Document:

Exhibit 10.1

 

Execution Copy

 

 

$435,000,000

 

CREDIT AGREEMENT

 

Dated as of February
11, 2005,

 

Among

 

NIAGARA HOLDINGS, INC.,

 

NIAGARA ACQUISITION, INC.,

as Borrower,

 

THE LENDERS PARTY HERETO,

 

UBS AG, Stamford Branch,

as Administrative Agent,

 

JPMORGAN CHASE BANK, N.A.,

as Syndication Agent,

 

CREDIT SUISSE FIRST BOSTON,

acting through its Cayman
Islands branch,

as Co-Documentation Agent

 

and

 

GENERAL
ELECTRIC CAPITAL CORPORATION

as Co-Documentation Agent

 

 

	
  J.P. MORGAN SECURITIES
  INC.

  	
   

  	
  UBS SECURITIES LLC

  
	
  as Joint Lead Arrangers
  and as Joint Bookrunners

  

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  
	
   

  	
   

  
	
  Definitions

  
	
   

  	
   

  
	
  SECTION 1.01. Defined Terms

  	
   

  
	
  SECTION
  1.02. Terms Generally

  	
   

  
	
  SECTION
  1.03. Effectuation of Transfers

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  II

  
	
   

  	
   

  
	
  The
  Credits

  
	
   

  	
   

  
	
  SECTION
  2.01. Commitments

  	
   

  
	
  SECTION
  2.02. Loans and Borrowings

  	
   

  
	
  SECTION
  2.03. Requests for Borrowings

  	
   

  
	
  SECTION
  2.04. Swingline Loans

  	
   

  
	
  SECTION
  2.05. Letters of Credit

  	
   

  
	
  SECTION
  2.06. Funding of Borrowings

  	
   

  
	
  SECTION
  2.07. Interest Elections

  	
   

  
	
  SECTION
  2.08. Termination and Reduction of Commitments

  	
   

  
	
  SECTION
  2.09. Repayment of Loans; Evidence of Debt

  	
   

  
	
  SECTION
  2.10. Repayment of Term Loans and Revolving Facility Loans

  	
   

  
	
  SECTION
  2.11. Prepayment of Loans

  	
   

  
	
  SECTION
  2.12. Fees

  	
   

  
	
  SECTION
  2.13. Interest

  	
   

  
	
  SECTION
  2.14. Alternate Rate of Interest

  	
   

  
	
  SECTION
  2.15. Increased Costs

  	
   

  
	
  SECTION
  2.16. Break Funding Payments

  	
   

  
	
  SECTION
  2.17. Taxes

  	
   

  
	
  SECTION
  2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs

  	
   

  
	
  SECTION
  2.19. Mitigation Obligations; Replacement of Lenders

  	
   

  
	
  SECTION
  2.20. Illegality

  	
   

  
	
  SECTION
  2.21. Incremental Extensions of Credit

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  III

  
	
   

  	
   

  
	
  Representations and
  Warranties

  
	
   

  	
   

  
	
  SECTION
  3.01. Organization; Powers

  	
   

  
	
  SECTION
  3.02. Authorization

  	
   

  
	
  SECTION
  3.03. Enforceability

  	
   

  
	
  SECTION
  3.04. Governmental Approvals

  	
   

  
	
  SECTION
  3.05. Financial Statements

  	
   

  
	
  SECTION
  3.06. No Material Adverse Change or Material Adverse Effect

  	
   

  
	
  SECTION
  3.07. Title to Properties; Possession Under Leases

  	
   

  

 

 

	
  SECTION
  3.08. Subsidiaries

  	
   

  
	
  SECTION
  3.09. Litigation; Compliance with Laws

  	
   

  
	
  SECTION
  3.10. Federal Reserve Regulations

  	
   

  
	
  SECTION
  3.11. Investment Company Act: Public Utility Holding Company Act

  	
   

  
	
  SECTION
  3.12. Use of Proceeds

  	
   

  
	
  SECTION
  3.13. Tax Returns

  	
   

  
	
  SECTION
  3.14. No Material Misstatements

  	
   

  
	
  SECTION
  3.15. Employee Benefit Plans

  	
   

  
	
  SECTION
  3.16. Environmental Matters

  	
   

  
	
  SECTION
  3.17. Security Documents

  	
   

  
	
  SECTION
  3.18. Location of Real Property and Leased Premises

  	
   

  
	
  SECTION
  3.19. Solvency

  	
   

  
	
  SECTION
  3.20. Labor Matters

  	
   

  
	
  SECTION
  3.21. Insurance

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  IV

  
	
   

  	
   

  
	
  Conditions of Lending

  
	
   

  	
   

  
	
  SECTION
  4.01. All Credit Events

  	
   

  
	
  SECTION
  4.02. First Credit Event

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  V

  
	
   

  	
   

  
	
  Affirmative Covenants

  
	
   

  	
   

  
	
  SECTION
  5.01. Existence; Businesses and Properties

  	
   

  
	
  SECTION
  5.02. Insurance

  	
   

  
	
  SECTION
  5.03. Taxes

  	
   

  
	
  SECTION
  5.04. Financial Statements, Reports, etc.

  	
   

  
	
  SECTION
  5.05. Litigation and Other Notices

  	
   

  
	
  SECTION
  5.06. Compliance with Laws

  	
   

  
	
  SECTION
  5.07. Maintaining Records; Access to Properties and Inspections

  	
   

  
	
  SECTION
  5.08. Use of Proceeds

  	
   

  
	
  SECTION
  5.09. Compliance with Environmental Laws

  	
   

  
	
  SECTION
  5.10. Further Assurances; Additional Mortgages

  	
   

  
	
  SECTION
  5.11. Fiscal Year; Accounting

  	
   

  
	
  SECTION
  5.12. Proceeds of Certain Dispositions

  	
   

  
	
  SECTION
  5.13. Maintenance of Ratings

  	
   

  
	
  SECTION
  5.14. Interest Rate Protection

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  VI

  
	
   

  	
   

  
	
  Negative Covenants

  
	
   

  	
   

  
	
  SECTION
  6.01. Indebtedness

  	
   

  
	
  SECTION
  6.02. Liens

  	
   

  
	
  SECTION
  6.03. Sale and Lease-Back Transactions

  	
   

  

 

 

	
  SECTION
  6.04. Investments, Loans and Advances

  	
   

  
	
  SECTION
  6.05. Mergers, Consolidations, Sales of Assets and Acquisitions

  	
   

  
	
  SECTION
  6.06. Dividends and Distributions

  	
   

  
	
  SECTION
  6.07. Transactions with Affiliates

  	
   

  
	
  SECTION
  6.08. Business of the Borrower and the Subsidiaries

  	
   

  
	
  SECTION 6.09. Limitation on Modifications
  of Indebtedness; Modifications of Certificate of Incorporation, By-Laws and
  Certain Other Agreements; etc.

  	
   

  
	
  SECTION
  6.10. Maximum Capital Expenditures

  	
   

  
	
  SECTION
  6.11. Interest Coverage Ratio

  	
   

  
	
  SECTION
  6.12. Consolidated Leverage Ratio

  	
   

  
	
  SECTION
  6.13. Swap Agreements

  	
   

  
	
  SECTION
  6.14. No Other “Designated Senior Indebtedness”

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  VIA

  
	
   

  	
   

  
	
  Holdings Negative Covenants

  
	
   

  	
   

  
	
  SECTION
  6A.01. Business of Holdings

  	
   

  
	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  	
   

  
	
  Events of Default

  
	
   

  	
   

  
	
  SECTION
  7.01. Events of Default

  	
   

  
	
  SECTION
  7.02. Exclusion of Immaterial Subsidiaries

  	
   

  
	
  SECTION
  7.03. Holdings’ Right to Cure

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  VIII

  
	
   

  	
   

  
	
  The
  Agents

  
	
   

  	
   

  
	
  SECTION
  8.01. Appointment

  	
   

  
	
  SECTION
  8.02. Delegation of Duties

  	
   

  
	
  SECTION
  8.03. Exculpatory Provisions

  	
   

  
	
  SECTION
  8.04. Reliance by Administrative Agent

  	
   

  
	
  SECTION
  8.05. Notice of Default

  	
   

  
	
  SECTION
  8.06. Non-Reliance on Agents and Other Lenders

  	
   

  
	
  SECTION
  8.07. Indemnification

  	
   

  
	
  SECTION
  8.08. Agent in Its Individual Capacity

  	
   

  
	
  SECTION
  8.09. Successor Administrative Agent

  	
   

  
	
  SECTION
  8.10. Syndication Agent and Co-Documentation Agents.

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  IX

  
	
   

  	
   

  
	
  Miscellaneous

  
	
   

  	
   

  
	
  SECTION
  9.01. Notices

  	
   

  

 

 

	
  SECTION
  9.02. Survival of Agreement

  	
   

  
	
  SECTION
  9.03. Binding Effect

  	
   

  
	
  SECTION
  9.04. Successors and Assigns

  	
   

  
	
  SECTION
  9.05. Expenses; Indemnity

  	
   

  
	
  SECTION
  9.06. Right of Set-off

  	
   

  
	
  SECTION
  9.07. Applicable Law

  	
   

  
	
  SECTION
  9.08. Waivers; Amendment

  	
   

  
	
  SECTION
  9.09. Interest Rate Limitation

  	
   

  
	
  SECTION
  9.10. Entire Agreement

  	
   

  
	
  SECTION
  9.11. WAIVER OF JURY TRIAL

  	
   

  
	
  SECTION
  9.12. Severability

  	
   

  
	
  SECTION
  9.13. Counterparts

  	
   

  
	
  SECTION
  9.14. Headings

  	
   

  
	
  SECTION
  9.15. Jurisdiction; Consent to Service of Process

  	
   

  
	
  SECTION
  9.16. Confidentiality

  	
   

  
	
  SECTION
  9.17. UBS AG, Stamford Branch Direct Website Communications

  	
   

  
	
  SECTION
  9.18. Release of Liens and Guarantees

  	
   

  
	
  SECTION
  9.19. USA Patriot Act

  	
   

  

 

 

	
  Exhibits and Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Form of Assignment and
  Acceptance

  
	
  Exhibit B

  	
   

  	
  Form of Administrative
  Questionnaire

  
	
  Exhibit C-1

  	
   

  	
  Form of Borrowing Request

  
	
  Exhibit C-2

  	
   

  	
  Form of Swingline Borrowing
  Request

  
	
  Exhibit D

  	
   

  	
  Form of Mortgage

  
	
  Exhibit E

  	
   

  	
  Form of Collateral
  Agreement

  
	
  Exhibit F

  	
   

  	
  Form of Solvency
  Certificate

  
	
   

  	
   

  	
   

  
	
  Schedule 1.01(a)

  	
   

  	
  Certain U.S. Subsidiaries

  
	
  Schedule 1.01(b)

  	
   

  	
  Pro Forma EBITDA

  
	
  Schedule 1.01(c)

  	
   

  	
  Mortgaged Properties

  
	
  Schedule 2.01

  	
   

  	
  Commitments

  
	
  Schedule 2.05(a)

  	
   

  	
  Existing Letters of Credit

  
	
  Schedule 3.01

  	
   

  	
  Organization and Good
  Standing

  
	
  Schedule 3.04

  	
   

  	
  Governmental Approvals

  
	
  Schedule 3.07(b)

  	
   

  	
  Possession under Leases

  
	
  Schedule 3.07(c)

  	
   

  	
  Intellectual Property

  
	
  Schedule 3.08(a)

  	
   

  	
  Subsidiaries

  
	
  Schedule 3.08(b)

  	
   

  	
  Subscriptions

  
	
  Schedule 3.09

  	
   

  	
  Litigation

  
	
  Schedule 3.13

  	
   

  	
  Taxes

  
	
  Schedule 3.16

  	
   

  	
  Environmental Matters

  
	
  Schedule 3.20

  	
   

  	
  Labor Matters

  
	
  Schedule 3.21

  	
   

  	
  Insurance

  
	
  Schedule 4.02(b)

  	
   

  	
  Local U.S. Counsel

  
	
  Schedule 6.01

  	
   

  	
  Indebtedness

  
	
  Schedule 6.02(a)

  	
   

  	
  Liens

  
	
  Schedule 6.04

  	
   

  	
  Investments

  
	
  Schedule 6.07

  	
   

  	
  Transactions with
  Affiliates

  

 

 

CREDIT
AGREEMENT dated as of February 11, 2005 (this “Agreement”), among
NIAGARA ACQUISITION, INC., a Delaware corporation (the “Borrower”),
NIAGARA HOLDINGS, INC., a Delaware corporation 
(“Holdings”), the LENDERS party hereto from time to time, UBS AG,
Stamford Branch, as administrative agent (in such capacity, the “Administrative
Agent”), JPMORGAN CHASE BANK, N.A., as syndication agent (in such capacity,
the “Syndication Agent”), CREDIT SUISSE FIRST BOSTON, acting through its
Cayman Islands branch and GENERAL ELECTRIC CAPITAL CORPORATION,
as co-documentation agents (in such capacity, each a “Co-Documentation Agent,” and collectively, the “Co-Documentation
Agents”), and J.P. MORGAN SECURITIES INC. and UBS SECURITIES LLC as
joint lead arrangers and joint book runners (in such capacities, the “Joint
Lead Arrangers”).

 

Pursuant to and in
connection with the Acquisition Agreement (with such term and each other capitalized
term used but not defined in this preamble having the meaning assigned thereto
in Article I) and the transactions contemplated thereby, (a) the Equity
Financing will be consummated, (b) the Senior Subordinated Notes will be
issued by the Borrower, (c) the Merger will be consummated in accordance
with the terms of the Acquisition Agreement and (d) the Transaction Costs
will be paid.

 

The Borrower has requested
that the Lenders extend credit in the form of (a) Term Loans on the Closing
Date in an aggregate principal amount of $335 million and (b) Revolving
Facility Loans and Letters of Credit at any time and from time to time prior to
the Revolving Facility Maturity Date, in an aggregate principal amount at any
time outstanding not in excess of $100 million.

 

The Lenders are willing to
extend such credit to the Borrower, the Swingline Lender is willing to make
Swingline Loans to the Borrower and the Issuing Bank is willing to issue
Letters of Credit for the account of the Borrower on the terms and subject to
the conditions set forth herein. 
Accordingly, the parties hereto agree as follows:

 

ARTICLE I

 

Definitions

 

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

 

“ABR” shall mean for any day, a rate per
annum equal to the greater of (a) the Prime Rate in effect on such day and (b)
the Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1%. For
purposes hereof: “Prime Rate” shall mean the rate of interest per annum
publicly announced from time to time by the Administrative Agent as its prime
rate in effect at its principal office in Stamford, Connecticut (the Prime Rate not being
intended to be the lowest rate of interest charged by the Administrative Agent
in connection with extensions of credit to debtors).  Any change in the ABR due to a change in the
Prime Rate or the Federal Funds Effective Rate shall be effective as of the
opening of business on the effective day of such change in the Prime Rate or
the Federal Funds Effective Rate, respectively.

 

“ABR Borrowing” shall mean a Borrowing
comprised of ABR Loans.

 

“ABR Loan” shall mean any ABR Term Loan, ABR
Revolving Loan or Swingline Loan.

 

“ABR Revolving Borrowing” shall mean a
Borrowing comprised of ABR Revolving Loans.

 

 

“ABR Revolving Loan” shall mean any Revolving
Facility Loan bearing interest at a rate determined by reference to the ABR in
accordance with the provisions of Article II.

 

“ABR Term Loan” shall mean any Term Loan
bearing interest at a rate determined by reference to the ABR in accordance
with the provisions of Article II.

 

“Acquired Business” shall mean PQ
Corporation, a Pennsylvania corporation.

 

“Acquisition” shall mean the Merger and the
other transactions contemplated by the Acquisition Agreement and the other
Acquisition Documents.

 

“Acquisition Agreement” shall mean the
Agreement and Plan of Merger, dated as of December 15, 2004, by and among the
Acquired Business, Holdings and the Borrower.

 

“Acquisition Documents” shall mean the
collective reference to the Acquisition Agreement, all material exhibits and
schedules thereto and all material agreements expressly contemplated thereby.

 

“Additional Mortgage” shall have the meaning
assigned to such term in Section 5.10(c).

 

“Adjusted LIBO Rate” shall mean, with respect
to any Eurocurrency Borrowing for any Interest Period, an interest rate per
annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the
LIBO Rate in effect for such Interest Period divided by (b) one minus the
Statutory Reserves applicable to such Eurocurrency Borrowing, if any.

 

“Adjustment Date” shall have the meaning
assigned to such term in the definition of “Pricing Grid.”

 

“Administrative Agent” shall have the meaning
assigned to such term in the introductory paragraph of this Agreement.

 

“Administrative Agent Fees” shall have the
meaning assigned to such term in Section 2.12(c).

 

“Administrative Questionnaire” shall mean an
Administrative Questionnaire in the form of Exhibit B.

 

“Affiliate” shall mean, when used with respect
to a specified person, another person that directly, or indirectly through one
or more intermediaries, Controls or is Controlled by or is under common Control
with the person specified; provided, however, no Agent or Lender
shall be deemed to be an Affiliate of any Loan Party by virtue of its execution
of this Agreement.

 

“Agent Parties” shall have the meaning
assigned to such term in Section 9.17(c).

 

“Agents” shall mean the Administrative Agent
and the Syndication Agent and the Co-Documentation Agents.

 

“Agreement” shall have the meaning assigned
to such term in the introductory paragraph of this Agreement.

 

“AIBA Prepayment Amount” shall mean the sum
of the amounts calculated for each Excess Cash Flow Period ending after the
Closing Date which is equal to (a) the aggregate amount of the

 

2

 

voluntary prepayments and reductions referred to in
clauses (b)(i) and (b)(ii) of the definition of “Excess Cash Flow” for such
Excess Cash Flow Period, with such aggregate amount divided by the Required
Percentage for such Excess Cash Flow Period, minus (b) such aggregate amount of
the voluntary prepayments and reductions for such Excess Cash Flow Period.

 

“Applicable Margin”
shall mean for any day (i) with respect to any Term Loan, 2.00% per annum in
the case of any Eurocurrency Loan and 1.00% per annum in the case of any ABR
Loan and (ii) with respect to any Revolving Facility Loan, 2.25% per annum in
the case of any Eurocurrency Loan and 1.25% per annum in the case of any ABR
Loan, provided that on and after the first Adjustment Date occurring
after the completion of one full fiscal quarter of the Borrower after the
Closing Date, the Applicable Margin with respect to Revolving Facility Loans
and Swingline Loans will be determined pursuant to the Pricing Grid.

 

“Approved Fund” shall have the meaning
assigned to such term in Section 9.04(b).

 

“Assignee” shall have them meaning assigned
to such term in Section 9.04(b).

 

“Assignment and Acceptance” shall mean an
assignment and acceptance entered into by a Lender and an assignee, and
accepted by the Administrative Agent and the Borrower (if required by such
assignment and acceptance), in the form of Exhibit A or such other form
as shall be approved by the Administrative Agent.

 

“Availability Period” shall mean the period
from and including the Closing Date to but excluding the earlier of the
Revolving Facility Maturity Date and in the case of each of the Revolving
Facility Loans, Revolving Facility Borrowings, Swingline Loans, Swingline
Borrowings and Letters of Credit, the date of termination of the Revolving
Facility Commitments.

 

“Available Investment Basket Amount” shall
mean, on any date of determination, an amount equal to (a) the Cumulative
Retained Excess Cash Flow Amount on such date plus (b) the aggregate amount of
proceeds received after the Closing Date and prior to such date that would have
constituted Net Proceeds pursuant to clause (a) of the definition thereof
except for the operation of clause (x) or (y) of the second proviso thereof
(the “Below-Threshold Asset Sale Proceeds”), plus (c) the AIBA
Prepayment Amount on such date plus (d) the cumulative amount of cash proceeds
from the sale of Equity Interests of Holdings after the Closing Date (which
proceeds have been contributed as common equity to the capital of the
Borrower), minus (e) any amounts thereof used to make Investments pursuant to
Section 6.04(b)(y) after the Closing Date and on or prior to such date, minus
(f) any amounts thereof used to make Investments pursuant to Section
6.04(j)(ii) after the Closing Date and on or prior to such date, minus (g) the
cumulative amount of dividends paid and distributions made pursuant to Section
6.06(e)(ii); provided, however, for purposes of Section
6.06(e)(ii), the calculation of the Available Investment Basket Amount shall
not include any Below-Threshold Asset Sale Proceeds except to the extent they
are used as contemplated in clauses (e) and (f) above.

 

“Available Unused Commitment” shall mean,
with respect to a Revolving Facility Lender at any time, an amount equal to the
amount by which (a) the Revolving Facility Commitment of such Revolving
Facility Lender at such time exceeds (b) the Revolving Facility Credit Exposure
of such Revolving Facility Lender at such time.

 

“Board” shall mean the Board of Governors of
the Federal Reserve System of the United States of America.

 

3

 

“Borrower” shall have the meaning assigned to
such term in the introductory paragraph of this Agreement.

 

“Borrowing” shall mean a group of Loans of a
single Type under a single Facility and made on a single date and, in the case
of Eurocurrency Loans, as to which a single Interest Period is in effect.

 

“Borrowing Minimum” shall mean $500,000.

 

“Borrowing Multiple” shall mean $100,000.

 

“Borrowing Request” shall mean a request by a
Borrower in accordance with the terms of Section 2.03 and substantially in the
form of Exhibit C-1.

 

“Budget” shall have the meaning assigned to
such term in Section 5.04(e).

 

 “Business
Day” shall mean any day that is not a Saturday, Sunday or other day on
which commercial banks in New York City are authorized or required by law to
remain closed; provided that when used in connection with a Eurocurrency
Loan, the term “Business Day” shall also exclude any day on which banks are not
open for dealings in deposits in the applicable currency in the London
interbank market.

 

“Capital Expenditures” shall mean, for any
person in respect of any period, the aggregate of all expenditures incurred by
such person during such period that, in accordance with GAAP, are or should be
included in “additions to property, plant or equipment” or similar items
reflected in the statement of cash flows of such person, provided, however,
that Capital Expenditures for the Borrower and the Subsidiaries shall not
include:

 

(a)           expenditures to
the extent they are made with proceeds of the issuance of Equity Interests of
Holdings after the Closing Date to the Permitted Investors or with funds that would
have constituted Net Proceeds under clause (a) of the definition of the term “Net
Proceeds” (but that will not constitute Net Proceeds as a result of the first
proviso to such clause (a)),

 

(b)           expenditures of
proceeds of insurance settlements, condemnation awards and other settlements in
respect of lost, destroyed, damaged or condemned assets, equipment or other
property to the extent such expenditures are made to replace or repair such
lost, destroyed, damaged or condemned assets, equipment or other property or
otherwise to acquire, maintain, develop, construct, improve, upgrade or repair
assets or properties useful in the business of the Borrower and the
Subsidiaries within 12 months of receipt of such proceeds,

 

(c)           interest
capitalized during such period,

 

(d)           expenditures
that are accounted for as capital expenditures of such person and that actually
are paid for by a third party (excluding Holdings, the Borrower or any
Subsidiary thereof) and for which neither Holdings, the Borrower nor any Subsidiary
has provided or is required to provide or incur, directly or indirectly, any
consideration or obligation to such third party or any other person (whether
before, during or after such period),

 

(e)           the book value
of any asset owned by such person prior to or during such period to the extent
that such book value is included as a capital expenditure during such period as
a result of such person reusing or beginning to reuse such asset during such
period without a corresponding

 

4

 

expenditure actually having been made in such
period, provided that (i) any expenditure necessary in order to permit
such asset to be reused shall be included as a Capital Expenditure during the
period that such expenditure actually is made and (ii) such book value shall
have been included in Capital Expenditures when such asset was originally
acquired,

 

(f)            the purchase
price of equipment purchased during such period to the extent the consideration
therefor consists of any combination of (i) used or surplus equipment traded in
at the time of such purchase and (ii) the proceeds of a concurrent sale of used
or surplus equipment, in each case, in the ordinary course of business,

 

(g)           Investments in
respect of a Permitted Business Acquisition,

 

(h)           the
Acquisition,

 

(i)            expenditures to
the extent they are financed with the proceeds of a disposition of used,
obsolete, worn out or surplus equipment or property in the ordinary course of
business or a disposition that would result in a prepayment of the Loans,
pursuant to Section 2.11, of Net Proceeds of the type described in clause (a)
of such definition, but for the proviso at the end of such definition, or

 

(j)            expenditures to
the extent they are financed with the proceeds of an issuance of Junior Capital
not later than six months after the receipt of such proceeds by Holdings or the
Borrower.

 

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

 

“Cash Management Obligations” shall mean
obligations owed by any Loan Party to any Lender or Affiliate of any Lender in
respect of any overdraft and related liabilities arising from treasury and cash
management services or any automated clearing house transfer of funds.

 

“Cash Interest Expense” shall mean, with
respect to the Borrower and the Subsidiaries on a consolidated basis for any
period, Interest Expense for such period, less the sum of (a) pay-in-kind
Interest Expense or other noncash Interest Expense (including as a result of
the effects of purchase accounting), (b) to the extent included in Interest
Expense, the amortization of any financing fees paid by, or on behalf of,
Borrower or any Subsidiary, including such fees paid in connection with the
Transactions or upon entering into a Permitted Receivables Financing, (c) the
amortization of debt discounts, if any, or fees in respect of Swap Agreements
and (d) cash interest income of Borrower and its Subsidiaries for such period; provided
that Cash Interest Expense shall exclude any one-time financing fees, including
those paid in connection with the Transactions, or upon entering into a
Permitted Receivables Financing or any amendment of this Agreement.

 

For purposes of determining
Cash Interest Expense under this Agreement for any period that includes any of
the fiscal quarters ended September 30, 2004, December 31, 2004 and March 31, 2005,
Cash Interest Expense for such fiscal quarters shall be $9.705 million, $9.705
million and $9.705 million, respectively.

 

A “Change in Control” shall mean:

 

5

 

(a) the acquisition of record ownership by any
Person other than Holdings of any Equity Interests in the Borrower,

 

(b) prior to a Qualified IPO, (i) the
failure by the Permitted Investors to beneficially own, directly or indirectly
Equity Interests in Holdings representing at least 30% of the aggregate voting
power represented by the issued and outstanding Equity Interests in Holdings or
(ii) the failure by the Sponsors to beneficially own, directly or
indirectly, Equity Interests in Holdings representing at least 25% of the
aggregate voting power represented by the issued and outstanding Equity
Interests in Holdings,

 

(c) after a Qualified IPO, (i) the
acquisition of ownership, directly or indirectly, beneficially or of record, by
any Person or group (within the meaning of the Securities Exchange Act of 1934,
as amended, and the rules of the SEC thereunder as in effect on the date
hereof) of Equity Interests representing more than 35% of the aggregate
ordinary voting power represented by the issued and outstanding Equity
Interests in Holdings and (ii) the ownership, directly or indirectly,
beneficially or of record, by the Sponsors of Equity Interests in Holdings
representing in the aggregate a lesser percentage of the aggregate ordinary
voting power represented by the issued and outstanding Equity Interests in
Holdings than such Person or group,

 

(d) occupation of a majority of the seats
(other than vacant seats) on the board of directors of Holdings by Persons who
were not nominated or appointed by the board of directors of Holdings or by the
Sponsors, directly or indirectly, or

 

(e) the occurrence of a “Change of Control” as
defined in the Senior Subordinated Note Documents.

 

 “Change in
Law” shall mean (a) the adoption of any law, rule or regulation after the
Closing Date, (b) any change in law, rule or regulation or in the
interpretation or application thereof by any Governmental Authority after the
Closing Date or (c) compliance by any Lender or Issuing Bank (or, for purposes
of Section 2.15(b), by any Lending Office of such Lender or by such Lender’s or
Issuing Bank’s holding company, if any) with any written request, guideline or
directive (whether or not having the force of law) of any Governmental
Authority made or issued after the Closing Date.

 

“Charges” shall have the meaning assigned to
such term in Section 9.09.

 

“Closing Date” shall mean February 11, 2005.

 

“Co-Documentation Agent” shall have the
meaning assigned to such term in the introductory paragraph of this Agreement.

 

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

 

“Collateral” shall mean all the “Collateral”
as defined in any Security Document and shall also include the Mortgaged
Properties.

 

“Collateral Agreement” shall mean the
Guarantee and Collateral Agreement, as amended, supplemented or otherwise
modified from time to time, in the form of Exhibit E, among Holdings,
the Borrower, each Subsidiary Loan Party and the Administrative Agent.

 

“Collateral and Guarantee Requirement” shall
mean the requirement that:

 

6

 

(a)           on the Closing
Date, the Administrative Agent shall have received (I) from Holdings, the
Borrower and each Subsidiary Loan Party, a counterpart of the Collateral
Agreement duly executed and delivered on behalf of such person and (II) an
Acknowledgment and Consent in the form attached to the Collateral Agreement,
executed and delivered by each issuer of Pledged Collateral (as defined in the
Collateral Agreement), if any, that is not a Loan Party;

 

(b)           on the Closing
Date or as otherwise provided in the Collateral Agreement, the Administrative
Agent shall have received (I) a pledge of all the issued and outstanding Equity
Interests of (A) the Borrower and (B) each Domestic Subsidiary (other than
Subsidiaries listed on Schedule 1.01(a)) owned on the Closing Date
directly by or on behalf of the Borrower or any Subsidiary Loan Party; (II) a
pledge of 65% of the outstanding Equity Interests of each “first tier” Foreign
Subsidiary directly owned by Holdings, the Borrower or a Subsidiary Loan Party;
and (III) all certificates or other instruments (if any) representing such
Equity Interests, together with stock powers or other instruments of transfer
with respect thereto endorsed in blank;

 

(c)           on the Closing
Date, all Indebtedness of Holdings, the Borrower and each Subsidiary having, in
the case of each instance of Indebtedness, an aggregate principal amount in
excess of $2.0 million (other than (i) intercompany current liabilities
incurred in the ordinary course of business in connection with the cash
management operations of Holdings and its Subsidiaries or (ii) to the extent
that a pledge of such promissory note or instrument would violate applicable
law) that is owing to any Loan Party shall be evidenced by a promissory note or
an instrument and shall have been pledged pursuant to the Collateral Agreement,
and the Administrative Agent shall have received all such promissory notes or
instruments, together with note powers or other instruments of transfer with
respect thereto endorsed in blank;

 

(d)           in the case of
any person that becomes a Subsidiary Loan Party after the Closing Date, the
Administrative Agent shall have received a supplement to the Collateral
Agreement, in the form specified therein, duly executed and delivered on behalf
of such Subsidiary Loan Party;

 

(e)           in the case of
any person that becomes a “first tier” Foreign Subsidiary directly owned by
Holdings, the Borrower or a Subsidiary Loan Party after the Closing Date, the
Administrative Agent shall have received, as promptly as practicable following
a request by the Administrative Agent, a Foreign Pledge Agreement, duly
executed and delivered on behalf of such Foreign Subsidiary and the direct
parent company of such Foreign Subsidiary;

 

(f)            after the
Closing Date, all the outstanding Equity Interests of (A) any person that
becomes a Subsidiary Loan Party after the Closing Date and (B) subject to
Section 5.10(g), all the Equity Interests that are acquired by a Loan Party
after the Closing Date (including, without limitation, the Equity Interests of
any Special Purpose Receivables Subsidiary established after the Closing Date),
shall have been pledged pursuant to the Collateral Agreement (provided
that in no event shall more than 65% of the issued and outstanding Equity
Interests of any “first tier” Foreign Subsidiary directly owned by such Loan
Party be pledged to secure Obligations of the Borrower, and in no event shall
any of the issued and outstanding Equity Interests of any Foreign Subsidiary
that is not a “first tier” Foreign Subsidiary be pledged to secure Obligations
of the Borrower), and the Administrative Agent shall have received all
certificates or other instruments (if any) representing such Equity Interests,
together with stock powers or other instruments of transfer with respect
thereto endorsed in blank;

 

(g)           except as
disclosed on Schedule 3.04 or as otherwise contemplated by any Security
Document, all documents and instruments, including Uniform Commercial Code
financing statements, required by law or reasonably requested by the
Administrative Agent to be filed, registered or recorded to create the Liens
intended to be created by the Security Documents (in each case, including

 

7

 

any supplements thereto) and perfect such Liens to
the extent required by, and with the priority required by, the Security
Documents, shall have been filed, registered or recorded or delivered to the
Administrative Agent for filing, registration or the recording concurrently
with, or promptly following, the execution and delivery of each such Security
Document;

 

(h)           on the Closing
Date, or as soon as is practicable not to exceed 60 days from the Closing Date,
the Administrative Agent shall have received (i) counterparts of each Mortgage
to be entered into with respect to each Mortgaged Property set forth on Schedule
1.01(c) duly executed and delivered by the record owner of such Mortgaged
Property and (ii) such other documents as the Administrative Agent may
reasonably request with respect to any such Mortgage or Mortgaged Property;

 

(i)            on the Closing
Date, or as soon as is practicable not to exceed 60 days from the Closing Date,
the Administrative Agent shall have received (i) a policy or policies or
marked-up unconditional binder of title insurance or foreign equivalent
thereof, as applicable, paid for by the Borrower, issued by a nationally
recognized title insurance company insuring the Lien of each Mortgage to be
entered into on the Closing Date as a valid first Lien on the Mortgaged
Property described therein, free of any other Liens except as permitted by
Section 6.02, together with such endorsements, coinsurance and reinsurance as
the Administrative Agent may reasonably request, (ii) a survey of any Mortgaged
Property (and all improvements thereon), or foreign equivalent thereof, as
applicable, which is (1) dated (or redated) not earlier than six months prior
to the date of delivery thereof unless there shall have occurred within six
months prior to such date of delivery any exterior construction on the site of
such Mortgaged Property, in which event such survey shall be dated (or redated)
after the completion of such construction or if such construction shall not
have been completed as of such date of delivery, not earlier than 20 days prior
to such date of delivery, (2) certified by the surveyor (in a manner reasonably
acceptable to the Administrative Agent) to the Administrative Agent and the
title insurance company insuring the Mortgage, (3) complying in all respects
with the minimum detail requirements of the American Land Title Association as
such requirements are in effect on the date of preparation of such survey and
(4) sufficient for such title insurance company to remove all standard survey
exceptions from the title insurance policy relating to such Mortgaged Property
or otherwise reasonably acceptable to the Administrative Agent; and

 

(j)            except as
disclosed on Schedule 3.04 or as otherwise contemplated by any Security
Document, each Loan Party shall have obtained all consents and approvals required
to be obtained by it in connection with (i) the execution and delivery of all
Security Documents (or supplements thereto) to which it is a party and the
granting by it of the Liens thereunder and (ii) the performance of its
obligations thereunder.

 

“Commitment Fee” shall have the meaning
assigned to such term in Section 2.12(a).

 

“Commitment Fee Rate” shall mean a rate equal
to 0.50% per annum; provided that on and after the first Adjustment Date
occurring after the completion of one full fiscal quarter of the Borrower after
the Closing Date, the Commitment Fee Rate will be determined pursuant to the
Pricing Grid.

 

“Commitments” shall mean (a) with respect to
any Lender, such Lender’s Revolving Facility Commitment and Term Loan
Commitment and (b) with respect to any Swingline Lender, its Swingline
Commitment.

 

“Communications” shall have the meaning
assigned to such term in Section 9.17(a).

 

8

 

“Conduit Lender” shall mean any special
purpose corporation organized and administered by any Lender for the purpose of
making Loans otherwise required to be made by such Lender and designated by
such Lender in a written instrument; provided, that the designation by
any Lender of a Conduit Lender shall not relieve the designating Lender of any
of its obligations to fund a Loan under this Agreement if, for any reason, its
Conduit Lender fails to fund any such Loan, and the designating Lender (and not
the Conduit Lender) shall have the sole right and responsibility to deliver all
consents and waivers required or requested under this Agreement with respect to
its Conduit Lender, and provided, further, that no Conduit Lender
shall (a) be entitled to receive any greater amount pursuant to Section 2.15,
2.16, 2.17 or 9.05 than the designating Lender would have been entitled to
receive in respect of the extensions of credit made by such Conduit Lender or
(b) be deemed to have any Commitment.

 

“Consolidated Debt” at any date shall mean
the sum of (without duplication) (a) (i) all Indebtedness consisting of Capital
Lease Obligations and Indebtedness for borrowed money (other than letters of
credit to the extent undrawn) and (ii) Indebtedness in respect of the deferred
purchase price of property or services of the Borrower and its Subsidiaries to
the extent in the case of clause (ii) such Indebtedness appears or should
appear on the consolidated balance sheet of the Borrower in accordance with
GAAP determined on a consolidated basis on such date plus (b) any Receivables
Net Investment.

 

“Consolidated Leverage Ratio” shall mean, on
any date, the ratio of (a) Consolidated Total Debt as of such date to (b)
EBITDA for the period of four consecutive fiscal quarters of the Borrower most
recently ended as of such date, all determined on a consolidated basis in
accordance with GAAP; provided that EBITDA shall be determined for the
relevant Test Period on a Pro Forma Basis.

 

“Consolidated Net Income” shall mean, with
respect to any person for any period, the aggregate of the Net Income of such
person and its subsidiaries for such period, on a consolidated basis; provided,
however, that, without duplication,

 

(i)            any
net after-tax (A) extraordinary, (B) nonrecurring or (C) unusual gains or
losses or income or expenses (less all fees and expenses relating thereto)
including, without limitation, any severance expenses, and fees, expenses or
charges related to any offering of Equity Interests of Holdings, any
Investment, acquisition or Indebtedness permitted to be incurred hereunder (in
each case, whether or not successful), including any such fees, expenses,
charges or change in control payments related to the Transactions, in each
case, shall be excluded,

 

(ii)           any net
after-tax income or loss from discontinued operations and any net after-tax gain
or loss on disposal of discontinued operations shall be excluded,

 

(iii)          any net
after-tax gain or loss (less all fees and expenses or charges relating thereto)
attributable to business dispositions or asset dispositions other than in the
ordinary course of business (as determined in good faith by the board of
directors of the Borrower) shall be excluded,

 

(iv)          any net
after-tax income or loss (less all fees and expenses or charges relating
thereto) attributable to the early extinguishment of indebtedness shall be
excluded,

 

(v)           (A) for
purposes of computing the Available Investment Basket Amount, the Net Income
for such period of any person that is not a subsidiary of such person, or is an
Unrestricted Subsidiary, or that is accounted for by the equity method of
accounting, shall be included only to the extent of the amount of dividends or
distributions or other payments paid in cash (or to the extent converted into
cash) to the referent person or a subsidiary thereof in respect of such period

 

9

 

and (B) the Net Income for
such period shall include any ordinary course dividend distribution or other
payment in cash received from any person in excess of the amounts included in
clause (A),

 

(vi)          Consolidated Net
Income for such period shall not include the cumulative effect of a change in
accounting principles during such period,

 

(vii)         any increase in
amortization or depreciation or any one-time non-cash charges resulting from
purchase accounting in connection with the Transactions or any acquisition that
is consummated after the Closing Date shall be excluded,

 

(viii)        any non-cash
impairment charges resulting from the application of Statement of Financial
Accounting Standards No. 142 and 144, and the amortization of intangibles
arising pursuant to No. 141, shall be excluded,

 

(ix)           any non-cash
compensation expenses realized from grants of stock appreciation or similar
rights, stock options or other rights to officers, directors and employees of
such person or any of its subsidiaries shall be excluded, and

 

(x)            accruals
and reserves that are established within twelve months after the Closing Date
and that are so required to be established in accordance with GAAP shall be
excluded.

 

“Consolidated
Senior Debt” shall mean all Consolidated Debt that is not subordinated in
right of payment to any other Consolidated Debt.

 

“Consolidated Total Assets” shall mean, as of
any date, the total assets of the Borrower and the consolidated Subsidiaries,
determined in accordance with GAAP, as set forth on the consolidated balance
sheet of the Borrower as of such date.

 

“Consolidated
Total Debt” at any date shall mean Consolidated Debt on such date less the
unrestricted cash and marketable securities (determined in accordance with
GAAP) of the Borrower and its Subsidiaries on such date.

 

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

 

“Credit Event” shall have the meaning
assigned to such term in Article IV.

 

“Cumulative Retained Excess Cash Flow Amount”
shall mean, at any date, an amount, not less than zero in the aggregate,
determined on a cumulative basis equal to the amount of Excess Cash Flow for
all Excess Cash Flow Periods ending after the Closing Date that is not (and, in
the case of any Excess Cash Flow Period where the respective required date of
prepayment has not yet occurred pursuant to Section 2.11(c), will not on such
date of required prepayment be) required to be applied in accordance with
Section 2.11(c).

 

“Cure Amount” shall have the meaning assigned
to such term in Section 7.03(a).

 

“Cure Right” shall have the meaning assigned
to such term in Section 7.03(a).

 

10

 

“Current Assets” shall mean, with respect to
the Borrower and the Subsidiaries on a consolidated basis at any date of
determination, the sum of (a) all assets (other than cash and Permitted
Investments or other cash equivalents) that would, in accordance with GAAP, be
classified on a consolidated balance sheet of the Borrower and the Subsidiaries
as current assets at such date of determination, other than amounts related to
current or deferred Taxes based on income or profits, and (b) in the event that
a Permitted Receivables Financing is accounted for off-balance sheet, (x) gross
accounts receivable comprising part of the Receivables Assets subject to such
Permitted Receivables Financing less (y) collections against the amounts sold
pursuant to clause (x).

 

“Current Liabilities” shall mean, with
respect to the Borrower and the Subsidiaries on a consolidated basis at any
date of determination, all liabilities that would, in accordance with GAAP, be
classified on a consolidated balance sheet of the Borrower and the Subsidiaries
as current liabilities at such date of determination, other than (a) the
current portion of any Indebtedness, (b) accruals of Interest Expense
(excluding Interest Expense that is due and unpaid), (c) accruals for current
or deferred Taxes based on income or profits, (d) accruals, if any, of
transaction costs resulting from the Transactions, and (e) accruals of any
costs or expenses related to (i) severance or termination of employees prior to
the Closing Date or (ii) bonuses, pension and other post-retirement benefit
obligations, and (f) accruals for add-backs to EBITDA included in clauses (a)(iv)
through (a)(vi) of the definition of such term.

 

“Debt Service” shall mean, with respect to
the Borrower and the Subsidiaries on a consolidated basis for any period, Cash
Interest Expense for such period plus scheduled principal amortization of Consolidated
Debt for such period.

 

“Default” shall mean any event or condition
that upon notice, lapse of time or both would constitute an Event of Default.

 

“Defaulting Lender” shall mean any Lender
with respect to which a Lender Default is in effect.

 

“Dollars” or “$” shall mean lawful
money of the United States of America.

 

“Domestic Subsidiary” shall mean any
Subsidiary that is not a Foreign Subsidiary.

 

“EBITDA”
shall mean, with respect to Borrower and the Subsidiaries on a consolidated
basis for any period, the Consolidated Net Income of Borrower and the
Subsidiaries for such period plus (a) the sum of (in each case without
duplication and to the extent the respective amounts described in subclauses
(i) through (vi) of this clause (a) reduced such Consolidated Net Income for
the respective period for which EBITDA is being determined):

 

(i)            provision
for Taxes based on income, profits or capital of the Borrower and the
Subsidiaries for such period, including, without limitation, state, franchise
and similar taxes,

 

(ii)           Interest
Expense of the Borrower and the Subsidiaries for such period (net of interest
income of the Borrower and its Subsidiaries for such period),

 

(iii)          depreciation
and amortization expenses of the Borrower and the Subsidiaries for such period,

 

(iv)          business
optimization expenses and other restructuring charges; provided that
with respect to each business optimization expense or other restructuring
charge, the

 

11

 

Borrower shall have delivered to the
Administrative Agent an officers’ certificate specifying and quantifying such
expense or charge and stating that such expense or charge is a business
optimization expense or other restructuring charge, as the case may be,

 

(v)           any
other non-cash charges; provided that, for purposes of this subclause
(v) of this clause (a), any non-cash charges or losses shall be treated as cash
charges or losses in any subsequent period during which cash disbursements
attributable thereto are made, and

 

(vi)          the
amount of management, consulting, monitoring, transaction and advisory fees and
related expenses paid to the Permitted Investors (or any accruals related to
such fees and related expenses) during such period; provided that such
amount shall not exceed in any four quarter period the sum of (i) the greater
of $2 million and 2.0% of Consolidated EBITDA, plus (ii) the amount of
deferred fees (to the extent such fees were within such amount in clause (i)
above originally), plus (iii) 2.0% of the value of transactions with
respect to which the Permitted Investors provide any of the aforementioned
types of services.

 

minus (b) the sum of (without duplication and to the extent
the amounts described in this clause (b) increased such Consolidated Net Income
for the respective period for which EBITDA is being determined) non-cash
charges increasing Consolidated Net Income of the Borrower and the Subsidiaries
for such period (but excluding any such charges (i) in respect of which cash
was received in a prior period or will be received in a future period or (ii)
which represent the reversal of any accrual of, or cash reserve for,
anticipated cash charges in any prior period).

 

For purposes of
determining EBITDA under this Agreement for any period that includes any of the
fiscal quarters ended June 30, 2004 and September 30, 2004, EBITDA for such
fiscal quarter shall be deemed to be $31.182 million and $33.416 million,
respectively.  Such amounts reflect
adjustments used in connection with the calculation of “Pro Forma EBITDA” as
set forth on Schedule 1.01(b).

 

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

 

“Environmental Laws” shall mean all
applicable laws (including common law), rules, regulations, codes, ordinances,
orders, decrees or judgments, promulgated or entered into by any Governmental
Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the generation, management, Release or threatened Release
of, or exposure to, any Hazardous Material or to occupational health and safety
matters (to the extent relating to the environment or Hazardous Materials).

 

“Equity Financing” shall mean, in connection
with the consummation of the Acquisition, the contribution by the Permitted
Investors and other investors reasonably acceptable to the Agents of cash
equity to Holdings, on terms and conditions reasonably satisfactory to the
Administrative Agent, in an aggregate amount of not less than $163.6 million,
which amount shall be contributed by Holdings to the Borrower as cash common
equity.

 

“Equity Interests” of any person shall mean
any and all shares, interests, rights to purchase, warrants, options,
participation or other equivalents of or interests in (however designated)
equity of such person, including any preferred stock, any limited or general
partnership interest and any limited liability company membership interest.

 

12

 

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

 

“ERISA Affiliate” shall mean any trade or
business (whether or not incorporated) that, together with Holdings, the
Borrower or a Subsidiary, is treated as a single employer under Section 414(b)
or (c) of the Code, or, solely for purposes of Section 302 of ERISA and Section
412 of the Code, is treated as a single employer under Section 414 of the Code.

 

“ERISA Event” shall mean (a) any Reportable
Event; (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA),
whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or
Section 303(d) of ERISA of an application for a waiver of the minimum funding
standard with respect to any Plan, the failure to make by its due date a
required installment under Section 412(m) of the Code with respect to any Plan
or the failure to make any required contribution to a Multiemployer Plan; (d)
the incurrence by Holdings, the Borrower, a Subsidiary or any ERISA Affiliate
of any liability under Title IV of ERISA with respect to the termination of any
Plan; (e) the receipt by Holdings, the Borrower, a Subsidiary or any ERISA
Affiliate from the PBGC or a plan administrator of any notice relating to an
intention to terminate any Plan or to appoint a trustee to administer any Plan
under Section 4042 of ERISA; (f) the incurrence by Holdings, the Borrower, a
Subsidiary or any ERISA Affiliate of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g)
the receipt by Holdings, the Borrower, a Subsidiary or any ERISA Affiliate of
any notice, or the receipt by any Multiemployer Plan from Holdings, the
Borrower, a Subsidiary or any ERISA Affiliate of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan
is, or is expected to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA.

 

“Eurocurrency Borrowing” shall mean a
Borrowing comprised of Eurocurrency Loans.

 

“Eurocurrency Loan” shall mean any
Eurocurrency Term Loan or Eurocurrency Revolving Loan.

 

“Eurocurrency Revolving Borrowing” shall mean
a Borrowing comprised of Eurocurrency Revolving Loans.

 

“Eurocurrency Revolving Loan” shall mean any
Revolving Facility Loan bearing interest at a rate determined by reference to
the Adjusted LIBO Rate in accordance with the provisions of Article II.

 

“Eurocurrency Term Loan” shall mean any Term
Loan bearing interest at a rate determined by reference to the Adjusted LIBO
Rate in accordance with the provisions of Article II.

 

“Event of Default” shall have the meaning
assigned to such term in Section 7.01.

 

“Excess Cash Flow” shall mean, with respect
to the Borrower and its Subsidiaries on a consolidated basis for any Excess
Cash Flow Period, EBITDA of the Borrower and its Subsidiaries on a consolidated
basis for such Excess Cash Flow Period, minus, without duplication,

 

(a)           Debt Service
for such Excess Cash Flow Period,

 

(b)           (i) the amount
of any voluntary prepayments of Term Loans during such Excess Cash Flow Period,
with such amount to be divided by the Required Percentage, (ii) the amount of
any permanent voluntary reductions during such Excess Cash Flow Period of
Revolving Facility

 

13

 

Commitments to the extent that an equal amount of
Revolving Facility Loans was simultaneously repaid, with such amount to be
divided by the Required Percentage and (iii) the amount of any voluntary
prepayment permitted hereunder of term Indebtedness during such Excess Cash
Flow Period to the extent not financed, or intended to be financed, using the
proceeds of the incurrence of Indebtedness, so long as the amount of such
prepayment is not already reflected in Debt Service,

 

(c)           (i) Capital
Expenditures by the Borrower and the Subsidiaries on a consolidated basis
during such Excess Cash Flow Period that are paid in cash to the extent
permitted hereunder and (ii) the aggregate consideration paid in cash during
the Excess Cash Flow period in respect of Permitted Business Acquisitions and
other Investments permitted hereunder to the extent not financed with the
proceeds of Indebtedness other than Loans (less any amounts received in respect
thereof as a return of capital),

 

(d)           Capital
Expenditures that the Borrower or any Subsidiary shall, during such Excess Cash
Flow Period, become obligated to make but that are not made during such Excess
Cash Flow Period, provided that Holdings shall deliver a certificate to the
Administrative Agent not later than 90 days after the end of such Excess Cash
Flow Period, signed by a Responsible Officer of the Borrower and certifying
that such Capital Expenditures and the delivery of the related equipment will
be made in the following Excess Cash Flow Period,

 

(e)           Amounts paid in
cash by the Borrower and its Subsidiaries on a consolidated basis pursuant to
the Tax Sharing Agreement during such Excess Cash Flow Period or that will be
paid within six months after the close of such Excess Cash Flow Period (provided
that any amount so deducted that will be paid after the close of such Excess
Cash Flow Period shall not be deducted again in a subsequent Excess Cash Flow
Period) and for which reserves have been established, including income tax
expense and withholding tax expense incurred in connection with cross-border
transactions involving the Foreign Subsidiaries,

 

(f)            an amount equal
to any increase in Working Capital of the Borrower and its Subsidiaries for
such Excess Cash Flow Period,

 

(g)           cash
expenditures made in respect of Swap Agreements during such Excess Cash Flow
Period, to the extent not reflected in the computation of EBITDA or Interest
Expense,

 

(h)           permitted
dividends or distributions or repurchases of its Equity Interests paid in cash
by the Borrower during such Excess Cash Flow Period and permitted dividends
paid by any Subsidiary to any person other than Holdings, the Borrower or any
of the Subsidiaries during such Excess Cash Flow Period, in each case in
accordance with Section 6.06 (other than Section 6.06(e)(ii)),

 

(i)            amounts paid in
cash during such Excess Cash Flow Period on account of (x) items that were
accounted for as noncash reductions of Net Income in determining Consolidated
Net Income or as noncash reductions of Consolidated Net Income in determining
EBITDA of the Borrower and its Subsidiaries in a prior Excess Cash Flow Period
and (y) reserves or accruals established in purchase accounting,

 

(j)            to the extent
not deducted in the computation of Net Proceeds in respect of any asset
disposition or condemnation giving rise thereto, the amount of any mandatory
prepayment of Indebtedness (other than Indebtedness created hereunder or under
any other Loan Document), together with any interest, premium or penalties
required to be paid (and actually paid) in connection therewith, and

 

14

 

(k)           the amount
related to items that were added to or not deducted from Net Income in
calculating Consolidated Net Income or were added to or not deducted from
Consolidated Net Income in calculating EBITDA to the extent such items
represented a cash payment (which had not reduced Excess Cash Flow upon the
accrual thereof in a prior Excess Cash Flow Period), or an accrual for a cash
payment, by the Borrower and its Subsidiaries or did not represent cash
received by the Borrower and its Subsidiaries, in each case on a consolidated
basis during such Excess Cash Flow Period.

 

plus, without
duplication,

 

(a)           an amount equal
to any decrease in Working Capital for such Excess Cash Flow Period,

 

(b)           all proceeds
received during such Excess Cash Flow Period of Capital Lease Obligations,
purchase money Indebtedness, Sale and Lease-Back Transactions pursuant to
Section 6.03 and any other Indebtedness, in each case to the extent used to
finance any Capital Expenditure (other than Indebtedness under this Agreement
to the extent there is no corresponding deduction to Excess Cash Flow above in
respect of the use of such Borrowings),

 

(c)           all amounts
referred to in clause (c) above to the extent funded with the proceeds of the
issuance of Equity Interests of, or capital contributions to, Holdings after
the Closing Date (to the extent not previously used to prepay Indebtedness
(other than Revolving Facility Loans or Swingline Loans), make any investment
or capital expenditure or otherwise for any purpose resulting in a deduction to
Excess Cash Flow in any prior Excess Cash Flow Period) or any amount that would
have constituted Net Proceeds under clause (a) of the definition of the term “Net
Proceeds” if not so spent, in each case to the extent there is a corresponding
deduction from Excess Cash Flow above,

 

(d)           to the extent
any permitted Capital Expenditures referred to in clause (d) above and the
delivery of the related equipment do not occur in the following Excess Cash
Flow Period of the Borrower specified in the certificate of the Borrower
provided pursuant to clause (d) above, the amount of such Capital Expenditures
that were not so made in such following Excess Cash Flow Period,

 

(e)           cash payments
received in respect of Swap Agreements during such Excess Cash Flow Period to
the extent (i) not included in the computation of EBITDA or (ii) such payments
do not reduce Cash Interest Expense,

 

(f)            any
extraordinary or nonrecurring gain realized in cash during such Excess Cash
Flow Period (except to the extent such gain consists of Net Proceeds subject to
Section 2.11(b)),

 

(g)           to the extent
deducted in the computation of EBITDA, cash interest income, and

 

(h)           the amount
related to items that were deducted from or not added to Net Income in
connection with calculating Consolidated Net Income or were deducted from or
not added to Consolidated Net Income in calculating EBITDA to the extent either
(x) such items represented cash received by the Borrower or any Subsidiary or (y)
such items do not represent cash paid by the Borrower or any Subsidiary, in
each case on a consolidated basis during such Excess Cash Flow Period.

 

“Excess Cash Flow Period” shall mean each
fiscal year of the Borrower commencing with the 2005 fiscal year.

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended.

 

15

 

“Exchange Offer” shall have the meaning
assigned to such term in the Offering Memorandum.

 

“Exchange Offer Registration Statement” shall
have the meaning assigned to such term in the Offering Memorandum.

 

“Excluded Indebtedness” shall mean all
Indebtedness permitted to be incurred under Section 6.01 (other than Section
6.01(u)).

 

“Excluded Taxes” shall mean, with respect to
the Administrative Agent, any Lender, any Issuing Bank or any other recipient
of any payment to be made by or on account of any obligation of the Borrower
hereunder, (a) income taxes imposed on (or measured by) its net income (or
franchise taxes imposed in lieu of net income taxes) by the United States of
America (or any state thereof) or the jurisdiction under the laws of which such
recipient is organized or in which its principal office is located or, in the
case of any Lender, in which its applicable Lending Office is located or any
other jurisdiction as a result of such recipient engaging in a trade or
business in such jurisdiction for tax purposes, (b) any branch profits tax or
any similar tax that is imposed by any jurisdiction described in clause (a)
above and (c) in the case of a Lender making a Loan to the Borrower, any
withholding tax imposed by the United States that (x) is in effect and would
apply to amounts payable hereunder to such Lender at the time such Lender
becomes a party to such Loan to the Borrower (or designates a new Lending
Office) except to the extent that such Lender (or its assignor, if any) was
entitled, at the time of designation of a new Lending Office (or assignment),
to receive additional amounts from a Loan Party with respect to any withholding
tax pursuant to Section 2.17(a) or Section 2.17(c) or (y) is attributable to
such Lender’s failure to comply with Section 2.17(e) or (f) with respect to
such Loan.

 

“Existing Letter of Credit” shall mean each
letter of credit previously issued for the account of the Borrower or any
Subsidiary by a Lender or an Affiliate that is (a) outstanding on the Closing
Date and (b) listed on Schedule 2.05(a).

 

“Facility” shall mean the respective facility
and commitments utilized in making Loans and credit extensions hereunder, it
being understood that as of the date of this Agreement there are two
Facilities, i.e., the Term Facility and the Revolving Facility.

 

“Federal Funds Effective Rate” shall mean,
for any day, the weighted average (rounded upward, if necessary, to the next
1/100 of 1%) of the rates on overnight Federal funds transactions with members
of the Federal Reserve System arranged by Federal funds brokers, as published
on the next succeeding Business Day by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day which is a Business Day, the
average (rounded upward, if necessary, to the next 1/100 of 1%) of the
quotations for the day of such transactions received by the Administrative
Agent from three Federal funds brokers of recognized standing selected by it.

 

“Fee Letter” 
shall mean that certain Fee Letter dated December 15, 2004 by and among
Holdings, the Borrower, the Agents and the Joint Lead Arrangers.

 

“Fees” shall mean the Commitment Fees, the
L/C Participation Fees, the Issuing Bank Fees and the Administrative Agent
Fees.

 

“Financial Officer” of any person shall mean
the Chief Financial Officer, principal accounting officer, Treasurer, Assistant
Treasurer or Controller of such person.

 

16

 

“Financial Performance Covenants” shall mean
the covenants of the Borrower set forth in Sections 6.11 and 6.12.

 

“Foreign Lender” shall mean any Lender that
is organized under the laws of a jurisdiction other than the United States of
America. For purposes of this definition, the United States of America, each
State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction.

 

“Foreign Pledge Agreement” shall mean a
pledge agreement with respect to the Pledged Collateral that constitutes Equity
Interests of a “first tier” Foreign Subsidiary, in form and substance
reasonably satisfactory to the Administrative Agent; provided that in no
event shall more than 65% of the issued and outstanding Equity Interests of
such Foreign Subsidiary be pledged to secure Obligations of the Borrower.

 

“Foreign Subsidiary” shall mean any
Subsidiary that is incorporated or organized under the laws of any jurisdiction
other than the United States of America, any State thereof or the District of
Columbia.

 

 “GAAP”
shall mean generally accepted accounting principles in effect from time to time
in the United States, applied on a consistent basis, subject to the provisions
of Section 1.02.

 

“Governmental Authority” shall mean any
federal, state, local or foreign court or governmental agency, authority,
instrumentality or regulatory or legislative body.

 

“Guarantee” of or by any person (the “guarantor”)
shall mean (a) any obligation, contingent or otherwise, of the guarantor guaranteeing
or having the economic effect of guaranteeing any Indebtedness or other
obligation of any other person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of the guarantor,
direct or indirect, (i) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation (whether arising
by virtue of partnership arrangements, by agreement to keep well, to purchase
assets, goods, securities or services, to take-or-pay or otherwise) or to
purchase (or to advance or supply funds for the purchase of) any security for
the payment of such Indebtedness or other obligation, (ii) to purchase or lease
property, securities or services for the purpose of assuring the owner of such
Indebtedness or other obligation of the payment thereof, (iii) to maintain
working capital, equity capital or any other financial statement condition or
liquidity of the primary obligor so as to enable the primary obligor to pay
such Indebtedness or other obligation, (iv) entered into for the purpose of
assuring in any other manner the holders of such Indebtedness or other
obligation of the payment thereof or to protect such holders against loss in
respect thereof (in whole or in part) or (v) as an account party in respect of
any letter of credit or letter of guaranty issued to support such Indebtedness
or other obligation, or (b) any Lien on any assets of the guarantor securing
any Indebtedness (or any existing right, contingent or otherwise, of the holder
of Indebtedness to be secured by such a Lien) of any other person, whether or
not such Indebtedness or other obligation is assumed by the guarantor; provided,
however, that the term “Guarantee” shall not include endorsements for
collection or deposit, in either case in the ordinary course of business, or
customary and reasonable indemnity obligations in effect on the Closing Date or
entered into in connection with any acquisition or disposition of assets
permitted under this Agreement.

 

“guarantor” shall have the meaning assigned
to such term in the definition of the term “Guarantee.”

 

“Hazardous Materials” shall mean all
pollutants, contaminants, wastes, chemicals, materials, substances and
constituents of any nature which are subject to regulation or which would
reasonably be likely to give rise to liability under any Environmental Law,
including, without limitation,

 

17

 

explosive or radioactive substances or petroleum or
petroleum distillates, asbestos or asbestos containing materials,
polychlorinated biphenyls or radon gas.

 

“Holdings” shall have the meaning assigned to
such term in the introductory paragraph of this Agreement.

 

“Incremental Extensions of Credit” shall have
the meaning assigned to such term in Section 2.21.

 

“Incremental Facility Amendment” shall have
the meaning assigned to such term in Section 2.21.

 

“Indebtedness” of any person shall mean,
without duplication, (a) all obligations of such person for borrowed money, (b)
all obligations of such person evidenced by bonds, debentures, notes or similar
instruments to the extent the same would appear as a liability on a balance
sheet prepared in accordance with GAAP, (c) all obligations of such person
under conditional sale or other title retention agreements relating to property
or assets purchased by such person, (d) all obligations of such person issued
or assumed as the deferred purchase price of property or services (other than
current trade liabilities and current intercompany liabilities (but not any
refinancings, extensions, renewals or replacements thereof) incurred in the
ordinary course of business and maturing within 365 days after the incurrence
thereof), to the extent that the same would be required to be shown as a long term
liability on a balance sheet prepared in accordance with GAAP, (e) all
Guarantees by such person of Indebtedness of others, (f) all Capital Lease
Obligations of such person, (g) 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 outstanding Swap Agreements, (h) the
principal component of all obligations, contingent or otherwise, of such person
as an account party in respect of letters of credit and (i) the principal
component of all obligations of such person in respect of bankers’ acceptances.
The Indebtedness of any person shall include the Indebtedness of any
partnership in which such person is a general partner, other than to the extent
that the instrument or agreement evidencing such Indebtedness expressly limits
the liability of such person in respect thereof.  To the extent not otherwise included,
Indebtedness shall include the amount of any Receivables Net Investment.

 

“Indemnified Taxes” shall mean all Taxes
other than Excluded Taxes.

 

“Indemnitee” shall have the meaning assigned
to such term in Section 9.05(b).

 

“Information” shall have the meaning assigned
to such term in Section 3.14(a).

 

“Information Memorandum” shall mean the
Confidential Information Memorandum dated January, 2005, as modified or
supplemented prior to the Closing Date.

 

“Interest Coverage Ratio” shall have the
meaning assigned to such term in Section 6.11.

 

“Interest Election Request” shall mean a
request by the Borrower to convert or continue a Term Borrowing or Revolving
Borrowing in accordance with Section 2.07.

 

“Interest Expense” shall mean, with respect
to any person for any period, the sum of (a) gross interest expense of such
person for such period on a consolidated basis, including (i) the amortization
of debt discounts, (ii) the amortization of all fees (including fees with
respect to Swap Agreements) payable in connection with the incurrence of
Indebtedness to the extent included in interest expense and (iii) the portion
of any payments or accruals with respect to Capital Lease Obligations allocable

 

18

 

to interest expense, (b) capitalized interest of
such person and (c) commissions, discounts, yield and other fees and charges
incurred in connection with any Permitted Receivables Financing which are
payable to any person other than the Borrower or a Subsidiary Loan Party. For
purposes of the foregoing, gross interest expense shall be determined after
giving effect to any net payments made or received and costs incurred by the
Borrower and the Subsidiaries with respect to Swap Agreements.

 

“Interest Payment Date” shall mean, (a) with
respect to any Eurocurrency Loan, the last day of the Interest Period
applicable to the Borrowing of which such Loan is a part and, in the case of a
Eurocurrency Borrowing with an Interest Period of more than three months’
duration, each day that would have been an Interest Payment Date had successive
Interest Periods of three months’ duration been applicable to such Borrowing
and, in addition, the date of any refinancing or conversion of such Borrowing
with or to a Borrowing of a different Type, (b) with respect to any ABR Loan,
the last day of each calendar quarter and (c) with respect to any Swingline
Loan, the day that such Swingline Loan is required to be repaid pursuant to
Section 2.09(a).

 

“Interest Period” shall mean, as to any
Eurocurrency Borrowing, the period commencing on the date of such Borrowing or
on the last day of the immediately preceding Interest Period applicable to such
Borrowing, as applicable, and ending on the numerically corresponding day (or,
if there is no numerically corresponding day, on the last day) in the calendar
month that is 1, 2, 3 or 6 months thereafter (or 9 or 12 months, if at the time
of the relevant Borrowing, all relevant Lenders provide written consent
thereto), as the Borrower may elect, or the date any Eurocurrency Borrowing is
converted to an ABR Borrowing in accordance with Section 2.07 or repaid or
prepaid in accordance with Section 2.09, 2.10 or 2.11; provided, unless
the Administrative Agent shall otherwise agree, that with respect to periods
commencing prior to the 31st day after the Closing Date, the Borrower shall
only be permitted to request Interest Periods of seven days; provided, however,
that if any Interest Period would end on a day other than a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless
such next succeeding Business Day would fall in the next calendar month, in
which case such Interest Period shall end on the next preceding Business Day.
Interest shall accrue from and including the first day of an Interest Period to
but excluding the last day of such Interest Period.

 

“Investment” shall have the meaning assigned
to such term in Section 6.04.

 

“Issue Date” shall have the meaning assigned
to such term in the Offering Memorandum.

 

“Issuing Bank” shall mean UBS AG, Stamford
Branch and each other Issuing Bank designated pursuant to Section 2.05(k), in
each case in its capacity as an issuer of Letters of Credit hereunder, and its
successors in such capacity as provided in Section 2.05(i) and, solely with
respect to an Existing Letter of Credit (and any amendment, renewal or
extension thereof in accordance with this Agreement), the Lender that issued
such Existing Letter of Credit.  An
Issuing Bank may, in its discretion, arrange for one or more Letters of Credit
to be issued by Affiliates of such Issuing Bank, in which case the term “Issuing
Bank” shall include any such Affiliate with respect to Letters of Credit issued
by such Affiliate.

 

“Issuing Bank Fees” shall have the meaning
assigned to such term in Section 2.12(b).

 

“Joint Lead Arrangers” shall have the meaning
assigned to such term in the introductory paragraph of this Agreement.

 

“JPMP” shall mean J.P. Morgan Partners, LLC.

 

19

 

“Junior Capital” means any Qualified Capital
Stock of Holdings issued to the Permitted Investors and any Junior Indebtedness
issued to the Permitted Investors.

 

“Junior Indebtedness” means Indebtedness of
Holdings or the Borrower that (a) is expressly subordinated to the prior
payment in full in cash of the Obligations (and the related Guarantees) on
terms reasonably satisfactory to the Administrative Agent, (b) provides
that interest in respect of such Indebtedness shall be payable solely in kind,
(c) has a final maturity date that is not earlier than the date that is
91 days after the Term Facility Maturity Date and has no scheduled
payments of principal thereon (including pursuant to a sinking fund obligation)
or mandatory redemption obligations prior to such final maturity date and
(d) is not subject to covenants, events of default and remedies that are less
favorable to Holdings or the Borrower, as the case may be, than the terms of
the Senior Subordinated Note Documents as reasonably determined by the
Administrative Agent.

 

“L/C Disbursement” shall mean a payment or
disbursement made by an Issuing Bank pursuant to a Letter of Credit.

 

“L/C Participation Fee” shall have the
meaning assigned such term in Section 2.12(b).

 

“Lender” shall mean each financial
institution listed on Schedule 2.01, as well as any person that becomes
a “Lender” hereunder pursuant to Section 9.04.

 

“Lender Default” shall mean (i) the refusal
(which has not been retracted) of a Lender to make available its portion of any
Borrowing, to acquire participations in a Swingline Loan pursuant to Section
2.04 or to fund its portion of any unreimbursed payment under Section 2.05(e),
or (ii) a Lender having notified in writing the Borrower and/or the
Administrative Agent that it does not intend to comply with its obligations
under Section 2.04, 2.05 or 2.06.

 

“Lending Office” shall mean, as to any Lender,
the applicable branch, office or Affiliate of such Lender designated by such
Lender to make Loans.

 

“Letter of Credit” shall mean any letter of
credit (including each Existing Letter of Credit) issued pursuant to Section
2.05.

 

“LIBO Rate” shall mean, with respect to any
Eurocurrency Borrowing for any Interest Period, the rate per annum determined
by the Administrative Agent at approximately 11:00 a.m., London time, on the
Quotation Day for such Interest Period by reference to the British Bankers’
Association Interest Settlement Rates for deposits in the currency of such
Borrowing (as reflected on the applicable Telerate screen page), for a period
equal to such Interest Period; provided that, to the extent that an
interest rate is not ascertainable pursuant to the foregoing provisions of this
definition, the “LIBO Rate” shall be the average (rounded upward, if necessary,
to the next 1/100 of 1%) of the respective interest rates per annum at which
deposits in the currency of such Borrowing are offered for such Interest Period
to major banks in the London interbank market by the principal London office of
the bank serving as the Administrative Agent at approximately 11:00 a.m.,
London time, on the Quotation Day for such Interest Period.

 

“Lien” shall mean, with respect to any asset,
(a) any mortgage, deed of trust, lien, hypothecation, pledge, encumbrance,
charge or security interest in or on such asset, (b) the interest of a vendor
or a lessor under any conditional sale agreement, capital lease or title retention
agreement (or any financing lease having substantially the same economic effect
as any of the foregoing) relating to such asset and (c) in the case of
securities (other than securities representing an interest in a joint venture
that is not a Subsidiary), any purchase option, call or similar right of a
third party with respect to such securities

 

20

 

to the extent that any such right is intended to
have an effect equivalent to that of a security interest in such securities.

 

“Loan Documents” shall mean this Agreement,
the Letters of Credit, the Security Documents and any Note issued under Section
2.09(e), any Incremental Facility Amendment, and solely for the purposes of
Sections 4.02(m) and 7.01(c) hereof, the Fee Letter.

 

“Loan Parties” shall mean Holdings, the
Borrower and the Subsidiary Loan Parties.

 

“Loans”
shall mean the Term Loans, the Revolving Facility Loans, the Swingline Loans
and loans in respect of Incremental Extensions of Credit.

 

 “Local Time”
shall mean New York City time.

 

“Majority Lenders” of any Facility shall
mean, at any time, Lenders under such Facility having Loans and unused
Commitments representing more than 50% of the sum of all Loans outstanding
under such Facility and unused Commitments under such Facility at such time.

 

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

 

“Material Adverse Effect” shall mean a
material adverse effect on the business, property, operations or condition of
the Borrower and its Subsidiaries, taken as a whole.

 

“Material Indebtedness” shall mean
Indebtedness (other than Loans and Letters of Credit) of any one or more of
Holdings, the Borrower or any Subsidiary in an aggregate principal amount
exceeding $15 million.

 

“Maximum Rate” shall have the meaning
assigned to such term in Section 9.09.

 

“Merger” shall mean the merger of the
Acquired Business with and into the Borrower, with the Acquired Business as the
surviving corporation, pursuant to the Acquisition Agreement.

 

“Moody’s” shall mean Moody’s Investors
Service, Inc.

 

“Mortgaged Properties” shall mean the owned
real properties of the Loan Parties set forth on Schedule 1.01(c) and
each additional real property encumbered by a Mortgage pursuant to Section
5.10.

 

“Mortgages” shall mean the mortgages, deeds
of trust or deeds to secure debt delivered pursuant to the Collateral and
Guarantee Requirement or Section 5.10, as amended, supplemented or otherwise
modified from time to time, with respect to Mortgaged Properties, each substantially
in the form of Exhibit D, with such changes as consented to by the
Administrative Agent as evidenced by its acceptance of any Mortgage containing
any such change.

 

“Multiemployer Plan” shall mean a
multiemployer plan as defined in Section 4001(a)(3) of ERISA to which the
Borrower, Holdings or any Subsidiary or any ERISA Affiliate (other than one
considered an ERISA Affiliate only pursuant to subsection (m) or (o) of Code
Section 414) is making or accruing an obligation to make contributions, or has
within any of the preceding six plan years made or accrued an obligation to
make contributions.

 

21

 

“Net Income” shall mean, with respect to any
person, the net income (loss) of such person, determined in accordance with
GAAP and before any reduction in respect of preferred stock dividends.

 

“Net Proceeds” shall mean:

 

(a)           100% of the
cash proceeds actually received by Holdings, the Borrower or any of their
Subsidiaries (including any cash payments received by way of deferred payment
of principal pursuant to a note or installment receivable or purchase price
adjustment receivable or otherwise and including casualty insurance settlements
and condemnation awards, but only as and when received) from any loss, damage,
destruction or condemnation of, or any sale, transfer or other disposition
(including any sale and leaseback of assets and any mortgage or lease of real
property) to any person of any asset or assets of Holdings, the Borrower or any
Subsidiary (other than those pursuant to Section 6.05(a), (b), (c), (d) (except
as contemplated by Section 6.03(ii)(b)), (e), (f), (h), (i) or (j)), net of (i) attorneys’ fees,
accountants’ fees, investment banking fees, survey costs, title insurance
premiums, and related search and recording charges, transfer taxes, deed or
mortgage recording taxes, required debt payments and required payments of other
obligations relating to the applicable asset (other than pursuant hereto or
pursuant to any Senior Subordinated Notes or Permitted Debt Securities or any
Permitted Refinancing Indebtedness in respect thereof), other customary
expenses and brokerage, consultant and other customary fees actually incurred
in connection therewith and (ii) Taxes paid or payable as a result thereof, provided
that, except in the case of the sale, transfer or other disposition of an asset
or group of related assets resulting in Net Proceeds in excess of $15 million,
if no Event of Default exists and Holdings or the Borrower shall deliver a
certificate of a Responsible Officer of Holdings or the Borrower to the
Administrative Agent promptly following receipt of any such proceeds setting
forth Holdings’ or the Borrower’s intention to use any portion of such
proceeds, to acquire, maintain, develop, construct, improve, upgrade or repair
assets useful in the business of Holdings, the Borrower and the Subsidiaries or
to make investments in Permitted Business Acquisitions, in each case within 12
months of such receipt, such portion of such proceeds shall not constitute Net
Proceeds except to the extent not so used or not contractually committed to be
so used within such 12-month period (it being understood that if any portion of
such proceeds are not so used within such 12-month period because such amount is
contractually committed to be used and subsequent to such date such contract is
terminated or expires without such portion being so used, such remaining
portion shall constitute Net Proceeds as of the date of such termination or
expiration without giving effect to this proviso), and provided, further,
that (x) no proceeds realized in a single transaction or series of related
transactions shall constitute Net Proceeds unless such proceeds shall exceed
$2.5 million and (y) no proceeds shall constitute Net Proceeds in any fiscal
year until the aggregate amount of all such proceeds in such fiscal year shall
exceed $10 million, and

 

 (b)          100% of the
cash proceeds from the incurrence, issuance or sale by the Borrower or any
Subsidiary of any Indebtedness (other than Excluded Indebtedness), net of all
taxes and fees (including investment banking fees), commissions, costs and
other expenses, in each case incurred in connection with such issuance or sale.

 

For purposes of calculating
the amount of Net Proceeds, fees, commissions and other costs and expenses
payable to Holdings or the Borrower or any Affiliate of either of them shall be
disregarded, except for financial advisory fees customary in type and amount
paid to Permitted Investors.

 

“Non-Consenting Lender” shall have the
meaning assigned to such term in Section 2.19(c).

 

“Note” shall have the meaning assigned to
such term in Section 2.09(e).

 

22

 

“Obligations” shall mean all amounts owing to
the Administrative Agent or any Lender pursuant to the terms of this Agreement
or any other Loan Document.

 

“Offering Memorandum” shall mean the Offering
Memorandum, dated February 3, 2005, in respect of the Senior Subordinated
Notes.

 

“Other Taxes” shall mean any and all present
or future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies arising from any payment made  hereunder or
from the execution, delivery or enforcement of, or otherwise with respect to,
the Loan Documents, and any and all interest and penalties related thereto.

 

“Participant” shall have the meaning assigned
to such term in Section 9.04(c).

 

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

 

“Perfection Certificate” shall mean a
certificate in the form of Exhibit II to the Collateral Agreement or any
other form approved by the Administrative Agent.

 

“Permitted Business Acquisition” shall mean
any acquisition of all or substantially all the assets of, or all the Equity
Interests (other than directors’ qualifying shares) in, a person or division or
line of business of a person (or any subsequent investment made in a person,
division or line of business previously acquired in a Permitted Business
Acquisition) if (a) such acquisition was not preceded by, or effected pursuant
to, an unsolicited or hostile offer by the acquirer or an Affiliate of the
acquirer and (b) immediately after giving effect thereto: (i) no Event of
Default shall have occurred and be continuing or would result therefrom; (ii)
all transactions related thereto shall be consummated in accordance with
applicable laws; (iii) (A) the Borrower and its Subsidiaries shall be in
compliance, on a Pro Forma Basis after giving effect to such acquisition or
formation, with the Financial Performance Covenants recomputed as at the last
day of the most recently ended fiscal quarter of the Borrower and its
Subsidiaries, and the Borrower shall have delivered to the Administrative Agent
a certificate of a Responsible Officer of the Borrower to such effect, together
with all relevant financial information for such Subsidiary or assets, and (B)
any acquired or newly formed Subsidiary shall not be liable for any
Indebtedness (except for Indebtedness permitted by Section 6.01); and (iv) the
Available Unused Commitments shall be no less than $15 million.

 

“Permitted Cure Security” shall mean an
equity security of Holdings having no mandatory redemption, repurchase or
similar requirements prior to 91 days after the Term Facility Maturity Date,
and upon which all dividends or distributions (if any) shall, prior to 91 days
after the Term Facility Maturity Date, be payable solely in additional shares
of such equity security.

 

“Permitted Debt Securities” shall mean (a)
unsecured senior subordinated notes issued by the Borrower and (b) unsecured
senior notes, (i) the terms of which (1) do not provide for any scheduled
repayment, mandatory redemption or sinking fund obligation prior to the date
that is six months after the Term Facility Maturity Date and (2) in the case of
unsecured senior subordinated notes, provide for subordination of payments in
respect of such notes to the Obligations and guarantees thereof under the Loan
Documents to substantially the same extent as the Senior Subordinated Note
Indenture, (ii) the covenants, events of default, Subsidiary guarantees and
other terms of which (other than interest rate and redemption premiums), taken
as a whole, are not more restrictive to the Borrower and its Subsidiaries than
those in the Senior Subordinated Notes with such changes in the case of the
senior secured notes as are customary in the good faith determination of the
Borrower, (iii) in respect of which no Subsidiary of the Borrower that is not
an obligor under the Loan Documents is an obligor and (iv) the proceeds of

 

23

 

which are used to finance a Permitted Business
Acquisition or to pay or prepay Term Loans or to reduce the Revolving Facility
Commitments hereunder; provided that no unsecured senior notes shall be
issued by the Borrower in order to finance a Permitted Business Acquisition if,
after giving effect to such Permitted Business Acquisition, the Total Senior
Leverage Ratio is greater than 3.5 to 1:00.

 

“Permitted Investments” shall mean:

 

(a)           direct
obligations of the United States of America or any member of the European Union
or any agency thereof or obligations guaranteed by the United States of America
or any member of the European Union or any agency thereof, in each case with
maturities not exceeding two years;

 

(b)           time deposit
accounts, certificates of deposit and money market deposits maturing within 180
days of the date of acquisition thereof issued by a bank or trust company that
is organized under the laws of the United States of America, any state thereof
or any foreign country recognized by the United States of America having
capital, surplus and undivided profits in excess of $250 million and whose
long-term debt, or whose parent holding company’s long-term debt, is rated A
(or such similar equivalent rating or higher by at least one nationally
recognized statistical rating organization (as defined in Rule 436 under the
Securities Act);

 

(c)           repurchase
obligations with a term of not more than 180 days for underlying securities of
the types described in clause (a) above entered into with a bank meeting the
qualifications described in clause (b) above;

 

(d)           commercial
paper, maturing not more than one year after the date of acquisition, issued by
a corporation (other than an Affiliate of any Borrower) organized and in
existence under the laws of the United States of America or any foreign country
recognized by the United States of America with a rating at the time as of
which any investment therein is made of P-1 (or higher) according to Moody’s,
or A-1 (or higher) according to S&P;

 

(e)           securities with
maturities of two years or less from the date of acquisition issued or fully
guaranteed by any State, commonwealth or territory of the United States of
America, or by any political subdivision or taxing authority thereof, and rated
at least A by S&P or A by Moody’s;

 

(f)            shares of
mutual funds whose investment guidelines restrict 95% of such funds’
investments to those satisfying the provisions of clauses (a) through (e) above;

 

(g)           money market
funds that (i) comply with the criteria set forth in Rule 2a-7 under the
Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s
and (iii) have portfolio assets of at least $5,000.0 million; and

 

(h)           time deposit accounts,
certificates of deposit and money market deposits in an aggregate face amount
not in excess of 1/2 of 1% of the total assets of the Borrower and the
Subsidiaries, on a consolidated basis, as of the end of the Borrower’s most
recently completed fiscal year.

 

“Permitted Investors” shall mean JPMP and
Peak Investment LLC and any of their respective Affiliates or officers.

 

“Permitted Receivables Documents” shall mean
all documents and agreements evidencing, relating to or otherwise governing a
Permitted Receivables Financing.

 

24

 

“Permitted Receivables Financing” shall mean
one or more transactions pursuant to which (i) Receivables Assets or interests
therein are sold to or financed by one or more Special Purpose Receivables
Subsidiaries, and (ii) such Special Purpose Receivables Subsidiaries finance
their acquisition of such Receivables Assets or interests therein, or the
financing thereof, by selling or borrowing against such Receivables Assets; provided that (A) recourse to the Borrower or
any Subsidiary (other than the Special Purpose Receivables Subsidiaries) and
any obligations or agreements of the Borrower or any Subsidiary (other than the
Special Purpose Receivables Subsidiaries) in connection with such transactions
shall be limited to the extent customary for similar transactions in the
applicable jurisdictions (including, to the extent applicable, in a manner
consistent with the delivery of a “true sale”/”absolute transfer” opinion with
respect to any transfer by the Borrower or any Subsidiary (other than a Special
Purpose Receivables Subsidiary), and (B) the aggregate Receivables Net
Investment since the Closing Date shall not exceed $50 million at any time.

 

“Permitted Refinancing Indebtedness” shall
mean any Indebtedness issued in exchange for, or the net proceeds of which are
used to extend, refinance, renew, replace, defease or refund (collectively, to “Refinance”),
the Indebtedness being Refinanced (or previous refinancings thereof
constituting Permitted Refinancing Indebtedness); provided that (a) the
principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted
value, if applicable) of the Indebtedness so Refinanced (plus unpaid accrued
interest and premium thereon and underwriting discounts, fees, commissions and
expenses), (b) the average life to maturity of such Permitted Refinancing
Indebtedness is greater than or equal to that of the Indebtedness being Refinanced
or the Term Loans, (c) if the Indebtedness being Refinanced is subordinated in
right of payment to the Obligations under this Agreement, such Permitted
Refinancing Indebtedness shall be subordinated in right of payment to such
Obligations on terms at least as favorable to the Lenders as those contained in
the documentation governing the Indebtedness being Refinanced, (d) no Permitted
Refinancing Indebtedness shall have different obligors, or greater guarantees
or security, than the Indebtedness being Refinanced and (e) if the Indebtedness
being Refinanced is secured by any collateral (whether equally and ratably
with, or junior to, the Secured Parties or otherwise), such Permitted
Refinancing Indebtedness may be secured by such collateral (including in
respect of working capital facilities of Foreign Subsidiaries otherwise
permitted under this Agreement only, any collateral pursuant to after-acquired
property clauses to the extent any such collateral secured the Indebtedness
being Refinanced) on terms no less favorable to the Secured Parties than those
contained in the documentation governing the Indebtedness being Refinanced; and
provided  further, that with respect to a Refinancing of (x) the
Senior Subordinated Notes or Permitted Debt Securities that are subordinated,
such Permitted Refinancing Indebtedness shall (i) be subordinated to the
guarantee by Holdings and the Subsidiary Loan Parties of the Facilities and
(ii) be otherwise on terms not materially less favorable to the Lenders than
those contained in the documentation governing the Indebtedness being
refinanced and (y) Permitted Debt Securities, such Permitted Refinancing
Indebtedness shall meet the requirements of clauses (i), (ii) and (iii) of the
definition of “Permitted Debt Securities.”

 

“person” shall mean any natural person,
corporation, business trust, joint venture, association, company, partnership,
limited liability company or government, individual or family trusts, or any
agency or political subdivision thereof.

 

“Plan” shall mean any employee pension
benefit plan (other than a Multiemployer Plan) subject to the provisions of
Title IV of ERISA or Section 412 of the Code and in respect of which Holdings,
the Borrower, any Subsidiary or any ERISA Affiliate is (or, if such plan were
terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as
defined in Section 3(5) of ERISA.

 

“Platform” shall have the meaning assigned to
such term in Section 9.17(b).

 

25

 

“Pledged Collateral” shall have the meaning assigned to such
term in the Collateral Agreement.

 

“Pricing Grid” shall mean, with respect to the Revolving
Facility Loans, the table set forth below:

 

	
  Consolidated Leverage

  Ratio

  	
   

  	
  Applicable Margin for

  ABR Loans

  	
   

  	
  Applicable Margin for

  Eurocurrency Loans

  	
   

  	
  Commitment Fee Rate

  	
   

  
	
  Greater than or
  equal to 4.5 to 1.0

  	
   

  	
  1.25

  	
  %

  	
  2.25

  	
  %

  	
  0.50

  	
  %

  
	
  Less than 4.5 to
  1.0, but greater than or equal to 3.5 to 1.00

  	
   

  	
  1.00

  	
  %

  	
  2.00

  	
  %

  	
  0.50

  0.50

  	
  %

  %

  
	
  Less than 3.5 to
  1.0

  	
   

  	
  0.75

  	
  %

  	
  1.75

  	
  %

  	
  0.375

  	
  %

  

 

For the purposes of the Pricing Grid, changes in the Applicable Margin
or the Commitment Fee Rate resulting from changes in the Consolidated Leverage
Ratio shall become effective on the date (the “Adjustment Date”) that is
three Business Days after the date on which financial statements are delivered
to the Lenders pursuant to Section 5.04 and shall remain in effect until the
next change to be effected pursuant to this paragraph. If any financial
statements referred to above are not delivered within the time periods
specified in Section 5.04, then, until the date that is three Business
Days after the date on which such financial statements are delivered, the
highest rate set forth in each column of the Pricing Grid shall apply. In
addition, at all times while an Event of Default shall have occurred and be
continuing, the highest rate set forth in each column of the Pricing Grid shall
apply. Each determination of the Consolidated Leverage Ratio pursuant to the
Pricing Grid shall be made in a manner consistent with the determination
thereof pursuant to Section 6.12.

 

“primary obligor” shall have the meaning given such term in the
definition of the term “Guarantee.”

 

“Pro Forma Basis” shall mean, as to
any person, for any events as described below that occur subsequent to the
commencement of a period for which the financial effect of such events is being
calculated, and giving effect to the events for which such calculation is being
made, such calculation as will give pro  forma effect to such
events as if such events occurred on the first day of the four consecutive
fiscal quarter period ended on or before the occurrence of such event (the “Reference
Period”):  (i) in making any
determination of EBITDA, pro  forma effect shall be given to any
asset disposition, to any asset acquisition, any discontinued operation or any
operational change (or any similar transaction or transactions that require a
waiver or consent of the Required Lenders pursuant to Section 6.04 or 6.05), in
each case that occurred during the Reference Period (or, in the case of
determinations made pursuant to the definition of the term “Permitted Business
Acquisition,” occurring during the Reference Period or thereafter and through
and including the date upon which the respective Permitted Business Acquisition
is consummated), (ii) in making any determination on a Pro Forma Basis, (x) all
Indebtedness (including Indebtedness incurred or assumed and for which the
financial effect is being calculated, whether incurred under this Agreement or
otherwise, but excluding normal fluctuations in revolving Indebtedness incurred
for working capital purposes and amounts outstanding under any Permitted
Receivables Financing, in each case not to finance any acquisition) incurred or
permanently repaid during the Reference Period (or, in the case of
determinations made pursuant to the definition of the term “Permitted Business
Acquisition,” occurring during the Reference Period or thereafter and through
and including the date upon which the respective Permitted Business Acquisition
is consummated) shall be deemed to have been

 

26

 

incurred or repaid at the
beginning of such period and (y) Interest Expense of such person attributable
to interest on any Indebtedness, for which pro forma effect is being given as
provided in preceding clause (x), bearing floating interest rates shall be
computed on a pro forma basis as if the rates that would have been in effect
during the period for which pro forma effect is being given had been actually
in effect during such periods and (iii) the Subsidiary Redesignation, if any,
then being designated as well as any other Subsidiary Redesignation after the
first day of the relevant Reference Period and on or prior to the date of the
respective Subsidiary Redesignation then being designated.

 

Pro forma calculations made pursuant to the
definition of the term “Pro Forma Basis” shall be determined in good faith by a
Responsible Officer of the Borrower and, for any fiscal period ending on or
prior to the first anniversary of an asset acquisition, asset disposition,
discontinued operation or operational change (or any similar transaction or
transactions that require a waiver or consent of the Required Lenders pursuant
to Section 6.04 or 6.05), may include adjustments to reflect operating expense
reductions and other operating improvements or synergies reasonably expected to
result from such asset acquisition, asset disposition or other similar
transaction, as follows:  (x) for
purposes of determining the Applicable Margin, such adjustments shall reflect
demonstrable operating expense reductions and other demonstrable operating
improvements or synergies that would be includable in pro  forma
financial statements prepared in accordance with Regulation S-X under the
Securities Act; and (y) for purposes of determining compliance with the
Financial Performance Covenants and achievement of other financial measures
provided for herein, such adjustments may reflect additional operating expense
reductions and other additional operating improvements and synergies that would
not be includable in pro  forma financial statements prepared in
accordance with Regulation S-X but for which substantially all of the steps
necessary for the realization thereof have been taken or are reasonably
anticipated by the Borrower to be taken in the next 12 month period following
the consummation thereof and, are estimated on a good faith basis by the
Borrower; provided,  however that the aggregate amount of any such
adjustments with respect to operational changes shall not exceed $7.5 million
in any fiscal year or $15 million during the term of this Agreement.  The Borrower shall deliver to the
Administrative Agent a certificate of a Financial Officer of the Borrower
setting forth such demonstrable or additional operating expense reductions and
other operating improvements or synergies and information and calculations
supporting them in reasonable detail.

 

“Pro Forma EBITDA” shall have the meaning assigned to such term
in Section 3.05(a).

 

“Pro Forma Financial Statements” shall have the meaning assigned
to such term in Section 3.05(a).

 

“Projections” shall mean the projections of Holdings, the
Borrower and the Subsidiaries included in the Information Memorandum and any
other projections and any forward-looking statements (including statements with
respect to booked business) of such entities furnished to the Lenders or the
Administrative Agent by or on behalf of Holdings, the Borrower or any of the
Subsidiaries prior to the Closing Date.

 

“Qualified Capital Stock” means any Equity Interests of any
Person that does not by its terms (or by the terms of any security into which
it is convertible or for which it is exchangeable or exercisable) or upon the
happening of any event (a) provide for scheduled payments of dividends in
cash, (b) become mandatorily redeemable (other than pursuant to customary
provisions relating to redemption upon a change of control or sale of assets)
pursuant to a sinking fund obligation or otherwise prior to the date that is 91
days after the Term Facility Maturity Date, (c) become convertible or
exchangeable at the option of the holder thereof for Indebtedness or Equity
Interests that are not Qualified Capital Stock, or (d) contain any
maintenance covenants, other covenants adverse to the Lenders or remedies
(other than voting rights and increases in dividends).

 

27

 

“Qualified IPO” shall mean an underwritten public offering of
the Equity Interests of Holdings which generates cash proceeds to Holdings of
at least $100.0 million.

 

“Quotation Day” shall mean, with respect to any Eurocurrency
Borrowing and any Interest Period, the day on which it is market practice in
the relevant interbank market for prime banks to give quotations for deposits
in the currency of such Borrowing for delivery on the first day of such
Interest Period. If such quotations would normally be given by prime banks on
more than one day, the Quotation Day will be the last of such days.

 

“Receivables Assets” shall mean accounts receivable (including
any bills of exchange) and related assets and property from time to time
originated, acquired or otherwise owned by the Borrower or any Subsidiary.

 

“Receivables Net Investment” shall mean the aggregate cash
amount paid by the lenders or purchasers under any Permitted Receivables
Financing in connection with their purchase of, or the making of loans secured
by, Receivables Assets or interests therein, as the same may be reduced from
time to time by collections with respect to such Receivables Assets or
otherwise in accordance with the terms of the Permitted Receivables Documents
(but excluding any such collections used to make payments of items included in
clause (c) of the definition of Interest Expense); provided, however, that if all
or any part of such Receivables Net Investment shall have been reduced by
application of any distribution and thereafter such distribution is rescinded
or must otherwise be returned for any reason, such Receivables Net Investment
shall be increased by the amount of such distribution, all as though such
distribution had not been made.

 

“Reference Period” shall have the meaning assigned to such term
in the definition of the term “Pro Forma Basis.”

 

“Refinance” shall have the meaning assigned to such term in the
definition of the term “Permitted Refinancing Indebtedness,” and “Refinanced”
shall have a meaning correlative thereto.

 

“Register” shall have the meaning assigned to such term in
Section 9.04(b).

 

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

 

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

 

“Related Parties” shall mean, with respect to any specified
person, such person’s Affiliates and the respective directors, trustees,
officers, employees, agents and advisors of such person and such person’s
Affiliates.

 

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

 

“Remaining Present Value” shall mean, as of any date with
respect to any lease, the present value as of such date of the scheduled future
lease payments with respect to such lease, determined with a discount rate
equal to a market rate of interest for such lease reasonably determined at the
time such lease was entered into.

 

28

 

“Reportable Event” shall mean any reportable event as defined in
Section 4043(c) of ERISA or the regulations issued thereunder, other than those
events as to which the 30-day notice period referred to in Section 4043(c) of
ERISA has been waived, with respect to a Plan (other than a Plan maintained by
an ERISA Affiliate that is considered an ERISA Affiliate only pursuant to
subsection (m) or (o) of Section 414 of the Code).

 

“Required Lenders” shall mean, at any time, Lenders having (a)
Loans (other than Swingline Loans) outstanding, (b) Revolving L/C Exposures,
(c) Swingline Exposures and (d) Available Unused Commitments, that taken
together, represent more than 50% of the sum of (w) all Loans (other than
Swingline Loans) outstanding, (x) Revolving L/C Exposures, (y) Swingline
Exposures and (z) the total Available Unused Commitments at such time. The
Loans, Revolving L/C Exposures, Swingline Exposures and Available Unused
Commitment of any Defaulting Lender shall be disregarded in determining
Required Lenders at any time.

 

“Required Percentage” shall mean, with respect to an Excess Cash
Flow Period, 50%, provided that, commencing with the fiscal year 2006,
(a) if the Senior Secured Leverage Ratio at the end of such Excess Cash Flow
Period is greater than 3.00:1.00 but less than or equal to 3.50:1.00, such
percentage shall be 25%, and (b) if the Senior Secured Leverage Ratio is at the
end of such Excess Cash Flow Period is less than or equal to 3.00:1.00, such
percentage shall be 0%.

 

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

 

“Revolving Facility” shall mean the Revolving Facility
Commitments and the extensions of credit made hereunder by the Revolving
Facility Lenders.

 

“Revolving Facility Borrowing” shall mean a Borrowing comprised
of Revolving Facility Loans.

 

“Revolving Facility Commitment” shall mean, with respect to each
Revolving Facility Lender, the commitment of such Revolving Facility Lender to
make Revolving Facility Loans pursuant to Section 2.01, expressed as an amount
representing the maximum aggregate permitted amount of such Revolving Facility
Lender’s Revolving Facility Credit Exposure hereunder, as such commitment may
be (a) reduced from time to time pursuant to Section 2.08 and (b) reduced or
increased from time to time pursuant to assignments by or to such Lender under
Section 9.04. The initial amount of each Revolving Facility Lender’s Revolving
Facility Commitment is set forth on Schedule 2.01, or in the Assignment
and Acceptance pursuant to which such Revolving Facility Lender shall have
assumed its Revolving Facility Commitment, as applicable. The aggregate amount
of the Revolving Facility Commitments is $100 million.

 

“Revolving Facility Credit Exposure” shall mean, at any time,
the sum of (a) the aggregate principal amount of the Revolving Facility Loans
outstanding at such time, (b) the Swingline Exposure at such time and (c) the
Revolving L/C Exposure at such time. The Revolving Facility Credit Exposure of
any Revolving Facility Lender at any time shall be the sum of (x) the aggregate
principal amount of such Revolving Facility Lender’s Revolving Facility Loans
outstanding at such time and (y) such Revolving Facility Lender’s (i) Swingline
Exposure and (ii) Revolving L/C Exposure at such time.

 

“Revolving Facility Lender” shall mean a
Lender with a Revolving Facility Commitment or with outstanding
Revolving Facility Loans.

 

29

 

“Revolving Facility Loan” shall mean a Loan made by a Revolving
Facility Lender pursuant to Section 2.01.

 

“Revolving Facility Maturity Date” shall mean February 11, 2011.

 

“Revolving Facility Percentage” shall mean, with respect to any
Revolving Facility Lender, the percentage of the total Revolving Facility
Commitments represented by such Lender’s Revolving Facility Commitment. If the
Revolving Facility Commitments have terminated or expired, the Revolving
Facility Percentages shall be determined based upon the Revolving Facility
Commitments most recently in effect, giving effect to any assignments pursuant
to Section 9.04.

 

“Revolving L/C Exposure” shall mean at any time the sum of (a)
the aggregate undrawn amount of all Letters of Credit outstanding at such time
and (b) the aggregate principal amount of all L/C Disbursements that have not
yet been reimbursed at such time. The Revolving L/C Exposure of any Revolving
Facility Lender at any time shall mean its Revolving Facility Percentage of the
aggregate Revolving L/C Exposure at such time.

 

“S&P” shall mean Standard & Poor’s Ratings Group, Inc.

 

“Sale and Lease-Back Transaction” shall have the meaning
assigned to such term in Section 6.03.

 

“SEC” shall mean the Securities and Exchange Commission or any
successor thereto.

 

“Secured Parties” shall mean the “Secured Parties” as defined in
the Collateral Agreement.

 

“Securities Act” shall mean the Securities Act of 1933, as
amended.

 

“Security Documents” shall mean the Mortgages, the Collateral
Agreement, the Foreign Pledge Agreements and each of the security agreements,
mortgages and other instruments and documents executed and delivered pursuant
to any of the foregoing or pursuant to Section 5.10.

 

“Senior Secured Debt” at any date shall mean
the sum of (a) the aggregate principal amount of the Obligations outstanding
under this Agreement plus (b) the aggregate principal amount of all
other Indebtedness of the Borrower and its Subsidiaries that is secured by any
Lien on any asset of the Borrower or any of its Subsidiaries, is outstanding at
such time and is otherwise included in Consolidated Debt.

 

“Senior Secured Leverage Ratio” shall mean, on
any date, the ratio of (a) Senior Secured Debt as of such date to (b) EBITDA
for the period of four consecutive fiscal quarters of the Borrower most
recently ended as of such date, all determined on a consolidated basis in
accordance with GAAP; provided that EBITDA shall be determined for the
respective Test Period on a Pro Forma Basis.

 

“Senior Subordinated Note Documents”
shall mean the Senior Subordinated Notes and the Senior Subordinated Note
Indenture.

 

“Senior Subordinated Note Indenture”
shall mean the Indenture dated as of February 11, 2005 under which the Senior
Subordinated Notes were issued, among the Borrower and certain of the
Subsidiaries party thereto and the trustee named therein from time to time, as
in effect on the Closing

 

30

 

Date and as amended, restated,
supplemented or otherwise modified from time to time in accordance with the
requirements thereof and of this Agreement.

 

“Senior Subordinated Notes” shall mean
the Borrower’s 7.5% Senior Subordinated Notes due 2013, issued pursuant to the
Senior Subordinated Note Indenture and any notes issued by the Borrower in
exchange for, and as contemplated by, the Senior Subordinated Notes and the
related registration rights agreement with substantially identical terms as the
Senior Subordinated Notes.

 

“Shelf Registration Statement” shall have the meaning assigned
to such term in the Offering Memorandum.

 

“Special Purpose Receivables Subsidiary”
shall mean a direct or indirect Subsidiary of the Borrower established in
connection with a Permitted Receivables Financing for the acquisition of
Receivables Assets or interests therein, and which is organized in a manner
intended to reduce the likelihood that it would be substantively consolidated
with Holdings, the Borrower or any of the Subsidiaries (other than Special
Purpose Receivables Subsidiaries) in the event Holdings, the Borrower or any
such Subsidiary becomes subject to a proceeding under the U.S. Bankruptcy Code
(or other insolvency law).

 

 “Sponsors”
shall mean JPMP and its Controlled Affiliates.

 

“Statutory Reserves” shall mean, with
respect to any currency, any reserve, liquid asset or similar requirements
established by any Governmental Authority of the United States of America or of
the jurisdiction of such currency or any jurisdiction in which Loans in such
currency are made to which banks in such jurisdiction are subject for any
category of deposits or liabilities customarily used to fund loans in such
currency or by reference to which interest rates applicable to Loans in such
currency are determined.

 

“Subordinated Intercompany Debt” shall have the meaning assigned
to such term in Section 6.01(e).

 

“subsidiary” shall mean, with respect to any person (herein
referred to as the “parent”), any corporation, partnership, association
or other business entity (a) of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary
voting power or more than 50% of the general partnership interests are, at the
time any determination is being made, directly or indirectly, owned, Controlled
or held, or (b) that is, at the time any determination is made, otherwise
Controlled, by the parent or one or more subsidiaries of the parent or by the
parent and one or more subsidiaries of the parent.

 

“Subsidiary” shall mean, unless the context otherwise requires,
a subsidiary of the Borrower. 
Notwithstanding the foregoing (and except for purposes of Sections 3.09,
3.13, 3.15, 3.16, 5.03, 5.09 and 7.01(k), and the definition of Unrestricted
Subsidiary contained herein), an Unrestricted Subsidiary shall be deemed not to
be a Subsidiary of the Borrower or any of its Subsidiaries for purposes of this
Agreement.

 

“Subsidiary Loan Party” shall mean (A) each Wholly Owned
Subsidiary of the Borrower that is not (a) a Foreign Subsidiary or (b) listed
on Schedule 1.01(a) and (B) each Domestic Subsidiary of the Borrower or the
Subsidiaries that guarantees any Indebtedness of the Borrower or any of the
Subsidiaries.

 

31

 

“Subsidiary Redesignation” shall have the meaning provided in
the definition of “Unrestricted Subsidiary” contained in this Section 1.01.

 

“Swap Agreement” shall mean any agreement with respect to any
swap, forward, future or derivative transaction or option or similar agreement
involving, or settled by reference to, one or more rates, currencies,
commodities, equity or debt instruments or securities, or economic, financial
or pricing indices or measures of economic, financial or pricing risk or value
or any similar transaction or any combination of these transactions, provided
that no phantom stock or similar plan providing for payments only on account of
services provided by current or former directors, officers, employees or
consultants of Holdings, the Borrower or any of the Subsidiaries shall be a
Swap Agreement.

 

“Swingline Borrowing Request” shall mean a request by a Borrower
substantially in the form of Exhibit C-2.

 

“Swingline Borrowing” shall mean a Borrowing comprised of
Swingline Loans.

 

“Swingline Commitment” shall mean, with respect to each
Swingline Lender, the commitment of such Swingline Lender to make Swingline
Loans pursuant to Section 2.04. The aggregate amount of the Swingline
Commitments on the Closing Date is $25 million.

 

“Swingline Exposure” shall mean at any time the aggregate
principal amount of all outstanding Swingline Borrowings at such time. The
Swingline Exposure of any Revolving Facility Lender at any time shall mean its
Revolving Facility Percentage of the aggregate Swingline Exposure at such time.

 

“Swingline Lender” shall mean UBS Loan Finance LLC, in its capacity as a
lender of Swingline Loans.

 

“Swingline Loans” shall mean the swingline loans made to the
Borrower pursuant to Section 2.04.

 

“Syndication Agent” shall have the meaning assigned to such term
in the introductory paragraph of this Agreement.

 

“Tax Sharing Agreement” shall mean the Tax Sharing Agreement,
dated February 11, 2005 by and between Holdings and PQ Corporation, as
successor in interest to the Borrower.

 

“Taxes” shall mean any and all present or future taxes, levies,
imposts, duties (including stamp duties), deductions, charges (including ad
valorem charges) or withholdings imposed by any Governmental Authority
and any and all interest and penalties related thereto.

 

“Term Borrowing” shall mean a Borrowing comprised of Term Loans.

 

“Term Facility” shall mean the Term Loan Commitments and the
Term Loans made hereunder.

 

“Term Facility Maturity Date” shall mean February 11, 2012.

 

“Term Loan Commitment” shall mean with respect to each Lender,
the commitment of such Lender to make Term Loans as set forth in Section 2.01.
The aggregate amount of the Term Loan Commitments on the Closing Date is $335
million.

 

32

 

“Term Loan Installment Date” shall have the meaning assigned to
such term in Section 2.10(a).

 

“Term Loans” shall mean the term loans made by the Lenders to
the Borrower pursuant to Section 2.01.

 

“Test Period” shall mean, on any date of determination, the
period of four consecutive fiscal quarters of the Borrower then most recently
ended (taken as one accounting period).

 

“Total Senior Leverage Ratio” shall mean, on any date, the ratio
of (a) Consolidated Senior Debt as of such date to (b) EBITDA for the period of
four consecutive fiscal quarters of the Borrower most recently ended as of such
date, all determined on a consolidated basis in accordance with GAAP; provided
that EBITDA shall be determined for the respective Test Period on a Pro Forma
Basis.

 

“Transaction Costs” means fees and expenses payable or otherwise
borne by Holdings, the Borrower and the Subsidiaries in connection with the
Transactions occurring on or about the Closing Date.

 

“Transaction Documents” shall mean the Acquisition Documents,
the Senior Subordinated Note Documents and the Loan Documents.

 

“Transactions” shall mean, collectively, the transactions to
occur pursuant to the Transaction Documents, including (a) the consummation of
the Acquisition; (b) the execution and delivery of the Loan Documents and the
initial borrowings hereunder; (c) the Equity Financing; (d) the issuance of the
Senior Subordinated Notes; and (e) the payment of the Transaction Costs.

 

“Type”, when used in respect of any Loan or Borrowing, shall
refer to the Rate by reference to which interest on such Loan or on the Loans
comprising such Borrowing is determined. For purposes hereof, the term “Rate”
shall include the Adjusted LIBO Rate and the ABR.

 

“U.S. Bankruptcy Code” shall mean Title 11 of the United States
Code, as amended, or any similar federal or state law for the relief of
debtors.

 

“Unrestricted Subsidiary” shall mean any Subsidiary of the
Borrower that is acquired or created after the Closing Date and designated by
the Borrower as an Unrestricted Subsidiary hereunder by written notice to the
Administrative Agent; provided that the Borrower shall only be permitted
to so designate a new Unrestricted Subsidiary after the Closing Date and so
long as (a) no Default or Event of Default exists or would result therefrom and
(b) such Unrestricted Subsidiary shall be capitalized (to the extent
capitalized by the Borrower or any of its Subsidiaries) through Investments as
permitted by, and in compliance with, Section 6.04(j), with any assets owned by
such Unrestricted Subsidiary at the time of the initial designation thereof to
be treated as Investments pursuant to Section 6.04(j); provided that at
the time of the initial Investment by the Borrower or any of its Subsidiaries
in such Subsidiary, the Borrower shall designate such entity as an Unrestricted
Subsidiary in a written notice to the Administrative Agent.  The Borrower may designate any Unrestricted
Subsidiary to be a Subsidiary for purposes of this Agreement (each, a “Subsidiary
Redesignation”); provided that (i) such Unrestricted Subsidiary,
both before and after giving effect to such designation, shall be a Wholly
Owned Subsidiary of the Borrower, (ii) no Default or Event of Default then
exists or would occur as a consequence of any such Subsidiary Redesignation
(including, but not limited to, under Sections 6.01 and 6.02), (iii)
calculations are made by the Borrower of compliance with the Financial Performance
Covenants for the relevant Reference Period, on a Pro Forma Basis as if the
respective Subsidiary Redesignation (as well as all other Subsidiary
Redesignations theretofore consummated after the first day of such Reference
Period) had occurred on the

 

33

 

first day of such Reference Period, and such
calculations shall show that such financial covenants would have been complied
with if the Subsidiary Redesignation had occurred on the first day of such Reference
Period (for this purpose, (A) if the first day of the respective Reference
Period occurs prior to the Closing Date, calculated as if the Financial
Performance Covenants had been applicable from the first day of the Reference
Period and (B) using the covenant levels contained in such Financial
Performance Covenants for the Test Period ending June 30, 2005 in connection
with any Subsidiary Redesignation made prior to June 30, 2005), (iv) based on
good faith projections prepared by the Borrower for the period from the date of
the respective Subsidiary Redesignation to the date that is one year
thereafter, the level of financial performance measured by the Financial
Performance Covenants shall be better than or equal to such level as would be
required to provide that no Default or Event of Default would exist under the
Financial Performance Covenants (using the covenant levels contained in such
Financial Performance Covenants for the Test Period ending June 30, 2005 for
any portion of such period prior to June 30, 2005) through the date that is one
year from the date of the respective Subsidiary Redesignation, (v) all
representations and warranties contained herein and in the other Loan Documents
shall be true and correct in all material respects with the same effect as
though such representations and warranties had been made on and as of the date
of such Subsidiary Redesignation (both before and after giving effect thereto),
unless stated to relate to a specific earlier date, in which case such
representations and warranties shall be true and correct in all material
respects as of such earlier date, (vi) the Borrower shall have delivered to the
Administrative Agent an officer’s certificate executed by a Responsible Officer
of the Borrower, certifying to the best of such officer’s knowledge, compliance
with the requirements of preceding clauses (i) through (v), inclusive, and
containing the calculations required by the preceding clauses (iii) and (iv).

 

“Wholly Owned Subsidiary” of any person shall mean a subsidiary
of such person, all of the Equity Interests of which (other than directors’
qualifying shares or nominee or other similar shares required pursuant to
applicable law) are owned by such person or another Wholly Owned Subsidiary of
such person.

 

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

 

“Working Capital” shall mean, with respect to the Borrower and
the Subsidiaries on a consolidated basis at any date of determination, Current
Assets at such date of determination minus Current Liabilities at such
date of determination; provided that, for purposes of calculating Excess
Cash Flow, increases or decreases in Working Capital shall be calculated
without regard to any changes in Current Assets or Current Liabilities as a
result of (a) any reclassification in accordance with GAAP of assets or
liabilities, as applicable, between current and noncurrent, (b) the effects of
purchase accounting or (c) the effect of fluctuations in the amount of accrued
or contingent obligations under Swap Agreements.

 

SECTION 1.02.  Terms Generally.  The definitions set forth or referred to in
Section 1.01 shall apply equally to both the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation.” All references herein to Articles, Sections, Exhibits and
Schedules shall be deemed references to Articles and Sections of, and Exhibits and Schedules to, this Agreement
unless the context shall otherwise require. Except as otherwise expressly
provided herein, any reference in this Agreement to any Loan Document shall
mean such document as amended, restated, supplemented or otherwise modified
from time to time. Except as otherwise expressly provided herein, all terms of
an accounting or financial nature shall be construed in accordance with GAAP,
as in effect from time to time; provided that, if the Borrower notifies
the Administrative Agent that the Borrower requests an amendment to any
provision

 

34

 

hereof to eliminate the effect of any change
occurring after the Closing Date in GAAP or in the application thereof on the
operation of such provision (or if the Administrative Agent notifies the
Borrower that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have
been withdrawn or such provision amended in accordance herewith.

 

SECTION 1.03.  Effectuation of Transfers.  Each of the representations and warranties of
Holdings and the Borrower contained in this Agreement (and all corresponding
definitions) are made after giving effect to the Transactions, unless the
context otherwise requires.

 

ARTICLE II

 

The Credits

 

SECTION 2.01.  Commitments.  Subject to the terms and conditions set forth
herein:

 

(a)   each Lender agrees to make
Term Loans to the Borrower on the Closing Date in a principal amount not to
exceed its Term Loan Commitment; and

 

(b)   each Lender agrees to make
Revolving Facility Loans to the Borrower from time to time during the
Availability Period in an aggregate principal amount that will not result in
(i) such Lender’s Revolving Facility Credit Exposure exceeding such Lender’s
Revolving Facility Commitment or (ii) the Revolving Facility Credit Exposure
exceeding the total Revolving Facility Commitments; provided that the
aggregate principal amount of Revolving Facility Loans made on the Closing Date
shall not exceed $10 million. Within the foregoing limits and subject to the
terms and conditions set forth herein, the Borrower may borrow, prepay and
reborrow Revolving Facility Loans.

 

SECTION 2.02.  Loans and Borrowings.  (a)   Each Loan shall be made as part of a
Borrowing consisting of Loans under the same Facility and of the same Type made
by the Lenders ratably in accordance with their respective Commitments under
the applicable Facility (or, in the case of Swingline Loans, in accordance with
their respective Swingline Commitments); provided, however, that
Revolving Facility Loans shall be made by the Revolving Facility Lenders
ratably in accordance with their respective Revolving Facility Percentages on
the date such Loans are made hereunder. The failure of any Lender to make any Loan required to
be made by it shall not relieve any other Lender of its obligations hereunder; provided
that the Commitments of the Lenders are several and no Lender shall be
responsible for any other Lender’s failure
to make Loans as required.

 

(b)   Subject to Section 2.14,
each Borrowing (other than a Swingline Borrowing) shall be comprised entirely
of ABR Loans or Eurocurrency Loans as the Borrower may request in accordance
herewith.  Each Swingline Borrowing shall
be an ABR Borrowing. Each Lender at its option may make any ABR Loan or
Eurocurrency Loan by causing any domestic or foreign branch or Affiliate of
such Lender to make such Loan; provided that any exercise of such option
shall not affect the obligation of the Borrower to repay such Loan in
accordance with the terms of this Agreement and such Lender shall not be
entitled to any amounts payable under Section 2.15 or 2.17 solely in respect of
increased costs resulting from such exercise and existing at the time of such
exercise.

 

(c)   At the commencement of each
Interest Period for any Eurocurrency Revolving Borrowing, such Borrowing shall
be in an aggregate amount that is an integral multiple of the Borrowing
Multiple and not less than the Borrowing Minimum. At the time that each ABR
Revolving Borrowing is

 

35

 

made, such Borrowing
shall be in an aggregate amount that is an integral multiple of the Borrowing
Multiple and not less than the Borrowing Minimum; provided that an ABR
Revolving Borrowing may be in an aggregate amount that is equal to the entire
unused balance of the Revolving Facility Commitments or that is required to
finance the reimbursement of an L/C Disbursement as contemplated by Section
2.05(e). Each Swingline Borrowing shall be in an amount that is an integral
multiple of the Borrowing Multiple and not less than the Borrowing Minimum.
Borrowings of more than one Type and under more than one Facility may be
outstanding at the same time; provided that there shall not at any time
be more than a total of (i) 5 Eurocurrency Borrowings outstanding under the
Term Facility and (ii) 10 Eurocurrency Borrowings outstanding under the
Revolving Facility.

 

(d)   Notwithstanding any other
provision of this Agreement, no Borrower shall be entitled to request, or to
elect to convert or continue, any Borrowing if the Interest Period requested
with respect thereto would end after the Revolving Facility Maturity Date or
the Term Facility Maturity Date, as applicable.

 

SECTION 2.03.  Requests for Borrowings.  To request a Revolving Borrowing and/or a
Term Borrowing, the Borrower shall notify the Administrative Agent of such
request by telephone (a) in the case of a Eurocurrency Borrowing, not later
than 11:00 a.m., Local Time, three Business Days before the date of the
proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 12:00
noon, Local Time, one Business Day before the date of the proposed Borrowing; provided
that any such notice of an ABR Revolving Borrowing to finance the reimbursement
of an L/C Disbursement as contemplated by Section 2.05(e) may be given not
later than 10:00 a.m., Local Time, on the date of the proposed Borrowing. Each
such telephonic Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by
the Borrower. Each such telephonic and written Borrowing Request shall specify
the following information in compliance with Section 2.02:

 

(i)            the aggregate
amount of the requested Borrowing;

 

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

 

(iii)          whether such
Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing;

 

(iv)          in the case of a
Eurocurrency Borrowing, the initial Interest Period to be applicable thereto,
which shall be a period contemplated by the definition of the term “Interest
Period”; and

 

(v)           the location and
number of the Borrower’s account to which funds are to be disbursed.

 

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

 

SECTION 2.04.  Swingline Loans.  (a)   Subject to the terms and conditions set forth
herein, the Swingline Lender agrees to make Swingline Loans to the Borrower
from time to time during the Availability Period, in an aggregate principal
amount at any time outstanding that will not result in

 

36

 

(i) the aggregate principal amount of outstanding Swingline Loans
exceeding the Swingline Commitment or (ii) the Revolving Facility Credit
Exposure exceeding the total Revolving Facility Commitments; provided that the
Swingline Lender shall not be required to make a Swingline Loan to refinance an
outstanding Swingline Borrowing. Within the foregoing limits and subject to the
terms and conditions set forth herein, the Borrower may borrow, prepay and
reborrow Swingline Loans.

 

(b)   To request a Swingline
Borrowing, the Borrower shall notify the Administrative Agent and the Swingline
Lender of such request by telephone (confirmed by a Swingline Borrowing Request
by telecopy), not later than 11:00 a.m., Local Time, on the day of a proposed
Swingline Borrowing. Each such notice and Swingline Borrowing Request shall be
irrevocable and shall specify (i) the requested date (which shall be a Business
Day) and (ii) the amount of the requested Swingline Borrowing. The Swingline
Lender shall consult with the Administrative Agent as to whether the making of
the Swingline Loan is in accordance with the terms of this Agreement prior to
the Swingline Lender funding such Swingline Loan. The Swingline Lender shall
make each Swingline Loan in accordance with Section 2.02(a) on the proposed
date thereof by wire transfer of immediately available funds by 3:00 p.m.,
Local Time, to the account of the Borrower (or, in the case of a Swingline
Borrowing made to finance the reimbursement of an L/C Disbursement as provided
in Section 2.05(e), by remittance to the applicable Issuing Bank).

 

(c)   The Swingline Lender may by written notice given to the
Administrative Agent not later than 10:00 a.m., Local Time, on any Business Day
require the Revolving Facility Lenders to acquire participations on such
Business Day in all or a portion of the outstanding Swingline Loans made by it.
Such notice shall specify the aggregate amount of such Swingline Loans in which
the Revolving Facility Lenders will participate. Promptly upon receipt of such
notice, the Administrative Agent will give notice thereof to each such Lender,
specifying in such notice such Lender’s Revolving Facility Lender’s Revolving
Facility Percentage of such Swingline Loan or Loans. Each Revolving Facility
Lender hereby absolutely and unconditionally agrees, upon receipt of notice as
provided above, to pay to the Administrative Agent for the account of the
Swingline Lender, such Revolving Facility Lender’s Revolving Facility
Percentage of such Swingline Loan or Loans. Each Revolving Facility Lender
acknowledges and agrees that its respective obligation to acquire
participations in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance
whatsoever, including the occurrence and continuance of a Default or reduction
or termination of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever. Each
Revolving Facility Lender shall comply with its obligation under this paragraph
by wire transfer of immediately available funds, in the same manner as provided
in Section 2.06 with respect to Loans made by such Revolving Facility Lender
(and Section 2.06 shall apply, mutatis mutandis, to the payment
obligations of the Lenders), and the Administrative Agent shall promptly pay to
the Swingline Lender the amounts so received by it from the Revolving Facility
Lenders. The Administrative Agent shall notify the Borrower of any
participations in any Swingline Loan acquired pursuant to this paragraph (c),
and thereafter payments in respect of such Swingline Loan shall be made to the
Administrative Agent and not to the Swingline Lender. Any amounts received by
the Swingline Lender from the Borrower (or other party on behalf of such
Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender
of the proceeds of a sale of participations therein shall be promptly remitted
to the Administrative Agent; any such amounts received by the Administrative
Agent shall be promptly remitted by the Administrative Agent to the Revolving
Facility Lenders that shall have made their payments pursuant to this paragraph
and to the Swingline Lender, as their interests may appear; provided
that any such payment so remitted shall be repaid to the Swingline Lender or to
the Administrative Agent, as applicable, if and to the extent such payment is
required to be refunded to the applicable Borrower for any reason. The purchase
of participations in a Swingline Loan pursuant to this paragraph shall not
relieve the Borrower of any default in the payment thereof.

 

37

 

SECTION 2.05.  Letters of Credit.  (a)   General.   Each Existing Letter of Credit is deemed to
be a letter of credit issued hereunder for all purposes of this Agreement and
the other Loan Documents.  In addition,
subject to the terms and conditions set forth herein, the Borrower may request
the issuance of Letters of Credit for its own account in a form reasonably
acceptable to the applicable Issuing Bank, at any time and from time to time
during the Availability Period and prior to the date that is five Business Days
prior to the Revolving Facility Maturity Date. In the event of any
inconsistency between the terms and conditions of this Agreement and the terms
and conditions of any form of letter of credit application or other agreement
submitted by the Borrower to, or entered into by the Borrower with, an Issuing
Bank relating to any Letter of Credit, the terms and conditions of this
Agreement shall control.

 

(b)   Notice of Issuance, Amendment, Renewal, Extension: Certain
Conditions. To
request the issuance of a Letter of Credit (or the amendment, renewal (other than
an automatic renewal in accordance with paragraph (c) of this Section) or
extension of an outstanding Letter of Credit), the Borrower shall hand deliver
or telecopy (or transmit by electronic communication, if arrangements for doing
so have been approved by the applicable Issuing Bank) to the applicable Issuing
Bank and the Administrative Agent (three Business Days in advance of the
requested date of issuance, amendment, renewal or extension) a notice
requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the date of issuance,
amendment, renewal or extension (which shall be a Business Day), the date on
which such Letter of Credit is to expire (which shall comply with paragraph (c)
of this Section), the amount of such Letter of Credit, the name and address of
the beneficiary thereof and such other information as shall be necessary to
issue, amend, renew or extend such Letter of Credit. If requested by the
applicable Issuing Bank, the Borrower also shall submit a letter of credit
application on such Issuing Bank’s standard form in connection with any request
for a Letter of Credit. A Letter of Credit shall be issued,
amended, renewed or extended only if (and upon issuance, amendment, renewal or
extension of each Letter of Credit the Borrower shall be deemed to represent
and warrant that), after giving effect to such issuance, amendment, renewal or
extension (i) the Revolving L/C Exposure shall not exceed $25 million and (ii) the Revolving
Facility Credit Exposure shall not exceed the total Revolving Facility
Commitments.

 

(c)   Expiration Date. Each
Letter of Credit shall expire at or prior to the close of business on the
earlier of (i) the date one year after the date of the issuance of such Letter
of Credit (or, in the case of any renewal or extension thereof, one year after
such renewal or extension) and (ii) the date that is five Business Days prior
to the Revolving Facility Maturity Date; provided that any Letter of
Credit with a one-year tenor may provide for the automatic renewal thereof for
additional one-year periods (which, in no event, shall extend beyond the date
referred to in clause (ii) of this paragraph (c) unless otherwise
agreed by the Issuing Bank and the Administrative Agent).

 

(d)   Participations. By
the issuance of a Letter of Credit (or an amendment to a Letter of Credit
increasing the amount thereof) and without any further action on the part of
the applicable Issuing Bank or the Revolving Facility Lenders, such Issuing
Bank hereby grants to each Revolving Facility Lender, and each Revolving
Facility Lender hereby acquires from such Issuing Bank, a participation in such
Letter of Credit equal to such Revolving Facility Lender’s Revolving Facility
Percentage of the aggregate amount available to be drawn under such Letter of
Credit. In consideration and in furtherance of the foregoing, each Revolving
Facility Lender hereby absolutely and unconditionally agrees to pay to the
Administrative Agent, for the account of the applicable Issuing Bank, such
Revolving Facility Lender’s Revolving Facility Percentage of each L/C
Disbursement made by such Issuing Bank and not reimbursed by the Borrower on
the date due as provided in paragraph (e) of this Section, or of any reimbursement
payment required to be refunded to the Borrower for any reason. Each Revolving
Facility Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is
absolute and unconditional and shall not be affected by any circumstance
whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and

 

38

 

continuance of a
Default or reduction or termination of the Commitments, and that each such
payment shall be made without any offset, abatement, withholding or reduction
whatsoever.

 

(e)   Reimbursement. If the applicable Issuing Bank shall make any L/C
Disbursement in respect of a Letter of Credit, the Borrower shall reimburse
such L/C Disbursement by paying to the Administrative Agent an amount equal to
such L/C Disbursement not later than 2:00 p.m., Local Time, on (i) the Business
Day that the Borrower receives notice under paragraph (g) of this Section of
such L/C Disbursement, if such notice is received on such day prior to 12:00
noon, Local Time, or (ii) if clause (i) does not apply, the Business Day
immediately following the date the Borrower receives such notice, provided
that the Borrower may, subject to the conditions to borrowing set forth herein,
request in accordance with Section 2.03 or 2.04 that such payment be financed
with an ABR Revolving Borrowing or a Swingline Borrowing, as applicable, in an
equivalent amount and, to the extent so financed, the Borrower’s obligation to
make such payment shall be discharged and replaced by the resulting ABR
Revolving Borrowing or Swingline Borrowing. If the Borrower fails to reimburse
any L/C Disbursement when due, then the Administrative Agent shall promptly
notify the applicable Issuing Bank and each other Revolving Facility Lender of
the applicable L/C Disbursement, the payment then due from the Borrower in
respect thereof and, in the case of a Revolving Facility Lender, such Lender’s
Revolving Facility Percentage thereof. Promptly following receipt of such
notice, each Revolving Facility Lender shall pay to the Administrative Agent
its Revolving Facility Percentage of the payment then due from the Borrower in
the same manner as provided in Section 2.06 with respect to Loans made by such
Lender (and Section 2.06 shall apply, mutatis  mutandis, to the
payment obligations of the Revolving Facility Lenders), and the Administrative
Agent shall promptly pay to the applicable Issuing Bank the amounts so received
by it from the Revolving Facility Lenders. Promptly following receipt by
the Administrative Agent of any payment from the Borrower pursuant to this
paragraph, the Administrative Agent shall distribute such payment to the
applicable Issuing Bank or, to the extent that Revolving Facility Lenders have
made payments pursuant to this paragraph to reimburse such Issuing Bank, then
to such Lenders and such Issuing Bank as their interests may appear. Any
payment made by a Revolving Facility Lender pursuant to this paragraph to
reimburse an Issuing Bank for any L/C Disbursement (other than the funding of
an ABR Revolving Loan or a Swingline Borrowing as contemplated above) shall not
constitute a Loan and shall not relieve the Borrower of its obligation to
reimburse such L/C Disbursement.

 

(f)    Obligations Absolute.
The obligation of the Borrower to reimburse L/C Disbursements as provided in
paragraph (e) of this Section 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 and irrespective of (i) any lack of
validity or enforceability of any Letter of Credit or this Agreement, or any
term or provision therein, (ii) any draft or other document presented under a
Letter of Credit proving to be forged, fraudulent or invalid in any respect or
any statement therein being untrue or inaccurate in any respect, (iii) payment
by the applicable Issuing Bank 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 or (iv) any other event or circumstance whatsoever, whether or not
similar to any of the foregoing, that might, but for the provisions of this
Section, constitute a legal or equitable discharge of, or provide a right of
setoff against, the Borrower’s obligations hereunder. Neither the
Administrative Agent, the Lenders nor any Issuing Bank, nor any of their
Related Parties, shall have any liability or responsibility by reason of or in
connection with the issuance or transfer of any Letter of Credit or any payment
or failure to make any payment thereunder (irrespective of any of the
circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of
such Issuing Bank, or any of the circumstances referred to in clauses (i), (ii)
or (iii) of the first sentence; provided that the foregoing shall not be

 

39

 

construed to excuse
the applicable Issuing Bank from liability to the Borrower to the extent of any
direct damages (as opposed to consequential damages, claims in respect of which
are hereby waived by the Borrower to the extent permitted by applicable law)
suffered by the Borrower that are determined by a court of competent
jurisdiction to have been caused by (i) such Issuing Bank’s failure to exercise
care when determining whether drafts and other documents presented under a
Letter of Credit comply with the terms thereof or (ii) such Issuing Bank’s
refusal to issue a Letter of Credit in accordance with the terms of this
Agreement. The parties hereto expressly agree that, in the absence of gross
negligence or willful misconduct on the part of the applicable Issuing Bank, such
Issuing Bank shall be deemed to have exercised care in each such determination
and each refusal to issue a Letter of Credit. In furtherance of the foregoing
and without limiting the generality thereof, the parties agree that, with
respect to documents presented which appear on their face to be in substantial
compliance with the terms of a Letter of Credit, the applicable Issuing Bank
may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit.

 

(g)   Disbursement Procedures. The applicable Issuing Bank shall, promptly following its
receipt thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit. Such Issuing Bank shall promptly notify the
Administrative Agent and the Borrower by telephone (confirmed by telecopy) of
such demand for payment and whether such Issuing Bank has made
or will make a L/C Disbursement thereunder; provided that any failure to
give or delay in giving such notice shall not relieve the Borrower of its
obligation to reimburse such Issuing Bank and the Revolving Facility Lenders
with respect to any such L/C Disbursement.

 

(h)   Interim Interest. If
an Issuing Bank shall make any L/C Disbursement, then, unless the Borrower
shall reimburse such L/C Disbursement in full on the date such L/C Disbursement
is made, the unpaid amount thereof shall bear interest, for each day from and
including the date such L/C Disbursement is made to but excluding the date that
the Borrower reimburses such L/C Disbursement, at the rate per annum then applicable
to ABR Revolving Loans; provided that, if such L/C Disbursement is not
reimbursed by the Borrower when due pursuant to paragraph (e) of this Section,
then Section 2.13(c) shall apply. Interest accrued pursuant to this paragraph
shall be for the account of the applicable Issuing Bank, except that interest
accrued on and after the date of payment by any Revolving Facility Lender
pursuant to paragraph (e) of this Section to reimburse such Issuing Bank shall
be for the account of such Revolving Facility Lender to the extent of such
payment.

 

(i)    Replacement of an
Issuing Bank. An Issuing Bank may be replaced at any time by written
agreement among the Borrower, the Administrative Agent, the replaced Issuing
Bank and the successor Issuing Bank. The Administrative Agent shall notify the
Lenders of any such replacement of an Issuing Bank. At the time any such
replacement shall become effective, the Borrower shall pay all unpaid fees
accrued for the account of the replaced Issuing Bank pursuant to Section 2.12.
From and after the effective date of any such replacement, (i) the successor
Issuing Bank shall have all the rights and obligations of the replaced Issuing
Bank under this Agreement with respect to Letters of Credit to be issued
thereafter and (ii) references herein to the term “Issuing Bank” shall be
deemed to refer to such successor or to any previous Issuing Bank, or to such
successor and all previous Issuing Banks, as the context shall require. After
the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall
remain a party hereto and shall continue to have all the rights and obligations
of such Issuing Bank under this Agreement with respect to Letters of Credit
issued by it prior to such replacement but shall not be required to issue additional
Letters of Credit.

 

(j)    Cash Collateralization. If any Event of Default shall occur and be continuing, (i)
in the case of an Event of Default described in Section 7.01(h) or (i), on the
Business Day or (ii) in the case

 

40

 

of any other Event
of Default (subject to Section 7.01), on the third Business Day, in each case,
following the date on which the Borrower receives notice from the
Administrative Agent (or, if the maturity of the Loans has been accelerated,
Revolving Facility Lenders with Revolving L/C Exposure representing greater
than 50% of the total Revolving L/C Exposure) demanding the deposit of cash
collateral pursuant to this paragraph, the Borrower shall deposit in an account
with the Administrative Agent, in the name of the Administrative Agent and for
the benefit of the Lenders, an amount in cash equal to the Revolving L/C
Exposure as of such date plus any accrued and unpaid interest thereon; provided
that upon the occurrence of any Event of Default with respect to the Borrower
described in clause (h) or (i) of Section 7.01, the obligation to deposit such
cash collateral shall become effective immediately, and such deposit shall
become immediately due and payable, without demand or other notice of any
kind.  Each such deposit pursuant to this
paragraph shall be held by the Administrative Agent as collateral for the
payment and performance of the obligations of the Borrower under this
Agreement. The Administrative Agent shall have exclusive dominion and control,
including the exclusive right of withdrawal, over such account. Other than any
interest earned on the investment of such deposits, which investments shall be
made at the option and sole discretion of (i) for so long as an Event of Default
shall be continuing, the Administrative Agent and (ii) at any other time, the
Borrower, in each case, in Permitted Investments and at the risk and expense of
the Borrower, such deposits shall not bear interest. Interest or
profits, if any, on such investments shall accumulate in such account. Moneys
in such account shall be applied by the Administrative Agent to reimburse each
Issuing Bank for L/C Disbursements for which such Issuing Bank has not been
reimbursed and, to the extent not so applied, shall be held for the
satisfaction of the reimbursement obligations of the Borrower for the Revolving
L/C Exposure at such time or, if the maturity of the Loans has been accelerated
(but subject to the consent of Revolving Facility Lenders with Revolving L/C Exposure
representing greater than 50% of the total Revolving L/C Exposure), be applied
to satisfy other obligations of the Borrower under this Agreement. If the
Borrower is required to provide an amount of cash collateral hereunder as a
result of the occurrence of an Event of Default, such amount (to the extent not
applied as aforesaid) shall be returned to the Borrower within three Business
Days after all Events of Default have been cured or waived.

 

(k)   Additional Issuing Banks.
From time to time, the Borrower may by notice to the Administrative Agent
designate up to three Lenders (in addition to UBS AG, Stamford Branch) each of
which agrees (in its sole discretion) to act in such capacity and is reasonably
satisfactory to the Administrative Agent as an Issuing Bank. Each such
additional Issuing Bank shall execute a counterpart of this Agreement upon the
approval of the Administrative Agent (which approval shall not be unreasonably
withheld) and shall thereafter be an Issuing Bank hereunder for all purposes.

 

(l)    Reporting. Unless
otherwise requested by the Administrative Agent, each Issuing Bank shall (i)
provide to the Administrative Agent copies of any notice received from the
Borrower pursuant to Section 2.05(b) no later than the next Business Day after
receipt thereof and (ii) report in writing to the Administrative Agent (A) on
or prior to each Business Day on which such Issuing Bank expects to issue,
amend, renew or extend any Letter of Credit, the date of such issuance,
amendment, renewal or extension, and the aggregate face amount of the Letters
of Credit to be issued, amended, renewed or extended by it and outstanding
after giving effect to such issuance, amendment, renewal or extension occurred
(and whether the amount thereof changed), and the Issuing Bank shall be
permitted to issue, amend, renew or extend such Letter of Credit if the
Administrative Agent shall not have advised the Issuing Bank that such
issuance, amendment renewal or extension would not be in conformity with the
requirements of this Agreement, (B) on each Business Day on which such Issuing
Bank makes any L/C Disbursement, the date of such L/C Disbursement and the
amount of such L/C Disbursement and (C) on any other Business Day, such other
information as the Administrative Agent shall reasonably request, including but
not limited to prompt verification of such information as may be requested by
the Administrative Agent.

 

41

 

SECTION 2.06.  Funding of Borrowings.  (a)   Each Lender shall make each Loan to be made
by it hereunder on the proposed date thereof by wire transfer of immediately
available funds by 12:00 noon, Local Time, to the account of the Administrative
Agent most recently designated by it for such purpose by notice to the Lenders;
provided that Swingline Loans shall be made as provided in Section 2.04.
The Administrative Agent will make such Loans available to the Borrower by
promptly crediting the amounts so received, in like funds, to an account of the
Borrower maintained with the Administrative Agent in New York City; provided
that ABR Revolving Loans and Swingline Borrowings made to finance the
reimbursement of a L/C Disbursement and reimbursements as provided in Section
2.05(e) shall be remitted by the Administrative Agent to the applicable Issuing
Bank.

 

(b)   Unless the Administrative
Agent shall have received notice from a Lender prior to the proposed date of
any Borrowing that such Lender will not make available to the Administrative
Agent such Lender’s share of such Borrowing, the Administrative Agent may
assume that such Lender has made such share available on such date in
accordance with paragraph (a) of this Section and may, in reliance upon such
assumption, make available to the Borrower a corresponding amount. In such
event, if a Lender has not in fact made its share of the applicable Borrowing
available to the Administrative Agent, then the applicable Lender and the
Borrower severally agree to pay to the Administrative Agent forthwith on demand
(without duplication) such corresponding amount with interest thereon, for each
day from and including the date such amount
is made available to the Borrower to but excluding the date of payment
to the Administrative Agent, at (i) in the case of such Lender, the Federal Funds
Effective Rate and a rate determined by the Administrative Agent in accordance
with banking industry rules on interbank compensation or (ii) in the case of
the Borrower, the interest rate applicable to ABR Loans. If such Lender pays
such amount to the Administrative Agent, then such amount shall constitute such
Lender’s Loan included in such Borrowing.

 

SECTION 2.07.  Interest Elections.  (a)   Each Borrowing initially shall be of the Type
specified in the applicable Borrowing Request and, in the case of a
Eurocurrency Borrowing, shall have an initial Interest Period as specified in
such Borrowing Request. Thereafter, the Borrower may elect to convert such
Borrowing to a different Type or to continue such Borrowing and, in the case of
a Eurocurrency Borrowing, may elect Interest Periods therefor, all as provided
in this Section. The Borrower may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion
shall be allocated ratably among the Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. This Section shall not apply to Swingline Borrowings, which
may not be converted or continued.

 

(b)   To make an election pursuant
to this Section, the Borrower shall notify the Administrative Agent of such
election by telephone by the time that a Borrowing Request would be required
under Section 2.03 if such Borrower were requesting a Borrowing of the Type
resulting from such election to be made on the effective date of such election.
Each such telephonic Interest Election Request shall be irrevocable and shall
be confirmed promptly (but in any event on the same Business Day) by hand
delivery or telecopy to the Administrative Agent of a written Interest Election
Request in a form approved by the Administrative Agent and signed by the
Borrower.

 

(c)   Each telephonic and written
Interest Election Request shall specify the following information in compliance
with Section 2.02:

 

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

 

42

 

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

 

(iii)          whether the
resulting Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing; and

 

(iv)          if the resulting
Borrowing is a Eurocurrency Borrowing, the Interest Period to be applicable
thereto after giving effect to such election, which shall be a period
contemplated by clause (a) of the definition of the term “Interest Period.”

 

If any such Interest Election Request requests a Eurocurrency Borrowing
but does not specify an Interest Period, then the applicable Borrower shall be
deemed to have selected an Interest Period of one month’s duration.

 

(d)   Promptly following receipt
of an Interest Election Request, the Administrative Agent shall advise each
Lender to which such Interest Election Request relates of the details thereof
and of such Lender’s portion of each resulting Borrowing.

 

(e)   If the Borrower fails to
deliver a timely Interest Election Request with respect to a Eurocurrency
Borrowing prior to the end of the Interest Period applicable thereto, then,
unless such Borrowing is repaid as provided herein, at the end of such Interest
Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding
any contrary provision hereof, if an Event of Default has occurred and is
continuing and the Administrative Agent, at the written request (including a
request through electronic means) of the Required Lenders, so notifies the
Borrower, then, so long as an Event of Default is continuing (i) no outstanding
Borrowing may be converted to or continued as a Eurocurrency Borrowing and (ii)
unless repaid, each Eurocurrency Borrowing shall be converted to an ABR
Borrowing at the end of the Interest Period applicable thereto.

 

SECTION 2.08.  Termination and Reduction of Commitments.  (a)   Unless previously terminated, the Revolving Facility
Commitments shall terminate on the Revolving Facility Maturity Date. The
parties hereto acknowledge that the Term Loan Commitments will terminate at 5
p.m., Local Time, on the Closing Date.

 

(b)   The Borrower may at any time
terminate, or from time to time reduce, the Commitments under either Facility; provided
that (i) each reduction of the Commitments under either Facility shall be in an
amount that is an integral multiple of $1.0 million and not less than $5.0
million (or, if less, the remaining amount of the Revolving Facility
Commitments) and (ii) the Borrower shall not terminate or reduce the Revolving
Facility Commitments if, after giving effect to any concurrent prepayment of
the Revolving Facility Loans in accordance with Section 2.11, the Revolving
Facility Credit Exposure would exceed the total Revolving Facility Commitments.

 

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

 

43

 

Facility shall be
made ratably among the Lenders in accordance with their respective Commitments
under such Facility.

 

SECTION 2.09.  Repayment of Loans; Evidence of Debt.  (a)   The Borrower hereby unconditionally promises
to pay (i) to the Administrative Agent for the account of each Revolving
Facility Lender the then unpaid principal amount of each Revolving Facility
Loan to the Borrower on the Revolving Facility Maturity Date, (ii) to the
Administrative Agent for the account of each Lender the then unpaid principal
amount of each Term Loan of such Lender as provided in Section 2.10 and (iii)
to the Swingline Lender the then unpaid principal amount of each Swingline Loan
on the earlier of the Revolving Facility Maturity Date and the first date after
such Swingline Loan is made that is the 15th or last day of a calendar month
and is at least five Business Days after such Swingline Loan is made; provided
that on each date that a Revolving Facility Borrowing is made by the Borrower,
the Borrower shall repay all Swingline Loans then outstanding.  Once prepaid or repaid, Term Loans may not be
reborrowed.

 

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

 

(c)   The Administrative Agent
shall maintain accounts in which it shall record (i) the amount of each Loan
made hereunder, the Facility and Type thereof and the Interest Period (if any)
applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender hereunder
and (iii) any amount received by the Administrative Agent hereunder for the
account of the Lenders and each Lender’s share thereof.

 

(d)   The entries made in the
accounts maintained pursuant to paragraph (b) or (c) of this Section shall be
prima facie evidence of the existence and amounts of the obligations recorded
therein; provided 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 obligation of the Borrower to repay the Loans in accordance with the
terms of this Agreement.

 

(e)   Any Lender may request that
Loans made by it be evidenced by a promissory note (a “Note”). In such
event, the Borrower shall prepare, execute and deliver to such Lender a
promissory note payable to the order of such Lender (or, if requested by such
Lender, to such Lender and its registered assigns) and in a form approved by
the Administrative Agent. Thereafter, the Loans evidenced by such promissory
note and interest thereon shall at all times (including after assignment
pursuant to Section 9.04) be represented by one or more promissory notes in
such form payable to the order of the payee named therein (or, if such
promissory note is a registered note, to such payee and its registered
assigns).

 

SECTION 2.10.  Repayment of Term Loans and Revolving Facility
Loans.  (a)   Subject to the other paragraphs of this
Section, the Borrower shall repay Term Borrowings on each date set forth below
in the aggregate principal amount set forth below opposite such date (each such
date being referred to as a “Term Loan Installment Date”):

 

	
  Date

  	
   

  	
  Amount of Term

  Borrowings to be Repaid

  	
   

  
	
  June 30, 2005

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  September 30,
  2005

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  December 31,
  2005

  	
   

  	
  $

  	
  837,500

  	
   

  

 

44

 

	
  Date

  	
   

  	
  Amount of Term

  Borrowings to be Repaid

  	
   

  
	
  March 31, 2006

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  June 30, 2006

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  September 30,
  2006

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  December 31,
  2006

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  March 31, 2007

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  June 30, 2007

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  September 30,
  2007

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  December 31,
  2007

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  March 31, 2008

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  June 30, 2008

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  September 30,
  2008

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  December 31,
  2008

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  March 31, 2009

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  June 30, 2009

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  September 30,
  2009

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  December 31,
  2009

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  March 31, 2010

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  June 30, 2010

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  September 30,
  2010

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  December 31, 2010

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  March 31, 2011

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  June 30, 2011

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  September 30,
  2011

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  December 31,
  2011

  	
   

  	
  $

  	
  837,500

  	
   

  
	
  Term Facility
  Maturity Date

  	
   

  	
  $

  	
  312,387,500

  	
   

  

 

(b)           To the extent not previously paid,
outstanding Revolving Facility Loans shall be due and payable on the Revolving
Facility Maturity Date.

 

(c)           Prepayment
of the Borrowings from:

 

(i)            all Net Proceeds
and Excess Cash Flow pursuant to Section 2.11(b) or 2.11(c) shall be applied to
the Term Borrowings, with the application thereof, first in direct order
to the unpaid amounts due on the next succeeding eight Term Loan Installment
Dates, and, then on a pro  rata basis (based on the amount
of such amortization payments) to the then remaining scheduled amortization
payments in respect of such Term Borrowings, and

 

(ii)           any optional
prepayments of the Term Loans pursuant to Section 2.11(a) shall be applied to
the remaining installments thereof as directed by the Borrower.

 

(d)           Prior to any repayment of any
Borrowing under either Facility hereunder, the Borrower shall select the
Borrowing or Borrowings under the applicable Facility to be repaid and shall
notify the Administrative Agent by telephone (confirmed by telecopy) of such
selection not later than 2:00 p.m., Local Time, (i) in the case of an ABR
Borrowing, one Business Day before the scheduled date of such repayment and
(ii) in the case of a Eurocurrency Borrowing, three Business Days before the
scheduled date of such repayment. Each repayment of a Borrowing (x) in the case
of the Revolving Facility, shall be applied to the Revolving Facility
Loans included in the repaid Borrowing such that each Revolving Facility Lender
receives its ratable share of such repayment (based upon the respective

 

45

 

Revolving Facility Credit Exposures of the Revolving
Facility Lenders at the time of such repayment) and (y) in all other cases,
shall be applied ratably to the Loans included in the repaid Borrowing.
Notwithstanding anything to the contrary in the immediately preceding sentence,
prior to any repayment of a Swingline Borrowing hereunder, the Borrower shall
select the Borrowing or Borrowings to be repaid and shall notify the
Administrative Agent by telephone (confirmed by telecopy) of such selection not
later than 1:00 p.m., Local Time, on the scheduled date of such repayment.
Repayments of Borrowings shall be accompanied by accrued interest on the amount
repaid.

 

SECTION 2.11.  Prepayment of Loans.  (a)   The Borrower shall have the right at any time
and from time to time to prepay any Borrowing in whole or in part, without
premium or penalty (but subject to Section 2.16), in an aggregate principal
amount that is an integral multiple of the Borrowing Multiple and not less than
the Borrowing Minimum or, if less, the amount outstanding, subject to prior
notice in accordance with Section 2.10(d).

 

(b)   Holdings and the Borrower
shall apply all Net Proceeds promptly upon receipt thereof to prepay Term
Borrowings in accordance with paragraphs (c) and (d) of Section 2.10.

 

(c)   Not later than 90 days after
the end of each Excess Cash Flow Period, the Borrower shall calculate Excess
Cash Flow for such Excess Cash Flow Period and shall apply an amount equal to
the Required Percentage of such Excess Cash Flow to prepay Term Borrowings in
accordance with paragraphs (c) and (d) of Section 2.10. Not later than the date
on which the Borrower is required to deliver financial statements with respect
to the end of each Excess Cash Flow Period under Section 5.04(a), the Borrower
will deliver to the Administrative Agent a certificate signed by a Financial
Officer of the Borrower setting forth the amount, if any, of Excess Cash Flow
for such fiscal year and the calculation thereof in reasonable detail.

 

SECTION 2.12.  Fees. 
(a)   The Borrower agrees to pay
to each Lender (other than any Defaulting Lender), through the Administrative
Agent, 10 Business Days after the last day of March, June, September and
December in each year, and three Business Days after the date on which the
Revolving Facility Commitments of all the Lenders shall be terminated as
provided herein, a commitment fee (a “Commitment Fee”) on the daily
amount of the Available Unused Commitment of such Lender during the preceding
quarter (or other period commencing with the Closing Date or ending with the
date on which the last of the Commitments of such Lender shall be terminated)
at the Commitment Fee Rate. All Commitment Fees shall be computed on the basis
of the actual number of days elapsed in a year of 360 days. For the purpose of
calculating any Lender’s Commitment Fee, the outstanding Swingline Loans during
the period for which such Lender’s Commitment Fee is calculated shall be deemed
to be zero. The Commitment Fee due to each Lender shall commence to accrue on
the Closing Date and shall cease to accrue on the date on which the last of the
Commitments of such Lender shall be terminated as provided herein.

 

(b)   The Borrower from time to time agrees to pay (i) to each
Revolving Facility Lender (other than any Defaulting Lender), through the
Administrative Agent, 10 Business Days after the last day of March, June,
September and December of each year and three Business Days after the date on which
the Revolving Facility Commitments of all the Lenders shall be terminated as
provided herein, a fee (an “L/C Participation Fee”) on such Lender’s
Revolving Facility Percentage of the daily aggregate Revolving L/C Exposure
(excluding the portion thereof attributable to unreimbursed L/C Disbursements),
during the preceding quarter (or shorter period commencing with the Closing
Date or ending with the Revolving Facility Maturity Date or the date on which
the Revolving Facility Commitments shall be terminated) at the rate per annum
equal to the Applicable Margin for Eurocurrency Revolving Borrowings effective
for each day in such period and (ii) to each Issuing Bank, for its own account,
(x) 10 Business Days after the last day of March, June, September and December
of each year and three

 

46

 

Business Days after the date on
which the Revolving Facility Commitments of all the Lenders shall be terminated
as provided herein, a fronting fee in respect of each Letter of Credit issued
by such Issuing Bank for the period from and including the date of issuance of
such Letter of Credit to and including the termination of such Letter of
Credit, computed at a rate equal to 1/4 of 1% per annum of the daily average
stated amount of such Letter of Credit), plus (y) in connection with the
issuance, amendment or transfer of any such Letter of Credit or any L/C
Disbursement thereunder, such Issuing Bank’s customary documentary and
processing charges (collectively, “Issuing Bank Fees”). All L/C
Participation Fees and Issuing Bank Fees that are payable on a per annum basis
shall be computed on the basis of the actual number of days elapsed in a year
of 360 days.

 

(c)   The Borrower agrees to pay
to the Administrative Agent, for the account of the Administrative Agent, the
agency fees set forth in the Fee Letter, as amended, restated, supplemented or
otherwise modified from time to time, at the times specified therein (the “Administrative
Agent Fees”).

 

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

 

SECTION 2.13.  Interest.  (a)   The Loans comprising each ABR Borrowing
(including each Swingline Loan) shall bear interest at the ABR plus the
Applicable Margin.

 

(b)   The Loans comprising each
Eurocurrency Borrowing shall bear interest at the Adjusted LIBO Rate for the
Interest Period in effect for such Borrowing plus the Applicable Margin.

 

(c)   Notwithstanding the
foregoing, if any principal of or interest on any Loan or any Fees or other
amount payable by the Borrower hereunder is not paid when due, whether at
stated maturity, upon acceleration or otherwise, such overdue amount shall bear
interest, after as well as before judgment, at a rate per annum equal to (i) in
the case of overdue principal of any Loan, 2% plus the rate otherwise
applicable to such Loan as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount, 2% plus the rate applicable to ABR
Loans as provided in paragraph (a) of this Section; provided that this
paragraph (c) shall not apply to any Event of Default that has been waived by
the Lenders pursuant to Section 9.08.

 

(d)   Accrued interest on each Loan shall be payable in arrears
(i) on each Interest Payment Date for such Loan, (ii) in the case of Revolving
Facility Loans, upon termination of the Revolving Facility Commitments and
(iii) in the case of the Term Loans, on the Term Facility Maturity Date; provided
that (i) interest accrued pursuant to paragraph (c) of this Section shall be
payable on demand, (ii) in the event of any repayment or prepayment of
any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of
the Availability Period), accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment and (iii)
in the event of any conversion of any Eurocurrency Loan prior to the end of the
current Interest Period therefor, accrued interest on such Loan shall be
payable on the effective date of such conversion.

 

(e)   All interest hereunder shall
be computed on the basis of a year of 360 days, except that interest computed
by reference to the ABR at times when the ABR is based on the Prime Rate shall
be computed on the basis of a year of 365 days (or 366 days in a leap year),
and in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). The applicable ABR, Adjusted LIBO
Rate or LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

 

47

 

SECTION 2.14.  Alternate Rate of Interest.  If prior to the commencement of any Interest
Period for a Eurocurrency Borrowing:

 

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

 

(b)           the Administrative
Agent is advised by the Required Lenders or the Majority Lenders under the
Revolving Facility that the Adjusted LIBO Rate or the LIBO Rate, as applicable,
for such Interest Period will not adequately and fairly reflect the cost to
such Lenders of making or maintaining their Loans included in such Borrowing
for such Interest Period;

 

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

 

SECTION 2.15.  Increased Costs.  (a)   If any Change in Law shall:

 

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

 

(ii)           impose on any
Lender or Issuing Bank or the London interbank market any other condition
affecting this Agreement or Eurocurrency Loans made by such Lender or any
Letter of Credit or participation therein;

 

and the result of any of the foregoing shall be to increase the cost to
such Lender of making or maintaining any Eurocurrency Loan (or of maintaining
its obligation to make any such Loan) or to increase the cost to such Lender or
Issuing Bank of participating in, issuing or maintaining any Letter of Credit
or to reduce the amount of any sum received or receivable by such Lender or
Issuing Bank hereunder (whether of principal, interest or otherwise), then the
Borrower will pay to such Lender or Issuing Bank, as applicable, such
additional amount or amounts as will compensate such Lender or Issuing Bank, as
applicable, for such additional costs incurred or reduction suffered.

 

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

 

48

 

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

 

(d)   Promptly after any Lender or
any Issuing Bank has determined that it will make a request for increased
compensation pursuant to this Section 2.15, such Lender or Issuing Bank shall
notify the Borrower thereof. Failure or delay on the part of any Lender or
Issuing Bank to demand compensation pursuant to this Section shall not
constitute a waiver of such Lender’s or Issuing Bank’s right to demand such
compensation; provided that the Borrower shall not be required to
compensate a Lender or an Issuing Bank pursuant to this Section for any
increased costs or reductions incurred more than 180 days prior to the date
that such Lender or Issuing Bank, as applicable, notifies the Borrower of the
Change in Law giving rise to such increased costs or reductions and of such
Lender’s or Issuing Bank’s intention to claim compensation therefor; provided,
further, that, if the Change in Law giving rise to such increased costs
or reductions is retroactive, then the 180-day period referred to above shall
be extended to include the period of retroactive effect thereof.

 

SECTION 2.16.  Break Funding Payments.  In the event of (a) the payment of any
principal of any Eurocurrency Loan other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurocurrency Loan
other than on the last day of the Interest Period applicable thereto, (c) the
failure to borrow, convert, continue or prepay any Eurocurrency Loan on the
date specified in any notice delivered pursuant hereto or (d) the assignment of
any Eurocurrency Loan other than on the last day of the Interest Period
applicable thereto as a result of a request by a Borrower pursuant to Section
2.19, then, in any such event, the Borrower shall compensate each Lender for
the loss, cost and expense attributable to such event. In the case of a
Eurocurrency Loan, such loss, cost or expense to any Lender shall be deemed to
be the amount determined by such Lender to be the excess, if any, of (i) the
amount of interest which would have accrued on the principal amount of such
Loan had such event not occurred, at the Adjusted LIBO Rate that would have
been applicable to such Loan, for the period from the date of such event to the
last day of the then current Interest Period therefor (or, in the case of a
failure to borrow, convert or continue a Eurocurrency Loan, for the period that
would have been the Interest Period for such Loan), over (ii) the amount of
interest which would accrue on such principal amount for such period at the
interest rate which such Lender would bid were it to bid, at the commencement
of such period, for deposits in dollars of a comparable amount and period from
other banks in the Eurodollar market. A certificate of any Lender setting forth
any amount or amounts that such Lender is entitled to receive pursuant to this
Section shall be delivered to such Borrower and shall be conclusive absent
manifest error. Such Borrower shall pay such Lender the amount shown as due on
any such certificate within 10 days after receipt thereof.

 

SECTION 2.17.  Taxes. 
(a)   Any and all payments by or
on account of any obligation of any Loan Party hereunder shall be made free and
clear of and without deduction for any Indemnified Taxes or Other Taxes; provided
that if a Loan Party shall be required to deduct any Indemnified Taxes or Other
Taxes from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section) the Administrative Agent,
any Lender or any Issuing Bank, as applicable, receives an amount equal to the
sum it would have received had no such deductions been made, (ii) such Loan
Party shall make such deductions and (iii) such Loan Party shall timely pay the
full amount deducted to the relevant Governmental Authority in accordance with
applicable law.

 

(b)   In addition, the Loan
Parties shall pay any Other Taxes to the relevant Governmental Authority in
accordance with applicable law.

 

49

 

(c)   Each Loan Party shall
indemnify the Administrative Agent, each Lender and each Issuing Bank, within
10 days after written demand therefor, for the full amount of any Indemnified
Taxes or Other Taxes paid by the Administrative Agent, such Lender or such
Issuing Bank, as applicable, on or with respect to any payment by or on account
of any obligation of such Loan Party hereunder (including Indemnified Taxes or
Other Taxes imposed or asserted on or attributable to amounts payable under
this Section) and any reasonable expenses arising therefrom or with respect
thereto. A certificate as to the amount of such payment or liability, prepared
in good faith and delivered to such Loan Party by a Lender or an Issuing Bank,
or by the Administrative Agent on its own behalf, on behalf of another Agent or
on behalf of a Lender or an Issuing Bank, shall be conclusive absent manifest
error.

 

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

 

(e)   Any Lender that is entitled to an exemption from or
reduction of withholding Tax under the law of the jurisdiction in which the
Borrower is located, or any treaty to which such jurisdiction is a party, with
respect to payments under this Agreement shall deliver to the Borrower (with a
copy to the Administrative Agent), to the extent such Lender is legally
entitled to do so, at the time or times prescribed by applicable law, such properly completed and executed
documentation prescribed by applicable law as may reasonably be
requested by the Borrower to permit such payments to be made without such
withholding tax or at a reduced rate; provided that no Lender shall have
any obligation under this paragraph (e) with respect to any withholding Tax
imposed by any jurisdiction other than the United States if in the reasonable
judgment of such Lender such compliance would subject such Lender to any
material unreimbursed cost or expense or would otherwise be prejudicial to such
Lender in any material respect.

 

(f)    Each Foreign Lender shall
deliver to the Borrower and the Administrative Agent (in such number of copies
as shall be reasonably requested by the recipient) on the date on which such
Foreign Lender becomes a Lender under this Agreement (and from time to time
thereafter upon the reasonable request of the Borrower or the Administrative
Agent), whichever of the following is applicable:  (i) duly completed copies of Internal Revenue
Service Form W 8BEN (or any subsequent versions thereof or successors thereto),
claiming eligibility for benefits of an income tax treaty to which the United
States of America is a party, (ii) duly completed copies of Internal Revenue
Service Form W 8ECI (or any subsequent versions thereof or successors thereto),
(iii) in the case of a Foreign Lender claiming the benefits of the exemption
for portfolio interest under section 871(h) or 881(c) of the Code, (x) a
certificate to the effect that such Foreign Lender is not (A) a “bank” within
the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder”
of the Borrower within the meaning of section 871(h)(3) or 881(c)(3)(B) of the
Code, or (C) a “controlled foreign corporation” described in section
881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue
Service Form W 8BEN (or any subsequent versions thereof or successors thereto)
or (iv) any other form prescribed by applicable law as a basis for claiming
exemption from or a reduction in United States federal withholding tax duly
completed together with such supplementary documentation as may be prescribed
by applicable law to permit the Borrower to determine the withholding or
deduction required to be made.  In addition,
in each of the foregoing circumstances, each Foreign Lender shall deliver such
forms promptly upon the obsolescence, expiration, or invalidity of any form
previously delivered by such Foreign Lender. 
Each Foreign Lender shall promptly notify the Borrower at any time it
determines that it is no longer in a position to provide any previously
delivered certificate to the Borrower (or any other form of certification
adopted by the United States of America or other taxing authorities for such
purpose).  In addition, each Lender that
is not a Foreign Lender shall deliver to the Borrower and the Administrative
Agent two

 

50

 

copies of Internal
Revenue Service Form W-9 (or any subsequent versions thereof or successors
thereto) on or before the date such Lender becomes a party and upon the
expiration of any form previously delivered by such Lender.  Notwithstanding any other provision of this
paragraph, a Lender shall not be required to deliver any form pursuant to this
paragraph that such Lender is not legally able to deliver.

 

(g)   If the Administrative Agent
or a Lender receives a refund of any Indemnified Taxes or Other Taxes as to
which it has been indemnified by a Loan Party or with respect to which such
Loan Party has paid additional amounts pursuant to this Section 2.17, it shall
pay over such refund to such Loan Party (but only to the extent of indemnity
payments made, or additional amounts paid, by such Loan Party under this
Section 2.17 with respect to the Taxes or Other Taxes giving rise to such
refund), net of all out-of-pocket expenses of the Administrative Agent or such
Lender (including any Taxes imposed with respect to such refund) as is
determined by the Administrative Agent or Lender in good faith and in its sole
discretion, and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund); provided that such
Loan Party, upon the request of the Administrative Agent or such Lender, agrees
to repay as soon as reasonably practicable the amount paid over to such Loan
Party (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Administrative Agent or such Lender in the event
the Administrative Agent or such Lender is required to repay such refund to
such Governmental Authority. This Section 2.17(g) shall not be construed to
require the Administrative Agent or any Lender to make available its Tax
returns (or any other information relating to its Taxes which it deems
confidential) to the Loan Parties or any other person.

 

SECTION 2.18.  Payments Generally; Pro Rata Treatment;
Sharing of Set-offs.  (a)   Unless otherwise specified, the Borrower
shall make each payment required to be made by it hereunder (whether of
principal, interest, fees or reimbursement of L/C Disbursements, or of amounts
payable under Section 2.15, 2.16, or 2.17, or otherwise) prior to 2:00 p.m.,
Local Time, on the date when due, in immediately available funds, without
condition or deduction for any defense, recoupment, set-off or counterclaim.
Any amounts received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent to the applicable account designated
to the Borrower by the Administrative Agent, except payments to be made
directly to the applicable Issuing Bank or the Swingline Lender as expressly
provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17
and 9.05 shall be made directly to
the persons entitled thereto. The Administrative Agent shall distribute any
such payments received by it for the account of any other person to the
appropriate recipient promptly following receipt thereof. If any payment
hereunder shall be due on a day that is not a Business Day, the date for
payment shall be extended to the next succeeding Business Day, and, in the case
of any payment accruing interest, interest thereon shall be payable for the
period of such extension. All payments hereunder shall be made in Dollars. Any
payment required to be made by the Administrative Agent hereunder shall be
deemed to have been made by the time required if the Administrative Agent
shall, at or before such time, have taken the necessary steps to make such
payment in accordance with the regulations or operating procedures of the
clearing or settlement system used by the Administrative Agent to make such
payment.

 

(b)   If at any time insufficient funds are received by and
available to the Administrative Agent from the Borrower to pay fully all
amounts of principal, unreimbursed L/C Disbursements, interest and fees
then due from the Borrower hereunder, such funds shall be applied (i) first,
towards payment of interest and fees then due from the Borrower hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
interest and fees then due to such parties, and (ii) second, towards
payment of principal and unreimbursed L/C Disbursements then due from such
Borrower hereunder, ratably among the parties entitled thereto in accordance
with the amounts of principal and unreimbursed L/C Disbursements then due to
such parties.

 

51

 

(c)   If any Lender shall, by
exercising any right of set-off or counterclaim or otherwise, obtain payment in
respect of any principal of or interest on any of its Term Loans, Revolving
Facility Loans or participations in L/C Disbursements or Swingline Loans
resulting in such Lender receiving payment of a greater proportion of the
aggregate amount of its Term Loans, Revolving Facility Loans and participations
in L/C Disbursements and Swingline Loans and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater
proportion shall purchase (for cash at face value) participations in the Term
Loans, Revolving Facility Loans and participations in L/C Disbursements and
Swingline Loans of other Lenders to the extent necessary so that the benefit of
all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective Term
Loans, Revolving Facility Loans and participations in L/C Disbursements and
Swingline Loans; provided that (i) if any such participations are
purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price
restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph (c) shall not be construed to apply to any payment
made by the Borrower pursuant to and in accordance with the express terms of
this Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or participations
in L/C Disbursements to any assignee or participant, other than to the Borrower
or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph
(c) shall apply). The Borrower consents to the foregoing and agrees, to the
extent it may effectively do so under applicable law, that any Lender acquiring
a participation pursuant to the foregoing arrangements may exercise against the
Borrower rights of set-off and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of the Borrower in the amount
of such participation.

 

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

 

(e)   If any Lender shall fail to
make any payment required to be made by it pursuant to Section 2.04(c), 2.05(d)
or (e), 2.06(b) or 2.18(d), then the Administrative Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter
received by the Administrative Agent for the account of such Lender to satisfy
such Lender’s obligations under such Sections until all such unsatisfied
obligations are fully paid.

 

SECTION 2.19.  Mitigation Obligations; Replacement of
Lenders.  (a)   If any Lender requests compensation under
Section 2.15, or if the Borrower is required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant
to Section 2.17, then such Lender shall use reasonable efforts to designate a
different Lending Office for funding or booking its Loans hereunder or to
assign its rights and obligations hereunder to another of its offices, branches
or Affiliates, if, in the reasonable judgment of such Lender, such designation
or assignment (i) would eliminate or reduce amounts payable pursuant to Section
2.15 or 2.17, as applicable, in the future and (ii) would not subject such
Lender to any material unreimbursed cost or expense and would not otherwise be

 

52

 

disadvantageous to such Lender in any material respect. The Borrower
hereby agrees to pay all reasonable costs and expenses incurred by any Lender
in connection with any such designation or assignment.

 

(b)   If any Lender requests
compensation under Section 2.15, or if the Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 2.17, or is a Defaulting Lender, then the Borrower
may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section 9.04), all its interests, rights and obligations under this Agreement
to an assignee that shall assume such obligations (which assignee may be
another Lender, if a Lender accepts such assignment); provided that (i)
the Borrower shall have received the prior written consent of the
Administrative Agent, which consent shall not unreasonably be withheld, (ii)
such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and participations in L/C Disbursements and Swingline
Loans, accrued interest thereon, accrued fees and all other amounts payable to
it hereunder, from the assignee (to the extent of such outstanding principal
and accrued interest and fees) or the Borrower (in the case of all other
amounts) and (iii) in the case of any such assignment resulting from a claim
for compensation under Section 2.15 or payments required to be made pursuant to
Section 2.17, such assignment will result in a reduction in such compensation
or payments. Nothing in this Section 2.19 shall be deemed to prejudice any
rights that the Borrower may have against any Lender that is a Defaulting
Lender.

 

(c)   If any Lender (such Lender,
a “Non-Consenting Lender”) has failed to consent to a proposed
amendment, waiver, discharge or termination which pursuant to the terms of
Section 9.08 requires the consent of all of the Lenders affected and with
respect to which the Required Lenders shall have granted their consent, then
the Borrower shall have the right (unless such Non-Consenting Lender grants
such consent) to replace such Non-Consenting Lender by requiring such
Non-Consenting Lender to assign its Loans, and its Commitments hereunder to one
or more assignees reasonably acceptable to the Administrative Agent, provided
that: (a) all Obligations of the Borrower owing to such Non-Consenting Lender
being replaced shall be paid in full to such Non-Consenting Lender concurrently
with such assignment, (b) the replacement Lender shall purchase the foregoing
by paying to such Non-Consenting Lender a price equal to the principal amount
thereof plus accrued and unpaid interest thereon. In connection with any such
assignment the Borrower, Administrative Agent, such Non-Consenting Lender and
the replacement Lender shall otherwise comply with Section 9.04 and (c) the
replacement Lender shall pay the processing and recordation fee referred to in
Section 9.04(b)(ii)(B).

 

SECTION 2.20.  Illegality.  If any Lender reasonably determines that any
change in law has made it unlawful, or that any Governmental Authority has
asserted after the Closing Date that it is unlawful, for any Lender or its applicable Lending Office to make or
maintain any Eurocurrency Loans, then, on notice thereof by such Lender to the
Borrower through the Administrative Agent, any obligations of such Lender to
make or continue Eurocurrency Loans or to convert ABR Borrowings to
Eurocurrency Borrowings shall be suspended until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to
such determination no longer exist. Upon receipt of such notice, the Borrower
shall upon demand from such Lender (with a copy to the Administrative Agent),
either convert all Eurocurrency Borrowings of such Lender to ABR Borrowings,
either on the last day of the Interest Period therefor, if such Lender may
lawfully continue to maintain such Eurocurrency Borrowings to such day, or
immediately, if such Lender may not lawfully continue to maintain such Loans.
Upon any such prepayment or conversion, the Borrower shall also pay accrued
interest on the amount so prepaid or converted.

 

SECTION 2.21.  Incremental Extensions of Credit.  Subject to the terms and conditions set forth
herein, the Borrower may at any time and from time to time, request to add
additional term loans (the “Incremental Extensions of Credit”) in
minimum principal amounts of $25 million, provided that

 

53

 

(a) immediately prior to and after giving effect
to any Incremental Facility Amendment, no Default has occurred or is continuing
or shall result therefrom and the Borrower shall be in compliance with
Sections 6.11 and 6.12 and (b) the Incremental Extensions of Credit
shall rank pari  passu or junior in right of payment and right of
security in respect of the Collateral with the Term Loans.  The Incremental Extensions of Credit
(a) shall be in an aggregate principal amount not exceeding $175 million
and (b) other than amortization, pricing or maturity date, shall have the
same terms as the Term Loans (the “Existing Term Loans”) existing
immediately prior to the effectiveness of an Incremental Facility Amendment
(except as otherwise agreed by the Agents), provided that (i) if
the Applicable Rate (which, for such purposes only, shall be deemed to include
all upfront or similar fees or original issue discount payable to all Lenders
providing such Incremental Extensions of Credit) relating to the Incremental Extensions
of Credit exceeds the Applicable Rate (which, for such purposes only, shall be
deemed to include all upfront or similar fees or original issue discount
payable to all Lenders providing the Existing Term Loans) relating to the
Existing Term Loans by more than 0.50%, the Applicable Margin relating to the
Existing Term Loans shall be adjusted to be equal to the Applicable Margin
(which, for such purposes only, shall be deemed to include all upfront or
similar fees or original issue discount payable to all Lenders providing such
Incremental Extensions of Credit) relating to the applicable Incremental
Extensions of Credit minus 0.50%, (ii) the Incremental Extensions of
Credit shall not have a final maturity date earlier than the Term Loan Maturity
Date and (iii) Incremental Extensions of Credit shall not have a weighted
average life that is shorter than that of the then-remaining weighted average
life of the Existing Term Loans.  Any
additional bank, financial institution, existing Lender or other Person that
elects to extend commitments to provide Incremental Extensions of Credit shall
be reasonably satisfactory to the Borrower and the Administrative Agent (any
such bank, financial institution, existing Lender or other Person being called
an “Additional Lender”) and shall become a Lender under this Agreement,
pursuant to an amendment (an “Incremental Facility Amendment”) to this
Agreement, giving effect to the modifications permitted by this Section 2.21,
and, as appropriate, the other Loan Documents, executed by the Borrower, each
existing Lender agreeing to provide a commitment in respect of the Incremental
Extensions of Credit, if any, each Additional Lender, if any, and the
Administrative Agent.  Commitments in
respect of Incremental Extensions of Credit shall become Commitments under this
Agreement.  An Incremental Facility
Amendment may, without the consent of any other Lenders, effect such amendments
to this Agreement and the other Loan Documents as may be reasonably necessary
or appropriate, in the opinion of the Administrative Agent, to effect the
provisions of this Section.  The
effectiveness of any Incremental Facility Amendment shall be subject to the
satisfaction on the date thereof (each, an “Incremental Facility Closing
Date”) of each of the conditions set forth in Section 4.01 (it being
understood that all references to “the date of such Borrowing” in such
Section 4.01 shall be deemed to refer to the Incremental Facility Closing
Date).  Except as set forth above, the
proceeds of the Incremental Extensions of Credit shall be used for general
corporate purposes including Permitted Business Acquisitions.

 

ARTICLE III

 

Representations
and Warranties

 

Each of Holdings and the Borrower represents and
warrants to each of the Lenders that (it being understood and agreed that the
representations and warranties made on the Closing Date are deemed to be made
concurrently with the Transactions):

 

SECTION
3.01.  Organization; Powers.  Except as set forth on Schedule 3.01,
each of Holdings, the Borrower and each of the Subsidiaries (a) is a limited
partnership, limited liability company or corporation duly organized, validly
existing and in good standing (or, if applicable in a foreign

 

54

 

jurisdiction, enjoys the
equivalent status under the laws of any jurisdiction of organization outside
the United States) under the laws of the jurisdiction of its organization, (b)
has all requisite power and authority to own its property and assets and to
carry on its business as now conducted, (c) is qualified to do business in each
jurisdiction where such qualification is required, except where the failure so
to qualify could not reasonably be expected to have a material adverse effect
on the business, property, operations or condition of the Borrower and its
Subsidiaries, taken as a whole, or the validity or enforceability of any of the
Loan Documents or the rights and remedies of the Administrative Agent and the
Lenders thereunder, and (d) has the power and authority to execute, deliver and
perform its obligations under each of the Loan Documents and each other
agreement or instrument contemplated thereby to which it is or will be a party
and, in the case of the Borrower, to borrow and otherwise obtain credit
hereunder.

 

SECTION
3.02.  Authorization.  The execution, delivery and performance by
Holdings, the Borrower and each of the Subsidiary Loan Parties of each of the
Loan Documents to which it is a party, and the borrowings hereunder and the
transactions forming a part of the Transactions (a) have been duly authorized
by all corporate, stockholder, limited partnership or limited liability company
action required to be obtained by Holdings, the Borrower and such Subsidiary
Loan Parties and (b) will not (i) violate (A) any provision of law, statute,
rule or regulation, or of the certificate or articles of incorporation or other
constitutive documents or by-laws of Holdings, the Borrower or any such
Subsidiary Loan Party, (B) any applicable order of any court or any rule, regulation
or order of any Governmental Authority or (C) any provision of any indenture,
certificate of designation for preferred stock, agreement or other instrument
to which Holdings, the Borrower or any such Subsidiary Loan Party is a party or
by which any of them or any of their property is or may be bound, (ii) be in
conflict with, result in a breach of or constitute (alone or with notice or
lapse of time or both) a default under, give rise to a right of or result in
any cancellation or acceleration of any right or obligation (including any
payment) or to a loss of a material benefit under any such indenture,
certificate of designation for preferred stock, agreement or other instrument,
where any such conflict, violation, breach or default referred to in clause (i)
or (ii) of this Section 3.02, could reasonably be expected to have, individually or in the aggregate, a
material adverse effect on the business, property, operations or condition of
the Borrower and its Subsidiaries, taken as a whole, or the validity or
enforceability of any of the Loan Documents or the rights and remedies of the
Administrative Agent and the Lenders thereunder, or (iii) result in the creation or imposition of any Lien upon or
with respect to any property or assets now owned or hereafter acquired by
Holdings, the Borrower or any such Subsidiary Loan Party, other than the Liens
created by the Loan Documents and Liens permitted by Section 6.02 hereof.

 

SECTION
3.03.  Enforceability.  This Agreement has been duly executed and
delivered by Holdings and the Borrower and constitutes, and each other Loan
Document when executed and delivered by each Loan Party that is party thereto
will constitute, a legal, valid and binding obligation of such Loan Party
enforceable against each such Loan Party in accordance with its terms, subject
to (i) the effects of bankruptcy, insolvency, moratorium, reorganization,
fraudulent conveyance or other similar laws affecting creditors’ rights
generally, (ii) general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law) and (iii)
implied covenants of good faith and fair dealing.

 

SECTION
3.04.  Governmental Approvals.  No action, consent or approval of,
registration or filing with or any other action by any Governmental Authority
is or will be required in connection with the Transactions, except for (a) the
filing of Uniform Commercial Code financing statements, (b) filings with the United States Copyright Office and comparable
offices in foreign jurisdictions and equivalent filings in foreign
jurisdictions, (c) recordation of the Mortgages, (d) such as have been
made or obtained and are in full force and effect, (e) such actions, consents
and approvals the failure to be obtained or made which could not reasonably be
expected to have a material adverse effect on the business, property,
operations or condition of the Borrower and its Subsidiaries, taken as a whole,

 

55

 

or the validity or
enforceability of any of the Loan Documents or the rights and remedies of the
Administrative Agent and the Lenders thereunder and (f) filings or other
actions listed on Schedule 3.04.

 

SECTION 3.05.  Financial Statements.

 

(a)   The
unaudited pro  forma consolidated balance sheet as of September
30, 2004 and related statements of income of the Borrower, together with its
consolidated Subsidiaries (including the notes thereto) (the “Pro Forma
Financial Statements”) for the fiscal year ending December 31, 2003, for
the period beginning January 1, 2004 through September 30, 2004 and for the
four-quarter period ending September 30, 2004, and pro forma EBITDA (the “Pro
Forma EBITDA”) for the four-quarter period ending September 30, 2004,
copies of which have heretofore been furnished to each Lender (via inclusion in
the Information Memorandum), have been prepared giving effect (as if such
events had occurred on such date) to the Transactions. Each of the Pro Forma
Financial Statements and the Pro Forma EBITDA has been prepared in good faith
based on assumptions believed by the Borrower to have been reasonable as of the
date of delivery thereof (it being understood that such assumptions are based
on good faith estimates of certain items and that the actual amount of such
items on the Closing Date is subject to change), and presents fairly in all
material respects on a pro  forma basis the estimated financial
position of the Borrower and its consolidated Subsidiaries as at the Closing
Date, assuming that the Transactions had actually occurred at such date.

 

(b)   The
audited consolidated balance sheets of the Acquired Business as at December 31,
2002 and 2003, and the audited consolidated statements of income and cash flows
for such fiscal years, reported on by and accompanied by a report from PricewaterhouseCoopers
LLP, copies
of which have heretofore been furnished to each Lender, present fairly the
consolidated financial position of the Acquired Business as at such date and
the consolidated results of operations and cash flows of the Acquired Business
for the years then ended.

 

(c)   The
unaudited interim consolidated balance sheet of the Acquired Business as at
September 30, 2004, and the related unaudited interim consolidated statements
of income for the 9-month period ended September 30, 2004 (including for the
comparable period in fiscal year 2003), present fairly the consolidated
financial condition of the Acquired Business as at such date (subject to normal
year-end audit adjustments). All such financial statements have been prepared
in accordance with GAAP applied consistently throughout the periods involved
(subject to (i) normal year-end adjustments, (ii) adjustments,
reclassifications and exceptions set forth in the Acquisition Agreement and the
schedules and exhibits thereto and (iii) the absence of notes, except as
approved by the aforementioned firm of accountants and disclosed therein).
Except as disclosed on Schedule 6.01 or as, individually or in the aggregate,
would not reasonably be expected to have a Material Adverse Effect, none of
Holdings, the Borrower or the Acquired Business has any material Guarantees,
contingent liabilities and liabilities for taxes, or any long-term leases or
unusual forward or long-term commitments, including any interest rate or
foreign currency swap or exchange transaction or other obligation in respect of
derivatives, that are not reflected in the most recent financial statements
referred to in this paragraph or in the Pro Forma Financial Statements.  During the period from September 30, 2004 to
and including the date hereof, there has been no disposition by any of
Holdings, the Borrower or the Acquired Business of any material part of its
business or property.

 

SECTION
3.06.  No Material Adverse Change or Material
Adverse Effect.  Since
September 30, 2004, there has been no event, development or circumstance that
has or would reasonably be expected to have a Material Adverse Effect.

 

SECTION
3.07.  Title to Properties; Possession Under
Leases.  (a)   Each
of Holdings, the Borrower and the Subsidiaries has good and insurable fee
simple title to, or valid leasehold interests

 

56

 

in, or easements or other
limited property interests in, all its real properties (including all Mortgaged
Properties) and has good and marketable title to its personal property and
assets, in each case, except for defects in title that do not interfere with
its ability to conduct its business as currently conducted or to utilize such
properties and assets for their intended purposes and except where the failure
to have such title could not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect. All such properties and assets are
free and clear of Liens, other than Liens expressly permitted by Section 6.02
or arising by operation of law.

 

(b)   Each
of Holdings, the Borrower and the Subsidiaries has complied with all
obligations under all leases to which it is a party, except where the failure
to comply would not reasonably be considered to have Material Adverse Effect,
and all such leases are in full force and effect, except leases in respect of
which the failure to be in full force and effect could not reasonably be
expected to have a Material Adverse Effect. Except as set forth on Schedule
3.07(b), each of Holdings, the Borrower and each of the Subsidiaries enjoys
peaceful and undisturbed possession under all such leases, other than leases in
respect of which the failure to enjoy peaceful and undisturbed possession could
not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.

 

(c)   Each
of Holdings, the Borrower and the Subsidiaries owns or possesses, or is
licensed to use, all patents, trademarks, service marks, trade names and
copyrights and all licenses and rights with respect to the foregoing, necessary
for the present conduct of its business, without any conflict (of which the
Borrower has been notified in writing) with the rights of others, and free from
any burdensome restrictions on the present conduct of the Acquired Business,
except where such conflicts and restrictions could not reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect or except
as set forth on Schedule 3.07(c).

 

(d)   As
of the Closing Date, none of Holdings, the Borrower and their Subsidiaries has
received any notice of any pending or contemplated condemnation proceeding
affecting any of the Mortgaged Properties or any sale or disposition thereof in
lieu of condemnation that remains unresolved as of the Closing Date.

 

(e)
  None of Holdings, the Borrower and their Subsidiaries is
obligated on the Closing Date under any right of first refusal, option or other
contractual right to sell, assign or otherwise dispose of any Mortgaged
Property or any interest therein, except as permitted under Section 6.02 or 6.05.

 

SECTION
3.08.  Subsidiaries.  (a)    Schedule
3.08(a) sets forth as of the Closing Date the name and jurisdiction of
incorporation, formation or organization of each subsidiary of Holdings and, as
to each such subsidiary, the percentage of each class of Equity Interests owned
by Holdings or by any such subsidiary.

 

(b)   As
of the Closing Date, there are no outstanding subscriptions, options, warrants,
calls, rights or other agreements or commitments (other than stock options
granted to employees or directors and directors’ qualifying shares) of any
nature relating to any Equity Interests of Holdings, the Borrower or any of the
Subsidiaries, except rights of employees to purchase Equity Interests of Holdings
in connection with the Transactions or as set forth on Schedule 3.08(b).

 

SECTION
3.09.  Litigation; Compliance with Laws.  (a)   Except as set forth on Schedule 3.09,
there are no actions, suits, investigations or proceedings at law or in equity
or by or on behalf of any Governmental Authority or in arbitration now pending,
or, to the knowledge of Holdings or the Borrower, threatened in writing against
or affecting Holdings or the Borrower or any of the Subsidiaries or any
business, property or rights of any such person (i) that involve any Loan
Document or

 

57

 

the Transactions or (ii)
would reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.

 

(b)   None
of Holdings, the Borrower, the Subsidiaries and their respective properties or
assets is in violation of (nor will the continued operation of their material
properties and assets as currently conducted violate) any law, rule or
regulation (including any zoning, building, ordinance, code or approval or any
building permit, but excluding any Environmental Laws, which are subject to
Section 3.16) or any restriction of record or agreement affecting any Mortgaged
Property, or is in default with respect to any judgment, writ, injunction or
decree of any Governmental Authority, where such violation or default could
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

 

SECTION
3.10.  Federal Reserve Regulations.  (a)   None of Holdings, the Borrower and the
Subsidiaries is engaged principally, or as one of its important activities, in
the business of extending credit for the purpose of purchasing or carrying
Margin Stock.

 

(b)   No
part of the proceeds of any Loan will be used, whether directly or indirectly,
and whether immediately, incidentally or ultimately, (i) to purchase or carry
Margin Stock or to extend credit to others for the purpose of purchasing or
carrying Margin Stock or to refund indebtedness originally incurred for such purpose,
or (ii) for any purpose that entails a violation of, or that is inconsistent
with, the provisions of the Regulations of the Board, including Regulation U or
Regulation X.

 

SECTION
3.11.  Investment Company Act: Public Utility
Holding Company Act.  None of
Holdings, the Borrower and the Subsidiaries is (a) an “investment company” as
defined in, or subject to regulation under, the Investment Company Act of 1940,
as amended, or (b) a “holding company” as defined in, or subject to regulation
under, the Public Utility Holding Company Act of 1935, as amended.

 

SECTION
3.12.  Use of Proceeds.  The Borrower will use the proceeds of the
Revolving Facility Loans and Swingline Loans, and may request the issuance of
Letters of Credit, solely for general corporate purposes.  The Borrower will use the proceeds of the
Term Loans and up to $10 million of the Revolving Facility Loans, together with
the proceeds of the Equity Financing and the Senior Subordinated Notes to
consummate the Acquisition and the other Transactions.

 

SECTION
3.13.  Tax Returns.  Except as set forth on Schedule 3.13: 

 

(a)           Each of Holdings, the Borrower and
the Subsidiaries has filed or caused to be filed all federal, state, local and
non-U.S. Tax returns required to have been filed by it that are material to
such companies, taken as a whole, and each such Tax return is true and correct
in all material respects;

 

(b)           Each of Holdings, the Borrower and
the Subsidiaries has timely paid or caused to be timely paid all Taxes shown to
be due and payable by it on the returns referred to in clause (a) and all other
Taxes or assessments (or made adequate provision (in accordance with GAAP) for
the payment of all Taxes due) with respect to all periods or portions thereof
ending on or before the Closing Date (except Taxes or assessments that are
being contested in good faith by appropriate proceedings in accordance with
Section 5.03 and for which Holdings, the Borrower or any of the Subsidiaries
(as the case may be) has set aside on its books adequate reserves in accordance
with GAAP), which Taxes, if not paid or adequately provided for, could,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect; and

 

58

 

(c)           Other than as could not be,
individually or in the aggregate, reasonably expected to have a Material
Adverse Effect as of the Closing Date, with respect to each of Holdings, the
Borrower and the Subsidiaries, there are no claims being asserted in writing
with respect to any Taxes.

 

SECTION
3.14.  No Material Misstatements.  (a)   All written information (other than the
Projections, estimates and information of a general economic nature) (the “Information”)
concerning Holdings, the Borrower, the Subsidiaries, the Transactions and any
other transactions contemplated hereby included in the Information Memorandum
or otherwise prepared by or on behalf of the foregoing or their representatives
and made available to any Lenders or the Administrative Agent in connection
with the Transactions or the other transactions contemplated hereby, when taken
as a whole, were true and correct in all material respects, as of the date such
Information was furnished to the Lenders and as of the Closing Date and did not
contain any untrue statement of a material fact as of any such date or omit to
state a material fact necessary in order to make the statements contained
therein not materially misleading in light of the circumstances under which
such statements were made.

 

(b)   The
Projections and estimates and information of a general economic nature prepared
by or on behalf of the Borrower or any of its representatives and that have
been made available to any Lenders or the Administrative Agent in connection
with the Transactions or the other transactions contemplated hereby (i) have
been prepared in good faith based upon assumptions believed by the Borrower to
be reasonable as of the date thereof (it being understood that actual results
may vary materially from the Projections), as of the date such Projections and
estimates were furnished to the Lenders and as of the Closing Date, and (ii) as
of the Closing Date, have not been modified in any material respect by the
Borrower.

 

SECTION
3.15.  Employee Benefit Plans.    (a)   Except as could not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect:  (i) each of the Borrower, Holdings, the
Subsidiaries and the ERISA Affiliates is in compliance with the applicable
provisions of ERISA and the provisions of the Code relating to Plans and the
regulations and published interpretations thereunder; (ii) no Reportable Event
has occurred during the past five years as to which the Borrower, Holdings, any
of their Subsidiaries or any ERISA Affiliate was required to file a report with
the PBGC, other than reports that have been filed; (iii) the present value of
all benefit liabilities under each Plan of the Borrower, Holdings, their
Subsidiaries and the ERISA Affiliates (based on those assumptions used to fund
such Plan), as of the last annual valuation date applicable thereto for which a
valuation is available, does not exceed the value of the assets of such Plan,
and the present value of all benefit liabilities of all underfunded Plans
(based on those assumptions used to fund each such Plan) as of the last annual
valuation dates applicable thereto for which valuations are available, does not
exceed the value of the assets of all such underfunded Plans; no ERISA Event
has occurred or is reasonably expected to occur; and (iv) none of the Borrower,
Holdings, the Subsidiaries and the ERISA Affiliates has received any written
notification that any Multiemployer Plan is in reorganization or has been
terminated within the meaning of Title IV of ERISA, or has knowledge that any
Multiemployer Plan is reasonably expected to be in reorganization or to be
terminated.

 

(b)   Each of Holdings, the Borrower and the
Subsidiaries is in compliance (i) with all applicable provisions of law
and all applicable regulations and published interpretations thereunder with
respect to any employee pension benefit plan or other employee benefit plan
governed by the laws of a jurisdiction other than the United States and (ii)
with the terms of any such plan, except, in each case, for such noncompliance
that could not reasonably be expected to have a Material Adverse Effect.

 

SECTION
3.16.  Environmental Matters.    Except as disclosed on Schedule
3.16 and except as to matters that could not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect: (i) no
written notice, request for information, order, complaint or penalty has

 

59

 

been received by the
Borrower or any of its Subsidiaries, and there are no judicial, administrative
or other actions, suits or proceedings pending or, to the Borrower’s knowledge,
threatened which allege a violation of or liability under any Environmental
Laws, in each case relating to the Borrower or any of its Subsidiaries, (ii)
each of the Borrower and its
Subsidiaries has all environmental permits necessary for its operations to
comply with all applicable Environmental Laws and is, and during the term of
all applicable statutes of limitation, has been, in compliance with the terms
of such permits and with all other applicable Environmental Laws, (iii) no
Hazardous Material is located at any property currently owned, operated or
leased by the Borrower or any of its Subsidiaries that would reasonably be
expected to give rise to any liability or obligation of the Borrower or any of
its Subsidiaries under any Environmental Laws, and no Hazardous Material has
been generated, owned or controlled by the Borrower or any of its Subsidiaries
and has been transported to or released at any location in a manner that would
reasonably be expected to give rise to any liability or obligation of the
Borrower or any of its Subsidiaries under any Environmental Laws, and (iv)
there are no acquisition agreements entered into after December 31, 2002 in
which the Borrower or any of its Subsidiaries has expressly assumed or
undertaken responsibility for any known or reasonably likely liability or
obligation of any other Person arising under or relating to Environmental Laws,
which in any such case has not been made available to the Administrative Agent
prior to the date hereof.

 

SECTION
3.17.  Security Documents.  (a)   The Collateral Agreement is effective to
create in favor of the Administrative Agent (for the benefit of the Secured
Parties) a legal, valid and enforceable security interest in the Collateral
described therein and proceeds thereof. In the case of the Pledged Collateral
described in the Collateral Agreement, when certificates or promissory notes,
as applicable, representing such Pledged Collateral are delivered to the
Administrative Agent, and in the case of the other Collateral described in the
Collateral Agreement (other than the Intellectual Property (as defined in the
Collateral Agreement)), when financing statements and other filings attached as
Schedule 6 to the Perfection Certificate are filed in the offices
specified on Schedule 7 of the Perfection Certificate, the
Administrative Agent (for the benefit of the Secured Parties) shall have a
fully perfected Lien on, and security interest in, all right, title and interest
of the Loan Parties in such Collateral and, subject to Section 9-315 of the New
York Uniform Commercial Code, the proceeds thereof, as security for the
Obligations to the extent perfection can be obtained by filing Uniform
Commercial Code financing statements, in each case prior and superior in right
to any other person (except, in the case of Collateral other than Pledged
Collateral, Liens expressly permitted by Section 6.02 and Liens having priority
by operation of law).

 

(b)   When
the Collateral Agreement or a summary thereof is properly filed in the United
States Patent and Trademark Office and the United States Copyright Office, and,
with respect to Collateral in which a security interest cannot be perfected by
such filings, upon the proper filing of the financing statements referred to in
paragraph (a) above, the Administrative Agent (for the benefit of the Secured
Parties) shall have a fully perfected Lien on, and security interest in, all
right, title and interest of the Loan Parties thereunder in the Intellectual
Property, in each case prior and superior in right to any other person (it
being understood that subsequent recordings in the United States Patent and
Trademark Office and the United States Copyright Office may be necessary to
perfect a lien on registered trademarks and patents, trademark and patent
applications and registered copyrights acquired by the grantors after the
Closing Date).

 

(c)   Each
Foreign Pledge Agreement, if any, shall be effective to create in favor of the
Administrative Agent, for the benefit of the Secured Parties, a legal, valid
and enforceable security interest in the Collateral described therein and
proceeds thereof.  In the case of the
Pledged Collateral described in a Foreign Pledge Agreement, when certificates representing
such Pledged Collateral are delivered to the Administrative Agent, the
Administrative Agent (for the benefit of the Secured Parties) shall have a
fully perfected Lien on, and security interest in, all right, title and
interest of the Loan Parties

 

60

 

in such Collateral
and the proceeds thereof, as security for the Obligations, in each case prior
and superior in right to any other person.

 

(d)   The
Mortgages executed and delivered on the Closing Date are, and the Mortgages
executed and delivered after the Closing Date pursuant to Section 5.10 shall
be, effective to create in favor of the Administrative Agent (for the benefit
of the Secured Parties) a legal, valid and enforceable Lien on all of the Loan
Parties’ right, title and interest in and to the Mortgaged Property thereunder
and the proceeds thereof, and when such Mortgages are filed or recorded in the
proper real estate filing or recording offices, the Administrative Agent (for
the benefit of the Secured Parties) shall have a fully perfected Lien on, and
security interest in, all right, title and interest of the Loan Parties in such
Mortgaged Property and, to the extent applicable, subject to Section 9-315 of
the Uniform Commercial Code, the proceeds thereof, in each case prior and
superior in right to any other Person, other than with respect to the rights of
a Person pursuant to Liens expressly permitted by Section 6.02 and Liens having
priority by operation of law.

 

SECTION
3.18.  Location of Real Property and Leased
Premises.    (a)   Schedule
8 to the Perfection Certificate lists completely and correctly as of the
Closing Date all material real property owned by Holdings, the Borrower and the
Subsidiary Loan Parties and the addresses thereof. As of the Closing Date,
Holdings, the Borrower and the Subsidiary Loan Parties own in fee all the real
property set forth as being owned by them on such Schedules.

 

(b)   Schedule
8 to the Perfection Certificate lists completely and correctly as of the Closing
Date all material real property leased by Holdings, the Borrower and the
Subsidiary Loan Parties and the addresses thereof. As of the Closing Date,
Holdings, the Borrower and the Subsidiary Loan Parties have valid leases in all
the real property set forth as being leased by them on such Schedules.

 

SECTION
3.19.  Solvency.  (a)   Immediately after giving effect to the
Transactions on the Closing Date, (i) the fair value of the assets of the
Borrower (individually) and Holdings, the Borrower and its Subsidiaries on a
consolidated basis, at a fair valuation, will exceed the debts and liabilities,
direct, subordinated, contingent or otherwise, of the Borrower (individually)
and Holdings, the Borrower and its Subsidiaries on a consolidated basis,
respectively; (ii) the present fair saleable value of the property of the
Borrower (individually) and Holdings, the Borrower and its Subsidiaries on a
consolidated basis will be greater than the amount that will be required to pay
the probable liability of the Borrower (individually) and Holdings, the
Borrower and its Subsidiaries on a consolidated basis, respectively, on their
debts and other liabilities, direct, subordinated, contingent or otherwise, as
such debts and other liabilities become absolute and matured; (iii) the
Borrower (individually) and Holdings, the Borrower and its Subsidiaries on a
consolidated basis will be able to pay their debts and liabilities, direct,
subordinated, contingent or otherwise, as such debts and liabilities become
absolute and matured; and (iv) the Borrower (individually) and Holdings, the
Borrower and its Subsidiaries on a consolidated basis will not have
unreasonably small capital with which to conduct the businesses in which they
are engaged as such businesses are now conducted and are proposed to be
conducted following the Closing Date.

 

(b)   Neither
Holdings nor the Borrower intend to, and does not believe that it or any of its
subsidiaries will, incur debts beyond its ability to pay such debts as they
mature, taking into account the timing and amounts of cash to be received by it
or any such subsidiary and the timing and amounts of cash to be payable on or
in respect of its Indebtedness or the Indebtedness of any such subsidiary.

 

SECTION
3.20.  Labor Matters.  Except as, individually or in the aggregate,
would not reasonably be expected to have a Material Adverse Effect:  (a) there are no strikes or other labor
disputes pending or threatened against Holdings, the Borrower or any of the Subsidiaries;
(b) the hours worked

 

61

 

and payments made to
employees of Holdings, the Borrower and the Subsidiaries have not been in
violation of the Fair Labor Standards Act or any other applicable law dealing
with such matters; and (c) all payments due from Holdings, the Borrower or any
of the Subsidiaries or for which any claim may be made against Holdings, the
Borrower or any of the Subsidiaries, on account of wages and employee health
and welfare insurance and other benefits have been paid or accrued as a
liability on the books of Holdings, the Borrower or such Subsidiary to the
extent required by GAAP.  Except (i) as,
individually or in the aggregate, would not reasonably be expected to have a
Material Adverse Effect or (ii) as set forth on Schedule 3.20, the
consummation of the Transactions will not give rise to a right of termination
or right of renegotiation on the part of any union under any material
collective bargaining agreement to which Holdings, the Borrower or any of the
Subsidiaries (or any predecessor) is a party or by which Holdings, the Borrower
or any of the Subsidiaries (or any predecessor) is bound.

 

SECTION
3.21.  Insurance.  Schedule 3.21 sets forth a true,
complete and correct description of all material insurance maintained by or on
behalf of Holdings, the Borrower or the Subsidiaries as of the Closing Date. As
of such date, such insurance is in full force and effect. The Borrower believes
that the insurance maintained by or on behalf of Holdings, the Borrower and the
Subsidiaries is adequate.

 

ARTICLE IV

 

Conditions
of Lending

 

The obligations of (a) the Lenders (including the
Swingline Lender) to make Loans and (b) any Issuing Bank to issue Letters of
Credit or increase the stated amounts of Letters of Credit hereunder (each, a “Credit
Event”) are subject to the satisfaction of the following conditions:

 

SECTION
4.01.  All Credit Events.  On the date of each Borrowing and on the date
of each issuance, amendment, extension or renewal of a Letter of Credit:

 

(a)           The Administrative Agent shall have
received, in the case of a Borrowing, a Borrowing Request as required by
Section 2.03 (or a Borrowing Request shall have been deemed given in accordance
with the last paragraph of Section 2.03) or, in the case of the issuance of a Letter
of Credit, the applicable Issuing Bank and the Administrative Agent shall have
received a notice requesting the issuance of such Letter of Credit as required
by Section 2.05(b).

 

(b)           The representations and warranties set
forth in Article III hereof (other than, if the date of such Borrowing or
issuance, amendment, extension or renewal of a Letter of Credit is the Closing
Date, in Section 3.06) shall be true and correct in all material respects as of
such date (other than an amendment, extension or renewal of a Letter of Credit
without any increase in the stated amount of such Letter of Credit), as
applicable, 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 be true and
correct in all material respects as of such earlier date).

 

(c)           At the time of and immediately after
such Borrowing or issuance, amendment, extension or renewal of a Letter of Credit
(other than an amendment, extension or renewal of a Letter of Credit without
any increase in the stated amount of such Letter of Credit), as applicable, no
Event of Default or Default shall have occurred and be continuing.

 

62

 

Each Borrowing and each issuance, amendment,
extension or renewal of a Letter of Credit shall be deemed to constitute a
representation and warranty by the Borrower on the date of such Borrowing,
issuance, amendment, extension or renewal as applicable, as to the matters
specified in paragraphs (b) and (c) of this Section 4.01.

 

SECTION 4.02.  First
Credit Event.  On the Closing
Date:

 

(a)           The Administrative Agent (or its
counsel) shall have received from each party hereto either (i) a counterpart of
this Agreement signed on behalf of such party or (ii) written evidence
satisfactory to the Administrative Agent (which may include telecopy
transmission of a signed signature page of this Agreement) that such party has
signed a counterpart of this Agreement.

 

(b)           The Administrative Agent shall have
received, on behalf of itself, the Lenders and each Issuing Bank on the Closing
Date, a favorable written opinion of (i) Latham & Watkins LLP, special
counsel for Holdings and the Borrower, in form and substance reasonably
satisfactory to the Administrative Agent and (ii) local U.S. counsel reasonably
satisfactory to the Administrative Agent as specified on Schedule 4.02(b),
in each case (A) dated the Closing Date, (B) addressed to each Issuing Bank on
the Closing Date, the Administrative Agent and the Lenders and (C) in form and
substance reasonably satisfactory to the Administrative Agent and covering such
other matters relating to the Loan Documents and the Transactions as the
Administrative Agent shall reasonably request, and each of Holdings and the
Borrower hereby instructs its counsel to deliver such opinions.

 

(c)           The Administrative Agent shall have
received in the case of each Loan Party each of the items referred to in
clauses (i), (ii), (iii) and (iv) below:

 

(i)            a copy of the certificate or
articles of incorporation, certificate of limited partnership or certificate of
formation, including all amendments thereto, of each Loan Party, (A) in the
case of a corporation, certified as of a recent date by the Secretary of State
(or other similar official) of the jurisdiction of its organization, and a
certificate as to the good standing (to the extent such concept or a similar
concept exists under the laws of such jurisdiction) of each such Loan Party as
of a recent date from such Secretary of State (or other similar official) or
(B) in the case of a limited partnership or limited liability company,
certified by the secretary or assistant secretary of each such Loan Party;

 

(ii)           a certificate of the secretary or
assistant secretary or similar officer of each Loan Party dated the Closing
Date and certifying

 

(A)          that
attached thereto is a true and complete copy of the by-laws (or limited
partnership agreement, limited liability company agreement or other equivalent
governing documents) of such Loan Party as in effect on the Closing Date and at
all times since a date prior to the date of the resolutions described in clause
(B) below,

 

(B)           that
attached thereto is a true and complete copy of resolutions duly adopted by the
board of directors (or equivalent governing body) of such Loan Party (or its
managing general partner or managing member) authorizing the execution,
delivery and performance of the Loan Documents to which such person is a party
and, in the case of the Borrower, the borrowings hereunder, and

 

63

 

that such
resolutions have not been modified, rescinded or amended and are in full force
and effect on the Closing Date,

 

(C)           that
the certificate or articles of incorporation, certificate of limited
partnership or certificate of formation of such Loan Party has not been amended
since the date of the last amendment thereto disclosed pursuant to clause (i)
above,

 

(D)          as
to the incumbency and specimen signature of each officer executing any Loan
Document or any other document delivered in connection herewith on behalf of
such Loan Party and

 

(E)           as
to the absence of any pending proceeding for the dissolution or liquidation of
such Loan Party or, to the knowledge of such person, threatening the existence
of such Loan Party;

 

(iii)          a certificate of another officer as to the incumbency and specimen signature of the
Secretary or Assistant Secretary or similar officer executing the certificate
pursuant to clause (ii) above; and

 

(iv)            such
other documents as the Administrative Agent, the Lenders and any Issuing Bank
on the Closing Date may reasonably request (including without limitation, tax
identification numbers and addresses).

 

(d)           The
Collateral and Guarantee Requirement shall have been satisfied and the
Administrative Agent shall have received a completed Perfection Certificate
dated the Closing Date and signed by a Responsible Officer of the Borrower,
together with all attachments contemplated thereby, and the results of a search
of the Uniform Commercial Code (or equivalent)
filings made with respect to the Loan Parties in the jurisdictions contemplated
by the Perfection Certificate and copies of the financing statements (or
similar documents) disclosed by such search and evidence reasonably
satisfactory to the Administrative Agent that the Liens indicated by such
financing statements (or similar documents) are permitted by Section 6.02 or
have been released.

 

(e)           The
Acquisition shall have been consummated or shall be consummated simultaneously
with or immediately following the closing under this Agreement in accordance
with the terms and conditions of the Acquisition as set forth in the
Acquisition Documents, without material amendment, modification or waiver
thereof which is materially adverse to the Lenders without the prior written
consent of the Joint Lead Arrangers.

 

(f)            Holdings
shall have received gross proceeds of not less than $163.6 million from the
Equity Financing.  Holdings shall have
contributed all net cash proceeds of the Equity Financing to the Borrower in
the form of common equity.

 

(g)           The
Borrower shall have received net cash proceeds from the issuance of $275
million of Senior Subordinated Notes pursuant to the Senior Subordinated Note
Indenture.

 

(h)           The
terms and conditions of the Senior Subordinated Notes (including terms and
conditions relating to the interest rate, fees, amortization, maturity,
subordination, covenants, defaults and remedies) shall be as set forth in the Offering
Memorandum or otherwise reasonably satisfactory to the Agents.

 

64

 

(i)            The
Lenders shall have received the financial statements referred to in Section
3.05.

 

(j)            On
the Closing Date, after giving effect to the Transactions and the other
transactions contemplated hereby, the Borrower and the Subsidiaries shall have
outstanding no Indebtedness other than (i) the Loans and other extensions of
credit under this Agreement, (ii) the Senior Subordinated Notes and (iii) other
Indebtedness permitted pursuant to Section 6.01.

 

(k)           The
Lenders shall have received a solvency certificate substantially in the form of
Exhibit F and signed by the Chief Financial Officer of the Borrower
confirming the solvency of Borrower and its Subsidiaries on a consolidated
basis after giving effect to the Transactions on the Closing Date.

 

(l)            All
requisite governmental authorities and third parties shall have approved or
consented to the Transactions and the
other transactions comtemplated hereby to the extent required, and all
applicable waiting periods shall have expired.

 

(m)          The Agents
shall have received all fees payable thereto or to any Lender on or prior to
the Closing Date and, to the extent invoiced, all other amounts due and payable
pursuant to the Loan Documents
on or prior to the Closing Date, including, to the extent invoiced,
reimbursement or payment of all reasonable out-of-pocket expenses (including
reasonable fees, charges and disbursements of Simpson Thacher & Bartlett
LLP and U.S. local counsel) required to be reimbursed or paid by the Loan
Parties hereunder or under any Loan Document.

 

(n)           The
Facilities shall have received a rating from S&P and Moody’s.

 

(o)           The
ratio of (i) pro forma consolidated Indebtedness of the Borrower and its
Subsidiaries as of the Closing Date (after giving effect to the Transactions
but excluding any Revolving Facility Borrowings on the Closing Date), to (ii)
pro forma consolidated EBITDA of the Borrower and its Subsidiaries for the four-fiscal
quarter period most recently ended prior to the Closing Date for which
financial statements are required to be delivered pursuant to Section 4.02(i)
and calculated in accordance with Schedule 1.01(b) shall not be greater
than 6.00 to 1.00.

 

(p)           All
representations and warranties of each Loan Party set forth in the Acquisition
Agreement shall have been true and correct in all material respects as of the
time such representations and warranties were made and shall be true and
correct in all material respects as of the Closing Date as if such
representations and warranties were made on and as of such date, unless stated
to relate to a specific earlier date, in which case such representations and
warranties shall be true and correct in all material respects as of such
earlier date.

 

(q)           The
Transaction Costs shall not exceed $70 million.

 

(r)            The
Agents shall have received, at least five Business Days prior to the Closing
Date, all documentation and other information required by bank regulatory
authorities under applicable “know your customer” and anti-money laundering
rules and regulations, including without limitation the Act (as defined in
Section 9.19).

 

Each Agent and each Lender, by delivering its signature page to this
Agreement and funding a Loan on the Closing Date shall be deemed to have
acknowledged receipt of and consented to and approved each Loan Document and
each other document required to be approved by any Agent or Lender, as
applicable, on the Closing Date.

 

65

 

ARTICLE V

 

Affirmative
Covenants

 

Each of Holdings and the Borrower covenants and
agrees with each Lender that so long as this Agreement shall remain in effect
and until the Commitments have been terminated and the principal of and interest
on each Loan, all Fees and all other expenses or amounts payable under any Loan
Document shall have been paid in full and all Letters of Credit have been
canceled or have expired and all amounts drawn thereunder have been reimbursed
in full, unless the Required Lenders shall otherwise consent in writing, the
Borrower (and Holdings to the extent specifically applicable to it) will, and
the Borrower will cause each of the Subsidiaries to:

 

SECTION
5.01.  Existence; Businesses and Properties.    (a)   Do
or cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence, except, in the case of a Subsidiary of
the Borrower, where the failure to do so would not reasonably be expected to
have a material adverse effect on the business, property, operations or
condition of the Borrower and its Subsidiaries, taken as a whole, or the
validity or enforceability of any of the Loan Documents or the rights and
remedies of the Administrative Agent and the Lenders thereunder, and except as
otherwise expressly permitted under Section 6.05, and except for the
liquidation or dissolution of Subsidiaries if the assets of such Subsidiaries
to the extent they exceed estimated liabilities are acquired by the Borrower or
a Wholly Owned Subsidiary of the Borrower in such liquidation or dissolution; provided
that Subsidiary Loan Parties may not be liquidated into Subsidiaries that are
not Loan Parties and Domestic Subsidiaries may not be liquidated into Foreign
Subsidiaries.

 

(b)   Except where the failure to do so would not
reasonably be expected to have a Material Adverse Effect, do or cause to be
done all things necessary to (i) lawfully obtain, preserve, renew, extend
and keep in full force and effect the permits, franchises, authorizations,
patents, trademarks, service marks, trade names, copyrights, licenses and
rights with respect thereto necessary to the normal conduct of its business,
and (ii) at all times maintain and preserve all property necessary to the
normal conduct of its business and keep such property in good repair, working
order and condition and from time to time make, or cause to be made, all
needful and proper repairs, renewals, additions, improvements and replacements
thereto necessary in order that the business carried on in connection
therewith, if any, may be properly conducted at all times (in each case except
as expressly permitted by this Agreement).

 

SECTION
5.02.  Insurance.  (a)   Maintain, with financially sound and
reputable insurance companies, insurance in such amounts and against such risks
as are customarily maintained by similarly situated companies engaged in the
same or similar businesses operating in the same or similar locations and shall
cause the Administrative Agent to be listed as a co-loss payee on property and
casualty policies and as an additional insured on liability policies.

 

(b)   If
at any time the area in which the Premises (as defined in the Mortgages) are
located is designated a “flood hazard area” in any Flood Insurance Rate Map
published by the Federal Emergency Management Agency (or any successor agency),
obtain flood insurance in such reasonable total amount as the Administrative
Agent may from time to time reasonably require, and otherwise comply with the
National Flood Insurance Program as set forth in the Flood Disaster Protection
Act of 1973, as it may be amended from time to time.

 

SECTION
5.03.  Taxes.  Pay and discharge promptly when due all
material Taxes, imposed upon it or upon its income or profits or in respect of
its property, before the same shall become delinquent or in default, as well as
all lawful claims which, if unpaid, might give rise to a Lien upon such

 

66

 

properties or any part
thereof; provided, however, that such payment and discharge shall
not be required with respect to any such Tax or claim so long as the validity
or amount thereof shall be contested in good faith by appropriate proceedings,
and Holdings, the Borrower or the affected Subsidiary, as applicable, shall
have set aside on its books reserves in accordance with GAAP with respect
thereto.

 

SECTION
5.04.  Financial Statements, Reports, etc.  Furnish to the Administrative Agent (which
will promptly furnish such information to the Lenders):

 

(a)           within 90 days (or, if applicable, such
shorter period as the SEC shall specify for the filing of annual reports on
Form 10-K) after the end of each fiscal year (commencing with the fiscal year
2004), a consolidated balance sheet and related statements of operations, cash
flows and owners’ equity showing the financial position of the Borrower and its
Subsidiaries as of the close of such fiscal year and the consolidated results
of its operations during such year and setting forth in comparative form the
corresponding figures for the prior fiscal year, which consolidated balance
sheet and related statements of operations, cash flows and owners’ equity shall
be audited by independent public accountants of recognized national standing
and accompanied by an opinion of such accountants (which shall not be qualified
in any material respect) to the effect that such consolidated financial
statements fairly present, in all material respects, the financial position and
results of operations of the Borrower and its Subsidiaries on a consolidated
basis in accordance with GAAP (it being understood that the delivery by the
Borrower of annual reports on Form 10-K of the Borrower and its consolidated
Subsidiaries shall satisfy the requirements of this Section 5.04(a) to the
extent such annual reports include the information specified herein)
(notwithstanding the foregoing, such requirements shall be deemed satisfied
with respect to the Form 10-K for fiscal year 2004 prior to the commencement of
an Exchange Offer by the filing within 120 days of the Issue Date with the SEC
of the Exchange Offer Registration Statement and/or Shelf Registration
Statement, and any amendments thereto, with such financial information that
satisfies Regulation S-X of the Securities Act with respect to fiscal year
2004; provided that in any event the Borrower agrees to furnish such
financial statements as soon as they are reasonably available);

 

(b)           within 45 days (or, if applicable, such
shorter period as the SEC shall specify for the filing of quarterly reports on
Form 10-Q) after the end of each of the first three fiscal quarters of each
fiscal year (commencing with the first fiscal quarter of 2005), a consolidated
balance sheet and related statements of operations and cash flows showing the
financial position of the Borrower and its Subsidiaries as of the close of such
fiscal quarter and the consolidated results of its operations during such
fiscal quarter and the then-elapsed portion of the fiscal year and setting
forth in comparative form the corresponding figures for the corresponding
periods of the prior fiscal year, all of which shall be in reasonable detail
and which consolidated balance sheet and related statements of operations and
cash flows shall be certified by a Financial Officer of the Borrower on behalf
of the Borrower as fairly presenting, in all material respects, the financial
position and results of operations of the Borrower and its Subsidiaries on a
consolidated basis in accordance with GAAP (subject to normal year-end audit
adjustments and the absence of footnotes) (it being understood that the delivery by the Borrower of
quarterly reports on Form 10-Q of the Borrower and its consolidated
Subsidiaries shall satisfy the requirements of this Section 5.04(b) to the
extent such quarterly reports include the information specified herein);

 

(c)           (x) concurrently with any delivery of
financial statements under paragraphs (a) or (b) above, a certificate of a
Financial Officer of the Borrower (i) certifying that no Event of Default or
Default has occurred or, if such an Event of Default or Default has occurred,
specifying the nature and extent thereof and any corrective action taken or
proposed to be taken with respect thereto and (ii) commencing with the fiscal
quarter ending March 31, 2005, setting

 

67

 

forth computations in reasonable detail satisfactory to the
Administrative Agent demonstrating compliance with the Financial Performance
Covenants and (y) concurrently with any delivery of financial statements under
paragraph (a) above, a certificate of the accounting firm opining on or
certifying such statements stating whether they obtained knowledge during the
course of their examination of such statements of any Default or Event of
Default (which certificate may be limited to accounting matters and disclaims
responsibility for legal interpretations);

 

(d)           promptly after the same become publicly
available, copies of all periodic and other publicly available reports, proxy
statements and, to the extent requested by the Administrative Agent, other
materials filed by Holdings, the Borrower or any of the Subsidiaries with the
SEC, or after an initial public offering, distributed to its stockholders
generally, as applicable;

 

(e)           within 90 days after the beginning of each fiscal
year, a detailed consolidated quarterly budget for such fiscal year (including
a projected consolidated balance sheet of the Borrower and its Subsidiaries as
of the end of the following fiscal year, and the related consolidated
statements of projected cash flow and projected income) and, as soon as
available, significant revisions, if any, of such budget and quarterly
projections with respect to such fiscal year, including a description of
underlying assumptions with respect thereto (collectively, the “Budget”),
which Budget shall in each case be accompanied by the statement of a Financial
Officer of the Borrower to the effect that, to the best of his knowledge, the
Budget is a reasonable estimate for the period covered thereby;

 

(f)            upon the reasonable request of the
Administrative Agent, deliver an updated Perfection Certificate (or, to the
extent such request relates to specified information contained in the
Perfection Certificate, such information) reflecting all changes since the date
of the information most recently received pursuant to this paragraph (f) or
Section 5.10(f);

 

(g)           promptly, a copy of all reports
submitted to the board of directors (or any committee thereof) of any of the
Borrower or any Subsidiary in connection with any material interim or special
audit made by independent accountants of the books of the Borrower or any such
Subsidiary (excluding any reports which have been identified as confidential);

 

(h)           promptly following a request therefor,
all documentation and other information that the Administrative Agent
reasonably requests on its behalf or on behalf of any Lender in order to comply
with its ongoing obligations under applicable “know your customer” and
anti-money laundering rules and regulations, including the USA Patriot Act; and

 

(i)            promptly, from time to time, such
other information regarding the operations, business affairs and financial
condition of Holdings, the Borrower or any of the Subsidiaries, or compliance
with the terms of any Loan Document, or such consolidating financial
statements, as in each case the Administrative Agent may reasonably request
(for itself or on behalf of any Lender).

 

SECTION
5.05.  Litigation and Other Notices.  Furnish to the Administrative Agent written
notice of the following promptly after any Responsible Officer of Holdings or
the Borrower obtains actual knowledge thereof:

 

(a)           any Event of Default or Default,
specifying the nature and extent thereof and the corrective action (if any)
proposed to be taken with respect thereto;

 

68

 

(b)           the filing or commencement of, or any
written threat or notice of intention of any person to file or commence, any
action, suit or proceeding, whether at law or in equity or by or before any
Governmental Authority or in arbitration, against Holdings, the Borrower or any
of the Subsidiaries as to which an adverse determination is reasonably probable
and which, if adversely determined, could reasonably be expected to have a Material
Adverse Effect;

 

(c)           any other development specific to
Holdings, the Borrower or any of the Subsidiaries that is not a matter of
general public knowledge and that has had, or could reasonably be expected to
have, a Material Adverse Effect; and

 

(d)           the occurance of any ERISA Event that,
together with all other ERISA Events that have occurred, could reasonably be
expected to have a Material Adverse Effect.

 

SECTION
5.06.  Compliance with Laws.  Comply with all laws, rules, regulations and
orders of any Governmental Authority 
applicable to it or its property, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect; provided that this Section 5.06 shall not
apply to Environmental Laws, which are the subject of Section 5.09, or to laws
related to Taxes, which are the subject of Section 5.03.

 

SECTION
5.07.  Maintaining Records; Access to Properties
and Inspections.  Maintain all
financial records in accordance with GAAP and permit any persons designated by
the Administrative Agent or, upon the occurrence and during the continuance of
an Event of Default, any Lender to visit and inspect the financial records and
the properties of Holdings, the Borrower or any of the Subsidiaries at
reasonable times, upon reasonable prior notice to Holdings or the Borrower, and
as often as reasonably requested and to make extracts from and copies of such
financial records, and permit any persons designated by the Administrative
Agent or, upon the occurrence and during the continuance of an Event of
Default, any Lender upon reasonable prior notice to Holdings or the Borrower to
discuss the affairs, finances and condition of Holdings, the Borrower or any of
the Subsidiaries with the officers thereof and independent accountants therefor
(subject to reasonable requirements of confidentiality, including requirements
imposed by law or by contract).

 

SECTION
5.08.  Use of Proceeds.  Use the proceeds of the Revolving Facility
Loans and the Swingline Loans and request issuance of Letters of Credit solely
for general corporate purposes.  Use the
proceeds of the Term Loans and up to $10 million of the Revolving Facility
Loans to consummate the Acquisition and the other Transactions.

 

SECTION
5.09.  Compliance with Environmental Laws.  Comply, and make reasonable efforts to cause
all lessees and other persons occupying its properties to comply, with all
Environmental Laws applicable to its operations and properties; and obtain and
renew all material authorizations and permits required pursuant to
Environmental Law for its operations and properties, in each case in accordance
with Environmental Laws, except, in each case with respect to this Section
5.09, to the extent the failure to do so could not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect.

 

SECTION
5.10.  Further Assurances; Additional Mortgages.  (a)   Execute any and all further documents,
financing statements, agreements and instruments, and take all such further
actions (including the filing and recording of financing statements, fixture
filings, Mortgages and other documents and recordings of Liens in stock
registries), that may be required under any applicable law, or that the
Administrative Agent may reasonably request, to cause the Collateral and
Guarantee Requirement to be and remain satisfied, all at the expense of the
Loan Parties and provide to the Administrative Agent,

 

69

 

from time to time upon
reasonable request, evidence reasonably satisfactory to the Administrative
Agent as to the perfection and priority of the Liens created or intended to be
created by the Security Documents.

 

(b)
  If any asset (including any real property (other than real
property covered by paragraph (c) below) or improvements thereto or any
interest therein) that has an individual fair market value
in an amount greater than $3.0 million is acquired by Holdings, the Borrower or
any other Loan Party after the Closing Date or owned by an entity at the time
it becomes a Subsidiary Loan Party (in each case other than assets constituting
Collateral under a Security Document that become subject to the Lien of such
Security Document upon acquisition thereof), cause such asset to be subjected
to a Lien securing the Obligations and take, and cause the Subsidiary Loan
Parties to take, such actions as shall be necessary
or reasonably requested by the Administrative Agent to grant and perfect such
Liens, including actions described in paragraph (a) of this Section, all
at the expense of the Loan Parties, subject to paragraph (g) below.

 

(c)   Grant
and cause each of the Subsidiary Loan Parties to grant to the Administrative
Agent security interests and mortgages in such real property of the Borrower or
any such Subsidiary Loan Parties as are not covered by the original Mortgages,
to the extent acquired after the Closing Date and having a value at the time of
acquisition in excess of $3.0 million pursuant to documentation
substantially in the form of the Mortgages delivered to the Administrative
Agent on the Closing Date or in such other form as is reasonably satisfactory
to the Administrative Agent (each, an “Additional Mortgage”) and
constituting valid and enforceable Liens subject to no other Liens except as
are permitted by Section 6.02, at the time of perfection thereof, record or
file, and cause each such Subsidiary to record or file, the Additional Mortgage
or instruments related thereto in such manner and in such places as is required
by law to establish, perfect, preserve and protect the Liens in favor of the
Administrative Agent required to be granted pursuant to the Additional
Mortgages and pay, and cause each such Subsidiary to pay, in full, all Taxes,
fees and other charges payable in connection therewith, in each case subject to
paragraph (g) below. Unless otherwise waived by the Administrative Agent, with
respect to each such Additional Mortgage, the Borrower shall deliver to the
Administrative Agent contemporaneously therewith a title insurance policy and a
survey in accordance with clause (i) of the Collateral and Guarantee
Requirement, and the legal opinions of local U.S. counsel in the state where
such real property is located, in form and substance reasonably satisfactory to
the Administrative Agent.

 

(d)   If
any additional direct or indirect Subsidiary of Holdings is formed or acquired
after the Closing Date and if such Subsidiary is a Subsidiary Loan Party,
within five Business Days after the date such Subsidiary is formed or acquired,
notify the Administrative Agent and the Lenders thereof and, within 20 Business
Days after the date such Subsidiary is formed or acquired or such longer period
as the Administrative Agent shall agree, cause the Collateral and Guarantee
Requirement to be satisfied with respect to such Subsidiary and with respect to
any Equity Interest in or Indebtedness of such Subsidiary owned by or on behalf
of any Loan Party.

 

(e)   If
any additional Foreign Subsidiary of Holdings is formed or acquired after the
Closing Date and if such Subsidiary is a “first tier” Foreign Subsidiary,
within five Business Days after the date such Foreign Subsidiary is formed or
acquired, notify the Administrative Agent and the Lenders thereof and, within
20 Business Days after the date such Foreign Subsidiary is formed or acquired
or such longer period as the Administrative Agent shall agree, cause the
Collateral and Guarantee Requirement to be satisfied with respect to any Equity
Interest in such Foreign Subsidiary owned by or on behalf of any Loan Party.

 

(f)  (i) Furnish to the Administrative Agent
prompt written notice of any change (A) in any Loan Party’s corporate or
organization name, (B) in any Loan Party’s identity or organizational structure
or (C) in any Loan Party’s organizational identification number; provided
that the Borrower shall

 

70

 

not effect or permit
any such change unless all filings have been made, or will have been made
within any statutory period, under the Uniform Commercial Code or otherwise
that are required in order for the Administrative Agent to continue at all
times following such change to have a valid, legal and perfected security
interest in all the Collateral for the benefit of the Secured Parties and (ii)
promptly notify the Administrative Agent if any material portion of the
Collateral is damaged or destroyed.

 

(g)   The Collateral and Guarantee
Requirement and the other provisions of this Section 5.10 need not be satisfied
with respect to (i) any real property held by the Borrower or any of its
Subsidiaries as a lessee under a lease, (ii) any Equity Interests acquired
after the Closing Date in accordance with this Agreement if, and to the extent
that, and for so long as (A) doing so would violate applicable law or a
contractual obligation binding on such Equity Interests and (B) such law or
obligation existed at the time of the acquisition thereof and was not created
or made binding on such Equity Interests in contemplation of or in connection
with the acquisition of such Subsidiary, and (iii) any assets acquired
after the Closing Date, to the extent that, and for so long as, taking such
actions would violate a contractual obligation binding on such assets that
existed at the time of the acquisition thereof and was not created or made
binding on such assets in contemplation or in connection with the acquisition
of such assets (except in the case of assets acquired with Indebtedness
permitted pursuant to Section 6.01(i) that is secured by a Lien permitted pursuant
to Section 6.02(i)); provided that, upon the reasonable request of the
Administrative Agent, Holdings and the Borrower shall, and shall cause any
applicable Subsidiary to, use commercially reasonable efforts to have waived or
eliminated any contractual obligation of the types described in clauses (ii)
and (iii) above.

 

SECTION
5.11.  Fiscal Year; Accounting.  In the case of Holdings and the Borrower,
cause its fiscal year to end on December 31.

 

SECTION
5.12.  Proceeds of Certain Dispositions.  If, as a result of the receipt of any cash
proceeds by the Borrower or any Subsidiary in connection with any sale,
transfer, lease or other disposition of any asset the Borrower would be
required by the terms of the Senior Subordinated Note Indenture to make an
offer to purchase any Senior Subordinated Notes, then, in the case of the
Borrower or any Subsidiary, prior to the first day on which the Borrower would
be required to commence such an offer to purchase, (i) prepay Loans in
accordance with Section 2.11 or (ii) acquire assets in a manner that is
permitted hereby, in each case in a manner that will eliminate any such
requirement to make such an offer to purchase.

 

SECTION
5.13.  Maintenance of Ratings.  The Borrower will at all times use
commercially reasonable efforts to maintain ratings issued by Moody’s and
S&P with respect to its senior secured debt.

 

SECTION
5.14.  Interest Rate Protection.  As promptly as practicable, and in any event
within 180 days after the Closing Date, the Borrower will enter into, and
thereafter for a period of not less than three years will maintain in effect,
one or more Swap Agreements on such terms and with such parties as shall be
reasonably satisfactory to the Agents, the effect of which is that at least 40%
of the then outstanding Indebtedness of the Borrower and its Subsidiaries would
bear interest at a fixed rate or the interest cost in respect of which will be
fixed.

 

71

 

ARTICLE VI

 

Negative
Covenants

 

Each of Holdings and the Borrower covenants and
agrees with each Lender that, so long as this Agreement shall remain in effect
and until the Commitments have been terminated and the principal of and
interest on each Loan, all Fees and all other expenses or amounts payable under
any Loan Document have been paid in full and all Letters of Credit have been
canceled or have expired and all amounts drawn thereunder have been reimbursed
in full, unless the Required Lenders shall otherwise consent in writing, the
Borrower will not, and Holdings and the Borrower will not permit any of the
Subsidiaries to:

 

SECTION
6.01.  Indebtedness.  Incur, create, assume or permit to exist any
Indebtedness, except:

 

(a)           Indebtedness existing on the Closing
Date and set forth on Schedule 6.01 and any Permitted Refinancing
Indebtedness incurred to Refinance such Indebtedness (other than intercompany
indebtedness Refinanced with Indebtedness owed to a person not affiliated with
the Borrower or any Subsidiary);

 

(b)           Indebtedness created hereunder and under
the other Loan Documents;

 

(c)           Indebtedness of the Borrower or any
Subsidiary pursuant to Swap Agreements permitted by Section 6.13;

 

(d)           Indebtedness owed to (including
obligations in respect of letters of credit or bank guarantees or similar instruments
for the benefit of) any person providing workers’ compensation, health,
disability or other employee benefits or property, casualty or liability
insurance to the Borrower or any Subsidiary, pursuant to reimbursement or
indemnification obligations to such person, provided that upon the
incurrence of Indebtedness with respect to reimbursement obligations regarding
workers’ compensation claims, such obligations are reimbursed not later than 30
days following such incurrence;

 

(e)           Indebtedness of the Borrower to any
Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary, provided
that (i) Indebtedness of any Subsidiary that is not a Subsidiary Loan Party to
the Loan Parties shall be subject to Section 6.04(b) and (ii) Indebtedness of
the Borrower to any Subsidiary and Indebtedness of any other Loan Party to any
Subsidiary that is not a Subsidiary Loan Party (the “Subordinated
Intercompany Debt”) shall be subordinated to the Obligations on terms
reasonably satisfactory to the Administrative Agent;

 

(f)            Indebtedness in respect of performance
bonds, bid bonds, appeal bonds, surety bonds, financial assurances and
completion guarantees and similar obligations, in each case provided in the
ordinary course of business, including those incurred to secure health, safety
and environmental obligations in the ordinary course of business;

 

(g)           Indebtedness arising from the honoring
by a bank or other financial institution of a check, draft or similar
instrument drawn against insufficient funds in the ordinary course of business
or other cash management services in the ordinary course of business, provided
that (x) such Indebtedness (other than credit or purchase cards) is
extinguished within ten Business Days of its incurrence and (y) such Indebtedness
in respect of credit or purchase cards is extinguished within 60 days from its
incurrence;

 

72

 

(h)           (i) Indebtedness of a Subsidiary
acquired after the Closing Date or a corporation merged into or consolidated
with the Borrower or any Subsidiary after the Closing Date and Indebtedness
assumed in connection with the acquisition of assets, which Indebtedness in
each case, exists at the time of such acquisition, merger or consolidation and
is not created in contemplation of such event and where such acquisition,
merger or consolidation is permitted by this Agreement and (ii) any Permitted
Refinancing Indebtedness incurred to Refinance such Indebtedness, provided
that the aggregate principal amount of such Indebtedness at the time of, and
after giving effect to, such acquisition, merger or consolidation, such
assumption or such incurrence, as applicable (together with Indebtedness
outstanding pursuant to this paragraph (h), paragraph (i) of this Section 6.01
and the Remaining Present Value of outstanding leases permitted under Section
6.03), would not exceed the greater of $40 million and 4.0% of Consolidated
Total Assets as of the end of the fiscal quarter immediately prior to the date
of such acquisition, merger or consolidation, such assumption or such
incurrence, as applicable, for which financial statements have been delivered
pursuant to Section 5.04;

 

(i)            Capital Lease Obligations, mortgage financings and
purchase money Indebtedness incurred by the Borrower or any Subsidiary prior to
or within 270 days after the acquisition,
lease or improvement of the respective asset permitted under this Agreement in
order to finance such acquisition or improvement, and any Permitted Refinancing
Indebtedness in respect thereof, in an aggregate principal amount that at the
time of, and after giving effect to, the incurrence thereof (together with
Indebtedness outstanding pursuant to paragraph (h) of this Section 6.01, this
paragraph (i) and the Remaining Present Value of leases permitted under Section
6.03) would not exceed the greater of $40 million and 4.0% of
Consolidated Total Assets as of the end of the fiscal quarter immediately prior
to the date of such incurrence for which financial statements have been delivered
pursuant to Section 5.04;

 

(j)            Capital Lease Obligations incurred by
the Borrower or any Subsidiary in respect of any Sale and Lease-Back
Transaction that is permitted under Section 6.03;

 

(k)           other Indebtedness of the Borrower or
any Subsidiary, in an aggregate principal amount that at the time of, and after
giving effect to, the incurrence thereof, would not exceed the greater of $50
million and 5.0% of Consolidated Total Assets as of the end of the fiscal
quarter immediately prior to the date of such incurrence for which financial
statements have been delivered pursuant to Section 5.04;

 

(l)            Indebtedness of the Borrower pursuant
to the Senior Subordinated Notes in an aggregate principal amount that is not
in excess of $275 million and any Permitted Refinancing Indebtedness incurred
to Refinance such Indebtedness;

 

(m)          Guarantees (i) by the Subsidiary Loan
Parties of the Indebtedness of the Borrower described in paragraph (1), so long
as the Guarantee of the Senior Subordinated Notes or any Permitted Refinancing
Indebtedness in respect thereof is subordinated substantially on terms as set
forth in the Senior Subordinated Note Indenture, (ii) by the Borrower or any
Subsidiary Loan Party of any Indebtedness of the Borrower or any Subsidiary
Loan Party expressly permitted to be incurred under this Agreement, (iii) by
the Borrower or any Subsidiary Loan Party of Indebtedness otherwise expressly
permitted hereunder of any Subsidiary that is not a Subsidiary Loan Party to
the extent such Guarantees are permitted by Section 6.04(b), (iv) by any
Foreign Subsidiary of Indebtedness of another Foreign Subsidiary, and (v) by
the Borrower of Indebtedness of Foreign Subsidiaries incurred for working
capital purposes in the ordinary course of business on ordinary business terms
so long as such Indebtedness is permitted to be incurred under Section 6.01(a)
or (s); provided that Guarantees by the Borrower or any

 

73

 

Subsidiary Loan Party under this Section 6.01(m) of any other
Indebtedness of a person that is subordinated to other Indebtedness of such
person shall be expressly subordinated to the Obligations to the same extent as
the Guarantee of the Senior Subordinated Notes is under the Senior Subordinated
Note Indenture;

 

(n)           Indebtedness arising from agreements of
the Borrower or any Subsidiary providing for indemnification, adjustment of
purchase or acquisition price or similar obligations, in each case, incurred or
assumed in connection with the disposition of any business, assets or a
Subsidiary, other than Guarantees of Indebtedness incurred by any person
acquiring all or any portion of such business, assets or a Subsidiary for the
purpose of financing such acquisition;

 

(o)           letters of credit or bank guarantees (other than
Letters of Credit issued pursuant to Section 2.05) having an aggregate face
amount not in excess of $15 million;

 

(p)           Indebtedness supported by a Letter of
Credit, in a principal amount not in excess of the stated amount of such Letter
of Credit;

 

(q)           Indebtedness consisting of (x) the financing of
insurance premiums or (y) take-or-pay obligations contained in supply
arrangements, in each case, in the ordinary course of business;

 

(r)            unsecured Indebtedness consisting of
Permitted Debt Securities and Permitted Refinancing Indebtedness in respect
thereof;

 

(s)           Indebtedness of Foreign Subsidiaries in
an aggregate amount not to exceed $50 million outstanding at any time;

 

(t)            all premium (if any), interest
(including post-petition interest), fees, expenses, charges and additional or
contingent interest on obligations described in paragraphs (a) through (s)
above and paragraph (u) below;

 

(u)           Indebtedness in connection with Permitted Receivables
Financings; provided that the proceeds thereof
are applied in accordance with Section 2.11(b);

 

(v)           Cash Management Obligations and other
Indebtedness in respect of netting services, overdraft protection and similar
arrangements, in each case, in connection with cash management and deposit accounts;
and

 

(w)          Junior
Capital.

 

SECTION
6.02.  Liens.  Create, incur, assume or permit to exist any
Lien on any property or assets (including stock or other securities of any
person, including the Borrower and any Subsidiary) at the time owned by it or on
any income or revenues or rights in respect of any thereof, except:

 

(a)           Liens on property or assets of the
Borrower and the Subsidiaries existing on the Closing Date and set forth on Schedule
6.02(a) or, to the extent not listed in such Schedule, where such property
or assets have a fair market value that does not exceed $10 million in the
aggregate; provided that such Liens shall secure only those obligations
that they secure on the Closing Date (and extensions, renewals and refinancings
of such obligations permitted by Section 6.01(a)) and shall not subsequently
apply to any other property or assets of the Borrower or any Subsidiary;

 

74

 

(b)           any Lien created under the Loan
Documents or permitted in respect of any Mortgaged Property by the terms of the
applicable Mortgage;

 

(c)           any Lien on any property or asset of
the Borrower or any Subsidiary securing Indebtedness or Permitted Refinancing
Indebtedness permitted by Section 6.01(h), provided that such Lien (i)
does not apply to any other property or assets of the Borrower or any of the
Subsidiaries not securing such Indebtedness at the date of the acquisition of
such property or asset (other than after acquired property subjected to a Lien
securing Indebtedness and other obligations incurred prior to such date and
which Indebtedness and other obligations are permitted hereunder that require a
pledge of after acquired property, it being understood that such requirement
shall not be permitted to apply to any property to which such requirement would
not have applied but for such acquisition), (ii) such Lien is not created in
contemplation of or in connection with such acquisition and (iii) in the case
of a Lien securing Permitted Refinancing Indebtedness, any such Lien is
permitted, subject to compliance with clause (e) of the definition of the term “Permitted
Refinancing Indebtedness”;

 

(d)           Liens for Taxes, assessments or other
governmental charges or levies not yet delinquent or that are being contested in
compliance with Section 5.03;

 

(e)           landlord’s, carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s, construction or other like Liens
arising in the ordinary course of business and securing obligations that are
not overdue by more than 30 days or that are being contested in good faith by
appropriate proceedings and in respect of which, if applicable, the Borrower or
any Subsidiary shall have set aside on its books reserves in accordance with
GAAP;

 

(f)            (i) pledges and deposits made in the
ordinary course of business in compliance with the Federal Employers Liability
Act or any other workers’ compensation, unemployment insurance and other social
security laws or regulations and deposits securing liability to insurance
carriers under insurance or self-insurance arrangements in respect of such
obligations and (ii) pledges and deposits securing liability for reimbursement
or indemnification obligations of (including obligations in respect of letters
of credit or bank guarantees for the benefit of) insurance carriers providing
property, casualty or liability insurance to the Borrower or any Subsidiary;

 

(g)           deposits to secure the performance of
bids, trade contracts (other than for Indebtedness), leases (other than Capital
Lease Obligations), statutory obligations, surety and appeal bonds, performance
and return of money bonds, bids, leases, government contracts, trade contracts,
and other obligations of a like nature (including letters of credit in lieu of
any such bonds or to support the issuance thereof) incurred in the ordinary
course of business, including those incurred pursuant to Environmental Law in
the ordinary course of business;

 

(h)           zoning restrictions, easements,
trackage rights, leases (other than Capital Lease Obligations), licenses,
special assessments, rights-of-way, restrictions on use of real property and
other similar encumbrances incurred in the ordinary course of business that, in
the aggregate, do not interfere in any material respect with the ordinary
conduct of the business of the Borrower or any Subsidiary;

 

(i)            purchase money security interests in
equipment or other property or improvements thereto hereafter acquired (or, in
the case of improvements, constructed) by the Borrower or any Subsidiary
(including the interests of vendors and lessors under conditional sale and
title retention agreements); provided that (i) such security interests
secure Indebtedness

 

75

 

permitted by Section 6.01(i) (including any Permitted Refinancing
Indebtedness in respect thereof), (ii) such security interests are incurred,
and the Indebtedness secured thereby is created, within 270 days after such
acquisition, (iii) the Indebtedness secured thereby does not exceed 100% of the
cost of such equipment or other property or improvements at the time of such
acquisition or construction, including transaction costs incurred by the
Borrower or any Subsidiary in connection with such acquisition and (iv) such
security interests do not apply to any other property or assets of the Borrower
or any Subsidiary (other than to accessions to such equipment or other property
or improvements but not to other parts of the property to which any such
improvements are made); provided, further, that individual financings
of equipment provided by a single lender may be cross-collateralized to other
financings of equipment provided solely by such lender;

 

(j)            Liens arising out of capitalized lease
transactions permitted under Section 6.03, so long as such Liens attach only to
the property sold and being leased in such transaction and any accessions
thereto or proceeds thereof and related property;

 

(k)           Liens securing judgments that do not
constitute an Event of Default under Section 7.01(j), provided that such Liens,
to the extent that they secure aggregate amounts of more than $35 million,
shall be discharged within 60 days of the creation thereof;

 

(l)            Liens disclosed by the title insurance
policies delivered on or subsequent to the Closing Date and pursuant to Section
5.10 and any replacement, extension or renewal of any such Lien; provided
that such replacement, extension or renewal Lien shall not cover any property
other than the property that was subject to such Lien prior to such
replacement, extension or renewal; provided, further, that the
Indebtedness and other obligations secured by such replacement, extension or
renewal Lien are permitted by this Agreement;

 

(m)          any interest or title of a lessor under
any leases or subleases entered into by the Borrower or any Subsidiary in the
ordinary course of business;

 

(n)           Liens that are contractual rights of
set-off (i) relating to the establishment of depository relations with banks
not given in connection with the issuance of Indebtedness, (ii) relating to
pooled deposit or sweep accounts of the Borrower or any Subsidiary to permit
satisfaction of overdraft or similar obligations incurred in the ordinary
course of business of the Borrower or any Subsidiary or (iii) relating to
purchase orders and other agreements entered into with customers of the
Borrower or any Subsidiary in the ordinary course of business;

 

(o)           Liens arising solely by virtue of any
statutory or common law provision relating to banker’s liens, rights of set-off
or similar rights;

 

(p)           Liens securing obligations in respect
of trade-related letters of credit permitted under Section 6.01(f) or (o) and
covering the goods (or the documents of title in respect of such goods)
financed by such letters of credit and the proceeds and products thereof;

 

(q)           licenses of intellectual property
granted in a manner consistent with past practice;

 

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

 

76

 

(s)           Liens solely on any cash earnest money
deposits made by the Borrower or any of the Subsidiaries in connection with any
letter of intent or purchase agreement permitted hereunder;

 

(t)            Liens with respect to property or
assets of any Foreign Subsidiary securing Indebtedness of a Foreign Subsidiary
permitted under Section 6.01;

 

(u)           other Liens with respect to property or
assets of the Borrower or any Subsidiary; provided that such property
and assets shall have an aggregate fair market value (valued at the time of
creation of the Liens) of not more than $50 million at any time;

 

(v)           the prior rights of consignees and
their lenders under consignment arrangements entered into in the ordinary course
of business;

 

(w)          agreements to subordinate any interest
of the Borrower or any Subsidiary in any accounts receivable or other proceeds
arising from inventory consigned by the Borrower or any of its Subsidiaries
pursuant to an agreement entered into in the ordinary course of business;

 

(x)            Liens arising from precautionary UCC
financing statements regarding operating leases;

 

(y)           Liens on equity interests in joint
ventures securing obligations of such joint venture;

 

(z)            Liens on securities that are the
subject of repurchase agreements constituting Permitted Investments under
clause (c) of the definition thereof; and

 

(aa)         Liens in respect of Permitted Receivables Financings.

 

SECTION
6.03.  Sale and Lease-Back Transactions.  Enter into any arrangement, directly or
indirectly, with any person whereby it shall sell or transfer any property,
real or personal, used or useful in its business, whether now owned or
hereafter acquired, and thereafter rent or lease such property or other
property that it intends to use for substantially the same purpose or purposes
as the property being sold or transferred (a “Sale and Lease-Back
Transaction”), provided that a Sale and Lease-Back Transaction shall
be permitted (i) with respect to property (a) owned by the Borrower or any
Domestic Subsidiary that is acquired after the Closing Date so long as such
Sale and Lease-Back Transaction is consummated within 180 days of the
acquisition of such property or (b) by any Foreign Subsidiary regardless of
when such property was acquired or (ii) with respect to any property owned by
the Borrower or any Domestic Subsidiary, (a) if at the time the lease in
connection therewith is entered into, and after giving effect to the entering
into of such lease, the Remaining Present Value of such lease (together with
Indebtedness outstanding pursuant to paragraphs (h) and (i) of Section 6.01 and
the Remaining Present Value of outstanding leases previously entered into under
this Section 6.03(ii)) would not exceed the greater of $40 million and 4.0% of
Consolidated Total Assets as of the end of the fiscal quarter immediately prior
to the date the lease was entered into for which financial statements have been
delivered pursuant to Section 5.04 and (b) if such Sale and Lease-Back
Transaction is of property owned by the Borrower or any Domestic Subsidiary as
of the Closing Date, the Net Proceeds therefrom (to the extent exceeding $20
million after the Closing Date) are used to prepay the Term Loans to the extent
required by Section 2.11(b).

 

SECTION
6.04.  Investments, Loans and Advances.  Purchase, hold or acquire any Equity
Interests, evidences of Indebtedness or other securities of, make or permit to
exist any loans or

 

77

 

advances to or Guarantees
of the obligations of, or make or permit to exist any investment or any other
interest in (each, an “Investment”), in any other person, except:

 

(a)           the Transactions;

 

(b)           (i) Investments by the Borrower or any
Subsidiary in the Equity Interests of the Borrower or any Subsidiary; (ii)
intercompany loans from the Borrower or any Subsidiary to the Borrower or any
Subsidiary; and (iii) Guarantees by the Borrower or any Subsidiary Loan Party
of Indebtedness otherwise expressly permitted hereunder of the Borrower or any
Subsidiary; provided that the sum of (A) Investments (valued at the time
of the making thereof and without giving effect to any write-downs or
write-offs thereof) after the Closing Date by the Loan Parties pursuant to
clause (i) in Subsidiaries that are not Subsidiary Loan Parties, plus
(B) net intercompany loans after the Closing Date to Subsidiaries that are not
Subsidiary Loan Parties pursuant to clause (ii), plus (C) Guarantees of
Indebtedness after the Closing Date of Subsidiaries that are not Subsidiary
Loan Parties pursuant to clause (iii), shall not exceed an aggregate net amount
equal to (x) $35 million (plus any return of capital actually received
by the respective investors in respect of Investments theretofore made by them
pursuant to this paragraph (b)); plus (y) the portion, if any, of the
Available Investment Basket Amount on the date of such election that the
Borrower elects to apply to this Section 6.04(b)(y) plus (z) Capital
Expenditures expressly permitted by Section 6.10; and provided  further
that intercompany current liabilities incurred in the ordinary course of
business in connection with the cash management operations of the Borrower and
the Subsidiaries shall not be included in calculating the limitation in this
paragraph at any time.

 

(c)           Permitted Investments and investments
that were Permitted Investments when made;

 

(d)           Investments arising out of the receipt by the
Borrower or any Subsidiary of noncash consideration for the sale of assets permitted under Section 6.05;

 

(e)           (i) loans and advances to employees or
consultants of the Borrower or any Subsidiary in the ordinary course of
business not to exceed $5 million in the aggregate at any time outstanding
(calculated without regard to write-downs or write-offs thereof) and (ii)
advances of payroll payments and expenses to employees in the ordinary course
of business;

 

(f)            accounts receivable, security deposits
and prepayments arising and trade credit granted in the ordinary course of
business and any assets or securities received in satisfaction or partial
satisfaction thereof from financially troubled account debtors to the extent
reasonably necessary in order to prevent or limit loss and any prepayments and
other credits to suppliers made in the ordinary course of business;

 

(g)           Swap Agreements permitted pursuant to
Section 6.13;

 

(h)           Investments
existing on, or contractually committed as of, the Closing Date and set forth
on Schedule 6.04;

 

(i)            Investments resulting from pledges and deposits
referred to in Section 6.02(f) and
(g);

 

(j)            other Investments by the Borrower or
any Subsidiary in an aggregate amount (valued at the time of the making
thereof, and without giving effect to any write-downs or write-offs

 

78

 

thereof) not to exceed (i) the greater of $60 million and 6.0% of
Consolidated Total Assets as of the end of the fiscal quarter immediately prior
to the date of such incurrence for which financial statements have been
delivered pursuant to Section 5.04 (plus any returns of capital actually
received by the respective investor in respect of investments theretofore made
by it pursuant to this paragraph (j)) plus (ii) the portion, if any, of
the Available Investment Basket Amount on the date of such election that the
Borrower elects to apply to this Section 6.04(j)(ii);

 

(k)           Investments constituting Permitted
Business Acquisitions;

 

(l)            intercompany loans between Foreign
Subsidiaries and Guarantees permitted by Section 6.01(m);

 

(m)          Investments received in connection with
the bankruptcy or reorganization of, or settlement of delinquent accounts and
disputes with or judgments against, customers and suppliers, in each case in
the ordinary course of business;

 

(n)           Investments of a Subsidiary acquired
after the Closing Date or of a corporation merged into the Borrower or merged
into or consolidated with a Subsidiary in accordance with Section 6.05 after
the Closing Date to the extent that such Investments were not made in
contemplation of or in connection with such acquisition, merger or
consolidation and were in existence on the date of such acquisition, merger or
consolidation;

 

(o)           acquisitions by the Borrower of
obligations of one or more officers or other employees of Holdings, the
Borrower or its Subsidiaries in connection with such officer’s or employee’s
acquisition of Equity Interests of Holdings, so long as no cash is actually
advanced by the Borrower or any of the Subsidiaries to such officers or
employees in connection with the acquisition of any such obligations;

 

(p)           Guarantees by the Borrower or any
Subsidiary of operating leases (other than Capital Lease Obligations) or of
other obligations that do not constitute Indebtedness, in each case entered
into by the Borrower or any Subsidiary in the ordinary course of business; and

 

(q)           Investments arising as a result of Permitted
Receivables Financings; and

 

(r)            in addition to the investments
otherwise permitted by this Section, any investment by the Borrower or any
Subsidiary to the extent it is financed with the proceeds of an issuance of
Junior Capital not later than six months after the receipt of such proceeds by
Holdings or the Borrower.

 

SECTION
6.05.  Mergers, Consolidations, Sales of Assets
and Acquisitions.  Merge into
or consolidate with any other person, or permit any other person to merge into
or consolidate with it, or sell, transfer, lease or otherwise dispose of (in
one transaction or in a series of transactions) all or any part of its assets
(whether now owned or hereafter acquired), or issue, sell, transfer or
otherwise dispose of any Equity Interests of the Borrower or any Subsidiary, or
purchase, lease or otherwise acquire (in one transaction or a series of
transactions) all or any substantial part of the assets of any other person,
except that this Section shall not prohibit:

 

(a)           (i)            the
purchase and sale of inventory in the ordinary course of business by the
Borrower or any Subsidiary, (ii) the acquisition or lease (pursuant to an
operating lease) of any other asset in the ordinary course of business by the
Borrower or any Subsidiary, (iii) the sale of surplus,

 

79

 

obsolete or worn out equipment or other property in
the ordinary course of business by the Borrower or any Subsidiary or (iv) the
sale of Permitted Investments in the ordinary course of business;

 

(b)           if at the time thereof and
immediately after giving effect thereto no Event of Default shall have occurred
and be continuing, (i) the merger of any Subsidiary into the Borrower in a
transaction in which the Borrower is the survivor, (ii) the merger or
consolidation of any Subsidiary into or with any Subsidiary Loan Party in a
transaction in which the surviving or resulting entity is a Subsidiary Loan
Party and, in the case of each of clauses (i) and (ii), no person other than
the Borrower or Subsidiary Loan Party receives any consideration, (iii) the
merger or consolidation of any Subsidiary that is not a Subsidiary Loan Party
into or with any other Subsidiary that is not a Subsidiary Loan Party or (iv)
the liquidation or dissolution or change in form of entity of any Subsidiary
(other than the Borrower) if the Borrower determines in good faith that
such liquidation or dissolution is in the best interests of the Borrower and is
not materially disadvantageous to the Lenders;

 

(c)           sales, transfers, leases or other
dispositions to the Borrower or a Subsidiary (upon voluntary liquidation or
otherwise); provided that any sales, transfers, leases or other
dispositions by a Loan Party to a Subsidiary that is not a Subsidiary Loan
Party shall be made in compliance with Section 6.07; provided, further
that the aggregate gross proceeds of any sales, transfers, leases or other
dispositions by a Loan Party to a Subsidiary that is not a Subsidiary Loan
Party in reliance upon this paragraph (c) shall not exceed, in any fiscal year
of the Borrower, $35 million;

 

(d)           Sale and Lease-Back Transactions
permitted by Section 6.03;

 

(e)           Investments permitted by Section
6.04, Liens permitted by Section 6.02 and Dividends permitted by Section 6.06;

 

(f)            the sale of defaulted receivables in
the ordinary course of business and not as part of an accounts receivables
financing transaction;

 

(g)           sales,
transfers, leases or other dispositions of assets not otherwise permitted by this Section 6.05; provided that
the aggregate gross proceeds (including noncash proceeds) of any or all assets
sold, transferred, leased or otherwise disposed of in reliance upon this
paragraph (g) shall not exceed, in any fiscal year of the Borrower, the greater
of $100 million and 10.0% of Consolidated Total Assets as of the end of the
fiscal quarter immediately prior to the date of such incurrence for which
financial statements have been delivered pursuant to Section 5.04; provided,
further, that the Net Proceeds thereof are applied in accordance with
Section 2.11(b);

 

(h)           any merger or consolidation in
connection with a Permitted Business Acquisition, provided that
following any such merger or consolidation (i) involving the Borrower, the
Borrower is the surviving corporation, (ii) involving a Domestic Subsidiary,
the surviving or resulting entity shall be a Subsidiary Loan Party that is a
Wholly Owned Subsidiary and (iii) involving a Foreign Subsidiary, the surviving
or resulting entity shall be a Wholly Owned Subsidiary;

 

(i)            licensing and cross-licensing
arrangements involving any technology or other intellectual property of the
Borrower or any Subsidiary in the ordinary course of business;

 

(j)            sales, leases or other dispositions
of inventory of the Borrower and its Subsidiaries determined by the management
of the Borrower to be no longer useful or necessary in the operation of the
business of the Borrower or any of the Subsidiaries; and

 

80

 

(k)           the purchase and sale or other
transfer (including by capital contribution) of Receivables Assets pursuant to
Permitted Receivables Financings; provided that the Net Proceeds thereof
are applied in accordance with Section 2.11(b).

 

Notwithstanding anything to the contrary contained
in Section 6.05 above, (i) no sale, transfer or other disposition of assets
in excess of $3.5 million shall be permitted by this Section 6.05 (other than
sales, transfers, leases or other dispositions to Loan Parties pursuant to
paragraph (c) hereof) unless such disposition is for fair market value, (ii) no
sale, transfer or other disposition of assets shall be permitted by paragraph
(a) or (d) of this Section 6.05 unless such disposition is for at least 75% cash
consideration and (iii) no sale, transfer or other disposition of assets in
excess of $3.5 million shall be permitted by paragraph (g) of this Section 6.05
unless such disposition is for at least 75% cash consideration; provided
that for purposes of clauses (ii) and (iii), the
amount of any secured Indebtedness or other Indebtedness of a Subsidiary that
is not a Loan Party (as shown on the Borrower’s or such Subsidiary’s most
recent balance sheet or in the notes thereto) of the Borrower or any Subsidiary
of the Borrower that is assumed by the transferee of any such assets shall be
deemed to be cash.

 

SECTION
6.06.  Dividends and Distributions.  Declare or pay, directly or indirectly, any
dividend or make any other distribution (by reduction of capital or otherwise),
whether in cash, property, securities or a combination thereof, with respect to
any of its Equity Interests (other than dividends and distributions on Equity
Interests payable solely by the issuance of additional Equity Interests of the
person paying such dividends or distributions) or directly or indirectly
redeem, purchase, retire or otherwise acquire for value (or permit any
Subsidiary to purchase or acquire) any of its Equity Interests or set aside any
amount for any such purpose (other than through the issuance of additional
Equity Interests of the person redeeming, purchasing, retiring or acquiring
such shares); provided, however, that:

 

(a)           any Subsidiary of the Borrower may
declare and pay dividends to, repurchase its Equity Interests from or make
other distributions to the Borrower or to any Wholly Owned Subsidiary of the
Borrower (or, in the case of non-Wholly Owned Subsidiaries, to the Borrower or
any Subsidiary that is a direct or indirect parent of such Subsidiary and to
each other owner of Equity Interests of such Subsidiary on a pro rata
basis (or more favorable basis from the perspective of the Borrower or such
Subsidiary) based on their relative ownership interests);

 

(b)           the Borrower may declare and pay
dividends or make other distributions to Holdings in respect of (i) overhead,
tax liabilities of the Borrower and its Subsidiaries in accordance with the Tax
Sharing Agreement, legal, accounting and other professional fees and expenses,
(ii) fees and expenses related to any equity offering, investment or
acquisition permitted hereunder (whether or not successful) and (iii) other
fees and expenses in connection with the maintenance of its existence and its
ownership of the Borrower and in order to permit Holdings to make payments permitted
by Section 6.07(b) and (c);

 

(c)           the Borrower may declare and pay
dividends or make other distributions to Holdings the proceeds of which are
used to purchase or redeem the Equity Interests of Holdings (including related
stock appreciation rights or similar securities) held by then present or former
directors, consultants, officers or employees of Holdings, the Borrower or any
of the Subsidiaries or by any Plan upon such person’s death, disability,
retirement or termination of employment or under the terms of any such Plan or
any other agreement under which such shares of stock or related rights were
issued, provided that the aggregate amount of such purchases or
redemptions under this paragraph (c) shall
not exceed in any fiscal year $10 million (plus the amount of net
proceeds (x) received by Holdings during such
calendar year from sales of Equity Interests of Holdings to directors,
consultants, officers or employees of Holdings, the Borrower or any
Subsidiary in connection with permitted employee compensation and

 

81

 

incentive arrangements and (y) of any key-man life
insurance policies received during such calendar year), which, if not used in
any year, may be carried forward to any subsequent calendar year;

 

(d)           noncash repurchases of Equity
Interests deemed to occur upon exercise of stock options if such Equity
Interests represent a portion of the exercise price of such options; and

 

(e)           the Borrower may pay dividends to
Holdings to permit Holdings to pay dividends and make distributions to, or to
repurchase or redeem shares from, its equity holders in an aggregate amount
equal to (i) $40 million (minus any amounts utilized pursuant to Section
6.09(b)(i)(C)(1)) plus (ii) the portion, if any, of the Available
Investment Basket Amount on the date of such election that the Borrower elects
to apply to this Section 6.06(e)(ii); provided that, with respect to
clause (ii), at the time of such dividend or distribution and after giving
effect thereto and to any borrowing in connection therewith, the Senior Secured
Leverage Ratio of the Borrower on a Pro Forma Basis does not exceed 1.75:1.00
and no Default or Event of Default has occurred and is continuing.

 

SECTION
6.07.  Transactions with Affiliates.  (a)   Sell or transfer any property or assets to,
or purchase or acquire any property or assets from, or otherwise engage in any
other transaction with, any of its Affiliates or any known direct or indirect
holder of 10% or more of any class of capital stock of Holdings, unless such
transaction is (i) otherwise permitted (or required) under this Agreement
(including in connection with any Permitted Receivables Financing) or (ii) upon
terms no less favorable to the Borrower or such Subsidiary, as applicable, than
would be obtained in a comparable arm’s-length transaction with a person that
is not an Affiliate; provided that this clause (ii) shall not apply to
(A) the payment to the Permitted Investors of the monitoring and management
fees referred to in paragraph (c) below or fees payable on the Closing Date or
(B) the indemnification of directors of Holdings, the Borrower and the
Subsidiaries in accordance with customary practice.

 

(b)
  The foregoing paragraph (a) shall not prohibit, to the
extent otherwise permitted under this Agreement,

 

(i)            any
issuance of securities, or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment arrangements, stock
options and stock ownership plans approved by the board of directors of
Holdings,

 

(ii)           loans
or advances to employees or consultants of Holdings, the Borrower or any of the
Subsidiaries in accordance with Section 6.04(e),

 

(iii)          transactions
among the Borrower and the Subsidiary Loan Parties and transactions among the
Subsidiary Loan Parties otherwise permitted by this Agreement,

 

(iv)          the
payment of fees and indemnities to directors, officers, consultants and
employees of Holdings, the Borrower and the Subsidiaries in the ordinary course
of business,

 

(v)           transactions
pursuant to the Transaction Documents and permitted agreements in existence on
the Closing Date and set forth on Schedule 6.07 or any amendment thereto
to the extent such amendment is not adverse to the Lenders in any material
respect,

 

(vi)          (A)
any employment agreements entered into by the Borrower or any of the
Subsidiaries in the ordinary course of business, (B) any subscription agreement
or similar agreement pertaining to the repurchase of Equity Interests pursuant
to put/call rights or similar rights with employees, officers or directors, and
(C) any employee compensation, benefit plan or

 

82

 

arrangement, any health, disability or similar insurance plan which
covers employees, and any reasonable employment contract and transactions
pursuant thereto,

 

(vii)         dividends,
redemptions and repurchases permitted under Section 6.06,

 

(viii)        any
purchase by Holdings of or contributions to, the equity capital of the
Borrower; provided that any Equity Interests of the Borrower purchased
by Holdings shall be pledged to the Administrative Agent on behalf of the
Lenders pursuant to the Collateral Agreement,

 

(ix)           payments
by the Borrower or any of the Subsidiaries to the Permitted Investors made for
any financial advisory, financing, underwriting or placement services or in
respect of other investment banking activities, including in connection with
acquisitions or divestitures, which payments are approved by the majority of
the board of directors of the Borrower, in good faith,

 

(x)            transactions
with Wholly Owned Subsidiaries for the purchase or sale of goods, products,
parts and services entered into in the ordinary course of business in a manner
consistent with past practice,

 

(xi)           any
transaction in respect of which the Borrower delivers to the Administrative
Agent (for delivery to the Lenders) a letter addressed to the board of
directors of the Borrower from an accounting, appraisal or investment banking
firm, in each case of nationally recognized standing that is (A) in the good
faith determination of the Borrower qualified to render such letter and (B)
reasonably satisfactory to the Administrative Agent, which letter states that
such transaction is on terms that are no less favorable to the Borrower or such
Subsidiary, as applicable, than would be obtained in a comparable arm’s-length
transaction with a person that is not an Affiliate,

 

(xii)          subject
to paragraph (c) below, the payment of all fees, expenses, bonuses and awards
related to the Transactions contemplated by the Transaction Documents,
including fees to the Permitted Investors,

 

(xiii)         transactions
with joint ventures for the purchase or sale of goods, equipment and services
entered into in the ordinary course of business and in a manner consistent with
past practice, or

 

(xiv)        transactions pursuant to any Permitted Receivables
Financing.

 

(c)   Make
any payment of or on account of monitoring or management or similar fees
payable to the Permitted Investors in an aggregate amount in any fiscal year in
excess of the sum of (i) the greater of $2 million and 2.0% of Consolidated
EBITDA, plus reasonable out-of-pocket costs and expenses in connection
therewith and unpaid amounts accrued for prior periods; plus (ii) any
deferred fees (to the extent such fees were within such amount in clause (i)
above originally), plus (iii) 2.0% of the value of transactions with
respect to which the Permitted Investors provide any transaction, advisory or
other services, plus (iv) a transaction fee of not more than $10 million
to be paid to the Permitted Investors in connection with the Transactions.

 

SECTION
6.08.  Business of the Borrower and the
Subsidiaries.  Notwithstanding
any other provisions hereof, engage at any time in any business or business
activity other than:

 

83

 

(a)           in the case of the Borrower and any
Subsidiary, any business or business activity conducted by any of them on the
Closing Date and any business or business activities incidental or related
thereto, or any business or activity that is reasonably similar thereto or a
reasonable extension, development or expansion thereof or ancillary thereto, or

 

(b)           in the case of a Special Purpose
Receivables Subsidiary, Permitted Receivables Financings.

 

SECTION 6.09.  Limitation on Modifications of
Indebtedness; Modifications of Certificate of Incorporation, By-Laws and
Certain Other Agreements; etc.  (a)   Amend or modify in any manner materially
adverse to the Lenders, or grant any waiver or release under or terminate in
any manner (if such granting or termination shall be materially adverse to the
Lenders), the articles or certificate of incorporation or by-laws or limited
liability company operating agreement of the Borrower or any of the
Subsidiaries or the Acquisition Agreement.

 

(b)   (i)  Make, or agree or offer to pay or make,
directly or indirectly, any payment or other distribution (whether in cash,
securities or other property) of or in respect of principal of or interest on
the Senior Subordinated Notes or any Permitted Debt Securities or any Permitted
Refinancing Indebtedness in respect thereof, or any payment or other
distribution (whether in cash, securities or other property), including any
sinking fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of the Senior Subordinated Notes or
any Permitted Debt Securities or any Permitted Refinancing Indebtedness in
respect thereof (except for Refinancings permitted by Section 6.01(l) or (r)),
except for payments of regularly scheduled interest, and, to the extent this
Agreement is then in effect, principal on the scheduled maturity date thereof; provided,
however, that the Borrower may at any time and from time to time
repurchase, redeem, acquire, cancel or terminate all or any portion of the
Senior Subordinated Notes or Permitted Debt Securities with the proceeds
contributed to the Borrower by Holdings from the issuance, sale or exchange by
Holdings of its Equity Interests or with the proceeds of the substantially contemporaneous
issuance of Equity Interests of Holdings, so long as such proceeds are not
included in any determination of the Available Investment Basket Amount, or as
contemplated by Section 7.03 and provided, further,  that Senior
Subordinated Notes may be repurchased so long as (A) before and after giving
effect to such repurchase, no Default or Event of Default shall have occurred
or be continuing, (B) after giving effect to such repurchase, the Senior
Secured Leverage Ratio for the most recently completed fiscal quarters of the
Borrower calculated on a Pro Forma Basis is not more than 2.00 to 1.00 and (C)
the aggregate principal amount of such repurchases shall not exceed the sum of
(1) $60 million (minus any amounts utilized pursuant to Section 6.06(e)(i)) plus
(2) the aggregate Available Investment Basket Amount.; or

 

(ii)           Amend or modify, or permit the
amendment or modification of, any provision of the Senior Subordinated Notes,
or any Permitted Debt Securities or any Permitted Refinancing Indebtedness in
respect thereof, or any Permitted
Receivables Document or any agreement (including any document relating
to the Senior Subordinated Notes or any Permitted Debt Securities or any
Permitted Refinancing Indebtedness in respect thereof) relating thereto, other
than amendments or modifications that are not in any manner materially adverse
to Lenders and that do not affect the subordination provisions thereof (if any)
in a manner adverse to the Lenders.

 

(c)   Permit
any Subsidiary to enter into any agreement or instrument that by its terms
restricts (i) the payment of dividends or distributions or the making of cash
advances to Holdings, the Borrower or any Subsidiary that is a direct or
indirect parent of any Subsidiary or (ii) the granting of Liens pursuant to the
Security Documents, in each case other than those arising under any Loan
Document, except, in each case, restrictions existing by reason of:

 

84

 

(A)          restrictions
imposed by applicable law;

 

(B)           contractual
encumbrances or restrictions in effect on the Closing Date (including under the
Senior Subordinated Note Documents) or any agreements related to any permitted
renewal, extension or refinancing of any Indebtedness existing on the Closing
Date that does not expand the scope of any such encumbrance or restriction;

 

(C)           any
restriction on a Subsidiary imposed pursuant to an agreement entered into for
the sale or disposition of all or substantially all the Equity Interests or
assets of a Subsidiary pending the closing of such sale or disposition;

 

(D)          customary
provisions in joint venture agreements and other similar agreements applicable
to joint ventures entered into in the ordinary course of business;

 

(E)           any
restrictions imposed by any agreement relating to secured Indebtedness
permitted by this Agreement to the extent that such restrictions apply only to
the property or assets securing such Indebtedness;

 

(F)           customary
provisions contained in leases or licenses of intellectual property and other
similar agreements entered into in the ordinary course of business;

 

(G)           customary
provisions restricting subletting or assignment of any lease governing a
leasehold interest;

 

(H)          customary
provisions restricting assignment of any agreement entered into in the ordinary
course of business;

 

(I)            customary
restrictions and conditions contained in any agreement relating to the sale of
any asset permitted under Section 6.05 pending the consummation of such sale;

 

(J)            customary
restrictions and conditions contained in the document relating to any Lien, so
long as (1) such Lien is permitted under Section 6.02 and such restrictions or
conditions relate only to the specific asset subject to such Lien, and (2) such
restrictions and conditions are not create for the purpose of avoiding the
restrictions imposed by this Section 6.09;

 

(K)          customary
net worth provisions contained in real property leases entered into by
Subsidiaries of the Borrower, so long as the Borrower has determined in good
faith that such net worth provisions could not reasonably be expected to impair
the ability of the Borrower and its Subsidiaries to meet their ongoing
obligations;

 

(L)           any agreement in effect at the time such
subsidiary becomes a Subsidiary, so long as such agreement was not
entered into in contemplation of such person becoming a Subsidiary;

 

(M)         restrictions contained in any Permitted Receivables
Document with respect to any Special Purpose Receivables Subsidiary; or

 

(N)          restrictions
contained in any documents documenting Indebtedness of any Foreign Subsidiary
permitted hereunder.

 

85

 

SECTION 6.10.  Maximum Capital Expenditures.  (a)  The Borrower will not, nor will it permit any
Subsidiary to, incur or make any Capital Expenditures during any fiscal year,
in an amount exceeding $35.0 per annum.

 

(b)
 The amount of Capital Expenditures permitted to be made in
respect of any fiscal year shall be increased by the unused amount of Capital
Expenditures that were permitted to be made during the immediately preceding
fiscal year pursuant to Section 6.10(a). 
Capital Expenditures in any fiscal year shall be deemed to use, first,
any amount carried forward to such fiscal year pursuant to this
Section 6.10(b), and second, the amount for such fiscal year set
forth in Section 6.10(a).

 

(c)
 The amount of Capital Expenditures permitted to be made in
respect of any fiscal year shall be increased, after the consummation of any
Permitted Business Acquisition, in an amount equal to 110% of the average
annual amount of capital expenditures made by the person or business so
acquired, as shown in the financial statements of such person or business,
during the two fiscal years preceding such acquisition.

 

SECTION 6.11.  Interest Coverage Ratio.  Permit the ratio (the “Interest Coverage
Ratio”) on the last day of any fiscal quarter occurring in any period set forth
below, for the four quarter period ended as of such day of (a) EBITDA to (b)
Cash Interest Expense to be less than the ratio set forth below for such
period; provided that the Interest Coverage Ratio shall be determined
for the relevant Test Period on a Pro Forma Basis.

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
  March 31, 2005 –
  December 31, 2005

  	
   

  	
  1.75 to 1.00

  	
   

  
	
  March 31, 2006 –
  December 31, 2006

  	
   

  	
  2.00 to 1.00

  	
   

  
	
  March 31, 2007 –
  December 31, 2007

  	
   

  	
  2.25 to 1.00

  	
   

  
	
  March 31, 2008 –
  December 31, 2008

  	
   

  	
  2.50 to 1.00

  	
   

  
	
  March 31, 2009
  and thereafter

  	
   

  	
  2.75 to 1.00

  	
   

  

 

SECTION 6.12.  Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio on the
last day of any fiscal quarter occurring in any period set forth below, to be
in excess of the ratio set forth below for such period.

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
  March 31, 2005 –
  December 31, 2005

  	
   

  	
  6.75 to 1.00

  	
   

  
	
  March 31, 2006 –
  December 31, 2006

  	
   

  	
  6.50 to 1.00

  	
   

  
	
  March 31, 2007 –
  December 31, 2007

  	
   

  	
  5.50 to 1.00

  	
   

  
	
  March 31, 2008 –
  December 31, 2008

  	
   

  	
  4.75 to 1.00

  	
   

  
	
  March 31, 2009
  and thereafter

  	
   

  	
  4.00 to 1.00

  	
   

  

 

SECTION 6.13.  Swap Agreements.  Enter into any Swap Agreement, other than (a)
Swap Agreements required by any Permitted Receivables Financing, (b) Swap
Agreements entered into in the ordinary course of business to hedge or mitigate
risks to which the Borrower or any Subsidiary is exposed in the conduct of its
business or the management of its liabilities (including, without limitation,
raw material, supply costs and currency risks), and (c) Swap Agreements entered
into in order to effectively cap, collar or exchange interest rates (from fixed
to floating rates, from one floating rate to another floating rate or
otherwise) with respect to any interest-bearing liability or investment of the
Borrower or any Subsidiary.

 

86

 

SECTION 6.14.  No Other “Designated Senior Indebtedness”.  Except for Indebtedness permitted under the
provisions of Section 6.01(h) or (l), the Borrower shall not designate, or
permit the designation of, any Indebtedness (other than under this Agreement or
the other Loan Documents) as “Designated Senior Indebtedness” or any other
similar term for the purpose of the definition of the same or the subordination
provisions contained in the Senior Subordinated Note Indenture or any indenture
governing the Permitted Debt Securities that are senior subordinated notes or
any Permitted Refinancing thereof or of the Senior Subordinated Notes.

 

ARTICLE VIA

 

Holdings
Negative Covenants

 

Holdings covenants
and agrees with each Lender that, so long as this Agreement shall remain in
effect and until the Commitments have been terminated and the principal of and
interest on each Loan, all Fees and all other expenses or amounts payable under
any Loan Document have been paid in full and all Letters of Credit have been
canceled or have expired and all amounts drawn thereunder have been reimbursed
in full, unless the Required Lenders shall otherwise consent in writing,
Holdings will not:

 

SECTION 6A.01.  Business
of Holdings.  Engage at any time in
any business or business activity other than (a) ownership and acquisition of
Equity Interests in the Borrower, together with activities directly related
thereto, (b) performance of its obligations under and in connection with the
Loan Documents, the Acquisition Documents, the Senior Subordinated Note
Documents (and Permitted Refinancing Indebtedness in respect thereof) and the
other agreements contemplated hereby and thereby, (c) actions incidental to the
consummation of the Transactions, (d) the incurrence of and performance of its
obligations related to Indebtedness and Guarantees incurred by Holdings after
the Closing Date, (e) actions required by law to maintain its existence, (f)
the payment of dividends and taxes, (g) the issuance of Equity Interests and
Junior Capital and (h) activities incidental to its maintenance and continuance
and to the foregoing activities.

 

Notwithstanding
anything to the contrary contained in herein, (i) Holdings shall at all times
own directly 100% of the Equity Interests of the Borrower and (ii) Holdings shall not sell,
dispose of, grant a Lien on or otherwise transfer such Equity Interests in the
Borrower.

 

ARTICLE VII

 

Events of
Default

 

SECTION 7.01.  Events of Default.  In case of the happening of any of the following
events (each, an “Event of Default”):

 

(a)           any representation or warranty made
or deemed made by Holdings, the Borrower or any other Loan Party in any Loan
Document, or any representation, warranty, statement or information contained
in any report, certificate, financial statement or other instrument furnished
in connection with or pursuant to any Loan Document, shall prove to have been
false or misleading in any material respect when so made, deemed made or
furnished by Holdings, the Borrower or any other Loan Party;

 

(b)           default shall be made in the payment
of any principal of any Loan or the reimbursement with respect to any L/C
Disbursement when and as the same shall become due and

 

87

 

payable,
whether at the due date thereof or at a date fixed for prepayment thereof or by
acceleration thereof or otherwise;

 

(c)           default shall be made in the payment
of any interest on any Loan or on any L/C Disbursement or in the payment of any
Fee or any other amount (other than an amount referred to in (b) above) due
under any Loan Document, when and as the same shall become due and payable, and
such default shall continue unremedied for a period of five Business Days;

 

(d)           default shall be made in the due
observance or performance by Holdings, the Borrower or any of the Subsidiaries
of any covenant, condition or agreement contained in Section 5.01(a) (with
respect to Holdings or the Borrower), 5.05(a), 5.08 or in Article VI;

 

(e)           default shall be made in the due observance
or performance by Holdings, the Borrower or any of the Subsidiaries of any
covenant, condition or agreement contained in any Loan Document (other than
those specified in paragraphs (b), (c) and (d) above) and such default shall
continue unremedied for a period of 30 days after notice thereof from the
Administrative Agent or the Required Lenders to the Borrower;

 

(f)            (i) any event or condition occurs
that (A) results in any Material Indebtedness becoming due prior to its
scheduled maturity or (B) enables or permits (with all applicable grace periods
having expired) the holder or holders of any Material Indebtedness or any
trustee or agent on its or their behalf to cause any Material Indebtedness to
become due, or to require the prepayment, repurchase, redemption or defeasance
thereof, prior to its scheduled maturity or (ii) Holdings, the Borrower or any
of the Subsidiaries shall fail to pay the principal of any Material
Indebtedness at the stated final maturity thereof; provided that this
clause (f) shall not apply to secured Indebtedness that becomes due as a result
of the voluntary sale or transfer of the property or assets securing such
Indebtedness if such sale or transfer is permitted hereunder and under the
documents providing for such Indebtedness;

 

(g)           there shall have
occurred a Change in Control;

 

(h)           an involuntary proceeding shall be
commenced or an involuntary petition shall be filed in a court of competent
jurisdiction seeking (i) relief in respect of Holdings, the Borrower or any
of the Subsidiaries, or of a substantial part of the property or assets of
Holdings, the Borrower or any Subsidiary, under Title 11 of the United States
Code, as now constituted or hereafter amended, or any other federal, state or
foreign bankruptcy, insolvency, receivership or similar law, (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for Holdings, the Borrower or any of the Subsidiaries or for a
substantial part of the property or assets of Holdings, the Borrower or any of
the Subsidiaries or (iii) the winding-up or liquidation of Holdings, the
Borrower or any Subsidiary (except, in the case of any Subsidiary, in a
transaction permitted by Section 6.05); and such proceeding or petition shall
continue undismissed for 60 days or an order or decree approving or ordering
any of the foregoing shall be entered;

 

(i)            Holdings, the Borrower or any
Subsidiary shall (i) voluntarily commence any proceeding or file any petition
seeking relief under Title 11 of the United States Code, as now constituted or
hereafter amended, or any other federal, state or foreign bankruptcy,
insolvency, receivership or similar law, (ii) consent to the institution of, or
fail to contest in a timely and appropriate manner, any proceeding or the
filing of any petition described in paragraph (h) above, (iii) apply for or
consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for Holdings, the Borrower or any of the
Subsidiaries or for a substantial part of the property or assets of Holdings,
the Borrower or any Subsidiary, (iv) file an answer admitting the material
allegations of a petition filed against it in any such

 

88

 

proceeding,
(v) make a general assignment for the benefit of creditors or (vi) become
unable or admit in writing its inability or fail generally to pay its debts as
they become due;

 

(j)            the failure by Holdings, the
Borrower or any Subsidiary to pay one or more final judgments aggregating in
excess of $15 million (to the extent not covered by insurance), which judgments
are not discharged or effectively waived or stayed for a period of 45
consecutive days, or any action shall be legally taken by a judgment creditor
to levy upon assets or properties of Holdings, the Borrower or any Subsidiary
to enforce any such judgment;

 

(k)           (i) a Reportable Event or Reportable
Events shall have occurred with respect to any Plan or a trustee shall be
appointed by a United States district court to administer any Plan, (ii) the
PBGC shall institute proceedings (including giving notice of intent thereof) to
terminate any Plan or Plans, (iii) Holdings, the Borrower or any Subsidiary or
any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer
Plan that it has incurred or will be assessed Withdrawal Liability to such
Multiemployer Plan and such person does not have reasonable grounds for
contesting such Withdrawal Liability or is not contesting such Withdrawal
Liability in a timely and appropriate manner, (iv) Holdings, the Borrower or
any Subsidiary or any ERISA Affiliate shall have been notified by the sponsor
of a Multiemployer Plan that such Multiemployer Plan is in reorganization or is
being terminated, within the meaning of Title IV of ERISA or (v) Holdings, the
Borrower or any Subsidiary shall engage in any “prohibited transaction” (as
defined in Section 406 of ERISA or Section 4975 of the Code) involving any
Plan; and in each case in clauses (i) through (v) above, such event or condition,
together with all other such events or conditions, if any, could reasonably be
expected to have a Material Adverse Effect; or

 

(l)            (i) any Loan Document shall for any
reason be asserted in writing by Holdings, the Borrower or any Subsidiary not to
be a legal, valid and binding obligation of any party thereto, (ii) any
security interest purported to be created by any Security Document and to
extend to assets that are not immaterial to Holdings, the Borrower and the
Subsidiaries on a consolidated basis shall cease to be, or shall be asserted in
writing by the Borrower or any other Loan Party not to be, a valid and
perfected security interest (perfected as or having the priority required by
this Agreement or the relevant Security Document and subject to such
limitations and restrictions as are set forth herein and therein) in the
securities, assets or properties covered thereby, or from the failure of the
Administrative Agent to maintain possession of certificates actually delivered
to it representing securities pledged under the Collateral Agreement or to file
Uniform Commercial Code continuation statements or take the actions described
on Schedule 3.04 and except to the extent that such loss is covered by a
lender’s title insurance policy and the Administrative Agent shall be
reasonably satisfied with the credit of such insurer, (iii) the Guarantees
pursuant to the Security Documents by Holdings, the Borrower or the Subsidiary
Loan Parties of any of the Obligations shall cease to be in full force and effect
(other than in accordance with the terms thereof), or shall be asserted in
writing by Holdings or the Borrower or any Subsidiary Loan Party not to be in
effect or not to be legal, valid and binding obligations, or (iv) the
Obligations of the Borrower or the Guarantees pursuant to the Security
Documents by Holdings, the Borrower or the Subsidiary Loan Parties shall cease
to constitute senior indebtedness under the subordination provisions of the
Senior Subordinated Note Documents or such subordination provisions shall be
invalidated or otherwise cease, or shall be asserted in writing by Holdings,
the Borrower or any Subsidiary Loan Party to be invalid or to cease to be
legal, valid and binding obligations of the parties thereto, enforceable in
accordance with their terms;

 

then, and in every such
event (other than an event with respect to the Borrower described in paragraph
(h) or (i) above), and at any time thereafter during the continuance of such
event, the Administrative Agent, at the request of the Required Lenders, shall,
upon notice to the Borrower, take any or all of the following actions, at the
same or different times: (i) terminate forthwith the Commitments, (ii) declare
the Loans then outstanding to be forthwith due and payable in whole or in part,
whereupon the principal of the

 

89

 

Loans so declared to be due
and payable, together with accrued interest thereon and any unpaid accrued Fees
and all other liabilities of the Borrower accrued hereunder and under any other
Loan Document, shall become forthwith due and payable, without presentment,
demand, protest or any other notice of any kind, all of which are hereby
expressly waived by the Borrower, anything contained herein or in any other
Loan Document to the contrary notwithstanding and (iii) if the Loans have been
declared due and payable pursuant to clause (ii) above, demand cash collateral
pursuant to Section 2.05(j); and in any event with respect to the Borrower
described in paragraph (h) or (i) above, the Commitments shall automatically
terminate, the principal of the Loans then outstanding, together with accrued
interest thereon and any unpaid accrued Fees and all other liabilities of the
Borrower accrued hereunder and under any other Loan Document, shall
automatically become due and payable and the Administrative Agent shall be
deemed to have made a demand for cash collateral to the full extent permitted
under Section 2.05(j), without presentment, demand, protest or any other notice
of any kind, all of which are hereby expressly waived by the Borrower, anything
contained herein or in any other Loan Document to the contrary notwithstanding.

 

SECTION 7.02.  Exclusion of Immaterial Subsidiaries.  Solely for the purposes of determining
whether an Event of Default has occurred under clause (h), (i) or (l) of
Section 7.01, any reference in any such clause to any Subsidiary shall be
deemed not to include any Subsidiary affected by any event or circumstance
referred to in any such clause that did not, as of the last day of the fiscal
quarter of the Borrower most recently ended, have assets with a value in excess
of 5% of the Consolidated Total Assets or 5% of total revenues of Holdings, the
Borrower and the Subsidiaries as of such date;
provided that if it is necessary to exclude more than one Subsidiary from
clause (h), (i) or (l) of Section 7.01 pursuant to this Section 7.02 in order
to avoid an Event of Default thereunder, all excluded Subsidiaries shall be
considered to be a single consolidated Subsidiary for purposes of determining
whether the condition specified above is satisfied.

 

SECTION 7.03.  Holdings’ Right to Cure.

 

(a)  Notwithstanding anything to the contrary
contained in Section 7.01, in the event that the Borrower fails to comply with
the requirements of any Financial Performance Covenant, until the expiration of
the 10th day subsequent to the date the certificate calculating such Financial
Performance Covenant is required to be delivered pursuant to Section 5.04(c),
Holdings shall have the right to issue Permitted Cure Securities for cash or
otherwise receive cash contributions to the capital of Holdings, and, in each
case, to contribute any such cash to the capital of the Borrower (collectively,
the “Cure Right”), and upon the receipt by the Borrower of such cash
(the “Cure Amount”) pursuant to the exercise by Holdings of such Cure
Right such Financial Performance Covenant shall be recalculated giving effect
to the following pro forma adjustments:

 

(i)            EBITDA
shall be increased, solely for the purpose of measuring the Financial
Performance Covenants and not for any other purpose under this Agreement, by an
amount equal to the Cure Amount; and

 

(ii)           If,
after giving effect to the foregoing recalculations, the Borrower shall then be
in compliance with the requirements of all Financial Performance Covenants, the
Borrower shall be deemed to have satisfied the requirements of the Financial
Performance Covenants as of the relevant date of determination with the same
effect as though there had been no failure to comply therewith at such date,
and the applicable breach or default of the Financial Performance Covenants
that had occurred shall be deemed cured for this purposes of the Agreement.

 

(b)  Notwithstanding
anything herein to the contrary, (i) in each four-fiscal-quarter period there
shall be at least one fiscal quarter in which the Cure Right is not exercised
(ii) in each eight-fiscal-quarter period, there shall be a period of at least
four consecutive fiscal quarters during which the Cure

 

90

 

Right is not
exercised and (iii) for purposes of this Section 7.03, the Cure Amount shall be
no greater than the amount required for purposes of complying with the
Financial Performance Covenants.

 

ARTICLE VIII

 

The Agents

 

SECTION 8.01.  Appointment.  Each Lender hereby irrevocably designates and
appoints the Administrative Agent as the agent of such Lender under this
Agreement and the other Loan Documents, and each such Lender irrevocably
authorizes the Administrative Agent, in such capacity, to take such action on
its behalf under the provisions of this Agreement and the other Loan Documents
and to exercise such powers and perform such duties as are expressly delegated
to the Administrative Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably incidental
thereto.   Notwithstanding any provision
to the contrary elsewhere in this Agreement, the Administrative Agent shall not
have any duties or responsibilities, except those expressly set forth herein,
or any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read
into this Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.

 

SECTION 8.02.  Delegation of Duties.  The Administrative Agent may execute any of
its duties under this Agreement and the other Loan Documents by or through
agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties.  The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys in-fact
selected by it with reasonable care.

 

SECTION 8.03.  Exculpatory Provisions.  Neither any Agent nor any of their respective
officers, directors, employees, agents, attorneys-in-fact or affiliates shall
be (i) liable for any action lawfully taken or omitted to be taken by it or
such Person under or in connection with this Agreement or any other Loan
Document (except to the extent that any of the foregoing are found by a final
and nonappealable decision of a court of competent jurisdiction to have
resulted from its or such person’s own gross negligence or willful misconduct)
or (ii) responsible in any manner to any of the Lenders for any recitals,
statements, representations or warranties made by any Loan Party or any officer
thereof contained in this Agreement or any other Loan Document or in any
certificate, report, statement or other document referred to or provided for
in, or received by the Agents under or in connection with, this Agreement or
any other Loan Document or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan Document or
for any failure of any Loan Party a party thereto to perform its obligations
hereunder or thereunder.  The Agents
shall not be under any obligation to any Lender to ascertain or to inquire as
to the observance or performance of any of the agreements contained in, or
conditions of, this Agreement or any other Loan Document, or to inspect the
properties, books or records of any Loan Party.

 

SECTION 8.04.  Reliance by Administrative Agent.  The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any instrument, writing,
resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or
teletype message, statement, order or other document or conversation believed
by it to be genuine and correct and to have been signed, sent or made by the
proper person or persons and upon advice and statements of legal counsel
(including counsel to Holdings or the Borrower), independent accountants and
other experts selected by the Administrative Agent.  The Administrative Agent may deem and treat
the payee of any Note as the owner thereof for all purposes unless a written
notice of assignment, negotiation or transfer thereof shall have been filed
with the Administrative Agent.  The
Administrative Agent shall be fully justified in failing or refusing to take
any action under this Agreement or any other Loan Document unless it shall
first receive such advice or

 

91

 

concurrence of the
Required Lenders (or, if so specified by this Agreement, all Lenders) as it
deems appropriate or it shall first be indemnified to its satisfaction by the
Lenders against any and all liability and expense that may be incurred by it by
reason of taking or continuing to take any such action.  The Administrative Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this
Agreement and the other Loan Documents in accordance with a request of the
Required Lenders (or, if so specified by this Agreement, all Lenders), and such
request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders and all future holders of the Loans.

 

SECTION 8.05.  Notice of Default.  The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Event of
Default unless the Administrative Agent has received notice from a Lender,
Holdings or the Borrower referring to this Agreement, describing such Default
or Event of Default and stating that such notice is a “notice of default”.  In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall give notice thereof to
the Lenders.  The Administrative Agent
shall take such action with respect to such Default or Event of Default as
shall be reasonably directed by the Required Lenders (or, if so specified by
this Agreement, all Lenders); provided that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders.

 

SECTION 8.06.  Non-Reliance on Agents and Other Lenders.  Each Lender expressly acknowledges that
neither the Agents nor any of their respective officers, directors, employees,
agents, attorneys-in-fact or affiliates have made any representations or
warranties to it and that no act by any Agent hereafter taken, including any
review of the affairs of a Loan Party or any affiliate of a Loan Party, shall
be deemed to constitute any representation or warranty by any Agent to any
Lender.  Each Lender represents to the
Agents that it has, independently and without reliance upon any Agent or any
other Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
operations, property, financial and other condition and creditworthiness of the
Loan Parties and their affiliates and made its own decision to make its Loans
hereunder and enter into this Agreement. 
Each Lender also represents that it will, 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 analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Loan Documents, and to make such investigation as
it deems necessary to inform itself as to the business, operations, property,
financial and other condition and creditworthiness of the Loan Parties and
their affiliates.  Except for notices,
reports and other documents expressly required to be furnished to the Lenders
by the Administrative Agent hereunder, the Administrative Agent shall not have
any duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, property, condition (financial
or otherwise), prospects or creditworthiness of any Loan Party or any affiliate
of a Loan Party that may come into the possession of the Administrative Agent
or any of its officers, directors, employees, agents, attorneys-in-fact or
affiliates.

 

SECTION 8.07.  Indemnification.  The Lenders agree to indemnify each Agent in
its capacity as such (to the extent not reimbursed by Holdings or the Borrower
and without limiting the obligation of Holdings or the Borrower to do so), each
in an amount equal to its pro  rata share (based on its
Commitments hereunder (or if such Commitments shall have expired or been
terminated, in accordance with the respective principal amounts of its
applicable outstanding Loans or participations in L/C Disbursements, as
applicable)) thereof, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever that may at any time (whether before or
after the payment of the Loans) be imposed on, incurred by or asserted against
such Agent in any way relating to or arising out of, the Commitments, this
Agreement,

 

92

 

any of the other Loan
Documents or any documents contemplated by or referred to herein or therein or
the transactions contemplated hereby or thereby or any action taken or omitted
by such Agent under or in connection with any of the foregoing; provided
that no Lender shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements that are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
from such Agent’s gross negligence or willful misconduct.  The agreements in this Section shall survive
the payment of the Loans and all other amounts payable hereunder.

 

SECTION 8.08.  Agent in Its Individual Capacity.  Each Agent and its affiliates may make loans
to, accept deposits from and generally engage in any kind of business with any
Loan Party as though such Agent were not an Agent.  With respect to its Loans made or renewed by
it and with respect to any Letter of Credit issued or participated in by it,
each Agent shall have the same rights and powers under this Agreement and the
other Loan Documents as any Lender and may exercise the same as though it were
not an Agent, and the terms “Lender” and “Lenders” shall include each Agent in
its individual capacity.

 

SECTION 8.09.  Successor Administrative Agent.  The Administrative Agent may resign as
Administrative Agent upon 30 days’ notice to the Lenders and the Borrower.  If the Administrative Agent shall resign as
Administrative Agent under this Agreement and the other Loan Documents, then
the Required Lenders shall appoint from among the Lenders a successor agent for
the Lenders, which successor agent shall (unless an Event of Default under
Sections 7.01(b), (c), (h) or (i) shall have occurred and be continuing) be
subject to approval by the Borrower (which approval shall not be unreasonably
withheld or delayed), whereupon such successor agent shall succeed to the
rights, powers and duties of the Administrative Agent, and the term “Administrative
Agent” shall mean such successor agent effective upon such appointment and
approval, and the former Administrative Agent’s rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or any of the parties to
this Agreement or any holders of the Loans. 
If no successor agent has accepted appointment as Administrative Agent
by the date that is 30 days following a retiring Administrative Agent’s notice
of resignation, the retiring Administrative Agent’s resignation shall
nevertheless thereupon become effective, and the Lenders shall assume and
perform all of the duties of the Administrative Agent hereunder until such
time, if any, as the Required Lenders appoint a successor agent as provided for
above.  After any retiring Administrative
Agent’s resignation as Administrative Agent, the provisions of this Section 8
shall inure to its benefit 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.

 

SECTION 8.10.  Syndication Agent and Co-Documentation
Agents.  Neither the Syndication
Agent nor the Co-Documentation Agents shall have any duties or responsibilities
hereunder in its capacity as such.

 

ARTICLE IX

 

Miscellaneous

 

SECTION 9.01.  Notices.  (a)   Notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopy, as
follows:

 

93

 

(i)            if
to Holdings, to Niagara Holdings, Inc. , c/o JPMorgan Partners, LLC, 1221
Avenue of the Americas, 39th Floor, New York, NY  10020-1080, Attention of Tim Walsh (Telecopy
No.  (212) 899-3401);

 

(ii)           if
to any other Loan Party, to PQ Corporation, 1200 Swedesford Road, Berwyn, PA
19312, Attention of Michael R. Boyce (Telecopy No. (610) 651-4504), with a
copy to Latham & Watkins LLP, 885 Third Avenue, New York, NY  10022, Attention of Sam Fishman and Greg Ezring
(Telecopy No.  (212) 751-4864);

 

(iii)          if
to the Administrative Agent, to UBS AG, Stamford Branch, 677 Washington Blvd.,
Stamford, CT 06901, Attention of Joselin Fernandes (Telecopy No.
(203) 719-4176, Telephone
No. (203) 719-4308); and

 

(iv)          if
to an Issuing Bank, to it at the address or telecopy number set forth
separately in writing.

 

(b)  Notices
and other communications to the Lenders hereunder may be delivered or furnished
by electronic communications pursuant to procedures approved by the
Administrative Agent; provided that the foregoing shall not apply to
notices pursuant to Article II unless otherwise agreed by the Administrative
Agent and the applicable Lender. Each of the Administrative Agent and the
Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided, further, that approval of
such procedures may be limited to particular notices or communications.

 

(c)
 All notices and other communications given to any party
hereto in accordance with the provisions of this Agreement shall be deemed to
have been given on the date of receipt if delivered by hand or overnight
courier service, sent by telecopy or (to the extent permitted by paragraph (b)
above) electronic means or on the date five Business Days after dispatch by
certified or registered mail if mailed, in each case delivered, sent or mailed
(properly addressed) to such party as provided in this Section 9.01 or in
accordance with the latest unrevoked direction from such party given in
accordance with this Section 9.01.

 

(d)  Any
party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto.

 

SECTION 9.02.  Survival of Agreement.  All covenants, agreements, representations
and warranties made by the Loan Parties herein, in the other Loan Documents and
in the certificates or other instruments prepared or delivered in connection
with or pursuant to this Agreement or any other Loan Document shall be considered
to have been relied upon by the Lenders and each Issuing Bank and shall survive
the making by the Lenders of the Loans, the execution and delivery of the Loan
Documents and the issuance of the Letters of Credit, regardless of any
investigation made by such persons or on their behalf, and shall continue in
full force and effect as long as the principal of or any accrued interest on
any Loan or L/C Disbursement or any Fee or any other amount payable under this
Agreement or any other Loan Document is outstanding and unpaid or any Letter of
Credit is outstanding and so long as the Commitments have not been terminated.
Without prejudice to the survival of any other agreements contained herein,
indemnification and reimbursement obligations contained herein (including
pursuant to Sections 2.15, 2.17 and 9.05) shall survive the payment in full of
the principal and interest hereunder, the expiration of the Letters of Credit
and the termination of the Commitments or this Agreement.

 

SECTION 9.03.  Binding Effect.  This Agreement shall become effective when it
shall have been executed by Holdings, the Borrower and the Administrative Agent and when the

 

94

 

Administrative Agent
shall have received copies hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of Holdings, the Borrower, each Issuing Bank, the
Administrative Agent and each Lender and their respective permitted successors
and assigns.

 

SECTION 9.04.  Successors and Assigns.  (a) 
The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns
permitted hereby (including any affiliate of the Issuing Bank that issues any
Letter of Credit), except that (i) the Borrower may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written
consent of each Lender (and any attempted assignment or transfer by the
Borrower without such consent shall be null and void) and (ii) no Lender may
assign or otherwise transfer its rights or obligations hereunder except in
accordance with this Section 9.04. 
Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any person (other than the parties hereto, their respective
successors and assigns permitted hereby (including any Affiliate of the Issuing
Bank that issues any Letter of Credit), Participants (to the extent provided in
paragraph (c) of this Section 9.04), and, to the extent expressly contemplated
hereby, the Related Parties of each of the Agents, the Issuing Bank and the
Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

 

(b)  (i)  Subject to the conditions set forth in
paragraph (b)(ii) below, any Lender may assign to one or more assignees (each,
an “Assignee”) all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitments and the Loans at the
time owing to it) with the prior written consent (such consent not to be
unreasonably withheld or delayed) of:

 

(A)          the Borrower, provided that no consent of the
Borrower shall be required for an assignment to a Lender, an affiliate of a
Lender, an Approved Fund (as defined below) or, if an Event of Default has
occurred and is continuing, any other person;

 

(B)           the Administrative Agent, provided that no consent
of the Administrative Agent shall be required for an assignment of all or any
portion of a Term Loan  to a Lender, an
Affiliate of a Lender or an Approved Fund; and

 

(C)           the Issuing Bank, provided that no consent of the
Issuing Bank shall be required for an assignment of all or any portion of a
Term Loan.

 

(ii) Assignments shall be
subject to the following additional conditions:

 

(A)          except
in the case of an assignment to a Lender, an affiliate of a Lender or an
Approved Fund or an assignment of the entire remaining amount of the assigning
Lender’s Commitments or Loans under any Facility, the amount of the Commitments
or Loans of the assigning Lender subject to each such assignment (determined as
of the date the Assignment and Acceptance with respect to such assignment is
delivered to the Administrative Agent) shall not be less than $1.0 million in
the case of Term Loans, Revolving Facility Loans or Revolving Facility
Commitments, unless each of the Borrower and the Administrative Agent otherwise
consent, provided that (1) no such consent of the Borrower shall be
required if an Event of Default under Sections 7.01(b), (c), (h) or (i) has
occurred and is continuing and (2) such amounts shall be aggregated in respect
of each Lender and its Affiliates or Approved Funds, if any;

 

(B)           the parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Acceptance,
together with a processing and recordation fee of $3,500; and

 

95

 

(C)           the Assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire.

 

For
the purposes of this Section 9.04, “Approved Fund” means any person
(other than a natural person) that is engaged in making, purchasing, holding or
investing in bank loans and similar extensions of credit in the ordinary course
and that is administered, advised or managed by (a) a Lender, (b) an Affiliate
of a Lender or (c) an entity or an Affiliate of an entity that administers,
advises or manages a Lender. 
Notwithstanding clause (i)(A) above, without the prior written consent
of the Borrower (which may be waived or granted in its sole consent), no Lender
shall be permitted to assign or transfer any portion of its rights and
obligations under this Agreement to any entity previously identified in that
certain letter dated as of the date hereof from the Borrower to the
Administrative Agent and available to any Lender upon request.

 

(iii) Subject to
acceptance and recording thereof pursuant to paragraph (b)(v) below, from
and after the effective date specified in each Assignment and Acceptance 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 the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Acceptance, be released
from its obliga­tions under this Agreement (and, in the case of an Assignment
and Acceptance covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto but shall
continue to be entitled to the benefits of Sections 2.15, 2.16, 2.17 and
9.05).  Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with
this Section 9.04 shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance
with paragraph (c) of this Section 9.04.

 

(iv)  The Administrative Agent, acting for this
purpose as an agent of the Borrower, shall maintain at one of its offices a
copy of each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of,
and principal amount of the Loans and Revolving L/C Exposure owing to, each
Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive absent manifest error, and the Borrower, the Administrative Agent,
the Issuing Bank and the Lenders may treat each person whose name is recorded
in the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary; provided,
however, in the case of an assignment to an Affiliate of the assigning
Lender, such assignment shall be effective between such Lender and its
Affiliate immediately without compliance with the conditions for assignment
under this Section 9.04, but shall not be effective with respect to any other
party hereto, and each other party hereto shall be entitled to deal solely with
such assigning Lender under any such assignment, in each case until the
conditions for assignment under this Section 9.04 have been satisfied.  The Register shall be available for
inspection by the Borrower, the Issuing Bank and any Lender, at any reasonable
time and from time to time upon reasonable prior notice.

 

(v)  Upon its receipt of a duly completed
Assignment and Acceptance executed by an assigning Lender and an Assignee, the
Assignee’s completed Administrative Questionnaire (unless the Assignee shall
already be a Lender hereunder), the processing and recordation fee referred to
in paragraph (b) of this Section and any written consent to such
assignment required by paragraph (b) of this Section, the Administrative Agent
shall accept such Assignment and Acceptance and record the information
contained therein in the Register.  No
assignment, whether or not evidenced by a promissory note, shall be effective
for purposes of this Agreement unless it has been recorded in the Register as
provided in this paragraph (b)(v).

 

96

 

(c)(i)  Any Lender may, without the consent of the
Borrower or the Administrative Agent, sell participations to one or more banks
or other entities (a “Participant”) in all or a portion of such Lender’s
rights and obligations under this Agreement (including all or a portion of its
Commitments and the Loans owing to it); 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 Issuing Bank and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement.  Any
agreement pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce this Agreement and the
other Loan Documents and to approve any amendment, modification or waiver of
any provision of this Agreement and the other Loan Documents; provided
that (x) such agreement may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver that
(1) requires the consent of each Lender directly affected thereby pursuant to
Section 9.04(a)(i) or clauses (i), (ii), (iii), (iv), (v) or (vi) of the first
proviso to Section 9.08(b) and (2) directly affects such Participant and (y) no
other agreement with respect to such Participant may exist between such Lender
and such Participant.  Subject to
paragraph (c)(ii) of this Section 9.04, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17
to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section 9.04.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 9.06 as
though it were a Lender, provided such Participant shall be subject to
Section 2.18(c) as though it were a Lender.

 

(ii)  A
Participant shall not be entitled to receive any greater payment under Section
2.15, 2.16 or 2.17 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 Foreign Lender if it were a Lender shall not be entitled to the benefits
of Section 2.17 to the extent such Participant fails to comply with Section
2.17(e) and (f) as though it were a Lender.

 

(d)  Any
Lender may at any time, without the consent of or notice to the Administrative
Agent or the Borrower, pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this Section 9.04 shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or Assignee for such
Lender as a party hereto.

 

(e) 
The Borrower, upon receipt of written notice from the relevant Lender,
agrees to issue Notes to any Lender requiring Notes to facilitate transactions
of the type described in paragraph (d) above.

 

(f) 
Notwithstanding the foregoing, any Conduit Lender may assign any or all
of the Loans it may have funded hereunder to its designating Lender without the
consent of the Borrower or the Administrative Agent.  Each of Holdings, the Borrower, each Lender
and the Administrative Agent hereby confirms that it will not institute against
a Conduit Lender or join any other person in instituting against a Conduit
Lender any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding under any state bankruptcy or similar law, for one year and one day
after the payment in full of the latest maturing commercial paper note issued
by such Conduit Lender; provided, however, that each Lender
designating any Conduit Lender hereby agrees to indemnify, save and hold
harmless each other party hereto and each Loan Party for any loss, cost, damage
or expense arising out of its inability to institute such a proceeding against
such Conduit Lender during such period of forbearance.

 

97

 

(g)  If the Borrower wishes to replace the Loans
or Commitments under any Facility with ones having different terms, it shall
have the option, with the consent of the Administrative Agent and subject to at
least three Business Days’ advance notice to the Lenders under such Facility,
instead of prepaying the Loans or reducing or terminating the Commitments to be
replaced, to (i) require the Lenders under such Facility to assign such Loans
or Commitments to the Administrative Agent or its designees and (ii) amend the
terms thereof in accordance with Section 9.08 (with such replacement, if
applicable, being deemed to have been made pursuant to Section 9.08(d)).  Pursuant to any such assignment, all Loans
and Commitments to be replaced shall be purchased at par (allocated among the
Lenders under such Facility in the same manner as would be required if such
Loans were being optionally prepaid or such Commitments were being optionally
reduced or terminated by the Borrower), accompanied by payment of any accrued
interest and fees thereon and any amounts owing pursuant to Section
9.05(b).  By receiving such purchase
price, the Lenders under such Facility shall automatically be deemed to have
assigned the Loans or Commitments under such Facility pursuant to the terms of
the form of Assignment and Acceptance attached hereto as Exhibit A, and
accordingly no other action by such Lenders shall be required in connection
therewith.  The provisions of this
paragraph (g) are intended to facilitate the maintenance of the perfection and
priority of existing security interests in the Collateral during any such
replacement.

 

SECTION 9.05.  Expenses; Indemnity.  (a)   The Borrower agrees to pay all reasonable
out-of-pocket expenses (including Other Taxes) incurred by the Administrative
Agent in connection with the preparation of this Agreement and the other Loan
Documents, or by the Administrative Agent in connection with the syndication of
the Commitments or the administration of this Agreement (including expenses
incurred in connection with due diligence and initial and ongoing Collateral
examination to the extent incurred with the reasonable prior approval of the
Borrower and the reasonable fees, disbursements and charges for no more than
one counsel in each jurisdiction where Collateral is located) or in connection
with the administration of this Agreement and any amendments, modifications or
waivers of the provisions hereof or thereof (whether or not the Transactions
hereby contemplated shall be consummated) or incurred by the Administrative
Agent or any Lender in connection with the enforcement or protection of their
rights in connection with this Agreement and the other Loan Documents, in
connection with the Loans made or the Letters of Credit issued hereunder,
including the reasonable fees, charges and disbursements of Simpson Thacher
& Bartlett LLP, counsel for the Administrative Agent and the Joint Lead
Arrangers, and, if necessary, the reasonable fees, charges and disbursements of
one local counsel per jurisdiction).

 

(b)  The
Borrower agrees to indemnify the Administrative Agent, the Joint Lead
Arrangers, each Issuing Bank, each Lender and each of their respective
directors, trustees, officers, employees, advisors and agents (each such person
being called an “Indemnitee”) against, and to hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related
expenses, including reasonable counsel fees, charges and disbursements,
incurred by or asserted against any Indemnitee arising out of, in any way
connected with, or as a result of (i) the execution or delivery of this
Agreement or any other Loan Document or any agreement or instrument
contemplated hereby or thereby, the performance by the parties hereto and
thereto of their respective obligations thereunder or the consummation of the
Transactions and the other transactions contemplated hereby, (ii) the use of
the proceeds of the Loans or the use of any Letter of Credit or (iii) any
claim, litigation, investigation or proceeding relating to any of the
foregoing, whether or not any Indemnitee is a party thereto, provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related
expenses are determined by a final, non-appealable judgment of a court of
competent jurisdiction to have resulted solely by reason of the gross
negligence or willful misconduct of such Indemnitee.  Subject to and without limiting the generality
of the foregoing sentence, the Borrower agrees to indemnify each Indemnitee
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including reasonable counsel or
consultant fees, charges

 

98

 

and disbursements (limited to
not more than one counsel, plus, if necessary, one local counsel per
jurisdiction), incurred by or asserted against any Indemnitee arising out of,
in any way connected with, or as a result of (A) any claim related in any way
to Environmental Laws and Holdings, the Borrower or any of their Subsidiaries,
or (B) any actual or alleged presence, Release or threatened Release of
Hazardous Materials at, under, on or from any Property, provided that
such indemnity shall not, as to any Indemnitee, be available to the extent that
such losses, claims, damages, liabilities or related expenses are determined by
a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee or
any of its Related Parties.  The Borrower
shall not be liable for any settlement of any proceeding referred to in this
Section 9.05 effected without the Borrower’s written consent, but if settled
with such consent or if there shall be a final judgment for the plaintiff, the
Borrower shall indemnify the Indemnitees from and against any loss or liability
by reason of such settlement or judgment, subject to the Borrower’s right in
this Section 9.05 to claim an exemption from such indemnity obligations. The
Borrower shall not, without the prior written consent of any Indemnitee, effect
any settlement of any pending or threatened proceeding in respect of which such
Indemnitee is or could have been a party and indemnity could have been sought
hereunder by such Indemnitee unless such settlement (i) includes an
unconditional release of such Indemnitee from all liability or claims that are
the subject matter of such proceeding and (ii) does not include a statement as
to or an admission of fault, culpability or a failure to act by or on behalf of
any Indemnitee.  None of the Indemnitees
(or any of their respective affiliates) shall be responsible or liable to the
Sponsors, Holdings, the Borrower or any of their respective subsidiaries,
Affiliates or stockholders or any other person or entity for any consequential
damages, which may be alleged as a result of the Facilities or the
Transactions.  The provisions of this
Section 9.05 shall remain operative and in full force and effect regardless of
the expiration of the term of this Agreement, the consummation of the
transactions contemplated hereby, the repayment of any of the Obligations, the
invalidity or unenforceability of any term or provision of this Agreement or
any other Loan Document, or any investigation made by or on behalf of the
Administrative Agent, any Issuing Bank or any Lender. All amounts due under
this Section 9.05 shall be payable on written demand therefor accompanied by
reasonable documentation with respect to any reimbursement, indemnification or
other amount requested.

 

(c)  Except
as expressly provided in Section 9.05(a) with respect to Other Taxes, which
shall not be duplicative with any amounts paid pursuant to Section 2.17, this
Section 9.05 shall not apply to Taxes.

 

SECTION 9.06.  Right of Set-off.  If an Event of Default shall have occurred
and be continuing, each Lender and each Issuing Bank 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 such Issuing Bank to or for the credit or the account of
Holdings, the Borrower or any Subsidiary against any of and all the obligations
of Holdings or the Borrower now or hereafter existing under this Agreement or
any other Loan Document held by such Lender or such Issuing Bank, irrespective
of whether or not such Lender or such Issuing Bank shall have made any demand
under this Agreement or such other Loan Document and although the obligations
may be unmatured. The rights of each Lender and each Issuing Bank under this
Section 9.06 are in addition to other rights and remedies (including other rights
of set-off) that such Lender or such Issuing Bank may have.

 

SECTION 9.07.  Applicable Law.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
(OTHER THAN LETTERS OF CREDIT AND AS EXPRESSLY SET FORTH IN OTHER LOAN
DOCUMENTS) SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

99

 

SECTION 9.08.  Waivers; Amendment.  (a)   No failure or delay of the Administrative
Agent, any Issuing Bank or any Lender in exercising any right or power
hereunder or under any Loan Document shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Administrative Agent, each
Issuing Bank and the Lenders hereunder and under the other Loan Documents are
cumulative and are not exclusive of any rights or remedies that they would
otherwise have. No waiver of any provision of this Agreement or any other Loan
Document or consent to any departure by Holdings, the Borrower or any other
Loan Party therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) below, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given. No
notice or demand on Holdings, the Borrower or any other Loan Party in any case
shall entitle such person to any other or further notice or demand in similar
or other circumstances.

 

(b)  Except
as provided in Section 2.21 with respect to an Incremental Facility Amendment,
neither this Agreement nor any other Loan Document nor any provision hereof or
thereof may be waived, amended or modified except (x) in the case of this
Agreement, pursuant to an agreement or agreements in writing entered into by
Holdings, the Borrower and the Required Lenders and (y) in the case of any
other Loan Document, pursuant to an agreement or agreements in writing entered
into by each party thereto and the Administrative Agent and consented to by the
Required Lenders; provided, however, that no such agreement shall

 

(i)            decrease
or forgive the principal amount of, or extend the final maturity of, or
decrease the rate of interest on, any Loan or any L/C Disbursement, or extend
the stated expiration of any Letter of Credit beyond the Revolving Facility
Maturity Date, without the prior written consent of each Lender directly
affected thereby; provided, that any amendment to the financial covenant
definitions in this Agreement shall not constitute a reduction in the rate of
interest for purposes of this clause (i),

 

(ii)           increase
or extend the Commitment of any Lender or decrease the Commitment Fees or L/C
Participation Fees or other fees of any Lender without the prior written
consent of such Lender (it being understood
that waivers or modifications of conditions precedent, covenants,
Defaults or Events of Default or of a mandatory reduction in the aggregate
Commitments shall not constitute an increase of the Commitments of any Lender),

 

(iii)          extend
or waive any Term Loan Installment Date or reduce the amount due on any Term
Loan Installment Date or extend any date on which payment of interest on any
Loan or any L/C Disbursement or any Fees is due, without the prior written
consent of each Lender adversely affected thereby,

 

(iv)          amend
or modify the provisions of Section 2.18(b) or (c) or 2.10(d) of this Agreement
or Section 5.02 of the Collateral Agreement in a manner that would by its terms alter the  pro rata
sharing of payments required thereby, without the prior written consent
of each Lender adversely affected thereby,

 

(v)           amend
or modify the provisions of this Section 9.08 or the definition of the terms “Required
Lenders,” “Majority Lenders” or any other provision hereof specifying the
number or percentage of Lenders required to waive, amend or modify any rights
hereunder or make any determination or grant any consent hereunder, without the
prior written consent of each Lender adversely affected thereby (it being
understood that, with the consent of the Required Lenders, additional
extensions of credit pursuant to this Agreement may be included in the
determination

 

100

 

of the Required Lenders on substantially the same basis as the Loans
and Commitments are included on the Closing Date),

 

(vi)          release
all or substantially all the Collateral or release any of Holdings, the
Borrower or all or substantially all of the Subsidiary Loan Parties from their
respective Guarantees under the Collateral Agreement, unless, in the case of a
Subsidiary Loan Party, all or substantially all the Equity Interests of such
Subsidiary Loan Party is sold or otherwise disposed of in a transaction
permitted by this Agreement, without the prior written consent of each Lender;

 

(vii)         effect
any waiver, amendment or modification that by its terms adversely affects the
rights in respect of payments or collateral of Lenders participating in any
Facility differently from those of Lenders participating in another Facility,
without the consent of the Majority Lenders participating in the adversely
affected Facility (it being agreed that the Required Lenders may waive, in whole
or in part, any prepayment or Commitment reduction required by Section 2.11 so
long as the application of any prepayment or Commitment reduction still
required to be made is not changed);

 

provided, further,
that no such agreement shall amend, modify or otherwise affect the rights or
duties of the Administrative Agent or an Issuing Bank hereunder without the
prior written consent of the Administrative Agent or such Issuing Bank acting
as such at the effective date of such agreement, as applicable. Each Lender
shall be bound by any waiver, amendment or modification authorized by this
Section 9.08 and any consent by any Lender pursuant to this Section 9.08 shall
bind any assignee of such Lender.

 

(c)
 Without the consent of the Syndication Agent, the Co-Documentation
Agents or any Joint Lead Arranger or Lender or Issuing Bank, the Loan Parties
and the Administrative Agent may (in their respective sole discretion, or
shall, to the extent required by any Loan Document) enter into any amendment,
modification or waiver of any Loan
Document, or enter into any new agreement or instrument, to effect the
granting, perfection, protection, expansion or enhancement of any security
interest in any Collateral or additional property to become Collateral for the
benefit of the Secured Parties, or as required by local law to give effect to,
or protect any security interest for the benefit of the Secured Parties, in any
property or so that the security interests therein comply with applicable law.

 

(d)  Notwithstanding
the foregoing, this Agreement may be amended (or amended and restated) with the
written consent of the Required Lenders, the Administrative Agent, Holdings and
the Borrower (a) to add one or more additional credit facilities to this
Agreement and to permit the extensions of credit from time to time outstanding
thereunder and the accrued interest and fees in respect thereof to share
ratably in the benefits of this Agreement and the other Loan Documents with the
Term Loans and the Revolving Facility Loans and the accrued interest and fees
in respect thereof and (b) to include appropriately the Lenders holding such
credit facilities in any determination of the Required Lenders.

 

SECTION 9.09.  Interest Rate Limitation.  Notwithstanding anything herein to the
contrary, if at any time the applicable interest rate, together with all fees
and charges that are treated as interest under applicable law (collectively,
the “Charges”), as provided for herein or in any other document executed
in connection herewith, or otherwise contracted for, charged, received, taken
or reserved by any Lender or any Issuing Bank, shall exceed the maximum lawful
rate (the “Maximum Rate”) that may be contracted for, charged, taken,
received or reserved by such Lender in accordance with applicable law, the rate
of interest payable hereunder, together with all Charges payable to such Lender
or such Issuing Bank, shall be limited to the Maximum Rate, provided
that such excess amount shall be paid to such Lender or such Issuing Bank on
subsequent payment dates to the extent not exceeding the legal limitation.

 

101

 

SECTION 9.10.  Entire Agreement.  This Agreement, the other Loan Documents and
the agreements regarding certain Fees referred to herein constitute the entire
contract between the parties relative to the subject matter hereof. Any
previous agreement among or representations from the parties or their
Affiliates with respect to the subject matter hereof is superseded by this
Agreement and the other Loan Documents. Notwithstanding the foregoing, the Fee
Letter shall survive the execution and delivery of this Agreement and remain in
full force and effect. Nothing in this Agreement or in the other Loan Documents, expressed or implied, is intended
to confer upon any party other than the parties hereto and thereto any rights,
remedies, obligations or liabilities under or by reason of this Agreement or
the other Loan Documents.

 

SECTION 9.11.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER
LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT
OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER
LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.11.

 

SECTION 9.12.  Severability.  In the event any one or more of the provisions
contained in this Agreement or in any other Loan Document should be held
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein and therein shall
not in any way be affected or impaired thereby. The parties shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.

 

SECTION 9.13.  Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall constitute an original but all of which, when
taken together, shall constitute but one contract, and shall become effective
as provided in Section 9.03. Delivery of an executed counterpart to this
Agreement by facsimile transmission shall be as effective as delivery of a
manually signed original.

 

SECTION 9.14.  Headings.  Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of
this Agreement and are not to affect the construction of, or to be taken into
consideration in interpreting, this Agreement.

 

SECTION 9.15.  Jurisdiction; Consent to Service of
Process.  (a)   Each of the parties hereto hereby irrevocably
and unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of any New York State court or federal court of the United States
of America sitting in New York City, and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement or the
other Loan Documents, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in such New York State or, to the extent permitted by law, in such
federal court. Each of the parties
hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement shall affect
any right that any Lender or any Issuing Bank may otherwise have to bring any
action or proceeding relating to this

 

102

 

Agreement
or the other Loan Documents against Holdings, the Borrower or any Loan Party or
their properties in the courts of any jurisdiction.

 

(b)  Each
of the parties hereto hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement or the other Loan Documents in any
New York State or federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

 

SECTION 9.16.  Confidentiality.  Each of the Lenders, each Issuing Bank and
each of the Agents agrees that it shall maintain in confidence any information
relating to Holdings, the Borrower and the other Loan Parties furnished to it
by or on behalf of Holdings, the Borrower or the other Loan Parties (other than
information that (a) has become generally available to the public other than as
a result of a disclosure by such party, (b) has been independently developed by
such Lender, such Issuing Bank or such Agent without violating this Section
9.16 or (c) was available to such Lender, such Issuing Bank or such Agent from
a third party having, to such person’s knowledge, no obligations of
confidentiality to Holdings, the Borrower or any other Loan Party) and shall
not reveal the same other than to its directors, trustees, officers, employees
and advisors with a need to know or to any person that approves or administers
the Loans on behalf of such Lender (so long as each such person shall have been
instructed to keep the same confidential in accordance with this Section 9.16),
except:  (A) to the extent necessary to
comply with law or any legal process or the requirements of any Governmental
Authority, the National Association of Insurance Commissioners or of any
securities exchange on which securities of the disclosing party or any
Affiliate of the disclosing party are listed or traded, (B) as part of the
reporting or review procedures to, or examinations by, Governmental Authorities
or self-regulatory authorities, including the National Association of Insurance
Commissioners or the National Association of Securities Dealers, Inc., (C) to
its parent companies, Affiliates or auditors (so long as each such person shall
have been instructed to keep the same confidential in accordance with this
Section 9.16), (D) in order to enforce its rights under any Loan Document in a
legal proceeding, (E) to any pledge under Section 9.04(d) or any other
prospective assignee of, or prospective Participant in, any of its rights under
this Agreement (so long as such person shall have been instructed to keep the
same confidential in accordance with this Section 9.16) and (F) to any direct
or indirect contractual counterparty in Swap Agreements or such contractual counterparty’s
professional advisor (so long as such contractual counterparty or professional
advisor to such contractual counterparty agrees to be bound by the provisions
of this Section 9.16).

 

SECTION 9.17.  UBS AG, Stamford Branch Direct Website
Communications.

 

(a)  Delivery.  (i) 
Each Loan Party hereby agrees that it will provide to the Administrative
Agent all information, documents and other materials that it is obligated to
furnish to the Administrative Agent pursuant to this Agreement and any other
Loan Document, including, without limitation, all notices, requests, financial
statements, financial and other reports, certificates and other information materials,
but excluding any such communication that (A) relates to a request for a
new, or a conversion of an existing, borrowing or other extension of credit
(including any election of an interest rate or interest period relating
thereto), (B) relates to the payment of any principal or other amount due
under this Agreement prior to the scheduled date therefor, (C) provides
notice of any Default or Event of Default under this Agreement or (D) is
required to be delivered to satisfy any condition precedent to the effectiveness
of this Agreement and/or any borrowing or other extension of credit hereunder
(all such non-excluded communications collectively, the “Communications”),
by transmitting the Communications in an electronic/soft medium in a format
acceptable to the Administrative Agent. 
Information required to be delivered pursuant to this this Agreement (to
the extent not made available as set forth above) shall be

 

103

 

deemed to have been
delivered to the Administrative Agent on the date on which the Borrower
provides written notice to the Administrative Agent that such information has
been posted on the Borrower’s website on the Internet at http://www.pqcorp.com
(to the extent such information has been posted or is available as described in
such notice).  In addition, each Loan
Party agrees to continue to provide the Communications to the Administrative
Agent in the manner specified in this Agreement or any other Loan Document but
only to the extent requested by the Administrative Agent.  Nothing in this Section 9.17 shall prejudice
the right of the Agents, the Joint Lead Arrangers or any Lender or any Loan
Party to give any notice or other communication pursuant to this Agreement or
any other Loan Document in any other manner specified in this Agreement or any
other Loan Document.

 

(ii)           The Administrative Agent agrees that
receipt of the Communications by the Administrative Agent at its e-mail address
set forth above shall constitute effective delivery of the Communications to
the Administrative Agent for purposes of the Loan Documents.  Each Lender agrees that notice to it (as
provided in the next sentence) specifying that the Communications have been
posted to the Platform (as defined below) shall constitute effective delivery
of the Communications to such Lender for purposes of the Loan Documents.  Each Lender agrees (A) to notify the
Administrative Agent in writing (including by electronic communication) from
time to time of such Lender’s e-mail address to which the foregoing notice may
be sent by electronic transmission and (B) that the foregoing notice may
be sent to such e-mail address.

 

(b)  Posting.  Each Loan Party further agrees that the
Administrative Agent may make the Communications available to the Lenders by
posting the Communications on Intralinks or a substantially similar electronic
transmission system (the “Platform”).

 

(c)  Platform.  The Platform is provided “as is” and “as
available.”  The Agent Parties (as defined
below) do not warrant the accuracy or completeness of the Communications, or
the adequacy of the Platform and expressly disclaim liability for errors or
omissions in the Communications.  No
warranty of any kind, express, implied or statutory, including, without
limitation, any warranty of merchantability, fitness for a particular purpose,
non-infringement of third party rights or freedom from viruses or other code
defects, is made by any Agent Party in connection with the Communications or
the Platform.  In no event shall the
Administrative Agent or any of its affiliates or any of their respective
officers, directors, employees, agents, advisors or representatives
(collectively, “Agent Parties”) have any liability to the Loan Parties,
any Lender or any other person or entity for damages of any kind, including,
without limitation, direct or indirect, special, incidental or consequential
damages, losses or expenses (whether in tort, contract or otherwise) arising
out of any Loan Party’s or the Administrative Agent’s transmission of
communications through the internet, except to the extent the liability of any
Agent Party is found in a final non-appealable judgment by a court of competent
jurisdiction to have resulted primarily from such Agent Party’s gross
negligence or willful misconduct.

 

SECTION 9.18.  Release of Liens and Guarantees.  In the event that any Loan Party conveys, sells,
leases, assigns, transfers or otherwise disposes of all or any portion of any
of the Equity Interests or assets of any Subsidiary Loan Party to a person that
is not (and is not required to become) a Loan Party in a transaction not
prohibited by Section 6.05, the Administrative Agent shall promptly (and the
Lenders hereby authorize the Administrative Agent to) take such action and
execute any such documents as may be reasonably requested by Holdings or the
Borrower and at the Borrower’s expense to release any Liens created by any Loan
Document in respect of such Equity Interests, and, in the case of a disposition
of the Equity Interests of any Subsidiary Loan Party in a transaction permitted
by Section 6.05 and as a result of which such Subsidiary Loan Party would cease
to be a Subsidiary, terminate such Subsidiary Loan Party’s obligations under
its Guarantee. In addition, the Administrative Agent agrees to take such
actions as are reasonably requested by Holdings or the Borrower and at the
Borrower’s expense to terminate the Liens and security interests created by the
Loan Documents when all the Obligations are

 

104

 

paid in full and all
Letters of Credit and Commitments are terminated. Any representation, warranty
or covenant contained in any Loan Document relating to any such Equity
Interests, asset or subsidiary of Holdings shall no longer be deemed to be made
once such Equity Interests or asset is so conveyed, sold, leased, assigned,
transferred or disposed of.

 

SECTION 9.19.  USA Patriot Act.  Each Lender hereby notifies the Borrower that
pursuant to the requirements of the USA Patriot Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Act”), it is required to
obtain, verify and record information that identifies the Borrower, which
information includes the name and address of the Borrower and other information
that will allow such Lender to identify the Borrower in accordance with the
Act.

 

 

[Signature Pages Follow]

 

105

 

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

 

 

	
   

  	
  NIAGARA HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Stephen McKenna

  	
   

  
	
   

  	
  Name:

  	
   Stephen McKenna

  	
   

  
	
   

  	
  Title:

  	
   Vice President, Secretary and

   Assistant Treasurer

  	
   

   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NIAGARA ACQUISITION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Stephen McKenna

  	
   

  
	
   

  	
  Name:

  	
   Stephen McKenna

  	
   

  
	
   

  	
  Title:

  	
   Vice President, Secretary and

   Assistant Treasurer

  	
   

   

  
						

 

Signature page to Credit
Agreement

 

 

	
   

  	
  UBS AG, STAMFORD BRANCH, as

  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Wilfred V. Saint

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Wilfred V. Saint

  
	
   

  	
   

  	
  Title:

  	
  Director Banking Products

  Services, US

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Sailoz Sikka

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sailoz Sikka

  
	
   

  	
   

  	
  Title:

  	
  Associate Director Banking

  Products Services, US

  
					

 

 

	
   

  	
  UBS LOAN FINANCE LLC

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Wilfred V. Saint

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Wilfred V. Saint

  
	
   

  	
   

  	
  Title:

  	
  Director Banking Products

  Services, US

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Sailoz Sikka

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sailoz Sikka

  
	
   

  	
   

  	
  Title:

  	
  Associate Director Banking

  Products Services, US

  
					

 

 

	
   

  	
  JPMORGAN CHASE BANK, N.A., as

  Syndication Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Robert Anastasio

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert Anastasio

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  CREDIT SUISSE FIRST BOSTON, acting

  through its Cayman Islands Branch, individually

  and as Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ S. William Fox

  	
   

  
	
   

  	
   

  	
  Name:

  	
  S. William Fox

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ David Dodd

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David Dodd

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  GENERAL
  ELECTRIC CAPITAL

  CORPORATION, individually and
  as

  Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:     t

  

 

 

	
   

  	
  CHASE
  LINCOLN FIRST COMMERCIAL

  CORPORATION, as a Lender

  
	
   

  	
   

  
	
   

  	
   By

  	
  /s/ Peter Dedousis

  	
   

  
	
   

  	
  Name:

  	
  Peter Dedousis

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
					

 

 

	
   

  	
  GMAC
  COMMERCIAL FINANCE, as a
  Lender

  
	
   

  	
   

  
	
   

  	
   By

  	
   

  	
  /s/ William J. Fitzgerald

  	
   

  
	
   

  	
  Name:

  	
  William J. Fitzgerald

  
	
   

  	
  Title:

  	
  Director

  

 

 

 

	
   

  	
  GENERAL
  ELECTRIC CAPITAL CORPORATION,
  

  individually and as Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ David Ekizian

  	
   

  
	
   

  	
  Name:

  	
  David Ekizian

  	
   

  
	
   

  	
  Title:

  	
  Vice PresidentExhibit
10.2

 

Execution Copy

 

GUARANTEE AND COLLATERAL AGREEMENT

 

dated and effective as of

 

February 11, 2005,

 

among

 

NIAGARA HOLDINGS, INC.,

 

NIAGARA ACQUISITION, INC.,

 

each Subsidiary of Holdings

 

identified herein,

 

and

 

UBS AG, Stamford Branch,

as Administrative
Agent

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I.

  	
   

  
	
   

  	
   

  
	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Credit
  Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  1.02.

  	
  Other
  Defined Terms

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II.

  	
   

  
	
   

  	
   

  
	
  Guarantee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Guarantee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.02.

  	
  Guarantee
  of Payment

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.03.

  	
  No
  Limitations, Etc

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.04.

  	
  Reinstatement

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.05.

  	
  Agreement
  To Pay; Subrogation

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.06.

  	
  Information

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.07.

  	
  Maximum
  Liability

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III.

  	
   

  
	
   

  	
   

  
	
  Pledge
  of Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Pledge

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.02.

  	
  Delivery
  of the Pledged Collateral

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.03.

  	
  Representations,
  Warranties and Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.04.

  	
  Registration
  in Nominee Name; Denominations

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.05.

  	
  Voting
  Rights; Dividends and Interest, etc

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
   

  
	
   

  	
   

  	
   

  
	
  Security
  Interests in Other Personal Property

  	
   

  
	
   

  	
   

  
	
  SECTION 4.01.

  	
  Security
  Interest

  	
   

  

 

ii

 

	
  SECTION 4.02.

  	
  Representations
  and Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.03.

  	
  Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.04.

  	
  Other
  Actions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.05.

  	
  Covenants
  Regarding Patent, Trademark and Copyright Collateral

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V.

  	
   

  
	
   

  	
   

  	
   

  
	
  Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  Remedies
  Upon Default

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.02.

  	
  Application
  of Proceeds

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.03.

  	
  Grant of
  License to Use Intellectual Property

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.04.

  	
  Securities
  Act, etc

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  	
   

  
	
   

  	
   

  
	
  Indemnity,
  Subrogation and Subordination

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Indemnity
  and Subrogation

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.02.

  	
  Contribution
  and Subrogation

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.03.

  	
  Subordination

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII.

  	
   

  
	
   

  	
   

  
	
  Miscellaneous

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.02.

  	
  Security
  Interest Absolute

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.03.

  	
  Limitation
  By Law

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.04.

  	
  Binding
  Effect; Several Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.05.

  	
  Successors
  and Assigns

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.06.

  	
  Administrative
  Agent’s Fees and Expenses; Indemnification

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.07.

  	
  Administrative
  Agent Appointed Attorney-in-Fact

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.08.

  	
  GOVERNING
  LAW

  	
   

  

 

iii

	
   

  	
   

  	
   

  
	
  SECTION 7.09.

  	
  Waivers;
  Amendment

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.10.

  	
  WAIVER OF
  JURY TRIAL

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.11.

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.12.

  	
  Counterparts
  

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.13.

  	
  Headings

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.14.

  	
  Jurisdiction;
  Consent to Service of Process

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.15.

  	
  Termination
  or Release

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.16.

  	
  Additional
  Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.17.

  	
  Right of
  Set-off

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.18.

  	
  Post-Closing
  Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule I

  	
  Subsidiary Parties

  	
   

  
	
  Schedule II

  	
  Pledged
  Stock; Debt Securities

  	
   

  
	
  Schedule III

  	
  Intellectual Property

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit I 

  	
  Form of Supplement to
  the Guarantee and Collateral Agreement

  	
   

  
	
  Exhibit II

  	
  Form of Perfection
  Certificate

  	
   

  

 

iv

 

GUARANTEE
AND COLLATERAL AGREEMENT dated and effective as of February 11, 2005 (this
“Agreement”), among NIAGARA HOLDINGS, INC., a Delaware corporation (“Holdings”),
NIAGARA ACQUISITION, INC., a Delaware corporation (the “Borrower”), each
Subsidiary of the Borrower identified herein as a party (each, a “Subsidiary
Party”) and UBS AG, Stamford Branch, as Administrative Agent (in such
capacity, the “Administrative Agent”) for the Secured Parties (as
defined below).

 

Reference
is made to the Credit Agreement dated as of February 11, 2005 (as amended,
restated, supplemented, waived or otherwise modified from time to time, the “Credit
Agreement”), among Holdings, the Borrower, the Lenders party thereto from
time to time, UBS AG, Stamford Branch, as administrative agent for the Lenders,
JPMorgan Chase Bank, N.A., as syndication agent, Credit Suisse First Boston,
acting through its Cayman Islands branch and General Electric Capital
Corporation, as co-documentation agents, and J.P. Morgan Securities Inc. and
UBS Securities LLC, as joint lead arrangers and joint bookrunners.

 

The
Lenders have agreed to extend credit to the Borrower subject to the terms and
conditions set forth in the Credit Agreement. The obligations of the Lenders to
extend such credit are conditioned upon, among other things, the execution and
delivery of this Agreement. Holdings and the Subsidiary Parties are affiliates
of the Borrower, will derive substantial benefits from the extension of credit
to the Borrower pursuant to the Credit Agreement and are willing to execute and
deliver this Agreement in order to induce the Lenders to extend such credit.
Accordingly, the parties hereto agree as follows:

 

ARTICLE I.

 

Definitions

 

SECTION 1.01. Credit Agreement. (a) Capitalized
terms used in this Agreement and not otherwise defined herein have the
respective meanings assigned thereto in the Credit Agreement. All terms defined
in the New York UCC (as defined herein) and not defined in this Agreement have
the meanings specified therein. The term “instrument” shall have the meaning
specified in Article 9 of the New York UCC.

 

(b)           The rules of construction
specified in Section 1.02 of the Credit Agreement also apply to this
Agreement.

 

SECTION l.02. Other Defined Terms. As used in this Agreement, the following
terms have the meanings specified below:

 

“Account
Debtor” means any person who is or who may become obligated to any Pledgor
under, with respect to or on account of an Account.

 

“Article 9
Collateral” has the
meaning assigned to such term in Section 4.01. 

 

“Collateral”
means Article 9 Collateral and Pledged Collateral.

 

“Control
Agreement” means a deposit account control agreement, a securities account
control agreement or it commodity account control agreement, as applicable,
enabling the Administrative Agent to obtain “control” (within the meaning of
the New York UCC) of any such accounts, in form and substance reasonably
satisfactory to the Administrative Agent.

 

 

“Copyright
License” means any written agreement, now or hereafter in effect, granting
any right to any Pledgor under any Copyright now or hereafter owned by any
third party, and all rights of any Pledgor under any such agreement (including,
without limitation, any such rights that such Pledgor has the right to
license).

 

“Copyrights”
means all of the following now owned or hereafter acquired by any Pledgor (or,
as required in the context of the definition of “Copyright License,” any third
party licensor): (a) all copyright rights in any work subject to the
copyright laws of the United States or any other country, whether as author,
assignee, transferee or otherwise; and (b) all registrations and
applications for registration of any such Copyright in the United States or any
other country, including registrations, supplemental registrations and pending
applications for registration in the United States Copyright Office and the
right to obtain all renewals thereof, including those listed on Schedule III.

 

“Credit
Agreement” has the meaning assigned to such term in the preliminary
statement of this Agreement.

 

“Federal
Securities Laws” has the meaning assigned to such term in Section 5.04.

 

“General
Intangibles” means all “General Intangibles” as defined in the New York
UCC, including all choses in action and causes of action and all other
intangible personal property of any Pledgor of every kind and nature (other
than Accounts) now owned or hereafter acquired by any Pledgor, including
corporate or other business records, indemnification claims, contract rights
(including rights under leases, whether entered into as lessor or lessee, Swap
Agreements and other agreements), Intellectual Property, goodwill,
registrations, franchises, tax refund claims and any guarantee, claim, security
interest or other security held by or granted to any Pledgor to secure payment
by an Account Debtor of any of the Accounts.

 

“Guarantors”
means Holdings and the Subsidiary Parties, solely with respect to Obligations
of the other Loan Parties.

 

“Intellectual
Property” means the collective reference to all rights, priorities and
privileges relating to intellectual and similar property of every kind and
nature now owned or hereafter acquired by any Pledgor, including, inventions,
designs, Patents, Copyrights, Trademarks, Patent Licenses, Copyright Licenses,
Trademark Licenses, trade secrets, domain names, confidential or proprietary
technical and business information, know-how, show-how or other data or
information and all related documentation.

 

“Loan
Document Obligations” means (a) the due and punctual payment by the
Borrower of (i) the unpaid principal of and interest (including interest
accruing during the pendency of any bankruptcy, insolvency, receivership or
other similar proceeding, regardless of whether allowed or allowable in such
proceeding) on the Loans made to the Borrower, when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, (ii) each payment required to be made by the Borrower under the
Credit Agreement in respect of any Letter of Credit, when and as due, including
payments in respect of reimbursement of disbursements, interest thereon
(including interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) and obligations to provide cash collateral and (iii) all
other monetary obligations of the Borrower to any of the Secured Parties under
the Credit Agreement and each of the other Loan Documents, including
obligations to pay fees, expense and reimbursement obligations and indemnification
obligations, whether primary, secondary, direct, contingent, fixed or otherwise
(including monetary obligations incurred during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether
allowed or

 

2

 

allowable in such
proceeding), (b) the due and punctual performance of all other obligations
of the Borrower under or pursuant to the Credit Agreement and each of the other
Loan Documents and (c) the due and punctual payment and performance of all
the obligations of each other Loan Party under or pursuant to this Agreement
and each of the other Loan Documents.

 

“New
York UCC” means the Uniform Commercial Code as from time to time in effect
in the State of New York.

 

“Obligations”
means (a) the Loan Document Obligations, (b) the due and punctual
payment and performance of all obligations of each Loan Party under each Swap
Agreement that (i) is in effect on the Closing Date with a counterparty
that is a Lender or an Affiliate of a Lender as of the Closing Date or (ii) is
entered into after the Closing Date with any counterparty that is a Lender or
an Affiliate of a Lender at the time such Swap Agreement is entered into and (c) the
due and punctual payment and performance of all obligations of the Borrower and
any of its Subsidiaries in respect of overdrafts and related liabilities owed
to a Lender or any of its Affiliates and arising from cash management services
(including treasury, depository, overdraft, credit or debit card, electronic
funds transfer, ACII services and other cash management arrangements).

 

“Patent
License” means any written agreement, now or hereafter in effect, granting
to any Pledgor any right to make, use or sell any invention covered by a
Patent, now or hereafter owned by any third party (including, without
limitation, any such rights that such Pledgor has the right to license).

 

“Patents”
means all of the following now owned or hereafter acquired by any Pledgor (or,
as required in the context of the definition of “Patent License,” any third
party licensor): (a) all letters patent of the United States or the
equivalent thereof in any other country or jurisdiction and all reissues and
extensions thereof, (b) all applications for letters patent of the United
States or the equivalent thereof in any other country or jurisdiction, and all
provisional, continuations, divisions, continuations-in-part, reexaminations or
revisions thereof, including, in the case of (a) and (b), those patents
and applications listed on Schedule III, and (c) the inventions
disclosed or claimed therein, including the right to make, use and/or sell the
inventions disclosed or claimed therein.

 

“Perfection
Certificate” means a certificate substantially in the form of Exhibit II,
completed and supplemented with the schedules and attachments contemplated
thereby, and duly executed by a Financial Officer of the Borrower and the chief
legal officer of the Borrower.

 

“Pledged
Collateral” has the meaning assigned to such term in Section 3.01. 

 

“Pledged
Debt Securities” has the meaning assigned to such term in Section 3.01.

 

“Pledged
Securities” means any promissory notes, stock certificates or other
certificated securities now or hereafter included in the Pledged Collateral, including
all certificates, instruments or other documents representing or evidencing any
Pledged Collateral.

 

“Pledged
Stock” has the meaning assigned to such term in Section 3.01. 

 

“Pledgor”
shall mean the Borrower and each Guarantor.

 

“Secured
Parties” means (a) the Lenders (and any Affiliate of a Lender), (b) the
Administrative Agent, (c) each Issuing Bank, (d) each counterparty to
any Swap Agreement entered into with a Loan Party the obligations under which
constitute Obligations, (e) the beneficiaries of each

 

3

 

indemnification obligation undertaken by any Loan Party
under any Loan Document and (f) the successors and permitted assigns of
each of the foregoing.

 

“Security
Interest” has the meaning assigned to such term in Section 4.01.

 

“Subsidiary
Party” has the meaning assigned to such term in the preliminary statement
of this Agreement.

 

“Trademark
License” means any written agreement, now or hereafter in effect, granting
to any Pledgor any right to use any Trademark now or hereafter owned by any
third party (including, without limitation, any such rights that such Pledgor
has the right to license).

 

“Trademarks”
means all of the following now owned or hereafter acquired by any Pledgor (or,
as required in the context of the definition of “Trademark License,” any third
party licensor): (a) all trademarks, service marks, corporate names,
company names, business names, fictitious business names, trade styles, trade
dress, logos, other source or business identifiers, designs and general
intangibles of like nature, now existing or hereafter adopted or acquired, all
registrations thereof (if any), and all registration applications filed in
connection therewith, including registrations and registration applications in
the United States Patent and Trademark Office or any similar offices in any
State of the United States or any other country or any political subdivision
thereof, and all renewals thereof, including those listed on Schedule III
and (b) all goodwill associated therewith or symbolized thereby.

 

ARTICLE II.

 

Guarantee

 

SECTION 2.01. Guarantee. Each Guarantor unconditionally guarantees, jointly
with the other Guarantors and severally, to the Administrative Agent, for the
ratable benefit of the Secured Parties, as a primary obligor and not merely as
a surety, the due and punctual payment and performance of the Obligations. Each
Guarantor further agrees that the Obligations may be extended or renewed, in
whole or in part, without notice to or further assent from it, and that it will
remain bound upon its guarantee notwithstanding any extension or renewal of any
Obligation. Each Guarantor waives presentment to, demand of payment from and
protest to the Borrower or any other Loan Party of any of the Obligations, and
also waives notice of acceptance of its guarantee and notice of protest for
nonpayment.

 

SECTION 2.02. Guarantee of Payment. Each Guarantor
further agrees that its guarantee hereunder constitutes a guarantee of payment
when due (whether at the stated maturity, by acceleration or otherwise) and not
of collection, and waives any right to require that any resort be had by the
Administrative Agent or any other Secured Party to any security held for the
payment of the Obligations or to any balance of any deposit account or credit
on the books of the Administrative Agent or any other Secured Party in favor of
the Borrower or any other person.

 

SECTION 2.03. No Limitations. Etc. (a) Except for termination of a
Guarantor’s obligations hereunder as expressly provided for in Section 7.15,
the obligations of each Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, including any
claim of waiver, release, surrender, alteration or compromise, and shall not be
subject to any defense or setoff, counterclaim, recoupment or termination
whatsoever by reason of the invalidity, illegality or unenforceability of the
Obligations or otherwise (other than defense of payment or performance).
Without limiting the generality of the foregoing, the obligations of each
Guarantor hereunder, to the fullest extent permitted by applicable law, shall
not be discharged or impaired or otherwise affected by:

 

4

 

(i)            the failure of the
Administrative Agent or any other Secured Party to assert any claim or demand
or to exercise or enforce any right or remedy under the provisions of any Loan
Document or otherwise;

 

(ii)           any
rescission, waiver, amendment or modification of, or any release from any of
the terms or provisions of, any Loan Document or any other agreement, including
with respect to any other Guarantor under this Agreement;

 

(iii)          the failure to
perfect any security interest in, or the exchange, substitution, release or any
impairment of, any security held by the Administrative Agent or any other
Secured Party for the Obligations;

 

(iv)          any
default, failure or delay, willful or otherwise, in the performance of the
Obligations;

 

(v)           any other act or
omission that may or might in any manner or to any extent vary the risk of any
Guarantor or otherwise operate as a discharge of any Guarantor as a matter of
law or equity (other than the payment in full in cash or immediately available
funds of all the Obligations),

 

(vi)          any
illegality, lack of validity or enforceability of any Obligation,

 

(vii)         any change in the
corporate existence, structure or ownership of the Borrower, or any insolvency,
bankruptcy, reorganization or other similar proceeding affecting the Borrower
or its assets or any resulting release or discharge of any Obligation,

 

(viii)        the existence of any
claim, set-off or other rights that the Guarantor may have at any time against
the Borrower, the Administrative Agent, or any other corporation or person,
whether in connection herewith or any unrelated transactions, provided that
nothing herein will prevent the assertion of any such claim by separate suit or
compulsory counterclaim, or

 

(ix)           any other
circumstance (including without limitation, any statute of limitations) or any
existence of or reliance on any representation by the Administrative Agent that
might otherwise constitute a defense to, or a legal or equitable discharge of,
the Borrower or the Guarantor or any other guarantor or surety.

 

Each Guarantor expressly
authorizes the Secured Parties to take and hold security for the payment and
performance of the Obligations, to exchange, waive or release any or all such
security (with or without consideration), to enforce or apply such security and
direct the order and manner of any sale thereof in their sole discretion or to
release or substitute any one or more other guarantors or obligors upon or in
respect of the Obligations, all without affecting the obligations of any
Guarantor hereunder.

 

(b)           To the fullest extent permitted by
applicable law, each Guarantor waives any defense based on or arising out of
any defense of any other Loan Party or the unenforceability of the Obligations
or any part thereof from any cause, or the cessation from any cause of the
liability of any other Loan Party, other than the payment in full in cash or
immediately available funds of all the Obligations (other than contingent or
unliquidated obligations or liabilities). The Administrative Agent and the
other Secured Parties may, at their election, foreclose on any security held by
one or more of them by one or more judicial or nonjudicial sales, accept an
assignment of any such security in lieu of foreclosure, compromise or adjust
any part of the Obligations, make any other accommodation with any other Loan
Party or exercise any other right or remedy available to them against any other
Loan Party,

 

5

 

without affecting or impairing in any way the
liability of any Guarantor hereunder except to the extent the Obligations
(other than contingent or unliquidated obligations or liabilities) have been
paid in full in cash or immediately available funds. To the fullest extent
permitted by applicable law, each Guarantor waives any defense arising out of
any such election even though such election operates, pursuant to applicable
law, to impair or to extinguish any right of reimbursement or subrogation or
other right or remedy of such Guarantor against any other Loan Party, as the
case may be, or any security.

 

SECTION 2.04. Reinstatement. Each Guarantor agrees
that its guarantee hereunder shall continue to be effective or be reinstated,
as the case may be, if at any time payment, or any part thereof, of any
Obligation is rescinded or must otherwise be restored by the or any part
thereof, of any Obligation is rescinded or must otherwise be restored by the
Administrative Agent or any other Secured Party upon the bankruptcy or
reorganization of the Borrower or any other Loan Party or otherwise.

 

SECTION 2.05. Agreement To Pay; Subrogation. In
furtherance of the foregoing and not in limitation of any other right that the
Administrative Agent or any other Secured Party has at law or in equity against
any Guarantor by virtue hereof, upon the failure of the Borrower or any other
Loan Party to pay any Obligation when and as the same shall become due, whether
at maturity, by acceleration, after notice of prepayment or otherwise, each
Guarantor hereby promises to and will forthwith pay, or cause to be paid, to
the Administrative Agent for distribution to the applicable Secured Parties in
cash the amount of such unpaid Obligation. Upon payment by any Guarantor of any
sums to the Administrative Agent as provided above, all rights of such
Guarantor against the Borrower, or other Loan Party or any other Guarantor
arising as a result thereof by way of right of subrogation, contribution,
reimbursement, indemnity or otherwise shall in all respects be subject to Article VI.

 

SECTION 2.06. Information. Each Guarantor assumes
all responsibility for being and keeping itself informed of the financial
condition and assets of the Borrower and each other Loan Party, and of all
other circumstances bearing upon the risk of nonpayment of the Obligations and
the nature, scope and extent of the risks that such Guarantor assumes and
incurs hereunder, and agrees that none of the Administrative Agent or the other
Secured Parties will have any duty to advise such Guarantor of information
known to it or any of them regarding such circumstances or risks.

 

SECTION 2.07. Maximum Liability. Anything herein or
in any other Loan Document to the contrary notwithstanding, the maximum
liability of each Guarantor (other than Holdings) hereunder and under the other
Loan Documents shall in no event exceed the amount which can be guaranteed by
such Guarantor under applicable federal and state laws relating to the
insolvency of debtors (after giving effect to the right of contribution
established in Section 6.02 hereof).

 

ARTICLE III.

 

Pledge
of Securities

 

SECTION 3.01. Pledge. As security for the payment or
performance, as the case may be, in full of the Obligations, each Pledgor
hereby assigns and pledges to the Administrative Agent, for the ratable benefit
of the Secured Parties, and hereby grants to the Administrative Agent, for the
ratable benefit of the Secured Parties, a security interest in all of such Pledgor’s
right, title and interest in, to and under (a) the Equity Interests owned
by it (which shall be listed on Schedule II) and any other Equity
Interests obtained in the future by such Pledgor and any certificates
representing all such Equity Interests (the “Pledged Stock”); provided
that the Pledged Stock shall not include (i) (A) more than 65% of the
issued and outstanding voting Equity Interests of any “first tier” Foreign
Subsidiary directly owned by such Pledgor and (B) any issued and
outstanding Equity Interest of any Foreign Subsidiary that is not a “first tier”
Foreign Subsidiary, (ii) to the extent applicable law requires that a
Subsidiary of such Pledgor

 

6

 

issue directors’ qualifying
shares, such shares or nominee or other similar shares, (iii) any Equity
Interests with respect to which the Collateral and Guarantee Requirement or the
other paragraphs of Section 5.10 of the Credit Agreement need not be
satisfied by reason of Section 5.10(g) of the Credit Agreement, or (iv) any
Equity Interests of a person that is not directly or indirectly a Subsidiary;
(b)(i) the debt obligations listed opposite the name of such Pledgor on Schedule II,
(ii) any debt securities in the future issued to such Pledgor having, in
the case of each instance of debt securities, an aggregate principal amount in
excess of $2,000,000, and (iii) the certificates, promissory notes and any
other instruments, if any, evidencing such debt securities (the “Pledged
Debt Securities”); (c) subject to Section 3.05 hereof, all
payments of principal or interest, dividends, cash, instruments and other
property from time to time received, receivable or otherwise distributed in
respect of, in exchange for or upon the conversion of, and all other proceeds
received in respect of, the securities referred to in clauses (a) and (b) above;
(d) subject to Section 3.05 hereof, all rights and privileges of such
Pledgor with respect to the securities and other property referred to in
clauses (a), (b) and (c) above; and (e) all proceeds of any of
the foregoing (the items referred to in clauses (a) through (c) above
being collectively referred to as the “Pledged Collateral”).

 

TO
HAVE AND TO HOLD the Pledged Collateral, together with all right, title,
interest, powers, privileges and preferences pertaining or incidental thereto,
unto the Administrative Agent, for the ratable benefit of the Secured Parties,
forever; subject, however, to the terms, covenants and conditions
hereinafter set forth.

 

SECTION 3.02. Delivery of the Pledged Collateral. (a)   Each Pledgor agrees promptly to deliver or
cause to be delivered to the Administrative Agent, for the ratable benefit of
the Secured Parties, any and all Pledged Securities to the extent such Pledged
Securities, in the case of promissory notes or other instruments evidencing
Indebtedness, are required to be delivered pursuant to paragraph (b) of
this Section 3.02.

 

(b)           Each Pledgor will cause any
Indebtedness for borrowed money having an aggregate principal amount in excess
of $2,000,000 (other than (i) intercompany current liabilities incurred in
the ordinary course of business in connection with the cash management operations
of Holdings and the Subsidiaries or (ii) to the extent that a pledge of
such promissory note would violate applicable taw) owed to such Pledgor by any
person to he evidenced by a duly executed promissory note that is pledged and
delivered to the Administrative Agent, for the ratable benefit of the Secured
Parties, pursuant to the terms hereof. To the extent any such promissory note
is a demand note, each Pledgor party thereto agrees, if requested by the
Administrative Agent, to immediately demand payment thereunder upon an Event of
Default specified under Section 7.01(b), (c), (f), (h) or (i) of
the Credit Agreement unless such demand would not be commercially reasonable or
would not otherwise expose Pledgor to liability to the maker.

 

(c)           Upon delivery to the Administrative
Agent, (i) any Pledged Securities required to be delivered pursuant to the
foregoing paragraphs (a) and (b) of this Section 3.02 shall be
accompanied by stock powers or note powers, as applicable, duly executed in
blank or other instruments of transfer reasonably satisfactory to the
Administrative Agent and by such other instruments and documents as the Administrative
Agent may reasonably request and (ii) all other property composing part of
the Pledged Collateral delivered pursuant to the terms of this Agreement shall
be accompanied to the extent necessary to perfect the security interest in or
allow realization on the Pledged Collateral by proper instruments of assignment
duly executed by the applicable Pledgor and such other instruments or documents
(including issuer acknowledgments in respect of uncertificated securities) as
the Administrative Agent may reasonably request. Each delivery of Pledged
Securities shall be accompanied by a schedule describing the securities,
which schedule shall be attached hereto as Schedule II and
made a part hereof; provided

 

7

 

that failure to attach any such schedule hereto
shall not affect the validity of such pledge of such Pledged Securities. Each schedule so
delivered shall supplement any prior schedules so delivered.

 

SECTION 3.03. Representations, Warranties and Covenants.
The Pledgors, jointly and severally, represent, warrant and covenant to and
with the Administrative Agent, for the ratable benefit of the Secured Parties,
that:

 

(a)           Schedule II
correctly sets forth the percentage of the issued and outstanding shares of
each class of the Equity Interests of the issuer thereof represented by such
Pledged Stock and includes all Equity Interests, debt securities and promissory
notes or instruments evidencing Indebtedness required to be pledged hereunder
in order to satisfy the Collateral and Guarantee Requirement;

 

(b)           the Pledged Stock
and Pledged Debt Securities (solely with respect to Pledged Debt Securities
issued by a person that is not a Subsidiary of Holdings or an Affiliate of any
such subsidiary, to the best of each Pledgor’s knowledge) have been duly and
validly authorized and issued by the issuers thereof and (i) in the case
of Pledged Stock, are fully paid and nonassessable and (ii) in the case of
Pledged Debt Securities (solely with respect to Pledged Debt Securities issued
by a person that is not a Subsidiary of Holdings or an Affiliate of any such
subsidiary, to the best of each Pledgor’s knowledge) are legal, valid and
binding obligations of the issuers thereof, subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other similar laws relating to or affecting creditors’ rights generally,
general equitable principles (whether considered in a proceeding at law or in
equity) and an implied covenant of good faith and fair dealing;

 

(c)           except for the
security interests granted hereunder, each Pledgor (i) is and, subject to
any transfers made in compliance with the Credit Agreement, will continue to be
the direct owner, beneficially and of record, of the Pledged Collateral
indicated on Schedule II as owned by such Pledgor, (ii) holds
the same free and clear of all Liens, other than Liens permitted under Section 6.02
of the Credit Agreement or arising by operation of law, (iii) will make no
assignment, pledge, hypothecation or transfer of, or create or permit to exist
any security interest in or other Lien on, the Pledged Collateral, other than
pursuant to a transaction permitted by the Credit Agreement and other than
Liens permitted under Section 6.02 of the Credit Agreement or arising by
operation of law and (iv) subject to the rights of such Pledgor under the
Loan Documents to dispose of Pledged Collateral, will use commercially
reasonable efforts to defend its title or interest hereto or therein against
any and all Liens (other than Liens permitted under Section 6.02 of the
Credit Agreement), however arising, of all persons;

 

(d)           other than as set
forth in the Credit Agreement or the schedules thereto, and except for
restrictions and limitations imposed by the Loan Documents or securities laws generally
or otherwise permitted to exist pursuant to the terms of the Credit Agreement,
the Pledged Collateral is and will continue to be freely transferable and
assignable, and none of the Pledged Collateral is or will be subject to any
option, right of first refusal, shareholders agreement, charter or by-law
provisions or contractual restriction of any nature that might prohibit,
impair, delay or otherwise affect the pledge of such Pledged Collateral
hereunder, the sale or disposition thereof pursuant hereto or the exercise by
the Administrative Agent of rights and remedies hereunder;

 

(e)           each
Pledgor has the power and authority to pledge the Pledged Collateral pledged by
it hereunder in the manner hereby done or contemplated;

 

8

 

(f)            other than as set
forth in the Credit Agreement or the schedules thereto, no consent or approval
of any Governmental Authority, any securities exchange or any other person was
or is necessary to the validity of the pledge effected hereby (other than such
as have been obtained and are in full force and effect);

 

(g)           by
virtue of the execution and delivery by the Pledgors of this Agreement, when any
Pledged Securities are delivered to the Administrative Agent, for the ratable
benefit of the Secured Parties, in accordance with this Agreement, the
Administrative Agent will obtain, for the ratable benefit of the Secured
Parties, a legal, valid and perfected lien upon and security interest. in such
Pledged Securities, subject only to Liens permitted under the Credit Agreement
or arising by operation of law, as security for the payment and performance of
the Obligations; and

 

(h)           the
pledge effected hereby is effective to vest in the Administrative Agent, for
the ratable benefit of the Secured Parties, the rights of the Administrative
Agent in the Pledged Collateral as set forth herein.

 

SECTION 3.04. Registration in Nominee Name: Denominations. The Administrative
Agent, on behalf of the Secured Parties, shall have the right (in its sole and
absolute discretion) to hold the Pledged Securities in the name of the
applicable Pledgor, endorsed or assigned in blank or in favor of the
Administrative Agent or, if an Event of Default shall have occurred and be
continuing, in its own name as pledgee or the name of its nominee (as pledgee
or as sub-agent). Each Pledgor will promptly give to the Administrative Agent
copies of any notices or other communications received by it with respect to
Pledged Securities registered in the name of such Pledgor. If an Event of
Default shall have occurred and be continuing, the Administrative Agent shall
have the right to exchange the certificates representing Pledged Securities for
certificates of smaller or larger denominations for any purpose consistent with
this Agreement. Each Pledgor shall use its commercially reasonable efforts to
cause any Loan Party that is not a party to this Agreement to comply with a
request by the Administrative Agent, pursuant to this Section 3.04, to
exchange certificates representing Pledged Securities of such Loan Party for
certificates of smaller or larger denominations.

 

SECTION 3.05. Voting Rights; Dividends and Interest, etc.   (a) Unless and until an Event of
Default shall have occurred and be continuing and the Administrative Agent
shall have given notice to the relevant Pledgors of the Administrative Agent’s
intention to exercise its rights hereunder:

 

(i)            Each Pledgor shall
be entitled to exercise any and all voting and/or other consensual rights and
powers inuring to an owner of Pledged Collateral or any part thereof for any
purpose consistent with the terms of this Agreement, the Credit Agreement and
the other Loan Documents; provided, that such rights and powers shall
not be exercised in any manner that could materially and adversely affect the
rights inuring to a holder of any Pledged Collateral, the rights and remedies of
any of the Administrative Agent or the other Secured Parties under this
Agreement, the Credit. Agreement or any other Loan Document
or the ability of the Secured Parties to exercise the same.

 

(ii)           The Administrative
Agent shall promptly execute and deliver to each Pledgor, or cause to be
executed and delivered to such Pledgor, all such proxies, powers of attorney
and other instruments as such Pledgor may reasonably request for the purpose of
enabling such Pledgor to exercise the voting and/or consensual rights and
powers it is entitled to exercise pursuant to subparagraph (i) above.

 

(iii)          Each Pledgor shall
be entitled to receive and retain any and all dividends, interest, principal
and other distributions paid on or distributed in respect of the Pledged

 

9

 

Collateral
to the extent and only to the extent that such dividends, interest, principal
and other distributions are permitted by, and otherwise paid or distributed in
accordance with, the terms and conditions of the Credit Agreement, the other
Loan Documents and applicable laws; provided that any noncash dividends,
interest, principal or other distributions that would constitute Pledged
Securities, whether resulting from a subdivision, combination or reclassification
of the outstanding Equity Interests of the issuer of any Pledged Securities or
received in exchange for Pledged Securities or any part thereof, or in
redemption thereof, or as a result of any merger, consolidation, acquisition or
other exchange of assets to which such issuer may be a party or otherwise,
shall be and become part of the Pledged Collateral, and, if received by any
Pledgor, shall not be commingled by such Pledgor with any of its other funds or
property but shall be held separate and apart therefrom, shall be held in trust
for the benefit of the Administrative Agent, for the ratable benefit of the
Secured Parties, and shall be forthwith delivered to the Administrative Agent,
for the ratable benefit of the Secured Parties, in the same form as so received
(endorsed in a manner reasonably satisfactory to the Administrative Agent).

 

(b)           Upon the occurrence and during the
continuance of an Event of Default and after notice by the Administrative Agent
to the relevant Pledgors of the Administrative Agent’s intention to exercise
its rights hereunder, all rights of any Pledgor to dividends, interest,
principal or other distributions that such Pledgor is authorized to receive
pursuant to paragraph (a)(iii) of this Section 3.05 shall cease, and all
such rights shall thereupon become vested, for the ratable benefit of the
Secured Parties, in the Administrative Agent which shall have the sole and
exclusive right and authority to receive and retain such dividends, interest,
principal or other distributions. All dividends, interest, principal or other
distributions received by any Pledgor contrary to the provisions of this Section 3.05
shall not be commingled by such Pledgor with any of its other funds or property
but shall be held separate and apart therefrom, shall be held in trust for the
benefit of the Administrative Agent, for the ratable benefit of the Secured
Parties, and shall be forthwith delivered to the Administrative Agent, for the
ratable benefit of the Secured Parties, in the same form as so received
(endorsed in a manner reasonably satisfactory to the Administrative Agent). Any
and all money and other property paid over to or received by the Administrative
Agent pursuant to the provisions of this paragraph (b) shall be retained
by the Administrative Agent in an account to be established by the
Administrative Agent upon receipt of such money or other property and shall be
applied in accordance with the provisions of Section 5.02 hereof. After
all Events of Default have been cured or waived and the Borrower has delivered
to the Administrative Agent a certificate to that effect, the Administrative
Agent shall promptly repay to each Pledgor (without interest.) all dividends,
interest, principal or other distributions that such Pledgor would otherwise be
permitted to retain pursuant to the terms of paragraph (a)(iii) of
this Section 3.05 and that remain in such account.

 

(c)           Upon the occurrence and during the
continuance of an Event of Default and after notice by the Administrative Agent
to the relevant Pledgors of the Administrative Agent’s intention to exercise
its rights hereunder, all rights of any Pledgor to exercise the voting and/or
consensual rights and powers it is entitled to exercise pursuant to paragraph
(a)(i) of this Section 3.05, and the obligations of the Administrative
Agent under paragraph (a)(ii) of this Section 3.05, shall cease, and
all such rights shall thereupon become vested in the Administrative Agent, for
the ratable benefit of the Secured Parties, which shall have the sole and
exclusive right and authority to exercise such voting and consensual rights and
powers; provided that, unless otherwise directed by the Required
Lenders, the Administrative Agent shall have the right from time to time
following and during the continuance of an Event of Default to permit the
Pledgors to exercise such rights. After all Events of Default have been cured
or waived and the Borrower has delivered to the Administrative Agent a certificate
to that effect, each Pledgor shall have the right to exercise the voting and/or
consensual rights and powers that such Pledgor would otherwise be entitled to
exercise pursuant to the terms of paragraph (a)(i) above.

 

10

 

ARTICLE IV.

 

Security Interests in Other Personal Property

 

SECTION 4.01. Security Interest. (a) As
security for the payment or performance when due (whether at the stated
maturity, by acceleration or otherwise), as the case may be, in full of the
Obligations, each Pledgor hereby assigns and pledges to the Administrative
Agent, for the ratable benefit of the Secured Parties, and hereby grants to the
Administrative Agent, for the ratable benefit of the Secured Parties, a
security interest (the “Security Interest”) in all right, title and
interest in or to any and all of the following assets and properties now owned
or at any time hereafter acquired by such Pledgor or in which such Pledgor now
has or at any time in the future may acquire any right, title or interest
(collectively, the “Article 9 Collateral”):

 

(i)            all
Accounts;

 

(ii)           all
Chattel Paper;

 

(iii)          all
Documents;

 

(iv)          all
Equipment;

 

(v)           all
General Intangibles;

 

(vi)          all
Instruments;

 

(vii)         all
Inventory;

 

(viii)        all
Investment Property (other than the Pledged Securities);

 

(ix)           all
Letter-of-Credit Rights;

 

(x)            all
Commercial Tort Claims;

 

(xi)           all
books and records pertaining to the Article 9 Collateral; and

 

(xii)          to the extent not
otherwise included, all proceeds, Supporting Obligations and products of any
and all of the foregoing and all collateral security and guarantees given by
any person with respect to any of the foregoing.

 

Notwithstanding anything to
the contrary in this Agreement, this Agreement shall not constitute a grant of
a security interest in (a) any vehicle covered by a certificate of title
or ownership, (b) any assets (including Equity Interests) with respect to
which the Collateral and Guarantee Requirement or the other paragraphs of Section 5.10
of the Credit Agreement need not be satisfied by reason of Section 5.10(g) of
the Credit Agreement, (c) any property excluded from the definition of
Pledged Collateral by virtue of the proviso to Section 3.01 hereof, (d) any
Letter of Credit Rights to the extent any Pledgor is required by applicable law
to apply the proceeds of a drawing of such Letter of Credit for a specified
purpose or (e) any Pledgor’s right, title or interest in any license,
contract or agreement to which such Pledgor is a party or any of its right,
title or interest thereunder to the extent, but only to the extent, that such a
grant would, under the terms of such license, contract or agreement, result in
a breach of the terms of, or constitute a default under, any license, contract
or agreement to which such Pledgor is a party (other than to the extent that
any such term would be rendered ineffective pursuant to Section 9-406, 9-408
or 9-409 of the New York

 

11

 

UCC or any other applicable
law (including, without limitation, Title 11 of the United States Code) or
principles of equity); provided, that immediately upon the
ineffectiveness, lapse or termination of any such provision, the Collateral
shall include, and such Grantor shall be deemed to have granted a security
interest in, all such rights and interests as if such provision had never been
in effect.

 

(b)           Each Pledgor hereby irrevocably
authorizes the Administrative Agent at any time and from time to time to file
in any relevant jurisdiction any initial financing statements (including
fixture filings) with respect to the Article 9 Collateral or any part
thereof and amendments thereto that contain the information required by Article 9
of the Uniform Commercial Code of each applicable jurisdiction for the filing
of any financing statement or amendment, including (i) whether such
Pledgor is an organization, the type of organization and any organizational
identification number issued to such Pledgor, (ii) in the case of a
financing statement filed as a fixture filing, a sufficient description of the
real property to which such Article 9 Collateral relates and (iii) a
description of collateral that describes such property in any other manner as
the Administrative Agent may reasonably determine is necessary or advisable to
ensure the perfection of the security interest in the Article 9 Collateral
granted under this Agreement, including describing such property as “all assets”
or “all property”. Each Pledgor agrees to provide such information to the
Administrative Agent promptly upon request.

 

The
Administrative Agent is further authorized to file with the United States
Patent and Trademark Office or United States Copyright Office (or any successor
office or any similar office in any other country) such documents as may be
reasonably necessary or advisable for the purpose of perfecting, confirming,
continuing, enforcing or protecting the Security Interest granted by each
Pledgor, without the signature of any Pledgor, and naming any Pledgor or the
Pledgors as debtors and the Administrative Agent as secured party.

 

(c)           The Security Interest is granted as
security only and shall not subject the Administrative Agent or any other
Secured Party to, or in any way alter or modify, any obligation or liability of
any Pledgor with respect to or arising out of the Article 9 Collateral.

 

SECTION 4.02. Representations and Warranties. The
Pledgors jointly and severally represent and warrant to the Administrative
Agent and the Secured Parties that:

 

(a)           Each Pledgor has good and valid
rights in and title to the Article 9 Collateral with respect to which it
has purported to grant a Security Interest hereunder and has full power and
authority to grant to the Administrative Agent the Security Interest in such Article 9
Collateral pursuant hereto and to execute, deliver and perform its obligations
in accordance with the terms of this Agreement, without the consent or approval
of any other person other than any consent or approval that has been obtained
and is in full force and effect or has otherwise been disclosed herein or in
the Credit Agreement.

 

(b)           The Perfection Certificate has been
duly prepared, completed and executed and the information set forth therein,
including the exact legal name of each Pledgor, is correct and complete, in all
material respects, as of the Closing Date. The Uniform Commercial Code
financing statements (including fixture filings, as applicable) or other
appropriate filings, recordings or registrations containing a description of
the Article 9 Collateral that have been prepared by the Administrative
Agent based upon the information provided to the Administrative Agent in the
Perfection Certificate for filing in each governmental, municipal or other
office specified in Schedule 7 to the Perfection Certificate (or
specified by notice from the Borrower to the Administrative Agent after the
Closing Date in the case of filings, recordings or registrations required by Section 5.10
of the Credit Agreement) constitute all the filings, recordings and
registrations (other than filings to be made in the United States Patent and
Trademark Office and the United States Copyright Office with respect to Article 9
Collateral consisting of United States Patents, United States registered
Trademarks and United States registered Copyrights) that are

 

12

 

necessary to publish notice
of and protect the validity of and to establish a legal, valid and perfected
security interest in favor of the Administrative Agent (for the ratable benefit
of the Secured Parties) in respect of all Article 9 Collateral in which
the Security Interest may be perfected by filing, recording or registration in
the United States (or any political subdivision thereof) and its territories
and possessions, and no further or subsequent filing, refiling, recording,
rerecording, registration or reregisiration is necessary in any such
jurisdiction, except as provided under applicable law with respect to the
filing of continuation statements or amendments. Each Pledgor represents and
warrants that a fully executed agreement in the form hereof (or a short form
hereof which form shall be reasonably acceptable to the Administrative Agent)
containing a description of all Article 9 Collateral consisting of
Intellectual Property with respect to United States Patents (and Patents for which
United States registration applications are pending), United States registered
Trademarks (and Trademarks for which United States registration applications
are pending) and United States registered Copyrights (and Copyrights for which
United States registration applications are pending) has been delivered to the
Administrative Agent for recording with the United States Patent and Trademark
Office and the United States Copyright Office pursuant to 35 U.S.C. § 261,
15 U.S.C. § 1060 or 17 U.S.C. § 205 and the regulations thereunder,
as applicable, and reasonably requested by the Administrative Agent, to protect
the validity of and to establish a legal, valid and perfected security interest
in favor of the Administrative Agent, for the ratable benefit of the Secured
Parties, in respect of all Article 9 Collateral consisting of such
Intellectual Property in which a security interest may be perfected by
recording with the United States Patent and Trademark Office and the United
States Copyright Office, and no further or subsequent filing, refiling,
recording, rerecording, registration or reregistration is necessary (other than
such actions as are necessary to perfect the Security Interest with respect to
any Article 9 Collateral consisting of Patents, Trademarks and Copyrights
(or registration or application for registration thereof) acquired or developed
after the date hereof).

 

(c)           The Security Interest constitutes (i) a
legal and valid security interest in all the Article 9 Collateral securing
the payment and performance of the Obligations, (ii) subject to the
filings described in Section 4.02(b), a perfected security interest in all
Article 9 Collateral in which a security interest may be perfected by
filing, recording or registering a financing statement or analogous document in
the United States (or any political subdivision thereof) and its territories
and possessions pursuant to the Uniform Commercial Code or other applicable law
in such jurisdictions and (iii) a security interest that shall be
perfected in all Article 9 Collateral in which a security interest may be
perfected upon the receipt and recording of this Agreement (or a short form
hereof) with the United States Patent and Trademark Office and the United
States Copyright Office, as applicable. The Security Interest is and shall be
prior to any other Lien on any of the Article 9 Collateral, other than
Liens expressly permitted pursuant to Section 6.02 of the Credit Agreement
or arising by operation of law.

 

(d)           The Article 9 Collateral is
owned by the Pledgors free and clear of any Lien, other
than Liens expressly permitted pursuant to Section 6.02 of the Credit
Agreement or arising by operation of law. None of the Pledgors has filed or
consented to the filing of (i) any financing statement or analogous
document under the Uniform Commercial Code or any other applicable laws
covering any Article 9 Collateral, (ii) any assignment in which any
Pledgor assigns any Article 9 Collateral or any security
agreement or similar instrument covering any Article 9 Collateral with the
United States Patent and Trademark Office or the United States Copyright Office
or (iii) any assignment in which any Pledgor assigns any Article 9
Collateral or any security agreement or similar instrument covering any Article 9
Collateral with any foreign governmental, municipal or other office, which
financing statement or analogous document, assignment, security agreement or
similar instrument is still in effect, except, in each, case, for Liens
expressly permitted pursuant to Section 6.02 of the Credit Agreement.

 

(e)           None of the Pledgors holds any
Commercial Tort Claim individually in excess of $2,000,000 as of the Closing
Date except as indicated on the Perfection Certificate.

 

13

 

(f)            Except as set forth in the
Perfection Certificate, as of the Closing Date, all Accounts have been
originated by the Pledgors and all Inventory has been produced or acquired by
the Pledgors in the ordinary course of business.

 

SECTION 4.03. Covenants. (a) Each Pledgor
agrees promptly to notify the Administrative Agent in writing of any change (i) in
its corporate or organization name, (ii) in its identity or type of
organization or corporate structure, (iii) in its Federal Taxpayer
Identification Number or organizational identification number or (iv) in its jurisdiction of organization. Each Pledgor
agrees promptly to provide the Administrative Agent with certified
organizational documents reflecting any of the changes described in the
immediately preceding sentence. Each Pledgor agrees not to effect or permit any
change referred to in the first sentence of this paragraph (a) unless all
filings have been made, or will have been made within any applicable statutory
period, under the Uniform Commercial Code or otherwise that are required in
order for the Administrative Agent to continue at all times following such
change to have a valid, legal and perfected first priority security interest in
all the Article 9 Collateral, for the ratable benefit of the Secured Parties.
Each Pledgor agrees promptly to notify the Administrative Agent if any material
portion of the Article 9 Collateral owned or held by such Pledgor is
damaged or destroyed.

 

(b)           Subject to the rights of such Pledgor
under the Loan Documents to dispose of Collateral, each Pledgor shall, at its
own expense, use commercially reasonable efforts to defend title to the Article 9
Collateral against all persons and to defend the Security Interest of the
Administrative Agent, for the ratable benefit of the Secured Parties, in the Article 9
Collateral and the priority thereof against any Lien not expressly permitted
pursuant to Section 6.02 of the Credit Agreement.

 

(c)           Each Pledgor agrees, at its own
expense, to execute, acknowledge, deliver and cause to be duly filed all such
further instruments and documents and take all such actions as the Administrative
Agent may from time to time reasonably request to better assure, preserve,
protect and perfect the Security Interest and the rights and remedies created
hereby, including the payment of any fees and taxes required in connection with
the execution and delivery of this Agreement, the granting of the Security
Interest and the filing of any financing statements (including fixture filings)
or other documents in connection herewith or therewith. If any amount payable
under or in connection with any of the Article 9 Collateral that is in excess
of $2,000,000 shall be or become evidenced by any promissory note or other instrument,
such note or instrument shall be promptly pledged and delivered to the
Administrative Agent, for the ratable benefit of the Secured Parties, duly
endorsed in a manner reasonably satisfactory to the Administrative Agent.

 

Without
limiting the generality of the foregoing, each Pledgor hereby authorizes the
Administrative Agent, with prompt notice thereof to the Pledgors, to supplement
this Agreement by supplementing Schedule III or adding additional
schedules hereto to specifically identify any asset or item that may constitute
material Copyrights, Patents, Trademarks, Copyright Licenses, Patent Licenses
or Trademark Licenses; provided that any Pledgor shall have the right,
exercisable within 30 days after it has been notified by the Administrative
Agent of the specific identification of such Article 9 Collateral, to
advise the Administrative Agent in writing of any inaccuracy of the
representations and warranties made by such Pledgor hereunder with respect to
such Article 9 Collateral. Each Pledgor agrees that it will use its
commercially reasonable efforts to take such action as shall be necessary in
order that all representations and warranties hereunder shall be true and
correct with respect to such Article 9 Collateral within 30 days after the
date it has been notified by the Administrative Agent of the specific
identification of such Article 9 Collateral.

 

(d)           After the occurrence of an Event of
Default and during the continuance thereof, the Administrative Agent shall have
the right to verify under reasonable procedures the validity, amount,

 

14

 

quality, quantity, value,
condition and status of, or any other matter relating to, the Article 9
Collateral, including, in the case of Accounts or Article 9 Collateral in
the possession of any third person, by contacting Account Debtors or the third
person possessing such Article 9 Collateral for the purpose of making such
a verification. The Administrative Agent shall have the right to share any
information it gains from such inspection or verification with any Secured
Party.

 

(e)           At its option, the Administrative
Agent may discharge past due taxes, assessments, charges, fees, Liens, security
interests or other encumbrances at any time levied or placed on the Article 9
Collateral and not permitted pursuant to Section 6.02 of the Credit
Agreement, and may pay for the maintenance and preservation of the Article 9
Collateral to the extent any Pledgor fails to do so as required by the Credit
Agreement or this Agreement, and each Pledgor jointly and severally agrees to
reimburse the Administrative Agent on demand for any reasonable payment made or
any reasonable expense incurred by the Administrative Agent pursuant to the
foregoing authorization; provided, however, that nothing in this Section 4.03(e) shall
be interpreted as excusing any Pledgor from the performance of, or imposing any
obligation on the Administrative Agent or any Secured Party to cure or perform,
any covenants or other promises of any Pledgor with respect to taxes,
assessments, charges, fees, Liens, security interests or other encumbrances and
maintenance as set forth herein or in the other Loan Documents.

 

(f)            Each Pledgor (rather than the
Administrative Agent or any Secured Party) shall remain liable for the
observance and performance of all the conditions and obligations to be observed
and performed by it under each contract, agreement or instrument relating to
the Article 9 Collateral and each Pledgor jointly and severally agrees to
indemnify and hold harmless the Administrative Agent and the Secured Parties
from and against any and all liability for such performance.

 

(g)           None of the Pledgors shall make or
permit to be made an assignment, pledge or hypothecation of the Article 9
Collateral or shall grant any other Lien in respect of the Article 9 Collateral,
except as expressly permitted by the Credit Agreement. None of the Pledgors
shall make or permit to be made any transfer of the Article 9 Collateral
and each Pledgor shall remain at all times in possession of the Article 9
Collateral owned by it, except as permitted by the Credit Agreement.

 

(h)           None of the Pledgors will, without
the Administrative Agent’s prior written consent (which consent shall not be
unreasonably withheld), grant any extension of the time of payment of any
Accounts included in the Article 9 Collateral, compromise, compound or
settle the same for less than the full amount thereof, release, wholly or
partly, any person liable for the payment thereof or allow any credit or
discount whatsoever thereon, other than extensions, credits, discounts,
compromises or settlements granted or made in the ordinary course of business
and consistent with prudent business practices.

 

(i)            Each Pledgor irrevocably makes,
constitutes and appoints the Administrative Agent (and all officers, employees
or agents designated by the Administrative Agent) as such Pledgor’s true and
lawful agent (and attorney-in-fact) for the purpose, during the continuance of
an Event of Default, of making, settling and adjusting claims in respect of Article 9
Collateral under policies of insurance, endorsing the name of such Pledgor on
any check, draft, instrument or other item of payment for the proceeds of such
policies of insurance and for making all determinations and decisions with
respect thereto. In the event that any Pledgor at any time or times shall fail
to obtain or maintain any of the policies of insurance required hereby or to
pay any premium in whole or part relating thereto, the Administrative Agent
may, without waiving or releasing any obligation or liability of the Pledgors
hereunder or any Event of Default, in its sole discretion, obtain and maintain
such policies of insurance and pay such premium and take any other actions with
respect thereto as the Administrative Agent reasonably deems advisable. All
sums disbursed by the Administrative Agent in connection with this

 

15

 

Section 4.03(i),
including reasonable attorneys’ fees, court costs, expenses and other charges
relating thereto, shall be payable, upon demand, by the Pledgors to the
Administrative Agent and shall be additional Obligations secured hereby.

 

SECTION 4.04. Other Actions. In order to further
ensure the attachment, perfection and priority of, and the ability of the
Administrative Agent to enforce, for the ratable benefit of the Secured
Parties, the Administrative Agent’s security interest in the Article 9
Collateral, each Pledgor agrees, in each case at such Pledgor’s own expense, to
take the following actions with respect to the following Article 9
Collateral:

 

(a)           Instruments and Tangible Chattel
Paper. If any Pledgor shall at any time hold or acquire any Instruments or
Tangible Chattel Paper evidencing an amount in excess of $2,000,000, such Pledgor
shall forthwith endorse, assign and deliver the same to the Administrative
Agent, accompanied by such instruments of transfer or assignment duly executed
in blank as the Administrative Agent may from time to time reasonably request.

 

(b)           Investment Property. Except to
the extent otherwise provided in Article III, if any Pledgor shall at any
time hold or acquire any Certificated Security, such Pledgor shall forthwith
endorse, assign and deliver the same to the Administrative Agent, accompanied
by such instruments of transfer or assignment duly executed in blank as the
Administrative Agent may from time to time reasonably specify. If any security
of a domestic issuer now owned or hereafter acquired by any Pledgor is
uncertificated and is issued to such Pledgor or its nominee directly by the
issuer thereof, upon the Administrative Agent’s reasonable request and upon and
during the continuance of an Event of Default, such Pledgor shall promptly
notify the Administrative Agent of such uncertificated securities and pursuant
to an agreement in form and substance reasonably satisfactory to the
Administrative Agent, either (i) cause the issuer to agree to comply with
instructions from the Administrative Agent as to such security, without further
consent of any Pledgor or such nominee, or (ii) cause the issuer to
register the Administrative Agent as the registered owner of such security. If
any security or other Investment Property, whether certificated or uncertificated,
representing an Equity Interest in a third party and having a fair market value
in excess of $2,000,000 now or hereafter acquired by any Pledgor is held by
such Pledgor or its nominee through a securities intermediary or commodity
intermediary, such Pledgor shall promptly notify the Administrative Agent
thereof and, at the Administrative Agent’s request and option, pursuant to a
Control Agreement in form and substance reasonably satisfactory to the
Administrative Agent, either (A) cause such securities intermediary or
commodity intermediary, as applicable, to agree, in the case of a securities intermediary,
to comply with entitlement orders or other instructions from the Administrative
Agent to such securities intermediary as to such securities or other Investment
Property or, in the case of a commodity intermediary, to apply any value
distributed on account of any commodity contract as directed by the Administrative
Agent to such commodity intermediary, in each case without further consent of
any Pledgor or such nominee, or (B) in the case of Financial Assets or
other Investment Property held through a securities intermediary, arrange for
the Administrative Agent to become the entitlement holder with respect to such
Investment Property, for the ratable benefit of the Secured Parties, with such
Pledgor being permitted, only with the consent of the Administrative Agent, to
exercise rights to withdraw or otherwise deal with such Investment Property.
The Administrative Agent agrees with each of the Pledgors that the
Administrative Agent shall not give any such entitlement orders or instructions
or directions to any such issuer, securities intermediary or commodity
intermediary, and shall not withhold its consent to the exercise of any
withdrawal or dealing rights by any Pledgor, unless an Event of Default has
occurred and is continuing or, after giving effect to any such withdrawal or
dealing rights, would occur. The provisions of this paragraph (c) shall
not apply to any Financial Assets credited to a securities account for which
the Administrative Agent is the securities intermediary.

 

16

 

(c)           Commercial Tort Claims. If any
Pledgor shall at any time hold or acquire a Commercial Tort Claim in an amount
reasonably estimated to exceed $2,000,000, such Pledgor shall promptly notify
the Administrative Agent thereof in a writing signed by such Pledgor, including
a summary description of such claim, and grant to the Administrative Agent in
writing a security interest therein and in the proceeds thereof, all under the
terms and provisions of this Agreement, with such writing to be in form and
substance reasonably satisfactory to the Administrative Agent.

 

SECTION 4.05. Covenants Regarding Patent, Trademark and
Copyright Collateral. (a) Each Pledgor agrees that it will not
knowingly do any act or omit to do any act (and will exercise commercially
reasonable efforts to prevent its licensees from doing any act or omitting to
do any act) whereby any Patent that is material to the normal conduct of such
Pledgor’s business may become prematurely invalidated or dedicated to the
public, and agrees that it shall take commercially reasonable steps with
respect to any material products covered by any such Patent as necessary and
sufficient to establish and preserve its rights under applicable patent laws.

 

(b)           Bach Pledgor will, and will use its
commercially reasonable efforts to cause its licensees or its sublicensees to,
for each material Trademark necessary to the normal conduct of such Pledgor’s
business, (i) maintain such Trademark in full force free from any
adjudication of abandonment or invalidity for non-use, (ii) maintain the
quality of products and services offered under such Trademark, (iii) display
such Trademark with notice of federal or foreign registration or claim of
trademark or service mark as required under applicable law and (iv) not
knowingly use or knowingly permit its licensees’ use of such Trademark in
violation of any third-party rights.

 

(c)           Each Pledgor will, and will use its
commercially reasonable efforts to cause its licensees or its sublicensees to,
for each work covered by a material Copyright necessary to the normal conduct
of such Pledgor’s business that it publishes, displays and distributes, use
copyright, notice as required under applicable copyright laws.

 

(d)           Each Pledgor shall notify the Administrative
Agent promptly if it knows that any Patent, Trademark or Copyright material to
the normal conduct of such Pledgor’s business may imminently become abandoned,
lost or dedicated to the public, or of any materially adverse determination or
development, excluding office actions and similar determinations or
developments in the United States Patent and Trademark Office, United States
Copyright Office, any court or any similar office of any country, regarding
such Pledgor’s ownership of any such material Patent, Trademark or Copyright or
its right to register or to maintain the same.

 

(e)           Each Pledgor, either itself or
through any agent, employee, licensee or designee, shall (i) inform the
Administrative Agent on an annual basis of each application by itself, or
through any agent, employee, licensee or designee, for any Patent with the
United Slates Patent and Trademark Office and each registration of any
Trademark or Copyright with the United States Patent and Trademark Office, the
United States Copyright Office or any comparable office or agency in any other
country filed during the preceding six-month period, and (ii) upon the
reasonable request of the Administrative Agent, execute and deliver any and all
agreements, instruments, documents and papers as the Administrative Agent may reasonably
request to evidence the Administrative Agent’s security interest in such
Patent, Trademark or Copyright.

 

(f)            Each Pledgor shall exercise its
reasonable business judgment consistent with the practice in any proceeding
before the United States Patent and Trademark Office, the United States Copyright
Office or any comparable office or agency in any other country with respect to
maintaining and pursuing each material application relating to any Patent,
Trademark and/or Copyright (and obtaining the relevant grant or registration)
material to the normal conduct of such Pledgor’s business and to maintain

 

17

 

(i) each issued Patent
and (ii) the registrations of each Trademark and each Copyright that is
material to the normal conduct of such Pledgor’s business, including, when
applicable and necessary in such Pledgor’s reasonable business judgment, timely
filings of applications for renewal, affidavits of use, affidavits of
incontestability and payment of maintenance fees, and, if any Pledgor believes
necessary in its reasonable business judgment, to initiate opposition,
interference and cancellation proceedings against third parties.

 

(g)           In the event that any Pledgor knows
or has reason to know that any Article 9 Collateral consisting of a
Patent, Trademark or Copyright material to the normal conduct of its business
has been or is about to be materially infringed, misappropriated or diluted by
a third party, such Pledgor shall promptly notify the Administrative Agent and
shall, if such Pledgor deems it necessary in its reasonable business judgment,
promptly sue and recover any and all damages, and take such other actions as
are reasonably appropriate under the circumstances.

 

(h)           Upon and during the continuance of an
Event of Default, each Pledgor shall use commercially reasonable efforts to
obtain all requisite consents or approvals from the licensor under each
Copyright License, Patent License or Trademark License to effect the assignment
of all such Pledgor’s right, title and interest thereunder to (in the
Administrative Agent’s sole discretion) the designee of the Administrative
Agent or the Administrative Agent.

 

ARTICLE V.

 

Remedies

 

SECTION 5.01. Remedies Upon Default. Upon the
occurrence and during the continuance of an Event of Default, each Pledgor
agrees to deliver each item of Collateral to the Administrative Agent on
demand, and it is agreed that the Administrative Agent shall have the right to take
any of or all the following actions at the same or different times: (a) with
respect to any Article 9 Collateral consisting of Intellectual Property,
on demand, to cause the Security Interest to become an assignment, transfer and
conveyance of any of or all such Article 9 Collateral by the applicable
Pledgors to the Administrative Agent or to license or sublicense, whether
general, special or otherwise, and whether on an exclusive or a nonexclusive
basis, any such Article 9 Collateral throughout the world on such terms and
conditions and in such manner as the Administrative Agent shall determine
(other than in violation of any then-existing licensing arrangements to the
extent that waivers thereunder cannot be obtained) and (b) with or without
legal process and with or without prior notice or demand for performance, to
take possession of the Article 9 Collateral and without liability for
trespass to the applicable Pledgor to enter any premises where the Article 9
Collateral may he located for the purpose of taking possession of or removing
the Article 9 Collateral and, generally, to exercise any and all rights
afforded to a secured party under the applicable Uniform Commercial Code or
other applicable law. Without limiting the generality of the foregoing, each
Pledgor agrees that the Administrative Agent shall have the right, subject to
the mandatory requirements of applicable law, to sell or otherwise dispose of
all or any part of the Collateral at a public or private sale or at any broker’s
board or on any securities exchange, for cash, upon credit or for future
delivery as the Administrative Agent shall deem appropriate. The Administrative
Agent shall be authorized in connection with any sale of a security (if it
deems it advisable to do so) pursuant to the foregoing to restrict the
prospective bidders or purchasers to persons who represent and agree that they
are purchasing such security for their own account, for investment, and not
with a view to the distribution or sale thereof. Upon consummation of any such
sale of Collateral pursuant to this Section 5.01 the Administrative Agent
shall have the right to assign, transfer and deliver to the purchaser or
purchasers thereof the Collateral so sold. Each such purchaser at any such sale
shall hold the property sold absolutely, free from any claim or right on the
part of any Pledgor, and each Pledgor hereby waives and releases (to the extent
permitted by law) all rights of redemption, stay,

 

18

 

valuation and appraisal that such Pledgor now has or
may at any time in the future have under any rule of law or statute now
existing or hereafter enacted.

 

The
Administrative Agent shall give the applicable Pledgors 10 Business Days’
written notice (which each Pledgor agrees is reasonable notice within the
meaning of Section 9-611 of the New York UCC or its equivalent in other
jurisdictions) of the Administrative Agent’s intention to make any sale of
Collateral. Such notice, in the case of a public sale, shall state the time and
place for such sale and, in the case of a sale at a broker’s board or on a
securities exchange, shall state the board or exchange at which such sale is to
be made and the day on which the Collateral, or portion thereof, will first be
offered for sale at such board or exchange. Any such public sale shall be held
at such time or times within ordinary business hours and at such place or
places as the Administrative Agent may fix and state in the notice (if any) of
such sale. At any such sale, the Collateral, or the portion thereof, to be sold
may he sold in one lot as an entirety or in separate parcels, as the
Administrative Agent may (in its sole and absolute discretion) determine. The
Administrative Agent shall not be obligated to make any sale of any Collateral
if it shall determine not to do so, regardless of the fact that notice of sale
of such Collateral shall have been given. The Administrative Agent may, without
notice or publication, adjourn any public or private sale or cause the same to
be adjourned from time to time by announcement at the time and place fixed for
sale, and such sale may, without further notice, be made at the time and place
to which the same was so adjourned. In the case of any sale of all or any part
of the Collateral made on credit or for future delivery, the Collateral so sold
shall be retained by the Administrative Agent until the sale price is paid by
the purchaser or purchasers thereof, but the Administrative Agent shall not
incur any liability in the event that any such purchaser or purchasers shall
fail to take up and pay for the Collateral so sold and, in the case of any such
failure, such Collateral may be sold again upon notice given in accordance with
provisions above. At any public (or, to the extent permitted by law, private)
sale made pursuant to this Section 5.01, any Secured Party may bid for or
purchase for cash, free (to the extent permitted by law) from any right of
redemption, stay, valuation or appraisal on the part of any Pledgor (all such
rights being also hereby waived and released to the extent permitted by law),
the Collateral or any part thereof offered for sale and such Secured Party may,
upon compliance with the terms of sale, hold, retain and dispose of such
property in accordance with Section 5.02 hereof without further
accountability to any Pledgor therefor. For purposes hereof, a written
agreement to purchase the Collateral or any portion thereof shall be treated as
a sale thereof; the Administrative Agent shall be free to carry out such sale
pursuant to such agreement and no Pledgor shall be entitled to the return of
the Collateral or any portion thereof subject thereto, notwithstanding the fact
that after the Administrative Agent shall have entered into such an agreement
all Events of Default shall have been remedied and the Obligations paid in
full. As an alternative to exercising the power of sale herein conferred upon
it, the Administrative Agent may proceed by a suit or suits at law or in equity
to foreclose this Agreement and to sell the Collateral or any portion thereof
pursuant to a judgment or decree of a court or courts having competent
jurisdiction or pursuant to a proceeding by a court-appointed receiver. Any
sale pursuant to the provisions of this Section 5.01 shall be deemed to
conform to the commercially reasonable standards as provided in Section 9-610(b) of
the New York UCC or its equivalent in other jurisdictions.

 

SECTION 5.02. Application of Proceeds. The
Administrative Agent shall promptly apply the proceeds, moneys or balances of
any collection or sale of Collateral, as well as any Collateral consisting of
cash, as follows:

 

FIRST, to the payment of all costs and expenses incurred by the
Administrative Agent in connection with such collection or sale or otherwise in
connection with this Agreement, any other Loan Document or any of the
Obligations, including all court costs and the fees and expenses of its agents
and legal counsel, the repayment of all advances made by (he Administrative
Agent hereunder or under any other Loan Document on behalf of any Pledgor and
any other costs or

 

19

 

expenses
incurred in connection with the exercise of any right or remedy hereunder or
under any other Loan Document;

 

SECOND, to the payment in full of the Obligations (the amounts so
applied to be distributed among the Secured Parties pro  rata in
accordance with the respective amounts of the Obligations owed to them on the
date of any such distribution); and

 

THIRD, to the Pledgors, their successors or assigns,
or as a court of competent jurisdiction may otherwise direct.

 

The Administrative Agent
shall have absolute discretion as to the time of application of any such
proceeds, moneys or balances in accordance with this Agreement. Upon any sale
of Collateral by the Administrative Agent (including pursuant to a power of
sale granted by statute or under a judicial proceeding), the receipt of the
purchase money by the Administrative Agent or of the officer making the sale
shall be a sufficient discharge to the purchaser or purchasers of the
Collateral so sold and such purchaser or purchasers shall not be obligated to
see to the application of any part of the purchase money paid over to the
Administrative Agent or such officer or be answerable in any way for the
misapplication thereof.

 

SECTION 5.03. Grant of License to Use Intellectual Property.
For the purpose of enabling the Administrative Agent to exercise rights and
remedies under this Agreement at such time as the Administrative Agent shall be
lawfully entitled to exercise such rights and remedies, each Pledgor hereby
grants to (in the Administrative Agent’s sole discretion) a designee of the
Administrative Agent or the Administrative Agent, for the ratable benefit of
the Secured Parties, an irrevocable, non-exclusive license (exercisable without
payment of royalty or other compensation to any Pledgor) to use, license or
sublicense any of the Article 9 Collateral consisting of Intellectual
Property now owned or hereafter acquired by such Pledgor, wherever the same may
be located, and including, without limitation, in such license reasonable
access to all media in which any of the licensed items may be recorded or
stored and to all computer software and programs used for the compilation or
printout thereof, the right to prosecute and maintain all intellectual property
and the right to sue or its designee for past infringement of the intellectual
property. The use of such license by the Administrative Agent may be exercised,
at the option of the Administrative Agent, only upon the occurrence and during
the continuation of an Event of Default; provided that any license,
sublicense or other transaction entered into by the Administrative Agent or its
designee in accordance herewith shall be binding upon the Pledgors
notwithstanding any subsequent cure of an Event of Default.

 

SECTION 5.04. Securities Act, etc. In view of the position of the Pledgors in
relation to the Pledged Collateral, or because of other current or future
circumstances, a question may arise under the Securities Act of 1933, as now or
hereafter in effect, or any similar federal statute hereafter enacted analogous
in purpose or effect (such Act and any such similar statute as from time to
time in effect being called the “Federal Securities Laws”) with respect
to any disposition of the Pledged Collateral permitted hereunder. Each Pledgor
understands that compliance with the Federal Securities Laws might very
strictly limit the course of conduct of the Administrative Agent if the
Administrative Agent were to attempt to dispose of all or any part of the
Pledged Collateral, and might also limit the extent to which or the manner in
which any subsequent transferee of any Pledged Collateral could dispose of the
same. Similarly, there may be other legal restrictions or limitations affecting
the Administrative Agent in any attempt to dispose of ail or part of the
Pledged Collateral under applicable Blue Sky or other state securities laws or
similar laws analogous in purpose or effect. Each Pledgor acknowledges and
agrees that in light of such restrictions and limitations, the Administrative
Agent, in its sole and absolute discretion, (a) may
proceed to make such a sale whether or not a registration statement for the
purpose of registering such Pledged Collateral or part thereof shall have been
filed under the Federal Securities Laws or, to the extent

 

20

 

applicable, Blue Sky or other state securities laws and
(b) may approach and negotiate with a single potential purchaser to effect
such sale. Each Pledgor acknowledges and agrees that any such sale might result
in prices and other terms less favorable to the seller than if such sale were a
public sale without such restrictions. In the event of any such sale, the
Administrative Agent shall incur no responsibility or liability for selling all
or any part of the Pledged Collateral at a price that the Administrative Agent,
in its sole and absolute discretion, may in good faith deem reasonable under
the circumstances, notwithstanding the possibility that a substantially higher
price might have been realized if the sale were deferred until after
registration as aforesaid or if more than a single purchaser were approached.
The provisions of this Section 5.04 will apply notwithstanding the existence
of a public or private market upon which the quotations or sales prices may
exceed substantially the price at which the Administrative Agent sells.

 

ARTICLE VI.

 

Indemnity, Subrogation and Subordination

 

SECTION 6.01. Indemnity and Subrogation. In addition
to all such rights of indemnity and subrogation as the Guarantors may have
under applicable law (but subject to Section 6.03 hereof), the Borrower
agrees that (a) in the event a payment shall be made by any Guarantor
under this Agreement in respect of any Obligation of the Borrower, the Borrower
shall indemnify such Guarantor for the full amount of such payment and such
Guarantor shall be subrogated to the rights of the person to whom such payment
shall have been made to the extent of such payment and (b) in the event
any assets of any Guarantor shall be sold pursuant to this Agreement or any
other Security Document to satisfy in whole or in part an Obligation of the
Borrower, the Borrower shall indemnify such Guarantor in an amount equal to the
greater of the book value or the fair market value of the assets so sold.

 

SECTION 6.02. Contribution and Subrogation. Each
Guarantor (other than Holdings) (a “Contributing Guarantor”) agrees
(subject to Section 6.03 hereof) that, in the event a payment shall be
made by any other Guarantor (other than Holdings) hereunder in respect of any
Obligation or assets of any other Guarantor (other than Holdings) shall be sold
pursuant to any Security Document to satisfy any Obligation owed to any Secured
Party and such other Guarantor (the “Claiming Guarantor”) shall not have
been fully indemnified by the Borrower as provided in Section 6.01 hereof,
the Contributing Guarantor shall indemnify the Claiming Guarantor in an amount
equal to the amount of such payment or the greater of the book value or the
fair market value of such assets, as applicable, in each case multiplied by a
fraction of which the numerator shall be the net worth of such Contributing
Guarantor on the date hereof and the denominator shall be the aggregate net
worth of all the Guarantors on the date hereof (or, in the case of any
Guarantor becoming a party hereto pursuant to Section 7.16 hereof, the
date of the supplement hereto executed and delivered by such Guarantor). Any
Contributing Guarantor making any payment to a Claiming Guarantor pursuant to
this Section 6.02 shall be subrogated to the rights of such Claiming
Guarantor under Section 6.01 hereof to the extent of such payment.

 

SECTION 6.03. Subordination. (a) Notwithstanding
any provision of this Agreement to the contrary, all rights of the Guarantors
under Sections 6.01 and 6.02 hereof and all other rights of indemnity,
contribution or subrogation of the Guarantors under applicable law or otherwise
shall be fully subordinated to the payment in full in cash or immediately
available funds of the Obligations (other than contingent or unliquidated
obligations or liabilities). No failure on the part of the Borrower or any
Guarantor to make the payments required by Sections 6.01 and 6.02 hereof (or
any other payments required under applicable law or otherwise) shall in any
respect limit the obligations and liabilities of the

 

21

 

Borrower or any Guarantor
with respect to its Obligations, and the Borrower and each Guarantor shall
remain liable for the full amount of its Obligations.

 

(b)           Each Guarantor hereby agrees that all
Indebtedness and other monetary obligations owed by it to the Borrower, any
other Guarantor or any Subsidiary shall be fully subordinated to the payment in
full in cash or immediately available funds of the Obligations (other than
contingent or unliquidated obligations or liabilities).

 

ARTICLE VII.

 

Miscellaneous

 

SECTION 7.01. Notices. All communications and
notices hereunder shall (except as otherwise expressly permitted herein) be in
writing and given as provided in Section 9.01 of the Credit Agreement.  All communications and notices hereunder to
any Subsidiary Party shall be given to it in care of the Borrower, with such
notice to be given as provided in Section 9.01 of the Credit Agreement.

 

SECTION 7.02. Security Interest Absolute. All rights
of the Administrative Agent hereunder, the Security Interest in the Article 9
Collateral, the security interest in the Pledged Collateral and all obligations
of each Pledgor hereunder shall be absolute and unconditional irrespective of (a) any
lack of validity or enforceability of the Credit Agreement, any other Loan
Document, any agreement with respect to any of the Obligations or any other
agreement or instrument relating to any of the foregoing, (b) any change
in the time, manner or place of payment of, or in any other term of, all or any
of the Obligations, or any other amendment or waiver of or any consent to any
departure from the Credit Agreement, any other Loan Document or any other
agreement or instrument, (c) any exchange, release or non-perfection of
any Lien on other collateral, or any release or amendment or waiver of or
consent under or departure from any guarantee, securing or guaranteeing all or
any of the Obligations or (d) any other circumstance that might otherwise
constitute a defense available to, or a discharge of, any Pledgor in respect of
the Obligations or this Agreement (other than a defense of payment or
performance).

 

SECTION 7.03. Limitation By Law. All rights,
remedies and powers provided in this Agreement may be exercised only to the
extent that the exercise thereof does not violate any applicable provision of
law, and all the provisions of this Agreement are intended to be subject to all
applicable mandatory provisions of law that may be controlling and to be
limited to the extent necessary so that they shall not render this Agreement
invalid, unenforceable, in whole or in part, or not entitled to be recorded,
registered or filed under the provisions of any applicable law.

 

SECTION 7.04. Binding Effect; Several Agreement.
This Agreement shall become effective as to any party to this Agreement when a
counterpart hereof executed on behalf of such party shall have been delivered
to the Administrative Agent and a counterpart hereof shall have been executed
on behalf of the Administrative Agent, and thereafter shall be binding upon
such party and the Administrative Agent and their respective permitted
successors and assigns, and shall inure to the benefit of such party, the
Administrative Agent and the other Secured Parties and their respective
permitted successors and assigns, except that no party shall have the right to
assign or transfer its rights or obligations hereunder or any interest herein
or in the Collateral (and any such assignment or transfer shall be void) except
as expressly contemplated by this Agreement or the Credit Agreement. This
Agreement shall be construed as a separate agreement with respect to each party
and may be amended, modified, supplemented, waived or released with respect to
any party without the approval of any other party and without affecting the
obligations of any other party hereunder.

 

22

 

SECTION 7.05. Successors and Assigns. Whenever in
this Agreement any of the parties hereto is referred to, such reference shall
be deemed to include the permitted successors and assigns of such party; and
all covenants, promises and agreements by or on behalf of any Pledgor or the
Administrative Agent that are contained in this Agreement shall bind and inure
to the benefit of their respective permitted successors and assigns; provided
that no Pledgor may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the
Administrative Agent.

 

SECTION 7.06. Administrative Agents Fees and Expenses;
Indemnification. (a) The parties hereto agree that the
Administrative Agent shall be entitled to reimbursement of its expenses
incurred hereunder as provided in Section 9.05 of the Credit Agreement.

 

(b)           Without limitation of its
indemnification obligations under the other Loan Documents, each Pledgor
jointly and severally agrees to indemnify the Administrative Agent and the
other Indemnitees (as defined in Section 9.05 of the Credit Agreement)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including reasonable counsel fees,
charges and disbursements, incurred by or asserted against any Indemnitee
arising out of, in connection with, or as a result of, (i) the execution,
delivery or performance of this Agreement or any other Loan Document or any
agreement or instrument contemplated hereby or thereby, the performance by the
parties hereto and thereto of their respective obligations thereunder or the
consummation of the Transactions and other transactions contemplated hereby, (ii) the
use of proceeds of the Loans or the use of any Letter of Credit or (iii) any
claim, litigation, investigation or proceeding relating to any of the
foregoing, or to the Collateral, whether or not any Indemnitee is a party
thereto; provided that such indemnity shall not, as to any Indemnitee,
be available to the extent that such losses, claims, damages, liabilities or
related expenses are determined by a court of competent jurisdiction by final
and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Indemnitee.

 

(c)           Any such amounts payable as provided
hereunder shall he additional Obligations secured hereby and by the other
Security Documents. The provisions of this Section 7.06 shall remain
operative and in full force and effect regardless of the termination of this
Agreement or any other Loan Document, the consummation of the transactions
contemplated hereby, the repayment of any of the Obligations, the invalidity or
unenforceability of any term or provision of this Agreement or any other Loan
Document, or any investigation made by or on behalf of the Administrative Agent
or any other Secured Party. All amounts due under this Section 7.06 shall
be payable on written demand therefor.

 

SECTION 7.07. Administrative Agent Appointed Attorney-in-Fact. Each Pledgor
hereby appoints the Administrative Agent the attorney-in-fact of such Pledgor
for the purpose of carrying out the provisions of this Agreement and taking any
action and executing any instrument that the Administrative Agent may deem
necessary or advisable to accomplish the purposes hereof, which appointment is
irrevocable and coupled with an interest. The Administrative Agent shall have
the right, upon the occurrence and during the continuance of an Event of
Default, with full power of substitution either in the Administrative Agent’s
name or in the name of such Pledgor, (a) to receive, endorse, assign or
deliver any and all notes, acceptances, checks, drafts, money orders or other
evidences of payment relating to the Collateral or any part thereof, (b) to
demand, collect, receive payment of, give receipt for and give discharges and
releases of all or any of the Collateral; (c) to ask for, demand, sue for,
collect, receive and give acquittance for any and all moneys due or to become
due under and by virtue of any Collateral; (d) to sign the name of any
Pledgor on any invoice or bill of lading relating to any of the Collateral; (e) to
send verifications of Accounts to any Account Debtor; (f) to commence and
prosecute any and all suits, actions or proceedings at law or in equity in any
court of competent jurisdiction to collect or otherwise realize on all or any
of the Collateral or to enforce any rights in respect of any Collateral; (g) to
settle, compromise,

 

23

 

compound, adjust or defend
any actions, suits or proceedings relating to all or any of the Collateral; (h) to
notify, or to require any Pledgor to notify, Account Debtors to make payment
directly to the Administrative Agent; and (i) to use, sell, assign,
transfer, pledge, make any agreement with respect to or otherwise deal with all
or any of the Collateral, and to do all other acts and things necessary to
carry out the purposes of this Agreement, as fully and completely as though the
Administrative Agent were the absolute owner of the Collateral for all
purposes; provided, that nothing herein contained shall be construed as
requiring or obligating the Administrative Agent to make any commitment or to
make any inquiry as to the nature or sufficiency of any payment received by the
Administrative Agent, or to present or file any claim or notice, or to take any
action with respect to the Collateral or any part thereof or the moneys due or
to become due in respect thereof or any property covered thereby. The
Administrative Agent and the other Secured Parties shall be accountable only
for amounts actually received as a result of the exercise of the powers granted
to them herein, and neither they nor their officers, directors, employees or
agents shall be responsible to any Pledgor for any act or failure to act
hereunder, except for their own gross negligence or willful misconduct.

 

SECTION 7.08. GOVERNING LAW.  THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
NEW YORK.

 

SECTION 7.09. Waivers; Amendment. (a) No
failure or delay by the Administrative Agent, any Issuing Bank or any Lender in
exercising any right, power or remedy hereunder or under any other Loan
Document shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right, power or remedy, or any abandonment or
discontinuance of steps to enforce such a right, power or remedy, preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy. The rights, powers and remedies of the Administrative Agent, any
Issuing Bank and the Lenders hereunder and under the other Loan Documents are
cumulative and are not exclusive of any rights, powers or remedies that they
would otherwise have. No waiver of any provision of this Agreement or consent
to any departure by any Loan Party therefrom shall in any event be effective
unless the same shall be permitted by paragraph (b) of this Section 7.09,
and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. Without limiting the generality
of the foregoing, the making of a Loan or the issuance of a Letter of Credit
shall not be construed as a waiver of any Default or Event of Default,
regardless of whether the Administrative Agent, any Lender or any Issuing Bank
may have had notice or knowledge of such Default or Event of Default at the
time. No notice or demand on any Loan Party in any case shall entitle any Loan
Party to any other or further notice or demand in similar or other
circumstances.

 

(b)           Neither this Agreement nor any
provision hereof may be waived, amended or modified except pursuant to an
agreement or agreements in writing entered into by the Administrative Agent and
the Loan Party or Loan Parties with respect to which such waiver, amendment or
modification is to apply, subject to any consent required in accordance with Section 9.08
of the Credit Agreement.

 

SECTION 7.10. WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENTS. EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN

 

24

 

INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.10.

 

SECTION 7.11. Severability. In the event any one or
more of the provisions contained in this Agreement or in any other Loan
Document should he held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein and therein shall not in any way be affected or impaired thereby. The
parties shall endeavor in good-faith negotiations to replace the invalid,
illegal or unenforceable provisions with valid provisions the economic effect
of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

 

SECTION 7.12. Counterparts. This Agreement may be
executed in two or more counterparts, each of which shall constitute an
original but all of which when taken together shall constitute but one
contract, and shall become effective as provided in Section 7.04 hereof.
Delivery of an executed counterpart to this Agreement by facsimile transmission
shall be as effective as delivery of a manually signed original.

 

SECTION 7.13. Headings. Article and Section headings
and the Table of Contents used herein are for convenience of reference only,
are not part of this Agreement and are not to affect the construction of, or to
be taken into consideration in interpreting, this Agreement.

 

SECTION 7.14. Jurisdiction; Consent to Service of Process. (a) Each
party to this Agreement hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York State
court or federal court of the United States of America sitting in New York
City, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Agreement or any other Loan Documents, or
for recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may he heard and determined in such New York State
or, to the extent permitted by law, in such federal court. Each of the parties
hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement shall affect
any right that the Administrative Agent, any Issuing Bank or any Lender may
otherwise have to bring any action or proceeding relating to this Agreement or
any other Loan Document against any Pledgor, or its properties, in the courts
of any jurisdiction.

 

(b)           Each party to this Agreement hereby
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement or any other Loan Document in any New York State or federal
court. Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

 

SECTION 7.15. Termination or Release. (a) This
Agreement, the guarantees made herein, the pledges made herein, the Security
Interest and all other security interests granted hereby shall terminate when
all the Loan Document Obligations (other than contingent or unliquidated obligations
or liabilities) have been paid in full in cash or immediately available funds
and the Lenders have no further commitment to lend under the Credit Agreement,
the Revolving L/C Exposure has been reduced to zero and each Issuing Bank has
no further obligations to issue Letters of Credit under the Credit Agreement.

 

(b)           A Subsidiary Party shall
automatically be released from its obligations hereunder and the security
interests in the Collateral of such Subsidiary Party shall be automatically
released upon the consummation of any transaction permitted by the Credit
Agreement as a result of which such

 

25

 

Subsidiary Party ceases to be
a Subsidiary of Holdings or otherwise ceases to be a Guarantor; provided that
the Required Lenders shall have consented to such transaction (to the extent
such consent is required by the Credit Agreement) and the terms of such consent
did not provide otherwise.

 

(c)           Upon any sale or other transfer by
any Pledgor of any Collateral that is permitted under the Credit Agreement to
any person that is not a Pledgor, or upon the effectiveness of any written consent
to the release of the security interest granted hereby in any Collateral
pursuant to Section 9.08 of the Credit Agreement, the security interest in
such Collateral shall be automatically released.

 

(d)           In connection with any termination or
release pursuant to paragraph (a), (b) or (c) of this Section 7.15,
the Administrative Agent shall execute and deliver to any Pledgor, at such
Pledgor’s, expense all documents that such Pledgor shall reasonably request to
evidence such termination or release. Any execution and delivery of documents
pursuant to this Section 7.15 shall be without recourse to or warranty by
the Administrative Agent.

 

SECTION 7.16. Additional Subsidiaries. Upon
execution and delivery by the Administrative Agent and any Subsidiary that is
required to become a party hereto by Section 5.10 of the Credit Agreement
of an instrument in the form of Exhibit I hereto, such subsidiary
shall become a Subsidiary Party hereunder with the same force and effect as if
originally named as a Subsidiary Party herein. The execution and delivery of
any such instrument shall not require the consent of any other party to this
Agreement. The rights and obligations of each party to this Agreement shall
remain in full force and effect notwithstanding the addition of any new party
to this Agreement.

 

SECTION 7.17. Right of Set-off. If an Event of Default shall have occurred
and be continuing, each Lender and each Issuing Bank 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 such Issuing Bank to or for the credit or the account of any
party to this Agreement against any of and all the obligations of such party
now or hereafter existing under this Agreement owed to such Lender or such
Issuing Bank, irrespective of whether or not such Lender or such Issuing Bank
shall have made any demand under this Agreement and although such obligations
may be unmatured. The rights of each Lender under this Section 7.17 are in
addition to other rights and remedies (including other rights of set-off) that
such Lender or such Issuing Bank may have.

 

SECTION 7.18. Post-Closing Obligations. Within 60
days after the Closing Date, Holdings and the Borrower shall or shall cause the
relevant Foreign Subsidiary to deliver to the Administrative Agent the
certificates, notarial deeds or other instruments (if any) representing a
pledge of 65% of the shares of Capital Stock of each of PQ Austria GmbH,
Interminglass Sp. Z.o.o., Potters Ballotini Co., Ltd., PQ Chemicals Asia
Limited, Beijing Potters Gongyi, Glass Company Ltd., Potters Thailand Limited,
together with undated stock powers or other instruments of transfer with
respect thereto executed in blank by a duly authorized officer of the pledgor
thereof.

 

[Signature Page Follows]

 

26

 

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
day and year first above written.

 

	
   

  	
   

  	
  NIAGARA HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Stephen McKenna

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Stephen McKenna

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President, Secretary
  and Assistant

  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NIAGARA ACQUISITION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Stephen McKenna

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Stephen McKenna

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President, Secretary
  and Assistant

  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PQ ASIA INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Walter J.
  Stickley, Jr.

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Walter J.
  Stickley, Jr.

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President and
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PQ HOLDING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Walter J. Stickley. Jr.

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Walter J.
  Stickley, Jr.

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President and
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  POTTERS INDUSTRIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Walter J. Stickley, Jr.

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Walter J.
  Stickley, Jr.

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President and
  Secretary

  
										

 

27

 

	
   

  	
  DELPEN CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Walter J. Stickley, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Walter J.
  Stickley, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Vice President and
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PQ SYSTEMS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Walter J. Stickley, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Walter J.
  Stickley, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Vice President and
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PQ INTERNATIONAL INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Walter J. Stickley, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Walter J.
  Stickley, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Vice President and
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMMERCIAL RESEARCH
  ASSOCIATES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Walter J. Stickley, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Walter J. Stickley, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Vice President and
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PHILADELPHIA QUARTZ
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Walter J. Stickley, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Walter J.
  Stickley, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Vice President and
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PQ EXPORT COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Walter J. Stickley, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Walter J.
  Stickley, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Vice President and
  Secretary

  
					

 

28

 

	
   

  	
  UBS AG, Stamford Branch,
  as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wilfred V. Saint

  	
  /s/ Sailoz Sikka

  
	
   

  	
   

  	
  Name:

  	
  Wilfred V. Saint

  	
  Sailoz Sikka

  
	
   

  	
   

  	
  Title:

  	
  Director

  	
  Associate Director

  
	
   

  	
   

  	
  Banking Products

  	
  Banking Products

  
	
   

  	
   

  	
  Services, US

  	
  Services, US

  

 

29

 

ACKNOWLEDGEMENT AND CONSENT

 

The
undersigned hereby acknowledges receipt of a copy of the Guarantee and
Collateral Agreement dated as of February    , 2005 (the “Agreement”),
made by the Pledgors parties thereto for the benefit of UBS AG, Stamford
Branch, as Administrative Agent. The undersigned agrees for the benefit of the
Administrative Agent and the Lenders as follows:

 

The
undersigned acknowledges that its Equity Interests (as defined in the
Agreement) have been pledged pursuant to the terms of the Agreement and will
comply with all actions that may be required of it pursuant to Section 3,05
and 4.04(c) of the Agreement.

 

	
   

  	
  [NAME OF ISSUER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Fax:

  

 

30

 

Exhibit I

to Guarantee and

Collateral Agreement

 

SUPPLEMENT
NO.            dated
as of (this “Supplement”), to the Guarantee and Collateral Agreement dated as
of February    , 2005 (the “Guarantee and Collateral
Agreement”), among NIAGARA HOLDINGS, INC., (“Holdings”), NIAGARA
ACQUISITION, INC., (the “Borrower”), each Subsidiary Party thereto and
UBS AG, Stamford Branch, as Administrative Agent (in such capacity, the “Administrative
Agent”) for the Secured Parties (as defined herein).

 

A.     Reference is made to the
Credit Agreement dated as of February
       , 2005 (as amended, restated,
supplemented, waived or otherwise modified from time to time, the “Credit
Agreement”), among Holdings, the Borrower, the Lenders party thereto from
time to time, UBS AG, Stamford Branch, as administrative agent for the Lenders,
JPMorgan Chase Bank, N.A., as syndication agent, Credit Suisse First Boston,
acting through its Cayman Islands branch and General Electric Capital
Corporation, as co-documentation agents, and J.P. Morgan Securities Inc. and
UBS Securities LLC, as joint lead arrangers and joint bookrunners.

 

B.      Capitalized terms used
herein and not otherwise defined herein shall have the meanings assigned to
such terms in the Credit Agreement and the Guarantee and Collateral Agreement
referred to therein.

 

C.      The Guarantors have
entered into the Guarantee and Collateral Agreement in order to induce the
Lenders to make Loans and each Issuing Bank to issue Letters of Credit.
Section 7.16 of the Guarantee and Collateral Agreement provides that
additional Subsidiaries may become Subsidiary Parties under the Guarantee and
Collateral Agreement by execution and delivery of an instrument in the form of
this Supplement. The undersigned Subsidiary (the “New Subsidiary”) is executing
this Supplement in accordance with the requirements of the Credit Agreement to
become a Subsidiary Party under the Guarantee and Collateral Agreement in order
to induce the Lenders to make additional Loans and each Issuing Bank to issue
additional Letters of Credit and as consideration for Loans previously made and
Letters of Credit previously issued.

 

Accordingly,
the Administrative Agent and the New Subsidiary agree as follows:

 

SECTION 1.           In
accordance with Section 7.16 of the Guarantee and Collateral Agreement,
the New Subsidiary by its signature below becomes a Subsidiary Party and a
Guarantor under the Guarantee and Collateral Agreement with the same force and
effect as if originally named therein as a Subsidiary Party and a Guarantor,
and the New Subsidiary hereby (a) agrees to all the terms and provisions
of the Guarantee and Collateral Agreement applicable to it as a Subsidiary
Party and Guarantor thereunder and (b) represents and warrants that the
representations and warranties made by it as a Guarantor thereunder are true
and correct, in all material respects, on and as of the date hereof. In
furtherance of the foregoing, the New Subsidiary, as security for the payment
and performance in full of the Obligations (as defined in the Guarantee and
Collateral Agreement), does hereby create and grant to the Administrative
Agent, for the ratable benefit of the Secured Parties, a security interest in
and Lien on all the New Subsidiary’s right, title and interest in and to the
Collateral (as defined in the Guarantee and Collateral Agreement) of the New
Subsidiary. Each reference to a “Subsidiary Party” or a “Guarantor” in the
Guarantee and Collateral Agreement shall be deemed to include the New
Subsidiary. The Guarantee and Collateral Agreement is hereby incorporated
herein by reference.

 

1

 

SECTION 2.           The
New Subsidiary represents and warrants to the Administrative Agent and the
other Secured Parties that this Supplement has been duly authorized, executed
and delivered by it and constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms, subject to (i) the
effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent
conveyance or other similar laws affecting creditors’ rights generally,
(ii) general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law) and (iii)
implied covenants of good faith and fair dealing.

 

SECTION 3.           This
Agreement may be executed in two or more counterparts, each of which shall
constitute an original but all of which when taken together shall constitute
but one contract. This Supplement shall become effective when (a) the
Administrative Agent shall have received a counterpart of this Supplement that
bears the signature of the New Subsidiary and (b) the Administrative Agent
has executed a counterpart hereof.

 

SECTION 4.           The
New Subsidiary hereby represents and warrants that (a) set forth on
Schedule I attached hereto is a true and correct schedule of the
location of any and all Article 9 Collateral of the New Subsidiary,
(b) set forth on Schedule II attached hereto is a true and
correct schedule of all the Pledged Securities of the New Subsidiary and
(c) set forth under its signature hereto, is the true and correct legal
name of the New Subsidiary, its jurisdiction of formation and the location of
its chief executive office,

 

SECTION 5.           Except
as expressly supplemented hereby, the Guarantee and Collateral Agreement shall
remain in full force and effect.

 

SECTION 6.         THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK,

 

SECTION 7.          In
the event any one or more of the provisions contained in this Supplement should
be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and in
the Guarantee and Collateral Agreement shall not in any way be affected or
impaired thereby. The parties shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

 

SECTION 8.          All
communications and notices hereunder shall be in writing and given as provided
in Section 7.01 of the Guarantee and Collateral Agreement.

 

SECTION 9.           The
New Subsidiary agrees to reimburse the Administrative Agent for its reasonable
out-of-pocket expenses in connection with this Supplement, including the
reasonable fees, disbursements and other charges of counsel for the
Administrative Agent.

 

2

 

IN
WITNESS WHEREOF, the New Subsidiary and the Administrative Agent have duly
executed this Supplement to the Guarantee and Collateral Agreement as of the day
and year first above written.

 

	
   

  	
  [Name of New Subsidiary]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Legal Name:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Jurisdiction of Formation:
  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Location of Chief Executive
  Office:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UBS AG, Stamford Branch,
  as 

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

3

 

Schedule I

to Supplement No.     to
the

Guarantee and

Collateral Agreement

 

LOCATION OF ARTICLE 9 COLLATERAL

 

	
  Description

  	
   

  	
  Location

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

Schedule II
to

Supplement No.       

to the Guarantee and

Collateral Agreement

 

Pledged Securities of the New Subsidiary

 

EQUITY INTERESTS

 

	
  Number of Issuer

  Certificate

  	
   

  	
  Registered Owner

  	
   

  	
  Number and Class of

  Equity Interest

  	
   

  	
  Percentage of

  Equity Interests

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

DEBT
SECURITIES

 

	
  Issuer

  	
   

  	
  Principal Amount

  	
   

  	
  Date of Note

  	
   

  	
  Maturity Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

OTHER PROPERTY

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