a date following the Effective Date (as defined
      below) of this Agreement;

     

    Whereas,
      in connection with its restructuring, the Borrower has requested that (a) the
      revolving credit loan commitments under the Existing Credit Agreement be
      extended and increased and (b) the revolving credit loans provided for in the
      Existing Credit Agreement be deemed, on the Effective Date, to be Loans (as
      defined below) provided under this Agreement;

     

    Whereas,
      the Borrower has entered into that certain Forbearance Agreement, dated as
      of
      January 16, 2008 (as amended on or prior to the date hereof, the
“Forbearance Agreement”) by and among the Borrower and certain holders
      of the Existing Subordinated Notes and the Existing Senior Secured Notes and
      has
      represented to the Lenders that it will not use any proceeds of the Loans to
      fund interest payments to the holders of the Existing Subordinated Notes prior
      to the consummation of the Debt Swap;

     

    Whereas,
      the Lenders and Issuers have agreed to extend and increase the commitments
      in
      respect of the revolving credit facility under the Existing Credit Agreement
      and
      to otherwise amend and restate the terms of the Existing Credit Agreement and
      roll over the loans outstanding thereunder, in each case in reliance upon the
      Forbearance Agreement and the Company’s representation to the Lenders in the
      preceding paragraph and upon the terms and subject to the other conditions
      set
      forth herein;

     

    Whereas,
      the Guarantors are willing to continue to guaranty all of the Obligations (as
      defined below) of the Borrower, and the Borrower and the other Loan Parties
      are
      willing to continue to secure all of their respective obligations under the
      Loan
      Documents (as defined below) by granting to the Administrative Agent, for its
      benefit and the benefit of the Lenders and Issuers, a security interest in
      and
      lien upon substantially all of the Collateral (as defined below);
      and

     

    Whereas,
      (a) this Agreement, on the terms and subject to the conditions set forth herein,
      shall amend and restate the Existing Credit Agreement in its entirety as of
      the
      Effective Date, (b) this Agreement shall not constitute a novation of the
      obligations and liabilities existing under the Existing Credit Agreement or
      evidence payment of all or any of such obligations and liabilities and (c)
      from
      and after the Effective Date, the Existing Credit Agreement shall be of no
      further force or effect, except to evidence the Obligations incurred, the

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    representations
      and warranties made and the actions or omissions performed or required to be
      performed thereunder prior to the Effective Date;

     

    Now,
      Therefore, in consideration of the premises and the covenants and agreements
      contained herein, the parties hereto hereby agree as follows:

     

    ARTICLE
      I

     

    Definitions,
      Interpretation and Accounting Terms

     

    Section
      1.1  Defined
      Terms

     

    As
      used in
      this Agreement, the following terms have the following meanings (such meanings
      to be equally applicable to both the singular and plural forms of the terms
      defined):

     

    “Account”
      has the meaning given to such term in the UCC.

     

    “Account
      Debtor” has the meaning given to such term in the UCC.

     

    “Administrative
      Agent” has the meaning specified in the preamble to this
      Agreement.

     

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

     

    “Affected
      Lender” has the meaning specified in Section 2.17
      (Substitution of Lenders).

     

    “Affiliate”
      means, with respect to any Person, any other Person directly or indirectly
      controlling or that is controlled by or is under common control with such
      Person, each officer, director, general partner or joint-venturer of such
      Person, and each Person that is the beneficial owner of 10% or more of any
      class
      of Voting Stock of such Person.  For the purposes of this definition,
“control” means the possession 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 contract or otherwise.

     

    “Agent
      Affiliate” has the meaning specified in Section 8.3(c)
      (Posting of Approved Electronic Communications).

     

    “Agents”
      means the Administrative Agent and the Syndication Agent.

     

    “Agreement”
      means this Credit Agreement.

     

    “Applicable
      Lending Office” means, with respect to each Lender, its Domestic Lending
      Office in the case of a Base Rate Loan, and its Eurodollar Lending Office in
      the
      case of a Eurodollar Rate Loan.

     

    “Applicable
      Margin” means in respect of (a) Tranche A Loans (i) maintained as Base
      Rate Loans (which, for the avoidance of doubt, shall include all Swing Loans),
      a
      rate equal 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    to
      2.00%
per annum and (ii) maintained as Eurodollar Rate Loans, a rate
      equal to 3.00% per annum, and (b) Tranche A-1 Loans (i) maintained
      as Base Rate Loans, a rate equal to 3.50% per annum and
      (ii) maintained as Eurodollar Rate Loans, a rate equal to 4.50% per
      annum.

     

    “Appraisal”
      means each appraisal that is conducted after the Effective Date pursuant to
      Section 5.1(n)(Borrowing Base Determination) for purpose of
      determining the Borrowing Base, in form and substance satisfactory to the Agents
      and performed by an appraiser that is satisfactory to the Agents.

     

    “Approved
      Deposit Account” means a Deposit Account that is the subject of an
      effective Deposit Account Control Agreement and that is maintained by any Loan
      Party with a Deposit Account Bank.  “Approved Deposit
      Account” includes all monies on deposit in a Deposit Account and all
      certificates and instruments, if any, representing or evidencing such Deposit
      Account.

     

    “Approved
      Electronic Communications” means each notice, demand, communication,
      information, document and other material that any Loan Party is obligated to,
      or
      otherwise chooses to, provide to the Administrative Agent pursuant to any Loan
      Document or the transactions contemplated therein, including (a) any
      supplement to the Guaranty, any joinder to the Security Agreement and any other
      written Contractual Obligation delivered or required to be delivered in respect
      of any Loan Document or the transactions contemplated therein and (b) any
      Financial Statement, financial and other report, notice, request, certificate
      and other information material; provided, however, that, “Approved
      Electronic Communication” shall exclude (i) any Notice of Borrowing,
      Letter of Credit Request, Swing Loan Request, Notice of Conversion or
      Continuation, and any other notice, demand, communication, information, document
      and other material relating to a request for a new, or a conversion of an
      existing, Borrowing, (ii) any notice pursuant to Section 2.8
      (Optional Prepayments) and Section 2.9 (Mandatory
      Prepayments) and any other notice relating to the payment of any principal
      or other amount due under any Loan Document prior to the scheduled date
      therefor, (iii) all notices of any Default or Event of Default and
      (iv) any notice, demand, communication, information, document and other
      material required to be delivered to satisfy any of the conditions set forth
      in
      Article III (Conditions to Loans and Letters of Credit) or
Section 2.4(a) (Letters of Credit) or any other condition to any
      Borrowing or other extension of credit hereunder or any condition precedent
      to
      the effectiveness of this Agreement.

     

    “Approved
      Electronic Platform” has the meaning specified in Section 8.3(a)
      (Posting of Approved Electronic Communications).

     

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

     

    “Approved
      Securities Intermediary” means a “securities intermediary” or
“commodity intermediary” (as such terms are defined in the UCC)
      selected or approved by the Administrative Agent.

     

    “Arranger”
      means Citigroup Global Markets Inc., in its capacity as sole lead arranger
      and
      sole book manager.

     

    “Asset
      Sale” has the meaning specified in Section 6.4.

     

     

    
      
        
        

      

      
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    “Assignment
      and Acceptance” means an assignment and acceptance entered into by a Lender
      and an Eligible Assignee, and accepted by the Administrative Agent, in
      substantially the form of Exhibit A (Form of Assignment and
      Acceptance).

     

    “Availability
      Reserve” means, as of two Business Days after the date of written notice of
      any determination thereof to the Borrower by the Administrative Agent, such
      amounts as the Administrative Agent may from time to time establish against
      the
      Tranche A Facility, in the Administrative Agent’s sole discretion exercised
      reasonably and in accordance with its customary business practices for its
      comparable asset based transactions.

     

    “Bailee’s
      Letter” means a letter, substantially in the form of Exhibit N (Form of
      Bailee’s Letter), or otherwise in form and substance reasonably acceptable
      to the Administrative Agent, and executed by any Person (other than the
      Borrower) that is in possession of Inventory on behalf of a Loan Party pursuant
      to which such Person acknowledges, among other things, the Administrative
      Agent’s Lien with respect thereto.

     

    “Bankruptcy
      Code” means Title 11, United States Code.

     

    “Base
      Rate” means, for any period, a fluctuating interest rate per annum as shall
      be in effect from time to time, which rate per annum shall be equal at all
      times
      to the highest of the following:

     

    (a)  the
      rate
      of interest announced publicly by Citibank in New York, New York, from time
      to
      time, as Citibank’s base rate;

     

    (b)  the
      sum
      (adjusted to the nearest 0.25% or, if there is no nearest 0.25%, to the next
      higher 0.25%) of (i) 0.5% per annum, (ii) the rate per annum obtained
      by dividing (A) the latest three-week moving average of secondary market
      morning offering rates in the United States for three-month certificates of
      deposit of major United States money market banks, such three-week moving
      average being determined weekly on each Monday (or, if any such day is not
      a
      Business Day, on the next succeeding Business Day) for the three-week period
      ending on the previous Friday by Citibank on the basis of such rates reported
      by
      certificate of deposit dealers to and published by the Federal Reserve Bank
      of
      New York or, if such publication shall be suspended or terminated, on the basis
      of quotations for such rates received by Citibank from three New York
      certificate of deposit dealers of recognized standing selected by Citibank,
      by
      (B) a percentage equal to 100% minus the average of the daily
      percentages specified during such three-week period by the Federal Reserve
      Board
      for determining the maximum reserve requirement (including any emergency,
      supplemental or other marginal reserve requirement) for Citibank in respect
      of
      liabilities consisting of or including (among other liabilities) three-month
      U.S. dollar nonpersonal time deposits in the United States and (iii) the
      average during such three-week period of the maximum annual assessment rates
      estimated by Citibank for determining the then current annual assessment payable
      by Citibank to the Federal Deposit Insurance Corporation (or any successor)
      for
      insuring Dollar deposits in the United States; and

     

    (c)  0.5%
      per
      annum plus the Federal Funds Rate.

     

    “Base
      Rate Loan” means any Swing Loan or any other Loan during any period in
      which it bears interest based on the Base Rate.

     

    
      
        
        

      

      
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    “Blockage
      Notice” means a “Blockage Notice”, “Notice of Exclusive Control” or similar
      term specified in each Deposit Account Control Agreement.

     

    “Borrower”
      has the meaning specified in the preamble to this Agreement.

     

    “Borrower’s
      Accountants” means BDO Seidman, LLP or other independent
      nationally-recognized public accountants acceptable to the Administrative
      Agent.

     

    “Borrowing”
      means a borrowing consisting of Revolving Loans made on the same day by the
      Lenders ratably according to their respective Revolving Credit
      Commitments.

     

    “Borrowing
      Base” means, collectively, the Tranche A Borrowing Base and the Tranche A-1
      Borrowing Base.

     

    “Borrowing
      Base Certificate” means a certificate of the Loan Parties substantially in
      the form of Exhibit J (Form of Borrowing Base
      Certificate).

     

    “Borrowing
      Base Reserve” means $10,000,000.

     

    “Business
      Day” means a day of the year on which banks are not required or authorized
      to close in New York City and, if the applicable Business Day relates to
      notices, determinations, fundings and payments in connection with the Eurodollar
      Rate or any Eurodollar Rate Loans, a day on which dealings in Dollar deposits
      are also carried on in the London interbank market.

     

    “Capital
      Expenditures” means, for any Person for any period, the aggregate of
      amounts that would be reflected as additions to property, plant or equipment
      on
      a Consolidated statement of cash flows of such Person and its Subsidiaries
      in
      accordance with GAAP.

     

    “Capital
      Lease” means, with respect to any Person, any lease of, or other
      arrangement conveying the right to use, property by such Person as lessee that
      would be accounted for as a capital lease on a balance sheet of such Person
      prepared in conformity with GAAP.

     

    “Capital
      Lease Obligations” means, with respect to any Person, the capitalized
      amount of all obligations of such Person or any of its Subsidiaries under
      Capital Leases.

     

    “Cash
      Collateral Account” means any Deposit Account or Securities Account that is
      (a) established by the Administrative Agent from time to time in its sole
      discretion to receive cash and Cash Equivalents (or purchase cash or Cash
      Equivalents with funds received) from the Loan Parties or Persons acting on
      their behalf pursuant to the Loan Documents, (b) with such depositaries and
      securities intermediaries as the Administrative Agent may determine in its
      sole
      discretion, (c) in the name of the Administrative Agent (although such
      account may also have words referring to the Borrower and the account’s
      purpose), (d) under the control of the Administrative Agent and (e) in
      the case of a Securities Account, with respect to which the Administrative
      Agent
      shall be the Entitlement Holder and the only Person authorized to give
      Entitlement Orders with respect thereto.

     

    “Cash
      Dominion Period” means (a) the period beginning on the Effective Date and
      ending on the date on which all of the following conditions have been satisfied
      to the 

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    satisfaction
      of the Administrative Agent, in its sole discretion: (i) consummation of the
      Debt Swap, (ii) following the consummation of the Debt Swap, the delivery by
      the
      Borrower of a business plan as contemplated hereunder and (iii) the Collateral
      Availability shall have been greater than $15,000,000 for a period of 30
      consecutive days; and (b) thereafter, each period beginning on the first
      Business Day on which the Collateral Availability is equal to or less than
      $15,000,000 and ending on the first Business Day on which the Collateral
      Availability is greater than $15,000,000 for more than 30 consecutive
      days.

     

    “Cash
      Equivalents” means (a) securities issued or fully guaranteed or
      insured by the United States federal government or any agency thereof,
      (b) certificates of deposit, eurodollar time deposits, overnight bank
      deposits and bankers’ acceptances of any commercial bank organized under the
      laws of the United States, any state thereof, the District of Columbia, any
      foreign bank, or its branches or agencies (fully protected against currency
      fluctuations) that, at the time of acquisition, are rated at least “A” by
      S&P or “A-2” by Moody’s, (c) commercial paper of an issuer rated at
      least “A-1” by S&P or “P-1” by Moody’s, (d) marketable direct obligations
      issued by the District of Columbia or any State of the United States or any
      political subdivision of any such State or any public instrumentality thereof
      and, at the time of acquisition, having one of the two highest ratings
      obtainable from either S&P or Moody’s, (e) shares of any money market
      fund that (i) has at least 95% of its assets invested continuously in the
      types of investments referred to in clauses (a), (b),
(c) and (d) above, (ii) has net assets in excess of
      $500,000,000 and (iii) is rated at least “A-1” by S&P or “P-1” by
      Moody’s, and (f) in the case of Investments by Foreign Subsidiaries, other
      short-term investments in accordance with normal investment practices for cash
      management of a type analogous to the foregoing; provided, however,
      that the maturities of all obligations of the type specified in
clauses (a), (b), (c), (d),
(e) and (f) above shall not exceed one
      year.

     

    “Cash
      Management Document” means any certificate, agreement or other document
      executed by any Loan Party in respect of the Cash Management Obligations of
      any
      Loan Party.

     

    “Cash
      Management Obligation” means, as applied to any Person, any direct or
      indirect liability, contingent or otherwise, of such Person in respect of cash
      management services (including treasury, depository, overdraft, credit or debit
      card, electronic funds transfer and other cash management arrangements) provided
      by the Administrative Agent, any Lender or any Affiliate of any of them,
      including obligations for the payment of fees, interest, charges, expenses,
      attorneys’ fees and disbursements in connection therewith.

     

    “Change
      of Control” means the occurrence of any of the following: (a) any
      person or group of persons (within the meaning of the Securities Exchange Act
      of
      1934, as amended), other than the Permitted Holders, shall have acquired
      beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
      Exchange Commission under the Securities Exchange Act of 1934, as amended)
      of
      25% or more of the issued and outstanding Voting Stock of the Borrower,
      (b) except for any change to the board of directors arising in connection
      with the consummation of the Debt Swap, during any period of twelve consecutive
      calendar months, individuals who, at the beginning of such period, constituted
      the board of directors of the Borrower (together with any new directors whose
      election by the board of directors of the Borrower or whose nomination for
      election by the stockholders of the Borrower was approved by a vote of at least
      two-thirds of the directors then still in office who either were directors
      at
      the beginning of such period or whose elections or nomination for election
      was
      previously so approved) cease for any reason other than death or disability
      to
      constitute a majority of the 

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    directors
      then in office or (c) a “Change of Control”, or like event, as
      defined in the New Senior Secured Note Indenture or the Existing Senior Secured
      Note Indenture other than (i) a “Change of Control” under, or as
      defined in, the Existing Senior Secured Note Indenture arising in connection
      with the Debt Swap in respect of which the obligation of the Borrower to
      purchase Existing Senior Secured Notes has been waived or (ii) a “Change of
      Control” under, and as defined in, the New Senior Secured Note Indenture
      arising in connection with the Debt Swap.

     

    “Citibank”
      means Citibank, N.A., a national banking association.

     

    “Citicorp”
      has the meaning specified in the preamble to this Agreement.

     

    “Code”
      means the U.S. Internal Revenue Code of 1986, as currently amended.

     

    “Collateral”
      means all property and interests in property and proceeds thereof now owned
      or
      hereafter acquired by any Loan Party in or upon which a Lien is granted under
      any Collateral Document.

     

    “Collateral
      Access Agreement” means that certain Access, Use and Intercreditor
      Agreement, dated as of the Initial Closing Date, executed by the Loan Parties,
      the New Senior Secured Note Trustee, the Collateral Agent (as defined in the
      New
      Senior Secured Note Indenture as in effect on the Effective Date), the Existing
      Senior Secured Note Trustee and the Collateral Agent (as defined in the Senior
      Secured Note Indenture as in effect on the Effective Date).

     

    “Collateral
      Availability” means, at any time, the amount by which the Borrowing Base
      then in effect exceeds the sum of (a) the Revolving Credit Outstandings at
      such
      time and (b) any Availability Reserve in effect at such time.

     

    “Collateral
      Documents” means the Security Agreement, the Pledge Agreement, the Deposit
      Account Control Agreements, the Securities Account Control Agreements, the
      Reaffirmation Agreement and any other document executed and delivered by a
      Loan
      Party granting a Lien on any of its property to secure payment of the Secured
      Obligations.

     

    “Commodity
      Account” has the meaning given to such term in the UCC.

     

    “Consolidated”
      means, with respect to any Person, the consolidation of accounts of such Person
      and its Subsidiaries in accordance with GAAP.

     

    “Consolidated
      Capital Expenditures” means, for any period, the amount of Capital
      Expenditures made during such period by the Borrower and its Consolidated
      Subsidiaries, determined on a consolidated basis.

     

    “Consolidated
      EBITDA” means, for any period, Consolidated Net Income (excluding any
      non-cash write-up of the value of assets) for such period (a) plus, to
      the extent deducted in determining Consolidated Net Income for such period,
      the
      aggregate amount of (i) Consolidated Interest Expense, (ii) income tax expense,
      (iii) depreciation, amortization and other similar non-cash charges (including,
      without limitation, non-cash fixed asset impairment charges and non-cash
      impairment charges in respect of goodwill and other intangible assets), (iv)
      fees, expenses and restructuring charges incurred in connection with the
      negotiation and entry into of this Agreement, the Debt Swap and any amendment
      or
      forbearance in respect of the Existing Subordinated Notes, the New Senior
      Secured Notes or the Existing Senior Secured Notes, (v) 

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    costs,
      fees (including professional fees) and expenses incurred in connection with
      restructuring the business operations of the Borrower and its Subsidiaries
      in
      accordance with the business plan provided to the Administrative Agent under
      Section 3.1(i), (vi) any non-cash loss arising from any sale of assets outside
      of the ordinary course of business and (vii) any extraordinary loss;
provided, however, that for purposes of determining Consolidated EBITDA
      for any Test Period during which a Permitted Acquisition has been made,
      Consolidated EBITDA shall be increased for any Fiscal Quarter which began prior
      to such Permitted Acquisition and which is included in such Test Period by
      the
      amount of Consolidated EBITDA which the Borrower (with the consent of the
      Agents, such consent not to be unreasonably withheld or delayed) shall determine
      would have been attributable to the acquired assets for the Fiscal Quarter
      most
      recently ended on or prior to the date of such Permitted Acquisition, it being
      agreed that for the Fiscal Quarter in which the Permitted Acquisition has
      occurred, such increase shall be prorated to reflect only the days during such
      Fiscal Quarter prior to the consummation of such Permitted Acquisition and
      (b)
minus the amount of any non-cash gains not otherwise excluded from
      Consolidated Net Income.

     

    “Consolidated
      Interest Expense” means, for any period, the interest expense of the
      Borrower and its Consolidated Subsidiaries, determined on a consolidated basis,
      for such period (including, without limitation, accretion in respect of, and
      accrual of dividends on, preferred stock).

     

    “Consolidated
      Net Income” means, for any period, the net income of the Borrower and its
      Consolidated Subsidiaries, determined on a consolidated basis for such period,
      adjusted to exclude the effect of any extraordinary or other non-recurring
      gain
      (but not loss).

     

    “Constituent
      Documents” means, with respect to any Person, (a) the articles of
      incorporation, certificate of incorporation, constitution or certificate of
      formation (or the equivalent organizational documents) of such Person,
      (b) the by-laws or operating agreement (or the equivalent governing
      documents) of such Person and (c) any document setting forth the manner of
      election or duties of the directors or managing members of such Person (if
      any)
      and the designation, amount or relative rights, limitations and preferences
      of
      any class or series of such Person’s Stock.

     

    “Contractual
      Obligation” of any Person means any obligation, agreement, undertaking or
      similar provision of any Security issued by such Person or of any agreement,
      undertaking, contract, lease, indenture, mortgage, deed of trust or other
      instrument (excluding a Loan Document) to which such Person is a party or by
      which it or any of its property is bound or to which any of its property is
      subject.

     

    “Control
      Account” means a Securities Account or Commodity Account that is the
      subject of an effective Securities Account Control Agreement and that is
      maintained by any Loan Party with an Approved Securities
      Intermediary.  “Control Account” includes all Financial
      Assets held in a Securities Account or a Commodity Account and all certificates
      and instruments, if any, representing or evidencing the Financial Assets
      contained therein.

     

    “Debt
      Issuance” means the incurrence of Indebtedness of the type specified in
      clause (a) or (b) of the definition of “Indebtedness” by the
      Borrower or any of its Subsidiaries (other than any such Indebtedness permitted
      under Section 6.2 (Limitation on Indebtedness)).

     

    “Debt
      Swap” means a debt-for-equity swap with certain holders of the Existing
      Subordinated Notes on terms and conditions satisfactory to each Lender in its
      sole discretion.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    “Debt
      Swap Commitment Fee” has the meaning specified in Section 2.12(c)
      (Fees).

     

    “Debt
      Swap Default Date” has the meaning specified in Section 7.1(o) (Events
      of Default).

     

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

     

    “De
      Minimis Subsidiary” means any Subsidiary of the Borrower that (i) holds no
      capital stock of any other Subsidiary that is not a De Minimis Subsidiary,
      (ii)
      the fair market value of all assets held by such Subsidiary (including, without
      limitation, its Subsidiaries) is less than $500,000 and (iii) the net income
      for
      such Subsidiary and all of its Subsidiaries for the last 12 months then ended
      is
      less than $500,000.

     

    “Deposit
      Account” has the meaning given to such term in the UCC.

     

    “Deposit
      Account Bank” means a financial institution selected or approved by the
      Administrative Agent (it being agreed that LaSalle Bank, Fleet National Bank
      and
      Wachovia Bank shall each be a Deposit Account Bank upon their execution and
      delivery to the Administrative Agent of a Deposit Account Control
      Agreement).

     

    “Deposit
      Account Control Agreement” means an agreement, substantially in the form of
Exhibit K (Form of Deposit Account Control Agreement), or otherwise in
      form and substance reasonably acceptable to the Administrative Agent, executed
      by the applicable Loan Party, the Administrative Agent and the applicable
      Deposit Account Bank.

     

    “Documentary
      Letter of Credit” means any Letter of Credit that is drawable upon
      presentation of documents evidencing the sale or shipment of goods purchased
      by
      the Borrower or any of its Subsidiaries in the ordinary course of its
      business.

     

    “Dollar
      Equivalent” of any amount means, at the time of determination thereof,
      (a) if such amount is expressed in Dollars, such amount and (b) if
      such amount is denominated in any other currency, the equivalent of such amount
      in Dollars as determined by the Administrative Agent using any method of
      determination it deems appropriate.

     

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

     

    “Domestic
      Joint Venture” means any Joint Venture existing under the laws of the
      United States or any state thereof.

     

    “Domestic
      Lending Office” means, with respect to any Lender, the office of such
      Lender specified as its “Domestic Lending Office” opposite its name on
Schedule II (Applicable Lending Offices and Addresses for Notices)
      or on the Assignment and Acceptance by which it became a Lender or such other
      office of such Lender as such Lender may from time to time specify to the
      Borrower and the Administrative Agent.

     

    “Domestic
      Person” means any “United States person” under and as defined in
      Section 7701(a)(30) of the Code.

     

    
      
        
        

      

      
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    “Domestic
      Subsidiary” means any Subsidiary of the Borrower organized under the laws
      of any state of the United States of America or the District of
      Columbia.

     

    “Effective
      Date” has the meaning specified in Section 3.1 (Conditions Precedent to
      Effectiveness).

     

    “Effective
      Date Commitment Fee” has the meaning specified in Section 2.12(b)
      (Fees).

     

    “Eligibility
      Reserves” means, effective as of two Business Days after the date of
      written notice of any determination thereof to the Borrower by the
      Administrative Agent, such amounts as the Administrative Agent, in its sole
      discretion exercised reasonably and in accordance with its customary business
      practices for its comparable asset based transactions may from time to time
      establish against the gross amounts of Eligible Receivables and Eligible
      Inventory to reflect risks or contingencies arising after the Initial Closing
      Date that may affect any one or more class of such items and that have not
      already been taken into account in the calculation of the Tranche A Borrowing
      Base or Tranche A-1 Borrowing Base, as applicable.

     

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

     

    “Eligible
      Finished Goods” means the Eligible Inventory of any Loan Party that is
      classified, consistent with past practice, on such Loan Party’s accounting
      system as “finished goods.”

     

    “Eligible
      In-Transit Inventory” means the Eligible Inventory of any Loan Party (i)
      that is in transit within the United States or (ii) that constitutes Qualified
      Goods at Sea; provided that the portions of the Tranche A Borrowing
      Base and the Tranche A-1 Borrowing Base attributable to Qualified Goods at
      Sea
      shall at no time exceed $5,000,000 in the aggregate.

     

    “Eligible
      Inventory” means the raw materials, work in process, supplies/packaging and
      finished goods Inventory of any Loan Party (other than any such Inventory that
      has been consigned by such Loan Party), (a) that is owned solely by such
      Loan Party, (b) with respect to which the Administrative Agent has a valid,
      perfected and enforceable first-priority Lien, (c) with respect to which no
      representation or warranty contained in any Loan Document has been breached,
      (d) that is not, in the Administrative Agent’s sole discretion exercised
      reasonably and in accordance with its customary business practices for its
      comparable asset based transactions, obsolete or unmerchantable, (e) with
      respect to which (in respect of any such Inventory labeled with a brand name
      or
      trademark and sold by such Loan Party pursuant to a trademark owned by such
      Loan
      Party or a license granted to such Loan Party) the Administrative Agent would
      have rights under such trademark or license pursuant to the Security Agreement
      or other agreement satisfactory to the Administrative Agent to sell such
      Inventory in connection with a liquidation thereof and (f) that the
      Administrative Agent deems to be Eligible Inventory based on such credit and
      collateral considerations as the Administrative Agent may, in its sole
      discretion exercised reasonably and in accordance with its customary practices
      for its similar 

     

     

    
      
        
        

      

      
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    asset-based
      financings, deem appropriate.  No Inventory of any Loan Party shall be
      Eligible Inventory if such Inventory consists of (i) goods returned or
      rejected by customers other than goods that are undamaged or are resalable
      in
      the normal course of business, (ii) goods to be returned to suppliers,
      (iii) goods in transit (other than Eligible In-Transit Inventory), (iv)
      hazardous materials or goods that require a Permit to be sold or transferred,
      (v) goods that are not covered by casualty insurance, (vi) goods located,
      stored, used or held at the premises of a third party unless (A)(1) the
      Administrative Agent shall have received a Landlord Waiver or Bailee’s Letter or
      (2) in the case of Inventory located at a leased premises, an Eligibility
      Reserve satisfactory to the Administrative Agent shall have been established
      with respect thereto and (B) an appropriate UCC-1 financing statement shall
      have been executed and properly filed, (vii) manufacturing supplies, any
      unfinished goods (other than Eligible Raw Materials or Eligible Work in
      Process), replacement parts, open containers or any subassemblies of component
      parts, dyes, casts, operating supplies and samples, (viii) Inventory not sold
      in
      the ordinary course of business of such Loan Party, including, without
      limitation, engineering stores, miscellaneous supplies, packaging or shipping
      materials, cartons, repair parts, fuel, labels, miscellaneous spare parts,
      samples, prototypes, and displays and display items (other than Eligible
      Supplies/Packaging) and (ix) Inventory classified by such Loan Party as
“shipped but not billed”.  Without limiting the foregoing,
      Inventory consisting of raw materials, finished goods, work in process and
      supplies and packaging and Inventory acquired in connection with a Permitted
      Acquisition shall not be deemed Eligible Inventory until the Agents shall have
      (x) completed a due diligence investigation of such Inventory and (y) received
      an Appraisal of such Inventory, in each case, with results reasonably
      satisfactory to them.

     

    “Eligible
      Raw Materials” means the Eligible Inventory of any Loan Party that is
      classified, consistent with past practice, on such Loan Party’s accounting
      system as “raw materials”.

     

    “Eligible
      Receivable” means the gross outstanding balance (less any unapplied cash)
      of each Account of any Loan Party arising out of the sale of merchandise, goods
      or services in the ordinary course of business, that is made by such Loan Party
      to a Person that is not an Affiliate of such Loan Party and in which the
      Administrative Agent has a fully perfected first priority Lien;
provided, however, that an Account shall not be an
“Eligible Receivable” if any of the following shall be
      true:

     

    (a)  such
      Account is more than (i) 60 days past due according to the original terms
      of sale or (ii) 90 days (or, with respect to any Account classified by such
      Loan
      Party as an “extended term receivable”, 180 days) past the
      original invoice date thereof; or

     

    (b)  any
      warranty contained in this Agreement or any other Loan Document with respect
      to
      such specific Account is not true and correct with respect to such Account;
      or

     

    (c)  the
      Account Debtor on such Account has disputed liability or made any claim with
      respect to any other Account due from such Account Debtor to such Loan Party
      but
      only to the extent of such dispute or claim; or

     

    (d)  the
      Account Debtor on such Account has (i) filed a petition for bankruptcy or any
      other relief under the Bankruptcy Code or any other law relating to bankruptcy,
      insolvency, reorganization or relief of debtors, (ii) made an assignment for
      

     

     

    
      
        
        

      

      
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    the
      benefit of creditors, (iii) had filed against it any petition or other
      application for relief under the Bankruptcy Code or any such other law, (iv)
      has
      failed, suspended business operations, become insolvent, called a meeting of
      its
      creditors for the purpose of obtaining any financial concession or accommodation
      or (v) had or suffered a receiver or a trustee to be appointed for all or a
      significant portion of its assets or affairs; or

     

    (e)  the
      Account Debtor on such Account or any of its Affiliates is also a supplier
      to or
      creditor of such Loan Party unless such supplier or creditor has executed a
      no
      offset letter satisfactory to the Administrative Agent, in its sole discretion;
      provided, however, that if the Account Debtor on such Account
      is a creditor, such Account shall be ineligible pursuant to this clause
      (e) only to the extent of all outstanding accounts payable or other amounts
      owing to such Account Debtor; or

     

    (f)  the
      sale
      represented by such Account is to an Account Debtor located outside the United
      States or Canada, unless the sale is on letter of credit or acceptance terms
      acceptable to the Administrative Agent, in its sole discretion and (i) such
      letter of credit names the Administrative Agent as beneficiary for the benefit
      of the Secured Parties or (ii) the issuer of such letter of credit has consented
      to the assignment of the proceeds thereof to the Administrative Agent;
      or

     

    (g)  the
      sale
      to such Account Debtor on such Account is on a bill on hold, cash on delivery,
      guaranteed sale, sale and return, sale on approval or consignment basis;
      or

     

    (h)  such
      Account is subject to a Lien in favor of any Person other than the
      Administrative Agent for the benefit of the Secured Parties, the New Senior
      Secured Note Trustee and the Existing Senior Secured Note Trustee;
      or

     

    (i)  such
      Account is subject to any deduction, offset, counterclaim, return privilege,
      rebate reserves or other conditions other than volume sales discounts given
      in
      the ordinary course of such Loan Party’s business; provided,
however, that such Account shall be ineligible pursuant to this
      clause (i) only to the extent of such deduction, offset, counterclaim,
      return privilege, rebate reserves or other condition; or

     

    (j)  the
      Account Debtor on such Account is located in any State of the United States
      requiring the holder of such Account, as a precondition to commencing or
      maintaining any action in the courts of such State either to (i) receive a
      certificate of authorization to do business in such State or be in good standing
      in such State or (ii) file a Notice of Business Activities Report with the
      appropriate office or agency of such State, in each case unless the holder
      of
      such Account has received such a certificate of authority to do business, is
      in
      good standing or, as the case may be, has duly filed such a notice in such
      State, except to the extent such Loan Party may subsequently receive such
      certificate of authority to do business, be in good standing or file such notice
      in such State and gain access to such courts, without incurring any cost or
      penalty reasonably viewed by the Administrative Agent to be material in amount,
      and such later qualification cures any access to such courts to enforce payment
      of such Account; or

     

    (k)  the
      Account Debtor on such Account is a Governmental Authority, unless such Loan
      Party has assigned its rights to payment of such Account to the Administrative
      Agent pursuant to the Assignment of Claims Act of 1940, as amended, in

     

     

    
      
        
        

      

      
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    the
      case
      of a federal Governmental Authority, and pursuant to applicable law, if any,
      in
      the case of any other Governmental Authority, and such assignment has been
      accepted and acknowledged by the appropriate government officers;
      or

     

    (l)  50%
      or
      more of the outstanding Accounts of the Account Debtor have become ineligible
      in
      accordance with clauses (a), (b) or (c) above;
      or

     

    (m)  the
      sale
      represented by such Account is denominated in a currency other than Dollars;
      or

     

    (n)  such
      Account is not evidenced by an invoice or other writing in form acceptable
      to
      the Administrative Agent, in its sole discretion exercised reasonably and in
      accordance with its customary business practices for its comparable asset based
      transactions; or

     

    (o)  such
      Loan
      Party, in order to be entitled to collect such Account, is required to perform
      any additional service for, or perform or incur any additional obligation to,
      the Person to whom or to which it was made; or

     

    (p)  the
      total
      Accounts of such Account Debtor to the Loan Parties represent more than 20%
      of
      the Eligible Receivables of the Loan Parties, individually or in the aggregate,
      at such time, but only to the extent of such excess; or

     

    (q)  the
      sale,
      invoice, or increase to Accounts is a debit memo or charge back; or

     

    (r)  with
      respect to any Account classified by such Loan Party as an “extended term
      receivable”, as of any date, such Account is due more than 90 days from such
      date; or

     

    (s)  such
      Account is acquired in connection with a Permitted Acquisition, unless the
      Agents shall have completed a due diligence investigation of such Accounts
      and
      the owner thereof, with results reasonably satisfactory to them; or

     

    (t)  the
      Administrative Agent, in accordance with its customary criteria, determines,
      in
      its sole discretion exercised reasonably and in accordance with its customary
      business practices for its comparable asset based transactions, that such
      Account might not be paid or is otherwise ineligible.

     

    “Eligible
      Supplies/Packaging” means Eligible Inventory of any Loan Party that is
      classified, consistent with past practice on such Loan Party’s accounting system
      as “supplies/packaging”.

     

    “Eligible
      Work in Process” means the Eligible Inventory of any Loan Party that is
      classified, consistent with past practice, on such Loan Party’s accounting
      system as “work in process”, to the extent that such “work in
      process” is in saleable form on an as-is basis, as determined by the
      Administrative Agent in its sole discretion.

     

    “Entitlement
      Holder” has the meaning given to such term in the UCC.

     

    
      
        
        

      

      
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    “Entitlement
      Order” has the meaning given to such term in the UCC.

     

    “Environmental
      Laws” means any and all federal, state, local and foreign statutes, laws
      (including common law), judicial decisions, regulations, ordinances, rules,
      judgments, orders, decrees, plans, injunctions, permits, concessions, grants,
      franchises, licenses, agreements and other governmental restrictions relating
      to
      the environment, natural resources, or the effect of the environment on human
      health or to emissions, discharges or releases of pollutants, contaminants,
      Hazardous Substances or wastes into the environment, including (without
      limitation) ambient air, surface water, ground water or land, or otherwise
      relating to the manufacture, processing, distribution, use, treatment, storage,
      disposal, transport or handling of pollutants, contaminants, Hazardous
      Substances or wastes or the clean up or other remediation thereof.

     

    “Environmental
      Liabilities” means all liabilities in connection with or relating to the
      business, assets presently or previously owned, leased or operated, activities
      (including, without limitation, off-site disposal) or operations of the Borrower
      and each Subsidiary, whether vested or unvested, contingent or fixed, actual
      or
      potential, known or unknown, which arise under or relate to matters covered
      by
      Environmental Laws.

     

    “Environmental
      Lien” means any Lien in favor of any Governmental Authority for
      Environmental Liabilities.

     

    “Equity
      Issuance” means the issue or sale of any Stock of the Borrower or any
      Subsidiary of the Borrower by the Borrower or any Subsidiary of the Borrower
      to
      any Person other than the Borrower or any Subsidiary of the
      Borrower.

     

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

     

    “ERISA
      Affiliate” means any trade or business (whether or not incorporated) under
      common control or treated as a single employer with the Borrower or any of
      its
      Subsidiaries within the meaning of Section 414(b), (c), (m) or (o) of the
      Code.

     

    “ERISA
      Event” means (a) a reportable event described in Section 4043(b)
      or 4043(c)(1), (2), (3), (5), (6), (8) or (9) of ERISA with respect to a
      Title IV Plan or a Multiemployer Plan, (b) the withdrawal of the
      Borrower, any of its Subsidiaries or any ERISA Affiliate from a Title IV
      Plan subject to Section 4063 of ERISA during a plan year in which it was a
      substantial employer, as defined in Section 4001(a)(2) of ERISA,
      (c) the complete or partial withdrawal of the Borrower, any of its
      Subsidiaries or any ERISA Affiliate from any Multiemployer Plan, (d) notice
      of reorganization or insolvency of a Multiemployer Plan, (e) the filing of
      a notice of intent to terminate a Title IV Plan or the treatment of a plan
      amendment as a termination under Section 4041 of ERISA, (f) the
      institution of proceedings to terminate a Title IV Plan or Multiemployer
      Plan by the PBGC, (g) the failure to make any required contribution to a
      Title IV Plan or Multiemployer Plan, (h) the imposition of a lien
      under Section 412 of the Code or Section 302 of ERISA on the Borrower
      or any of its Subsidiaries or any ERISA Affiliate or (i) any other event or
      condition that might reasonably be expected to constitute grounds under
      Section 4042 of ERISA for the termination of, or the appointment of a
      trustee to administer, any Title IV Plan or Multiemployer Plan or the
      imposition of any liability under Title IV of ERISA, other than for PBGC
      premiums due but not delinquent under Section 4007 of ERISA.

     

     

    
      
        
        

      

      
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    “Eurocurrency
      Liabilities” has the meaning assigned to that term in Regulation D of the
      Federal Reserve Board.

     

    “Eurodollar
      Base Rate” means, with respect to any Interest Period for any Eurodollar
      Rate Loan, the rate of interest determined by the Administrative Agent to be
      the
      rate per annum at which deposits in Dollars are offered by the principal office
      of Citibank in London to major banks in the London interbank market at
      11:00 a.m. (London time) two Business Days before the first day of such
      Interest Period in an amount substantially equal to such Eurodollar Rate Loan
      for a period equal to such Interest Period.

     

    “Eurodollar
      Lending Office” means, with respect to any Lender, the office of such
      Lender specified as its “Eurodollar Lending Office” opposite its name
      on Schedule II (Applicable Lending Offices and Addresses for Notices)
or on the Assignment and Acceptance by which it became a Lender (or,
      if no
      such office is specified, its Domestic Lending Office) or such other office
      of
      such Lender as such Lender may from time to time specify to the Borrower and
      the
      Administrative Agent.

     

    “Eurodollar
      Rate” means, with respect to any Interest Period for any Eurodollar Rate
      Loan, an interest rate per annum equal to the rate per annum obtained by
      dividing (a) the Eurodollar Base Rate by (b)(i) a percentage equal to
      100% minus (ii) the reserve percentage applicable two Business Days before
      the first day of such Interest Period under regulations issued from time to
      time
      by the Federal Reserve Board for determining the maximum reserve requirement
      (including any emergency, supplemental or other marginal reserve requirement)
      for a member bank of the Federal Reserve System in New York City with respect
      to
      liabilities or assets consisting of or including Eurocurrency Liabilities (or
      with respect to any other category of liabilities that includes deposits by
      reference to which the Eurodollar Rate is determined) having a term equal to
      such Interest Period.

     

    “Eurodollar
      Rate Loan” means any Loan that, for an Interest Period, bears interest
      based on the Eurodollar Rate.

     

    “Event
      of Default” has the meaning specified in Section 7.1 (Events of
      Default).

     

    “Existing
      Credit Agreement” has the meaning specified in the recitals to this
      Agreement.

     

    “Existing
      Senior Secured Note Documents” means the Existing Senior Secured Note
      Indenture, the Existing Senior Secured Notes and the Existing Senior Secured
      Security Documents.

     

    “Existing
      Senior Secured Note Indenture” means that certain Indenture, dated as of
      November 21, 2003, among the Borrower, each of the guarantors party thereto
      and
      the Existing Senior Secured Note Trustee, as amended by the Waiver in respect
      thereof dated as of February 15, 2008.

     

    “Existing
      Senior Secured Note Trustee” means HSBC Bank USA, as trustee under the
      Existing Senior Secured Note Indenture.

     

    “Existing
      Senior Secured Security Documents” means security documents that create a
      second priority Lien on the assets of the Borrower and its Subsidiaries to
      secure the 

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    obligations
      under the Existing Senior Secured Notes and the other Existing Senior Secured
      Note Documents.

     

    “Existing
      Senior Secured Notes” means the Borrower’s 8 3/4% Senior Secured Notes due
      2013, issued pursuant to the Existing Senior Secured Note Indenture, including
      exchange notes issued pursuant to the terms of the Existing Senior Secured
      Note
      Indenture.

     

    “Existing
      Subordinated Note Documents” means the Existing Subordinated Note Indenture
      and the Existing Subordinated Notes.

     

    “Existing
      Subordinated Note Indenture”  means that certain Indenture, dated
      as of June 21, 2000, between the Borrower, as issuer, and HSBC Bank USA, as
      trustee, as amended by the Supplemental Indenture thereto dated as of May 6,
      2002, the Second Supplemental Indenture thereto dated as of August 22, 2002,
      the
      Third Supplemental Indenture thereto dated as of April 25, 2005 and the Fourth
      Supplemental Indenture thereto dated as of the date hereof.

     

    “Existing
      Subordinated Notes” means the Borrower’s 123⁄4% Senior Subordinated Notes due
      2010, issued in accordance with the terms of the Existing Subordinated Note
      Indenture, including exchange notes issued pursuant to the terms of the Existing
      Subordinated Note Indenture.

     

    “Facility”
      means either the Tranche A Facility or the Tranche A-1 Facility, as
      applicable.

     

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

     

    “Federal
      Reserve Board” means the Board of Governors of the United States Federal
      Reserve System, or any successor thereto.

     

    “Fee
      Letter” shall mean the letter dated as of May 26, 2005, addressed to the
      Borrower from Citigroup Global Markets Inc. and accepted by the Borrower on
      May 26, 2005, with respect to certain fees to be paid from time to time to
      the Administrative Agent.

     

    “Financial
      Asset” has the meaning given to such term in the UCC.

     

    “Financial
      Statements” means the financial statements of the Borrower and its
      Subsidiaries (i) referred to in Section 4.4 (Financial Information) and
      (ii) delivered in accordance with Section 5.1
      (Information).

     

    “Fiscal
      Quarter” means each of the three month periods ending on or around
      March 31, June 30, September 30 and
      December 31.

     

    
      
        
        

      

      
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    “Fiscal
      Year” means the twelve month period ending on or around June 30 of each
      year.

     

    “Forbearance
      Agreement” has the meaning specified in the recitals to this
      Agreement.

     

    “Foreign
      Joint Venture” means any Joint Venture of the Borrower and/or its
      Subsidiaries other than a Domestic Joint Venture.

     

    “Foreign
      Subsidiary” means any Subsidiary of the Borrower and/or its Subsidiaries
      other than a Domestic Subsidiary.

     

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

     

    “GAAP”
      means generally accepted accounting principles in the United States of America
      as in effect from time to time set forth in the opinions and pronouncements
      of
      the Accounting Principles Board and the American Institute of Certified Public
      Accountants and the statements and pronouncements of the Financial Accounting
      Standards Board, or in such other statements by such other entity as may be
      in
      general use by significant segments of the accounting profession, that are
      applicable to the circumstances as of the date of determination.

     

    “General
      Intangible” has the meaning given to such term in the UCC.

     

    “Governmental
      Authority” means any nation, sovereign or government, any state or other
      political subdivision thereof and any entity or authority exercising executive,
      legislative, judicial, regulatory or administrative functions of or pertaining
      to government, including any central bank or stock exchange and any
      supranational bodies such as the European Union or the European Central
      Bank.

     

    “Guarantor”
      means each Subsidiary of the Borrower party to or that becomes party to the
      Guaranty.

     

    “Guaranty”
      means that certain Guaranty, dated as of the Initial Closing Date, executed
      by
      the Guarantors, a copy of which is attached hereto as Exhibit
      H.

     

    “Guaranty
      Obligation” means, as applied to any Person, any direct or indirect
      liability, contingent or otherwise, of such Person with respect to any
      Indebtedness of another Person, if the purpose or intent of such Person in
      incurring the Guaranty Obligation is to provide assurance to the obligee of
      such
      Indebtedness that such Indebtedness will be paid or discharged, that any
      agreement relating thereto will be complied with, or that any holder of such
      Indebtedness will be protected (in whole or in part) against loss in respect
      thereof, including (a) the direct or indirect guaranty, endorsement (other
      than for collection or deposit in the ordinary course of business), co-making,
      discounting with recourse or sale with recourse by such Person of Indebtedness
      of another Person and (b) any liability of such Person for Indebtedness of
      another Person through any agreement (contingent or otherwise) (i) to
      purchase, repurchase or otherwise acquire such Indebtedness or any security
      therefor or to provide funds for the payment or discharge of such Indebtedness
      (whether in the form of a loan, advance, stock purchase, capital contribution
      or
      otherwise), (ii) to maintain the solvency or any balance sheet item, level
      of 

     

     

    
      
        
        

      

      
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    income
      or
      financial condition of another Person, (iii) to make take-or-pay or similar
      payments, if required, regardless of non-performance by any other party or
      parties to an agreement, (iv) to purchase, sell or lease (as lessor or
      lessee) property, or to purchase or sell services, primarily for the purpose
      of
      enabling the debtor to make payment of such Indebtedness or to assure the holder
      of such Indebtedness against loss or (v) to supply funds to, or in any
      other manner invest in, such other Person (including to pay for property or
      services irrespective of whether such property is received or such services
      are
      rendered), if in the case of any agreement described under
clause (b)(i), (ii), (iii), (iv) or
(v) above the primary purpose
      or intent thereof is to provide assurance
      that Indebtedness of another Person will be paid or discharged, that any
      agreement relating thereto will be complied with or that any holder of such
      Indebtedness will be protected (in whole or in part) against loss in respect
      thereof.  The amount of any Guaranty Obligation shall be equal to the
      amount of the Indebtedness so guaranteed or otherwise supported.

     

    “Hazardous
      Substance” means any material, substance or waste classified, characterized
      or otherwise regulated as toxic, radioactive, caustic, hazardous, pollutant,
      contaminant or words of similar meaning under Environmental Laws, including
      petroleum, its derivatives, by products and other hydrocarbons, or any substance
      having any constituent elements displaying any of the foregoing
      characteristics.

     

    “Hedging
      Contracts” means all Interest Rate Contracts, foreign exchange contracts,
      currency swap or option agreements, forward contracts, commodity swap, purchase
      or option agreements, other commodity price hedging arrangements and all other
      similar agreements or arrangements designed to alter the risks of any Person
      arising from fluctuations in interest rates, currency values or commodity
      prices.

     

    “Indebtedness”
      of any Person means without duplication (a) all indebtedness of such Person
      for borrowed money, (b) all obligations of such Person evidenced by notes,
      bonds, debentures or similar instruments, (c) all reimbursement and all
      obligations with respect to letters of credit, bankers’ acceptances, surety
      bonds and performance bonds, whether or not matured, (d) all indebtedness
      for the deferred purchase price of property or services, other than trade
      payables incurred in the ordinary course of business that remain unpaid for
      less
      than 90 days past the due date therefor or that are otherwise subject to a
      bona
      fide dispute, (e) all indebtedness of such Person created or arising under
      any conditional sale or other title retention agreement with respect to property
      acquired by such Person (even though the rights and remedies of the seller
      or
      lender under such agreement in the event of default are limited to repossession
      or sale of such property), (f) all Capital Lease Obligations of such
      Person, (g) all Guaranty Obligations of such Person, (h) all
      obligations of such Person to purchase, redeem, retire, defease or otherwise
      acquire for value any Stock or Stock Equivalents of such Person prior to the
      first anniversary of the Scheduled Termination Date, valued, in the case of
      redeemable preferred stock, at the greater of its voluntary liquidation
      preference and its involuntary liquidation preference plus accrued and unpaid
      dividends, (i) all payments that such Person would have to make in the
      event of an early termination on the date Indebtedness of such Person is being
      determined in respect of Hedging Contracts of such Person and (j) all
      Indebtedness of the type referred to above secured by (or for which the holder
      of such Indebtedness has an existing right, contingent or otherwise, to be
      secured by) any Lien upon or in property (including Accounts and General
      Intangibles) owned by such Person, even though such Person has not assumed
      or
      become liable for the payment of such Indebtedness.

     

    “Indemnified
      Matter” has the meaning specified in Section 9.4
      (Indemnities).

     

    
      
        
        

      

      
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    “Indemnitee”
      has the meaning specified in Section 9.4
      (Indemnities).

     

    “Information”
      means all information received from the Borrower or any of its Subsidiaries
      relating to the Borrower or any of its Subsidiaries or any of their respective
      businesses, other than any such information that is available to the
      Administrative Agent, any Lender or any Issuer on a non-confidential basis
      prior
      to disclosure by the Borrower or any of its Subsidiaries, unless, in the case
      of
      information received from the Borrower or any of its Subsidiaries after the
      Effective Date, such information is clearly identified at the time of delivery
      as not confidential.

     

    “Initial
      Closing Date” means June 10, 2005.

     

    “Interest
      Period” means, in the case of any Eurodollar Rate Loan, (a) initially,
      the period commencing on the date such Eurodollar Rate Loan is made or on the
      date of conversion of a Base Rate Loan to such Eurodollar Rate Loan and ending
      one, two, three or six months thereafter, as selected by the Borrower in its
      Notice of Borrowing or Notice of Conversion or Continuation given to the
      Administrative Agent pursuant to Section 2.2 (Borrowing
      Procedures) or 2.11 (Conversion/Continuation Option) and
      (b) thereafter, if such Loan is continued, in whole or in part, as a
      Eurodollar Rate Loan pursuant to Section 2.11 (Conversion/Continuation
      Option), a period commencing on the last day of the immediately preceding
      Interest Period therefor and ending one, two, three or six months thereafter,
      as
      selected by the Borrower in its Notice of Conversion or Continuation given
      to
      the Administrative Agent pursuant to Section 2.11
      (Conversion/Continuation Option); provided, however, that
      all of the foregoing provisions relating to Interest Periods in respect of
      Eurodollar Rate Loans are subject to the following:

     

    (i)  if
      any
      Interest Period would otherwise end on a day that is not a Business Day, such
      Interest Period shall be extended to the next succeeding Business Day, unless
      the result of such extension would be to extend such Interest Period into
      another calendar month, in which event such Interest Period shall end on the
      immediately preceding Business Day;

     

    (ii)  any
      Interest Period that begins on the last Business Day of a calendar month (or
      on
      a day for which there is no numerically corresponding day in the calendar month
      at the end of such Interest Period) shall end on the last Business Day of a
      calendar month;

     

    (iii)  the
      Borrower may not select any Interest Period in respect of Loans having an
      aggregate principal amount of less than $5,000,000; and

     

    (iv)  there
      shall be outstanding at any one time no more than five Interest Periods in
      the
      aggregate.

     

    “Interest
      Rate Contracts” means all interest rate swap agreements, interest rate cap
      agreements, interest rate collar agreements and interest rate
      insurance.

     

    “Inventory”
      has the meaning given to such term in the UCC.

     

    “Investment”
      means, with respect to any Person, (a) any purchase or other acquisition by
      such Person of (i) any Security issued by, (ii) a beneficial interest
      in any Security 

     

     

    
      
        
        

      

      
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    issued
      by,
      or (iii) any other equity ownership interest in, any other Person,
      (b) any purchase by such Person of all or a significant part of the assets
      of a business conducted by any other Person, or all or substantially all of
      the
      assets constituting the business of a division, branch or other unit operation
      of any other Person, (c) any loan, advance or capital contribution by such
      Person to any other Person, including all Indebtedness of any other Person
      to
      such Person arising from a sale of property by such Person other than in the
      ordinary course of its business and (d) any Guaranty Obligation incurred by
      such Person in respect of Indebtedness of any other Person.

     

    “IRS”
      means the Internal Revenue Service of the United States or any successor
      thereto.

     

    “Issue”
      means, with respect to any Letter of Credit, to issue, extend the expiry of,
      renew or increase the maximum face amount (including by deleting or reducing
      any
      scheduled decrease in such maximum face amount) of, such Letter of
      Credit.  The terms “Issued” and “Issuance” shall
      have a corresponding meaning.

     

    “Issuer”
      means each Tranche A Lender or Affiliate of a Tranche A Lender that (a) is
      listed on the signature pages hereof as an “Issuer” or
      (b) hereafter becomes an Issuer with the approval of the Administrative
      Agent and the Borrower by agreeing pursuant to an agreement with and in form
      and
      substance satisfactory to the Administrative Agent and the Borrower to be bound
      by the terms hereof applicable to Issuers.

     

    “Joint
      Venture” means any Person, other than an individual or a Wholly-Owned
      Subsidiary of the Borrower, in which the Borrower or a Subsidiary of the
      Borrower holds or acquires an ownership interest (whether by way of capital
      stock, partnership or limited liability company interest, or other evidence
      of
      ownership).

     

    “Land”
      of any Person means all of those plots, pieces or parcels of land now owned,
      leased or hereafter acquired or leased or purported to be owned, leased or
      hereafter acquired or leased (including, in respect of the Loan Parties, as
      reflected in the most recent Financial Statements) by such Person.

     

    “Landlord
      Waiver” means a letter, substantially in the form of Exhibit O (Form of
      Landlord Waiver), or otherwise in form and substance reasonably acceptable
      to the Administrative Agent, and executed by a landlord in respect of Inventory
      or any other Collateral of any Loan Party located at any leased premises of
      such
      Loan Party pursuant to which such landlord, among other things, waives or
      subordinates on terms and conditions reasonably acceptable to the Administrative
      Agent any Lien such landlord may have in respect of such Inventory or other
      Collateral.

     

    “Leases”
      means, with respect to any Person, all of those leasehold estates in real
      property of such Person, as lessee, as such may be amended, supplemented or
      otherwise modified from time to time.

     

    “Lender”
      means the Swing Loan Lender and each other financial institution or other entity
      that (a) is listed on the signature pages hereof as a “Lender” or
      (b) from time to time becomes a party hereto by execution of an Assignment
      and Acceptance.

     

    “Letter
      of Credit” means any letter of credit Issued pursuant to
Section 2.4 (Letters of Credit).

     

     

    
      
        
        

      

      
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    “Letter
      of Credit Obligations” means, at any time, the aggregate of all liabilities
      at such time of the Borrower to all Issuers with respect to Letters of Credit,
      whether or not any such liability is contingent, including, without duplication,
      the sum of (a) the Reimbursement Obligations at such time and (b) the
      Letter of Credit Undrawn Amounts at such time.

     

    “Letter
      of Credit Reimbursement Agreement” has the meaning specified in
Section 2.4(a)(vi) (Letters of Credit).

     

    “Letter
      of Credit Request” has the meaning specified in Section 2.4(c)
      (Letters of Credit).

     

    “Letter
      of Credit Sublimit” means, at any time, the lesser of (a) the aggregate
      amount of the Tranche A Commitments in effect at such time and (b)
      $25,000,000.

     

    “Letter
      of Credit Undrawn Amounts” means, at any time, the aggregate undrawn face
      amount of all Letters of Credit outstanding at such time.

     

    “Lien”
      means any mortgage, deed of trust, pledge, hypothecation, assignment, charge,
      deposit arrangement, encumbrance, lien (statutory or other), security interest
      or preference, priority or other security agreement or preferential arrangement
      of any kind or nature whatsoever intended to assure payment of any Indebtedness
      or the performance of any other obligation, including any conditional sale
      or
      other title retention agreement, the interest of a lessor under a Capital Lease
      and any financing lease having substantially the same economic effect as any
      of
      the foregoing, and the filing of any financing statement under the UCC or
      comparable law of any jurisdiction naming the owner of the asset to which such
      Lien relates as debtor.

     

    “Loan”
      means any loan made by any Lender pursuant to this Agreement.

     

    “Loan
      Documents” means, collectively, this Agreement, the Revolving Credit Notes
      (if any), the Guaranty, the Fee Letter, the Supplemental Fee Letter, each Letter
      of Credit Reimbursement Agreement, each Hedging Contract between any Loan Party
      and any Person that was a Lender or an Affiliate of a Lender at the time it
      entered into such Hedging Contract, each Cash Management Document, the
      Collateral Documents and each certificate, agreement or document executed by
      a
      Loan Party and delivered to the Administrative Agent or any Lender in connection
      with or pursuant to any of the foregoing.

     

    “Loan
      Party” means each of the Borrower, each Guarantor and each other Subsidiary
      of the Borrower that executes and delivers a Loan Document.

     

    “Margin
      Regulations” means Regulations T, U and X of the Federal Reserve
      Board.

     

    “Margin
      Stock” has the meaning set forth in Regulation U of the Federal Reserve
      Board.

     

    “Majority
      Lenders” means, collectively, Lenders having 50% or more of the aggregate
      outstanding amount of the Revolving Credit Commitments or, after the Revolving
      Credit Termination Date, 50% or more of the aggregate Revolving Credit
      Outstandings.  A Non-Funding Lender shall not be included in the
      calculation of “Majority Lenders.”

     

     

    
      
        
        

      

      
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    “Material
      Adverse Change” means a material adverse change in any of (a) the
      business, condition (financial or otherwise), operations, performance,
      properties, contingent liabilities, material agreements or prospects of the
      Borrower or the Borrower and its Subsidiaries taken as a whole, (b) the
      ability of the Borrower to repay the Obligations or of the other Loan Parties
      to
      perform their respective obligations under the Loan Documents or (c) the
      rights and remedies of the Administrative Agent, the Lenders or the Issuers
      under the Loan Documents.

     

    “Material
      Adverse Effect” means an effect that results in or causes, or could
      reasonably be expected to result in or cause, a Material Adverse
      Change.

     

    “Maximum
      Tranche A Credit” means, at any time, (a) the lesser of (i) the
      Tranche A Commitments in effect at such time and (ii) the Tranche A
      Borrowing Base at such time minus (b) the aggregate amount of any
      Availability Reserve in effect at such time.

     

    “Maximum
      Tranche A-1 Credit” means, at any time, the lesser of (a) the Tranche
      A-1 Commitments in effect at such time and (b) the Tranche A-1 Borrowing
      Base at such time.

     

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

     

    “Multiemployer
      Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of
      ERISA, to which the Borrower, any of its Subsidiaries or any ERISA Affiliate
      has
      any obligation or liability, contingent or otherwise.

     

    “Net
      Cash Proceeds” means proceeds received by the Borrower or any of its
      Subsidiaries after the Initial Closing Date in cash or Cash Equivalents from
      any
      (a) Asset Sale, other than an Asset Sale permitted under Section
      6.4(a), (b) or (c) (Sales of Assets), net of (i) the
      reasonable cash costs of sale, assignment or other disposition, (ii) taxes
      paid or reasonably estimated to be payable as a result thereof and
      (iii) any amount required to be paid or prepaid on Indebtedness (other than
      the Obligations) secured by the assets subject to such Asset Sale,
provided, however, that evidence of each of clauses
      (i), (ii) and (iii) above is provided to the
      Administrative Agent in form and substance satisfactory to it, (b) Property
      Loss Event or (c)(i) Equity Issuance or (ii) any Debt Issuance, in
      each case net of brokers’ and advisors’ fees and other costs incurred in
      connection with such transaction; provided, however, that in
      the case of this clause (c), evidence of such costs is provided to
      the Administrative Agent in form and substance satisfactory to it.

     

    “New
      Senior Secured Note Documents” means the New Senior Secured Note Indenture,
      the New Senior Secured Notes and the New Senior Secured Note Security
      Documents.

     

    “New
      Senior Secured Note Indenture” means that certain Indenture, dated as of
      June 10, 2005, among the Borrower, each of the guarantors party thereto and
      the
      New Senior Secured Note Trustee.

     

    “New
      Senior Secured Note Trustee” means HSBC Bank USA, National Association, as
      trustee under the New Senior Secured Note Indenture.

     

    “New
      Senior Secured Notes” means the Borrower’s 10 7/8% Senior Secured Notes due
      2012, issued in accordance with the terms of the New Senior Secured Note
      Indenture, including exchange notes issued pursuant to the terms of the New
      Senior Secured Note Indenture.

     

     

    
      
        
        

      

      
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    “New
      Senior Secured Note Security Documents” means security documents that
      create a junior Lien on the Collateral and a Lien on the other assets of the
      Borrower and its Subsidiaries to secure the obligations under the New Senior
      Secured Notes and the other New Senior Secured Note Documents.

     

    “Non-Consenting
      Lender” has the meaning specified in Section 9.1(c) (Amendments,
      Waivers, Etc.).

     

    “Non-Funding
      Lender” has the meaning specified in Section 2.2(d) (Borrowing
      Procedures).

     

    “Non-U.S.
      Lender” means each Lender or Issuer (or the Administrative Agent) that is a
      Non-U.S. Person.

     

    “Non-U.S.
      Person” means any Person that is not a Domestic Person.

     

    “Notice
      of Borrowing” has the meaning specified in Section 2.2(a)
      (Borrowing Procedures).

     

    “Notice
      of Conversion or Continuation” has the meaning specified in
Section 2.11 (Conversion/Continuation Option).

     

    “Obligations”
      means  the Loans, the Letter of Credit Obligations and all other amounts,
      obligations, covenants and duties owing by the Borrower to the Administrative
      Agent, any Lender, any Issuer, any Affiliate of any of them or any Indemnitee,
      of every type and description (whether by reason of an extension of credit,
      opening or amendment of a letter of credit or payment of any draft drawn or
      other payment thereunder, loan, guaranty, indemnification, foreign exchange
      or
      currency swap transaction, interest rate hedging transaction or otherwise),
      present or future, arising under this Agreement or any other Loan Document
      (including Cash Management Documents and Hedging Contracts that are Loan
      Documents), whether direct or indirect (including those acquired by assignment),
      absolute or contingent, due or to become due, now existing or hereafter arising
      and however acquired and whether or not evidenced by any note, guaranty or
      other
      instrument or for the payment of money, including all letter of credit, cash
      management and other fees, interest, charges, expenses, attorneys’ fees and
      disbursements, Cash Management Obligations and other sums chargeable to the
      Borrower under this Agreement or any other Loan Document (including Cash
      Management Documents and Hedging Contracts that are Loan Documents) and all
      obligations of the Borrower under any Loan Document to provide cash collateral
      for any Letter of Credit Obligation.

     

    “Orderly
      Liquidation Value Percentage” means the orderly liquidation value on an
      as-is-where-is basis (net of costs and expenses incurred in connection with
      liquidation) of inventory as a percentage of the cost of such Inventory, which
      percentage shall be determined by reference to the most recent third-party
      Appraisal of such Inventory received by the Administrative Agent.

     

    “Participant”
      has the meaning specified in Section 9.2(g)(i) (Assignments and
      Participations).

     

    “Patriot
      Act” means the USA Patriot Act of 2001 (31 U.S.C. 5318 et
      seq.).

     

     

    
      
        
        

      

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

     

    “Permit”
      means any permit, approval, authorization, license, variance or permission
      required from a Governmental Authority under an applicable Requirement of
      Law.

     

    “Permitted
      Acquisition” has the meaning specified in Section 6.6(i)
      (Investments).

     

    “Permitted
      Acquisition Target” means any Person or any operating division thereof
      subject to a Permitted Acquisition.

     

    “Permitted
      Factoring Agreement” means any agreement pursuant to which a Foreign
      Subsidiary shall sell, transfer and assign its rights, title and interests
      in
      certain accounts receivable in connection with a securitization thereof to
      a
      factoring company for fair market value and otherwise on market terms, a copy
      of
      which has been provided to the Administrative Agent.

     

    “Permitted
      Holders” means (i) Dr. F. Patrick Smith, the estate of Kenneth W.R. Baker
      and (a) entities controlled by such Persons, (b) trusts for the benefit of
      such
      individual Persons or the spouses, issue, parents or other relatives of such
      individual Persons and (c) in the event of the death of any such individual
      Person, heirs or testamentary legatees of such Person; (ii) Tekni-Plex Partners
      LLC and entities controlled by such Person; (iii) Weston Presidio Service
      Company, LLC and its Affiliates, and (iv) after the consummation of the Debt
      Swap, any Person who acquired Voting Stock of the Borrower pursuant to the
      Debt
      Swap as long as such Person (x) holds beneficial ownership of 25% or more of
      the
      issued and outstanding Voting Stock of the Borrower immediately following such
      consummation or (y) is acting as part of a group (within the meaning of the
      Securities Exchange Act of 1934, as amended) that participated in the Debt
      Swap.  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 or by contract
      or otherwise.

     

    “Permitted
      Refinancing” means, with respect to any Indebtedness permitted pursuant to
Sections 6.2(j),(k) or (l) (Limitation on Indebtedness),
      Indebtedness constituting a refinancing or extension thereof that (a) has an
      aggregate outstanding principal amount not greater than the aggregate principal
      amount of such Indebtedness outstanding at the time of such refinancing or
      extension, (b) has a weighted average maturity (measured as of the date of
      such
      refinancing or extension) and maturity no shorter than that of such
      Indebtedness, (c) is not entered into as part of a sale and leaseback
      transaction, (d) is not secured by any property or any Lien other than those
      securing such Indebtedness and (e) is otherwise on terms no less favorable
      to
      the Borrower and its Subsidiaries, taken as a whole, than those of such
      Indebtedness; provided, however, that, notwithstanding the
      foregoing, (x) the terms of such Indebtedness may be modified as part of such
      Permitted Refinancing if such modification would have been permitted pursuant
      to
Section 6.10 (Limitation on Voluntary Payments and Modifications of
      Indebtedness and Preferred Stock Documents), (y) no Guaranty Obligation for
      such Indebtedness shall constitute part of such Permitted Refinancing unless
      similar Guaranty Obligations with respect to such Indebtedness existed and
      were
      permitted pursuant to this Agreement prior to such refinancing or extension
      and
      (z) no proceeds of the Loans shall be used in connection with such Permitted
      Refinancing, except for an aggregate amount during the term of this Agreement
      not to exceed $3,000,000 used to pay reasonable fees and expenses incurred
      in
      connection with such Permitted Refinancing.

     

     

    
      
        
        

      

      
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    “Person”
      means an individual, partnership, corporation (including a business trust),
      joint stock company, estate, trust, limited liability company, unincorporated
      association, joint venture or other entity or a Governmental
      Authority.

     

    “Pledge
      Agreement” means that certain Pledge Agreement, dated as of the Initial
      Closing Date, executed by the Borrower and each Guarantor, a copy of which
      is
      attached hereto as Exhibit M.

     

    “Pledged
      Instruments” has the meaning specified in the Pledge
      Agreement.

     

    “Proceeds”
      has the meaning given to such term in the UCC.

     

    “Projections”
      means those financial projections included in the Borrower’s business plan
      delivered pursuant to Section 3.1 (Conditions Precedent to
      Effectiveness).

     

    “Property
      Loss Event” means (a) any loss of or damage to property of the
      Borrower or any of its Subsidiaries that results in the receipt by such Person
      of proceeds of insurance whose Dollar Equivalent exceeds $1,000,000
      (individually or in the aggregate) or (b) any taking of property of the
      Borrower or any of its Subsidiaries that results in the receipt by such Person
      of a compensation payment in respect thereof whose Dollar Equivalent exceeds
      $1,000,000 (individually or in the aggregate).

     

    “Protective
      Advances” means all expenses, disbursements and advances incurred by the
      Administrative Agent pursuant to the Loan Documents after the occurrence and
      during the continuance of an Event of Default that the Administrative Agent,
      in
      its sole discretion exercised reasonably and in accordance with its customary
      business practices for its comparable asset based transactions, deems necessary
      or desirable to preserve or protect the Collateral or any portion thereof or
      to
      enhance the likelihood, or maximize the amount, of repayment of the
      Obligations.

     

    “Purchasing
      Lender” has the meaning specified in Section 9.7 (Sharing of
      Payments, Etc.).

     

    “Qualified
      Goods at Sea” means goods in transit on the high seas: (a) that have been
      purchased by the Borrower or a Guarantor pursuant to an English language
      purchase and sale contract satisfactory to the Administrative Agent (including,
      without limitation, containing “FOB port of loading” or “C&F port of
      discharge” terms, representations and warranties, indemnities, governing law and
      arbitration provisions satisfactory to the Administrative Agent), with respect
      to which the Administrative Agent has a valid perfected, first priority security
      interest in the Borrower’s or such Guarantor’s rights thereunder; (b) either (i)
      that have been fully paid for in accordance with the terms of the invoice
      therefor and the related purchase and sale agreement pursuant to a draw on
      a
      Letter of Credit or (ii) in respect of which a Letter of Credit satisfactory
      to
      the Administrative Agent has been issued by the Issuer to the seller of such
      goods as beneficiary or (iii) that have been purchased by the Borrower or a
      Guarantor on open terms of sale of 60 days or less; (c) that are covered by
      a
      negotiable bill of lading that (i) is in the possession of the Administrative
      Agent (or, in the Administrative Agent’s sole discretion, the Administrative
      Agent’s designee) and indorsed by the Borrower or the applicable Guarantor or
      issued to the Administrative Agent (or, in the Administrative Agent’s sole
      discretion, the Administrative Agent’s designee), (ii) is issued by a carrier
      satisfactory to the Administrative Agent having an “overall risk rating” of at
      least 5 by MRC Lloyd’s MIU – North America, and (iii) contains a “freight
      prepaid” clause satisfactory to the Administrative Agent, unless the

     

     

    
      
        
        

      

      
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    Administrative
      Agent has established adequate reserves therefor; (d) that are subject to a
      contract of carriage that prohibits intermediate ports of call other than to
      an
      OECD Country, Russia and Brazil unless otherwise consented to by the
      Administrative Agent in writing; (e) that are covered by insurance as set forth
      on Schedule 4.18 (Insurance) (or otherwise satisfactory to the
      Administrative Agent) with respect to which a certificate of insurance
      satisfactory to the Administrative Agent has been issued and delivered to the
      Administrative Agent; (f) with respect to which the Administrative Agent shall
      have received accurate and complete information as to customs, tariffs and
      other
      charges that will be charged or levied against such goods upon entry into the
      United States; and (g) (i) that are not expected to be in transit for more
      than
      60 days or (ii) that have not been in transit for more than 60
      days.

     

    “Qualified
      Preferred Stock” of any Person means any preferred stock of such Person
      other than preferred stock which (x) requires any cash payment of dividends
      or
      other distributions (other than pursuant to provisions that expressly provide
      that no such payment can be made in violation of this Agreement) or (y) by
      its
      terms (or by the terms of any Security into which it is convertible or for
      which
      it is exchangeable), or upon the happening of any event, matures or is
      mandatorily redeemable, pursuant to a sinking fund obligation or otherwise,
      or
      is redeemable at the option of the holder thereof, in whole or in part, on
      or
      prior to the final maturity of the Obligations (other than pursuant to change
      of
      control provisions similar to those set forth herein; provided,
      however, that such provisions expressly provide that no payment can be made
      on such stock in violation of this Agreement).

     

    “Qualified
      Subordinated Debt” of any Person means Indebtedness of such Person that (i)
      is subordinated to the Obligations pursuant to subordination provisions at
      least
      as favorable to the holders of the Obligations as are the subordination
      provisions contained in the Existing Subordinated Note Documents as in effect
      on
      the Effective Date, (ii) does not require any cash payments of principal or
      interest, either by its terms or upon the happening of an event, or cash
      payments of principal or interest at the option of the holder thereof, prior
      to
      the first anniversary of the Revolving Credit Termination Date (other than
      pursuant to provisions that expressly provide that no such payment can be made
      in violation of this Agreement) and (iii) does not contain terms and conditions,
      including covenants and events of default, that in the aggregate are less
      favorable to the Borrower and its Subsidiaries, or the Lenders, than the terms
      and conditions contained in the Existing Subordinated Note Document as in effect
      on the Effective Date.

     

    “Ratable
      Portion” or (other than in the expression “equally and ratably”)
“ratably” means, (a) with respect to any Tranche A Lender, the
      percentage obtained by dividing (i) the Tranche A Commitment of such Tranche
      A
      Lender by (ii) the aggregate Tranche A Commitments of all Tranche A Lenders
      (or,
      at any time after the Revolving Credit Termination Date, the percentage obtained
      by dividing the aggregate outstanding principal balance of the Tranche A
      Outstandings owing to such Tranche A Lender by the aggregate outstanding
      principal balance of the Tranche A Outstandings owing to all Tranche A Lenders),
      (b) with respect to any Tranche A-1 Lender, the percentage obtained by dividing
      (i) the Tranche A-1 Commitment of such Tranche A-1 Lender by (ii) the aggregate
      Tranche A-1 Commitments of all Tranche A-1 Lenders (or, at any time after the
      Revolving Credit Termination Date, the percentage obtained by dividing the
      aggregate outstanding principal balance of the Tranche A-1 Outstandings owing
      to
      such Tranche A-1 Lender by the aggregate outstanding principal balance of the
      Tranche A-1 Outstandings owing to all Tranche A-1 Lenders) or (c) with respect
      to any Lender, the percentage obtained by dividing (i) the Revolving Credit
      Commitment of such Lender by (ii) the aggregate 

     

     

    
      
        
        

      

      
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    Revolving
      Commitments of all Lenders (or, at any time after the Revolving Credit
      Termination Date, the percentage obtained by dividing the aggregate outstanding
      principal balance of the Revolving Credit Outstandings owing to such Lender by
      the aggregate outstanding principal balance of the Revolving Credit Outstandings
      owing to all Lenders).

     

    “Reaffirmation
      Agreement” means that certain Reaffirmation Agreement, in substantially the
      form of Exhibit Q (Form of Reaffirmation Agreement), dated as of the
      Effective Date and executed by the Borrower and each Guarantor party
      thereto.

     

    “Real
      Property” of any Person means the Land of such Person, together with the
      right, title and interest of such Person, if any, in and to the streets, the
      Land lying in the bed of any streets, roads or avenues, opened or proposed,
      in
      front of, the air space and development rights pertaining to the Land and the
      right to use such air space and development rights, all rights of way,
      privileges, liberties, tenements, hereditaments and appurtenances belonging
      or
      in any way appertaining thereto, all fixtures, all easements now or hereafter
      benefiting the Land and all royalties and rights appertaining to the use and
      enjoyment of the Land, including all alley, vault, drainage, mineral, water,
      oil
      and gas rights, together with all of the buildings and other improvements now
      or
      hereafter erected on the Land and any fixtures appurtenant thereto.

     

    “Register”
      has the meaning specified in Section 2.7(b) (Evidence of
      Debt).

     

    “Regulated
      Activity” means any generation, treatment, storage, recycling,
      transportation or disposal of any Hazardous Substance.

     

    “Reimbursement
      Date” has the meaning specified in Section 2.4(h) (Letters of
      Credit).

     

    “Reimbursement
      Obligations” means, as and when matured, the obligation of the Borrower to
      pay, on the date payment is made or scheduled to be made to the beneficiary
      under each such Letter of Credit (or at such other date as may be specified
      in
      the applicable Letter of Credit Reimbursement Agreement) and in the currency
      drawn (or in such other currency as may be specified in the applicable Letter
      of
      Credit Reimbursement Agreement), all amounts of each draft and other requests
      for payments drawn under Letters of Credit, and all other matured reimbursement
      or repayment obligations of the Borrower to any Issuer with respect to amounts
      drawn under Letters of Credit.

     

    “Release”
      means, with respect to any Person, any release, spill, emission, leaking,
      pumping, injection, deposit, disposal, discharge, dispersal, leaching or
      migration, in each case, of any Hazardous Substance into the indoor or outdoor
      environment or into or out of any property owned, leased or operated by such
      Person, including the movement of Hazardous Substances through or in the air,
      soil, surface water, ground water or property.

     

    “Remedial
      Action” means all actions required to (a) clean up, remove, treat or
      in any other way address any Hazardous Substance in the indoor or outdoor
      environment, (b) prevent the Release or threat of Release or minimize the
      further Release so that a Hazardous Substance does not migrate or endanger
      or
      threaten to endanger public health or welfare or the indoor or outdoor
      environment or (c) perform pre-remedial studies and investigations and
      post-remedial monitoring and care.

     

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    “Requirement
      of Law” means, with respect to any Person, the common law and all federal,
      state, local and foreign laws, treaties, rules and regulations, orders,
      judgments, decrees and other determinations of, concessions, grants, franchises,
      licenses and other Contractual Obligations with, any Governmental Authority
      or
      arbitrator, applicable to or binding upon such Person or any of its property
      or
      to which such Person or any of its property is subject.

     

    “Requisite
      Lenders” means, collectively, Lenders having 662⁄3% or more of the aggregate
      outstanding amount of the Revolving Credit Commitments or, after the Revolving
      Credit Termination Date, 662⁄3% or more of the aggregate Revolving Credit
      Outstandings.  A Non-Funding Lender shall not be included in the
      calculation of “Requisite Lenders.”

     

    “Responsible
      Officer” means, with respect to any Person, any of the principal executive
      officers, managing members or general partners of such Person but, in any event,
      with respect to financial matters, the chief financial officer, treasurer or
      controller of such Person.

     

    “Restricted
      Payment” means (a) any dividend, distribution or any other payment
      whether direct or indirect, on account of any Stock or Stock Equivalent of
      the
      Borrower or any of its Subsidiaries now or hereafter outstanding and
      (b) any payment, purchase or other acquisition for value, direct or
      indirect, of any Stock or Stock Equivalent of the Borrower or any of its
      Subsidiaries now or hereafter outstanding, whether in connection with any
      redemption or retirement of, or sinking fund with respect to, such Stock or
      Stock Equivalent or otherwise, but not including payments of principal, premium
      (if any) or interest made pursuant to the terms of convertible debt securities
      prior to conversion.

     

    “Revolving
      Credit Commitments” means, collectively, the Tranche A Commitments and the
      Tranche A-1 Commitments.

     

    “Revolving
      Credit Note” means a promissory note of the Borrower payable to the order
      of any Lender in a principal amount equal to the amount of such Lender’s
      Revolving Credit Commitment evidencing the aggregate Indebtedness of the
      Borrower to such Lender resulting from the Revolving Loans owing to such
      Lender.

     

    “Revolving
      Credit Outstandings” means, at any particular time, the sum of (a) the
      Tranche A Outstandings at such time and (b) the Tranche A-1 Outstandings
      outstanding at such time.

     

    “Revolving
      Credit Termination Date” shall mean the earliest of (a) the Scheduled
      Termination Date, (b) the date of termination of all of the Revolving
      Credit Commitments pursuant to Section 2.5 (Reduction and Termination
      of the Revolving Credit Commitments) and (c) the date on which the
      Obligations become due and payable pursuant to Section 7.2
      (Remedies).

     

    “Revolving
      Loans” means the Tranche A Loans and the Tranche A-1 Loans.

     

    “S&P”
      means Standard & Poor’s Rating Services.

     

    “Scheduled
      Termination Date” means the second anniversary of the Effective
      Date.

     

    “SEC”
      means the Securities and Exchange Commission or any successor
      thereof.

     

     

    
      
        
        

      

      
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    “Secured
      Hedging Reserve” means, in respect of any Hedging Contracts that constitute
      Loan Documents, such amount as the Administrative Agent may from time to time
      establish against the Tranche A Borrowing Base in respect of such Hedging
      Contracts, in each case calculated by the Administrative Agent based upon a
      methodology consistent with its customary business practices for its comparable
      asset based transactions.

     

    “Secured
      Obligations” means, in the case of the Borrower, the Obligations, and, in
      the case of any other Loan Party, the obligations of such Loan Party under
      the
      Guaranty and the other Loan Documents to which it is a party.

     

    “Secured
      Parties” means the Lenders, the Issuers, the Agents and any other holder of
      any Secured Obligation.

     

    “Securities
      Account” has the meaning given to such term in the UCC.

     

    “Securities
      Account Control Agreement” means an agreement, substantially in the form of
Exhibit L (Form of Securities Account Control Agreement) , or otherwise
      in form and substance reasonably acceptable to the Administrative Agent,
      executed by the applicable Loan Party, the Administrative Agent and the
      applicable securities intermediary.

     

    “Security”
      means any Stock, Stock Equivalent, voting trust certificate, bond, debenture,
      note or other evidence of Indebtedness, whether secured, unsecured, convertible
      or subordinated, or any certificate of interest, share or participation in,
      any
      temporary or interim certificate for the purchase or acquisition of, or any
      right to subscribe to, purchase or acquire, any of the foregoing, but shall
      not
      include any evidence of the Obligations.

     

    “Security
      Agreement” means that certain Security Agreement, dated as of the Initial
      Closing Date, executed by the Borrower and each Guarantor, a copy of which
      is
      attached hereto as Exhibit I.

     

    “Selling
      Lender” has the meaning specified in Section 9.7 (Sharing of
      Payments, Etc.).

     

    “Series
      A Preferred Stock” means the redeemable non-convertible Series A Preferred
      Stock, par value $0.01 per share, of the Borrower having the rights,
      restrictions, privileges and preferences set forth in the Series A Preferred
      Stock Documents.

     

    “Series
      A Preferred Stock Documents” means the Amended and Restated Certificate of
      Incorporation of the Borrower, the Series A Preferred Stock Purchase Agreement,
      dated as of May 13, 2005, by and among the Borrower and the investors listed
      on
      Exhibit A thereto, the Amended and Restated Investors’ Agreement, dated as of
      May 13, 2005, among the Borrower and the other parties thereto, and each
      agreement executed by the Borrower or any of its Subsidiaries in connection
      with
      or pursuant to any of the foregoing.

     

    “Special
      Purpose Vehicle” means any special purpose funding vehicle identified as
      such in writing by any Lender to the Administrative Agent.

     

    “Standby
      Letter of Credit” means any Letter of Credit that is not a Documentary
      Letter of Credit.

     

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    “Stock”
      means shares of capital stock (whether denominated as common stock or preferred
      stock), beneficial, partnership or membership interests, participations or
      other
      equivalents (regardless of how designated) of or in a corporation, partnership,
      limited liability company or equivalent entity, whether voting or
      non-voting.

     

    “Stock
      Equivalents” means all securities convertible into or exchangeable for
      Stock and all warrants, options or other rights to purchase or subscribe for
      any
      Stock, whether or not presently convertible, exchangeable or
      exercisable.

     

    “Subordinated
      Note Default” means, at any time, prior to the consummation of the Debt
      Swap, any failure to make payments of interest on the Existing Subordinated
      Notes when due and payable.

     

    “Subsidiary”
      means, with respect to any Person, any corporation, partnership, limited
      liability company or other business entity of which an aggregate of 50% or
      more
      of the outstanding Voting Stock is, at the time, directly or indirectly, owned
      or controlled by such Person or one or more Subsidiaries of such
      Person.

     

    “Substitute
      Institution” has the meaning specified in Section 2.17
      (Substitution of Lenders).

     

    “Substitution
      Notice” has the meaning specified in Section 2.17 (Substitution of
      Lenders).

     

    “Supplemental
      Fee Letter” shall mean the letter dated as of the date hereof, addressed to
      the Borrower from Citigroup Global Markets Inc. and accepted by the Borrower
      on
      the date hereof, with respect to certain fees to be paid from time to time
      to
      the Administrative Agent.

     

    “Swing
      Loan” has the meaning specified in Section 2.3 (Swing
      Loans).

     

    “Swing
      Loan Lender” means Citicorp or any other Lender that becomes the
      Administrative Agent or agrees, with the approval of the Administrative Agent
      and the Borrower, to act as the Swing Loan Lender hereunder, in each case in
      its
      capacity as the Swing Loan Lender hereunder.

     

    “Swing
      Loan Request” has the meaning specified in Section 2.3(b) (Swing
      Loans).

     

    “Swing
      Loan Sublimit” means, at any time, the lesser of (a) the aggregate amount
      of the Tranche A Commitments in effect at such time and (b)
      $15,000,000.

     

    “Syndication
      Agent” has the meaning specified in the preamble to this
      Agreement.

     

    “Tax
      Affiliate” means, with respect to any Person, (a) any Subsidiary of
      such Person and (b) any Affiliate of such Person with which such Person
      files or is eligible to file consolidated, combined or unitary tax
      returns.

     

    “Tax
      Returns” has the meaning specified in Section 4.8(a)
      (Taxes).

     

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    “Taxes”
      has the meaning specified in Section 2.16(a) (Taxes).

     

    “Test
      Period” means the four consecutive Fiscal Quarters then last ended (taken
      as one accounting period).

     

    “Title IV
      Plan” means a pension plan, other than a Multiemployer Plan, covered by
      Title IV of ERISA and to which the Borrower any of its Subsidiaries or any
      ERISA Affiliate has any obligation or liability, contingent or
      otherwise.

     

    “Tranche
      A Available Credit” means, at any time, (a) the lesser of (i) the
      then effective Tranche A Commitments and (ii) the Tranche A Borrowing Base
      at such time, minus (b) the sum of (i) the aggregate Tranche
      A Outstandings at such time and (ii) any Availability Reserve in effect at
      such time.

     

    “Tranche
      A Borrowing Base” means, at any time, (a) the sum of (i) up to 85% of the
      face amount of all Eligible Receivables of each Loan Party (calculated net
      of
      all finance charges, late fees and other fees that are unearned, sales, excise
      or similar taxes, and credits or allowances granted at such time), (ii) the
      lesser of (A) up to 85% of the Orderly Liquidation Value Percentage of the
      value
      of Eligible Finished Goods of each Loan Party (valued either at cost on a
      first-in, first-out basis or on a unit basis, as determined by the
      Administrative Agent in its sole discretion) and (B) up to 75% of the value
      of
      Eligible Finished Goods of each Loan Party (valued either at cost on a first-in,
      first-out basis or on a unit basis, as determined by the Administrative Agent
      in
      its sole discretion), (iii) the lesser of (A) up to 85% of the Orderly
      Liquidation Value Percentage of the value of Eligible Raw Materials of each
      Loan
      Party (valued at cost on a first-in, first-out basis) and (B) up to 75% of
      the
      value of Eligible Raw Materials of each Loan Party (valued at cost on a
      first-in, first-out basis), (iv) the lesser of (A) up to 85% of the Orderly
      Liquidation Value Percentage of the value of Eligible Work in Process of each
      Loan Party (valued at cost on a first-in, first-out basis) and (B) up to 75%
      of
      the value of Work in Process of each Loan Party (valued at cost on a first-in,
      first-out basis) and (v) up to 10% of the value of Eligible Supplies/Packaging
      of each Loan Party (valued at cost on a first-in, first-out basis),
minus (b) the sum of (i) any Eligibility Reserve then in effect in
      respect of any the foregoing, (ii) any Secured Hedging Reserve then in effect,
      and (iii) the Borrowing Base Reserve, provided, however, that
      if as a result of subtracting the sum contemplated by clauses (ii) or
(iii) of this clause (b), the Tranche A Borrowing Base would
      be an amount less than zero, that portion of such sum shall instead be
      subtracted from the Tranche A-1 Borrowing Base as provided for in the definition
      of “Tranche A-1 Borrowing Base”.

     

    “Tranche
      A Commitment” means, with respect to each Tranche A Lender, the commitment
      of such Tranche A Lender to make Tranche A Loans and acquire interests in other
      Tranche A Outstandings in the aggregate principal amount outstanding not to
      exceed the amount set forth opposite such Lender’s name on Schedule I
      (Revolving Credit Commitments) under the caption “Tranche A Commitment,” as
      amended to reflect each Assignment and Acceptance executed by such Tranche
      A
      Lender and as such amount may be reduced pursuant to this Agreement, and each
      additional commitment by a Tranche A Lender.  The original principal
      amount of the aggregate Tranche A Commitments of the Tranche A Lenders is
      $100,000,000.

     

    “Tranche
      A Facility” means the Tranche A Commitments and the provisions herein
      related to the Tranche A Loans, Swing Loans and Letters of Credit.

     

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    “Tranche
      A Loan” has the meaning given to such term in Section 2.1(a)(The
      Revolving Credit Commitments).

     

    “Tranche
      A Lender” means any Lender holding a Tranche A Commitment or any Tranche A
      Loans.

     

    “Tranche
      A Outstandings” means, at any particular time, the sum of (a) the principal
      amount of Tranche A Loans outstanding at such time, (b) the Letter of Credit
      Obligations outstanding at such time and (c) the principal amount of Swing
      Loans
      outstanding at such time.

     

    “Tranche
      A-1 Available Credit” means, at any time, (a) the lesser of
      (i) the then effective Tranche A-1 Commitments and (ii) the Tranche
      A-1 Borrowing Base at such time, minus (b) the aggregate Tranche
      A-1 Outstandings at such time.

     

    “Tranche
      A-1 Borrowing Base” means, at any time, (a) the sum of (i) up to 10% of the
      face amount of all Eligible Receivables of each Loan Party (calculated net
      of
      all finance charges, late fees and other fees that are unearned, sales, excise
      or similar taxes, and credits or allowances granted at such time), (ii) the
      lesser of (A) up to 10% of the Orderly Liquidation Value Percentage of the
      value
      of Eligible Finished Goods of each Loan Party (valued either at cost on a
      first-in, first-out basis or on a unit basis, as determined by the
      Administrative Agent in its sole discretion) and (B) up to 10% of the value
      of
      Eligible Finished Goods of each Loan Party (valued either at cost on a first-in,
      first-out basis or on a unit basis, as determined by the Administrative Agent
      in
      its sole discretion), (iii) the lesser of (A) up to 10% of the Orderly
      Liquidation Value Percentage of the value of Eligible Raw Materials of each
      Loan
      Party (valued at cost on a first-in, first-out basis) and (B) up to 10% of
      the
      value of Eligible Raw Materials of each Loan Party (valued at cost on a
      first-in, first-out basis) and (iv) the lesser of (A) up to 10% of the Orderly
      Liquidation Value Percentage of the value of Eligible Work in Process of each
      Loan Party (valued at cost on a first-in, first-out basis) and (B) up to 10%
      of
      the value of Work in Process of each Loan Party (valued at cost on a first-in,
      first-out basis), minus (b) the sum of (i) any Eligibility Reserve then
      in effect in respect of any the foregoing (without duplication of any
      Eligibility Reserve taken in respect of the Tranche A Borrowing Base) and (ii)
      to the extent not applied to reduce the Tranche A Borrowing Base, (A) any
      Secured Hedging Reserve then in effect and (B) the Borrowing Base
      Reserve.

     

    “Tranche
      A-1 Commitment” means, with respect to each Tranche A-1 Lender, the
      commitment of such Tranche A-1 Lender to make Tranche A-1 Loans and acquire
      interests in other Tranche A-1 Outstandings in the aggregate principal amount
      outstanding not to exceed the amount set forth opposite such Lender’s name on
Schedule I (Revolving Credit Commitments) under the caption “Tranche
      A-1 Commitment,” as amended to reflect each Assignment and Acceptance executed
      by such Tranche A-1 Lender and as such amount may be reduced pursuant to this
      Agreement, and each additional commitment by a Tranche A-1
      Lender.  The original principal amount of the aggregate Tranche A-1
      Commitments of the Tranche A-1 Lenders is $10,000,000.

     

    “Tranche
      A-1 Facility” means the Tranche A-1 Commitments and the provisions herein
      related to the Tranche A-1 Loans.

     

    “Tranche
      A-1 Loan” has the meaning given to such term in Section 2.1(a)(The
      Revolving Credit Commitments).

     

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    “Tranche
      A-1 Lender” means any Lender holding a Tranche A-1 Commitment or any
      Tranche A-1 Loans.

     

    “Tranche
      A-1 Outstandings” means, at any particular time, the aggregate principal
      amount of Tranche A-1 Loans outstanding at such time.

     

    “UCC”
      has the meaning specified in the Security Agreement.

     

    “Unaudited
      Financial Statements” has the meaning specified in Section 4.4(b)
      (Financial Information).

     

    “Unused
      Commitment Fee” means the sum of the Unused Tranche A Commitment Fee and
      the Unused Tranche A-1 Commitment Fee.

     

    “Unused
      Tranche A Commitment Fee” has the meaning specified in
Section 2.12(a) (Fees).

     

    “Unused
      Tranche A-1 Commitment Fee” has the meaning specified in
Section 2.12(a) (Fees).

     

    “U.S.
      Lender” means each Lender or Issuer (or the Administrative Agent) that is a
      Domestic Person.

     

    “Voting
      Stock” means Stock of any Person having ordinary power to vote in the
      election of members of the board of directors, managers, trustees or other
      controlling Persons, of such Person (irrespective of whether, at the time,
      Stock
      of any other class or classes of such entity shall have or might have voting
      power by reason of the happening of any contingency).

     

    “Weekly
      Cash Flow Certificate” has the meaning given to such term in Section
      5.1(e) (Information).

     

    “Wholly-Owned
      Subsidiary” of any Person means any Subsidiary of such Person, all of the
      Stock of which (other than director’s qualifying shares, as may be required by
      law) is owned by such Person, either directly or indirectly through one or
      more
      Wholly-Owned Subsidiaries of such Person.

     

    Section
      1.2  Computation
      of Time Periods

     

    In
      this
      Agreement, in the computation of periods of time from a specified date to a
      later specified date, the word “from” means “from and
      including” and the words “to” and “until” each mean
“to but excluding” and the word “through” means “to and
      including.”

     

    Section
      1.3  Accounting
      Terms and Principles

     

    (a)  Except
      as
      set forth below, all accounting terms not specifically defined herein shall
      be
      construed in conformity with GAAP and all accounting determinations required
      to
      be made pursuant hereto shall, unless expressly otherwise provided herein,
      be
      made in conformity with GAAP.

     

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    (b)  If
      any
      change in the accounting principles used in the preparation of the most recent
      Financial Statements referred to in Section 5.1 (Information) is
      hereafter required or permitted by the rules, regulations, pronouncements and
      opinions of the Financial Accounting Standards Board or the American Institute
      of Certified Public Accountants (or any successors thereto) and such change
      is
      adopted by the Borrower with the agreement of the Borrower’s Accountants and
      results in a change in any of the calculations required by Article VIII
      (Negative Covenants) that would not have resulted had such accounting
      change not occurred, the parties hereto agree to enter into negotiations in
      order to amend such provisions so as to equitably reflect such change such
      that
      the criteria for evaluating compliance with such covenants by the Borrower
      shall
      be the same after such change as if such change had not been made;
provided, however, that no change in GAAP that would affect a
      calculation that measures compliance with any covenant contained in
Article VIII (Negative Covenants) shall be given effect until such
      provisions are amended to reflect such changes in GAAP.

     

    Section
      1.4  Conversion
      of Foreign Currencies

     

    (a)  Dollar
      Equivalents.  The Administrative Agent shall determine the Dollar
      Equivalent of any amount as required hereby, and a determination thereof by
      the
      Administrative Agent shall be conclusive absent manifest error.  The
      Administrative Agent may, but shall not be obligated to, rely on any
      determination made by any Loan Party in any document delivered to the
      Administrative Agent.  The Administrative Agent may determine or
      redetermine the Dollar Equivalent of any amount on any date either in its own
      discretion or upon the request of any Lender or Issuer.

     

    (b)  Rounding-Off.  The
      Administrative Agent may set up appropriate rounding off mechanisms or otherwise
      round-off amounts hereunder to the nearest higher or lower amount in whole
      Dollar or cent to ensure amounts owing by any party hereunder or that otherwise
      need to be calculated or converted hereunder are expressed in whole Dollars
      or
      in whole cents, as may be necessary or appropriate.

     

    Section
      1.5  Certain
      Terms

     

    (a)  The
      terms
“herein,” “hereof”, “hereto” and “hereunder”
and similar terms refer to this Agreement
      as a whole and not to any particular
      Article, Section, subsection or clause in, this Agreement.

     

    (b)  Unless
      otherwise expressly indicated herein, (i) references in this Agreement to
      an Exhibit, Schedule, Article, Section, clause or sub-clause refer to the
      appropriate Exhibit or Schedule to, or Article, Section, clause or sub-clause
      in
      this Agreement and (ii) the words “above” and “below”,
      when following a reference to a clause or a sub-clause of any Loan Document,
      refer to a clause or sub-clause within, respectively, the same Section or
      clause.

     

    (c)  Each
      agreement defined in this Article I shall include all appendices,
      exhibits and schedules thereto.  Unless the prior written consent of
      the Requisite Lenders is required hereunder for an amendment, restatement,
      supplement or other modification to any such agreement and such consent is
      not
      obtained, references in this Agreement to such agreement shall be to such
      agreement as so amended, restated, supplemented or modified.

     

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    (d)  References
      in this Agreement to any statute shall be to such statute as amended or modified
      from time to time and to any successor legislation thereto, in each case as
      in
      effect at the time any such reference is operative.

     

    (e)  The
      term
“including” when used in any Loan Document means “including without
      limitation” except when used in the computation of time periods.

     

    (f)  The
      terms
“Lender,” “Issuer” and “Administrative Agent”
include, without limitation, their respective
      successors.

     

    (g)  Upon
      the
      appointment of any successor Administrative Agent pursuant to
Section 8.7 (Successor Administrative Agent), references to
      Citicorp in Section 8.4 (The Administrative Agent Individually)
      and to Citibank in the definitions of Base Rate, Dollar Equivalent and
      Eurodollar Rate shall be deemed to refer to the financial institution then
      acting as the Administrative Agent or one of its Affiliates if it so
      designates.

     

    ARTICLE
      II

     

    The
      Facility

     

    Section
      2.1  The
      Revolving Credit Commitments

     

    (a)  On
      the
      terms and subject to the conditions contained in this Agreement, (i) all
“Revolving Loans” under and as defined in the Existing Credit Agreement shall,
      on the Effective Date, be deemed to be Revolving Loans under this Agreement
      and,
      if applicable, shall have the same Interest Periods (it being understood that
      for purposes hereof, an amount of such Loans equal to the Maximum Tranche A-1
      Credit shall be deemed to be Tranche A-1 Loans hereunder, with any excess amount
      being deemed to be Tranche A Loans), (ii) each Tranche A Lender severally agrees
      to make loans in Dollars (each, a “Tranche A Loan”) to the Borrower
      from time to time on any Business Day during the period from the Effective
      Date
      until the Revolving Credit Termination Date in an aggregate principal amount
      at
      any time outstanding for all such loans by such Tranche A Lender not to exceed
      such Tranche A Lender’s Tranche A Commitment, provided,
however, that at no time shall any Tranche A Lender be obligated
      to
      make a Tranche A Loan in excess of such Tranche A Lender’s Ratable Portion of
      the Tranche A Available Credit and (iii) each Tranche A-1 Lender severally
      agrees to make loans in Dollars (each, a “Tranche A-1 Loan”) to the
      Borrower from time to time on any Business Day during the period from the
      Effective Date until the Revolving Credit Termination Date in an aggregate
      principal amount at any time outstanding for all such loans by such Tranche
      A-1
      Lender not to exceed such Tranche A-1 Lender’s Tranche A-1 Commitment,
provided, however that at no time shall any Tranche A-1 Lender be
      obligated to make a Tranche A-1 Loan in excess of such Tranche A-1 Lender’s
      Ratable Portion of the Tranche A-1 Available Credit.  Within the
      foregoing limits, amounts of Revolving Loans repaid may be reborrowed under
      this
Section 2.1.

     

    (b)  Notwithstanding
      anything to the contrary contained herein, all Revolving Loans shall be Tranche
      A-1 Loans until the Tranche A-1 Available Credit has been reduced to be
      zero.  If any Tranche A-1 Loan is prepaid in part pursuant to
Section 2.8 (Optional Prepayments) or Section 2.9 (Mandatory
      Prepayments), any Revolving 

     

     

    
      
        
        

      

      
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    Loans
      thereafter requested by the Borrower (or deemed to have been requested by the
      Borrower) shall be Tranche A-1 Loans until the Tranche A-1 Available Credit
      has
      been reduced to be zero.  Thereafter all Revolving Loans shall be
      Tranche A Loans.

     

    Section
      2.2  Borrowing
      Procedures

     

    (a)  Each
      Borrowing shall be made on notice given by the Borrower to the Administrative
      Agent not later than, (i) in the case of a Borrowing of Base Rate Loans, (x)
      during any Cash Dominion Period, 1:00 p.m. (New York time) on the Business
      Day
      of the proposed Borrowing or (y) otherwise, 11:00 a.m. (New York time) on the
      Business Day prior to the date of the proposed Borrowing and (ii) in the
      case of a Borrowing of Eurodollar Rate Loans, 11:00 a.m. (New York time) three
      Business Days prior to the date of the proposed Borrowing.  Each such
      notice shall be in substantially the form of Exhibit C (Form of Notice
      of Borrowing) (a “Notice of Borrowing”), specifying (A) the
      date of such proposed Borrowing, (B) the aggregate amount of such proposed
      Borrowing, (C) whether the Borrowing is to be a Tranche A Loan or a Tranche
      A-1 Loan, (D) whether any portion of the proposed Borrowing will be of Base
      Rate Loans or Eurodollar Rate Loans, (E) for each Eurodollar Rate Loan, the
      initial Interest Period or Interest Periods thereof and (F) the Tranche A
      Available Credit and the Tranche A-1 Available Credit (after giving effect
      to
      the proposed Borrowing).  The Revolving Loans shall be made as Base
      Rate Loans unless, subject to Section 2.14 (Special Provisions
      Governing Eurodollar Rate Loans), the Notice of Borrowing specifies that
      all or a portion thereof shall be Eurodollar Rate Loans; provided,
however, that (i) all Revolving Loans made on the Effective Date
      shall
      be Base Rate Loans and (ii) the Borrower shall not request, and the Tranche
      A
      Lenders shall be under no obligation to fund, any Tranche A Loan unless the
      Tranche A-1 Available Credit has been reduced to
      zero.  Notwithstanding anything to the contrary contained in
Section 2.3(a) (Swing Loans), if any Notice of Borrowing requests
      a Borrowing of Base Rate Loans and the Tranche A-1 Available Credit has been
      reduced to zero, the Administrative Agent may make a Swing Loan available to
      the
      Borrower in an aggregate amount not to exceed such proposed Borrowing, and
      the
      aggregate amount of the corresponding proposed Borrowing shall be reduced
      accordingly by the principal amount of such Swing Loan.  Except during
      any Cash Dominion Period, each Borrowing shall be in an aggregate amount of
      not
      less than $3,000,000 or an integral multiple of $1,000,000 in excess thereof
      for
      Eurodollar Rate Loans and $1,000,000 or an integral multiple of $1,000,000
      in
      excess thereof for Base Rate Loans

     

    (b)  The
      Administrative Agent shall give to each Lender prompt notice of the
      Administrative Agent’s receipt of a Notice of Borrowing and, if Eurodollar Rate
      Loans are properly requested in such Notice of Borrowing, the applicable
      interest rate determined pursuant to Section 2.14(a) (Determination of
      Interest Rate).  Each Tranche A Lender or Tranche A-1 Lender (as
      applicable) shall, before 11:00 a.m. (New York time) on the date of the
      proposed Borrowing, make available to the Administrative Agent at its address
      referred to in Section 9.8 (Notices, Etc.), in immediately
      available funds, such Lender’s Ratable Portion of such proposed
      Borrowing.  Upon fulfillment (or due waiver in accordance with
Section 9.1 (Amendments, Waivers, Etc.)) (i) on the Effective
      Date, of the applicable conditions set forth in Section 3.1 (Conditions
      Precedent to Effectiveness) and (ii) at any time (including the
      Effective Date), of the applicable conditions set forth in Section 3.2
      (Conditions Precedent to Each Loan and Letter of 

     

     

    
      
        
        

      

      
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    Credit),
      and after the Administrative Agent’s receipt of such funds, the Administrative
      Agent shall make such funds available to the Borrower.

     

    (c)  Unless
      the
      Administrative Agent shall have received notice from a Lender prior to the
      date
      of any proposed Borrowing of Tranche A Loans or Tranche A-1 Loans (as
      applicable) that such Lender will not make available to the Administrative
      Agent
      such Lender’s Ratable Portion of such Borrowing (or any portion thereof), the
      Administrative Agent may assume that such Lender has made such Ratable Portion
      available to the Administrative Agent on the date of such Borrowing in
      accordance with this Section 2.2 and the Administrative Agent may,
      in reliance upon such assumption, make available to the Borrower on such date
      a
      corresponding amount.  If and to the extent that such Lender shall not
      have so made such Ratable Portion available to the Administrative Agent, such
      Lender and the Borrower severally agree to repay to the Administrative Agent
      forthwith on demand such corresponding amount together with interest thereon,
      for each day from the date such amount is made available to the Borrower until
      the date such amount is repaid to the Administrative Agent, at (i) in the
      case of the Borrower, the interest rate applicable at the time to the Loans
      comprising such Borrowing and (ii) in the case of such Lender, the Federal
      Funds Rate for the first Business Day and thereafter at the interest rate
      applicable at the time to the Loans comprising such Borrowing.  If
      such Lender shall repay to the Administrative Agent such corresponding amount,
      such corresponding amount so repaid shall constitute such Lender’s Loan as part
      of such Borrowing for purposes of this Agreement.  If the Borrower
      shall repay to the Administrative Agent such corresponding amount, such payment
      shall not relieve such Lender of any obligation it may have hereunder to the
      Borrower.

     

    (d)  The
      failure of any Lender to make on the date specified any Revolving Loan or any
      payment required by it (such Lender being a “Non-Funding Lender”),
      including any payment in respect of its participation in Swing Loans and Letter
      of Credit Obligations, shall not relieve any other Lender of its obligation
      to
      make such Loan or payment on such date but no such other Lender shall be
      responsible for the failure of any Non-Funding Lender to make a Loan or payment
      required under this Agreement.

     

    Section
      2.3  Swing
      Loans

     

    (a)  On
      the
      terms and subject to the conditions contained in this Agreement, the Swing
      Loan
      Lender (i) if a Cash Dominion Period is not then in effect, may, in its sole
      discretion, and (ii) if a Cash Dominion Period is then in effect, shall, subject
      to the terms and conditions hereof, make, in Dollars, loans (each a “Swing
      Loan”) otherwise available to the Borrower under the Facility from time to
      time on any Business Day during the period from the Effective Date until the
      Revolving Credit Termination Date in an aggregate principal amount at any time
      outstanding (together with the aggregate outstanding principal amount of any
      other Loan made by the Swing Loan Lender hereunder in its capacity as a Lender
      or the Swing Loan Lender) not to exceed the Swing Loan Sublimit;
provided, however, that at no time shall the Swing Loan Lender
      make any Swing Loan to the extent that, after giving effect to such Swing Loan,
      the aggregate Tranche A Outstandings would exceed the Maximum Tranche A
      Credit.  Each Swing Loan shall be a Base Rate Loan and must be repaid
      in full upon any borrowing hereunder and shall in any event mature no later
      than
      the Revolving Credit Termination 

     

     

    
      
        
        

      

      
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    Date.  Within
      the limits set forth in the first sentence of this clause (a),
      amounts of Swing Loans repaid may be reborrowed under this
clause (a).

     

    (b)  In
      order
      to request a Swing Loan, the Borrower shall telecopy (or forward by electronic
      mail or similar means) to the Administrative Agent a duly completed request
      in
      substantially the form of Exhibit D (Form of Swing Loan Request),
      setting forth the requested amount and date of such Swing Loan (a “Swing
      Loan Request”), to be received by the Administrative Agent not later than
      1:00 p.m. (New York time) on the day of the proposed
      borrowing.  The Administrative Agent shall promptly notify the Swing
      Loan Lender of the details of the requested Swing Loan.  Subject to
      the terms of this Agreement, the Swing Loan Lender may make a Swing Loan
      available to the Administrative Agent and, in turn, the Administrative Agent
      shall make such amounts available to the Borrower on the date of the relevant
      Swing Loan Request. The Swing Loan Lender shall not make any Swing Loan in
      the
      period commencing on the first Business Day after it receives written notice
      from the Administrative Agent (including at the request of any Lender) that
      one
      or more of the conditions precedent contained in Section 3.2
      (Conditions Precedent to Each Loan and Letter of Credit) shall not on such
      date be satisfied, and ending when such conditions are satisfied.  The
      Swing Loan Lender shall not otherwise be required to determine that, or take
      notice whether, the conditions precedent set forth in Section 3.2
      (Conditions Precedent to Each Loan and Letter of Credit) have been
      satisfied in connection with the making of any Swing Loan.

     

    (c)  The
      Swing
      Loan Lender shall notify the Administrative Agent in writing (which writing
      may
      be a telecopy or electronic mail) weekly, by no later than 10:00 a.m. (New
      York time) on Thursday of each week (or if such day is not a Business Day,
      the
      next succeeding Business Day), of the aggregate principal amount of its Swing
      Loans then outstanding, and each Tranche A Lender shall pay its Ratable Portion
      of such amount to the Administrative Agent, for the account of the Swing Loan
      Lender, in the manner provided in clause (e) below.

     

    (d)  The
      Swing
      Loan Lender may demand at any time that each Tranche A Lender pay to the
      Administrative Agent, for the account of the Swing Loan Lender, in the manner
      provided in clause (e) below, such Tranche A Lender’s Ratable
      Portion of all or a portion of the outstanding Swing Loans, which demand shall
      be made through the Administrative Agent, shall be in writing and shall specify
      the outstanding principal amount of Swing Loans demanded to be
      paid.

     

    (e)  The
      Administrative Agent shall forward each notice referred to in
clause (c) above and each demand referred to in clause
      (d) above to each Tranche A Lender on the day such notice or such demand
      is
      received by the Administrative Agent (except that any such notice or demand
      received by the Administrative Agent after 2:00 p.m. (New York time) on any
      Business Day or any such notice or demand received on a day that is not a
      Business Day shall not be required to be forwarded to the Tranche A Lenders
      by
      the Administrative Agent until the next succeeding Business Day), together
      with
      a statement prepared by the Administrative Agent specifying the amount of each
      Tranche A Lender’s Ratable Portion of the aggregate principal amount of the
      Swing Loans stated to be outstanding in such notice or demanded to be paid
      pursuant to such demand, and, notwithstanding whether or not the conditions
      precedent set forth in Sections 3.2 (Conditions Precedent to Each Loan and
      Letter of Credit) and 2.1 (The Revolving Credit Commitments) shall
      have been satisfied (which conditions precedent the 

     

     

    
      
        
        

      

      
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    Lenders
      hereby irrevocably waive for purposes of this clause (e)), each Tranche
      A Lender shall, before 11:00 a.m. (New York time) on the Business Day next
      succeeding the date of such Lender’s receipt of such notice or demand, make
      available to the Administrative Agent, in immediately available funds, for
      the
      account of the Swing Loan Lender, the amount specified in such
      statement.  Upon such payment by a Tranche A Lender, such Tranche A
      Lender shall, except as provided in clause (f) below, be deemed to
      have made a Tranche A Loan to the Borrower.  The Administrative Agent
      shall use such funds to repay the Swing Loans to the Swing Loan
      Lender.  To the extent that any Tranche A Lender fails to make such
      payment available to the Administrative Agent for the account of the Swing
      Loan
      Lender, the Borrower shall repay such Swing Loan on demand.

     

    (f)  Upon
      the
      occurrence of a Default under Section 7.1(f) (Events of Default),
      each Tranche A Lender shall acquire, without recourse or warranty, an undivided
      participation in each Swing Loan otherwise required to be repaid by such Tranche
      A Lender pursuant to clause (e) above, which participation shall
      be in a principal amount equal to such Tranche A Lender’s Ratable Portion of
      such Swing Loan, by paying to the Swing Loan Lender on the date on which such
      Tranche A Lender would otherwise have been required to make a payment in respect
      of such Swing Loan pursuant to clause (e) above, in immediately
      available funds, an amount equal to such Lender’s Ratable Portion of such Swing
      Loan.  If all or part of such amount is not in fact made available by
      such Tranche A Lender to the Swing Loan Lender on such date, the Swing Loan
      Lender shall be entitled to recover any such unpaid amount on demand from such
      Tranche A Lender together with interest accrued from such date at the Federal
      Funds Rate for the first Business Day after such payment was due and thereafter
      at the rate of interest then applicable to Base Rate Loans.

     

    (g)  From
      and
      after the date on which any Tranche A Lender (i) is deemed to have made a
      Tranche A Loan pursuant to clause (e) above with respect to any
      Swing Loan or (ii) purchases an undivided participation interest in a Swing
      Loan pursuant to clause (f) above, the Swing Loan Lender shall
      promptly distribute to such Tranche A Lender such Tranche A Lender’s Ratable
      Portion of all payments of principal of and interest received by the Swing
      Loan
      Lender on account of such Swing Loan other than those received from a Lender
      pursuant to clause (e) or (f) above.

     

    Section
      2.4  Letters
      of Credit

     

    (a)  On
      the
      terms and subject to the conditions contained in this Agreement, (x) all
      outstanding “Letters of Credit” under and as defined in the Existing Credit
      Agreement shall, on the Effective Date, be deemed to be Letters of Credit
      hereunder and (y) each Issuer agrees to Issue at the request of the Borrower
      and
      for the account of the Borrower one or more Letters of Credit from time to
      time
      on any Business Day during the period commencing on the Effective Date and
      ending on the earlier of the Revolving Credit Termination Date and 30 days
      prior
      to the Scheduled Termination Date; provided, however, that no
      Issuer shall be under any obligation to Issue (and, upon the occurrence of
      any
      of the events described in clauses (ii), (iii),
(iv), (v) and (vi)(A) below, shall not Issue)
      any
      Letter of Credit upon the occurrence of any of the following:

     

    (i)  any
      order,
      judgment or decree of any Governmental Authority or arbitrator shall purport
      by
      its terms to enjoin or restrain such Issuer from Issuing such 

     

     

    
      
        
        

      

      
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    Letter
      of
      Credit or any Requirement of Law applicable to such Issuer or any request or
      directive (whether or not having the force of law) from any Governmental
      Authority with jurisdiction over such Issuer shall prohibit, or request that
      such Issuer refrain from, the Issuance of letters of credit generally or such
      Letter of Credit in particular or shall impose upon such Issuer with respect
      to
      such Letter of Credit any restriction or reserve or capital requirement (for
      which such Issuer is not otherwise compensated) not in effect on the Initial
      Closing Date or result in any unreimbursed loss, cost or expense that was not
      applicable, in effect or known to such Issuer as of the Initial Closing Date
      and
      that such Issuer in good faith deems material to it;

     

    (ii)  such
      Issuer shall have received any written notice of the type described in
clause (d) below;

     

    (iii)  after
      giving effect to the Issuance of such Letter of Credit, the aggregate Tranche
      A
      Outstandings would exceed the Maximum Tranche A Credit at such
      time;

     

    (iv)  after
      giving effect to the Issuance of such Letter of Credit, the sum of (A)  the
      Letter of Credit Undrawn Amounts at such time and (B)  the Reimbursement
      Obligations at such time exceeds the Letter of Credit Sublimit;

     

    (v)  such
      Letter of Credit is requested to be denominated in any currency other than
      Dollars; or

     

    (vi)  (A) any
      fees due in connection with a requested Issuance have not been paid,
      (B) such Letter of Credit is requested to be Issued in a form that is not
      acceptable to such Issuer or (C) the Issuer for such Letter of Credit shall
      not have received, in form and substance reasonably acceptable to it and, if
      applicable, duly executed by such Borrower, applications, agreements and other
      documentation (collectively, a “Letter of Credit Reimbursement
      Agreement”) such Issuer generally employs in the ordinary course of its
      business for the Issuance of letters of credit of the type of such Letter of
      Credit.

     

    None
      of
      the Lenders (other than the Issuers in their capacity as such) shall have any
      obligation to Issue any Letter of Credit.

     

    (b)  In
      no
      event shall (i) any Letter of Credit be issued within 30 days of the Scheduled
      Termination Date or (ii) the expiration date of any Letter of Credit be more
      than one year after the date of issuance thereof; provided,
however, that any Letter of Credit with a term less than or equal
      to
      one year may provide for the renewal thereof for additional periods less than
      or
      equal to one year, as long as, on or before the expiration of each such term
      and
      each such period, the Borrower and the Issuer of such Letter or Credit shall
      have the option to prevent such renewal; and provided,
further, that, for any Letter of Credit having an expiration date
      after
      the Scheduled Termination Date, the Borrower agrees to deliver to the
      Administrative Agent on or prior to the Scheduled Termination Date a letter
      of
      credit or letters of credit in form and substance acceptable to the
      Administrative Agent and the applicable Issuer and issued by a bank acceptable
      to the Administrative Agent and the applicable Issuer, in each case in their
      sole discretion, and/or cash collateral in an amount equal to 105% of the
      maximum drawable amount of any such Letter of Credit.

     

     

    
      
        
        

      

      
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    (c)  In
      connection with the Issuance of each Letter of Credit, the Borrower shall give
      the relevant Issuer and the Administrative Agent at least two Business Days’
prior written notice, in substantially the form of Exhibit E (Form of
      Letter of Credit Request) (or in such other written or electronic form as
      is acceptable to the Issuer), of the requested Issuance of such Letter of Credit
      (a “Letter of Credit Request”).  Such notice shall be
      irrevocable and shall specify the Issuer of such Letter of Credit, the face
      amount of the Letter of Credit requested (which shall not be less than
      $100,000), the date of Issuance of such requested Letter of Credit, the date
      on
      which such Letter of Credit is to expire (which date shall be a Business Day)
      and, in the case of an issuance, the Person for whose benefit the requested
      Letter of Credit is to be issued.  Such notice, to be effective, must
      be received by the relevant Issuer and the Administrative Agent not later than
      11:00 a.m. (New York time) on the second Business Day prior to the
      requested Issuance of such Letter of Credit.

     

    (d)  Subject
      to
      the satisfaction of the conditions set forth in this Section 2.4,
      the relevant Issuer shall, on the requested date, Issue a Letter of Credit
      on
      behalf of the Borrower in accordance with such Issuer’s usual and customary
      business practices.  No Issuer shall Issue any Letter of Credit in the
      period commencing on the first Business Day after it receives written notice
      from any Lender that one or more of the conditions precedent contained in
Section 3.2 (Conditions Precedent to Each Loan and Letter of
      Credit) or clause (a) above (other than those conditions set
      forth in clauses (a)(i), (a)(vi)(B) and (C)
      above and, to the extent such clause relates to fees owing to the Issuer of
      such
      Letter of Credit and its Affiliates, clause (a)(vi)(A)
      above) are not on such date satisfied or duly waived and ending when such
      conditions are satisfied or duly waived.  No Issuer shall otherwise be
      required to determine that, or take notice whether, the conditions precedent
      set
      forth in Section 3.2 (Conditions Precedent to Each Loan and Letter of
      Credit) have been satisfied in connection with the Issuance of any Letter
      of Credit.

     

    (e)  The
      Borrower agrees that, if requested by the Issuer of any Letter of Credit, it
      shall execute a Letter of Credit Reimbursement Agreement in respect to any
      Letter of Credit Issued hereunder.  In the event of any conflict
      between the terms of any Letter of Credit Reimbursement Agreement and this
      Agreement, the terms of this Agreement shall govern.

     

    (f)  Each
      Issuer shall comply with the following:

     

    (i)  give
      the
      Administrative Agent written notice (or telephonic notice confirmed promptly
      thereafter in writing), which writing may be a telecopy or electronic mail,
      of
      the Issuance of any Letter of Credit Issued by it, of all drawings under any
      Letter of Credit Issued by it and of the payment (or the failure to pay when
      due) by the Borrower of any Reimbursement Obligation when due (which notice
      the
      Administrative Agent shall promptly transmit by telecopy, electronic mail or
      similar transmission to each Tranche A Lender);

     

    (ii)  upon
      the
      request of any Tranche A Lender, furnish to such Tranche A Lender copies of
      any
      Letter of Credit Reimbursement Agreement to which such Issuer is a party and
      such other documentation as may reasonably be requested by such Tranche A
      Lender; and

     

     

    
      
        
        

      

      
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    (iii)  no
      later
      than 10 Business Days following the last day of each calendar month, provide
      to
      the Administrative Agent (and the Administrative Agent shall provide a copy
      to
      each Tranche A Lender requesting the same) and the Borrower separate schedules
      for Documentary Letters of Credit and Standby Letters of Credit issued by it,
      in
      form and substance reasonably satisfactory to the Administrative Agent, setting
      forth the aggregate Letter of Credit Obligations, in each case outstanding
      at
      the end of each month, and any information requested by the Borrower or the
      Administrative Agent relating thereto.

     

    (g)  Immediately
      upon the issuance by an Issuer of a Letter of Credit in accordance with the
      terms and conditions of this Agreement, such Issuer shall be deemed to have
      sold
      and transferred to each Tranche A Lender, and each Tranche A Lender shall be
      deemed irrevocably and unconditionally to have purchased and received from
      such
      Issuer, without recourse or warranty, an undivided interest and participation,
      to the extent of such Tranche A Lender’s Ratable Portion, in such Letter of
      Credit and the obligations of the Borrower with respect thereto (including
      all
      Letter of Credit Obligations with respect thereto) and any security therefor
      and
      guaranty pertaining thereto.

     

    (h)  The
      Borrower agrees to pay to the Issuer of any Letter of Credit the amount of
      all
      Reimbursement Obligations owing to such Issuer under any Letter of Credit issued
      for its account no later than the date that is the next succeeding Business
      Day
      after the Borrower receives written notice from such Issuer that payment has
      been made under such Letter of Credit (the “Reimbursement Date”),
      irrespective of any claim, set-off, defense or other right that the Borrower
      may
      have at any time against such Issuer or any other Person.  In the
      event that any Issuer makes any payment under any Letter of Credit and the
      Borrower shall not have repaid such amount to such Issuer pursuant to this
      clause (h) or any such payment by the Borrower is rescinded or set
      aside for any reason, such Reimbursement Obligation shall be payable on demand
      with interest thereon computed (i) from the date on which such
      Reimbursement Obligation arose to the Reimbursement Date, at the rate of
      interest applicable during such period to Revolving Loans that are Base Rate
      Loans and (ii) from the Reimbursement Date until the date of repayment in
      full, at the rate of interest applicable during such period to past due
      Revolving Loans that are Base Rate Loans, and such Issuer shall promptly notify
      the Administrative Agent, which shall promptly notify each Tranche A Lender
      of
      such failure, and each Tranche A Lender shall promptly and unconditionally
      pay
      to the Administrative Agent for the account of such Issuer the amount of such
      Tranche A Lender’s Ratable Portion of such payment in immediately available
      Dollars.  If the Administrative Agent so notifies such Tranche A
      Lender prior to 11:00 a.m. (New York time) on any Business Day, such
      Tranche A Lender shall make available to the Administrative Agent for the
      account of such Issuer its Ratable Portion of the amount of such payment on
      such
      Business Day in immediately available funds.  Upon such payment by a
      Tranche A Lender, such Tranche A Lender shall, except during the continuance
      of
      a Default or Event of Default under Section 7.1(f) (Events of
      Default) and notwithstanding whether or not the conditions precedent set
      forth in Section 3.2 (Conditions Precedent to Each Loan and Letter of
      Credit) shall have been satisfied (which conditions precedent the Tranche A
      Lenders hereby irrevocably waive for purposes of this clause (h)), be
      deemed to have made a Tranche A Loan to the Borrower in the principal amount
      of
      such payment.  Whenever any Issuer receives from the Borrower a
      payment of a 

     

     

    
      
        
        

      

      
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    Reimbursement
      Obligation as to which the Administrative Agent has received for the account
      of
      such Issuer any payment from a Tranche A Lender pursuant to this
clause (h), such Issuer shall pay over to the Administrative Agent
      any amount received in excess of such Reimbursement Obligation and, upon receipt
      of such amount, the Administrative Agent shall promptly pay over to each Lender,
      in immediately available funds, an amount equal to such Tranche A Lender’s
      Ratable Portion of the amount of such payment adjusted, if necessary, to reflect
      the respective amounts the Tranche A Lenders have paid in respect of such
      Reimbursement Obligation.

     

    (i)  If
      and to
      the extent such Tranche A Lender shall not have so made its Ratable Portion
      of
      the amount of the payment required by clause (h) above available
      to the Administrative Agent for the account of such Issuer, such Tranche A
      Lender agrees to pay to the Administrative Agent for the account of such Issuer
      forthwith on demand any such unpaid amount together with interest thereon,
      for
      the first Business Day after payment was first due at the Federal Funds Rate
      and, thereafter, until such amount is repaid to the Administrative Agent for
      the
      account of such Issuer, at a rate per annum equal to the rate applicable to
      Base
      Rate Loans under the Facility.

     

    (j)  The
      Borrower’s obligation to pay each Reimbursement Obligation and the obligations
      of the Tranche A Lenders to make payments to the Administrative Agent for the
      account of the Issuers with respect to Letters of Credit shall be absolute,
      unconditional and irrevocable and shall be performed strictly in accordance
      with
      the terms of this Agreement, under any and all circumstances whatsoever,
      including the occurrence of any Default or Event of Default, and irrespective
      of
      any of the following:

     

    (i)  any
      lack
      of validity or enforceability of any Letter of Credit or any Loan Document,
      or
      any term or provision therein;

     

    (ii)  any
      amendment or waiver of or any consent to departure from all or any of the
      provisions of any Letter of Credit or any Loan Document;

     

    (iii)  the
      existence of any claim, set off, defense or other right that the Borrower,
      any
      other party guaranteeing, or otherwise obligated with, the Borrower, any
      Subsidiary or other Affiliate thereof or any other Person may at any time have
      against the beneficiary under any Letter of Credit, any Issuer, the
      Administrative Agent or any Tranche A Lender or any other Person, whether in
      connection with this Agreement, any other Loan Document or any other related
      or
      unrelated agreement or transaction;

     

    (iv)  any
      draft
      or other document presented under a Letter of Credit proving to be forged,
      fraudulent, invalid or insufficient in any respect or any statement therein
      being untrue or inaccurate in any respect;

     

    (v)  payment
      by
      the Issuer under a Letter of Credit against presentation of a draft or other
      document that does not comply with the terms of such Letter of Credit;
      and

     

    (vi)  any
      other
      act or omission to act or delay of any kind of the Issuer, the Tranche A
      Lenders, the Administrative Agent or any other Person or any other event or
      circumstance whatsoever, whether or not similar to any of the foregoing, that
      

     

     

    
      
        
        

      

      
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    might,
      but
      for the provisions of this Section 2.4, constitute a legal or
      equitable discharge of the Borrower’s obligations hereunder.

     

    Any
      action
      taken or omitted to be taken by the relevant Issuer under or in connection
      with
      any Letter of Credit, if taken or omitted in the absence of gross negligence
      or
      willful misconduct, shall not result in any liability of such Issuer to the
      Borrower or any Tranche A Lender.  In determining whether drafts and
      other documents presented under a Letter of Credit comply with the terms
      thereof, the Issuer may accept documents that appear on their face to be in
      order, without responsibility for further investigation, regardless of any
      notice or information to the contrary and, in making any payment under any
      Letter of Credit, the Issuer may rely exclusively on the documents presented
      to
      it under such Letter of Credit as to any and all matters set forth therein,
      including reliance on the amount of any draft presented under such Letter of
      Credit, whether or not the amount due to the beneficiary thereunder equals
      the
      amount of such draft and whether or not any document presented pursuant to
      such
      Letter of Credit proves to be insufficient in any respect, if such document
      on
      its face appears to be in order, and whether or not any other statement or
      any
      other document presented pursuant to such Letter of Credit proves to be forged
      or invalid or any statement therein proves to be inaccurate or untrue in any
      respect whatsoever, and any noncompliance in any immaterial respect of the
      documents presented under such Letter of Credit with the terms thereof shall,
      in
      each case, be deemed not to constitute willful misconduct or gross negligence
      of
      the Issuer.

     

    Section
      2.5  Reduction
      and Termination of the Revolving Credit Commitments

     

    (a)  The
      Borrower may, upon at least three Business Days’ prior notice to the
      Administrative Agent, terminate in whole or reduce in part ratably the unused
      portions of the Tranche A Commitments; provided, that no such
      termination or reduction shall be permitted if, after giving effect thereto
      and
      to any prepayments of the Tranche A Loans made on the effective date thereof,
      the Tranche A Outstandings would exceed the Maximum Tranche A
      Credit.  Any such reduction shall be in an amount of not less than
      $5,000,000 or an integral multiple of $1,000,000 in excess thereof;
provided, however, that unless the Tranche A Commitments are
      being terminated in whole, the aggregate Tranche A Commitments shall not be
      reduced to an amount less than $30,000,000.  All outstanding Tranche A
      Commitments shall terminate on the Revolving Credit Termination
      Date.

     

    (b)  The
      Borrower may, upon at least three Business Days’ prior notice to the
      Administrative Agent, terminate in whole or reduce in part ratably the unused
      portions of the Tranche A-1 Commitments; provided, that no such
      termination or reduction shall be permitted if (i) any Tranche A Commitments
      remain outstanding or (ii) after giving effect thereto and to any prepayments
      of
      the Tranche A-1 Loans made on the effective date thereof, the aggregate
      principal amount of Tranche A-1 Loans then outstanding, would exceed the Maximum
      Tranche A-1 Credit.  Any such reduction shall be in an amount of not
      less than $5,000,000 or an integral multiple of $1,000,000 in excess
      thereof.  All outstanding Tranche A-1 Commitments shall terminate on
      the Revolving Credit Termination Date.

     

     

    
      
        
        

      

      
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    Section
      2.6  Repayment
      of Loans

     

    The
      Borrower promises to repay the entire unpaid principal amount of the Revolving
      Loans and the Swing Loans on the Scheduled Termination Date or earlier, if
      otherwise required by the terms hereof.

     

    Section
      2.7  Evidence
      of Debt

     

    (a)  Each
      Lender shall maintain in accordance with its usual practice an account or
      accounts evidencing Indebtedness of the Borrower to such Lender resulting from
      each Loan of such Lender from time to time, including the amounts of principal
      and interest payable and paid to such Lender from time to time under this
      Agreement.  In addition, each Lender having sold a participation in
      any of its Obligations or having identified a Special Purpose Vehicle as such
      to
      the Administrative Agent, acting as agent of the Borrower solely for this
      purpose and for tax purposes, shall establish and maintain at its address
      referred to in Section 9.8 (Notices, Etc.) a record of ownership in
      which such Lender shall register by book entry (i) the name and address of
      each
      such participant and Special Purpose Vehicle (and each change thereto, whether
      by assignment or otherwise) and (ii) the rights, interest or obligation of
      each
      such participant and Special Purpose Vehicle in any Obligation, in any Revolving
      Credit Commitment and in any right to receive payment hereunder.

     

    (b)  (i)           The
      Administrative Agent, acting as agent of the Borrower solely for this purpose
      and for tax purposes, shall establish and maintain at its address referred
      to in
Section 9.8 (Notices, Etc.) a record of ownership (the
“Register”) in which the Administrative Agent agrees to register
      by
      book entry the Administrative Agent’s, each Lender’s and each Issuer’s interest
      in each Loan, each Letter of Credit and each Reimbursement Obligation, and
      in
      the right to receive any payments hereunder and any assignment of any such
      interest or rights.  In addition, the Administrative Agent, acting as
      agent of the Borrower solely for this purpose and for tax purposes, shall
      establish and maintain accounts in the Register in accordance with its usual
      practice in which it shall record (i) the names and addresses of the Lenders
      and
      the Issuers, (ii) the Revolving Credit Commitments of each Lender from time
      to
      time, (iii) the amount of each Loan made and, if a Eurodollar Rate Loan, the
      Interest Period applicable thereto, (iv) the amount of any drawn Letters of
      Credit, (v) the amount of any principal or interest due and payable, and paid,
      by the Borrower to, or for the account of, each Lender hereunder, (vi) the
      amount that is due and payable, and paid, by the Borrower to, or for the account
      of, each Issuer, including the amount of Letter of Credit Obligations
      (specifying the amount of any Reimbursement Obligations) due and payable to
      an
      Issuer, and (vii) the amount of any sum received by the Administrative Agent
      hereunder from the Borrower, whether such sum constitutes principal or interest
      (and the type of Loan to which it applies), fees, expenses or other amounts
      due
      under the Loan Documents and each Lender’s and Issuer’s, as the case may be,
      share thereof, if applicable.

     

    (ii)  Notwithstanding
      anything to the contrary contained in this Agreement, the Loans (including
      the
      Revolving Credit Notes evidencing such Loans) and the drawn Letters of Credit
      are registered obligations and the right, title, and interest of the Lenders
      and
      the Issuers and their assignees in and to such Loans or drawn Letters of Credit,
      as the case may be, shall be transferable only upon notation of such transfer
      in
      the Register.  A Revolving Credit Note shall only evidence the
      Lender’s or a registered 

     

     

    
      
        
        

      

      
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    assignee’s
      right, title and interest in and to the related Loan, and in no event is any
      such Revolving Credit Note to be considered a bearer instrument or
      obligation.  This Section 2.7(b) and Section 9.2
      (Assignments and Participations) shall be construed so that the Loans and
      drawn Letters of Credit are at all times maintained in “registered
      form” within the meaning of Sections 163(f), 871(h)(2)(B) and 881(c)(2)(B)
      of the Code and any related regulations (or any successor provisions of the
      Code
      or such regulations).

     

    (c)  The
      entries made in the Register and in the accounts therein maintained pursuant
      to
clauses (a) and (b) above shall, to the extent permitted by
      applicable law, be prima facie evidence of the existence and amounts of
      the obligations recorded therein; provided, however, that the
      failure of any Lender or the Administrative Agent to maintain such accounts
      or
      any error therein shall not in any manner affect the obligations of the Borrower
      to repay the Loans in accordance with their terms.  In addition, the
      Loan Parties, the Administrative Agent, the Lenders and the Issuers shall treat
      each Person whose name is recorded in the Register as a Lender or as an Issuer,
      as applicable, for all purposes of this Agreement.  The information
      contained in the Register with respect to any Lender or Issuer shall be
      available for inspection by the Borrower, the Administrative Agent, such Lender
      or such Issuer at any reasonable time and from time to time upon reasonable
      prior notice.

     

    (d)  Notwithstanding
      any other provision of the Agreement, in the event that any Lender requests
      that
      the Borrower execute and deliver a promissory note or notes payable to such
      Lender in order to evidence the Indebtedness owing to such Lender by the
      Borrower hereunder, the Borrower shall promptly execute and deliver a Revolving
      Credit Note or Revolving Credit Notes to such Lender evidencing the Revolving
      Loans of such Lender, substantially in the form of Exhibit B (Form of
      Revolving Credit Note).

     

    Section
      2.8  Optional
      Prepayments

     

    (a)  The
      Borrower may prepay the outstanding principal amount of the Tranche A Loans
      and
      Swing Loans in whole or in part at any time; provided, however, that if
      any prepayment of any Eurodollar Rate Loan is made by the Borrower other than
      on
      the last day of an Interest Period for such Loan, the Borrower shall also pay
      any amount owing pursuant to Section 2.14(e) (Breakage
      Costs).  Other than during a Cash Dominion Period, partial
      prepayments pursuant to this clause (a) shall be in multiples of
      $1,000,000 (except that notwithstanding the requirement of payment in such
      multiples, any Tranche A Loan (including Swing Loans) may be paid in its
      entirety).

     

    (b)  So
      long as
      no Tranche A Loans or Swing Loans are outstanding, the Borrower may prepay
      the
      outstanding principal amount of the Tranche A-1 Loans in whole or in part at
      any
      time; provided, however, that if any prepayment of any Eurodollar Rate
      Loan is made by the Borrower other than on the last day of an Interest Period
      for such Loan, the Borrower shall also pay any amount owing pursuant to
Section 2.14(e) (Breakage Costs).  Other than during a
      Cash Dominion Period, partial prepayments pursuant to this clause (b)
      shall be in multiples of $1,000,000 (except that notwithstanding the requirement
      of payment in such multiples, any Tranche A-1 Loan may be paid in its
      entirety).

     

     

    
      
        
        

      

      
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    Section
      2.9  Mandatory
      Prepayments

     

    (a)  Upon
      receipt by the Borrower or any of its Subsidiaries of Net Cash Proceeds arising
      from an Asset Sale or Property Loss Event with respect to Collateral, the
      Borrower shall immediately prepay the Loans (or provide cash collateral in
      respect of Letters of Credit) in an amount equal to 100% of such Net Cash
      Proceeds.  Upon receipt by the Borrower or any of its Subsidiaries of
      Net Cash Proceeds arising from an Equity Issuance or Debt Issuance, the Borrower
      shall immediately prepay the Loans (or provide cash collateral in respect of
      Letters of Credit) in an amount equal to 100% of such Net Cash
      Proceeds.  Any such mandatory prepayment pursuant to this clause (a)
      shall be applied in accordance with clause (b) below.

     

    (b)  Subject
      to
      (i) the provisions of Section 2.13(g) (Payments and Computations)
      and (ii) the provisions of clause (d) below, any
      prepayments made by the Borrower required to be applied in accordance with
      this
clause (b) (excluding any prepayments of the Tranche A-1 Loans
      required by clause (c) below) shall be applied as follows:
first, to repay the outstanding principal balance of the Swing
      Loans
      until such Swing Loans shall have been repaid in full; second, to repay
      the outstanding principal balance of the Tranche A Loans until such Tranche
      A
      Loans shall have been paid in full; third, to provide cash collateral
      for any Letter of Credit Obligations in an amount equal to 105% of such Letter
      of Credit Obligations in the manner set forth in Section 7.3 (Actions
      in Respect of Letters of Credit) until all such Letter of Credit
      Obligations have been fully cash collateralized in the manner set forth therein;
      provided, however, no cash collateral shall be required to be
      applied in respect of any Letter of Credit Obligation unless at the time of
      the
      receipt of the applicable Net Cash Proceeds, a Cash Dominion Period shall be
      in
      effect or a Default or Event of Default shall have occurred and be continuing
      or
      would result therefrom; and fourth, to repay the outstanding principal
      balance of the Tranche A-1 Loans until such Tranche A-1 Loans shall have been
      paid in full.  If subsequent to providing cash collateral for any
      Letter of Credit Obligation pursuant to this clause (b), no Cash
      Dominion Period shall be in effect and no Default or Event of Default shall
      have
      occurred and be continuing, then such cash collateral shall be released to
      the
      Borrower.  No repayment of Revolving Loans and Swing Loans required to
      be made pursuant to this clause (b) shall result in a permanent
      reduction of the Revolving Credit Commitments.

     

    (c)  If
      at any
      time, the aggregate principal amount of Tranche A Outstandings exceeds the
      aggregate Maximum Tranche A Credit at such time, the Borrower shall forthwith
      prepay the Swing Loans first, and then the Tranche A Loans then outstanding
      in
      an amount equal to such excess.  If any such excess remains after
      repayment in full of the aggregate outstanding Swing Loans and Tranche A Loans,
      as applicable, the Borrower shall provide cash collateral for the Letter of
      Credit Obligations in the manner set forth in Section 7.3 (Actions in
      Respect of Letters of Credit) in an amount equal to 105% of such
      excess.  Notwithstanding anything herein to the contrary with respect
      to the order of payment, if at any time the aggregate principal amount of
      Tranche A-1 Outstandings exceeds the aggregate Maximum Tranche A-1 Credit at
      such time, the Borrower shall forthwith prepay the Tranche A-1 Loans then
      outstanding in an amount equal to such excess.  If subsequent to
      making the payments (including the provision of cash collateral) contemplated
      by
      this clause (c), the Maximum Tranche A Credit exceeds the aggregate
      principal amount of Tranche A Outstandings at such time 

     

     

    
      
        
        

      

      
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    and
      no
      Default or Event of Default shall have occurred and be continuing, then any
      excess cash collateral shall be released to the Borrower.

     

    (d)  The
      Borrower hereby irrevocably waives the right to direct, during a Cash Dominion
      Period or if a Default or an Event of Default has occurred and is continuing,
      the application of all funds in the Cash Collateral Account and agrees that
      the
      Administrative Agent may and, upon the written direction of the Requisite
      Lenders given at any time during such Cash Dominion Period or after the
      occurrence and during the continuance of a Default or an Event of Default,
      shall
      (i) deliver a Blockage Notice to each Deposit Account Bank for each Approved
      Deposit Account and (ii) except as provided in Section 2.13(g) (Payments and
      Computations) and clause (b) above, apply all payments in respect
      of any Obligations and all available funds in the Cash Collateral Account on
      a
      daily basis as follows: first, to repay the outstanding principal
      amount of the Swing Loans until such Swing Loans have been repaid in full;
      second, to repay the outstanding principal balance of the Tranche A
      Loans until such Tranche A Loans shall have been repaid in full; third,
      to provide cash collateral for any Letter of Credit Obligations in an amount
      equal to 105% of such Letter of Credit Obligations in the manner set forth
      in
Section 7.3 (Actions in Respect of Letters of Credit) until all
      such Letter of Credit Obligations have been fully cash collateralized in the
      manner set forth therein, fourth, to repay the outstanding principal
      balance of the Tranche A-1 Loans until such Tranche A-1 Loans shall have been
      repaid in full; and fifth to any other Obligation then due and
      payable.  The Administrative Agent agrees so to apply such funds and
      the Borrower consents to such application.  Notwithstanding the
      foregoing, unless a Cash Dominion Period is in effect or a Default or Event
      of
      Default has occurred and is continuing, any funds on deposit in the Cash
      Collateral Account may be paid at the written direction of the Borrower (or,
      in
      the absence of such direction, to the Borrower or another Person lawfully
      entitled thereto); provided, however, that in the event the
      Revolving Credit Outstandings exceed $40,000,000 at any time, all available
      funds in excess of $20,000,000 in the Cash Collateral Account or in any Approved
      Deposit Account or Control Account shall be applied on a daily basis as provided
      in first through fourth above (and, if in an Approved Deposit
      Account or Control Account, the Borrower shall cause such excess to be delivered
      to the Administrative Agent for application).

     

    Section
      2.10  Interest

     

    (a)  Rate
      of Interest.  All Loans and the outstanding amount of all other
      Obligations (other than pursuant to Hedging Contracts that are Loan Documents,
      to the extent such Hedging Contracts provide for the accrual of interest on
      unpaid obligations) shall bear interest, in the case of Loans, on the unpaid
      principal amount thereof from the date such Loans are made and, in the case
      of
      such other Obligations, from the date such other Obligations are due and payable
      until, in all cases, paid in full, except as otherwise provided in
clause (c) below, as follows:

     

    (i)  with
      respect to the Tranche A Facility, (A) if a Base Rate Loan or such other
      Obligation, at a rate per annum equal to the sum of (x) the Base
      Rate as in effect from time to time and (y) the Applicable Margin for Base
      Rate Loans that are Tranche A Loans; and (B) if a Eurodollar Rate Loan, at
      a
      rate per annum equal to the sum of (x) the Eurodollar Rate
      determined for the applicable Interest Period and (y) the Applicable Margin
      for Tranche A Loans in effect from time to time during such Eurodollar Interest
      Period.

     

    
      
        
        

      

      
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    (ii)  with
      respect to the Tranche A-1 Facility, (A) if a Base Rate Loan, at a rate per
      annum equal to the sum of (x) the Base Rate as in effect from time to
      time and (y) the Applicable Margin for Base Rate Loans that are Tranche A-1
      Loans; and (B) if a Eurodollar Rate Loan, at a rate per annum equal to
      the sum of (x) the Eurodollar Rate determined for the applicable Interest
      Period and (y) the Applicable Margin for Tranche A-1 Loans in effect from
      time to time during such Eurodollar Interest Period.

     

    (b)  Interest
      Payments.  (i) Interest accrued on each Base Rate Loan
      (other than Swing Loans) shall be payable in arrears (A) on the first
      Business Day of each calendar month, commencing on the first such day following
      the making of such Base Rate Loan and (B) if not previously paid in full,
      at maturity (whether by acceleration or otherwise) of such Base Rate Loan,
      (ii) interest accrued on Swing Loans shall be payable in arrears on the
      first Business Day of the immediately succeeding calendar month,
      (iii) interest accrued on each Eurodollar Rate Loan shall be payable in
      arrears (A) on the last day of each Interest Period applicable to such Loan
      and, if such Interest Period has a duration of more than one month, on the
      first
      Business Day of each calendar month during such Interest Period, (B) upon
      the payment or prepayment thereof in full or in part and (C) if not
      previously paid in full, at maturity (whether by acceleration or otherwise)
      of
      such Eurodollar Rate Loan and (iv) interest accrued on the amount of all
      other Obligations shall be payable on demand from and after the time such
      Obligation becomes due and payable (whether by acceleration or
      otherwise).

     

    (c)  Default
      Interest.  Notwithstanding the rates of interest specified in
      clause (a) above or elsewhere herein, effective immediately upon the
      occurrence of an Event of Default and for as long thereafter as such Event
      of
      Default shall be continuing, the principal balance of all Loans and the amount
      of all other Obligations then due and payable shall bear interest at a rate
      that
      is two percent per annum in excess of the rate of interest otherwise applicable
      to such Loans or other Obligations from time to time.  Such interest
      shall be payable on the date that would otherwise be applicable to such interest
      pursuant to clause (b) above or otherwise on demand.

     

    Section
      2.11  Conversion/Continuation
      Option

     

    (a)  The
      Borrower may elect (i) at any time on any Business Day, to convert Base
      Rate Loans (other than Swing Loans) or any portion thereof to Eurodollar Rate
      Loans and (ii) at the end of any applicable Interest Period, to convert
      Eurodollar Rate Loans or any portion thereof into Base Rate Loans or to continue
      such Eurodollar Rate Loans or any portion thereof for an additional Interest
      Period; provided, however, that the aggregate amount of the
      Eurodollar Loans for each Interest Period must be in the amount of at least
      $ 3,000,000 or an integral multiple of $1,000,000 in excess
      thereof.  Each conversion or continuation shall be allocated among the
      Tranche A Loans or Tranche A-1 Loans, as applicable, of each Lender in
      accordance with such Lender’s Ratable Portion.  Each such election
      shall be in substantially the form of Exhibit F (Form of Notice of
      Conversion or Continuation) (a “Notice of Conversion or
      Continuation”) and shall be made by giving the Administrative Agent at
      least three Business Days’ prior written notice specifying (A) the amount
      and type of Revolving Loan being converted or continued, (B) in the case of
      a conversion to or a continuation of Eurodollar Rate Loans, the applicable
      Interest Period and (C) in the case of a conversion, the date of such
      conversion.

     

    
      
        
        

      

      
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    (b)  The
      Administrative Agent shall promptly notify each Lender of its receipt of a
      Notice of Conversion or Continuation and of the options selected
      therein.  Notwithstanding the foregoing, no conversion in whole or in
      part of Base Rate Loans to Eurodollar Rate Loans and no continuation in whole
      or
      in part of Eurodollar Rate Loans upon the expiration of any applicable Interest
      Period shall be permitted at any time at which (A) a Default or an Event of
      Default shall have occurred and be continuing or (B) the continuation of,
      or conversion into, a Eurodollar Rate Loan would violate any provision of
Section 2.14 (Special Provisions Governing Eurodollar Rate
      Loans).  If, within the time period required under the terms of
      this Section 2.11, the Administrative Agent does not receive a
      Notice of Conversion or Continuation from the Borrower containing a permitted
      election to continue any Eurodollar Rate Loans for an additional Interest Period
      or to convert any such Loans, then, upon the expiration of the applicable
      Interest Period, such Loans shall be automatically converted to Base Rate
      Loans.  Each Notice of Conversion or Continuation shall be
      irrevocable.

     

    Section
      2.12  Fees

     

    (a)  Unused
      Commitment Fee.  The Borrower agrees to pay in immediately
      available Dollars: (a) to each Tranche A Lender a commitment fee on the actual
      daily amount by which the Revolving Credit Commitment of such Tranche A Lender
      exceeds such Tranche A Lender’s Ratable Portion of the sum of (i) the
      aggregate outstanding principal amount of Tranche A Loans and (ii) the
      outstanding amount of the aggregate Letter of Credit Obligations (the
“Unused Tranche A Commitment Fee”) from the Effective Date through the
      Revolving Credit Termination Date at 0.375% per annum, payable in arrears
      (A) on the first Business Day of each calendar month, commencing on the
      first such Business Day following the Effective Date and (B) on the
      Revolving Credit Termination Date and (b) to each Tranche A-1 Lender a
      commitment fee on the actual daily amount by which the Revolving Credit
      Commitment of such Tranche A-1 Lender exceeds such Tranche A-1 Lender’s Ratable
      Portion of the aggregate outstanding principal amount of Tranche A-1 Loans
      (the
“Unused Tranche A-1 Commitment Fee”) from the Effective Date through
      the Revolving Credit Termination Date at 0.375% per annum, payable in arrears
      (i) on the first Business Day of each calendar month, commencing on the
      first such Business Day following the Effective Date and (ii) on the
      Revolving Credit Termination Date.

     

    (b)  Effective
      Date Commitment Fee. The Borrower agrees to pay in immediately available
      Dollars to each Lender an upfront commitment fee equal to 0.15% of the aggregate
      amount of each such Lender’s Ratable Portion of the Revolving Credit Commitments
      at the Effective Date (the “Effective Date Commitment Fee”), payable on
      the Effective Date.

     

    (c)  Debt
      Swap Commitment Fee. The Borrower agrees to pay in immediately available
      Dollars to each Lender a fee equal to 0.85% of the aggregate amount of each
      such
      Lender’s Ratable Portion of the Revolving Credit Commitments at the Effective
      Date (the “Debt Swap Commitment Fee”), payable on the date upon which
      the Debt Swap is consummated.

     

    (d)  Letter
      of Credit Fees.  The Borrower agrees to pay the following amounts
      with respect to Letters of Credit issued by any Issuer:

     

    
      
        
        

      

      
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    (i)  to
      the
      Administrative Agent for the account of each Issuer of a Letter of Credit,
      with
      respect to each Letter of Credit issued by such Issuer, an issuance fee equal
      to
      0.25% per annum of the maximum undrawn face amount of such Letter of Credit,
      payable in arrears (A) on the first Business Day of each calendar month,
      commencing on the first such Business Day following the issuance of such Letter
      of Credit and (B) on the Revolving Credit Termination Date;

     

    (ii)  to
      the
      Administrative Agent for the ratable benefit of the Tranche A Lenders, with
      respect to each Letter of Credit, a fee accruing in Dollars at a rate per annum
      equal to the Applicable Margin for Eurodollar Rate Loans that are Tranche A
      Loans on the maximum undrawn face amount of such Letter of Credit, payable
      in
      arrears (A) on the first Business Day of each calendar month, commencing on
      the first such Business Day following the issuance of such Letter of Credit
      and
      (B) on the Revolving Credit Termination Date; provided,
however, that during the continuance of an Event of Default, such
      fee
      shall be increased by two percent per annum (instead of, and not in addition
      to,
      any increase pursuant to Section 2.10(c) (Interest) and shall be
      payable on demand; and

     

    (iii)  to
      the
      Issuer of any Letter of Credit, with respect to the issuance, amendment or
      transfer of each Letter of Credit and each drawing made thereunder, documentary
      and processing charges in accordance with such Issuer’s standard schedule for
      such charges in effect at the time of issuance, amendment, transfer or drawing,
      as the case may be.

     

    (e)  Additional
      Fees.  The Borrower has agreed to pay to the Administrative Agent
      and the Arranger additional fees, the amount and dates of payment of which
      are
      embodied in the Fee Letter and the Supplemental Fee Letter.

     

    Section
      2.13  Payments
      and Computations

     

    (a)  The
      Borrower shall make each payment hereunder (including fees and expenses) not
      later than 11:00 a.m. (New York time) on the day when due, in Dollars to
      the Administrative Agent at its address referred to in Section 9.8
      (Notices, Etc.) in immediately available funds without set-off or
      counterclaim.  The Administrative Agent shall promptly thereafter
      cause to be distributed immediately available funds relating to the payment
      of
      principal, interest or fees to the Lenders, in accordance with the application
      of payments set forth in clause (f) or (g) below, as
      applicable, for the account of their respective Applicable Lending Offices;
      provided, however, that amounts payable pursuant to
Section 2.15 (Capital Adequacy), Section 2.16
      (Taxes) or Section 2.14(c) or (d) (Special Provisions
      Governing Eurodollar Rate Loans) shall be paid only to the affected Lender
      or Lenders and amounts payable with respect to Swing Loans shall be paid only
      to
      the Swing Loan Lender.  Payments received by the Administrative Agent
      after 11:00 a.m. (New York time) shall be deemed to be received on the next
      Business Day.

     

    (b)  All
      computations of interest and of fees shall be made by the Administrative Agent
      on the basis of a year of 360 days (or 365/366 days in the case of Obligations
      bearing interest at the Base Rate), in each case for the actual number of days
      (including the first day but excluding the last day) occurring in the period
      for
      which such interest and fees are payable.  Each determination by the
      Administrative Agent of a rate 

     

     

    
      
        
        

      

      
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    of
      interest hereunder shall be conclusive and binding for all purposes, absent
      manifest error.

     

    (c)  Each
      payment by the Borrower of any Loan, Reimbursement Obligation (including
      interest or fees in respect thereof) and each reimbursement of various costs,
      expenses or other Obligation shall be made in Dollars.

     

    (d)  Whenever
      any payment hereunder shall be stated to be due on a day other than a Business
      Day, the due date for such payment shall be extended to the next succeeding
      Business Day, and such extension of time shall in such case be included in
      the
      computation of payment of interest or fees, as the case may be;
provided, however, that if such extension would cause payment
      of interest on or principal of any Eurodollar Rate Loan to be made in the next
      calendar month, such payment shall be made on the immediately preceding Business
      Day.  All repayments of any Revolving Loans under either Facility
      shall be applied as follows: first, to repay such Loans outstanding as
      Base Rate Loans and then, to repay such Loans outstanding as Eurodollar
      Rate Loans, with those Eurodollar Rate Loans having earlier expiring Eurodollar
      Interest Periods being repaid prior to those having later expiring Eurodollar
      Interest Periods.

     

    (e)  Unless
      the
      Administrative Agent shall have received notice from the Borrower to the Lenders
      prior to the date on which any payment is due hereunder that the Borrower will
      not make such payment in full, the Administrative Agent may assume that the
      Borrower has made such payment in full to the Administrative Agent on such
      date
      and the Administrative Agent may, in reliance upon such assumption, cause to
      be
      distributed to each Lender on such due date an amount equal to the amount then
      due such Lender.  If and to the extent that the Borrower shall not
      have made such payment in full to the Administrative Agent, each Lender shall
      repay to the Administrative Agent forthwith on demand such amount distributed
      to
      such Lender together with interest thereon (at the Federal Funds Rate for the
      first Business Day and thereafter at the rate applicable to Base Rate Loans)
      for
      each day from the date such amount is distributed to such Lender until the
      date
      such Lender repays such amount to the Administrative Agent.

     

    (f)  Except
      for
      payments and other amounts received by the Administrative Agent and applied
      in
      accordance with the provisions of clause (g) below (or required to be
      applied in accordance with Section 2.9(b) or (d) (Mandatory
      Prepayments)), all payments and any other amounts received by the
      Administrative Agent from or for the benefit of the Borrower shall be applied
      as
      follows: first, to pay principal of, and interest on, any portion of
      the Loans under either Facility that the Administrative Agent may have advanced
      pursuant to the express provisions of this Agreement on behalf of any Lender,
      for which the Administrative Agent has not then been reimbursed by such Lender
      or the Borrower; second, to repay the outstanding principal amount of
      the Swing Loans until such Swing Loans have been repaid in full; third,
      to repay the outstanding principal balance of the Tranche A Loans until such
      Tranche A Loans shall have been repaid in full; fourth, to repay the
      outstanding principal balance of the Tranche A-1 Loans until such Tranche A-1
      Loans shall have been repaid in full; and fifth to any other Obligation
      then due and payable.  Payments in respect of Swing Loans received by
      the Administrative Agent shall be distributed to the Swing Loan Lender; payments
      in respect of Revolving Loans under any Facility received by the Administrative
      Agent shall be distributed to each Lender in accordance with such Lender’s
      Ratable Portion of such Facility; and all payments of fees and all other

     

     

    
      
        
        

      

      
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    payments
      in respect of any other Obligation shall be allocated among such of the Lenders
      and Issuers as are entitled thereto and, for such payments allocated to the
      Lenders, in proportion to their respective Ratable Portions of such
      Facility.

     

    (g)  The
      Borrower hereby irrevocably waives the right to direct the application of any
      and all payments in respect of the Obligations and any proceeds of Collateral
      after the occurrence and during the continuance of an Event of Default and
      agrees that, notwithstanding the provisions of clauses (b) and
(d) of Section 2.9 (Mandatory Prepayments) and clause
      (f) above, the Administrative Agent (A) may, upon the written
      direction of the Requisite Lenders or (B) shall, upon the acceleration of
      the Obligations pursuant to Section 7.2 (Remedies), to the extent
      not already delivered, deliver a Blockage Notice to each Deposit Account Bank
      for each Approved Deposit Account and apply all payments in respect of any
      Obligations and all funds on deposit in any Cash Collateral Account and all
      other proceeds of Collateral in the following order:

     

    (i)  first,
      to pay interest on and then principal of any portion of the Loans that the
      Administrative Agent may have advanced on behalf of any Lender for which the
      Administrative Agent has not then been reimbursed by such Lender or the
      Borrower;

     

    (ii)  second,
      to pay Secured Obligations in respect of any expense reimbursements or
      indemnities then due the Agents and in respect of Cash Management Obligations
      then due to the Administrative Agent arising solely in connection with any
      deposit account or other depository arrangement provided by the Administrative
      Agent in connection with the Loan Documents;

     

    (iii)  third,
      to pay Secured Obligations in respect of any expense reimbursements or
      indemnities then due to the Lenders and the Issuers;

     

    (iv)  fourth,
      to pay Secured Obligations in respect of any fees then due to the Agents, the
      Lenders and the Issuers;

     

    (v)  fifth,
      to pay interest then due and payable in respect of the Loans and Reimbursement
      Obligations;

     

    (vi)  sixth,
      to pay or prepay principal amounts on the Tranche A Loans and Reimbursement
      Obligations, to provide cash collateral for outstanding Letter of Credit Undrawn
      Amounts in the manner described in Section 7.3 (Actions in Respect of
      Letters of Credit), and to pay amounts owing with respect to Hedging
      Contracts to the extent of any Secured Hedging Reserve applicable thereto,
      ratably to the aggregate principal amount of such Loans, Reimbursement
      Obligations and Letter of Credit Undrawn Amounts and Obligations owing with
      respect to such Hedging Contracts to the extent of such Secured Hedging
      Reserve;

     

    (vii)  seventh,
      to pay or prepay principal amounts on the Tranche A-1 Loans;

     

    (viii)  eighth,
      to the ratable payment of all other Secured Obligations; and

     

     

    
      
        
        

      

      
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    (ix)  ninth,
      any balance remaining after the payment in full in cash of amounts owing
      pursuant to clauses first  through seventh above shall be paid over to
      the Borrower or to whomever may be lawfully entitled to receive the
      same;

     

    provided,
      however, that if sufficient funds are not available to fund all payments to
      be made in respect of any Secured Obligation described in any of clauses
      (i), (ii), (iii), (iv), (v), (vi),
      (vii) and (viii) above the available funds being applied with
      respect to any such Secured Obligation (unless otherwise specified in such
      clause) shall be allocated to the payment of such Secured Obligation ratably,
      based on the proportion of the Administrative Agent’s and each Lender’s or
      Issuer’s interest in the aggregate outstanding Secured Obligations described in
      such clauses; provided, however, that payments that would
      otherwise be allocated to the Tranche A Lenders shall be allocated
first to repay Protective Advances and Swing Loans
prorata until such Protective Advances and Swing Loans
      are
      paid in full and then to repay the Tranche A Loans.  The order of
      priority set forth in clauses (i), (ii), (iii),
(iv), (v), (vi),(vii) and (viii)
      above may at any time and from time to time be changed by the agreement of
      all
      of the Lenders without necessity of notice to or consent of or approval by
      the
      Borrower, any Secured Party that is not a Lender or Issuer or by any other
      Person that is not a Lender or Issuer.  The order of priority set
      forth in clauses (i), (ii), (iii) and
(iv) above may be changed only with the
      prior written consent of the
      Administrative Agent in addition to that of all of the Lenders.

     

    (h)  At
      the
      option of the Administrative Agent, principal on the Swing Loans, Reimbursement
      Obligations, interest, fees, expenses and other sums due and payable in respect
      of the Revolving Loans and Protective Advances may be paid from the proceeds
      of
      Swing Loans or Revolving Loans.  The Borrower hereby authorizes the
      Swing Loan Lender to make such Swing Loans pursuant to Section 2.3(a)
      (Swing Loans) and the Lenders to make such Revolving Loans pursuant to
Section 2.2(a) (Borrowing Procedures) from time to time in the
      amounts of any and all principal payable with respect to the Swing Loans,
      Reimbursement Obligations, interest, fees, expenses and other sums payable
      in
      respect of the Revolving Loans and Protective Advances, and further authorizes
      the Administrative Agent to give the Lenders notice of any borrowing with
      respect to such Swing Loans and Revolving Loans and to distribute the proceeds
      of such Swing Loans and Revolving Loans to pay such amounts.  The
      Borrower agrees that all such Swing Loans and Revolving Loans so made shall
      be
      deemed to have been requested by it (irrespective of the satisfaction of the
      conditions in Section 3.2 (Conditions Precedent to Each Loan and Letter
      of Credit), which conditions the Lenders irrevocably waive for purposes of
      this clause (h)) and directs that all proceeds thereof shall be used to
      pay such amounts.

     

    Section
      2.14  Special
      Provisions Governing Eurodollar Rate Loans

     

    (a)  Determination
      of Interest Rate

     

    The
      Eurodollar Rate for each Interest Period for Eurodollar Rate Loans shall be
      determined by the Administrative Agent pursuant to the procedures set forth
      in
      the definition of “Eurodollar Rate.”  The Administrative
      Agent’s determination shall be presumed to be correct absent manifest error and
      shall be binding on the Borrower.

     

     

    
      
        
        

      

      
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    (b)  Interest
      Rate Unascertainable, Inadequate or Unfair

     

    In
      the
      event that (i) the Administrative Agent determines that adequate and fair
      means do not exist for ascertaining the applicable interest rates by reference
      to which the Eurodollar Rate then being determined is to be fixed or
      (ii) the Requisite Lenders notify the Administrative Agent that the
      Eurodollar Rate for any Interest Period will not adequately reflect the cost
      to
      the Lenders of making or maintaining such Loans for such Interest Period, the
      Administrative Agent shall forthwith so notify the Borrower and the Lenders,
      whereupon each Eurodollar Loan shall automatically, on the last day of the
      current Interest Period for such Loan, convert into a Base Rate Loan and the
      obligations of the Lenders to make Eurodollar Rate Loans or to convert Base
      Rate
      Loans into Eurodollar Rate Loans shall be suspended until the Administrative
      Agent shall notify the Borrower that the Requisite Lenders have determined
      that
      the circumstances causing such suspension no longer exist.

     

    (c)  Increased
      Costs

     

    If
      at any
      time any Lender determines that the introduction of, or any change in or in
      the
      interpretation of, any law, treaty or governmental rule, regulation or order
      (other than any change by way of imposition or increase of reserve requirements
      included in determining the Eurodollar Rate) or the compliance by such Lender
      with any guideline, request or directive from any central bank or other
      Governmental Authority (whether or not having the force of law), shall have
      the
      effect of increasing the cost to such Lender of agreeing to make or making,
      funding or maintaining any Eurodollar Rate Loans, then the Borrower shall from
      time to time, upon demand by such Lender (with a copy of such demand to the
      Administrative Agent), pay to the Administrative Agent for the account of such
      Lender additional amounts sufficient to compensate such Lender for such
      increased cost.  A certificate as to the amount of such increased
      cost, submitted to the Borrower and the Administrative Agent by such Lender,
      shall be conclusive and binding for all purposes, absent manifest
      error.

     

    (d)  Illegality

     

    Notwithstanding
      any other provision of this Agreement, if any Lender determines that the
      introduction of, or any change in or in the interpretation of, any law, treaty
      or governmental rule, regulation or order after the Initial Closing Date shall
      make it unlawful, or any central bank or other Governmental Authority shall
      assert that it is unlawful, for any Lender or its Eurodollar Lending Office
      to
      make Eurodollar Rate Loans or to continue to fund or maintain Eurodollar Rate
      Loans, then, on notice thereof and demand therefor by such Lender to the
      Borrower through the Administrative Agent, (i) the obligation of such
      Lender to make or to continue Eurodollar Rate Loans and to convert Base Rate
      Loans into Eurodollar Rate Loans shall be suspended, and each such Lender shall
      make a Base Rate Loan as part of any requested Borrowing of Eurodollar Rate
      Loans and (ii) if the affected Eurodollar Rate Loans are then outstanding,
      the Borrower shall immediately convert each such Loan into a Base Rate
      Loan.  If, at any time after a Lender gives notice under this
clause (d), such Lender determines that it may lawfully make
      Eurodollar Rate Loans, such Lender shall promptly give notice of that
      determination to the Borrower and the Administrative Agent, and the
      Administrative Agent shall promptly transmit the notice to each other
      Lender.  The Borrower’s right to request, and such Lender’s
      obligation, if any, to make Eurodollar Rate Loans shall thereupon be
      restored.

     

    
      
        
        

      

      
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    (e)  Breakage
      Costs

     

    In
      addition to all amounts required to be paid by the Borrower pursuant to
Section 2.10 (Interest), the Borrower shall compensate each
      Lender, upon demand, for all losses, expenses and liabilities (including any
      loss or expense incurred by reason of the liquidation or reemployment of
      deposits or other funds acquired by such Lender to fund or maintain such
      Lender’s Eurodollar Rate Loans to the Borrower but excluding any loss of the
      Applicable Margin on the relevant Loans) that such Lender may sustain
      (i) if for any reason (other than solely by reason of such Lender being a
      Non-Funding Lender) a proposed Borrowing, conversion into or continuation of
      Eurodollar Rate Loans does not occur on a date specified therefor in a Notice
      of
      Borrowing or a Notice of Conversion or Continuation given by the Borrower or
      in
      a telephonic request by it for borrowing or conversion or continuation or a
      successive Interest Period does not commence after notice therefor is given
      pursuant to Section 2.11 (Conversion/Continuation Option),
      (ii) if for any reason any Eurodollar Rate Loan is prepaid (including
      mandatorily pursuant to Section 2.9(a),(b) or (c)
      (Mandatory Prepayments) but excluding pursuant to Section 2.9(d))
      on a date that is not the last day of the applicable Interest Period,
      (iii) as a consequence of a required conversion of a Eurodollar Rate Loan
      to a Base Rate Loan as a result of any of the events indicated in
clause (d) above or (iv) as a consequence of any failure by
      the Borrower to repay Eurodollar Rate Loans when required by the terms
      hereof.  The Lender making demand for such compensation shall deliver
      to the Borrower concurrently with such demand a written statement as to such
      losses, expenses and liabilities, and this statement shall be conclusive as
      to
      the amount of compensation due to such Lender, absent manifest
      error.

     

    Section
      2.15  Capital
      Adequacy

     

    If
      at any
      time any Lender determines that (a) the adoption of, or any change in or in
      the interpretation of, any law, treaty or governmental rule, regulation or
      order
      after the Initial Closing Date regarding capital adequacy, (b) compliance
      with any such law, treaty, rule, regulation or order or (c) compliance with
      any guideline or request or directive from any central bank or other
      Governmental Authority (whether or not having the force of law) shall have
      the
      effect of reducing the rate of return on such Lender’s (or any corporation
      controlling such Lender’s) capital as a consequence of its obligations hereunder
      or under or in respect of any Letter of Credit to a level below that which
      such
      Lender or such corporation could have achieved but for such adoption, change,
      compliance or interpretation, then, upon demand from time to time by such Lender
      (with a copy of such demand to the Administrative Agent), the Borrower shall
      pay
      to the Administrative Agent for the account of such Lender, from time to time
      as
      specified by such Lender, additional amounts sufficient to compensate such
      Lender for such reduction.  A certificate as to such amounts submitted
      to the Borrower and the Administrative Agent by such Lender shall be conclusive
      and binding for all purposes absent manifest error.

     

    Section
      2.16  Taxes

     

    (a)  Except
      as
      otherwise provided in this Section 2.16, any and all payments by
      any Loan Party under each Loan Document shall be made free and clear of and
      without deduction for any and all present or future taxes, levies, imposts,
      deductions, charges or withholdings, and all liabilities with respect thereto,
      excluding (i) in the case of each Lender, each Issuer and the
      Administrative Agent (A) taxes measured by its net income, and franchise
      taxes imposed on it, and similar taxes imposed by the jurisdiction (or any
      political subdivision thereof) under the laws of which such Lender, such Issuer
      or the Administrative Agent (as the case may be) is organized and (B) any
      U.S. withholding 

     

     

    
      
        
        

      

      
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    taxes
      payable with respect to payments under the Loan Documents under laws (including
      any statute, treaty or regulation) in effect on the Effective Date (or, in
      the
      case of (x) an Eligible Assignee, the date of the Assignment and Acceptance,
      (y)
      a successor Administrative Agent, the date of the appointment of such
      Administrative Agent, and (z) a successor Issuer, the date such Issuer becomes
      an Issuer) applicable to such Lender, such Issuer or the Administrative Agent,
      as the case may be, but not excluding any U.S. withholding taxes payable as
      a
      result of any change in such laws occurring after the Effective Date (or the
      date of such Assignment and Acceptance or the date of such appointment of such
      Administrative Agent or the date such Issuer becomes an Issuer) and (ii) in
      the case of each Lender or each Issuer, taxes measured by its net income and
      franchise taxes imposed on it as a result of a present or former connection
      between such Lender or such Issuer (as the case may be) and the jurisdiction
      of
      the Governmental Authority imposing such tax or any taxing authority thereof
      or
      therein (all such non-excluded taxes, levies, imposts, deductions, charges,
      withholdings and liabilities being hereinafter referred to as
“Taxes”).  If any Taxes shall be required by law to be
      deducted from or in respect of any sum payable under any Loan Document to any
      Lender, any Issuer or the Administrative Agent (w) the sum payable shall be
      increased as may be necessary so that, after making all required deductions
      (including deductions applicable to additional sums payable under this
Section 2.16), such Lender, such Issuer or the Administrative
      Agent (as the case may be) receives an amount equal to the sum it would have
      received had no such deductions been made, (x) the relevant Loan Party
      shall make such deductions, (y) the relevant Loan Party shall pay the full
      amount deducted to the relevant taxing authority or other authority in
      accordance with applicable law and (z) the relevant Loan Party shall
      deliver to the Administrative Agent evidence of such payment.

     

    (b)  In
      addition, each Loan Party agrees to pay any present or future stamp or
      documentary taxes or any other excise or property taxes, charges or similar
      levies of the United States or any political subdivision thereof or any
      applicable foreign jurisdiction, and all liabilities with respect thereto,
      in
      each case arising from any payment made under any Loan Document or from the
      execution, delivery or registration of, or otherwise with respect to, any Loan
      Document (collectively, “Other Taxes”).

     

    (c)  Each
      Loan
      Party shall, jointly and severally, indemnify each Lender, each Issuer and
      the
      Administrative Agent for the full amount of Taxes and Other Taxes (including
      any
      Taxes and Other Taxes imposed by any jurisdiction on amounts payable under
      this
Section 2.16) paid by such Lender, such Issuer or the
      Administrative Agent (as the case may be) and any liability (including for
      penalties, interest and expenses) arising therefrom or with respect thereto,
      whether or not such Taxes or Other Taxes were correctly or legally
      asserted.  This indemnification shall be made within 30 days from the
      date such Lender, such Issuer or the Administrative Agent (as the case may
      be)
      makes written demand therefor.

     

    (d)  Within
      30
      days after the date of any payment of Taxes or Other Taxes by any Loan Party,
      the Borrower shall furnish to the Administrative Agent, at its address referred
      to in Section 9.8 (Notices, Etc.), the original or a certified
      copy of a receipt evidencing payment thereof.

     

    (e)  Without
      prejudice to the survival of any other agreement of any Loan Party hereunder
      or
      under the Guaranty, the agreements and obligations of such 

     

    
      
        
        

      

      
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    Loan
      Party
      contained in this Section 2.16 shall survive the payment in full
      of the Obligations.

     

    (f)  Each
      Non-U.S. Lender that is entitled to an exemption from U.S. withholding tax,
      or
      that is subject to such tax at a reduced rate under an applicable tax treaty,
      shall (v) on or prior to the Effective Date in the case of each Non-U.S.
      Lender that is a signatory hereto, (w) on or prior to the date of the
      Assignment and Acceptance pursuant to which such Non-U.S. Lender becomes a
      Lender, on or prior to the date a successor Issuer becomes an Issuer or on
      or
      prior to the date a successor Administrative Agent becomes the Administrative
      Agent, (x) on or prior to the date on which any such form or certification
      expires or becomes obsolete, (y) after the occurrence of any event
      requiring a change in the most recent form or certification previously delivered
      by it to the Borrower and the Administrative Agent, and (z) from time to
      time thereafter if requested by the Borrower or the Administrative Agent,
      provide the Administrative Agent and the Borrower with two completed originals
      of each of the following, as applicable:

     

    (i)  (A) Form
      W-8ECI (claiming exemption from U.S. withholding tax because the income is
      effectively connected with a U.S. trade or business) or any successor form,
      (B) Form W-8BEN (claiming exemption from, or a reduction of, U.S.
      withholding tax under an income tax treaty) or any successor form, (C) in
      the case of a Non-U.S. Lender claiming exemption under Sections 871(h) or
      881(c) of the Code, a Form W-8BEN (claiming exemption from U.S. withholding
      tax
      under the portfolio interest exemption) or any successor form or (D) any
      other applicable form, certificate or document prescribed by the IRS certifying
      as to such Non-U.S. Lender’s entitlement to such exemption from U.S. withholding
      tax or reduced rate with respect to all payments to be made to such Non-U.S.
      Lender under the Loan Documents.  Unless the Borrower and the
      Administrative Agent have received forms or other documents satisfactory to
      them
      indicating that payments under any Loan Document to or for a Non-U.S. Lender
      are
      not subject to U.S. withholding tax or are subject to such tax at a rate reduced
      by an applicable tax treaty, the Loan Parties and the Administrative Agent
      shall
      withhold amounts required to be withheld by applicable Requirements of Law
      from
      such payments at the applicable statutory rate.

     

    (ii)  Each
      U.S.
      Lender shall (v) on or prior to the Effective Date in the case of each U.S.
      Lender that is a signatory hereto, (w) on the date of the Assignment and
      Acceptance pursuant to which such U.S. Lender becomes a Lender, on or prior
      to
      the date a successor Issuer becomes an Issuer or on or prior to the date a
      successor Administrative Agent becomes the Administrative Agent hereunder,
      (x) on or prior to the date on which any such form or certification expires
      or becomes obsolete, (y) after the occurrence of any event requiring a
      change in the most recent form or certification previously delivered by it
      to
      the Borrower and the Administrative Agent and (z) from time to time if
      requested by the Borrower or the Administrative Agent, provide the
      Administrative Agent and the Borrower with two completed originals of Form
      W-9
      (certifying that such U.S. Lender is entitled to an exemption from U.S. backup
      withholding tax) or any successor form.  Solely for purposes of this
Section 2.16(f), a U.S. Lender shall not include a Lender, an
      Issuer or an Administrative Agent that may be treated as an exempt recipient
      based on the indicators described in Treasury Regulation section
      1.6049-4(c)(1)(ii).

     

    
      
        
        

      

      
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    (g)  Any
      Lender
      claiming any additional amounts payable pursuant to this
Section 2.16 shall use its reasonable efforts (consistent with its
      internal policies and Requirements of Law) to change the jurisdiction of its
      Applicable Lending Office if the making of such a change would avoid the need
      for, or reduce the amount of, any such additional amounts that would be payable
      or may thereafter accrue and would not, in the sole determination of such
      Lender, be otherwise disadvantageous to such Lender.

     

    Section
      2.17  Substitution
      of Lenders

     

    (a)  In
      the
      event that (i)(A) any Lender makes a claim under Section 2.14(c)
      (Increased Costs) or 2.15 (Capital Adequacy), (B) it becomes
      illegal for any Lender to continue to fund or make any Eurodollar Rate Loan
      and
      such Lender notifies the Borrower pursuant to Section 2.14(d)
      (Illegality), (C) any Loan Party is required to make any payment
      pursuant to Section 2.16 (Taxes) that is attributable to a
      particular Lender or (D) any Lender becomes a Non-Funding Lender,
      (ii) in the case of clause (i)(A) above, as a consequence of
      increased costs in respect of which such claim is made, the effective rate
      of
      interest payable to such Lender under this Agreement with respect to its Loans
      materially exceeds the effective average annual rate of interest payable to
      the
      Requisite Lenders under this Agreement and (iii) in the case of
clause (i)(A), (B) and (C) above, Lenders
      holding at least 75% of the Revolving Credit Commitments are not subject to
      such
      increased costs or illegality, payment or proceedings (any such Lender, an
      “Affected Lender”), the Borrower may substitute any Lender and, if
      reasonably acceptable to the Administrative Agent, any other Eligible Assignee
      (a “Substitute Institution”) for such Affected Lender hereunder, after
      delivery of a written notice (a “Substitution Notice”) by the Borrower
      to the Administrative Agent and the Affected Lender within a reasonable time
      (in
      any case not to exceed 90 days) following the occurrence of any of the events
      described in clause (i) above that the Borrower intends to make such
      substitution.

     

    (b)  If
      the
      Substitution Notice was properly issued under this Section 2.17,
      the Affected Lender shall sell, and the Substitute Institution shall purchase,
      all rights and claims of such Affected Lender under the Loan Documents, and
      the
      Substitute Institution shall assume, and the Affected Lender shall be relieved
      of, the Affected Lender’s Revolving Credit Commitments and all other prior
      unperformed obligations of the Affected Lender under the Loan Documents (other
      than in respect of any damages (which, pursuant to Section 9.5
      (Limitation of Liability), do not include exemplary or punitive damages, to
      the extent permitted by applicable law) in respect of any such unperformed
      obligations).  Such purchase and sale (and the corresponding
      assignment of all rights and claims hereunder) shall be recorded in the Register
      maintained by the Administrative Agent and shall be effective on (and not
      earlier than) the later of (i) the receipt by the Affected Lender of its
      Ratable Portion of the Revolving Credit Outstandings, together with any other
      Obligations owing to it, (ii) the receipt by the Administrative Agent of an
      agreement in form and substance satisfactory to it and the Borrower whereby
      the
      Substitute Institution shall agree to be bound by the terms hereof and
      (iii) the payment in full to the Affected Lender in cash of all fees,
      unreimbursed costs and expenses and indemnities accrued and unpaid through
      such
      effective date.  Upon the effectiveness of such sale, purchase and
      assumption, the Substitute Institution shall become a “Lender”
hereunder for all purposes of this Agreement having a Revolving Credit
      Commitment in the amount of such Affected Lender’s Revolving Credit

     

     

    
      
        
        

      

      
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    Commitment
      assumed by it and such Revolving Credit Commitment of the Affected Lender shall
      be terminated; provided, however, that all indemnities under
      the Loan Documents shall continue in favor of such Affected Lender.

     

    (c)  Each
      Lender agrees that, if it becomes an Affected Lender and its rights and claims
      are assigned hereunder to a Substitute Institution pursuant to this
Section 2.17, it shall execute and deliver to the Administrative
      Agent an Assignment and Acceptance to evidence such assignment, together with
      any Revolving Credit Note (if such Loans are evidenced by a Revolving Credit
      Note) evidencing the Loans subject to such Assignment and Acceptance;
provided, however, that the failure of any Affected Lender to
      execute an Assignment and Acceptance shall not render such assignment
      invalid.

     

    Section
      2.18  Maximum
      Revolving Credit Outstandings

     

    Notwithstanding
      anything in this Agreement to the contrary, prior to the consummation of the
      Debt Swap, the Revolving Credit Outstandings shall not exceed $95,000,000
      without the prior written consent of the Requisite Lenders.

     

    ARTICLE
      III

     

    Conditions
      to Loans and Letters of Credit

     

    Section
      3.1  Conditions
      Precedent to Effectiveness

     

    The
      effectiveness of this Agreement and the amendment and restatement of the
      Existing Credit Agreement, and the obligation of each Lender to make the Loans
      requested to be made by it on the Effective Date, are subject to the
      satisfaction or due waiver in accordance with Section 9.1 (Amendments,
      Waivers, Etc.) of each of the following conditions precedent (the date on
      which all of such conditions precedent shall have been satisfied or duly waived,
      the “Effective Date”):

     

    (a)  Certain
      Documents.  The Administrative Agent shall have received on or
      prior to the Effective Date each of the following, each dated the Effective
      Date, to the extent not delivered in connection with the Existing Credit
      Agreement unless otherwise requested by the Agents, in form and substance
      satisfactory to the Agents and in sufficient copies for each
      Lender:

     

    (i)  this
      Agreement, duly executed and delivered by the Borrower and, for the account
      of
      each Lender requesting the same, a Revolving Credit Note of the Borrower
      conforming to the requirements set forth herein;

     

    (ii)  the
      Reaffirmation Agreement, duly executed by the Borrower and each Guarantor party
      thereto, together with, to the extent not delivered in connection with the
      Existing Credit Agreement unless otherwise requested by the Administrative
      Agent, each of the following:

     

    (A)  evidence
      satisfactory to the Agents that, upon the filing and recording of instruments
      delivered on the Initial Closing Date or the Effective Date, as applicable,
      the
      Administrative Agent (for the benefit of the 

     

     

    
      
        
        

      

      
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    Secured
      Parties) shall have a valid and perfected first priority security interest
      in
      the Collateral, including (x) such documents duly executed by each Loan
      Party as the Administrative Agent may request with respect to the perfection
      of
      its security interests in the Collateral (including financing statements under
      the UCC, patent, trademark and copyright security agreements suitable for filing
      with the Patent and Trademark Office or the Copyright Office, as the case may
      be, and other applicable documents under the laws of any jurisdiction with
      respect to the perfection of Liens created by the Security Agreement) and
      (y) copies of UCC search reports as of a recent date prior to the Effective
      Date listing all effective financing statements that name any Loan Party as
      debtor, together with copies of such financing statements, none of which shall
      cover the Collateral, except for those that shall be terminated on the Effective
      Date or are otherwise permitted hereunder;

     

    (B)  all
      Deposit Account Control Agreements, duly executed by the corresponding Deposit
      Account Bank and Loan Party, that, in the reasonable judgment of the
      Administrative Agent, shall be required for the Loan Parties to comply with
      Section 5.11 (Control Accounts; Approved Deposit Accounts);
      and

     

    (C)  (1) Securities
      Account Control Agreements duly executed by the appropriate Loan Party and
      all
“securities intermediaries” (as defined in the UCC) with respect to all
      Securities Accounts and securities entitlements of the Borrower and each
      Guarantor that, in the reasonable judgment of the Administrative Agent, shall
      be
      required for the Loan Parties to comply with Section 5.11 (Control Accounts;
      Approved Deposit Accounts) and (2) commodity account control
      agreements duly executed by the appropriate Loan Party and all “commodities
      intermediaries” (as defined in the UCC) with respect to all commodities
      contracts and commodities accounts held by the Borrower and each
      Guarantor;

     

    (iii)  a
      favorable opinion of (A) Davis Polk & Wardwell, counsel to the Loan
      Parties, in substantially the form of Exhibit G (Form of Opinion of
      Counsel for the Loan Parties), addressed to the Agents, the Lenders and the
      Issuers,  (B) local counsel to the Loan Parties, addressed to the
      Agents, the Lenders and the Issuers and addressing such other matters as any
      Lender through the Administrative Agent may reasonably request;

     

    (iv)  a
      copy of
      the articles or certificate of incorporation (or equivalent Constituent
      Document) of each Loan Party, certified as of a recent date prior to the
      Effective Date by the Secretary of State of the state of organization of such
      Loan Party, together with certificates of such official attesting to the good
      standing of each such Loan Party;

     

    (v)  a
      certificate of the Secretary or an Assistant Secretary of each Loan Party
      certifying (A) the names and true signatures of each officer of such Loan
      Party that has been authorized to execute and deliver any Loan Document or
      other
      document required hereunder to be executed and delivered by or on behalf of
      such
      Loan Party, (B) the by-laws (or equivalent Constituent Document) of such
      Loan Party as in effect on the date of such certification, (C) the
      resolutions of such Loan Party’s Board of 

     

     

    
      
        
        

      

      
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    Directors
      (or equivalent governing body) approving and authorizing the execution, delivery
      and performance of this Agreement and the other Loan Documents to which it
      is a
      party and (D) that there have been no changes in the certificate of
      incorporation (or equivalent Constituent Document) of such Loan Party from
      the
      certificate of incorporation (or equivalent Constituent Document) delivered
      pursuant to clause (iv) above;

     

    (vi)  a
      certificate of a Responsible Officer to the effect that (A) the condition
      set forth in Section 3.2(b) (Conditions Precedent to Each Loan and
      Letter of Credit) has been satisfied, (B) no litigation has been
      commenced against any Loan Party or any of its Subsidiaries that would have
      a
      Material Adverse Effect;

     

    (vii)  evidence
      satisfactory to the Agents that the insurance policies required by Section
      5.3 (Maintenance of Property; Insurance) and any Collateral Document are in
      full force and effect as of the Effective Date, together with, unless otherwise
      agreed by the Agents, endorsements naming the Administrative Agent, on behalf
      of
      the Secured Parties, as an additional insured or loss payee under all insurance
      policies to be maintained with respect to the Collateral of the Borrower and
      each other Loan Party; and

     

    (viii)  such
      other
      certificates, documents, agreements and information respecting any Loan Party
      as
      any Lender through the Administrative Agent may reasonably request.

     

    (b)  Cash
      Management.  The Administrative Agent shall have received
      evidence that, as of the Effective Date, the procedures with respect to cash
      management required by the Collateral Documents have been established and are
      currently being maintained by each Loan Party, together with copies of all
      executed lockbox agreements and Deposit Account Control Agreements executed
      by
      such Loan Party in connection therewith.

     

    (c)  Fee
      and Expenses Paid.  There shall have been paid to the
      Administrative Agent, for the account of the Administrative Agent and the
      Lenders, and the Syndication Agent, as applicable, all fees and expenses
      (including reasonable fees and expenses of counsel) due and payable on or before
      the Effective Date (including all such fees described in the Fee Letter and
      the
      Supplemental Fee Letter), in each case to the extent invoiced prior to 12:00
      noon (New York time) on the Effective Date.

     

    (d)  Consent
      to Credit Agreement.  (i) The Agents shall have received evidence
      satisfactory to them that the Borrower shall have obtained the consents
      necessary under the Existing Subordinated Note Indenture to permit the
      extensions of credit under this Agreement and (ii) the Administrative Agent
      shall have received (in a form and substance satisfactory to the Agents) true
      and correct copies, certified as to authenticity by the Borrower, of the consent
      document with respect thereto.

     

    (e)  Forbearance
      Agreement.  The Administrative Agent shall have received (in a
      form and substance satisfactory to the Agents, it being understood and agreed
      that the Forbearance Agreement dated as of January 16, 2008 among, inter
      alia, the Borrower and certain holders of the Existing Subordinated Notes
      and the Existing Senior Secured Notes, as amended by an amendment thereto in
      the
      form delivered to the 

     

     

    
      
        
        

      

      
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    Administrative
      Agent prior to the date hereof, is in form and substance satisfactory to the
      Agents) a true and correct copy, certified as to authenticity by the Borrower,
      of the Forbearance Agreement.

     

    (f)  Consents,
      Etc.  Each of the Borrower, and its Subsidiaries shall have
      received all consents and authorizations required pursuant to any material
      Contractual Obligation with any other Person and shall have obtained all Permits
      of, and effected all notices to and filings with, any Governmental Authority,
      in
      each case, as may be necessary to allow each of the Borrower, and its
      Subsidiaries lawfully (i) to execute, deliver and perform, in all material
      respects, their respective obligations hereunder and under the Loan Documents
      to
      which each of them, respectively, is, or shall be, a party and each other
      agreement or instrument to be executed and delivered by each of them,
      respectively, pursuant thereto or in connection therewith and (ii) to
      create and perfect the Liens on the Collateral to be owned by each of them
      in
      the manner and for the purpose contemplated by the Loan Documents.

     

    (g)  Field
      Examination.  The Agents shall be satisfied with the results of a
      field examination of the Borrower and its Subsidiaries conducted by internal
      auditors of the Agents as of a recent date prior to the Effective Date, in
      form
      and substance satisfactory to the Agents.

     

    (h)  Business
      Plan.  The Lenders shall have received and be satisfied with the
      Borrower’s business plan which shall include a balance sheet forecast on a
      monthly basis for 2008 and on an annual basis thereafter through the year of
      the
      Revolving Credit Termination Date and an income statement forecast on an annual
      basis through the year of the Revolving Credit Termination Date, in each case
      prepared by the Borrower’s management.

     

    (i)  Cash
      Flow Certificate.  The Lenders shall have received the Weekly
      Cash Flow Certificate for the 13 week period following the Effective
      Date.

     

    Section
      3.2  Conditions
      Precedent to Each Loan and Letter of Credit

     

    The
      obligation of each Lender on any date (including the Effective Date) to make
      any
      Loan and of each Issuer on any date (including the Effective Date) to Issue
      any
      Letter of Credit is subject to the satisfaction of each of the following
      conditions precedent:

     

    (a)  Request
      for Borrowing or Issuance of Letter of Credit.  With respect to
      any Loan, the Administrative Agent shall have received a duly executed Notice
      of
      Borrowing (or, in the case of Swing Loans, a duly executed Swing Loan Request),
      and, with respect to any Letter of Credit, the Administrative Agent and the
      Issuer shall have received a duly executed Letter of Credit
      Request.

     

    (b)  Representations
      and Warranties; No Defaults.  The following statements shall be
      true on the date of such Loan or Issuance, both before and after giving effect
      thereto and, in the case of any Loan, to the application of the proceeds
      thereof:

     

    (i)  the
      representations and warranties set forth in Article IV (Representations
      and Warranties) and in the other Loan Documents shall be true and correct
      on and as of the Effective Date and shall be true and correct in all material
      

     

     

    
      
        
        

      

      
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    respects
      (except that any representation and warranty that is qualified as to
“materiality” or “Material Adverse Effect” shall be true and correct in
      all respects) on and as of any such date after the Effective Date with the
      same
      effect as though made on and as of such date, except to the extent such
      representations and warranties expressly relate to an earlier date, in which
      case such representations and warranties shall have been true and correct in
      all
      material respects as of such earlier date; and

     

    (ii)  no
      Default
      or Event of Default shall have occurred and be continuing.

     

    (c)  Borrowing
      Base.  The Loan Parties shall have delivered the Borrowing Base
      Certificate required to be delivered by Section 5.1(n)
      (Information).  After giving effect to the Loans or Letters of
      Credit requested to be made or Issued on any such date and the use of proceeds
      thereof, (i) the Tranche A Outstandings shall not exceed the Maximum Tranche
      A
      Credit at such time and (ii) the Tranche A-1 Outstandings shall not exceed
      the
      Maximum Tranche A-1 Credit at such time.

     

    (d)  No
      Legal Impediments.  The making of the Loans or the Issuance of
      such Letter of Credit on such date does not violate any Requirement of Law
      on
      the date of or immediately following such Loan or Issuance of such Letter of
      Credit and is not enjoined, temporarily, preliminarily or
      permanently.

     

    Each
      submission by the Borrower to the Administrative Agent of a Notice of Borrowing
      or a Swing Loan Request and the acceptance by the Borrower of the proceeds
      of
      each Loan requested therein, and each submission by the Borrower to an Issuer
      of
      a Letter of Credit Request, and the Issuance of each Letter of Credit requested
      therein, shall be deemed to constitute a representation and warranty by the
      Borrower as to the matters specified in clause (b) above on the
      date of the making of such Loan or the Issuance of such Letter of
      Credit.

     

    Section
      3.3  Determinations
      of Initial Borrowing Conditions

     

    For
      purposes of determining compliance with the conditions specified in
Section 3.1 (Conditions Precedent to Effectiveness), each Lender
      shall be deemed to have consented to, approved, accepted or be satisfied with,
      each document or other matter required thereunder to be consented to or approved
      by or acceptable or satisfactory to the Lenders unless an officer of the
      Administrative Agent responsible for the transactions contemplated by the Loan
      Documents shall have received notice from such Lender prior to the initial
      Borrowing, borrowing of Swing Loans or Issuance or deemed Issuance hereunder
      specifying its objection thereto and such Lender shall not have made available
      to the Administrative Agent such Lender’s Ratable Portion of such Borrowing or
      Swing Loans.

     

    ARTICLE
      IV

     

    Representations
      and Warranties

     

    To
      induce
      the Lenders, the Issuers and the Agents to enter into this Agreement, the
      Borrower represents and warrants each of the following to the Lenders, the
      Issuers and the Agents, on and as of the Effective Date and after giving effect
      to the making of the Loans and the other financial accommodations on the
      Effective Date and on and as of each date as required by
Section 3.2(b)(i) (Conditions Precedent to Each Loan and Letter of
      Credit):

     

     

    
      
        
        

      

      
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    Section
      4.1  Corporate
      Existence and Power

     

    Each
      of
      the Borrower and its Subsidiaries (i) is a corporation duly incorporated,
      validly existing and in good standing under the laws of the jurisdiction of
      its
      incorporation, (ii) is duly qualified to do business as a foreign entity and
      in
      good standing under the laws of each jurisdiction where such qualification
      is
      necessary, except where the failure to be so qualified or in good standing
      would
      not, in the aggregate, have a Material Adverse Effect, (iii) is in compliance
      with its Constituent Documents, (iv) is in compliance with all applicable
      Requirements of Law except where the failure to be in compliance would not,
      in
      the aggregate, have a Material Adverse Effect and (v) has all corporate powers,
      all necessary Permits and all material governmental licenses, consents,
      authorizations and approvals required to carry on its business as now
      conducted.

     

    Section
      4.2  Corporate
      and Governmental Authorization; No Contravention

     

    The
      execution, delivery and performance by each Loan Party of the Loan Documents
      to
      which it is a party and the consummation of the transactions contemplated
      thereby are within such Loan Party’s corporate powers, have been duly authorized
      by all necessary corporate action, and require no action or authorization by
      or
      in respect of, or filing with, or consent or approval of, or notice to any
      Governmental Authority or any other Person (other than filings required to
      perfect the Liens created by the Collateral Documents).  The
      execution, delivery and performance by each Loan Party of the Loan Documents
      to
      which it is a party do not (i) contravene any Requirement of Law (including
      Regulations T, U and X of the Federal Reserve Board), (ii) contravene such
      Loan
      Party’s Constituent Documents, (iii) contravene, or constitute a default under,
      any agreement, judgment, injunction, order, decree, instrument or other material
      Contractual Obligation binding upon the Borrower or any Subsidiary, or (iv)
      except as contemplated by the Collateral Documents, result in the creation
      or
      imposition of any Lien on any asset of the Borrower or any
      Subsidiary.

     

    Section
      4.3  Binding
      Effect

     

    (a)  Each
      Loan
      Party has duly executed and delivered each of the Loan Documents to which it
      is
      a party and each of the Loan Documents (other than the Notes) to which such
      Loan
      Party is a party constitutes a valid and binding agreement of such Loan Party
      and each Note, upon due execution thereof by the Borrower will constitute a
      valid and binding obligation of the Borrower, in each case enforceable in
      accordance with its terms except (i) as may be limited by bankruptcy, insolvency
      or similar laws affecting creditors’ rights generally, (ii) as rights of
      acceleration and the availability of equitable remedies may be limited by
      equitable principles of general applicability, and (iii) as limited by legal
      or
      equitable principles of reasonableness, good faith and fair
      dealing.

     

    Section
      4.4  Financial
      Information

     

    (a)  The
      Consolidated balance sheet of the Borrower and its Consolidated Subsidiaries
      as
      of June 29, 2007 and the related Consolidated statements of operations, cash
      flows and stockholders’ equity for the Fiscal Year then ended, reported on by
      BDO Seidman, LLP, a copy of which has been delivered to each of the Lenders,
      fairly present, in all material respects, in conformity with GAAP, the
      Consolidated 

     

     

    
      
        
        

      

      
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    financial
      position of the Borrower and its Consolidated Subsidiaries as of such date
      and
      their consolidated results of operations and cash flows for such Fiscal
      Year.

     

    (b)  The
      unaudited consolidated balance sheet of the Borrower and its Consolidated
      Subsidiaries as of September 30, 2007 and December 31, 2007, and the related
      unaudited consolidated statements of operations, cash flows and stockholders’
equity for the fiscal periods then ended (collectively, the “Unaudited
      Financial Statements”), copies of which have been delivered to the Lenders,
      fairly present, in all material respects, in conformity with GAAP, the
      consolidated financial position of the Borrower and its Consolidated
      Subsidiaries as of such date and their consolidated results of operations and
      cash flows for such periods.

     

    (c)  Except
      for
      events and circumstances disclosed in the Unaudited Financial Statements, since
      June 29, 2007 there has occurred no Material Adverse Effect.

     

    (d)  None
      of
      the Borrower or any of the Borrower’s Subsidiaries has any material obligation,
      contingent liability or liability for taxes, long-term leases or unusual forward
      or long-term commitment that is not reflected in the Financial Statements
      referred to in clauses (a) or (b) above or in the notes thereto and not
      otherwise permitted by this Agreement.

     

    Section
      4.5  Litigation

     

    There
      is
      no action, suit or proceeding pending against, or to the best of the Borrower’s
      knowledge, threatened against or affecting, the Borrower or any Subsidiary
      before any Governmental Authority or arbitrator (i) in which there is a
      reasonable possibility of an adverse decision which could have a Material
      Adverse Effect or (ii) which in any manner draws into question the validity
      or
      enforceability of the Loan Documents.  The performance of any action
      by any Loan Party required or contemplated by any Loan Document is not
      restrained or enjoined (either temporarily, preliminarily or
      permanently).

     

    Section
      4.6  Compliance
      with ERISA

     

    (a)  Each
      member of the ERISA Group has fulfilled its obligations under the minimum
      funding standards of ERISA and the Code with respect to each Plan and is in
      compliance in all material respects with the presently applicable provisions
      of
      ERISA and the Code with respect to each Plan.  No member of the ERISA
      Group has (i) sought a waiver of the minimum funding standard under Section
      412
      of the Code in respect of any Plan, (ii) failed to make any contribution or
      payment to any Plan or Multiemployer Plan, or made any amendment to any Plan,
      which has resulted or could reasonably be expected to result in the imposition
      of a Lien or the posting of a bond or other security under ERISA or the Code
      or
      (iii) incurred any liability under Title IV of ERISA other than a liability
      to
      the PBGC for premiums under Section 4007 of ERISA.

     

    (b)  Schedule
      4.6 separately identifies as of the Effective Date all Title IV Plans, all
      Multiemployer Plans and all of the employee benefit plans within the meaning
      of
      Section 3(3) of ERISA to which the Borrower or any of its Borrower’s
      Subsidiaries has any obligation or liability, contingent or
      otherwise.

     

     

    
      
        
        

      

      
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    Section
      4.7  Environmental
      Compliance

     

    (a)  Except
      to
      the extent that the Environmental Liabilities of the Borrower and its
      Subsidiaries, taken as a whole, that relate to or can reasonably be expected
      to
      result from the matters referred to in clauses (i) through (vii), would not
      exceed $10,000,000 for any individual issue or relating to a particular
      facility, or $25,000,000 in the aggregate:

     

    (i)  no
      notice,
      notification, demand, request for information, citation, summons, complaint
      or
      order has been received, no complaint has been served, no penalty has been
      assessed and, to the best of the Borrower’s knowledge, no investigation or
      review is pending or threatened by any governmental or other entity with respect
      to any (A) alleged violation by the Borrower or any Subsidiary of any
      Environmental Law, (B) alleged failure by the Borrower or any Subsidiary to
      have
      any environmental permit, certificate, license, approval, registration or
      authorization required in connection with the conduct of its business, (C)
      Regulated Activity or (D) Release of Hazardous Substances;

     

    (ii)  other
      than
      Regulated Activity undertaken in compliance with all applicable Environmental
      Laws, (A) neither the Borrower nor any Subsidiary has engaged in any Regulated
      Activity and (B) no Regulated Activity has occurred at or on any property now
      or
      previously owned, leased or operated by the Borrower or any Subsidiary during
      the period of such ownership, lease or operation by the Borrower or any
      Subsidiary;

     

    (iii)  to
      the
      best of the Borrower’s knowledge, no polychlorinated biphenyls, radioactive
      material, urea formaldehyde, lead, asbestos, asbestos-containing material or
      underground storage tank (active or abandoned) is or has been present at any
      property now or previously owned, leased or operated by the Borrower or any
      Subsidiary during the period of such ownership, lease or operation by the
      Borrower or any Subsidiary;

     

    (iv)  no
      Hazardous Substance has been Released (and no written notification of such
      Release has been filed) or is present (whether or not in a reportable or
      threshold planning quantity) at, on or under any property now or previously
      owned, leased or operated by the Borrower or any Subsidiary during the period
      of
      such ownership, lease or operation by the Borrower or any
      Subsidiary;

     

    (v)  to
      the
      best of the Borrower’s knowledge, no property now or previously owned, leased or
      operated by the Borrower or any Subsidiary or any property to which the Borrower
      or any Subsidiary has, directly or indirectly, transported or arranged for
      the
      transportation of any Hazardous Substances, is listed or, to the best of the
      Borrower’s knowledge, proposed for listing, on the National Priorities List
      promulgated pursuant to CERCLA, on CERCLIS (as defined in CERCLA) or on any
      similar federal, state or foreign list of sites requiring investigation or
      clean-up;

     

    (vi)  there
      are
      no Liens under Environmental Laws on any of the Real Property or other assets
      owned or leased by the Borrower or any Subsidiary, to the best of the Borrower’s
      knowledge, no government actions have been taken or are in process which could
      subject any of such properties or assets to such liens, and neither the

     

     

    
      
        
        

      

      
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    Borrower
      nor any Subsidiary would be required to place any notice or restriction relating
      to Hazardous Substances at any property owned by it in any deed to such
      property; and

     

    (vii)  there
      has
      been no environmental investigation, study, audit, test, review or other
      analysis conducted of which the Borrower has knowledge in relation to the
      current or prior business of the Borrower or any property or facility now or
      previously owned, leased or operated by the Borrower or any Subsidiary, access
      to which has not been provided to the Lenders at least five (5) days prior
      to
      the Effective Date.

     

    (b)  To
      the
      best of the Borrower’s knowledge, no current facts, circumstances or conditions
      exist with respect to the Borrower or any of its Subsidiaries or any Real
      Property currently or formerly owned, operated or leased by the Borrower or
      any
      of its Subsidiaries that would reasonably be expected to result in the Borrower
      or any of its Subsidiary incurring unbudgeted Environmental Liabilities in
      excess of $10,000,000 either individually or at any particular property or
      $25,000,000 in the aggregate.

     

    (c)  For
      purposes of this Section, the terms “Borrower” and “Subsidiary” shall include
      any business or business entity (including a corporation) which is a
      predecessor, in whole or in part, of the Borrower or any
      Subsidiary.

     

    Section
      4.8  Taxes

     

    (a)  The
      Borrower and its Subsidiaries have filed all United States Federal income tax
      returns and all other material tax returns (collectively, the “Tax
      Returns”) which are required to be filed by them and have paid all taxes
      and assessments payable by it which have become due pursuant to such returns
      or
      pursuant to any material assessment received by the Borrower or any Subsidiary,
      except any such taxes or charges which are being diligently contested in good
      faith by appropriate proceedings and for which adequate reserves have been
      provided for on the Financial Statements of the Borrower and its Subsidiaries
      to
      the extent required by and in accordance with GAAP.  As of the
      Effective Date, no Tax Return is under audit or examination by any Governmental
      Authority and no notice of such an audit or examination or any assertion of
      any
      claim for Taxes has been given or made by any Governmental
      Authority.  Proper and accurate amounts have been withheld by the
      Borrower and each of its Tax Affiliates from their respective employees for
      all
      periods in full and complete compliance with the tax, social security and
      unemployment withholding provisions of applicable Requirements of Law and such
      withholdings have been timely paid to the respective Governmental
      Authorities.

     

    (b)  As
      of the
      Effective Date, none of the Borrower or any of its Tax Affiliates has (i)
      executed or filed with the IRS or any other Governmental Authority any agreement
      or other document extending, or having the effect of extending, the period
      for
      the filing of any Tax Return or the assessment or collection of any charges,
      (ii) incurred any obligation under any tax sharing agreement or arrangement
      other than those of which the Administrative Agent has received a copy prior
      to
      the Effective Date or (iii) been a member of an affiliated, combined or unitary
      group other than the group of which the Borrower (or its Tax Affiliate) is
      the
      common parent.

     

     

    
      
        
        

      

      
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    (c)  The
      Borrower does not intend to treat the Loans and the Letters of Credit and the
      related transactions contemplated hereby as being a “reportable transaction”
(within the meaning of Treasury Regulation Section 1.6 011-4).

     

    Section
      4.9  Ownership
      of Borrower; Subsidiaries

     

    (a)  As
      of the
      Effective Date, the authorized capital stock of the Borrower consists of (i)
      20,000 shares of common stock, $0.01 par value per share, of which 1,008 shares
      are issued and outstanding and (ii) 82,500 shares of Series A Preferred Stock,
      of which 54,300 shares are issued and outstanding.  All of the
      outstanding capital stock of the Borrower has been validly issued, is fully
      paid
      and non-assessable and is owned beneficially and of record by the Persons listed
      on Schedule 4.9(c).  No Stock of the Borrower is subject to
      any option, warrant, right of conversion or purchase or any similar
      right.  There are no agreements or understandings to which the
      Borrower is a party with respect to the voting, sale or transfer of any shares
      of Stock of the Borrower or any agreement restricting the transfer or
      hypothecation of any such shares.

     

    (b)  Each
      of
      the Borrower’s Subsidiaries is a corporation or other legal entity duly
      incorporated or organized, validly existing and in good standing under the
      laws
      of its jurisdiction of organization, and has all corporate or other
      organizational powers and all material governmental licenses, authorizations,
      consents and approvals required to carry on its business as now
      conducted.

     

    (c)  Schedule
      4.9(c) lists (i) all of the Subsidiaries of the Borrower as of the
      Effective Date, (ii) as to each such Subsidiary, the jurisdiction of its
      organization and (iii) as to each Domestic Subsidiary and each first-tier
      Foreign Subsidiary, the number of shares of each class of Stock authorized
      (if
      applicable), the number outstanding on the Effective Date, the number and
      percentage of the outstanding shares of each such class owned (directly or
      indirectly) by the Borrower and the direct parent thereof.  No Stock
      of any Subsidiary of the Borrower is subject to any outstanding option, warrant,
      right of conversion or purchase of any similar right.  All of the
      outstanding Stock of each Subsidiary of the Borrower owned (directly or
      indirectly) by the Borrower has been validly issued, is fully paid and
      non-assessable (to the extent applicable) and is owned by the Borrower or a
      Subsidiary of the Borrower, free and clear of all Liens (other than the Liens
      in
      favor of the New Senior Secured Note Trustee and the Existing Senior Secured
      Note Trustee), options, warrants, rights of conversion or purchase or any
      similar rights.  Neither the Borrower nor any such Subsidiary is a
      party to, or has knowledge of, any agreement restricting the transfer or
      hypothecation of any Stock of any such Subsidiary, other than the Loan
      Documents, the New Senior Secured Note Documents and the Existing Senior Secured
      Note Documents.  The Borrower does not own or hold, directly or
      indirectly, any Stock of any Person other than such Subsidiaries and Investments
      permitted by Section 6.6 (Investments).  Each Domestic
      Subsidiary of the Borrower is a Guarantor, and each Guarantor is a direct or
      indirect Subsidiary of the Borrower.

     

    (d)  Distributors
      Recycling, Inc. is a De Minimis Subsidiary.

     

     

    
      
        
        

      

      
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    Section
      4.10  No
      Regulatory Restrictions on Borrowing

     

    None
      of
      the Borrower or any Subsidiary of the Borrower is (i) an “investment company”
within the meaning of the Investment Company Act of 1940, as amended, or (ii)
      otherwise subject to any regulatory scheme which restricts its ability to incur
      debt.

     

    Section
      4.11  Full
      Disclosure

     

    (a)  All
      information heretofore furnished by each Loan Party to any Agent or any Lender
      for purposes of or in connection with this Agreement or any transaction
      contemplated hereby (including in connection with the primary syndication of
      the
      Facility) is, and all such information hereafter furnished by each Loan Party
      to
      any Agent or any Lender will be, taken as a whole, true and accurate in all
      material respects on the date as of which such information is stated or
      certified and not incomplete by omitting to state any fact necessary to make
      such information not misleading in any material respect at such time in light
      of
      the circumstances under which such information was provided.  Each
      Loan Party has, to the best of its knowledge, disclosed to the Lenders in
      writing any and all facts which materially and adversely affect, or may affect
      (to the extent the Loan Parties can now reasonably foresee), the business,
      operations or financial condition of the Borrower and its Consolidated
      Subsidiaries, taken as a whole, or the Loan Parties’ ability to perform their
      obligations under the Loan Documents.

     

    (b)  The
      Projections were based on assumptions believed by the Borrower to be reasonable
      as of their date and as of their date represented the reasonable best estimate
      of future performance of the Borrower and its Subsidiaries.  During
      the period from the date of the Projections to and including the Effective
      Date,
      to the best of the Borrower’s knowledge, no event has occurred and no condition
      has come into existence which would have caused the projected financial
      statements therein to be materially misleading.

     

    Section
      4.12  Intellectual
      Property

     

    The
      Borrower and each of its Subsidiaries owns, possesses or holds under valid
      licenses all patents, trademarks, service marks, trade names, copyrights,
      licenses and other intellectual property rights that are necessary for the
      operation of their respective properties and businesses, and neither the
      Borrower nor any of its Subsidiaries is in violation of any provision thereof.
      Neither the Borrower nor its Subsidiaries has received actual notice of, or
      knows of any valid basis for, any claim of infringement of any material license,
      patent, trademark, trade name, service mark, copyright, trade secret or any
      other intellectual property right of others, and, to the best knowledge of
      the
      Borrower, there is no infringement or claim of infringement by others of any
      material license, patent, trademark, trade name, service mark, copyright, trade
      secret or other intellectual property right of the Borrower and its
      Subsidiaries.

     

    Section
      4.13  [Reserved]

     

    Section
      4.14  Labor
      Relations

     

    (a)  Neither
      the Borrower nor any of its Subsidiaries is engaged in any unfair labor practice
      that could reasonably be expected to have a Material Adverse
      Effect.  There is (i) no unfair labor practice complaint pending
      against the Borrower or 

     

     

    
      
        
        

      

      
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    any
      of its
      Subsidiaries or, to the best knowledge of the Borrower, threatened against
      any
      of them, before the National Labor Relations Board, and no grievance or
      arbitration proceeding arising out of or under any collective bargaining
      agreement is so pending against the Borrower or any of its Subsidiaries or,
      to
      the best knowledge of the Borrower, threatened against any of them, (ii) no
      strike, labor dispute, slowdown or stoppage pending against the Borrower or
      any
      of its Subsidiaries or, to the best knowledge of the Borrower, threatened
      against the Borrower or any of its Subsidiaries and (iii) no union
      representation question existing with respect to the employees of the Borrower
      or any of its Subsidiaries, except (with respect to any matter specified in
      clause (i), (ii) or (iii) above, either individually or in the aggregate) such
      as could not reasonably be expected to have a Material Adverse
      Effect.

     

    (b)  Schedule
      4.14 sets forth, as of the Effective Date, all collective bargaining
      agreements covering any employee of the Borrower or its Subsidiaries, and all
      material consulting agreements, executive employment agreements, executive
      compensation plans, deferred compensation agreements, employee stock purchase
      and stock option plans and severance plans of the Borrower and any of its
      Subsidiaries.

     

    Section
      4.15  Subordinated
      Notes; etc.

     

    All
      Obligations hereunder and under the other Loan Documents constitute “ABL
      Facility Priority Lien Debt” as such term is defined in, and for purposes of,
      the New Senior Secured Note Indenture.  All Obligations hereunder and
      under the other Loan Documents constitute “Priority Lien Debt” as such term is
      defined in, and for purposes of, the Existing Senior Secured Note
      Indenture.  So long as any Existing Subordinated Notes remain
      outstanding, all Obligations hereunder and under the other Loan Documents
      constitute “Senior Debt” and “Designated Senior Debt,” as such terms are defined
      in, and for purposes of, the Existing Subordinated Note
      Indenture.  This Agreement (i) is included in the “Credit Agreement”
as such term is defined in, and for purposes of, each of the Existing
      Subordinated Note Indenture and the Existing Senior Secured Note Indenture
      and
      (ii) constitutes a “Credit Facility” as such term is defined in, and for
      purposes of, the New Senior Secured Note Indenture.

     

    Section
      4.16  Deposit
      Accounts

     

    The
      only
      checking, savings, deposit, securities and other accounts at any bank or other
      financial institution where cash or Cash Equivalents are deposited or maintained
      by the Borrower or any other Loan Party are the accounts set forth on
Schedule 4.16 and such other accounts as are opened in accordance with
Section 5.11 (Control Accounts; Approved Deposit
      Accounts).  Schedule 4.16 hereto accurately sets forth,
      as of the Effective Date, for each Loan Party, each such Deposit Account and
      Securities Account maintained by such Loan Party (including a description
      thereof and the respective account number) and the name of the respective bank
      or securities intermediary with which such Deposit Account or Securities Account
      is maintained.

     

    Section
      4.17  No
      Burdensome Restrictions; No Defaults

     

    (a)  None
      of
      the Borrower or any Subsidiary of the Borrower (i) is a party to any Contractual
      Obligation the compliance with one or more of which would have, in the
      aggregate, a Material Adverse Effect or the performance of which by any thereof,
      either unconditionally or upon the happening of an event, would result in the
      

     

     

    
      
        
        

      

      
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    creation
      of a Lien (other than a Lien permitted under Section 6.1 (Limitation on
      Liens)) on the assets of any thereof or (ii) is subject to one or more
      charter or corporate restrictions that would, in the aggregate, have a Material
      Adverse Effect.

     

    (b)  Except
      for
      a Subordinated Note Default, none of the Borrower or any Subsidiary of the
      Borrower is in default under or with respect to any Contractual Obligation
      owed
      by it and, to the knowledge of the Borrower, no other party is in default under
      or with respect to any Contractual Obligation owed to any Loan Party or to
      any
      Subsidiary of any Loan Party, other than, in either case, those defaults that,
      in the aggregate, would not have a Material Adverse Effect.

     

    (c)  No
      Default
      or Event of Default has occurred and is continuing.

     

    (d)  To
      the
      best knowledge of the Borrower, there are no Requirements of Law applicable
      to
      any Loan Party or any Subsidiary of any Loan Party the compliance with which
      by
      such Loan Party or such Subsidiary, as the case may be, would, in the aggregate,
      have a Material Adverse Effect.

     

    Section
      4.18  Insurance

     

    Schedule
      4.18 sets forth as of the Effective Date a summary of all insurance
      policies maintained by the Borrower and its Subsidiaries.  All
      policies of insurance of any kind or nature of the Borrower or any of its
      Subsidiaries, including policies of life, fire, theft, product liability, public
      liability, property damage, other casualty, employee fidelity, workers’
compensation and employee health and welfare insurance, are in full force and
      effect and are of a nature and provide such coverage as is sufficient and as
      is
      customarily carried by businesses of the size and character of such
      Person.  None of the Borrower or any of its Subsidiaries has been
      refused insurance for any material coverage for which it had applied or had
      any
      policy of insurance terminated (other than at its request).

     

    Section
      4.19  Title;
      Real Property

     

    Each
      of
      the Borrower and its Subsidiaries has good and marketable title to, or valid
      leasehold interests in, all Real Property and good title to all personal
      property, in each case that is purported to be owned or leased by it, including
      those reflected on the most recent Financial Statements delivered by the
      Borrower, and none of such properties and assets is subject to any Lien, except
      Liens permitted under Section 6.1 (Limitation on Liens).  Set
      forth on Schedule 4.19 is a complete and accurate list of all Real
      Property of each Loan Party and its Subsidiaries and showing, as of the
      Effective Date, the current street address (including, where applicable, county,
      state and other relevant jurisdictions), record owner and, where applicable,
      lessee thereof.

     

    ARTICLE
      V

     

    Affirmative
      Covenants

     

    The
      Borrower hereby covenants and agrees that, on and after the Effective Date
      and
      until the Revolving Credit Commitments and all Letters of Credit have terminated
      and the Loans and Reimbursement Obligations, together with interest, fees and
      all other Obligations 

     

     

    
      
        
        

      

      
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    (other
      than indemnities for which no claim for payment has been made) incurred
      hereunder and under the other Loan Documents, are paid in full:

     

    Section
      5.1  Information

     

    The
      Borrower shall deliver to the Administrative Agent (with sufficient copies
      for
      each of the Lenders):

     

    (a)  Annual
      Reports.  As soon as available and in any event within 91 days
      after the end of each Fiscal Year, a Consolidated and consolidating balance
      sheet of the Borrower and its Consolidated Subsidiaries as of the end of such
      Fiscal Year and the related consolidated statements of operations, cash flows
      and stockholders’ equity for such Fiscal Year, setting forth in each case in
      comparative form the figures for the previous Fiscal Year, all prepared in
      conformity with GAAP and certified, without qualification as to the scope of
      the
      audit or as to the Borrower being a going concern, by BDO Seidman, LLP or other
      independent public accountants of nationally recognized standing, together
      with
      the report of such accounting firm stating that (i) such Financial Statements
      fairly present the Consolidated financial condition of the Borrower and its
      Subsidiaries as at the dates indicated and the results of their operations
      and
      cash flow for the periods indicated in conformity with GAAP applied on a basis
      consistent with prior years (except for changes with which such accounting
      firm
      shall concur and that shall have been disclosed in the notes to the Financial
      Statements) and (ii) the examination by such accounting firm in connection
      with
      such Financial Statements has been made in accordance with generally accepted
      auditing standards.

     

    (b)  Quarterly
      and Monthly Reports.  (i) As soon as available and in any event
      within 46 days after the end of each of the first three Fiscal Quarters of
      each
      Fiscal Year, a consolidated balance sheet of the Borrower and its Consolidated
      Subsidiaries as of the end of such Fiscal Quarter, the related consolidated
      statement of operations for such Fiscal Quarter and the related consolidated
      statements of cash flows for the portion of the Fiscal Year ended at the end
      of
      such Fiscal Quarter, setting forth in the case of each such statement of cash
      flows in comparative form the figures for the corresponding period in the
      previous Fiscal Year, all certified (subject to normal year end adjustments)
      as
      to fairness of presentation and consistency with GAAP by the Borrower’s chief
      executive officer, chief financial officer or chief accounting officer and
      (ii)
      within 45 days after the end of the first two fiscal months in each Fiscal
      Quarter, a consolidated balance sheet of the Borrower and its Consolidated
      Subsidiaries as of the end of such fiscal month, the related consolidated
      statement of operations for such fiscal month and the related consolidated
      statements of cash flow for that portion of the current Fiscal Year ending
      as of
      the close of such month, setting forth in the case of each such statement of
      cash flow in comparative form the figures for the corresponding period in the
      previous Fiscal Year, all certified (subject to normal year end adjustments)
      as
      to fairness of presentation and consistency with GAAP by the Borrower’s chief
      executive officer, chief financial officer or chief accounting
      officer.

     

    (c)  Compliance
      Certificate.  Simultaneously with the delivery of each set of
      Financial Statements referred to in clauses (a) or (b)(i)
      above, a certificate of the Borrower’s chief executive officer, chief financial
      officer or chief accounting officer (i) stating whether any Default exists
      on
      the date of such certificate and, if any Default then exists, setting forth
      the
      details thereof and the action which the Borrower is taking or
      

     

     

    
      
        
        

      

      
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    proposes
      to take with respect thereto, and (ii) with respect to the Financial Statements
      referred to in clause (a) above only, setting forth in reasonable
      detail the calculations required to establish whether the Borrower was in
      compliance with the requirements of Section 6.16 (Capital Expenditures)
on the date of such financial statements.

     

    (d)  Accountant’s
      Certificate.  Simultaneously with the delivery of each set of
      Financial Statements referred to in clause (a) above, a statement of
      the firm of independent public accountants which reported on such statements
      (i)
      stating whether anything has come to their attention to cause them to believe
      that any Default existed on the date of such statements, and (ii) confirming
      the
      calculations set forth in the officer’s certificate delivered simultaneously
      therewith pursuant to clause (c) above.

     

    (e)  Projections.  Commencing
      with (i) the Fiscal Year ending on or around June 30, 2009, within 60 days
      of
      the beginning of each Fiscal Year, and containing substantially the types of
      financial information contained in the Projections, forecasts prepared by
      management of the Borrower for each Fiscal Year through the Fiscal Year in
      which
      the Revolving Credit Termination Date is scheduled to occur, including, in
      each
      instance, (A) a projected quarterly (for the next four Fiscal Quarters) and
      year-end Consolidated balance sheet and income statement and (B) a statement
      of
      all of the material assumptions on which such forecasts are based; and (ii)
      the
      Effective Date, and thereafter, as soon as available and in any event not later
      than 4 days after the last day of each calendar week, a projected statement
      of
      aggregate cash receipts and disbursements for a period beginning on the date
      the
      prior weekly cash flow certificate required by this clause (e)(ii) was
      delivered and ending thirteen weeks from such date (the “Weekly Cash Flow
      Certificate”).

     

    (f)  Default
      Notices.  Within 3 Business Days after any officer of any Loan
      Party obtains knowledge of any Default, a certificate of the Borrower’s chief
      executive officer or chief accounting officer setting forth the details thereof
      and the action which the Borrower is taking or proposes to take with respect
      thereto.

     

    (g)  Material
      Adverse Effect.  As soon as reasonably practicable, and in any
      event within 3 Business Days after any officer of any Loan Party obtains
      knowledge thereof, notice of any event or condition (including, without
      limitation, any litigation, governmental investigation or other proceeding)
      which has had or threatens to have a Material Adverse Effect and the nature
      of
      such Material Adverse Effect, setting forth the details thereof and the action
      which the Borrower is taking or proposes to take with respect
      thereto.

     

    (h)  SEC
      Filings.  Promptly after the filing thereof, notice of all
      registration statements (other than the exhibits thereto and any registration
      statements on Form S-8 or its equivalent) and reports on Forms 10-K, 10 -Q
      and
      8-K (or their equivalents) filed by the Borrower or any of its Subsidiaries
      with
      the SEC and, to the extent not publicly available on the SEC’s EDGAR database,
      copies thereof.

     

    (i)  ERISA
      Matters.  Promptly, if and when any member of the ERISA Group (i)
      gives or is required to give notice to the PBGC of any “reportable
      event” (as defined in Section 4043 of ERISA) with respect to any Plan which
      might reasonably constitute grounds for a termination of such Plan under Title
      IV of ERISA, or knows that the plan administrator of any Plan has given or
      is
      required to give notice of 

     

     

    
      
        
        

      

      
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    any
      such
      reportable event, a copy of the notice of such reportable event given or
      required to be given to the PBGC; (ii) receives notice of complete or partial
      withdrawal liability under Title IV of ERISA or notice that any Multiemployer
      Plan is in reorganization, is insolvent or has been terminated, a copy of such
      notice; (iii) receives notice from the PBGC under Title IV of ERISA of an intent
      to terminate, impose liability (other than for premiums under Section 4007
      of
      ERISA) in respect of, or appoint a trustee to administer any Plan, a copy of
      such notice; (iv) applies for a waiver of the minimum funding standard under
      Section 412 of the Code, a copy of such application; (v) gives notice of intent
      to terminate any Plan under Section 4041 of ERISA, a copy of such notice and
      other information filed with the PBGC; (vi) gives notice of withdrawal from
      any
      Plan pursuant to Section 4063 of ERISA, a copy of such notice or (vii) fails
      to
      make any payment or contribution to any Plan or Multiemployer Plan or makes
      any
      amendment to any Plan which has resulted or could reasonably result in the
      imposition of a Lien or the posting of a bond or other security, a certificate
      of the Borrower’s chief executive officer or chief accounting officer setting
      forth details as to such occurrence and the action, if any, which the Borrower
      or applicable member of the ERISA Group is required or proposes to
      take.

     

    (j)  Environmental
      Matters.  Promptly, upon receipt of any complaint, order,
      citation, notice or other written communication from any Person with respect
      to,
      or upon the Borrower’s obtaining knowledge of, (i) the existence or alleged
      existence of a violation of any applicable Environmental Law or any
      Environmental Liability in connection with any property now or previously owned,
      leased or operated by the Borrower or any of its Subsidiaries, (ii) any Release
      of any Hazardous Substance on such property or any part thereof in a quantity
      that is reportable under any applicable Environmental Law, and (iii) any pending
      or threatened proceeding for the termination, suspension or non-renewal of
      any
      permit required under any applicable Environmental Law, in each case (x) which
      could result in the Borrower or any of its Subsidiaries incurring Environmental
      Liabilities in excess of $1,000,000 for any individual issue or relating to
      a
      particular facility, or $5,000,000 in the aggregate in any Fiscal Year or (y)
      which individually or in the aggregate could have a Material Adverse
      Effect.

     

    (k)  Management
      Letters.  Within 3 Business Days after receipt thereof by any
      Loan Party, copies of each management letter, exception report or similar letter
      or report received by such Loan Party from its independent certified public
      accountants.

     

    (l)  Notices
      Under Certain Indentures.  Promptly after the sending or filing
      thereof, the Borrower shall send the Administrative Agent copies of all material
      notices, certificates or reports delivered pursuant to, or in connection with,
      the New Senior Secured Note Indenture, the Existing Senior Secured Note
      Indenture or, so long as any Existing Subordinated Notes remain outstanding,
      the
      Existing Subordinated Note Indenture.

     

    (m)  Insurance.  As
      soon as is practicable and in any event by September 30 of each Fiscal Year,
      the
      Borrower shall furnish the Administrative Agent (in sufficient copies for each
      of the Lenders) with (a) a report in form and substance satisfactory to the
      Administrative Agent and the Lenders outlining all material insurance coverage
      maintained as of the date of such report by the Borrower or any Subsidiary
      of
      the Borrower and the duration of such coverage and (b) an insurance broker’s
      statement 

     

     

    
      
        
        

      

      
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    that
      all
      premiums then due and payable with respect to such coverage have been paid
      and
      confirming that the Administrative Agent has been named as loss payee with
      respect to all such insurance covering any Collateral.

     

    (n)  Borrowing
      Base Determination.

     

    (i)  The
      Borrower shall deliver, as soon as available and in any event not later than
      5
      days after the last day of each calendar week, a Borrowing Base Certificate
      as
      of the end of such week executed by a Responsible Officer of the
      Borrower.

     

    (ii)  The
      Borrower shall conduct, or shall cause to be conducted, at its expense and
      upon
      request of the Administrative Agent, and present to the Administrative Agent
      for
      approval, such Appraisals as the Administrative Agent shall request for the
      purpose of determining the Borrowing Base, all upon notice and at such times
      during normal business hours and as often as may be reasonably
      requested.  The Administrative Agent shall, at the Borrower’s sole
      cost and expense, make test verifications of the Accounts and physical
      verifications of the Inventory in any manner and through any medium that the
      Administrative Agent considers advisable at least four times during each
      calendar year, and the Borrower shall furnish all such assistance and
      information as the Administrative Agent may require in connection
      therewith.  The Syndication Agent may accompany the Administrative
      Agent during such verifications, at the Borrower’s sole cost and expense to the
      extent provided in Section 9.3 (Costs and Expenses).  The
      Borrower shall furnish to the Administrative Agent any information that the
      Administrative Agent may reasonably request regarding the determination and
      calculation of the Borrowing Base including correct and complete copies of
      any
      invoices, underlying agreements, instruments or other documents and the identity
      of all Account Debtors in respect of Accounts referred to therein.

     

    (iii)  Except
      for
      the Cash Dominion Period in effect on the Effective Date, the Borrower shall
      promptly notify the Administrative Agent in writing in the event that at any
      time the Borrower receives or otherwise gains knowledge that a Cash Dominion
      Period has begun.

     

    (iv)  At
      any
      time and from time to time, upon the Administrative Agent’s request and at the
      expense of the Borrower, the Borrower shall cause independent public accountants
      or others satisfactory to the Administrative Agent to furnish to the
      Administrative Agent reports showing reconciliations, aging and test
      verifications of, and trial balances for, the Accounts; provided,
however, that unless a Default or Event of Default shall be continuing,
      the Administrative Agent shall request no more than 4 such reports during any
      calendar year.

     

    (o)  Tax
      Reporting.  Promptly after the Borrower determines that it
      intends to treat the Loans and the Letters of Credit and the related
      transactions contemplated hereby as a “reportable transaction” within
      the meaning of Treasury Regulation Section 1.6011-4, the Borrower shall give
      the
      Administrative Agent written notice thereof and shall deliver to the
      Administrative Agent all IRS forms required in connection
      therewith.

     

    (p)  Other
      Information.  From time to time such additional information
      regarding the financial position or business of the Borrower and its

     

     

    
      
        
        

      

      
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    Subsidiaries
      (including, without limitation, any Guarantor) as the Administrative Agent,
      at
      the request of any Lender, may reasonably request.

     

    Section
      5.2  Payment
      of Obligations

     

    Except
      with respect to a Subordinated Note Default, the Borrower shall pay and
      discharge, and shall cause each Subsidiary to pay and discharge, at or before
      maturity, all of their respective material obligations and liabilities
      (including, without limitation, tax liabilities and claims of materialmen,
      warehousemen and the like which if unpaid might by law give rise to a Lien
      other
      than inchoate statutory liens in respect of obligations not yet due and
      payable), except where the same are contested in good faith by appropriate
      proceedings, and shall maintain, and shall cause each Subsidiary to maintain,
      in
      accordance with GAAP, any appropriate reserves for the accrual
      thereof.

     

    Section
      5.3  Maintenance
      of Property; Insurance

     

    (a)  The
      Borrower shall keep, and shall cause each Subsidiary to keep, all property
      useful and necessary in its business in good working order and condition,
      ordinary wear and tear excepted.

     

    (b)  The
      Borrower shall, and shall cause each Subsidiary to, (i) maintain (either in
      the
      Borrower’s name or in such Subsidiary’s own name) with financially sound and
      responsible insurance companies, insurance on all their respective properties
      in
      at least such amounts, against at least such risks and with no greater risk
      retention as are usually maintained, insured against or retained, as the case
      may be, in the same general area by companies of established repute engaged
      in
      the same or a similar business, and such other insurance as may be reasonably
      requested by the Requisite Lenders, and, in any event, all insurance required
      by
      any Collateral Documents and (ii) cause all such insurance covering any
      Collateral to name the Administrative Agent on behalf of the Secured Parties
      as
      loss payee and to provide that no cancellation, material addition in amount
      or
      material change in coverage shall be effective until after 30 days’ (or, in the
      case of non-payment of premiums, 10 days’) written notice thereof to the
      Administrative Agent.  The Borrower shall furnish to the Lenders, upon
      request from the Agent, information presented in reasonable detail as to the
      insurance so carried.

     

    Section
      5.4  Conduct
      of Business and Maintenance of Existence

     

    The
      Borrower and its Subsidiaries shall preserve, renew and keep in full force
      and
      effect their respective corporate existences and their respective rights,
      privileges and franchises, except as permitted by Sections 6.3 (Mergers,
      Etc.) and 6.4 (Sale of Assets).  The Borrower shall, and
      shall cause each Subsidiary of the Borrower to, use its reasonable efforts,
      in
      the ordinary course and consistent with past practice, to preserve its business
      and the goodwill and business of the customers, advertisers, suppliers and
      others having business relations with the Borrower or any of its Subsidiaries,
      except in each case where the failure to comply with the covenants in this
      sentence would not, in the aggregate, have a Material Adverse
      Effect.

     

    Section
      5.5  Compliance
      with Laws

     

    The
      Borrower shall comply, and shall cause each Subsidiary to comply, in all
      material respects with all Requirements of Law (including, without limitation,
      Environmental 

     

     

    
      
        
        

      

      
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    Laws
      and
      ERISA and the rules and regulations thereunder) and Permits, except where the
      necessity or manner of compliance therewith is contested in good faith by
      appropriate proceedings.  The Borrower shall comply, and shall cause
      each Subsidiary to comply, with all Contractual Obligations, except where the
      failure to so comply would not, in the aggregate, have a Material Adverse
      Effect.

     

    Section
      5.6  Inspection
      of Property, Books and Records

     

    The
      Borrower shall keep, and shall cause each Subsidiary to keep, proper books
      of
      record and account in which full and correct entries shall be made in conformity
      with GAAP of all dealings and transactions in relation to its business and
      activities.  The Borrower shall permit, and shall cause each
      Subsidiary to permit, the Agents and the Lenders, or any agents or
      representatives thereof, to visit and inspect any of their respective
      properties, to examine and make abstracts from any of their respective books
      and
      records and to discuss their respective affairs, finances and accounts with
      their respective officers, employees and independent public accountants, all
      at
      such reasonable times and as often as may reasonably be
      requested.  The Borrower shall authorize its certified public
      accountants, and shall cause the certified public accountants of any Subsidiary
      of the Borrower, if any, to disclose to any Agent or any Lender any and all
      financial statements and other information of any kind, as any Agent or any
      Lender reasonably requests and that such accountants may have with respect
      to
      the business, financial condition, results of operations or other affairs of
      the
      Borrower or any Subsidiary of the Borrower.

     

    Section
      5.7  Use
      of Proceeds; Compliance with Margin Regulations

     

    (a)  The
      proceeds of the Loans and the Letters of Credit shall be used by the Borrower
      (and, to the extent distributed to them by the Borrower, each other Loan Party)
      solely (a) for the payment of transaction costs, fees and expenses incurred
      in
      connection with this Agreement and the transactions contemplated hereby and
      (b)
      for working capital and general corporate purposes.  Prior to the
      consummation of the Debt Swap, the Company agrees not to use proceeds of the
      Loans to fund interest payments in respect of the Existing Subordinated
      Notes.

     

    (b)  Neither
      the making of any Loan hereunder nor the use of the proceeds thereof, nor the
      issuance of any Letter of Credit, will violate or be inconsistent with the
      provisions of the Margin Regulations.  Neither any proceeds of the
      Loans nor any Letter of Credit will be used, directly or indirectly, for the
      purpose, whether immediate, incidental or ultimate, of buying or carrying any
      Margin Stock.

     

    Section
      5.8  Environmental

     

    The
      Borrower shall, and shall cause each Subsidiary of the Borrower to, comply
      in
      all material respects with Environmental Laws and, without limiting the
      foregoing, the Borrower shall, at its sole cost and expense, upon receipt of
      any
      notification or otherwise obtaining knowledge of any Release or other event
      that
      has any reasonable likelihood of any of the Borrower or any Subsidiary of the
      Borrower incurring Environmental Liabilities whose Dollar Equivalent shall
      exceed $10,000,000 individually or $25,000,000 in the aggregate, (a) conduct,
      or
      pay for consultants to conduct, tests or assessments of environmental conditions
      at such operations or properties, including the investigation and testing of
      subsurface conditions and (b) take such Remedial Action and undertake such
      investigation or other action as required by 

     

     

    
      
        
        

      

      
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    Environmental
      Laws or as any Governmental Authority requires or as is appropriate and
      consistent with good business practice to address the Release or event and
      otherwise ensure compliance with Environmental Laws.

     

    Section
      5.9  Additional
      Collateral and Guaranties

     

    To
      the
      extent not delivered to the Administrative Agent on or before the Effective
      Date
      (including in respect of after-acquired property and Persons that become
      Subsidiaries of any Loan Party after the Effective Date), the Borrower agrees
      promptly to do, or cause each Subsidiary of the Borrower to do, each of the
      following, unless otherwise agreed by the Administrative Agent:

     

    (a)  deliver
      to
      the Administrative Agent such duly-executed supplements and amendments to the
      Guaranty (or, in the case of any Subsidiary of any Loan Party that is not a
      Domestic Subsidiary, foreign guarantees and related documents), in each case
      in
      form and substance reasonably satisfactory to the Administrative Agent and
      as
      the Administrative Agent deems necessary or advisable in order to ensure that
      each Subsidiary of each Loan Party guaranties, as primary obligor and not as
      surety, the full and punctual payment when due of the Obligations or any part
      thereof; provided, however, that, unless (x) the Borrower and
      the Administrative Agent otherwise agree, or (y) such Subsidiary guarantees
      or
      otherwise becomes obligated under any Indebtedness of the Borrower or any of
      the
      Borrower’s other Domestic Subsidiaries, in no event shall any Non-U.S. Person be
      required to guaranty the payment of the Obligations;

     

    (b)  deliver
      to
      the Administrative Agent such duly-executed joinder and amendments to the
      Security Agreement and, if applicable, the other Collateral Documents (or,
      in
      the case of any such Subsidiary of any Loan Party that is not a Domestic
      Subsidiary and becomes a Guarantor pursuant to clause (a) above,
      foreign charges, pledges, security agreements and other Collateral Documents),
      in each case in form and substance reasonably satisfactory to the Administrative
      Agent and as the Administrative Agent deems necessary or advisable in order
      to
      effectively grant to the Administrative Agent, for the benefit of the Secured
      Parties, a valid, perfected and enforceable first-priority security interest
      in
      all property interests and other assets of any Loan Party or any Subsidiary
      of
      any Loan Party constituting Collateral;

     

    (c)  deliver
      to
      the Administrative Agent all certificates, instruments and other documents
      representing all Pledged Instruments and all other debt Securities constituting
      Collateral being pledged pursuant to the joinders, amendments and foreign
      agreements executed pursuant to clause (b) above, in each case, endorsed in
      blank and executed and delivered by a Responsible Officer of such Loan Party
      or
      such Subsidiary thereof, as the case may be;

     

    (d)  to
      take
      such other actions necessary or advisable to ensure the validity or continuing
      validity of the guaranties required to be given pursuant to clause (a) above
      or
      to create, maintain or perfect the security interest required to be granted
      pursuant to clause (b) above, including the filing of UCC financing statements
      in such jurisdictions as may be required by the Collateral Documents or by
      law
      or as may be reasonably requested by the Administrative Agent; and

     

     

    
      
        
        

      

      
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    (e)  if
      requested by the Administrative Agent, deliver to the Administrative Agent
      legal
      opinions relating to the matters described above, which opinions shall be in
      form and substance, and from counsel, reasonably satisfactory to the
      Administrative Agent.

     

    Section
      5.10  Further
      Assurances

     

    (a)  The
      Borrower shall, and shall cause each of the other Loan Parties to, at the
      Borrower’s sole cost and expense, do, execute, acknowledge and deliver all such
      further acts, deeds, conveyances, mortgages, assignments, notices of assignment
      and transfers as the Administrative Agent shall from time to time request,
      which
      may be necessary in the reasonable judgment of the Administrative Agent from
      time to time to assure, perfect, convey, assign and transfer to the
      Administrative Agent the property and rights conveyed or assigned pursuant
      to
      the Collateral Documents, or which may facilitate the performance of the terms
      of the Collateral Documents, or the filing, registering or recording of the
      Collateral Documents.

     

    (b)  All
      costs
      and expenses in connection with the grant of any security interests under the
      Collateral Documents, including, without limitation, reasonable legal fees
      and
      other reasonable costs and expenses in connection with the granting, perfecting
      and maintenance of any security interests under the Collateral Documents or
      the
      preparation, execution, delivery, recordation or filing of documents and any
      other acts as the Administrative Agent may reasonably request in connection
      with
      the grant of such security interests, shall be paid by the Borrower promptly
      upon demand.

     

    (c)  The
      Borrower shall not, and shall not permit any of its Subsidiaries to, enter
      into
      or become subject to any agreement which would impair their ability to comply,
      or which would purport to prohibit them from complying, with the provisions
      of
      this Section.

     

    Section
      5.11  Control
      Accounts; Approved Deposit Accounts

     

    (a)  The
      Borrower shall, and shall cause each other Loan Party to, (i) deposit in an
      Approved Deposit Account all cash they receive, (ii) not establish or maintain
      any Securities Account that is not a Control Account and (iii) not establish
      or
      maintain any Deposit Account other than with a Deposit Account Bank; provided,
      however, that the Borrower and each other Loan Party may (i) maintain payroll,
      withholding tax and other fiduciary accounts, (ii) maintain accounts with the
      Administrative Agent, (iii) maintain “Collateral Accounts” as defined
      in and to the extent required by the New Senior Secured Note Indenture and
      (iv)
      maintain other accounts as long as the aggregate balance in all such accounts
      does not exceed $1,000,000.

     

    (b)  The
      Borrower shall, and shall cause each other Loan Party to, (i) instruct each
      Account Debtor or other Person obligated to make a payment to any of them under
      any Account or General Intangible to make payment, or to continue to make
      payment, to an Approved Deposit Account and (ii) deposit in an Approved Deposit
      Account promptly (but in any case, within 1 Business Day) upon receipt all
      Proceeds of such Accounts and General Intangibles received by the Borrower
      or
      any other Loan Party from any other Person.

     

     

    
      
        
        

      

      
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    (c)  In
      the
      event (i) the Borrower, any other Loan Party or any Deposit Account Bank shall,
      after the Effective Date, terminate an agreement with respect to the maintenance
      of an Approved Deposit Account for any reason, (ii) the Administrative Agent
      shall demand such termination as a result of the failure of a Deposit Account
      Bank to comply with the terms of the applicable Deposit Account Control
      Agreement or (iii) the Administrative Agent determines in its sole discretion
      that the financial condition of a Deposit Account Bank has materially
      deteriorated, the Borrower shall, and shall cause each other Loan Party to,
      notify all of their respective obligors that were making payments to such
      terminated Approved Deposit Account to make all future payments to another
      Approved Deposit Account.

     

    (d)  In
      the
      event (i) the Borrower, any other Loan Party or any Approved Securities
      Intermediary shall, after the Effective Date, terminate an agreement with
      respect to the maintenance of a Control Account for any reason, (ii) the
      Administrative Agent shall demand such termination as a result of the failure
      of
      an Approved Securities Intermediary to comply with the terms of the applicable
      Securities Account Control Agreement or (iii) the Administrative Agent
      determines in its sole discretion that the financial condition of an Approved
      Securities Intermediary has materially deteriorated, the Borrower shall, and
      shall cause each other Loan Party to, notify all of its obligors that were
      making payments to such terminated Control Account to make all future payments
      to another Control Account.

     

    (e)  The
      Administrative Agent may establish one or more Cash Collateral Accounts with
      such depositaries and securities intermediaries as it in its sole discretion
      shall determine.  The Borrower agrees that each such Cash Collateral
      Account shall be under the sole dominion and control of the Administrative
      Agent
      and that the Administrative Agent shall be the Entitlement Holder with respect
      to each such Cash Collateral Account that is a Securities Account and the only
      Person authorized to give Entitlement Orders with respect to each such
      Securities Account.  Without limiting the foregoing, funds on deposit
      in any Cash Collateral Account may be invested (but the Administrative Agent
      shall be under no obligation to make any such investment) in Cash Equivalents
      at
      the direction of the Administrative Agent and, except during a Cash Dominion
      Period or during the continuance of Default or an Event of Default, the
      Administrative Agent agrees with the Borrower to issue Entitlement Orders for
      such investments in Cash Equivalents as requested by the Borrower;
provided, however, that the Administrative Agent shall not
      have any responsibility for, or bear any risk of loss of, any such investment
      or
      income thereon.  None of the Borrower, any Subsidiary of the Borrower
      or any other Loan Party or Person claiming on behalf of or through the Borrower,
      any Subsidiary of the Borrower or any other Loan Party shall have any right
      to
      demand payment of any funds held in any Cash Collateral Account at any time
      prior to the termination of all outstanding Letters of Credit and the payment
      in
      full of all then outstanding and payable monetary Obligations.  The
      Administrative Agent shall apply all funds on deposit in a Cash Collateral
      Account as provided in Section 2.9(d) (Mandatory
      Prepayments).

     

    Section
      5.12  Landlord
      Waivers and Bailee’s Letters

     

    The
      Borrower shall, and shall cause each of its Subsidiaries to, deliver such
      Landlord Waivers and Bailee’s Letters as the Administrative Agent shall request
      in its sole discretion exercised reasonably.

     

     

    
      
        
        

      

      
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    Section
      5.13  Real
      Property

     

    If
      any
      Collateral is located, stored, used or held at the premises of a third party
      subject to a Lease and the Administrative Agent has not received a Landlord
      Waiver from the landlord under such Lease, the Borrower shall, and shall cause
      each of its Subsidiaries to, (i) comply in all material respects with all of
      their respective obligations under such Lease, (ii) not modify, amend, cancel,
      extend or otherwise change in any materially adverse manner any term, covenant
      or condition of such Lease, (iii) not assign or sublet such Lease if such
      assignment or sublet would have a Material Adverse Effect and (iv) provide
      the
      Administrative Agent with a copy of each notice of default under such Lease
      received by the Borrower or any Subsidiary of the Borrower immediately upon
      receipt thereof and deliver to the Administrative Agent a copy of each notice
      of
      default sent by the Borrower or any Subsidiary of the Borrower under such Lease
      simultaneously with its delivery of such notice under such Lease.

     

    Section
      5.14  Post-Effectiveness
      Matters

     

    The
      Borrower shall, and shall cause each of its Subsidiaries to, deliver each of
      the
      documents, instruments and agreements and take each of the actions set forth
      on
Schedule 5.14 within the time periods set forth on such
      Schedule.

     

    ARTICLE
      VI

     

    Negative
      Covenants

     

    The
      Borrower hereby covenants and agrees that, on and after the Effective Date
      and
      until the Revolving Credit Commitments and all Letters of Credit have terminated
      and the Loans and Reimbursement Obligations, together with interest, fees and
      all other Obligations (other than indemnities for which no claim for payment
      has
      been made) incurred hereunder and under the other Loan Documents, are paid
      in
      full:

     

    Section
      6.1  Limitation
      on Liens

     

    Neither
      the Borrower nor any Subsidiary shall create, assume or suffer to exist any
      Lien
      on any asset now owned or hereafter acquired by it, except:

     

    (a)  any
      Lien
      of the Borrower and its Subsidiaries in existence on the Effective Date and
      listed on Schedule 6.1;

     

    (b)  any
      purchase money Lien on any asset securing Indebtedness permitted by Section
      6.2(b)(i)(Limitation on Indebtedness); provided, however,
      that (i) such Lien attaches to such asset concurrently with or within 180 days
      after the acquisition thereof, (ii) such Lien shall be limited in each case
      to
      the asset so acquired, constructed or improved and (iii) such Lien shall not
      encumber any Accounts or Inventory of any Loan Party;

     

    (c)  any
      Lien
      on any asset of any Person existing at the time such Person is merged or
      consolidated with or into the Borrower or a Subsidiary, or at the time such
      Person becomes a Subsidiary or at the time such asset is acquired, in each
      case,
      pursuant to a merger, consolidation or acquisition permitted by this Agreement,
      and not created in contemplation of such event (and so long as such Lien does
      not extend to, or 

     

     

    
      
        
        

      

      
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    attach
      to
      any additional asset, as a result of (or after giving effect to) the respective
      merger or consolidation) and if securing Indebtedness, such Indebtedness is
      permitted under Section 6.2(b)(ii) (Limitation on Indebtedness);
provided, however,  that such Lien shall not
      encumber any Accounts or Inventory of any Loan Party;

     

    (d)  any
      Lien
      arising out of the refinancing, extension, renewal or refunding (including
      successive refinancings, extensions, renewals or refundings) of any Indebtedness
      secured by any Lien permitted by any of the foregoing clauses of this Section;
      provided, however, that such Indebtedness is not secured by
      any additional assets and the principal amount of such Indebtedness is not
      increased (except for the amount of any premium required to be paid pursuant
      to
      the terms of such Indebtedness, plus expenses reasonably incurred by the issuer
      of such Indebtedness, in connection with such refinancing, extension, renewal
      or
      refunding);

     

    (e)  Liens
      created by the Collateral Documents;

     

    (f)  encumbrances
      arising by reason of zoning restrictions, easements, licenses, reservations,
      covenants, rights-of-way, utility easements, building restrictions and other
      similar encumbrances on the use of Real Property not materially detracting
      from
      the value of such Real Property or not materially interfering with the ordinary
      conduct of the business conducted and proposed to be conducted at such real
      property;

     

    (g)  Liens
      to
      secure Indebtedness of a Foreign Subsidiary permitted under Section 6.2(d)
      (Limitation on Indebtedness); provided, however, that no
      such Lien shall encumber any Collateral;

     

    (h)  inchoate
      Liens for taxes, assessments or governmental charges or levies not yet due
      or
      Liens for taxes, assessments or governmental charges or levies being contested
      in good faith and by appropriate proceedings for which adequate reserves have
      been established in accordance with GAAP;

     

    (i)  Liens
      arising out of judgments, decrees or attachments not exceeding $7,500,000 in
      the
      aggregate at any time outstanding with respect to which the Borrower and/or
      its
      Subsidiaries shall in good faith be prosecuting an appeal or proceedings for
      review for which adequate reserves have been established in accordance with
      GAAP; provided, however, that no cash or other property shall
      be pledged by the Borrower or any Subsidiary as security therefor;

     

    (j)  Liens
      to
      secure Indebtedness or other obligations in an aggregate amount at no time
      exceeding $5,000,000; provided, however, that no such Lien
      shall encumber any Collateral;

     

    (k)  Liens
      created pursuant to the Existing Senior Secured Note Documents to secure the
      obligations under the Existing Senior Secured Notes and the other Existing
      Senior Secured Note Documents; and

     

    (l)  Liens
      created pursuant to the New Senior Secured Note Documents to secure the
      obligations under the New Senior Secured Notes and the other New Senior Secured
      Note Documents.

     

     

    
      
        
        

      

      
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    Section
      6.2  Limitation
      on Indebtedness

     

    The
      Borrower shall not, and shall not permit any of its Subsidiaries to, incur
      or at
      any time be liable with respect to any Indebtedness except:

     

    (a)  Indebtedness
      under this Agreement and Guaranty Obligations in respect thereto;

     

    (b)  (i)  Purchase
      money Indebtedness in an aggregate principal amount at any time outstanding
      not
      to exceed $25,000,000 incurred or assumed for the purpose of financing all
      or
      any part of the cost of acquiring, constructing or improving fixed assets and
      (ii) Indebtedness existing at the time a Person is merged or consolidated with
      or into the Borrower or a Subsidiary, or at the time such Person becomes a
      Subsidiary or at the time such asset is acquired, so long as the principal
      amount of Indebtedness under this clause (ii) does not exceed
      $25,000,000 at any time outstanding and was not incurred in contemplation of
      such merger, consolidation or asset acquisition, and any subsequent extensions,
      renewals or replacements thereof so long as the principal amount thereof is
      not
      increased above the amount outstanding immediately prior thereto (except for
      the
      amount of any premium required to be paid pursuant to the terms of such
      Indebtedness, plus expenses reasonably incurred by the issuer of such
      Indebtedness, in connection with such extension, renewal or
      replacement);

     

    (c)  Indebtedness
      of the Borrower owed to a Guarantor, or Indebtedness of a Guarantor owed to
      the
      Borrower or another Guarantor;

     

    (d)  Indebtedness
      of Foreign Subsidiaries in an aggregate amount not to exceed
      $25,000,000;

     

    (e)  Indebtedness
      of the Borrower and its Subsidiaries not otherwise permitted by this Section
      6.2 incurred after the Effective Date in an aggregate principal amount at
      any time outstanding not to exceed $10,000,000; provided,
however, that the aggregate principal amount of Indebtedness incurred
      by all Loan Parties pursuant to this clause (e) shall not exceed
      $5,000,000 at any time outstanding;

     

    (f)  (i)
      Guaranty Obligations of the Borrower or any Guarantor of Indebtedness of the
      Borrower or any other Guarantor permitted by this Section 6.2 and (ii) Guaranty
      Obligations of any Subsidiary that is not a Guarantor of Indebtedness of the
      Borrower or any of its Subsidiaries permitted by this Section
      6.2;

     

    (g)  Indebtedness
      of a Foreign Subsidiary owed to a Foreign Subsidiary;

     

    (h)  Indebtedness
      (other than Indebtedness described in clauses (j) and (l)
      below) outstanding as of the Effective Date and listed on Schedule 6.2,
      plus any subsequent extensions, renewals or replacements thereof;
provided, however, that, after giving effect to any
      extensions, renewals or replacements, Indebtedness permitted pursuant to this
      Section 6.2(h) does not exceed the respective amount listed on
Schedule 6.2 as of the Effective Date;

     

     

    
      
        
        

      

      
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    (i)  Indebtedness
      consisting of obligations in respect of performance and surety bonds and
      completion guaranties incurred (i) in the ordinary course of business not to
      exceed $500,000 in aggregate amount at any time outstanding and (ii) in
      connection with the appeal of judgments or orders rendered against the Borrower
      or any of its Subsidiaries not to exceed $7,500,000 in aggregate amount at
      any
      time outstanding;

     

    (j)  Indebtedness
      of the Borrower incurred under the Existing Senior Secured Notes and the other
      Existing Senior Secured Note Documents in an aggregate outstanding principal
      amount not to exceed $275,000,000, and Permitted Refinancings
      thereof;

     

    (k)  Indebtedness
      of the Borrower incurred under the Existing Subordinated Notes and the other
      Existing Subordinated Note Documents in an aggregate outstanding principal
      amount not to exceed $315,000,000 less the aggregate principal amount of all
      Existing Subordinated Notes exchanged for Stock in the Borrower pursuant to
      the
      Debt Swap and (ii) Qualified Subordinated Debt issued pursuant to the Debt
      Swap,
      and, in each case, Permitted Refinancings thereof; and

     

    (l)  Indebtedness
      of the Borrower incurred under the New Senior Secured Notes and the other New
      Senior Secured Note Documents in an aggregate outstanding principal amount
      not
      to exceed $150,000,000, and Permitted Refinancings thereof.

     

    Section
      6.3  Mergers,
      Etc.

     

    The
      Borrower shall not, and shall not permit any Subsidiary to, consolidate or
      merge
      with or into any other Person, or liquidate or dissolve, except:

     

    (a)  the
      merger
      of a Subsidiary into the Borrower, with the Borrower being the corporation
      surviving such merger if, after giving effect thereto, no Default shall have
      occurred and be continuing;

     

    (b)  the
      merger
      or consolidation of a Subsidiary with or into a Person other than the Borrower
      if the corporation surviving such consolidation or merger is a Subsidiary and,
      after giving effect thereto, no Default shall have occurred and be continuing;
      provided, however, that if any Person subject to such merger
      or consolidation is a Guarantor, the surviving corporation of such merger or
      consolidation shall be a Guarantor;

     

    (c)  the
      merger
      or consolidation of the Borrower with or into any other Person if the
      corporation surviving such consolidation or merger is the Borrower and, after
      giving effect thereto, no Default shall have occurred and be
      continuing;

     

    (d)  any
      Subsidiary of the Borrower may dissolve, liquidate or wind up its affairs at
      any
      time; provided, however, that if such Subsidiary is a Loan
      Party or a direct Domestic Subsidiary of a Loan Party, any assets or other
      distribution from such liquidation, dissolution or winding up shall be the
      distributed to one or more Loan Parties; and

     

     

    
      
        
        

      

      
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    (e)  any
      merger
      of a Subsidiary shall be permitted to the extent such merger constitutes an
      Asset Sale permitted by Section 6.4 below.

     

    Section
      6.4  Sales
      of Assets

     

    The
      Borrower shall not, and shall not permit any Subsidiary to, sell, convey,
      transfer, lease or otherwise dispose of, any of their respective assets or
      any
      interest therein (including the sale or factoring at maturity or collection
      of
      any accounts) to any Person, or permit or suffer any other Person to acquire
      any
      interest in any of their respective assets or issue or sell any shares of their
      Stock or any Stock Equivalents (any such disposition being an “Asset
      Sale”), except for the following:

     

    (a)  dispositions
      of inventory, cash, Cash Equivalents and other cash management investments
      and
      obsolete, unused or unnecessary equipment, in each case in the ordinary course
      of business;

     

    (b)  dispositions
      to the Borrower or a Guarantor;

     

    (c)  dispositions
      from a Subsidiary that is not a Guarantor to any other Subsidiary;

     

    (d)  dispositions
      of accounts receivable of Foreign Subsidiaries pursuant to Permitted Factoring
      Agreements; provided, that the aggregate amount of accounts receivable
      that have been sold pursuant to such Permitted Factoring Agreements and remain
      uncollected shall not exceed $30,000,000 at any time; and

     

    (e)  Asset
      Sales not otherwise permitted hereunder; provided, however,
      that (w) such Asset Sale shall not include any Collateral except in connection
      with a sale of all or substantially all of the assets of, or all or
      substantially all of the assets constituting the business of a division, branch
      or other unit of operation of, a Loan Party otherwise permitted hereunder,
      (x)
      the aggregate Net Cash Proceeds therefrom shall not exceed $35,000,000 in any
      Fiscal Year and $50,000,000 in the aggregate during the term of this Agreement,
      (y) any such Asset Sale is for at least 75% (calculated without giving effect
      to
      any assumed liabilities otherwise permitted to be incurred hereunder) in cash
      or
      Cash Equivalents or for assets which constitute or are part of businesses which
      are related to the business of the Borrower or its Subsidiaries permitted
      pursuant to Section 6.14 (Conduct of Business) and (z) the Net Cash
      Proceeds therefrom are applied to repay the Loans to the extent provided in
      Section 2.9 (Mandatory Prepayments).

     

    Section
      6.5  Restricted
      Payments

     

    The
      Borrower shall not, and shall not permit any of its Subsidiaries to, directly
      or
      indirectly, declare, order, pay, make or set apart any sum for any Restricted
      Payment, except for the following:

     

    (a)  Restricted
      Payments by any Subsidiary of the Borrower to the Borrower or any
      Guarantor;

     

    (b)  if
      such
      Subsidiary is not a Wholly-Owned Subsidiary, such Subsidiary may pay cash
      dividends to its shareholders generally so long as the Borrower 

     

     

    
      
        
        

      

      
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    or
      any
      such Subsidiary which owns the equity interest or interests in the Subsidiary
      paying such dividends receives at least its proportionate share thereof (based
      on its relative holdings of equity interests in the Subsidiary paying such
      dividends and taking into account the relative preferences, if any, of the
      various classes of equity interests in such Subsidiary);

     

    (c)  Restricted
      Payments by any Subsidiary of the Borrower that is not a Guarantor to any other
      Subsidiary of the Borrower that is not a Guarantor; and

     

    (d)  dividends
      and distributions declared and paid on the common Stock of the Borrower and
      payable only in common Stock of the Borrower.

     

    Section
      6.6  Investments

     

    Neither
      the Borrower nor any Subsidiary shall hold, make or acquire, or consummate
      or
      agree to consummate, any Investment except:

     

    (a)  the
      Borrower and its Subsidiaries may acquire and hold accounts receivables owing
      to
      any of them, if created or acquired in the ordinary course of business and
      payable or dischargeable in accordance with customary terms;

     

    (b)  the
      Borrower and its Subsidiaries may acquire and hold cash and Cash Equivalents
      held in an Approved Deposit Account or a Control Account or otherwise in
      compliance with Section 5.11 (Control Accounts; Approved Deposit
      Accounts);

     

    (c)  the
      Borrower and its Subsidiaries may enter into Hedging Contracts which are
      (i) determined in good faith by the Borrower to be non-speculative in
      nature or (ii) entered into in the ordinary course of business consistent
      with past practice;

     

    (d)  any
      Guarantor may make intercompany loans and advances to, and other Investments
      in
      the Borrower or any other Guarantor, and the Borrower may make intercompany
      loans and advances to, and other Investments in any Guarantor;

     

    (e)  any
      Subsidiary may make Investments to the extent permitted by Section 6.3
      (Mergers, Etc.);

     

    (f)  any
      Foreign Subsidiary may make any Investment in any other Foreign
      Subsidiary;

     

    (g)  the
      Borrower and its Subsidiaries may acquire and own Investments received in
      connection with the bankruptcy or reorganization of suppliers and customers
      and
      in settlement of delinquent obligations of, and other disputes with, customers
      and suppliers arising in the ordinary course of business;

     

    (h)  the
      Loan
      Parties may make Investments in Foreign Subsidiaries and Foreign Joint Ventures
      in an aggregate amount not to exceed (i) from the Initial Closing Date through
      any date prior to the consummation of the Debt Swap, $7,500,000 and (ii) from
      the Initial Closing Date through any date from and after the consummation of
      the
      Debt Swap, $10,000,000;

     

     

    
      
        
        

      

      
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    (i)  the
      Loan
      Parties may make additional Investments (any such Investment permitted by this
      clause (i), a “Permitted Acquisition”); provided,
however, that (i) immediately after any such Permitted
      Acquisition is
      consummated, the sum, without duplication, of the aggregate amount expended
      by
      the Loan Parties with respect to Permitted Acquisitions (including the value
      of
      Stock of the Borrower used to make Permitted Acquisitions) after the Initial
      Closing Date during the term of this Agreement does not in the aggregate exceed
      the sum of (x) the proceeds of any issuance of Stock actually used to pay
      consideration owing in connection with such Permitted Acquisition, (y) the
      proceeds of any Asset Sale actually used to pay consideration owing in
      connection with such Permitted Acquisition, and (z) $3,000,000, (ii) the
      Administrative Agent shall receive at least 30 days’ prior written notice of
      such Permitted Acquisition, which notice shall include, without limitation,
      a
      reasonably detailed description of such Permitted Acquisition, (iii) such
      Permitted Acquisition shall only involve assets located in the United States
      and
      comprising a business, or those assets of a business, of the type permitted
      by
Section 6.14 (Conduct of Business), (iv) such Permitted Acquisition
      shall be consensual and shall have been approved by the Permitted Acquisition
      Target’s board of directors, (v) no additional Indebtedness or other liabilities
      shall be incurred, assumed or otherwise be reflected on a Consolidated balance
      sheet of the Borrower and the Permitted Acquisition Target after giving effect
      to such Permitted Acquisition, except (A) ordinary course trade payables and
      accrued expenses and (B) Indebtedness of the Permitted Acquisition Target
      permitted under Section 6.2(b)(ii) (Limitation on Indebtedness),
      (vi) at or prior to the closing of such Permitted Acquisition, the Borrower
      (or
      other Loan Party making such Permitted Acquisition) and the Permitted
      Acquisition Target shall have executed such documents and taken such actions
      as
      may be required under Sections 5.9(Additional Collateral and
      Guarantees) and 5.10 (Further Assurances), (vii) the Available
      Credit on each day for the 30 days immediately preceding the date of such
      Permitted Acquisition, and on the date of such Permitted Acquisition, in each
      case on a pro forma basis after giving effect to such Permitted Acquisition,
      shall be greater than $50,000,000, (viii) if such Permitted Acquisition is
      structured as an acquisition of Stock of another Person, the Borrower and/or
      another Loan Party shall own all of the Stock of the Person so acquired, (ix)
      at
      the time of such Permitted Acquisition and after giving effect thereto, (A)
      no
      Default or Event of Default shall have occurred and be continuing and (B) all
      representations and warranties contained in Article IV and in the other
      Loan Documents shall be true and correct in all material respects, (x) the
      Borrower shall have delivered to the Administrative Agent, in form and substance
      satisfactory to the Administrative Agent and the Requisite Lenders, such other
      financial information, documentation or other information relating to such
      Permitted Acquisition and Permitted Acquisition Target as the Administrative
      Agent or any Lender shall reasonably request, and (xi) at the time such
      Permitted Acquisition is consummated, the Borrower shall have delivered to
      the
      Administrative Agent an officer’s certificate certifying compliance with each of
      the foregoing and containing all information necessary for determining such
      compliance, in each case, in form and substance reasonably satisfactory to
      the
      Administrative Agent;

     

    (j)  the
      Borrower and its Subsidiaries may acquire and hold debt and/or other similar
      non-cash consideration in connection with Asset Sales permitted pursuant to
      Section 6.4(b) (Sales of Assets);

     

     

    
      
        
        

      

      
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    (k)  so
      long as
      no Default then exists or would result therefrom, in addition to the Investments
      permitted pursuant to preceding clauses (a) through (j), the Borrower and its
      Subsidiaries may make additional Investments in one or more Persons, so long
      as
      all such Investments (determined without regard to any write-downs or
      write-offs) do not exceed in aggregate amount $3,000,000 at any time
      outstanding;

     

    (l)  loans
      and
      advances to employees of the Borrower or any of its Subsidiaries in the ordinary
      course of business not to exceed $1,000,000 in aggregate principal amount at
      any
      time outstanding; and

     

    (m)  any
      Investment of the Borrower or any of its Subsidiaries existing as of the
      Effective Date and disclosed on Schedule 6.6.

     

    Section
      6.7  Transactions
      with Affiliates

     

    The
      Borrower shall not, and shall not permit any Subsidiary to, directly or
      indirectly, pay any funds to or for the account of, make any Investment in
      (whether by acquisition of stock or indebtedness, by loan, advance, transfer
      of
      property, guarantee or other agreement to pay, purchase or service, directly
      or
      indirectly, any Indebtedness, or otherwise), lease, sell, transfer or otherwise
      dispose of any assets, tangible or intangible, to, or participate in, or effect,
      any other transaction with, any Affiliate except on an arms-length basis on
      terms at least as favorable to the Borrower or such Subsidiary as could have
      been obtained from a third party that was not an Affiliate; provided,
however, that the foregoing provisions of this Section shall not
      prohibit (i) Restricted Payments to the extent permitted by Section 6.5
      (Restricted Payments), (ii) Loans made and other transactions entered into
      between the Borrower and its Subsidiaries, or between such Subsidiaries, to
      the
      extent permitted by Sections 6.2 (Indebtedness) and 6.6
      (Investments), (iii) transactions among the Borrower and the Guarantors,
      (iv) transactions among Foreign Subsidiaries, (v) reasonable fees and
      compensation paid to, and indemnities provided on behalf of, officers, directors
      and employees of the Borrower and its Subsidiaries as determined in good faith
      by the board of directors of the Borrower or an authorized executive officer,
      as
      the case may be, or (vi) so long as no Default has occurred and is continuing,
      payments by the Borrower, not exceeding $500,000 in the aggregate in any Fiscal
      Year, required to be made to Tekni-Plex Partners LLC or MST/TP Partners LLC
      or
      their respective affiliates, partners or members.

     

    Section
      6.8  Limitation
      on Restrictions Affecting Subsidiaries

     

    Neither
      the Borrower nor any of its Subsidiaries shall enter into, or suffer to exist,
      any agreement with any Person, other than this Agreement or the other Loan
      Documents, which prohibits or limits the ability of any Subsidiary to (a) pay
      dividends or make other distributions to, or pay any Indebtedness owed to,
      the
      Borrower or any Subsidiary, (b) make loans or advances to the Borrower or any
      Subsidiary, (c) transfer any of its properties or assets to the Borrower or
      any
      Subsidiary or (d) create, incur, assume or suffer to exist any Lien upon any
      of
      its property, assets or revenues, whether now owned or hereafter
      acquired  (other than, in the case of clause (c) or
(d) above, with respect to assets subject to consensual Liens
      permitted
      under Section 6.1 (Limitation on Liens)); provided,
however, that the foregoing shall not apply to (i) restrictions
      existing under or by reason of applicable law, (ii) customary provisions
      restricting subletting or assignment of any lease governing a leasehold interest
      of the Borrower or a Subsidiary of the Borrower, (iii) customary provisions
      restricting assignment of any licensing agreement entered into by the Borrower
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    of
      business, (iv) restrictions in effect on the Initial Closing Date contained
      in
      the New Senior Secured Note Indenture, the Existing Senior Secured Note
      Indenture and, so long as any Existing Subordinated Notes remain outstanding,
      the Existing Subordinated Notes Indenture, as the case may be, or in any
      Permitted Refinancing thereof, (v) restrictions applicable to an acquired entity
      or its assets in effect at the acquisition thereof by the Borrower or a
      Subsidiary and not incurred (or modified) in contemplation of such acquisition,
      and (vi) customary provisions contained in an agreement which has been entered
      into for the sale or disposition of all or substantially all of the capital
      stock or assets of any Subsidiary to the extent such sale is permitted pursuant
      to Section 6.4 (Sale of Assets).

     

    Section
      6.9  Limitation
      on Issuance of Capital Stock

     

    (a)  Borrower
      shall not issue (i) any preferred stock (other than Qualified Preferred Stock)
      or (ii) any redeemable common Stock (except to the extent redeemable only at
      the
      option of the Borrower).

     

    (b)  No
      Subsidiary of the Borrower shall issue, or permit any of their Subsidiaries
      to
      issue, any Stock (including by way of sales of treasury stock) or any Stock
      Equivalents, except (i) for transfers and replacements of then outstanding
      shares of Stock, (ii) for stock splits, stock dividends and additional issuances
      which do not decrease the percentage ownership of the Borrower or any of its
      Subsidiaries in any class of the Stock of such Subsidiary and (iii) to qualify
      directors or issuances to foreign nationals, in each case to the extent required
      by applicable law; provided, however, the foregoing shall not
      prohibit Investments in Foreign Joint Ventures and Domestic Joint Ventures
      permitted pursuant to Sections 6.6(h)(Investments) and
6.6(k) (Investments), respectively.

     

    Section
      6.10  Limitation
      on Voluntary Payments and Modifications of Indebtedness and Preferred Stock
      Documents

     

    The
      Borrower shall not, and shall not permit any of its Subsidiaries
      to:

     

    (a)  make
      (or
      give any notice in respect of) any voluntary or optional payment or prepayment
      on or redemption, repurchase or acquisition for value of (including, without
      limitation, by way of depositing with the trustee with respect thereto or any
      other Person money or securities before due for the purpose of paying when
      due)
      any New Senior Secured Note (it being understood that such notes may be
      exchanged for new New Senior Secured Notes in accordance with the exchange
      provisions of the New Senior Secured Notes Documents), any Existing Senior
      Secured Note (it being understood that such notes may be exchanged for new
      Existing Senior Secured Notes in accordance with the exchange provisions of
      the
      Existing Senior Secured Note Documents), any Existing Subordinated Note or
      any
      Series A Preferred Stock, except that (i) the Borrower may make voluntary or
      optional payments or prepayments not otherwise permitted by this clause
      (a) in connection with Permitted Refinancings, (ii) the Borrower may
      consummate the Debt Swap and (iii) the Borrower may exchange any Existing Senior
      Secured Notes or New Senior Secured Notes for its common Stock, its Qualified
      Preferred Stock or any combination thereof;

     

    (b)  amend
      or
      modify, or permit the amendment or modification of, any provision of any New
      Senior Secured Note Document, Existing Senior Secured Note Document or the
      Existing Subordinated Note Document, except (i) if only the respective

     

     

    
      
        
        

      

      
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    trustee’s
      consent is required pursuant to the respective indenture, the consent of the
      Administrative Agent (and not the Requisite Lenders) shall be required to permit
      any of the foregoing, (ii) if consent of any noteholders is required pursuant
      to
      the respective indenture, the consent of the Requisite Lenders shall be required
      to permit any of the foregoing, and (iii) no consent of the Administrative
      Agent
      or any Lender shall be required in connection with (A) amendments or
      modifications to permit the forbearance contemplated by the Forbearance
      Agreement that are not materially adverse to the Borrower, any of its
      Subsidiaries, the Administrative Agent or any Lender and (B) any amendment
      or
      modification that does not materially increase the obligations of the Borrower
      or any of its Subsidiaries or confer additional rights to the holders of the
      Existing Senior Secured Notes, the New Senior Secured Notes or the Existing
      Subordinated Notes, as the case may be, in each case in a manner materially
      adverse to the Borrower, any of its Subsidiaries, the Administrative Agent
      or
      any Lender; and

     

    (c)  amend
      or
      modify, or permit the amendment or modification of, any Series A Preferred
      Stock
      Document if the effect of such amendment or modification is to: (i) increase
      the
      dividend on such Series A Preferred Stock; (ii) change the dates of redemption
      or dates upon which payments of dividends are due on such Series A Preferred
      Stock other than to extend such dates; (iii) change any default or event of
      default therein other than to delete or make less restrictive any default
      provision therein, or add any covenant with respect thereto; (iv) change the
      redemption or prepayment provisions of such Series A Preferred Stock other
      than
      to extend the dates therefor or to reduce the premiums payable in connection
      therewith; or (v) change or amend any other term if such change or amendment
      would materially increase the obligations of the Borrower or confer additional
      rights to the holder of such Series A Preferred Stock in a manner materially
      adverse to the Borrower, any of its Subsidiaries, the Administrative Agent
      or
      any Lender.

     

    Section
      6.11  Limitation
      on Fixed-Price Contracts

     

    Excluding
      contracts, purchase orders and arrangements in respect of which and to the
      extent the Borrower or any Subsidiary has entered into non-speculative Hedging
      Contracts, the Borrower shall not, and shall not permit any of its Subsidiaries
      to, enter into any contract, purchase order or other arrangement providing
      for
      delivery more than 15 months after the effective date thereof pursuant to which
      the Borrower or any Subsidiary agrees to manufacture, produce, supply, sell,
      distribute or otherwise transfer any material or product at a fixed price that
      may not be adjusted to reflect fluctuations in market conditions and such
      Person’s cost of goods sold if the aggregate contract price to be paid under all
      such arrangements during any Fiscal Year would exceed 10% of the consolidated
      net sales of the Borrower and its Subsidiaries during such year.

     

    Section
      6.12  End
      of Fiscal Years; Fiscal Quarters

     

    The
      Borrower shall not, for financial reporting purposes, cause (i) any of its
      Fiscal Years to end on any day other than the Friday closest to the last
      Business Day in June of each year or (ii) any of its Fiscal Quarters to end
      on
      any day other than the Friday closest to the last Business Day in each
      September, December, March and June; provided, however, that
      the Borrower may make one election after the Effective Date to change the end
      of
      its Fiscal Year and Fiscal Quarters upon at least 30 days’ prior written notice
      to the Administrative Agent and subject to the Borrower entering into such
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    shall
      request to reflect such change, such that the applicable provisions of this
      Agreement affected by such change shall have the same effect (or, in any case,
      be substantively no less favorable to the Lenders, in the determination of
      the
      Administrative Agent) after giving effect thereto as if such change were not
      made.  The Lenders hereby authorize the Administrative Agent to enter
      into such amendments to effect such modifications, if any, in accordance with
      the provisions of this Section.

     

    Section
      6.13  Designated
      Senior Indebtedness, Etc.

     

    The
      Borrower shall not designate any Indebtedness (other than the Obligations)
      as
“Designated Senior Debt” (as defined in the Existing Subordinated Note
      Indenture); it being understood and agreed, however, to the extent that the
      Indebtedness incurred under the New Senior Secured Note Documents or the
      Existing Senior Secured Note Documents is deemed to have been incurred under
      the
“Credit Agreement” for purposes of the Existing Subordinated Note Indenture, the
      New Senior Secured Note Documents or the Existing Senior Secured Note Documents,
      as the case may be, also may constitute “Designated Senior Debt” as defined in
      the Existing Subordinated Note Indenture; provided, however,
      that at all times prior to such time as when the Revolving Credit Commitments
      and all Letters of Credit have been terminated and all outstanding Loans,
      together with interest, fees and other Obligations incurred hereunder have
      been
      paid in full in cash in accordance with the terms hereof, no holder of a
      Existing Senior Secured Note nor the trustee in respect thereof may exercise
      any
      rights as a holder of Designated Senior Debt under the Existing Subordinated
      Note Indenture, including, without limitation, giving (and the terms of the
      Existing Senior Secured Note Indenture shall expressly provide that no such
      Person may give) any “Payment Blockage Notice” pursuant to Section 8.02(a) or
      12.02(a) of the Existing Subordinated Note Indenture commencing, a “Payment
      Blockage Period” thereunder.  The Borrower shall not designate any
      Indebtedness (other than the Obligations and the New Senior Secured Notes)
      as
“Priority Lien Debt” (or any similar term) (as defined in the Existing Senior
      Secured Note Indenture).  The Borrower shall not designate any
      Indebtedness (other than the Obligations) as “ABL Facility Priority Lien Debt”
(or any similar term) (as defined in the New Senior Secured Note
      Indenture).

     

    Section
      6.14  Conduct
      of Business

     

    The
      Borrower shall not, and shall not permit any of its Subsidiaries to, engage
      in
      any line or lines of business activity other than those engaged in on the
      Effective Date and any other line or lines of business activity involving the
      manufacture and distribution of packaging products and materials, plastics
      products and materials, specialty chemicals, other disposable products, and
      related materials and related businesses.

     

    Section
      6.15  Modification
      of Constituent Documents

     

    The
      Borrower shall not, and shall not permit any Subsidiary of the Borrower to,
      change its capital structure (including in the terms of its outstanding Stock)
      or otherwise amend its Constituent Documents, except for changes and amendments
      that do not materially affect the rights and privileges of the Borrower or
      any
      Subsidiary of the Borrower and do not materially affect the interests of the
      Administrative Agent, the Lenders and the Issuers under the Loan Documents
      or in
      the Collateral; provided, however, that issuances of Qualified
      Preferred Stock permitted under Section 6.9 (Limitation on Issuance of
      Capital Stock) and the Debt Swap shall be permitted as contemplated
      herein.

     

     

    
      
        
        

      

      
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    Section
      6.16  Capital
      Expenditures 

     

    The
      Borrower shall not, and shall not permit its Subsidiaries to, make or incur,
      or
      permit to be made or incurred, Capital Expenditures during each of the fiscal
      periods set forth below to be, in the aggregate, in excess of the maximum amount
      set forth below for such fiscal period:

     

    
      	
              Fiscal
                Period:

            	
              Maximum
                Capital Expenditures

            
	 	 
	
              December
                29, 2007 – end of Fiscal
                Quarter ending closest to June 30,
                2008

            	
              $23,000,000

            
	 	 
	
              Beginning
                of Fiscal Quarter
                beginning closest to July 1, 2008 - end of Fiscal Quarter ending
                closest
                to June 30,
                2009

            	
              $33,000,000

            
	 	 
	
              Beginning
                of Fiscal Quarter
                beginning closest to July 1, 2009 through the Scheduled Termination
                Date

            	
              $22,000,000

            

    

    

     

    provided,
      however, that to the extent that actual Capital Expenditures for any
      such fiscal period shall be less than the maximum amount set forth above for
      such fiscal period (without giving effect to the carryover permitted by this
      proviso), 75% of the difference between said stated maximum amount and such
      actual Capital Expenditures shall, in addition, be available for Capital
      Expenditures in the next succeeding fiscal period.

     

    Section
      6.17  Minimum
      Consolidated EBITDA

     

    The
      Borrower shall have, as of the last day of each Fiscal Quarter set forth below,
      Consolidated EBITDA for the four Fiscal Quarters ending on such day (or with
      respect to the Fiscal Quarters ending on or before September 30, 2008, the
      period commencing on December 29, 2007 and ending on the last day of such Fiscal
      Quarter) of not less than the following:

    

    
      	 Fiscal
              Quarter Ending Nearest To:	
              Minimum
                Consolidated EBITDA 

            
	
              June
                30,
                2008

            	
              $29,000,000
                

            
	
              September
                30,
                2008

            	
              $48,000,000

            
	
              December
                31,
                2008

            	
              $71,000,000

            
	
              March
                31,
                2009

            	
              $81,000,000

            
	
              June
                30,
                2009

            	
              $87,000,000

            
	
              September
30,
                2009

            	
              $90,000,000

            
	
              December
                31,
                2009

            	
              $90,000,000

            

    

     

    
 

    
      
        
        

      

      
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    ARTICLE
      VII

     

    Events
      of Default

     

    Section
      7.1  Events
      of Default

     

    Each
      of
      the following events shall be an Event of Default:

     

    (a)  the
      Borrower shall fail to pay any principal of any Loan or any Reimbursement
      Obligation when the same becomes due and payable; or

     

    (b)  the
      Borrower shall fail to pay any interest on any Loan, any fee under any of the
      Loan Documents or any other Obligation (other than one referred to in
clause (a) above) and such non-payment continues for a period of
      three Business Days after the due date therefor; or

     

    (c)  any
      representation or warranty made or deemed made by any Loan Party in any Loan
      Document or by any Loan Party (or any of its officers) in connection with any
      Loan Document shall prove to have been incorrect in any material respect when
      made or deemed made; or

     

    (d)  any
      Loan
      Party shall fail to perform or observe (i) any term, covenant or agreement
      contained in Sections 5.1(f) (Information), 5.4 (Conduct of
      Business and Maintenance of Existence) (with respect to maintenance of
      existence only), 5.6 (Inspections of Property, Books and Records) (with
      respect to the first two sentences only), 5.7 or Article VI or
Section 2.9 of the Security Agreement, (ii) any term, covenant
      or
      agreement contained in Sections 5.1(g) (Information) or 5.1(n)
      if such failure under this clause (ii) shall remain unremedied for
      5 days after the earlier of (A) the date on which a Responsible Officer of
      the Borrower becomes aware of such failure and (B) the date on which
      written notice thereof shall have been given to the Borrower by the
      Administrative Agent or any Lender, (iii) any term, covenant or agreement
      contained in Sections 5.1(a) (Information), 5.1(b)
      (Information), 5.1(c) (Information), 5.1(d)
      (Information), 5.1(k) (Information), 5.1(l)
      (Information), 5.6 (Inspections of Property, Books and Records),
5.9 (Additional Collateral and Guarantees), 5.11 (Control Accounts;
      Approved Deposit Accounts)or 5.14 (Post-Effectiveness Matters) or
Section 2.6 of the Security Agreement if such failure under this
      clause (iii) shall remain unremedied for 15 days after the earlier
      of (A) the date on which a Responsible Officer of the Borrower becomes
      aware of such failure and (B) the date on which written notice thereof
      shall have been given to the Borrower by the Administrative Agent or any Lender,
      or (iv) any other term, covenant or agreement contained in this Agreement
      or in any other Loan Document if such failure under this
clause (iv) shall remain unremedied for 30 days after the earlier
      of (A) the date on which a Responsible Officer of the Borrower becomes
      aware of such failure and (B) the date on which written notice thereof
      shall have been given to the Borrower by the Administrative Agent or any Lender;
      or

     

    (e)  (i)  the
      Borrower or any Subsidiary of the Borrower shall fail to make any payment on
      any
      Indebtedness of the Borrower or any such Subsidiary (other than the Obligations)
      or any Guaranty Obligation in respect of Indebtedness of any other Person,
      and,
      in each case, such failure relates to Indebtedness having a principal amount
      of
      $5,000,000 or more, when the same becomes due and payable (whether by scheduled
      

     

     

    
      
        
        

      

      
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    maturity,
      required prepayment, acceleration, demand or otherwise), (ii) any other
      event shall occur or condition shall exist under any agreement or instrument
      relating to any such Indebtedness, if the effect of such event or condition
      is
      to accelerate, or to permit the acceleration of, the maturity of such
      Indebtedness or (iii) any such Indebtedness shall become or be declared to
      be due and payable, or be required to be prepaid or repurchased (other than
      by a
      regularly scheduled required prepayment), prior to the stated maturity thereof;
      provided, however, that (except for purposes of delivering a
      notice of exclusive control or similar notice in accordance with the terms
      of
      any Deposit Account Control Agreement) prior to the consummation of the Debt
      Swap, a Subordinated Note Default shall not constitute an Event of Default
      under
      this clause (e); or

     

    (f)  (i)  the
      Borrower or any Subsidiary of the Borrower shall generally not pay its debts
      as
      such debts become due, shall admit in writing its inability to pay its debts
      generally or shall make a general assignment for the benefit of creditors,
      (ii) any proceeding shall be instituted by or against the Borrower or any
      Subsidiary of the Borrower seeking to adjudicate it bankrupt or insolvent,
      or
      seeking liquidation, winding up, reorganization, arrangement, adjustment,
      protection, relief or composition of it or its debts, under any Requirement
      of
      Law relating to bankruptcy, insolvency or reorganization or relief of debtors,
      or seeking the entry of an order for relief or the appointment of a custodian,
      receiver, trustee or other similar official for it or for any substantial part
      of its property; provided, however, that, in the case of any
      such proceedings instituted against the Borrower or any Subsidiary of the
      Borrower (but not instituted by the Borrower or any Subsidiary of the Borrower),
      either such proceedings shall remain undismissed or unstayed for a period of
      60
      days or more or any action sought in such proceedings shall occur or (iii)
      the
      Borrower or any Subsidiary of the Borrower shall take any corporate action
      to
      authorize any action set forth in clauses (i) and (ii)
      above; or

     

    (g)  one
      or
      more judgments or orders (or other similar process) involving money judgments
      in
      an aggregate amount exceeding $5,000,000, to the extent not covered by
      insurance, shall be rendered against one or more of the Borrower and its
      Subsidiaries and either (i) enforcement proceedings shall have been
      commenced by any creditor upon such judgment or order or (ii) there shall
      be any period of 20 consecutive days during which a stay of enforcement of
      such
      judgment or order, by reason of a pending appeal or otherwise, shall not be
      in
      effect; or

     

    (h)  an
      ERISA
      Event shall occur and the amount of all liabilities and deficiencies resulting
      therefrom, whether or not assessed, exceeds $1,000,000 in the aggregate;
      or

     

    (i)  any
      provision of any Loan Document after delivery thereof shall for any reason
      fail
      or cease to be valid and binding on, or enforceable against, any Loan Party
      party thereto, or any Loan Party shall so state in writing; or

     

    (j)  any
      Collateral Document shall for any reason fail or cease to create a valid and
      enforceable Lien on any Collateral purported to be covered thereby or, except
      as
      permitted by the Loan Documents, such Lien shall fail or cease to be a perfected
      and first priority Lien, or any Loan Party shall so state in writing;
      or

     

     

    
      
        
        

      

      
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    (k)  Any
      of the
      Obligations shall cease to constitute (i) “ABL Facility Priority Lien Debt” as
      such term is defined in, and for purposes of, the New Senior Secured Note
      Indenture, (ii) “Priority Lien Debt” as such term is defined in, and for
      purposes of, the Existing Senior Secured Note Indenture or (iii) “Senior Debt”
and “Designated Senior Debt,” as such terms are defined in, and for purposes of,
      the Existing Subordinated Note Indenture, or any Loan Party shall so state
      any
      of the foregoing in writing, in each case, so long as Indebtedness under the
      New
      Senior Secured Note Indenture, Existing Senior Secured Note Indenture or
      Existing Subordinated Note Indenture, as the case may be, or any Permitted
      Refinancing of any of the foregoing, as applicable, is outstanding;
      or

     

    (l)  there
      shall occur any Change of Control; or

     

    (m)  any
      “Change of Control” as defined in the New Senior Secured Note Indenture arises
      in connection with the Debt Swap that results in the holders of $5,000,000
      or
      more in principal amount of the Senior Secured Notes exercising their put rights
      under the New Senior Secured Note Indenture, and such Senior Secured Notes
      are
      not purchased or redeemed within 5 Business Days by the Borrower solely with
      the
      proceeds of the issuance of common Stock, Qualified Preferred Stock, Qualified
      Subordinated Debt or Permitted Refinancing Debt; or

     

    (n)  one
      or
      more of the Borrower and the Subsidiaries of the Borrower shall have entered
      into one or more consent or settlement decrees or agreements or similar
      arrangements with a Governmental Authority or one or more judgments, orders,
      decrees or similar actions shall have been entered against one or more of the
      Borrower and the Subsidiaries of the Borrower based on or arising from the
      violation of or pursuant to any Environmental Law, or the generation, storage,
      transportation, treatment, disposal or Release of any Hazardous Substance and,
      in connection with all the foregoing, the Borrower or any Subsidiary of the
      Borrower is likely to incur Environmental Liabilities exceeding $5,000,000
      individually or $20,000,000 in the aggregate that were not reflected in the
      Projections or the Financial Statements delivered pursuant to Section
      4.4(Financial Information) prior to the Effective Date;
      or

     

    (o)  any
      of the
      following shall have occurred: (i) the Debt Swap shall not have been consummated
      on or prior to May 13, 2008 (the “Debt Swap Default Date”), (ii) at any
      time the Forbearance Agreement ceases to be in full force and effect prior
      to
      the consummation of the Debt Swap or (iii) there is a valid acceleration of
      the
      Existing Subordinated Notes or exercise of any remedies by (A) the indenture
      trustee under the Existing Subordinated Note Indenture or (B) the holders of
      25%
      or more of the aggregate principal amount of the Existing Subordinated
      Notes.

     

    Section
      7.2  Remedies

     

    During
      the
      continuance of any Event of Default, the Administrative Agent (a) may, and,
      at the request of the Requisite Lenders, shall, by notice to the Borrower
      declare that all or any portion of the Revolving Credit Commitments be
      terminated, whereupon the obligation of each Lender to make any Loan and each
      Issuer to Issue any Letter of Credit shall immediately terminate and
      (b) may, and, at the request of the Requisite Lenders, shall, by notice to
      the Borrower, declare the Loans, all interest thereon and all other amounts
      and
      Obligations payable 

     

     

    
      
        
        

      

      
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    under
      this
      Agreement to be forthwith due and payable, whereupon the Loans, all such
      interest and all such amounts and Obligations shall become and be forthwith
      due
      and payable, without presentment, demand, protest or further notice of any
      kind,
      all of which are hereby expressly waived by the Borrower; provided,
      however, that upon the occurrence of the Events of Default specified in
Section 7.1(f) (Events of Default), (x) the Revolving Credit
      Commitments of each Lender to make Loans and the commitments of each Lender
      and
      Issuer to Issue or participate in Letters of Credit shall each automatically
      be
      terminated and (y) the Loans, all such interest and all such amounts and
      Obligations shall automatically become and be due and payable, without
      presentment, demand, protest or any notice of any kind, all of which are hereby
      expressly waived by the Borrower.  In addition to the remedies set
      forth above, the Administrative Agent may exercise any remedies provided for
      by
      the Collateral Documents in accordance with the terms thereof or any other
      remedies provided by applicable law.

     

    Section
      7.3  Actions
      in Respect of Letters of Credit

     

    At
      any
      time (i) upon the Revolving Credit Termination Date, (ii) after the
      Revolving Credit Termination Date when the aggregate funds on deposit in Cash
      Collateral Accounts shall be less than 105% of the Letter of Credit Obligations,
      or (iii) as may be required by Section 2.9(b) or (c) (Mandatory
      Prepayments), the Borrower shall pay to the Administrative Agent in
      immediately available funds at the Administrative Agent’s office referred to in
Section 9.8 (Notices, Etc.), for deposit in a Cash Collateral
      Account, (x) in the case of clauses (i) and (ii) above, the amount
      required to that, after such payment, the aggregate funds on deposit in the
      Cash
      Collateral Accounts equals or exceeds 105% of the sum of all outstanding Letter
      of Credit Obligations and (y) in the case of clause (iii)
      above, the amount required by Section 2.9(b) or (d) (Mandatory
      Prepayments).  The Administrative Agent may, from time to time
      after funds are deposited in any Cash Collateral Account, apply funds then
      held
      in such Cash Collateral Account to the payment of any amounts, in accordance
      with Section 2.9(d) (Mandatory Prepayments) and
Section 2.13(g) (Payments and Computations), as shall have become
      or shall become due and payable by the Borrower to the Issuers or Lenders in
      respect of the Letter of Credit Obligations.  The Administrative Agent
      shall promptly give written notice of any such application; provided,
however, that the failure to give such written notice shall not
      invalidate any such application.

     

    Section
      7.4  Rescission

     

    If
      at any
      time after termination of the Revolving Credit Commitments or acceleration
      of
      the maturity of the Loans, the Borrower shall pay all arrears of interest and
      all payments on account of principal of the Loans and Reimbursement Obligations
      that shall have become due otherwise than by acceleration (with interest on
      principal and, to the extent permitted by law, on overdue interest, at the
      rates
      specified herein) and all Events of Default and Defaults (other than non-payment
      of principal of and accrued interest on the Loans due and payable solely by
      virtue of acceleration) shall be remedied or waived pursuant to
Section 9.1 (Amendments, Waivers, Etc.), then upon the written
      consent of the Requisite Lenders and written notice to the Borrower, the
      termination of the Revolving Credit Commitments or the acceleration and their
      consequences may be rescinded and annulled; provided, however,
      that such action shall not affect any subsequent Event of Default or Default
      or
      impair any right or remedy consequent thereon.  The provisions of the
      preceding sentence are intended merely to bind the Lenders and the Issuers
      to a
      decision that may be made at the election of the Requisite Lenders, and such
      provisions are not intended to benefit the Borrower and do not give the Borrower
      the right to require the Lenders to rescind or annul any acceleration hereunder,
      even if the conditions set forth herein are met.

     

     

    
      
        
        

      

      
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    ARTICLE
      VIII

     

    The
      Administrative Agent; The Agents

     

    Section
      8.1  Authorization
      and Action

     

    (a)  Each
      Lender and each Issuer hereby appoints Citicorp as the Administrative Agent
      hereunder and each Lender and each Issuer authorizes the Administrative Agent
      to
      take such action as agent on its behalf and to exercise such powers under this
      Agreement and the other Loan Documents as are delegated to the Administrative
      Agent under such agreements and to exercise such powers as are reasonably
      incidental thereto.  Without limiting the foregoing, each Lender and
      each Issuer hereby authorizes the Administrative Agent to execute and deliver,
      and to perform its obligations under, each of the Loan Documents to which the
      Administrative Agent is a party, to exercise all rights, powers and remedies
      that the Administrative Agent may have under such Loan Documents and, in the
      case of the Collateral Documents, to act as agent for the Lenders, Issuers
      and
      the other Secured Parties under such Collateral Documents.  Each
      Lender and each Issuer hereby appoints GECC as the Syndication Agent hereunder,
      and authorizes the Syndication Agent to act in its capacity on behalf of such
      Lender and such Issuer in accordance with the terms of this Agreement and the
      other Loan Documents.

     

    (b)  As
      to any
      matters not expressly provided for by this Agreement and the other Loan
      Documents (including enforcement or collection), the Administrative Agent shall
      not be required to exercise any discretion or take any action, but shall be
      required to act or to refrain from acting (and shall be fully protected in
      so
      acting or refraining from acting) upon the instructions of the Requisite
      Lenders, and such instructions shall be binding upon all Lenders and each
      Issuer; provided, however, that the Administrative Agent shall
      not be required to take any action that (i) the Administrative Agent in
      good faith believes exposes it to personal liability unless the Administrative
      Agent receives an indemnification satisfactory to it from the Lenders and the
      Issuers with respect to such action or (ii) is contrary to this Agreement
      or applicable law.  The Administrative Agent agrees to give to each
      Lender and each Issuer a copy of each notice and each financial statement,
      Borrowing Base Certificate and other report given to it by any Loan Party
      pursuant to the terms of this Agreement or the other Loan
      Documents.

     

    (c)  In
      performing its functions and duties hereunder and under the other Loan
      Documents, the Administrative Agent is acting solely on behalf of the Lenders
      and the Issuers except to the limited extent provided in
Section 2.7(c)(Evidence of Debt), and its duties are entirely
      administrative in nature.  The Administrative Agent does not assume
      and shall not be deemed to have assumed any obligation other than as expressly
      set forth herein and in the other Loan Documents or any other relationship
      as
      the agent, fiduciary or trustee of or for any Lender, Issuer or holder of any
      other Obligation.  The Administrative Agent may perform any of its
      duties under any Loan Document by or through its agents or
      employees.

     

    (d)  The
      Arranger and the Syndication Agent shall have no obligations or duties
      whatsoever in such capacity under this Agreement or any other Loan Document
      and
      shall incur no liability hereunder or thereunder in such capacity.

     

    
      
        
        

      

      
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    Section
      8.2  Administrative
      Agent’s Reliance, Etc.

     

    None
      of
      the Administrative Agent, any of its Affiliates or any of their respective
      directors, officers, agents or employees shall be liable for any action taken
      or
      omitted to be taken by it, him, her or them under or in connection with this
      Agreement or the other Loan Documents, except for its, his, her or their own
      gross negligence or willful misconduct.  Without limiting the
      foregoing, the Administrative Agent (a) may treat the payee of any
      Revolving Credit Note as its holder until such Revolving Credit Note has been
      assigned in accordance with Section 9.2 (Assignments and
      Participations), (b) may rely on the Register to the extent set forth
      in Section 2.7 (Evidence of Debt), (c) may consult with legal
      counsel (including counsel to the Borrower or any other Loan Party), independent
      public accountants and other experts selected by it and shall not be liable
      for
      any action taken or omitted to be taken in good faith by it in accordance with
      the advice of such counsel, accountants or experts, (d) makes no warranty
      or representation to any Lender or Issuer and shall not be responsible to any
      Lender or Issuer for any statements, warranties or representations made by
      or on
      behalf of the Borrower or any of its Subsidiaries in or in connection with
      this
      Agreement or any other Loan Document, (e) shall not have any duty to
      ascertain or to inquire either as to the performance or observance of any term,
      covenant or condition of this Agreement or any other Loan Document, as to the
      financial condition of any Loan Party or as to the existence or possible
      existence of any Default or Event of Default, (f) shall not be responsible
      to any Lender or Issuer for the due execution, legality, validity,
      enforceability, genuineness, sufficiency or value of, or the attachment,
      perfection or priority of any Lien created or purported to be created under
      or
      in connection with, this Agreement, any other Loan Document or any other
      instrument or document furnished pursuant hereto or thereto and (g) shall
      incur no liability under or in respect of this Agreement or any other Loan
      Document by acting upon any notice, consent, certificate or other instrument
      or
      writing (which writing may be a telecopy or electronic mail) or any telephone
      message believed by it to be genuine and signed or sent by the proper party
      or
      parties.

     

    Section
      8.3  Posting
      of Approved Electronic Communications

     

    (a)  Each
      of
      the Lenders, the Issuers and the Borrower agree, and the Borrower shall cause
      each Guarantor to agree, that the Administrative Agent may, but shall not be
      obligated to, make the Approved Electronic Communications available to the
      Lenders and Issuers by posting such Approved Electronic Communications on
      IntraLinksTM or a substantially similar electronic platform chosen by the
      Administrative Agent to be its electronic transmission system (the “Approved
      Electronic Platform”).

     

    (b)  Although
      the Approved Electronic Platform and its primary web portal are secured with
      generally-applicable security procedures and policies implemented or modified
      by
      the Administrative Agent from time to time (including, as of the Effective
      Date,
      a dual firewall and a User ID/Password Authorization System) and the Approved
      Electronic Platform is secured through a single-user-per-deal authorization
      method whereby each user may access the Approved Electronic Platform only on
      a
      deal-by-deal basis, each of the Lenders, the Issuers, and the Borrower
      acknowledges and agrees, and the Borrower shall cause each Guarantor to
      acknowledge and agree, that the distribution of material through an electronic
      medium is not necessarily secure and that there are confidentiality and other
      risks associated with such distribution.  In consideration for the
      convenience and other benefits afforded by such distribution and for the other
      consideration provided hereunder, the receipt and sufficiency of which is hereby
      acknowledged, each of the Lenders, the Issuers, and the Borrower hereby
      approves, and 

     

     

    
      
        
        

      

      
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    the
      Borrower shall cause each Guarantor to approve, distribution of the Approved
      Electronic Communications through the Approved Electronic Platform and
      understands and assumes, and the Borrower shall cause each Guarantor to
      understand and assume, the risks of such distribution.

     

    (c)  The
      Approved Electronic Platform and the Approved Electronic Communications are
      provided “as is” and “as available”.  None of the Administrative Agent
      or any of its Affiliates or any of their respective officers, directors,
      employees, agents, advisors or representatives (the “Agent Affiliates”)
      warrant the accuracy, adequacy or completeness of the Approved Electronic
      Communications or the Approved Electronic Platform and each expressly disclaims
      liability for errors or omissions in the Approved Electronic Platform and the
      Approved Electronic Communications.  No warranty of any kind, express,
      implied or statutory, including, without limitation, any warranty of
      merchantability, fitness for a particular purpose, non-infringement of third
      party rights or freedom from viruses or other code defects, is made by the
      Agent
      Affiliates in connection with the Approved Electronic Platform or the Approved
      Electronic Communications.

     

    (d)  Each
      of
      the Lenders, the Issuers, and the Borrower agree, and the Borrower shall cause
      each Guarantor to agree, that the Administrative Agent may, but (except as
      may
      be required by applicable law) shall not be obligated to, store the Approved
      Electronic Communications on the Approved Electronic Platform in accordance
      with
      the Administrative Agent’s generally-applicable document retention procedures
      and policies.

     

    Section
      8.4  The
      Administrative Agent Individually

     

    With
      respect to its Ratable Portion, each Agent shall have and may exercise the
      same
      rights and powers hereunder and is subject to the same obligations and
      liabilities as and to the extent set forth herein for any other
      Lender.  The terms “Lenders”, “Requisite Lenders”
and any similar terms shall, unless the context clearly
      otherwise indicates,
      include, without limitation, each Agent in its individual capacity as a Lender,
      a Lender or as one of the Requisite Lenders.  Each Agent and each of
      its Affiliates may accept deposits from, lend money to, and generally engage
      in
      any kind of banking, trust or other business with, any Loan Party as if such
      Agent were not acting as Agent.

     

    Section
      8.5  Lender
      Credit Decision

     

    Each
      Lender and each Issuer acknowledges that it shall, independently and without
      reliance upon any Agent or any other Lender conduct its own independent
      investigation of the financial condition and affairs of the Borrower and each
      other Loan Party in connection with the making and continuance of the Loans
      and
      with the issuance of the Letters of Credit.  Each Lender and each
      Issuer also acknowledges that it shall, independently and without reliance
      upon
      any Agent 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 decisions
      in
      taking or not taking action under this Agreement and other Loan
      Documents.  Except for documents expressly required by any Loan
      Document to be transmitted by any Agent to the Lenders or the Issuers, no Agent
      shall have any duty or responsibility to provide any Lender or any Issuer with
      any credit or other information concerning the business, prospects, operations,
      property, financial and other condition or creditworthiness of any Loan Party
      or
      any Affiliate of any Loan Party that may come 

     

    
      
        
        

      

      
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    into
      the
      possession of the Administrative Agent or any Affiliate thereof or any employee
      or agent of any of the foregoing.

     

    Section
      8.6  Indemnification

     

    Each
      Lender agrees to indemnify the Administrative Agent and each of its Affiliates,
      and each of their respective directors, officers, employees, agents and advisors
      (to the extent not reimbursed by the Borrower), from and against such Lender’s
      aggregate Ratable Portion of any and all liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses and disbursements
      (including fees, expenses and disbursements of financial and legal advisors)
      of
      any kind or nature whatsoever that may be imposed on, incurred by, or asserted
      against, the Administrative Agent or any of its Affiliates, directors, officers,
      employees, agents and advisors in any way relating to or arising out of this
      Agreement or the other Loan Documents or any action taken or omitted by the
      Administrative Agent under this Agreement or the other Loan Documents;
provided, however, that no Lender shall be liable for any
      portion of such liabilities, obligations, losses, damages, penalties, actions,
      judgments, suits, costs, expenses or disbursements resulting from the
      Administrative Agent’s or such Affiliate’s gross negligence or willful
      misconduct.  Without limiting the foregoing, each Lender agrees to
      reimburse the Administrative Agent promptly upon demand for its ratable share
      of
      any out-of-pocket expenses (including fees, expenses and disbursements of
      financial and legal advisors) 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 its rights or responsibilities
      under, this Agreement or the other Loan Documents, to the extent that the
      Administrative Agent is not reimbursed for such expenses by the Borrower or
      another Loan Party.

     

    Section
      8.7  Successor
      Administrative Agent

     

    The
      Administrative Agent may resign at any time by giving written notice thereof
      to
      the Lenders and the Borrower.  Upon any such resignation, the
      Requisite Lenders shall have the right to appoint a successor Administrative
      Agent.  If no successor Administrative Agent shall have been so
      appointed by the Requisite Lenders, and shall have accepted such appointment,
      within 30 days after the retiring Administrative Agent’s giving of notice of
      resignation, then the retiring Administrative Agent may, on behalf of the
      Lenders, appoint a successor Administrative Agent, selected from among the
      Lenders.  In either case, such appointment shall be subject to the
      prior written approval of the Borrower (which approval may not be unreasonably
      withheld and shall not be required upon the occurrence and during the
      continuance of an Event of Default).  Upon the acceptance of any
      appointment as Administrative Agent by a successor Administrative Agent, such
      successor Administrative Agent shall succeed to, and become vested with, all
      the
      rights, powers, privileges and duties of the retiring Administrative Agent,
      and
      the retiring Administrative Agent shall be discharged from its duties and
      obligations under this Agreement and the other Loan Documents.  Prior
      to any retiring Administrative Agent’s resignation hereunder as Administrative
      Agent, the retiring Administrative Agent shall take such action as may be
      reasonably necessary to assign to the successor Administrative Agent its rights
      as Administrative Agent under the Loan Documents.  After such
      resignation, the retiring Administrative Agent shall continue to have the
      benefit of this Article VIII as to any actions taken or omitted to
      be taken by it while it was Administrative Agent under this Agreement and the
      other Loan Documents.

     

     

    
      
        
        

      

      
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    Section
      8.8  Concerning
      the Collateral and the Collateral Documents

     

    (a)  Each
      Lender and each Issuer agrees that any action taken by the Administrative Agent
      or the Requisite Lenders (or, where required by the express terms of this
      Agreement, a greater proportion of the Lenders) in accordance with the
      provisions of this Agreement or of the other Loan Documents, and the exercise
      by
      the Administrative Agent or the Requisite Lenders (or, where so required, such
      greater proportion) of the powers set forth herein or therein, together with
      such other powers as are reasonably incidental thereto, shall be authorized
      and
      binding upon all of the Lenders, Issuers and other Secured
      Parties.  Without limiting the generality of the foregoing, the
      Administrative Agent shall have the sole and exclusive right and authority
      to
      (i) act as the disbursing and collecting agent for the Lenders and the
      Issuers with respect to all payments and collections arising in connection
      herewith and with the Collateral Documents, (ii) execute and deliver each
      Collateral Document and accept delivery of each such agreement delivered by
      the
      Borrower or any of its Subsidiaries, (iii) act as collateral agent for the
      Lenders, the Issuers and the other Secured Parties for purposes of the
      perfection of all security interests and Liens created by such agreements and
      all other purposes stated therein, provided, however, that the
      Administrative Agent hereby appoints, authorizes and directs each Lender and
      Issuer to act as collateral sub-agent for the Administrative Agent, the Lenders
      and the Issuers for purposes of the perfection of all security interests and
      Liens with respect to the Collateral, including any Deposit Accounts maintained
      by a Loan Party with, and cash and Cash Equivalents held by, such Lender or
      such
      Issuer, (iv) manage, supervise and otherwise deal with the Collateral,
      including the making of Protective Advances in an aggregate amount not to exceed
      the lesser of $4,000,000 and the aggregate amount of the unused Revolving Credit
      Commitments; provided, however, that Protective Advances shall
      not remain outstanding for more than 180 consecutive days and at least 30 days
      shall elapse without any Protective Advances being outstanding following each
      and every repayment in full of outstanding Protective Advances, (v) take
      such action as is necessary or desirable to maintain the perfection and priority
      of the security interests and Liens created or purported to be created by the
      Collateral Documents and (vi) except as may be otherwise specifically
      restricted by the terms hereof or of any other Loan Document, exercise all
      remedies given to the Administrative Agent, the Lenders, the Issuers and the
      other Secured Parties with respect to the Collateral under the Loan Documents
      relating thereto, applicable law or otherwise.

     

    (b)  Each
      of
      the Lenders and the Issuers hereby consents to the release and hereby directs,
      in accordance with the terms hereof, the Administrative Agent to release (or,
      in
      the case of clause (i) below, release or subordinate) any Lien
      held by the Administrative Agent for the benefit of the Lenders and the Issuers
      against any of the following:

     

    (i)  all
      of the
      Collateral and all Loan Parties, upon termination of the Revolving Credit
      Commitments and payment and satisfaction in full of all Loans, all Reimbursement
      Obligations and all other Obligations that the Administrative Agent has been
      notified in writing are then due and payable (and, in respect of contingent
      Letter of Credit Obligations, with respect to which cash collateral has been
      deposited or a back-up letter of credit has been issued, in either case in
      the
      appropriate currency and on terms satisfactory to the Administrative Agent
      and
      the applicable Issuer); and

     

     

    
      
        
        

      

      
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    (ii)  any
      part
      of the Collateral sold or disposed of by a Loan Party if such sale or
      disposition is permitted by this Agreement (or permitted pursuant to a waiver
      of
      or consent to a transaction otherwise prohibited by this
      Agreement).

     

    Each
      of
      the Lenders and the Issuers hereby directs the Administrative Agent to execute
      and deliver or file such termination and partial release statements and do
      such
      other things as are necessary to release Liens to be released pursuant to this
      Section 8.8 promptly upon the effectiveness of any such
      release.

     

    Section
      8.9  Collateral
      Matters Relating to Related Obligations

     

    The
      benefit of the Loan Documents and of the provisions of this Agreement relating
      to the Collateral shall extend to and be available in respect of any Secured
      Obligation arising under any Hedging Contract or Cash Management Obligation
      or
      that is otherwise owed to Persons other than the Administrative Agent, the
      Lenders and the Issuers (collectively, “Related Obligations”) solely on
      the condition and understanding, as among the Administrative Agent and all
      Secured Parties, that (a) the Related Obligations shall be entitled to the
      benefit of the Loan Documents and the Collateral to the extent expressly set
      forth in this Agreement and the other Loan Documents and to such extent the
      Administrative Agent shall hold, and have the right and power to act with
      respect to, the Guaranty and the Collateral on behalf of and as agent for the
      holders of the Related Obligations, but the Administrative Agent is otherwise
      acting solely as agent for the Lenders and the Issuers and shall have no
      fiduciary duty, duty of loyalty, duty of care, duty of disclosure or other
      obligation whatsoever to any holder of Related Obligations, (b) all
      matters, acts and omissions relating in any manner to the Guaranty, the
      Collateral, or the omission, creation, perfection, priority, abandonment or
      release of any Lien, shall be governed solely by the provisions of this
      Agreement and the other Loan Documents and no separate Lien, right, power or
      remedy shall arise or exist in favor of any Secured Party under any separate
      instrument or agreement or in respect of any Related Obligation, (c) each
      Secured Party shall be bound by all actions taken or omitted, in accordance
      with
      the provisions of this Agreement and the other Loan Documents, by the
      Administrative Agent and the Requisite Lenders, each of whom shall be entitled
      to act at its sole discretion and exclusively in its own interest given its
      own
      Revolving Credit Commitments and its own interest in the Loans, Letter of Credit
      Obligations and other Obligations to it arising under this Agreement or the
      other Loan Documents, without any duty or liability to any other Secured Party
      or as to any Related Obligation and without regard to whether any Related
      Obligation remains outstanding or is deprived of the benefit of the Collateral
      or becomes unsecured or is otherwise affected or put in jeopardy thereby,
      (d) no holder of Related Obligations and no other Secured Party (except the
      Agents, the Lenders and the Issuers, to the extent set forth in this Agreement)
      shall have any right to be notified of, or to direct, require or be heard with
      respect to, any action taken or omitted in respect of the Collateral or under
      this Agreement or the Loan Documents and (e) no holder of any Related
      Obligation shall exercise any right of setoff, banker’s lien or similar right
      except to the extent provided in Section 9.6 (Right of Set-off),
      and then only to the extent such right is exercised in compliance with
Section 9.7 (Sharing of Payments, Etc.).

     

     

    
      
        
        

      

      
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    ARTICLE
      IX

     

    Miscellaneous

     

    Section
      9.1  Amendments,
      Waivers, Etc.

     

    (a)  No
      amendment or waiver of any provision of this Agreement or any other Loan
      Document (other than the Fee Letter, the Supplemental Fee Letter, the Deposit
      Account Control Agreements, the Securities Account Control Agreements, the
      Letter of Credit Reimbursement Agreements and the Cash Management Documents)
      nor
      consent to any departure by any Loan Party therefrom shall in any event be
      effective unless the same shall be in writing and (x) in the case of an
      amendment to cure any ambiguity, omission, defect or inconsistency, signed
      by
      the Administrative Agent and the Borrower, (y) in the case of any such
      waiver or consent signed by the Requisite Lenders (or by the Administrative
      Agent with the consent of the Requisite Lenders) and (z) in the case of any
      other amendment, by the Requisite Lenders (or by the Administrative Agent with
      the consent of the Requisite Lenders ) and the Borrower, and then any such
      waiver or consent shall be effective only in the specific instance and for
      the
      specific purpose for which given; provided, however, that no
      amendment, waiver or consent shall, unless in writing and signed by each Lender
      directly affected thereby, in addition to the Requisite Lenders (or the
      Administrative Agent with the consent thereof), do any of the
      following:

     

    (i)  waive
      any
      condition specified in Section 3.1 (Conditions Precedent to
      Effectiveness) or 3.2(b) (Conditions Precedent to Each Loan and Letter
      of Credit), except with respect to a condition based upon another provision
      hereof, the waiver of which requires only the concurrence of the Requisite
      Lenders and, in the case of the conditions specified in Section 3.1
      (Conditions Precedent to Effectiveness), subject to the provisions of
Section 3.3 (Determinations of Initial Borrowing
      Conditions);

     

    (ii)  increase
      the Revolving Credit Commitment of such Lender or subject such Lender to any
      additional obligation;

     

    (iii)  extend
      the
      scheduled final maturity of any Loan owing to such Lender, or waive, reduce
      or
      postpone any scheduled date fixed for the payment or reduction of principal
      or
      interest of any such Loan or fees owing to such Lender (it being understood
      that
Section 2.9 (Mandatory Prepayments) does not provide for scheduled
      dates fixed for payment) or for the reduction of such Lender’s Revolving Credit
      Commitment;

     

    (iv)  reduce,
      or
      release the Borrower from its obligations to repay, the principal amount of
      any
      Loan or Reimbursement Obligation owing to such Lender (other than by the payment
      or prepayment thereof);

     

    (v)  reduce
      the
      rate of interest on any Loan or Reimbursement Obligation outstanding and owing
      to such Lender or any fee payable hereunder to such Lender;

     

    (vi)  expressly
      subordinate any of the Secured Obligations or any Lien securing the Secured
      Obligations;

     

    
      
        
        

      

      
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    (vii)  postpone
      any scheduled date fixed for payment of interest or fees owing to such Lender
      or
      waive any such payment;

     

    (viii)  change
      the
      aggregate Ratable Portions of Lenders required for any or all Lenders to take
      any action hereunder;

     

    (ix)  release
      all or substantially all of the Collateral except as provided in
Section 8.8(b) (Concerning the Collateral and the Collateral
      Documents) or release the Borrower from its payment obligation to such
      Lender under this Agreement or the Revolving Credit Notes owing to such Lender
      (if any) or release any Guarantor from its obligations under the Guaranty except
      in connection with the sale or other disposition of a Guarantor (or all or
      substantially all of the assets thereof) permitted by this Agreement (or
      permitted pursuant to a waiver or consent of a transaction otherwise prohibited
      by this Agreement);

     

    (x)  increase
      any of the percentages set forth in the definition of “Tranche A Borrowing
      Base” and “Tranche A-1 Borrowing Base” above the maximum
      percentages stated in such definition on the Effective Date or decrease the
      dollar amount set forth in the definition of “Borrowing Base Reserve”
below the dollar amount stated in such definition on the Effective
      Date;
      or

     

    (xi)  amend
      Section 8.8(b) (Concerning the Collateral and the Collateral Documents),
      Section 9.7 (Sharing of Payments, Etc.), this Section 9.1 or either
      definition of the terms “Requisite Lenders” or “Ratable Portion”;

     

    and
      provided, further, that (w) no amendment, waiver or
      consent shall, unless in writing and signed by any Special Purpose Vehicle
      that
      has been granted an option pursuant to Section 9.2(e) (Assignments and
      Participations), affect the grant or nature of such option or the right or
      duties of such Special Purpose Vehicle hereunder, (x) no amendment, waiver
      or consent shall, unless in writing and signed by the Administrative Agent
      in
      addition to the Lenders required above to take such action, affect the rights
      or
      duties of the Administrative Agent under this Agreement or the other Loan
      Documents, (y) no amendment, waiver or consent shall, unless in writing and
      signed by the Swing Loan Lender in addition to the Lenders required above to
      take such action, affect the rights or duties of the Swing Loan Lender under
      this Agreement or the other Loan Documents and (z) prior to the
      consummation of the Debt Swap, no amendment, waiver or consent shall, unless
      in
      writing and signed by the Requisite Lenders, reduce or eliminate any Eligibility
      Reserve established hereunder and provided, further, that the
      Administrative Agent may, with the consent of the Borrower, amend, modify or
      supplement this Agreement to cure any ambiguity, omission, defect or
      inconsistency, so long as such amendment, modification or supplement does not
      adversely affect the rights of any Lender or any Issuer.

     

    (b)  The
      Administrative Agent may, but shall have no obligation to, with the written
      concurrence of any Lender, execute amendments, modifications, waivers or
      consents on behalf of such Lender.  Any waiver or consent shall be
      effective only in the specific instance and for the specific purpose for which
      it was given.  No notice to or demand on the Borrower in any case
      shall entitle the Borrower to any other or further notice or demand in similar
      or other circumstances.

     

    (c)  If,
      in
      connection with any proposed amendment, modification, waiver or termination
      requiring the consent of Requisite Lenders, all Lenders or all 

     

     

    
      
        
        

      

      
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    affected
      Lenders, the consent of Majority Lenders is obtained but the consent of other
      Lenders whose consent is required is not obtained (any such Lender whose consent
      is not obtained as described in this Section 9.1 being referred to as a
“Non-Consenting Lender”), then, as long as the Lender acting as the
      Administrative Agent is not a Non-Consenting Lender, at the Borrower’s request,
      any Eligible Assignee acceptable to the Administrative Agent shall have the
      right with the Administrative Agent’s consent and in the Administrative Agent’s
      sole discretion (but shall have no obligation) to purchase from such
      Non-Consenting Lender, and such Non-Consenting Lender agrees that it shall,
      upon
      the Administrative Agent’s request, sell and assign to the Lender acting as the
      Administrative Agent or such Eligible Assignee, all of the Revolving Credit
      Commitments, and Revolving Credit Outstandings of such Non-Consenting Lender
      for
      an amount equal to the principal balance of all Loans held by the Non-Consenting
      Lender and all accrued and unpaid interest and fees with respect thereto through
      the date of sale; provided, however, that such purchase and
      sale shall be recorded in the Register maintained by the Administrative Agent
      and shall not be effective until (x) the Administrative Agent shall have
      received from such Eligible Assignee an agreement in form and substance
      satisfactory to the Administrative Agent and the Borrower whereby such Eligible
      Assignee shall agree to be bound by the terms hereof and (y) such
      Non-Consenting Lender shall have received payments of all Loans held by it
      and
      all accrued and unpaid interest and fees with respect thereto through the date
      of the sale.  Each Lender agrees that, if it becomes a Non-Consenting
      Lender, it shall execute and deliver to the Administrative Agent an Assignment
      an Acceptance to evidence such sale and purchase and shall deliver to the
      Administrative Agent any Revolving Credit Note (if the assigning Lender’s Loans
      are evidenced by a Revolving Credit Note) subject to such Assignment and
      Acceptance; provided, however, that the failure of any
      Non-Consenting Lender to execute an Assignment and Acceptance shall not render
      such sale and purchase (and the corresponding assignment) invalid and such
      assignment shall be recorded in the Register.

     

    Section
      9.2  Assignments
      and Participations

     

    (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 without the prior written consent of the Administrative
      Agent and each Lender and no Lender or Issuer may assign or otherwise transfer
      any of its rights or obligations hereunder except (i) to an assignee in
      accordance with the provisions of clauses (b) and (h) below,
      (ii) by way of participation in accordance with the provisions of clause
      (g) below or (iii) by way of a grant to a Special Purpose Vehicle or a
      pledge or assignment of a security interest subject to the restrictions of
      clause (f) below (and any other attempted assignment or transfer by any
      party hereto shall be null and void).  Nothing in this Agreement,
      express or implied, shall be construed to confer upon any Person (other than
      the
      parties hereto, their respective successors and permitted assigns, Participants
      to the extent provided in clause (g) below, Special Purpose Vehicles to
      the extent provided in clause (f) below and, to the extent expressly
      contemplated hereby, each of the Administrative Agent, the Lenders and the
      Issuers, their respective Affiliates and each of their respective partners,
      directors, officers, employees, agents, trustee, representatives, attorneys,
      consultants and advisors) any legal or equitable right, remedy or claim under
      or
      by reason of this Agreement.

     

     

    
      
        
        

      

      
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    (b)  Each
      Lender may at any time assign to one or more Eligible Assignees all or a portion
      of its rights and obligations hereunder (including all or a portion of its
      Revolving Credit Commitment and the Revolving Loans in respect of the Tranche
      A
      Facility or Tranche A-1 Facility, as applicable, at the time owing to it and
      all
      of its rights and obligations with respect to the Swing Loans and Letters of
      Credit); provided, however, that any such assignment shall be
      subject to the following conditions:

     

    (i)  (A)  in
      the case of an assignment of the entire remaining amount of the assigning
      Lender’s Revolving Credit Commitment and the Revolving Loans and Swing Loans at
      the time owing to it or in the case of an assignment to a Lender, an Affiliate
      of a Lender or an Approved Fund, no minimum amount need be assigned and (B)
      in
      any case not described in clause (b)(i)(A) above, the aggregate amount
      of the Revolving Credit Commitment (which for this purpose includes the
      Revolving Credit Outstandings thereunder) or, if the applicable Revolving Credit
      Commitment is not then in effect, the principal outstanding balance of the
      Revolving Credit Outstandings of the assigning Lender subject to each such
      assignment (determined as of the effective date of the Assignment and Acceptance
      with respect to such assignment) shall not be less than $5,000,000, unless
      each
      of the Administrative Agent and, so long as no Event of Default shall have
      occurred and be continuing, the Borrower otherwise consents (each such consent
      not to be unreasonably withheld or delayed).

     

    (ii)  Each
      partial assignment shall be made as an assignment of a proportionate part of
      all
      the assigning Lender’s rights and obligations under this Agreement with respect
      to the Revolving Credit Outstandings and the Revolving Credit Commitment
      assigned.

     

    (iii)  No
      consent
      shall be required for any assignment except to the extent required by clause
      (b)(i)(B) above and, in addition:

     

    (A)  the
      consent of the Borrower (such consent not to be unreasonably withheld or
      delayed) shall be required unless (x) an Event of Default shall have occurred
      and be continuing at the time of such assignment, (y) such assignment is to
      a
      Lender, an Affiliate of a Lender or an Approved Fund or (z) such assignment
      is
      by an Affiliate of the Administrative Agent made within 15 Business Days after
      the Effective Date of its Revolving Credit Commitment held on the Effective
      Date;

     

    (B)  the
      consent of the Administrative Agent (such consent not to be unreasonably
      withheld or delayed) shall be required for assignments to a Person who is not
      a
      Lender, an Affiliate of a Lender or an Approved Fund;

     

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

     

    (D)  The
      consent of the Swing Loan Lender (such consent not to be unreasonably withheld
      or delayed) shall be required for any assignment in respect of the Swing Loans;
      and

     

     

    
      
        
        

      

      
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    (iv)  The
      parties to each assignment shall execute and deliver to the Administrative
      Agent, for its acceptance and recording in the Register, an Assignment and
      Acceptance, together with (A) a processing and recordation fee of $3,500 (unless
      such processing and recordation fee is waived or reduced by the Administrative
      Agent in its sole discretion) and (B) any Revolving Credit Note (if the
      assigning Lender’s Loans are evidenced by a Revolving Credit Note), subject to
      such assignment.  The assignee, if it is not a Lender, shall deliver
      to the Administrative Agent an Administrative Questionnaire.

     

    (c)  Subject
      to
      acceptance and recording thereof by the Administrative Agent in the Register
      pursuant to Section 2.7 (Evidence of Debt) and the receipt of the
      assignment fee referenced in clause (b)(iv) above, from and after the
      effective date specified in each Assignment and Acceptance, (A) the assignee
      thereunder shall be a party hereto and, to the extent of the interest assigned
      by such Assignment and Acceptance, have the rights and obligations of a Lender
      under this Agreement and, if such Lender was an Issuer, of such Issuer
      hereunder, (B) the Revolving Credit Notes (if any) corresponding to the Loans
      assigned thereby shall be transferred to such assignee by notation in the
      Register and (C) the assigning Lender thereunder shall, to the extent of the
      interest assigned by such Assignment and Acceptance, be released from its
      obligations under the Loan Documents (and, in the case of an Assignment and
      Acceptance covering all of the assigning Lender’s rights and obligations under
      the Loan Documents, such Lender shall cease to be a party hereto) but shall
      continue to be entitled to the benefits of Sections 2.14(c) (Increased
      Costs), 2.15 (Capital Adequacy), 2.16 (Taxes), 9.3
      (Costs and Expenses), 9.4 (Indemnities) and 9.5 (Limitation of
      Liability) with respect to facts and circumstances occurring prior to the
      effective date of such assignment.  Any assignment or transfer by a
      Lender of rights or obligations under this Agreement that does not comply with
      this paragraph shall be treated for purposes of this Agreement as a sale by
      such
      Lender of a participation in such rights and obligations in accordance with
      clause (g) of this Section 9.2.

     

    (d)  The
      Administrative Agent shall maintain at its address referred to in Section
      9.8 (Notices, Etc.) a copy of each Assignment and Acceptance delivered to
      and accepted by it and shall record in the Register the names and addresses
      of
      the Lenders and Issuers and the principal amount of the Loans and Reimbursement
      Obligations owing to each Lender from time to time and the Revolving Credit
      Commitments of each Lender.  Any assignment pursuant to this
Section 9.2 shall not be effective until such assignment is recorded in
      the Register.

     

    (e)  Upon
      its
      receipt of an Assignment and Acceptance executed by an assigning Lender and
      an
      assignee, the Administrative Agent shall, if such Assignment and Acceptance
      has
      been completed, (i) accept such Assignment and Acceptance, (ii) record or cause
      to be recorded the information contained therein in the Register and (iii)
      give
      prompt notice thereof to the Borrower.  Within five Business Days
      after its receipt of such notice, the Borrower, at its own expense, shall,
      if
      requested by such assignee, execute and deliver to the Administrative Agent,
      new
      Revolving Credit Notes to the order of such assignee in an amount equal to
      the
      Revolving Credit Commitments assumed by it pursuant to such Assignment and
      Acceptance and, if the assigning Lender has surrendered any Revolving Credit
      Note for exchange in connection with the assignment and has retained Revolving
      Credit Commitments hereunder, new Revolving Credit Notes 

     

     

    
      
        
        

      

      
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    to
      the
      order of the assigning Lender in an amount equal to the Revolving Credit
      Commitments retained by it hereunder.  Such new Revolving Credit Notes
      shall be dated the same date as the surrendered Revolving Credit Notes and
      be in
      substantially the form of Exhibit B (Form of Revolving Credit
      Note).

     

    (f)  In
      addition to the other assignment rights provided in this Section 9.2,
      each Lender may do each of the following:

     

    (i)  grant
      to a
      Special Purpose Vehicle the option to make all or any part of any Loan that
      such
      Lender would otherwise be required to make hereunder and the exercise of such
      option by any such Special Purpose Vehicle and the making of Loans pursuant
      thereto shall satisfy (once and to the extent that such Loans are made) the
      obligation of such Lender to make such Loans thereunder, provided,
      however, that (x) nothing herein shall constitute a commitment or an offer
      to commit by such a Special Purpose Vehicle to make Loans hereunder and no
      such
      Special Purpose Vehicle shall be liable for any indemnity or other Obligation
      (other than the making of Loans for which such Special Purpose Vehicle shall
      have exercised an option, and then only in accordance with the relevant option
      agreement) and (y) such Lender’s obligations under the Loan Documents shall
      remain unchanged, such Lender shall remain responsible to the other parties
      for
      the performance of its obligations under the terms of this Agreement and shall
      remain the holder of the Obligations for all purposes hereunder;
      and

     

    (ii)  assign,
      as
      collateral or otherwise, any of its rights under this Agreement, whether now
      owned or hereafter acquired (including rights to payments of principal or
      interest on the Loans), to (A) without notice to or consent of the
      Administrative Agent or the Borrower, any Federal Reserve Bank (pursuant to
      Regulation A of the Federal Reserve Board) and (B) without consent of the
      Administrative Agent or the Borrower, (1) any holder of, or trustee for the
      benefit of, the holders of such Lender’s Securities and (2) any Special Purpose
      Vehicle to which such Lender has granted an option pursuant to clause
      (f)(i) above

     

    provided,
      however, that no such assignment or grant shall release such Lender from
      any of its obligations hereunder except as expressly provided in clause
      (i) above and except, in the case of a subsequent foreclosure pursuant to
      an assignment as collateral, if such foreclosure is made in compliance with
      the
      other provisions of this Section 9.2 other than this clause
      (f) or clause (g) below.  Each party hereto acknowledges
      and agrees that, prior to the date that is one year and one day after the
      payment in full of all outstanding commercial paper or other senior debt of
      any
      such Special Purpose Vehicle, such party shall not institute against, or join
      any other Person in instituting against, any Special Purpose Vehicle that has
      been granted an option pursuant to this clause (f) any bankruptcy,
      reorganization, insolvency or liquidation proceeding (such agreement shall
      survive the payment in full of the Obligations).  The terms of the
      designation of, or assignment to, such Special Purpose Vehicle shall not
      restrict such Lender’s ability to, or grant such Special Purpose Vehicle the
      right to, consent to any amendment or waiver to this Agreement or any other
      Loan
      Document or to the departure by the Borrower from any provision of this
      Agreement or any other Loan Document without the consent of such Special Purpose
      Vehicle except, as long as the Administrative Agent and the Lenders, Issuers
      and
      other Secured Parties shall continue to, and shall be entitled to continue
      to,
      deal solely and directly with such Lender in connection with such Lender’s
      obligations under this Agreement, to the extent any such consent would reduce
      the principal amount of, or the rate of interest on, any Obligations, amend
      this
      clause (f) or postpone any scheduled date of payment of such principal or
      interest.  Each Special 

     

     

    
      
        
        

      

      
        109

        
          

        

      

      
        
        

      

    

     

     

    Purpose
      Vehicle shall be entitled to the benefits of Sections 2.15 (Capital
      Adequacy) and 2.16 (Taxes) and of Section 2.14(d)
      (Illegality) as if it were such Lender; provided, however, that
      anything herein to the contrary notwithstanding, the Borrower shall not, at
      any
      time, be obligated to make under Section 2.15 (Capital Adequacy),
2.16 (Taxes) or 2.14(d) (Illegality) to any such Special
      Purpose Vehicle and any such Lender any payment in excess of the amount the
      Borrower would have been obligated to pay to such Lender in respect of such
      interest if such Special Purpose Vehicle had not been assigned the rights of
      such Lender hereunder; and provided, further, that such Special Purpose Vehicle
      shall have no direct right to enforce any of the terms of this Agreement against
      the Borrower, the Administrative Agent or the other Lenders.

     

    (g)  (i)           Any
      Lender may at any time, without the consent of, or notice to, the Borrower
      or
      the Administrative Agent, sell participations to any Person (other than a
      natural person or the Borrower or any of the Borrower’s Affiliates or
      Subsidiaries) (each, a “Participant”) in all or a portion of such
      Lender’s rights and/or obligations under this Agreement (including all or a
      portion of its Revolving Credit Commitment and/or the Revolving Loans and Swing
      Loans owing to it and its rights and obligations with respect to the Letters
      of
      Credit); provided that (A) such Lender’s obligations under this Agreement shall
      remain unchanged, (B) such Lender shall remain solely responsible to the other
      parties hereto for the performance of such obligations and (C) the Borrower,
      the
      Administrative Agent, the Lenders, the Issuers and the Swing Loan Lender shall
      continue to deal solely and directly with such Lender in connection with such
      Lender’s rights and obligations under this Agreement.

     

    (ii)  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, modification or waiver that would (A) reduce the amount, or postpone
      any date fixed for, any amount (whether of principal, interest or fees) payable
      to such Participant under the Loan Documents, to which such Participant would
      otherwise be entitled under such participation or (B) result in the release
      of
      all or substantially all of the Collateral other than in accordance with
Section 8.8(b) (Concerning the Collateral and the Collateral
      Documents).  Subject to clause (i) below, the Borrower
      agrees that each Participant shall be entitled to the benefits of Section
      2.14(c) (Increased Costs), 2.15 (Capital Adequacy) or 2.16
      (Taxes) to the same extent as if it were a Lender and had acquired its
      interest by assignment pursuant to clause (b) above.  To the
      extent permitted by law, each Participant also shall be entitled to the benefits
      of Section 9.6 (Right of Set-off) as though it were a Lender, provided
      such Participant agrees to be subject to Section 9.7 (Sharing of Payments,
      Etc.) as though it were a Lender.

     

    (h)  Any
      Issuer
      may at any time assign its rights and obligations hereunder to any other Lender
      by an instrument in form and substance satisfactory to the Borrower, the
      Administrative Agent, such Issuer and such Lender, subject to the provisions
      of
Section 2.7(c) (Evidence of Debt) relating to notations of transfer in
      the Register.  If any Issuer ceases to be a Lender hereunder by virtue
      of any assignment made pursuant to this Section 9.2, then, as of the
      effective date of such cessation, such Issuer’s obligations to Issue Letters of
      Credit pursuant to Section 2.4 (Letters of Credit) shall 

     

     

    
      
        
        

      

      
        110

        
          

        

      

      
        
        

      

    

     

    terminate
      and such Issuer shall be an Issuer hereunder only with respect to outstanding
      Letters of Credit issued prior to such date.

     

    (i)  A
      Participant shall not be entitled to receive any greater payment under
Section 2.14(c) (Increased Costs), 2.15 (Capital Adequacy) or
2.16 (Taxes) 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 that would be a Non-U.S. Lender if it
      were a Lender shall not be entitled to the benefits of Section 2.16
      (Taxes) unless the Borrower is notified of the participation sold to such
      Participant and such Participant agrees, for the benefit of the Borrower, to
      comply with Section 2.16(f) (Taxes) as though it were a
      Lender.

     

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

     

    Section
      9.3  Costs
      and Expenses

     

    (a)  The
      Borrower agrees upon demand to pay, or reimburse the Administrative Agent for,
      all of the Administrative Agent’s reasonable internal and external audit, legal,
      appraisal, valuation, filing, document duplication and reproduction and
      investigation expenses and for all other reasonable out-of-pocket costs and
      expenses of every type and nature (including the reasonable fees, expenses
      and
      disbursements of the Administrative Agent’s counsel, Weil, Gotshal & Manges
      LLP, local legal counsel, auditors, accountants, appraisers, printers, insurance
      and environmental advisors, and other consultants and agents) incurred by the
      Administrative Agent in connection with any of the following: (i) the
      Administrative Agent’s audit and investigation of the Borrower and its
      Subsidiaries in connection with the preparation, negotiation or execution of
      any
      Loan Document or the Administrative Agent’s periodic audits of the Borrower or
      any of its Subsidiaries, as the case may be, (ii) the preparation,
      negotiation, execution or interpretation of this Agreement (including, without
      limitation, the satisfaction or attempted satisfaction of any condition set
      forth in Article III (Conditions to Loans and Letters of Credit)),
      any Loan Document or any proposal letter or commitment letter issued in
      connection therewith, or the making of the Loans hereunder, (iii) the
      creation, perfection or protection of the Liens under any Loan Document
      (including any reasonable fees, disbursements and expenses for local counsel
      in
      various jurisdictions), (iv) the ongoing administration of this Agreement
      and the Loans, including consultation with attorneys in connection therewith
      and
      with respect to the Administrative Agent’s rights and responsibilities hereunder
      and under the other Loan Documents, (v) the protection, collection or
      enforcement of any Obligation or the enforcement of any Loan Document,
      (vi) the commencement, defense or intervention in any court proceeding
      relating in any way to the Obligations, any Loan Party, any of the Borrower’s
      Subsidiaries, this Agreement or any other Loan Document, (vii) the response
      to, and preparation for, any subpoena or request for document production with
      which the 

     

     

    
      
        
        

      

      
        111

        
          

        

      

      
        
        

      

    

     

    Administrative
      Agent is served or deposition or other proceeding in which the Administrative
      Agent is called to testify, in each case, relating in any way to the
      Obligations, any Loan Party, any of the Borrower’s Subsidiaries, this Agreement
      or any other Loan Document or (viii) any amendment, consent, waiver,
      assignment, restatement, or supplement to any Loan Document or the preparation,
      negotiation and execution of the same.

     

    (b)  The
      Borrower further agrees to pay or reimburse each Agent and each of the Lenders
      and Issuers upon demand for all out-of-pocket costs and expenses, including
      reasonable attorneys’ fees (including allocated costs of internal counsel and
      costs of settlement), incurred by such Agent, such Lenders or such Issuers
      in
      connection with any of the following: (i) in enforcing any Loan Document or
      Obligation or any security therefor or exercising or enforcing any other right
      or remedy available by reason of an Event of Default, (ii) in connection
      with any refinancing or restructuring of the credit arrangements provided
      hereunder in the nature of a “work-out” or in any insolvency or bankruptcy
      proceeding, (iii) in commencing, defending or intervening in any litigation
      or in filing a petition, complaint, answer, motion or other pleadings in any
      legal proceeding relating to the Obligations, any Loan Party, any of the
      Borrower’s Subsidiaries and related to or arising out of the transactions
      contemplated hereby or by any other Loan Document or (iv) in taking any
      other action in or with respect to any suit or proceeding (bankruptcy or
      otherwise) described in clause (i), (ii) or
(iii) above.

     

    Section
      9.4  Indemnities

     

    (a)  The
      Borrower agrees to indemnify and hold harmless each Agent, the Arranger, each
      Lender and each Issuer (including each Person obligated on a Hedging Contract
      that is a Loan Document if such Person was a Lender or Issuer at the time of
      it
      entered into such Hedging Contract) and each of their respective Affiliates,
      and
      each of the directors, officers, employees, agents, trustees, representatives,
      attorneys, consultants and advisors of or to any of the foregoing (including
      those retained in connection with the satisfaction or attempted satisfaction
      of
      any condition set forth in Article III (Conditions to Loans and Letters
      of Credit) (each such Person being an “Indemnitee”) from and
      against any and all claims, damages, liabilities, obligations, losses,
      penalties, actions, judgments, suits, costs, disbursements and expenses, joint
      or several, of any kind or nature (including fees, disbursements and expenses
      of
      financial and legal advisors to any such Indemnitee) that may be imposed on,
      incurred by or asserted against any such Indemnitee in connection with or
      arising out of any investigation, litigation or proceeding, whether or not
      such
      investigation, litigation or proceeding is brought by any such Indemnitee or
      any
      of its directors, security holders or creditors or any such Indemnitee,
      director, security holder or creditor is a party thereto, whether direct,
      indirect, or consequential and whether based on any federal, state or local
      law
      or other statutory regulation, securities or commercial law or regulation,
      or
      under common law or in equity, or on contract, tort or otherwise, in any manner
      relating to or arising out of this Agreement, any other Loan Document, any
      Obligation, any Letter of Credit, any Related Document, or any act, event or
      transaction related or attendant to any thereof, or the use or intended use
      of
      the proceeds of the Loans or Letters of Credit or in connection with any
      investigation of any potential matter covered hereby (collectively, the
“Indemnified Matters”); provided, however, that the
      Borrower shall not have any liability under this Section 9.4 to an
      Indemnitee with respect to any Indemnified Matter 

     

    
      
        
        

      

      
        112

        
          

        

      

      
        
        

      

    

     

     

    that
      has
      resulted primarily from the gross negligence or willful misconduct of that
      Indemnitee, as determined by a court of competent jurisdiction in a final
      non-appealable judgment or order.  Without limiting the foregoing,
“Indemnified Matters” include (i) all Environmental Liabilities
      arising from or connected with the past, present or future operations of the
      Borrower or any of its Subsidiaries involving any property subject to a
      Collateral Document, or damage to real or personal property or natural resources
      or harm or injury alleged to have resulted from any Release of Hazardous
      Substances on, upon or into such property or any contiguous real estate,
      (ii) any costs or liabilities incurred in connection with any Remedial
      Action concerning the Borrower or any of its Subsidiaries, (iii) any costs
      or liabilities incurred in connection with any Environmental Lien and
      (iv) any costs or liabilities incurred in connection with any other matter
      under any Environmental Law, including the Comprehensive Environmental Response,
      Compensation and Liability Act of 1980 (49 U.S.C. § 9601 et seq.) and
      applicable state property transfer laws, whether, with respect to any such
      matter, such Indemnitee is a mortgagee pursuant to any leasehold mortgage,
      a
      mortgagee in possession, the successor in interest to the Borrower or any of
      its
      Subsidiaries, or the owner, lessee or operator of any property of the Borrower
      or any of its Subsidiaries by virtue of foreclosure, except, with respect to
      those matters referred to in clauses (i), (ii),
(iii) and (iv) above, to the extent (x) incurred
      following foreclosure by the Administrative Agent, any Lender or any Issuer,
      or
      the Administrative Agent, any Lender or any Issuer having become the successor
      in interest to the Borrower or any of its Subsidiaries and (y) attributable
      solely to acts of the Administrative Agent, such Lender or such Issuer or any
      agent on behalf of the Administrative Agent, such Lender or such
      Issuer.

     

    (b)  The
      Borrower shall indemnify the Administrative Agent, the Lenders and each Issuer
      for, and hold the Administrative Agent, the Lenders and each Issuer harmless
      from and against, any and all claims for brokerage commissions, fees and other
      compensation made against the Administrative Agent, the Lenders and the Issuers
      for any broker, finder or consultant with respect to any agreement, arrangement
      or understanding made by or on behalf of any Loan Party or any of its
      Subsidiaries in connection with the transactions contemplated by this
      Agreement.

     

    (c)  The
      Borrower, at the request of any Indemnitee, shall have the obligation to defend
      against any investigation, litigation or proceeding or requested Remedial
      Action, in each case contemplated in clause (a) above, and the
      Borrower, in any event, may participate in the defense thereof with legal
      counsel of the Borrower’s choice.  In the event that such Indemnitee
      requests the Borrower to defend against such investigation, litigation or
      proceeding or requested Remedial Action, the Borrower shall promptly do so
      and
      such Indemnitee shall have the right to have legal counsel of its choice
      participate in such defense.  No action taken by legal counsel chosen
      by such Indemnitee in defending against any such investigation, litigation
      or
      proceeding or requested Remedial Action, shall vitiate or in any way impair
      the
      Borrower’s obligation and duty hereunder to indemnify and hold harmless such
      Indemnitee.

     

    (d)  The
      Borrower agrees that any indemnification or other protection provided to any
      Indemnitee pursuant to this Agreement (including pursuant to this
      Section 9.4) or any other Loan Document shall (i) survive payment in
      full of the Obligations and (ii) inure to the benefit of any Person that
      was at any time an Indemnitee under this Agreement or any other Loan
      Document.

     

     

    
      
        
        

      

      
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    Section
      9.5  Limitation
      of Liability

     

    (a)  The
      Borrower agrees that no Indemnitee shall have any liability (whether in
      contract, tort or otherwise) to any Loan Party or any of their respective
      Subsidiaries or any of their respective equity holders or creditors for or
      in
      connection with the transactions contemplated hereby and in the other Loan
      Documents, except to the extent such liability is determined in a final
      non-appealable judgment by a court of competent jurisdiction to have resulted
      primarily from such Indemnitee’s gross negligence or willful
      misconduct.  In no event, however, shall any Indemnitee be liable on
      any theory of liability for any special, indirect, consequential or punitive
      damages (including, without limitation, any loss of profits, business or
      anticipated savings).  The Borrower hereby waives, releases and agrees
      (each for itself and on behalf of its Subsidiaries) not to sue upon any such
      claim for any special, indirect, consequential or punitive damages, whether
      or
      not accrued and whether or not known or suspected to exist in its
      favor.

     

    (b)  In
      no
      event shall any Agent Affiliate have any liability to any Loan Party, Lender,
      Issuer or any other Person for damages of any kind, including direct or
      indirect, special, incidental or consequential damages, losses or expenses
      (whether in tort or contract or otherwise) arising out of any Loan Party or
      any
      Agent Affiliate’s transmission of Approved Electronic Communications through the
      Internet or any use of the Approved Electronic Platform, except to the extent
      such liability of any Agent Affiliate is found in a final non-appealable
      judgment by a court of competent jurisdiction to have resulted primarily from
      such Agent Affiliate’s gross negligence or willful misconduct.

     

    Section
      9.6  Right
      of Set-off

     

    Upon
      the
      occurrence and during the continuance of any Event of Default each Lender and
      each Affiliate of a Lender is hereby authorized at any time and from time to
      time, 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 and other Indebtedness at any time owing by such Lender or its Affiliates
      to or for the credit or the account of the Borrower against any and all of
      the
      Obligations now or hereafter existing whether or not such Lender shall have
      made
      any demand under this Agreement or any other Loan Document and even though
      such
      Obligations may be unmatured.  Each Lender agrees promptly to notify
      the Borrower after any such set-off and application made by such Lender or
      its
      Affiliates; provided, however, that the failure to give such
      notice shall not affect the validity of such set-off and
      application.  The rights of each Lender under this
Section 9.6 are in addition to the other rights and remedies
      (including other rights of set-off) that such Lender may have.

     

    Section
      9.7  Sharing
      of Payments, Etc.

     

    (a)  If
      any
      Lender (directly or through an Affiliate thereof) obtains any payment (whether
      voluntary, involuntary, through the exercise of any right of set-off (including
      pursuant to Section 9.6 (Right of Set-off) or otherwise) of the
      Loans owing to it, any interest thereon, fees in respect thereof or amounts
      due
      pursuant to Section 9.3 (Costs and Expenses) or
9.4 (Indemnities) (other than payments pursuant to
Sections 2.14 (Special Provisions Governing Eurodollar Rate
      Loans), 2.15 (Capital Adequacy) or
2.16 (Taxes)) or otherwise receives any Collateral or any
“Proceeds” (as 

     

     

    
      
        
        

      

      
        114

        
          

        

      

      
        
        

      

    

     

    defined
      in
      the Security Agreement) of Collateral (other than payments pursuant to
Sections 2.14 (Special Provisions Governing Eurodollar Rate
      Loans), 2.15 (Capital Adequacy) or
2.16 (Taxes)) (in each case, whether voluntary, involuntary,
      through the exercise of any right of set-off (including pursuant to
Section 9.6 (Right of Set-off) or otherwise) in
      excess of its Ratable Portion of all payments of such Obligations obtained
      by
      all the Lenders, such Lender (a “Purchasing Lender”) shall forthwith
      purchase from the other Lenders (each, a “Selling Lender”) such
      participations in their Loans or other Obligations as shall be necessary to
      cause such Purchasing Lender to share the excess payment ratably with each
      of
      them.

     

    (b)  If
      all or
      any portion of any payment received by a Purchasing Lender is thereafter
      recovered from such Purchasing Lender, such purchase from each Selling Lender
      shall be rescinded and such Selling Lender shall repay to the Purchasing Lender
      the purchase price to the extent of such recovery together with an amount equal
      to such Selling Lender’s ratable share (according to the proportion of
      (i) the amount of such Selling Lender’s required repayment in relation 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.

     

    (c)  The
      Borrower agrees that any Purchasing Lender so purchasing a participation from
      a
      Selling Lender pursuant to this Section 9.7 may, to the fullest
      extent permitted by law, exercise all its rights of payment (including the
      right
      of set-off) with respect to such participation as fully as if such Lender were
      the direct creditor of the Borrower in the amount of such
      participation.

     

    Section
      9.8  Notices,
      Etc.

     

    (a)  Addresses
      for Notices.  All notices, demands, requests, consents and other
      communications provided for in this Agreement shall be given in writing, or
      by
      any telecommunication device capable of creating a written record (including
      electronic mail), and addressed to the party to be notified as
      follows:

     

    
      
        	
                (i)

              	
                if
                  to the Borrower:

              
	 	 
	 	
                Tekni-Plex,
                  Inc.

              
	 	
                201
                  Industrial Parkway

              
	 	
                Somerville,
                  New Jersey 08876

              
	 	
                Attention:

              	
                James
                  E. Condon

              
	 	 	
                Vice
                  President & Chief Financial Officer

              
	 	
                Telecopy
                  no:  (908) 722-4967

              
	 	
                E-Mail
                  Address:  james.condon@tekni-plex.com

              

      

    

     

    (ii)  if
      to any
      Lender, at its Domestic Lending Office specified opposite its name on
Schedule II (Applicable Lending Offices and Addresses for Notices)
      or on the signature page of any applicable Assignment and
      Acceptance;

     

    (iii)  if
      to any
      Issuer, at the address set forth opposite its name on Schedule II
      (Applicable Lending Offices and Addresses for Notices);

     

     

    
      
        
        

      

      
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    (iv)  if
      to the
      Syndication Agent:

     

    General
      Electric Capital Corporation

    201
      Merritt 7

    Norwalk,
      Connecticut 06851

    Attention:
      Tekni Plex Account Manager

    Telecopy
      no:  (203) 956-4239

     

    with
      a
      copy to:

     

    General
      Electric Capital Corporation

    201
      Merritt 7

    Norwalk,
      Connecticut 06851

    Attention:
      Corporate Counsel

    Telecopy
      no: (203) 956-4001

     

    (v)  if
      to the
      Administrative Agent or the Swing Loan Lender:

     

    Citicorp
      USA, Inc.

    388
      Greenwich Street

    New
      York,
      New York 10013

    Attention:  David
      Jaffe

    Telecopy
      no:  (212) 816-2613

    E-Mail
      Address:  david.jaffe@citigroup.com

     

    or
      at such
      other address as shall be notified in writing (x) in the case of the
      Borrower, the Administrative Agent and the Swing Loan Lender, to the other
      parties and (y) in the case of all other parties, to the Borrower and the
      Administrative Agent.

     

    (b)  Effectiveness
      of Notices.  All notices, demands, requests, consents and other
      communications described in clause (a) above shall be effective (i) if
      delivered by hand, including any overnight courier service, upon personal
      delivery, (ii) if delivered by mail, when deposited in the mails,
      (iii) if delivered by posting to an Approved Electronic Platform, an
      Internet website or a similar telecommunication device requiring that a user
      have prior access to such Approved Electronic Platform, website or other device
      (to the extent permitted by Section 8.3(Posting of Approved
      Electronic Communication) to be delivered thereunder), when such notice,
      demand, request, consent and other communication shall have been made generally
      available on such Approved Electronic Platform, Internet website or similar
      device to the class of Person being notified (regardless of whether any such
      Person must accomplish, and whether or not any such Person shall have
      accomplished, any action prior to obtaining access to such items, including
      registration, disclosure of contact information, compliance with a standard
      user
      agreement or undertaking a duty of confidentiality) and such Person has been
      notified that such communication has been posted to the Approved Electronic
      Platform and (iv) if delivered by electronic mail or any other
      telecommunications device, when transmitted to an electronic mail address (or
      by
      another means of electronic delivery) as provided in clause (a)
      above; provided, however, that notices and communications to
      the Administrative Agent pursuant to Article II (The Facility) or
VIII (The Administrative Agent) shall not be effective until
      received
      by the Administrative Agent.

     

     

    
      
        
        

      

      
        116

        
          

        

      

      
        
        

      

    

     

    (c)  Use
      of
      Electronic Platform.  Notwithstanding clauses (a)
      and (b) above (unless the Administrative Agent requests that the
      provisions of clause (a) and (b) above be followed) and
      any other provision in this Agreement or any other Loan Document providing
      for
      the delivery of any Approved Electronic Communication by any other means the
      Loan Parties shall deliver all Approved Electronic Communications to the
      Administrative Agent by properly transmitting such Approved Electronic
      Communications in an electronic/soft medium in a format acceptable to the
      Administrative Agent to oploanswebadmin@citigroup.com or such
      other electronic mail address (or similar means of electronic delivery) as
      the
      Administrative Agent may notify the Borrower.  Nothing in this
      clause (c) shall prejudice the right of the Administrative Agent or any
      Lender or Issuer to deliver any Approved Electronic Communication to any Loan
      Party in any manner authorized in this Agreement or to request that the Borrower
      effect delivery in such manner.

     

    Section
      9.9  No
      Waiver; Remedies

     

    No
      failure
      on the part of any Lender, Issuer or the Administrative Agent to exercise,
      and
      no delay in exercising, any right hereunder shall operate as a waiver thereof;
      nor shall any single or partial exercise of any such right preclude any other
      or
      further exercise thereof or the exercise of any other right.  The
      remedies herein provided are cumulative and not exclusive of any remedies
      provided by law.

     

    Section
      9.10  Governing
      Law

     

    This
      Agreement and the rights and obligations of the parties hereto shall be governed
      by, and construed and interpreted in accordance with, the law of the State
      of
      New York.

     

    Section
      9.11  Submission
      to Jurisdiction; Service of Process

     

    (a)  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 located in the City of
      New
      York or of the United States of America for the Southern District of New York,
      and, by execution and delivery of this Agreement, the Borrower hereby accepts
      for itself and in respect of its property, generally and unconditionally, the
      jurisdiction of the aforesaid courts.  The parties hereto hereby
      irrevocably waive any objection, including any objection to the laying of venue
      or based on the grounds of forum non conveniens, that any of them may now or
      hereafter have to the bringing of any such action or proceeding in such
      respective jurisdictions.

     

    (b)  The
      Borrower hereby irrevocably consents to the service of any and all legal
      process, summons, notices and documents in any suit, action or proceeding
      brought in the United States of America arising out of or in connection with
      this Agreement or any other Loan Document by the mailing (by registered or
      certified mail, postage prepaid) or delivering of a copy of such process to
      the
      Borrower at its address specified in Section 9.8 (Notices,
      Etc.).  The Borrower agrees that a final judgment in any such
      action or proceeding shall be conclusive and may be enforced in other
      jurisdictions by suit on the judgment or in any other manner provided by
      law.

     

    (c)  Nothing
      contained in this Section 9.11 shall affect the right of the
      Administrative Agent or any Lender to serve process in any other manner
      permitted by 

     

     

    
      
        
        

      

      
        117

        
          

        

      

      
        
        

      

    

     

    law
      or
      commence legal proceedings or otherwise proceed against the Borrower or any
      other Loan Party in any other jurisdiction.

     

    (d)  If
      for the
      purposes of obtaining judgment in any court it is necessary to convert a sum
      due
      hereunder in Dollars into another currency, the parties hereto agree, to the
      fullest extent that they may effectively do so, that the rate of exchange used
      shall be that at which in accordance with normal banking procedures the
      Administrative Agent could purchase Dollars with such other currency at the
      spot
      rate of exchange quoted by the Administrative Agent at 11:00 a.m. (New York
      time) on the Business Day preceding that on which final judgment is given,
      for
      the purchase of Dollars, for delivery two Business Days thereafter.

     

    Section
      9.12  Waiver
      of Jury Trial

     

    Each
      of
      the Agents, the Lenders, the Issuers and the Borrower irrevocably waives trial
      by jury in any action or proceeding with respect to this Agreement or any other
      Loan Document.

     

    Section
      9.13  Marshaling;
      Payments Set Aside

     

    None
      of
      the Administrative Agent, any Lender or any Issuer shall be under any obligation
      to marshal any assets in favor of the Borrower or any other party or against
      or
      in payment of any or all of the Obligations.  To the extent that the
      Borrower makes a payment or payments to the Administrative Agent, the Lenders
      or
      the Issuers or any such Person receives payment from the proceeds of the
      Collateral or exercise their rights of setoff, and such payment or payments
      or
      the proceeds of such enforcement or setoff or any part thereof are subsequently
      invalidated, declared to be fraudulent or preferential, set aside or required
      to
      be repaid to a trustee, receiver or any other party, then to the extent of
      such
      recovery, the obligation or part thereof originally intended to be satisfied,
      and all Liens, right and remedies therefor, shall be revived and continued
      in
      full force and effect as if such payment had not been made or such enforcement
      or setoff had not occurred.

     

    Section
      9.14  Section
      Titles

     

    The
      section titles contained in this Agreement are and shall be without substantive
      meaning or content of any kind whatsoever and are not a part of the agreement
      between the parties hereto, except when used to reference a
      section.  Any reference to the number of a clause, sub-clause or
      subsection hereof immediately followed by a reference in parenthesis to the
      title of the Section containing such clause, sub-clause or subsection is a
      reference to such clause, sub-clause or subsection and not to the entire
      Section; provided, however, that, in case of direct conflict
      between the reference to the title and the reference to the number of such
      Section, the reference to the title shall govern absent manifest
      error.  If any reference to the number of a Section (but not to any
      clause, sub-clause or subsection thereof) is followed immediately by a reference
      in parenthesis to the title of a Section, the title reference shall govern
      in
      case of direct conflict absent manifest error.

     

    Section
      9.15  Execution
      in Counterparts

     

    This
      Agreement may be executed in any number of counterparts and by different parties
      in separate counterparts, each of which when so executed shall be deemed to be
      an 

     

     

    
      
        
        

      

      
        118

        
          

        

      

      
        
        

      

    

     

    original
      and all of which taken together shall constitute one and the same
      agreement.  Signature pages may be detached from multiple separate
      counterparts and attached to a single counterpart so that all signature pages
      are attached to the same document.  Delivery of an executed signature
      page of this Agreement by facsimile transmission, electronic mail or by posting
      on the Approved Electronic Platform shall be as effective as delivery of a
      manually executed counterpart hereof.  A set of the copies of this
      Agreement signed by all parties shall be lodged with the Borrower and the
      Administrative Agent.

     

    Section
      9.16  Entire
      Agreement

     

    This
      Agreement, together with all of the other Loan Documents and all certificates
      and documents delivered hereunder or thereunder, embodies the entire agreement
      of the parties and supersedes all prior agreements and understandings relating
      to the subject matter hereof.  In the event of any conflict between
      the terms of this Agreement and any other Loan Document, the terms of this
      Agreement shall govern.

     

    Section
      9.17  Confidentiality

     

    Each
      Lender, each Issuer and the Agents agree to maintain the confidentiality of
      the
      Information, except that Information may be disclosed (a) to its Affiliates
      and
      to its and its Affiliates’ respective managers, administrators, trustees,
      partners, directors, officers, employees, agents, advisors and other
      representatives (it being understood that the Persons to whom such disclosure
      is
      made will be informed of the confidential nature of such Information and
      instructed to keep such Information confidential), (b) to the extent requested
      by any regulatory authority purporting to have jurisdiction over it (including
      any self-regulatory authority, such as the National Association of Insurance
      Commissioners), (c) to the extent required by applicable laws or regulations
      or
      by any subpoena or similar legal process, (d) to any other party hereto, (e)
      in
      connection with the exercise of any remedies hereunder, (f) subject to an
      agreement containing provisions substantially the same as those of this
Section 9.17, to (i) any assignee of, Participant in or Special Purpose
      Vehicle grantee of any option described in Section 9.2(e) (Assignments and
      Participations) or any prospective assignee of, Participant in or Special
      Purpose Vehicle grantee of any option described in Section 9.2(e)
      (Assignments and Participations), any of its rights or obligations under
      this Agreement or (ii) any actual or prospective party (or its managers,
      administrators, trustees, partners, directors, officers, employees, agents,
      advisors and other representatives) to any swap or derivative or similar
      transaction under which payments are to be made by reference to the Borrower
      and
      its obligations, this Agreement or payments hereunder, (iii) any rating agency
      or (iv) the CUSIP Service Bureau or any similar organization, (g) with the
      consent of the Borrower or (h) to the extent such Information (i) becomes
      publicly available other than as a result of a breach of this Section
      9.17 or (ii) becomes available to the Administrative Agent, any Lender or
      any Issuer or any of their respective Affiliates on a nonconfidential basis
      from
      a source other than the Borrower and its Subsidiaries.  Any Person
      required to maintain the confidentiality of the Information as provided in
      this
Section 9.17 shall be considered to have complied with its obligation
      to do so if such Person has exercised the same degree of care to maintain the
      confidentiality of such Information as such Person would accord to its own
      confidential information.

     

    Section
      9.18  Patriot
      Act Notice

     

    Each
      Lender subject to the Patriot Act hereby notifies the Borrower that, pursuant
      to
      Section 326 of the Patriot Act, it is required to obtain, verify and record
      information 

     

     

    
      
        
        

      

      
        119

        
          

        

      

      
        
        

      

    

     

     

    that
      identifies the Borrower and each Guarantor, including the name and address
      of
      the Borrower  and such Guarantors and other information that will
      allow such Lender to identify the Borrower and such Guarantors in accordance
      with the Patriot Act.

     

    Section
      9.19  Amendment
      and Restatement

     

    (a)  On
      the
      Effective Date, the Existing Credit Agreement shall be amended and restated
      in
      its entirety by this Agreement, and the Existing Credit Agreement shall
      thereafter be of no further force and effect, except to evidence (i) the
      incurrence by the Borrower of the “Obligations” under and as defined in the
      Existing Credit Agreement (whether or not such “Obligations” are contingent as
      of the Effective Date), (ii) the representations and warranties made by the
      Borrower prior to the Effective Date and (iii) any action or omission performed
      or required to be performed pursuant to such Existing Credit Agreement prior
      to
      the Effective Date (including any failure, prior to the Effective Date, to
      comply with the covenants contained in such Existing Credit
      Agreement).  The amendments and restatements set forth herein shall
      not cure any breach thereof or any “Default” or “Event of Default” under and as
      defined in the Existing Credit Agreement existing prior to the Effective
      Date.  This Agreement is not in any way intended to constitute a
      novation of the obligations and liabilities existing under the Existing Credit
      Agreement or evidence payment of all or any portion of such obligations and
      liabilities.

     

    (b)  The
      terms
      and conditions of this Agreement and the Agents’ and the Lenders’ rights and
      remedies under this Agreement and the other Loan Documents shall apply to all
      of
      the “Obligations” incurred under and as defined in the Existing Credit
      Agreement.

     

    (c)  On
      and
      after the Effective Date, (i) all references to the Existing Credit Agreement
      in
      the Loan Documents (other than this Agreement) shall be deemed to refer to
      the
      Existing Credit Agreement, as amended and restated hereby, (ii) all references
      to any Article, Section or sub-clause of the Existing Credit Agreement in any
      Loan Document (other than this Agreement) shall be deemed to be references
      to
      the corresponding provisions of this Agreement and (iii) except as the context
      otherwise provides, on or after the Effective Date, all references to this
      Agreement herein (including for purposes of indemnification and reimbursement
      of
      fees) shall be deemed to be references to the Existing Credit Agreement, as
      amended and restated hereby.

     

    (d)  This
      amendment and restatement is limited as written and is not a consent to any
      other amendment, restatement or waiver, whether or not similar and, except
      as
      expressly provided herein or in any other Loan Document, all terms and
      conditions of the Loan Documents remain in full force and effect unless
      otherwise specifically amended hereby or any other Loan Document.

     

    [Signature
      Pages Follow]

     

     

    
      
        
        

      

      
        120

        
          

        

      

      
        
        

      

    

    

    In
      Witness
      Whereof, the parties hereto have caused this Agreement to be executed by their
      respective officers thereunto duly authorized, as of the date first above
      written.

     

    
      
        	
                Tekni-Plex,
                  Inc.,

              	 
	
                as
                  Borrower

              	 
	 	 	 
	
                By:

              	
                /s/
                  James E. Condon

              	 
	 	
                Name:

              	
                James
                  E. Condon

              	 
	 	
                Title:

              	
                Chief
                  Financial Officer

              	 

      

    

     

    
      
        
          	
                  
                    Citicorp
                      USA, Inc.,

                  

                	 
	
                  
                    as
                      Administrative Agent, Swing Loan Lender 

                    and
                      Lender

                  

                	 
	 	 	 
	
                  By:

                	
                  /s/
                    David Jaffe

                	 
	 	
                  Name:

                	
                  David
                    Jaffe

                	 
	 	
                  Title:

                	
                  Director/Vice
                    President

                	 

        

      

      
        
           

          
            
              	
                      
                        
                          Citibank,
                            N.A.,

                        

                      

                    	 
	
                      
                        
                          as
                            Issuer

                        

                      

                    	 
	 	 	 
	
                      By:

                    	
                      /s/
                        David Jaffe

                    	 
	 	
                      Name:

                    	
                      David
                        Jaffe

                    	 
	 	
                      Title:

                    	
                      Director/Vice
                        President

                    	 

            

          

           

          
            
              
                
                  	
                          
                            
                              
                                General
                                  Electric Capital Corporation,

                              

                            

                          

                        	 
	
                          
                            
                              
                                as
                                  Syndication Agent and Lender

                              

                            

                          

                        	 
	 	 	 
	
                          By:

                        	
                          /s/
                            James Desantis

                        	 
	 	
                          Name:

                        	
                          James
                            Desantis

                        	 
	 	
                          Title:

                        	
                          Duly
                            Authorized Signatory

                        	 

                

                 

                
                  
                    
                      
                        
                          	
                                  
                                    
                                      
                                        
                                          Wells
                                            Fargo Foothill,

                                        

                                      

                                    

                                  

                                	 
	
                                  
                                    
                                      
                                        
                                          as
                                            Lender

                                        

                                      

                                    

                                  

                                	 
	 	 	 
	
                                  By:

                                	
                                  /s/
                                    Juan Barrera

                                	 
	 	
                                  Name:

                                	
                                  Juan
                                    Barrera

                                	 
	 	
                                  Title:

                                	
                                  Vice
                                    President

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