Document:

Exhibit 10.1

 

ACCOUNTS RECEIVABLE PURCHASE AGREEMENT

 

THIS ACCOUNTS RECEIVABLE PURCHASE AGREEMENT (this “Agreement”)
is made on this 23rd day of July, 2009, by and between REPUBLIC CAPITAL ACCESS,
LLC, a Delaware limited liability company having its principal place of
business at 1818 Library Street, Reston, Virginia 20190 (“Buyer”),  and American Defense Systems, Inc., a Delaware
Corporation having its principal place of business at 230 Duffy Ave.,
Hicksville, NY 11801 (“Seller”).

 

WHEREAS, Buyer and RCA have performed, or have caused to be
performed, all necessary due diligence and have determined that Seller is an
Eligible Contractor; and

 

WHEREAS, Seller desires to sell certain Receivables that it
now owns and from time to time hereafter will own to Buyer, and Buyer is
willing, on the terms and subject to the conditions contained in this
Agreement, to purchase such Receivables from Seller at such time; and

 

WHEREAS, Buyer is a bona fide financing institution within
the meaning of the Assignment of Claims Act and the Federal Acquisition
Regulations.

 

NOW, THEREFORE, in consideration of the mutual agreements,
provisions and covenants contained herein, the parties hereto agree as follows:

 

SECTION 1

DEFINITIONS

 

1.1           Definitions. Certain terms
used in this Agreement are defined in this Section 1.1.  These
terms, and the additional terms defined above, shall have the meanings assigned
wherever the terms appear in this Agreement. These meanings are also applicable
to the singular and plural forms of the terms defined.

 

“Acceptance Date” shall have the meaning set forth in Section 2.2
hereof.

 

“Account Balance” shall mean, on any given day, the gross amount
of all the Purchased Receivables or any portion thereof unpaid on that day.

 

“Account Debtor” shall have the same meaning set forth in the
UCC and shall include any person liable on any Purchased Receivable, including,
without limitation, the Government and any guarantor of such Purchased
Receivable.

 

“Accrual Period” shall mean, with respect to any Residual Payment
Date, the period from, and including, the immediately preceding Residual
Payment Date through, but excluding, such Residual Payment Date; provided,
however, that the initial Accrual Period shall commence on the date
hereof.

 

“Applicable Law” shall mean all provisions of laws, statutes,
rules, regulations, codes, ordinances, judgments, writs, decrees and orders of
any 

 

 

Governmental
Authority or arbitrator applicable to the Person in question, including
judgments, writs, decrees and orders of all courts and arbitrators in
Proceedings in which the Person in question is a party.

 

“Anticipated Collection Date” shall mean, with respect to any
Purchased Receivable, the date which Buyer estimates in good faith to be the
date that all Collections related to such Eligible Receivable will be directly
deposited to the Segregated Account by the Account Debtor.

 

“Assignment of Claims Act” shall mean the United States
Assignment of Claims Act of 1940, 31 U.S.C. § 3727, 41 U.S.C. § 15, as amended.

 

“Availability Period” shall mean the
period from and including the date hereof to December 31, 2009, provided,
however, that if the term of this Agreement is extended in accordance
with Section 10.10 hereof, the Availability Period will be extended
as determined by Buyer in its sole discretion.

 

“Bankruptcy Code” shall mean Title 11 of the United States Code
(11 U.S.C. §§ 101 et  seq.).

 

“Business Day” shall mean any day that is not a Saturday, a
Sunday or other day on which commercial banking institutions in the City of New
York are authorized or obligated by Applicable Law to close.

 

“Buyer Indemnified Liabilities” shall have the meaning set forth
in Section 10.3.1 hereof.

 

“CBH” shall mean Cherry, Bekaert & Holland, L.L.P., or
such other Person that KBC approves in writing in its sole discretion that
performs the obligations of Cherry, Bekaert & Holland, L.L.P. under
the Collateral Review Agreement.

 

“Collateral Review Agreement” shall mean the Letter of
Arrangement dated as of December 31, 2008 between CBH and the Buyer.

 

“Collections” shall mean all amounts received with respect to
the Purchased Receivables, including scheduled payments (whether received in
whole or in part; whether related to a current, future or prior due date; or
whether paid voluntarily by an Account Debtor or received in connection with
the realization of the amounts due under any Purchased Receivable or upon the
sale or disposition of any property acquired in respect thereof), all partial
payments, all full prepayments and all recoveries.

 

“Compliance Certificate” shall mean a certificate, in a form
provided by Seller to Buyer, which contains the certification of an officer of
Seller that, among other things, the representations and warranties set forth
in this Agreement are true and correct as of the date such certificate is
delivered.

 

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“Confirmation List” shall mean a list, made either in writing or
via email, delivered to Seller on the Acceptance Date that shall set forth (i) each
Eligible Receivable Buyer agrees to purchase pursuant to any related Offer
Notice and (ii) the Initial Purchase Price that shall be paid to Seller
with respect to each such Eligible Receivable.

 

“Contract Disputes Act” shall mean the Contract Disputes Act of
1978, 41 U.S.C. §§ 601-613, as amended.

 

“Contractor Review Agreement” shall mean that certain Letter
Agreement  dated as of January 9, 2009
between the Underwriter and RCA.

 

“DCAA” shall mean the Defense Contract Audit Agency of the
United States Department of Defense.

 

“Deemed Collections” shall mean all
reductions, adjustments, discounts, credits, allowances, rebates, refunds,
returns, disputes, counterclaims, offsets, defenses, rights of recoupment,
rights of return, warranty claims or short payments, asserted by or on behalf
of any Account Debtor with respect to any Purchased Receivable.

 

“Direct Costs” shall have the meaning ascribed to such term in
48 C.F.R. Section 2.101 and shall include all allocable and allowable
costs in accordance with FAR Part 31.

 

“Discount Factor” shall have the meaning set forth in Section 3.5
hereof.

 

“Discount Factor Rate” shall have the meaning set forth in Section 3.5
hereof.

 

“Eligible Contractor” means a Person
that (a) is a U.S. resident or Person organized under the laws of any
state of the United States, (b) is not an affiliate of RCA or Buyer, (c) is
a party to a contract with an Account Debtor pursuant to which it is entitled
to receive payments from such Account Debtor, (d) has been deemed to be “responsible”
in accordance with the FAR and to have been determined by the Account Debtor to
be satisfactory after reviewing the United States Government Contractor
Performance Assessment Reporting System, (e) has not been notified of the
reduction or suspension of contract payments upon a finding of fraud, or of the
investigation of fraud, pursuant to FAR 32.006, (f) does not have a
billing rate error of more than two percent (2%) with respect to billings to
the Government within the last twelve (12) months prior to the purchase of any
receivable generated by such Contractor by RCA, (g) has not experienced
any set-off or withholding of funds under any contract with the Account Debtor
as a result of a failure to pay its employees in accordance with any federal
wage and hour statutes, including, but not limited to, the Service Contract
Act, 41 U.S.C. § 351 et  seq., or the Contract Work Hours and
Safety Standards Act, 40 U.S.C. § 3701 et  seq., nor has it been
notified of an investigation of the foregoing matters, (h) has not
experienced any set-off or withholding of funds under any contract with the 

 

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Account Debtor as a result of its Indebtedness to the Account Debtor,
including any monies owed for overpayment by the Account Debtor, nor has it been
notified of an investigation of such matter, (i) has been reviewed and
approved pursuant to the Contractor Review Agreement at least annually, and (j) satisfies
all of the representations and warranties it makes under this Agreement.

 

“Eligible Receivable” A bona fide
receivable arising from an invoice that has been sent to and approved for
payment by an Account Debtor (to the extent required by Buyer) pursuant to a
contract between an Account Debtor, as obligor, and Seller, and all Related
Security thereof: (a) that is either (i) a “Service Contract” (as
defined in FAR 37.101) between Seller and the Account Debtor, provided, however,
that an Eligible Receivable shall not be deemed to arise from a construction
contract, or (ii) a contract between Seller and the Account Debtor for the
delivery of products, provided that the delivery of such products can be
verified by Buyer; (b) that has been purchased by the Buyer from the
Seller in accordance with this Agreement; (c) that has been executed by an
authorized officer of the Seller who has verified that adequate funds are
available and no appropriations approval is required for the Seller to enter
into the contract; (d) that satisfies all of the criteria of any due
diligence review conducted by Buyer, RCA, CBH or the Underwriter; (e) that
is denominated and payable only in U.S. dollars by electronic funds transfer
and only in the United States and no later than the later of (i) sixty
(60) days from the Account Debtor’s receipt of the invoice and (ii) sixty
(60) days after the Account Debtor has accepted the supplies delivered or the
services performed to which the invoice relates; (f) that has been validly
assigned to Buyer pursuant to the Assignment of Claims Act, and all payments
with respect thereto have been validly directed to be made directly to the
Segregated Account; (g) with respect to which, immediately following the
transfer of such Eligible Receivable to Buyer as contemplated by this
Agreement, the Borrower shall have good title to such Eligible Receivable, free
and clear of any Liens; (h) the sale and assignment of which by Seller to
Buyer does not contravene or conflict with any applicable laws or contractual
obligation or other restriction, limitation or encumbrance, and do not require
any consent that has not been obtained; (i) the contracts, documents,
instruments and other items with respect to which (i) contain customary
and enforceable provisions such that the rights and remedies of the holder
thereof are adequate for the practical realization against any related
collateral or purchased assets of the benefits of the security or ownership
thereof and (ii) do not contain any confidentiality (or any other)
provisions that would restrict the ability of Buyer to exercise its
powers,  rights and remedies under this
Agreement; (j) as to which the right to receive payments thereunder is an “account”
or a “payment intangible”, within the meaning of the UCC; (k) which arises
under contracts, documents, instruments and other items that (i) have been
duly authorized, are in full force and effect and constitute the legal, valid
and binding obligations of the related Account Debtor and Seller, enforceable
against such Account Debtor and Seller in accordance with their terms (except
as may be limited by bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally and the effects of general
principles of equity) and (ii) are not subject to any dispute, claim,
defense, offset or counterclaim; (l) as to which no portion of the Related
Security has been 

 

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released (in whole or in
part) from any Lien or security interest therein granted by the related Account
Debtor to the Seller; (m) which, together with the contracts, documents,
instruments and other items related thereto, do not contravene in any material
respect any Applicable Laws; (n) which arises under contracts, documents,
instruments and other items, none of the parties to which have done or failed
to do anything that would or might permit any other party thereto (other than
the Borrower in exercising its rights or remedies thereunder) to terminate any
such contracts, documents, instruments and other items or to suspend or reduce
any payments or obligations due or to become due thereunder at any time after
it becomes an Eligible Receivable; and (o) which at no point in time has
failed to meet each of the criteria to constitute an Eligible Receivable set
forth in subsections (a) through (m) above. Notwithstanding anything
in this definition to the contrary, the first three (3) invoices or the
last invoice with respect to any contract shall not be deemed an “Eligible
Receivable” unless (i) any such receivable is submitted and validated
through a web-based system such as “Wide Area Workflow” (WAWF) or (ii) KBC,
in its sole discretion, is satisfied with the verbal confirmation that KBC has
received from an appropriate government official that any such receivable is
proper and will be submitted for payment.

 

“Enrollment Fee” shall have the meaning set forth in Section 3.1
hereof.

 

“Environmental Law” shall mean all
requirements of applicable law and any permit, approval, authorization,
license, concession or permission from any governmental authority imposing
liability or standards of conduct for or relating to the regulation and
protection of human health, safety, the environment and natural resources,
including the United States Comprehensive Environmental Response, Compensation,
and Liability Act (42 U.S.C. §§ 9601 et  seq.), the Solid Waste
Disposal Act (42 U.S.C. §§ 6901 et  seq.), the Hazardous Materials
Transportation Act (49 U.S.C. §§ 5101 et  seq.), the Federal
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. §§ 136 et  seq.),
the Toxic Substances Control Act (15 U.S.C. §§ 2601 et  seq.), the
Clean Air Act (42 U.S.C. §§ 7401 et  seq.), the Federal Water
Pollution Control Act (33 U.S.C. §§ 1251 et  seq.), the
Occupational Safety and Health Act (29 U.S.C. §§ 651 et  seq.),
the Safe Drinking Water Act (42 U.S.C. §§ 300(f) et  seq.),
all regulations promulgated under any of the foregoing, all analogous
requirements of law and any environmental transfer of ownership notification or
approval statutes, including the Industrial Site Recovery Act (N.J. Stat. Ann.
§§ 13:1K-6 et  seq.).

 

“ERISA” shall mean the United States
Employee Retirement Income Security Act of 1974, as codified at 29 U.S.C. §
1001 et  seq. and the rules and regulations promulgated
thereunder.

 

“Event
of Default” shall have the meaning set forth in Section 9.1
hereof.

 

“Face Amount” shall mean, with respect to a Purchased
Receivable, the face amount of such Purchased Receivable as of the date Buyer
shall have delivered the Initial Purchase Price to Seller related to such
Purchased Receivable.

 

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“FAR” means the United States Federal
Acquisition Regulations, 48 C.F.R. Parts 1-53, as may be amended from time to
time.

 

“GAAP” means generally accepted accounting principles in the
United States of America in effect from time to time consistently applied
(except for accounting changes in response to releases of the Financial
Accounting Standards Board, or other authoritative pronouncements).

 

“Government” means the United States Federal Government or any
agency or instrumentality thereof.

 

“Government Contract” means any prime contract, purchase order,
task order, delivery order, teaming agreement, joint venture agreement,
strategic alliance agreement, basic ordering agreement, pricing agreement,
letter contract or other similar arrangement of any kind that are currently
active in performance between Seller, as an Eligible Contractor, and the
Government, which shall result in Eligible Receivables owed to Seller which may
be purchased by Buyer in accordance with this Agreement. A task, purchase or
delivery order under a Government Contract shall not constitute a separate
Government Contract, for purposes of this definition, but shall be part of the
Government Contract to which it relates.

 

“Government Contract Bid” shall mean quotations, bids and
proposals for awards of new Government Contracts  made
by Seller for which no award has been announced and for which Seller believes
there is a reasonable prospect that such an award to Seller may yet be made.

 

“Governmental Authority” shall mean any federal, state,
municipal, local or other governmental or regulatory department, commission,
board, bureau, agency, instrumentality, court or tribunal, in each case whether
of the United States of America, any political subdivision thereof or any
foreign jurisdiction.

 

“Indebtedness” shall mean, with
respect to any Person, without duplication, any of the following, whether or
not matured:  (a) all indebtedness
for borrowed money, (b) all other obligations evidenced by notes, bonds,
debentures or similar instruments, (c) all reimbursement and all other
obligations with respect to (i) letters of credit, bank guarantees or
bankers’ acceptances or (ii) surety, customs, reclamation or performance
bonds (in each case not related to judgments or litigation), (d) all
obligations to pay the deferred purchase price of property or services, (e) all
obligations created or arising under any conditional sale or other title
retention agreement, regardless of whether the rights and remedies of the
seller or lender under such agreement in the event of default are limited to
repossession or sale of such property, (f) all matured obligations under
any swap, cap, collar, forward purchase or similar hedging agreements or
arrangements dealing with interest rates, currency exchange rates or commodity
prices, either generally or under specific contingencies, (g) all
obligations of such Person under all leases which are capitalized in accordance
with GAAP and any financing leases involving substantially the same economic
effect, (h) any obligation, 

 

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contingent or otherwise, of
such Person directly or indirectly guaranteeing, or indemnifying any Person against
losses in respect of, any Indebtedness of any other Person, (i) all
Indebtedness referred to above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien upon or in property or other assets (including accounts and contract
rights) owned by such Person, even though such Person has not assumed or become
liable for the payment of such Indebtedness and (j) all other obligations
that would be recorded on a person’s balance sheet as a liability in accordance
with GAAP.

 

“Indirect Costs” shall have the
meaning ascribed to such term in 48 C.F.R. Section 2.101 and in FAR Part 31.

 

“Initial Purchase Price” shall have the meaning set forth in Section 2.3.1
hereof.

 

“Initial Purchase Price Rate” shall have the meaning set forth
in Section 2.3.1 hereof.

 

“KBC” shall mean KBC Bank, N.V., a banking institution organized
under the laws of the Kingdom of Belgium, acting through its New York Branch.

 

“Lien” shall mean any lien, security
interest or other charge, encumbrance, or other type of preferential
arrangement having the practical effect of a lien or security interest, of or
on any assets or properties of any Person in favor of any other Person,
including a conditional sale or title retention agreement.

 

“Material Adverse Effect” shall mean a circumstance or condition
affecting the business, assets, operations, properties, condition (financial or
otherwise), or prospects of Seller and/or the Purchased Receivables that could
materially adversely affect (a) the business, assets, operations,
properties, condition (financial or otherwise) or prospects of Seller, (b) the
ability of Seller to perform any of its obligations under this Agreement, (c) the
rights and remedies of Buyer under this Agreement, (d) the value,
existence or ownership of the Purchased Receivables or (e) the
collectability of the Purchased Receivables.

 

“Offer Notice” shall mean a notice, made either in writing or
via email, delivered to Buyer by Seller through which Seller shall offer to
sell Eligible Receivables for an amount greater than or equal to ten thousand
dollars ($10,000).

 

“PAF Rate” shall have the meaning set forth in Section 3.3
hereof.

 

“Person” shall mean any individual,
corporation, partnership, limited liability company, limited liability
partnership, joint venture, association, joint stock company, trust (including
any beneficiary thereof), unincorporated organization or government or any
agency or political subdivision thereof.

 

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“Plan” shall mean an employee benefit
plan within the meaning of Section 3(3) of ERISA which is subject to
Title IV of ERISA and maintained or contributed to by Seller, or any other plan
covered by Title IV of ERISA that covers the employees of Seller.

 

“Proceeding” shall mean any action,
suit, proceeding or litigation in equity or at law, or any other judicial or
administrative proceeding or investigation.

 

“Program Access Fees” shall have the meaning set forth in Section 3.3
hereof.

 

“Program Continuance Fee” shall have the meaning set forth in Section 3.4
hereof.

 

“Purchased Receivables” shall mean all Eligible Receivables
arising out of any invoice and other agreements identified on or delivered with
any Receivables Invoice delivered by Seller to Buyer which Buyer elects to
purchase pursuant to Section 2.2 hereof.

 

“RCA” shall mean RCA Funding, LLC.

 

“Receivables” shall mean (i) all of Seller’s receivables
listed on any Receivables Invoice and all rights to, but not the obligations under,
such contracts and any and all rights and security arising thereunder, (ii) all
monies due or to become due with respect to the foregoing and (iii) all
books and records related to any of the foregoing.

 

“Receivables Invoice” shall have the meaning set forth in Section 2.1
hereof.

 

“Related Security” shall mean, with respect to any Eligible
Receivable or other receivable, all of the Seller’s right, title, interest and
remedies in, to and under any and all contracts, documents, instruments and
other items related thereto, and all proceeds of the foregoing, including,
without limitation, (i) the right of the Seller to receive all scheduled
and unscheduled payments of all amounts payable in connection with such
Eligible Receivable or other receivable, (ii) the right, if any, of the
Seller to cause the repurchase of the Seller’s interest in such Eligible
Receivable or other receivable  and to
receive the purchase price, (iii) the right to enforce the Seller’s rights
and remedies under any purchase and sale, transfer or other applicable
assignment agreement, if any, with respect thereto, (iv) all Liens or
security interests and property subject thereto from time to time purporting to
secure any of the foregoing rights or interests, and the right to all collections
in respect thereof, if any, (v) all guarantees, casualty and other
insurance policies (including, without limitation, the right to receive all
returned premiums related thereto) and other agreements or arrangements of
whatever character from time to time supporting or securing or otherwise
related to such Eligible Receivable or other receivable and the related
contracts, documents, instruments and other items related thereto, (vi) all
Collections and all accounts to 

 

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which
Collections in respect of such Eligible Receivable or other receivable are
deposited (including the Segregated Account), (vii) all other information,
documents, instruments, servicing files, records and computer-readable media,
personal property, contract rights, servicing rights, escrow funds, and general
intangibles of whatsoever kind evidencing, comprising or relating to the
ownership or transfer of such Eligible Receivable or other receivable or the
servicing thereof and all other documents or instruments delivered to the
Seller with respect thereto and (viii) all proceeds of the foregoing.

 

“Residual Calculation Date” shall mean the [second] Business Day
immediately following the date that any Collections are collected with respect
to any Purchased Receivable; provided that the amount of such
Collections exceed the sum of the Initial Purchase Price of such Purchased
Receivable, plus the Discount Factor related to such Purchased
Receivable, plus any accrued Program Access Fees owed during the
applicable Accrual Period.

 

“Residual Payment Date” shall mean the Business Day immediately
following the Residual Calculation Date.

 

“Residual Purchase Price” shall have the meaning set forth in Section 2.3.2
hereof.

 

“Sale and Contribution Agreement”
shall mean that certain Sale and Contribution Agreement dated as of January 20,
2009, by and between RCA, as purchaser, and Buyer, as seller.

 

“Segregated  Account”
shall mean that segregated bank account, located at KBC, specified by Buyer to
Seller, in which any and all Collections shall be deposited.

 

“Seller Obligations” shall mean all advances, financial
accommodations, liabilities, obligations, covenants and duties owing, arising,
due or payable by Seller to Buyer of any kind or nature, present or future,
arising under or in connection with this Agreement or under any other document,
instrument or agreement, whether or not evidenced by any note, guarantee or
other instrument, whether arising on account or by overdraft, whether direct or
indirect (including those acquired by assignment) absolute or contingent,
primary or secondary, due or to become due, now owing or hereafter arising and
however acquired, including, without limitation, all Initial Purchase Prices,
Program Access Fees, interest, Deemed Collections, fees, expenses, professional
fees and attorneys’ fees and any other sums chargeable to Seller hereunder or
otherwise.

 

“Solvent” means, with respect any Person, that as of any day,
both (a) (i) the sum of such Person’s debts (including contingent and
unliquidated liabilities) does not exceed the present fair saleable value of
such Person’s present assets (both at fair value and fair saleable value); (ii) such
Person’s capital is not unreasonably small in relation to its business as
contemplated on such day; and (iii) such Person has not incurred and does
not intend to incur, and believes that it 

 

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will
not incur, debts including current obligations beyond its ability to pay such
debts as they become due (whether at maturity or otherwise); and (b) such
Person is  “solvent” within the meaning
given that term and similar terms under Applicable Laws relating to fraudulent
transfers and conveyances.  For purposes
of this definition, the amount of any contingent liability at any time shall be
computed as the amount that, in light of all of the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability (irrespective of whether such contingent
liabilities meet the criteria for accrual under Statement of Financial
Accounting Standard No. 5)

 

“Termination Fee” shall have the meaning set forth in Section 3.2
hereof.

 

“Truth in Negotiations Act” shall mean the Truth in Negotiations
Act of 1962, 10 U.S.C. § 2306(a), 41 U.S.C. § 254(b), as amended.

 

“UCC” shall mean the Uniform
Commercial Code as in effect from time to time in the State of New York, provided,
however, that, in the event that, by reason of mandatory provisions of
law, any of the attachment, perfection or priority of the Purchased Receivables
under this Agreement is governed by the Uniform Commercial Code as in effect in
a jurisdiction other than the State of New York, the term “UCC” shall mean the
Uniform Commercial Code as in effect in such other jurisdiction for purposes of
the provisions of this Agreement relating to such attachment, perfection or
priority and for purposes of definitions related to such provisions.

 

“Underwriter” shall mean Credit Risk Management LLC.

 

“Unpurchased Receivable” shall mean any Receivable that is not a
Purchased Receivable.

 

“USA Patriot Act” shall mean the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act (Title II of Pub. L. 107-56 (signed into law October 26,
2001)).

 

SECTION 2

PURCHASE AND SALE OF RECEIVABLES

 

2.1           Delivery of
Invoices; Validation of Receivables.  During the Availability Period, and
simultaneously with the delivery of the same to any Account Debtor, Seller
shall deliver to Buyer and KBC any and all invoices prepared relating to
Receivables arising under contracts with an Account Debtor for which Seller has
assigned the rights to receive payments therefrom to Buyer or Buyer’s designee
(each, a “Receivables Invoice”). Upon receipt of any Receivables
Invoices, Buyer shall perform, or shall cause another Person to perform, any
and all due diligence necessary to determine which Receivables set forth in the
Receivables Invoices are Eligible Receivables.

 

2.2           Offer and
Acceptance of Receivables.  At
any time during the Availability Period, provided that there does not then
exist any Event of Default or any event that, 

 

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with
notice, lapse of time or otherwise, would constitute an Event of Default,
Seller may deliver to Buyer an Offer Notice; provided, however,
that Seller shall not deliver more than three (3) Offer Notices to Buyer
in any calendar week. Within two (2) Business
Days of Buyer’s receipt of an Offer Notice (the “Acceptance Date”),
Buyer shall (i) deliver to Seller a Confirmation List and (ii) and
pay to Seller by wire transfer an amount equal to the Initial Purchase Price of
each Eligible Receivable set forth on such Confirmation List, it being hereby
agreed to and accepted that the satisfaction of items (i) and (ii) above
shall evidence Buyer’s acceptance to purchase the Eligible Receivables set
forth on the Confirmation List. Notwithstanding the foregoing, Buyer shall have
no obligation to purchase all or any portion of Eligible Receivables set forth
in any Offer Notice or to give a Confirmation List. Upon Buyer’s acceptance of
any Eligible Receivable as set forth in this Section 2.2, such
Eligible Receivable shall become a “Purchased Receivable”; provided,
however, that it shall be a condition to the payment of each Initial
Purchase Price that: (i) all of the conditions, representations,
warranties and covenants set forth herein be true and correct on and as of the
Acceptance Date as though made at and as of each such date, and (ii) no
Event of Default, or any event or condition that with notice, lapse of time or
otherwise would constitute an Event of Default, shall have occurred and be
continuing, or would result from the payment of such Initial Purchase Price.

 

2.3           Purchase Price of Receivables.

 

2.3.1        Initial Purchase Price.  As set forth in Section 2.2
hereof, Buyer shall pay to Seller an amount equal to ninety  percent
(90%) (the “Initial Purchase Price Rate”)
of the Face Amount of each Eligible Receivable set forth in any Confirmation
List (each, an “Initial Purchase Price”). The Initial Purchase Price
Rate shall remain in effect throughout the term of this Agreement.

 

2.3.2        Residual Purchase Price.  Provided that there does not then exist an Event
of Default or any event or condition that, with notice, lapse of time or
otherwise, would constitute an Event of Default, Buyer shall pay to Seller by
wire transfer on the Residual Payment Date, the amount, if any, which Buyer
owes to Seller on such Residual Payment Date, according to the accounting
prepared by Buyer as of such Residual Calculation Date (the “Residual
Purchase Price”). For each individual Purchased Receivable, the Residual
Purchase Price shall be an amount equal to: (A) the total amount of
Collections related to such Purchased Receivable as of the Residual Calculation
Date; minus (B) the sum of (i) the Initial Purchase Price paid
for such Purchased Receivable, plus (ii) the Discount Factor owed
with respect to such Purchased Receivable, plus (iii) the total as
of the Residual Calculation Date of (a) any and all accrued and unpaid
Program Access Fees multiplied by a fraction, the numerator of which is equal
to the total amount of Collections collected in such applicable Accrual Period
and the denominator of which is the average daily Account Balance during such
applicable Accrual Period, (b) Deemed Collections related to such
Purchased Receivable, and (c) any other amounts due, including
professional fees and expenses, as set forth in Section 10.2 hereof
for which oral or written demand has been made by Buyer to Seller as of the
Residual Calculation Date to the extent Buyer has agreed to accept payment
thereof by deduction from the Residual Purchase Price.

 

11

 

2.4           Effectiveness
of the Sale to Buyer.  Effective
upon Buyer’s payment of the Initial Purchase Price, and for and in
consideration therefore and in consideration of the covenants of this
Agreement, Seller hereby absolutely sells, transfers and assigns to Buyer, all
of Seller’s right, title and interest in and to each Purchased Receivable and
any Related Security and all monies due or which may become due on or with
respect to such Purchased Receivable and any Related Security. Buyer shall be
the absolute owner of each Purchased Receivable and any Related Security. Buyer
shall have, with respect to any goods related to the Purchased Receivable and
any Related Security, all the rights and remedies of an unpaid seller under the
UCC and other applicable laws, including the rights of replevin, claim and
delivery, reclamation and stoppage in transit.

 

2.5           Unpurchased
Receivables.  In the
event that any collections deposited into the Segregated Account relate to an
Unpurchased Receivable, Buyer shall remit, or shall cause RCA or KBC to remit,
all such collections to Seller within the two (2) Business Days
immediately following such collection, provided that the Seller has submitted
the proper banking information and invoice documentation required by the Buyer.

 

2.6           True Sales.

 

2.6.1        Each of Buyer
and Seller intend the transactions hereunder to constitute true sales of
Purchased Receivables by Seller to Buyer providing Buyer with the full benefits
of ownership thereof, and no party hereto intends the transactions contemplated
hereunder to be, or for any purpose to be characterized as, a loan from or
through Buyer to Seller.

 

2.6.2        In the event,
but only to the extent, that the conveyance of Purchased Receivables by Seller
hereunder is characterized by a court or other governmental authority as a loan
rather than a sale, Seller shall be deemed hereunder to have granted to Buyer
effective as of the date of the first purchase under this Agreement, a security
interest in all of Seller’s right, title and interest in, to and under all of
the Purchased Receivables sold by it, whether now or hereafter owned, existing
or arising. Such security interest shall secure any and all rights of, and
payments owed to, Buyer under this Agreement, whether now or hereafter existing
or arising, due or to become due, direct or indirect, absolute or contingent.
Buyer shall have, with respect to the property described in this Section 2.6.2,
and in addition to all the other rights and remedies available to Buyer under
this Agreement and applicable law, all the rights and remedies of a secured
party under the UCC, and this Agreement shall constitute a security agreement
under applicable law.

 

SECTION 3

FEES; ACCOUNTING

 

3.1           Enrollment Fee. Immediately
upon the execution of this Agreement, Seller shall pay to Buyer an amount equal
to fifteen thousand  dollars  ($15,000) (the “Enrollment
Fee”) in consideration of Buyer’s commitment to purchase Receivables
hereunder.

 

12

 

3.2           Termination Fee.  In the event that Seller terminates this
Agreement prior to the end of the term of this Agreement as set forth in Section 10.10
hereof, Seller shall pay to Buyer an amount equal to zero  dollars  ($0) (the “Termination Fee”) in consideration for
such early termination of this Agreement. The Termination Fee shall be paid to
Buyer within twenty (20) days of such early termination, and may be charged to
Seller directly or offset from any Residual Purchase Price or Unpurchased
Receivable payments owed to Seller at or after the time at which such
Termination Fee arises.

 

3.3           Program Access
Fees.  On each Residual Payment Date,
Buyer shall, or shall cause KBC to, deduct from any Collections an amount equal
to the sum of .0181%  (the “PAF
Rate”) of the daily ending Account Balance for each day during the
applicable Accrual Period (the “Program Access Fees”). At all times
throughout the term of this Agreement, as set forth in Section 10.10
hereof, Buyer shall have the right to adjust the PAF Rate as Buyer may deem
necessary to account for any material changes in the direct, third party
charges that are payable by Buyer in connection with the Purchased Receivables,
including, without limitation, any servicing fees, underwriting fees and
licensing fees; provided, however, that the PAF Rate shall be
adjusted no more frequently that once per calendar quarter and any increase
shall be effective upon thirty (30) days prior written notice to Seller.

 

3.4           Program
Continuance Fee.  Throughout
the term of this Agreement, as set forth in Section 10.10 hereof,
Seller shall pay to Buyer a quarterly fee equal to three thousand seven hundred
and fifty  dollars ($3,750) (the “Program Continuance Fee”) if the average
daily use of the facility is less than $2,250,000; provided, however,
that Buyer, may reduce, in whole or in part, the Program Continuance Fee
assessed in a given calendar quarter based on Buyer’s review of the
collectability of the Purchased Receivables and the amount of Receivables
Seller elects to sell to Buyer hereunder.

 

3.5           Discount Factor. On each
Residual Payment Date, Buyer shall, or shall cause to, deduct from any
Collections an amount equal to .524% (the “Discount Factor Rate”) of the
Face Amount of each Purchased Receivable for which the Residual Purchase Price,
if any, is paid on such Residual Payment Date (the “Discount Factor”).
At all times throughout the term of this Agreement, as set forth in Section 10.10
hereof, Buyer shall have the right to adjust the Discount Factor Rate in its
sole discretion as Buyer may deem necessary to account for adjustments in the
purchase prices of Receivables hereunder; provided, however, that
the Discount Factor Rate may only be adjusted as of the first day of each
calendar month, and only shall be applied prospectively.

 

3.6           Accounting.  Buyer shall prepare and send to Seller on
each Residual Calculation Date, an accounting of the transactions as of such
Residual Calculation Date, including the amount of all Purchased Receivables,
Collections and Program Access Fees. The accounting shall be deemed correct and
conclusive unless Seller makes written objection to Buyer within thirty (30)
days after Buyer delivers the accounting to Seller.

 

13

 

SECTION 4

NO RECOURSE; DEEMED COLLECTIONS

 

4.1           No Recourse.  Subject to Section 4.2 hereof,
the purchase and sale of Receivables under this Agreement shall be without
recourse to Seller for non-payment of Purchased Receivables due to credit
problems of the Account Debtor; provided, however, that Seller
shall be liable to Buyer for (i) any and all fraudulent statements related
to any Receivable contained in the Receivables Invoices or otherwise and (ii) any
breach of  any representations,
warranties, covenants and indemnities made by Seller pursuant to the terms of
this Agreement, it being understood that such Obligations of Seller will not
arise on account of the failure of the Account Debtor for credit reasons to
make any payment in respect of a Purchased Receivable.

 

4.2           Deemed
Collections; Repurchase

 

4.2.1        If on any  day
the Account Balance is reduced or adjusted as a result of any defective,
rejected or returned merchandise or services, any cash discount, any credit,
any incorrect billing, pricing adjustment or any other adjustment by Seller or
is reduced or canceled as a result of a setoff in respect of any claim by the
Account Debtor thereof against Seller (whether such claim arises out of the
same or a related or unrelated transaction) or as a result of any dispute or
any obligation of Seller to pay to the related Account Debtor any rebate or
refund, or to rework any product or service, Seller shall directly deposit into
the Segregated Account in immediately available funds an amount equal to the
Deemed Collections of such reduction or adjustment.

 

4.2.2        If on any day
any of the representations or warranties herein are not true with respect to
any Purchased Receivable as of the date it was sold hereunder, Seller shall
directly deposit into the Segregated Account in immediately available funds an
amount equal to the portion of the Account Balance related to such Purchased
Receivable for application by KBC to the same extent as if Collections
pertaining to such Purchased Receivable had actually been received on such
date.

 

4.2.3        If and to the
extent that Buyer shall be required for any reason to pay over to the Account
Debtor (or any trustee, receiver, custodian or similar official in the event of
bankruptcy, etc.) any amount received by it hereunder, such amount shall be
deemed not to have been so received but rather to have been retained by Seller
and, accordingly, Buyer shall have a claim against Seller for such amount,
payable when and to the extent that any distribution from or on behalf of
Seller is made in respect thereof.

 

4.2.4        If on any day,
and for any reason, a Purchased Receivable is determined to not have qualified
as an Eligible Receivable as of the date such Purchased Receivable was
purchased by Buyer from Seller in accordance with this Agreement or at any time
thereafter, Seller shall deposit directly into the Segregated Account in
immediately available funds an amount equal to the Initial Purchase Price plus
any Residual Purchase Price paid with respect to such Purchased Receivable and
any and all costs incurred by Buyer in connection with such determination and
adjustment, including reasonable fees and disbursements of counsel, within
twenty-five (25) days of Seller’s 

 

14

 

receipt
of notice of such determination. Seller shall deposit directly into the
Segregated Account any amounts arising under this Section 4.2.4.

 

SECTION 5

POWER OF ATTORNEY; SERVICING OF PURCHASED RECEIVABLES; 

ADDITIONAL RIGHTS

 

5.1           Power of Attorney.  Seller does hereby irrevocably appoint Buyer
and its successors and assigns as Seller’s true and lawful attorney in fact,
and hereby authorizes Buyer, regardless of whether there has been an Event of
Default, (i) to sell assign, transfer, pledge, compromise or discharge the
whole or any part of the Purchased Receivables, (ii) to demand, collect,
receive, sue, and give releases to any Account Debtor for the monies due or
which may become due upon or with respect to the Purchased Receivables and to
compromise, prosecute or defend any Proceeding relating to the Purchased
Receivables, including the filing of a claim or the voting of such claims in
any bankruptcy case, all in Buyer’s name or Seller’s name, as Buyer may choose,
(iii) to prepare, file and sign Seller’s name on any notice, claim,
assignment, demand, draft or notice of or satisfaction of lien or mechanics’
lien or similar document with respect to Purchased Receivables, (iv) to
notify all Account Debtors with respect to the Purchased Receivables to pay
Buyer directly, (v) to receive, open and dispose of all mail addressed to
Seller for the purpose of collecting Purchased Receivables (provided, however,
that any mail of Seller not related to collecting Purchased Receivables shall
be promptly returned to Seller), (vi) to endorse Seller’s name on any
checks or other forms of payment on the Purchased Receivables, (vii) to
execute on behalf of Seller any and all instruments, documents, financing
statements and the like to perfect Buyer’s interests in the Purchased
Receivables, as set forth herein, (viii) to make any ministerial corrections
to invoices related to Purchased Receivables in order to ensure their timely
payment, and (ix) to do all acts and things necessary or expedient in
furtherance of any such purposes. If Buyer receives a wire transfer or item
which is payment for both a Purchased Receivable and another Receivable, the
funds shall first be applied to the Purchased Receivable and, so long as there
does not exist an Event of Default or an event that with notice, lapse of time
or otherwise would constitute an Event of Default, the excess shall be remitted
to Seller. Upon the occurrence and continuation of an Event of Default, all of
the power of attorney rights granted by Seller to Buyer hereunder shall be
applicable with respect to all Purchased Receivables.

 

5.2           Servicing of Purchased
Receivables. Subject to Buyer’s ownership of the Purchased
Receivables, KBC shall have the sole right to service, administer and collect
the Purchased Receivables, to assign such right and to delegate such right to
others. In consideration of Buyer’s purchase of the Purchased Receivables,
Seller agrees to cooperate fully with Buyer and/or KBC to facilitate the full
and proper performance of such duties and obligations for the benefit of Buyer,
RCA and/or KBC. To the extent that Buyer, individually or through KBC, has
granted or grants powers of attorney to RCA or to KBC, Seller hereby grants a
corresponding power of attorney on the same terms to RCA or KBC. Seller hereby
acknowledges and agrees that Buyer, in all of its capacities, may assign to RCA,
which in turn may assign to KBC for the benefit of RCA such powers of attorney
and other rights and interests granted by Seller to Buyer pursuant to Section 5.1
hereof, and agrees to cooperate fully with KBC in the exercise of such rights. 

 

15

 

Notwithstanding
anything herein to the contrary, to the extent that (i) Seller desires to
withdraw a contract with an Account Debtor from eligibility under the
Receivables purchase program contemplated by this Agreement and (ii) all
Collections relating to all Purchased Receivables arising under such contract
have been received in full by Buyer, then Buyer, for itself and on behalf of
its Affiliates, agrees to take all commercially reasonable efforts to cooperate
with Seller to cause such contract and any and all accounts receivable arising
thereunder to be reassigned to Seller.

 

5.3           Rights of Buyer; Enforcement
Rights.

 

5.3.1        Buyer shall
account for all collections of Receivables, but shall have no obligation to
replace, to substitute or to return any Purchased Receivables to Seller. Buyer
shall have no obligation to return to Seller, Collections, or any interest or
fees collected pursuant thereto, without regard to whether such Collections and
fees are in excess of the Initial Purchase Prices and Residual Purchase Prices
paid for such Purchased Receivables. Notwithstanding anything contained herein
to the contrary, if an Event of Default occurs, then Buyer shall be obligated
to return any and all collections of Receivables to which Seller is entitled
after all of Seller’s obligations arising under this Agreement have been paid
in full.

 

5.3.2        Buyer shall
have the unrestricted right to further assign, transfer, deliver, hypothecate,
subdivide or otherwise deal with the Purchased Receivables,
and all of Buyer’s right, title and interest in, to and under this Agreement,
on whatever terms Buyer shall determine.

 

5.3.3        Buyer shall
have the sole right to retain any gains or profits created by buying, selling
or holding the Purchased Receivables and, except as expressly set forth in the
this Agreement, shall have the sole risk of and responsibility for losses or
damages created by such buying, selling or holding.

 

SECTION 6

CONDITION TO PURCHASES

 

6.1           Conditions
Precedent to Initial Purchases. The initial purchase of
Purchased Receivables under this Agreement is subject to the condition
precedent that Buyer shall have received each of the following (with copies to
KBC), on or before the date of such purchase, each in form and substance
satisfactory to Buyer and KBC:

 

6.1.1        This Agreement,
duly executed by the parties hereto, together with evidence reasonably
satisfactory to Buyer that all conditions precedent to the initial purchase of
Purchased Receivables shall have been met;

 

6.1.2        Certificates of
officers of Seller certifying (i) a copy of the resolutions of its Board
of Directors, or similar governing body, approving this Agreement to be
delivered by it hereunder and the transactions contemplated hereby; (ii) the
names and true signatures of the officers authorized on its behalf to sign this
Agreement to be delivered by it hereunder, (iii) a copy of its by-laws or
operating 

 

16

 

agreement,
as the case may be, and (iv) all documents evidencing other necessary
corporate action and governmental approvals, if any, with respect to this
Agreement;

 

6.1.3        Seller’s
certificate of incorporation or formation, as the case may be, duly certified
by the appropriate government official in the state where Seller is organized,
as of a recent date acceptable to Buyer;

 

6.1.4        If necessary,
acknowledgment copies or time stamped receipt copies, of the proper financing
statements that have been duly executed and name Seller as the debtor and Buyer
as the secured party and purchaser of the Receivables or other, similar
instruments or documents, which will be assigned to RCA to the extent that such
receivables are purchased by RCA under the Sale and Contribution Agreement,  as may be necessary or desirable under the
UCC or any comparable law of all appropriate jurisdictions to perfect Buyer’s
ownership interest in all Receivables in which an ownership interest may be
assigned to it hereunder; and

 

6.1.5        Such other
agreements, instruments, UCC financing statements, certificates, opinions and
other documents as Buyer or KBC may reasonably  request.

 

6.2           Conditions
Precedent to All Purchases Each purchase under this
Agreement is subject to the condition precedent that the agreement of Seller to
sell Receivables, and the agreement of Buyer to purchase Receivables, shall not
have terminated under the terms of this Agreement, and shall be subject further
to the conditions precedent that:

 

6.2.1        In the case of
each purchase, Seller shall have delivered to KBC prior to such purchase (i) all
Receivables Invoices with respect to the immediately preceding calendar month
and (ii) an Offer Notice, together with such additional information as may
be reasonably requested by Buyer or KBC;

 

6.2.2        Seller shall
have delivered acknowledgment copies of proper financing statements, if any,
necessary to release all security interests and other rights of any Person in
the Purchased Receivables previously granted by Seller;

 

6.2.3        Seller shall
have delivered to Buyer any and all financial statements of Seller required
under this Agreement or reasonably requested by Buyer;

 

6.2.4        Prior to the
sale of any Receivables hereunder, Seller shall (i) execute all other
agreements, instruments, notices, forms and documents and shall perform all further
acts which Buyer may require with respect to the Purchased Receivables to
ensure compliance with the Assignment of Claims Act, and all applicable
regulations issued pursuant thereto, (ii) cause to be filed or submitted
with the Government any and all agreements, instruments, notices, forms and
documents required pursuant to the Assignment of Claims Act and all applicable
regulations issued pursuant thereto, and (iii) have received, prior to the
sale of any Purchased Receivables under this Agreement, any and all necessary
and applicable approvals and consents from the Government pursuant to
Assignment of Claims Act and all applicable regulations issued pursuant
thereto;

 

17

 

6.2.5        Since March 31,
2009, no event or events shall have occurred which have had or could reasonably
be expected to have, individually or in the aggregate, a Material Adverse
Effect;

 

6.2.6        No Event of
Default or shall have occurred and be continuing or be imminent or pending or
result from the purchase of the Purchased Receivables;

 

6.2.7        Buyer and
Seller shall have provided any information reasonably requested by the other
party under or in connection with the USA Patriot Act;

 

6.2.8        Buyer shall
have completed any due diligence or shall have received and be satisfied in its
sole discretion with any and all confirmations related to Seller as an Eligible
Contractor or the Receivables as Eligible Receivables;

 

6.2.9        Buyer shall
have completed and be satisfied in its sole discretion any and all due
diligence performed by Buyer relating to Seller, the Receivables or any
transactions contemplated herein, and Buyer shall have approved the invoice
relating to, and be satisfied with, the Initial Purchase Price being paid by
Buyer for each Purchased Receivables sold under this Agreement;

 

6.2.10      Seller shall
have been found to have met any and all requirements of the Underwriter’s
annual review set forth in the Contractor Review Agreement.

 

6.2.11      The
representations and warranties contained herein are true and correct on and as
of such day as though made on and as of such day and shall be deemed to have
been made on such day (except that any such representation or warranty that is
expressly stated as being made only as of a specified earlier date shall be
true and correct in all material respects as of such earlier date).

 

6.3           Certification
as to Representations and Warranties.  Seller, by accepting the Initial Purchase
Price paid for each purchase of Purchased Receivables on any day, shall be deemed
to have certified that its representations and warranties contained herein are
true and correct on and as of such day, with the same effect as though made on
and as of such day (except that any such representation or warranty that is
expressly stated as being made only as of a specified earlier date shall be
true and correct in all material respects as of such earlier date).

 

6.4           Effect of
Payment of Purchase Price.  Upon
the payment of the Initial Purchase Price for any purchase of Purchased
Receivables, title to such Purchased Receivables shall vest in Buyer, whether
or not the conditions precedent to such purchase were in fact satisfied; provided
that Buyer shall not be deemed to have waived any claim it may have under this
Agreement for the failure by Seller  in
fact to satisfy any such condition precedent.

 

18

 

SECTION 7

REPRESENTATIONS AND WARRANTIES

 

7.1           Representations
and Warranties.  In order to
induce Buyer to enter into this Agreement and to make purchases thereunder,
Seller hereby represents and warrants as follows:

 

7.1.1        Organization
and Good Standing.  Seller has
been duly organized and is validly existing as a corporation in good standing
under the laws of the jurisdiction of its organization, with power and
authority to own its properties and to conduct its business as such properties
are presently owned and such business is presently conducted.

 

7.1.2        Due
Qualification.  Seller is
duly qualified to do business as a foreign corporation in good standing, and
has obtained all necessary licenses and approvals, in all jurisdictions in
which the ownership or lease of property or the conduct of its business
requires such qualification, licenses or approvals except where the failure to
so qualify or have such licenses or approvals has  not had, and
could not reasonably be expected to have, a Material Adverse Effect.

 

7.1.3        Power and
Authority; Due Authorization.  Seller (A) has all necessary power,
authority and legal right to (i) execute and deliver this Agreement, (ii) carry
out the terms of this Agreement, and (iii) sell and assign the Receivables
on the terms and conditions herein provided and (B) has been duly
authorized by all necessary corporate and other action to the execute, deliver
and perform its obligations under this Agreement.

 

7.1.4        Binding
Obligations.  This
Agreement constitutes a legal, valid and binding obligation of Seller,
enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors’ rights generally and by general
principles of equity, regardless of whether such enforceability is considered
in a Proceeding.

 

7.1.5        No Violation.  The consummation of the transactions
contemplated by this Agreement and the fulfillment of the terms hereof will not
(i) conflict with, result in any breach of any of the terms and provisions
of, or constitute (with or without notice or lapse of time or both) a default
under Seller’s articles of incorporation or certification of formation, by-laws
or operating agreement, each as the case may be, or any other Obligation, (ii) result
in the creation or imposition of any Lien upon Seller’s properties pursuant to the terms of any such contractual
obligation, other than this Agreement, or (iii) violate any applicable
law.

 

7.1.6        No Proceedings.  Except as set forth on Schedule 7.1.5
attached hereto, there is no litigation, Proceeding or investigation pending
or, to the best of Seller’s knowledge, threatened, before any governmental
authority or arbitrator (i) asserting the invalidity of this Agreement, (ii) seeking
to prevent the sale and assignment of the Receivables, the collectability of
the Receivables or the consummation of any of the other transactions
contemplated by this Agreement, or (iii) seeking any determination or
ruling that could reasonably be expected to have a Material Adverse Effect.

 

19

 

7.1.7        Government
Contract Regulatory Matters.

 

7.1.7.1     Compliance with Contract Requirements.  (i) Seller has fully complied with all
material terms and conditions of each Government Contract to which it is a
party, and has performed in all material respects all obligations required to
be performed by it thereunder, (ii) Seller has complied with all statutory
and regulatory requirements, including, without limitation, the Federal
Property and Administrative Services Act, the FAR, any applicable agency
specific acquisition regulation, related cost principles, and the cost
accounting standards, where and as applicable to each of the Government
Contracts and the Government Contract Bids, and (iii) the representations,
certifications and warranties made by Seller with respect to the Government
Contracts or Government Contract Bids were accurate as of their effective dates
and Seller has fully complied in all material respects with all such
certifications.  Seller has not received
a substantially adverse or negative government past performance evaluation or
rating for the past ten (10) years that could be reasonably expected to
adversely affect the evaluation by the Government or proposals for future
Government Contracts.

 

7.1.7.2     Notice of Non-Compliance. With respect
to any Government Contract with Seller, neither the Government, any prime
contractor or higher-tier subcontractor under a Government Contract nor any
other Person has notified Seller in writing of any actual or alleged violation
or breach of any statute, regulation, representation, certification, disclosure
obligation, contract term, condition, clause, provision or specification,
including, without limitation, the Procurement Integrity Act, the Service
Contract Act, the Trade Agreements Act and the Buy American Act, that could be
reasonably expected to adversely affect the collectability of any Purchased
Receivable or adversely affect the award of Government Contracts to Seller in
the future.

 

7.1.7.3     False Claims, Defective Pricing and Requests for
Pricing Reductions.  Seller is
not party to any ligation and has taken no action that could reasonably be
expected to give rise to (i) liability under the False Claims Act, (ii) a
claim for price adjustment under the Truth in Negotiations Act or (iii) any
other request for a material reduction in the price of any Government
Contracts.

 

7.1.7.4     Termination for Default or Convenience.  (i) Seller has not received any written
or oral show cause, cure, deficiency, default or similar notice relating to any
Government Contracts, (ii) no termination for default, cure notice or show
cause notice has been issued or threatened and remains unresolved with respect
to any Government Contract or Government Contract Bid, and no event, condition
or omission has occurred or exists that would constitute grounds for such action,
(iii) no past performance evaluation received by Seller with respect to
any such Government Contract has set forth a default or other material failure
to perform thereunder or termination or default thereof, (iv) there has
not been any material withholding or setoff under any Government Contract, (v) all
invoices and claims (including requests for progress payments and provisional 

 

20

 

costs payments) submitted under each Government Contract were current,
accurate and complete in all material respects as of their submission date and (vi) none
of the execution, delivery or performance of this Agreement and any other
consents, certificates or deliverables required herein does or will conflict
with or result in a material breach of or default under any Government Contract
or cause a termination of any Government Contract due to loss of preferential
status.  Seller has not received any
written or oral notice terminating any of the Government Contracts for convenience
or indicating an intent to terminate any of the Government Contracts for
convenience.

 

7.1.7.5     Disputes and Claims.  Seller has not received any written notice of
any outstanding material claims or contract disputes to which Seller is a party
(i) relating to the Government Contracts or Government Contract Bids and
involving either the Government, any prime contractor, any higher-tier
subcontractor, vendor or any third party; or (ii) relating to the
Government Contracts under the Contract Disputes Act or any other federal
statute.

 

7.1.7.6     Suspension and Debarment.  Neither Seller, any of Seller’s affiliates
nor any of Seller’s respective managers, directors, officers or employees in
connection with the performance of the duties for or on behalf of Seller or any
of Seller’s affiliates has been debarred, suspended, proposed for suspension or
debarment from bidding on any Government Contract, declared nonresponsible or
ineligible, or otherwise excluded from participation in the award of any
Government Contract or for any reason been listed on the List of Parties
Excluded from Federal Procurement and Non-procurement Programs.  Within the last ten (10) years, no
debarment, suspension or exclusion proceeding has been initiated against
Seller, any of Seller’s affiliates or any of their respective directors,
officers or employees in connection with the performance of the duties for or
on behalf of Seller or any of Seller’s affiliates.  No circumstances exist that would reasonably
warrant the institution of suspension or debarment proceedings against Seller,
any of Seller’s affiliates or any of their respective managers, directors,
officers or employees in connection with the performance of the duties for or
on behalf of Seller or any of Seller’s affiliates.

 

7.1.7.7     Responsibility Determinations. No negative
determination of responsibility has been issued against Seller since its
inception with respect to any quotation, bid or proposal for a Government
Contract.

 

7.1.7.8     Audits, Investigations and Enforcement Actions.  Except as described in Schedule 7.1.7.8
attached hereto, no audit, review, inspection, investigation, survey or
examination of Seller’s records by the Government is threatened or pending; (ii) Seller
has not received any official notice that it is being specifically audited or
investigated by the Government Accountability Office, the DCAA, any state or
federal agency Inspector General, the contracting officer with respect to any
Government Contract, or the U.S. Department of Justice (including any U.S.
Attorney); and (iii) Seller has not received any written notice or
otherwise become aware that any audit, review, inspection, investigation,
survey or examination of records described in the attached 

 

21

 

schedule, has revealed any fact, occurrence or practice that could
reasonably be expected to adversely effect Seller.

 

7.1.7.9     Disclosure.  Seller has not made any disclosure to the
Government or other customer or prime contractor or higher-tier subcontractor
related to any suspected, alleged or possible violation of a material
requirement of a Government Contract, any apparent or alleged material
irregularity, misstatement or omission arising under or relating to a
Government Contract or Government Contract Bid, or any violation of Law or
regulation relating to a Government Contract or Government Contract Bid.

 

7.1.7.10       No Violations.  Seller has not engaged in or been charged
with, or received or been advised in writing of any charge, investigation, claim
or assertion of, nor has Seller, any of its directors, officers or employees in
their capacities as such been subject to any criminal indictment or
information, lawsuit, subpoena, civil investigative demand, discovery request,
administrative proceeding, voluntary disclosure, claim, dispute, mediation or
arbitration with regard to, any material violation of any requirement
pertaining to a Government Contract or Government Contract Bid, including
material violations of any statutory or regulatory requirements or violations
of any applicable laws relating thereto.

 

7.1.7.11       No Litigation.  Seller has not taken any action and is not a
party to any litigation that could reasonably be expected to give rise to (i) a
claim for price adjustment under the Truth in Negotiations Act; or (ii) any
other request for a material reduction in the price of any Government Contract,
including but not limited to claims based on actual or alleged defective
pricing.  To Seller’s best knowledge,
there exists no basis for a claim of any liability of Seller by the Government
as a result of defective cost and pricing data submitted to the Government.
Seller is not participating in any pending claim and Seller is unaware of any
potential claim under the Contract Disputes Act against the Government or any
prime contractor, subcontractor or vendor arising under or relating to any
Government Contract or Government Contract Bid.

 

7.1.7.12       DCAA-Approved Rates.  All Direct Costs and Indirect Cost rates are
being billed by Seller under the Government Contracts consistent with
DCAA-approved rates or provisional rate agreements.

 

7.1.7.13       National Security
Obligations.  Seller is
in compliance with all applicable national security obligations, including
those specified in the National Industrial Security Program Operating Manual,
DOD 5220.22-M (January 1995), and any supplements, amendments or revised
editions thereof.

 

7.1.7.14       No Events of Omissions.  To Seller’s best knowledge, there are no
events or omissions that would reasonably be expected to result in (i) a
material claim against Seller by the Government or any prime contractor,
subcontractor, vendor, or other third party arising under or relating to any
Government Contract or Government Contract Bid; or (ii) a material dispute

 

22

 

between Seller and the Government or any prime contractor,
subcontractor, vendor, or other third party arising under or relating to any
Government Contract or Government Contract Bid.

 

7.1.7.15       Losses and Cost Overruns; No
Improper Payments.  No
Government Contract has incurred or currently projects losses or cost overruns
in an amount exceeding fifty thousand dollars ($50,000).  No payment has been made by Seller, or by a
Person acting on Seller’s behalf, to any Person (other than to any bona fide
employee or agent of Seller, as defined in subpart 3.4 of the FAR), which
is or was improperly contingent upon the award of any Government Contract or
which would otherwise be in violation of any applicable procurement law or
regulation or any other applicable laws.

 

7.1.7.16       Costs Allowable.  All of Seller’s costs (both Direct Costs
and/or Indirect Costs) that have been, prior to the date hereof, charged to any
Government Contract are allowable in accordance with applicable cost accounting
standards and cost principles (except for costs properly charged to a reserve
account appearing on Seller’s balance sheet as of the close of March 31,
2009).

 

7.1.8        Assignment of
Claims Act.  Prior to
each sale of Purchased Receivables hereunder, all steps shall have been taken
necessary or appropriate under the Assignment of Claims Act to insure that (i) each
Purchased Receivable being sold has been validly assigned to Buyer, or Buyer’s
designee, as bona fide financing institution(s), (ii) Seller has validly
assigned such Purchased Receivables to Buyer, or Buyer’s designee, and (ii) all
payments and Collections with respect to such Purchased Receivables have been
validly directed to be made directly to the Segregated Account.

 

7.1.9        Government
Approvals.  Except as
set forth or required herein, no governmental action, approval or consent is
required for the due execution, delivery and performance by Seller of this
Agreement.

 

7.1.10      Quality of
Title; Valid Sale; No Other Liens.

 

7.1.10.1   Seller is the sole legal and beneficial owner of the
Receivables, free and clear of any Lien. Without limiting the generality of the
foregoing, no security agreement, financing statement or other public notice
with respect to all or any part of the Receivables that evidences a Lien
securing any indebtedness of Seller is on file or of record in any public
office, except such as may have been filed in favor of Buyer pursuant to this
Agreement.

 

7.1.10.2   Seller acquired its rights in the Receivables in
good faith without notice of any Lien as defined in the UCC, except as set
forth in Section 7.1.10.1  hereof.

 

7.1.10.3   Seller has not authorized the filing of and is not
aware of any financing statements against Seller that include a description of
collateral covering the Receivables other than any financing statements
relating to any Receivables sold to Buyer hereunder.

 

23

 

7.1.10.4         There are no judgment lien
or tax lien filings against Seller. Except as set forth in this Agreement,
Seller has not, pledged, assigned, sold, granted a security interest in or
otherwise conveyed or disposed of any interest in any of the Receivables.

 

7.1.10.5         Each Receivable constitutes
an “account” as such term is defined in the UCC.

 

7.1.11      Accuracy of
Information.  Each
report, information, exhibit, financial statement, document, book, record or
report furnished or to be furnished at any time by or on behalf of it to Buyer
or KBC in connection with this Agreement is or will be accurate in all material
respects as of its date or as of the date so furnished, and no such item
contains or will contain any untrue statement of a material fact or omits or
will omit to state a material fact necessary in order to make the statements
contained therein, in the light of the circumstances under which they were
made, not materially misleading.

 

7.1.12      Offices;
Billing Address.  The
principal place of business and chief executive office of Seller, and the
location where Seller keeps all of its books, records and documents evidencing
or relating to Purchased Receivables, is located at the address set forth on
the first page of this Agreement. Seller has a billing address located in
the United States, its territories or possessions.

 

7.1.13      Maintenance of
Books and Records.  Seller has
accounted for each sale of Purchased Receivables in its books and financial
statements as sales, consistent with GAAP.

 

7.1.14      Solvency.  Seller is Solvent; and at the time of (and
immediately after) each sale pursuant to this Agreement it shall be Solvent.

 

7.1.15      Compliance with
this Agreement.  Seller has
complied with all of the terms, covenants and agreements contained in this Agreement
applicable to it.

 

7.1.16      Corporate Name.  Seller’s complete corporate name is as forth
on the first page of this Agreement, and Buyer does not use and has not
during the last six (6) years used any other corporate name, trade name,
doing business name or fictitious name.

 

7.1.17      Eligible
Receivables.  Each
Purchased Receivable sold by it to Buyer hereunder that is designated as an
Eligible Receivable on any Invoice Remittal is in fact an Eligible Receivable.

 

7.1.18      No Termination
Events.  No event has occurred and is
continuing, or would result from a purchase, in respect of the Receivables or
from the application of proceeds therefrom, which would cause the early
termination of this Agreement.

 

7.1.19      No Consents.  Subject to Section 6.2.4 hereof,
no authorization, consent, license, order or approval of, or registration or
declaration with, any 

 

24

 

governmental
authority or other Person is required to be obtained, effected or made by
Seller in connection with the execution and delivery by Seller of this
Agreement or its performance of its obligations under this Agreement or the
transactions contemplated hereby, or for the exercise by Buyer of its rights
hereunder except for filings required hereunder and those that have been
obtained, effected or made.

 

7.1.20      No Default.  No Event of Default has occurred and is
continuing, both before and immediately after giving effect to this
Agreement.  Seller is not in default in
the performance, observance or fulfillment of any contractual obligations
applicable to it or its property.

 

7.1.21      ERISA.  Seller has complied in all material respects
with ERISA and has not incurred and does not expect to incur any liabilities to
the Pension Benefit Guaranty Corporation (or any successor thereto) under
ERISA.  Seller is not a sponsor of, or a
member of a controlled group of any Person that is a sponsor of, any Plan.

 

7.1.22      Anti-Money
Laundering Laws; Patriot Act.  Seller is in compliance, in all material
respects, with the (a) Trading with the Enemy Act, and each of the foreign
assets control regulations of the United States Treasury Department (31 CFR,
Subtitle B, Chapter V, as amended), and any other enabling legislation or
executive order relating thereto, and (b) any applicable anti money
laundering laws and regulations, including the USA Patriot Act.

 

7.1.23      Taxes  Seller has filed or caused to be filed all
federal and material state, local and foreign tax returns which are required to
be filed with any governmental authority after giving effect to applicable
extensions, and has paid or has caused to be paid all taxes as shown on said
returns or on any assessment received by it in writing, to the extent that such
taxes have become due other than those (a) not yet delinquent or (b) being
diligently contested in good faith by appropriate Proceedings as to which
adequate reserves have been provided in accordance with GAAP and which if
unpaid, individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect. No tax return is under audit or examination by
any governmental authority and no notice of such an audit or examination or any
assertion of any claim for taxes has been given or made by any governmental
authority, except such audits, examinations or claims that have been disclosed
to Buyer in writing, none of which could, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. Seller believes that
the charges, accruals and reserves on its books in respect of taxes or other
governmental charges are adequate.

 

7.1.24      True and
Complete Disclosure.

 

7.1.24.1   Neither this Agreement nor any agreement, document,
certificate or written statement furnished to Buyer by or on behalf of Seller
in connection with the transactions contemplated hereby, at the time it was
furnished, contained any untrue statement of 
material fact or omitted to state a material fact, under the
circumstances under which it was made, necessary in order to make the
statements contained herein or therein not misleading, it being understood that
for purposes of this Section 7.1.24.1, such factual information and

 

25

 

data shall not include pro forma financial information or projections (including
financial estimates, forecasts and other forward looking information or
information of a general economic or general industry nature).

 

7.1.24.2   The written projections
(including any financial estimates, forecasts and other forward-looking information)
contained in the information and data referred to in paragraph (a) above
were based on good faith estimates and assumptions believed by the Person
making such projections to be reasonable at the time made, it being recognized
by Buyer that such projections as to future events are not to be viewed as
facts and that actual results during the period or periods covered by any such
projections may differ from the projected results.

 

7.1.25      Material
Adverse Effect. Since March 31, 2009, there have been no
events, circumstances, developments or other changes in facts that,
individually or in the aggregate, would have or could reasonably be expect to
result in a Material Adverse Effect.

 

7.1.26      Environmental
Matters. (a) The operations of Seller are and have been in compliance
with all applicable Environmental Laws, including obtaining, maintaining and
complying with all permits required by any applicable Environmental Law, other
than non-compliances that, in the aggregate, would not have a reasonable likelihood
of resulting in liabilities exceeding ten thousand dollars ($10,000) in the
aggregate, (b) Seller is not party to, and no real property currently or,
to the knowledge of Seller, previously owned, leased, subleased, operated or
otherwise occupied by or for Seller is subject to or the subject of, any
contractual obligation or any pending or, to the knowledge of Seller,
threatened, order, action, investigation, suit, Proceeding, audit, claim,
demand, dispute or notice of violation or of potential liability or similar
notice under or pursuant to any Environmental Law other than those that, in the
aggregate, are not reasonably likely to result in liabilities exceeding ten
thousand dollars ($10,000) in the aggregate, (c) no Lien in favor of any
governmental authority securing, in whole or in part, environmental liabilities
has attached to any property of Seller and, to the knowledge of Seller, no
facts, circumstances or conditions exist that could reasonably be expected to
result in any such Lien attaching to any such property, (d) Seller has not
caused or suffered to occur a release of hazardous materials at, to or from any
real property of Seller and each such real property is free of contamination by
any hazardous materials except for such release or contamination that could not
reasonably be expected to result, in the aggregate, in liabilities exceeding
ten thousand dollars ($10,000) in the aggregate, (e) Seller (i) is
not or has not been engaged in, or has permitted any current or former tenant
to engage in, operations, or (ii) does not know of any facts,
circumstances or conditions, including receipt of any information request or
notice of potential responsibility under any Environmental Laws, that, in the
aggregate, would have a reasonable likelihood of resulting in liabilities
exceeding ten thousand dollars ($10,000) in the aggregate and (f) Seller
has made available to Buyer copies of all existing environmental reports,
reviews and audits and all documents pertaining to actual or potential
environmental liabilities, in each case to the extent such reports, reviews,
audits and documents are in their possession, custody or control.

 

26

 

7.1.27      Transfer
Filings.  Each Purchased Receivable been
validly sold or contributed to Buyer free and clear of all Liens and rights of
others; all filings (including filings under the UCC) necessary in the United
States to give Buyer an ownership interest in such Purchased Receivables have
been duly executed and delivered to Buyer; all such filings indicate that they
are being made in order to perfect absolute assignments (rather than pledges)
of the Purchased Receivables; and all fees in connection with such filings have
been paid.

 

7.1.28      Eligible
Receivables; Eligible Contractor.  Each Purchased Receivable sold by Seller
hereunder shall at the time of such sale meet in all respects all requirements
to constitute an “Eligible Receivable” within the definition of such term set
forth herein. Without limiting the foregoing, Seller meets or shall at the time
of such sale of any Purchased Receivables shall meet in all respects the
requirements to constitute an “Eligible Contractor” within the definition of
such term set forth herein.

 

7.1.29      Origination of
Purchased Receivables.  All
Purchased Receivables purchased or to be purchased by Buyer (a) were
originated or shall at the time of such purchase have been originated in the
regular course of business of Seller in accordance with applicable laws and (b) were
or will be purchased Buyer from Seller and no adverse selection procedures have
been or will have been utilized in selecting such Purchased Receivables from
all other similar Receivables owned by Seller.

 

SECTION 8

COVENANTS

 

8.1           Affirmative
Covenants.  From the
date hereof until the termination of this Agreement:

 

8.1.1        Compliance with
Laws, Etc.  Seller will
comply in all material respects with all applicable laws, including those with
respect to the Receivables, except where noncompliance could not reasonably  be
expected to have a Material Adverse Effect, and Seller shall provide Buyer with
a Compliance Certificate (i) on a quarterly basis to be received by Buyer
not later than the fifth calendar day following each calendar quarter, and (ii) on
a more frequent or other basis if and as requested by Buyer.

 

8.1.2        Preservation of
Corporate Existence.  Seller will
preserve and maintain its corporate or limited liability existence, rights,
franchises and privileges in the jurisdiction of its formation, and qualify and
remain qualified in good standing as a foreign corporation or organization in
each jurisdiction where the failure to preserve and maintain such existence,
rights, franchises, privileges and qualification could reasonably be expected
to have a Material Adverse Effect.

 

8.1.3        Audits.  (A) Seller will at any time and from
time to time during regular business hours, permit Buyer or KBC or any of its
agents or representatives, (i) to examine and make copies of and abstracts
from all books, records and documents (including, without limitation, computer
tapes and disks) in its possession or under its control relating to Purchased
Receivables, (ii) to visit its offices and properties for the purpose of
examining such materials described in clause (A)(i) above, and with
the 

 

27

 

permission
of Seller’s senior management, which shall not be unreasonably withheld, to
discuss matters relating to Purchased Receivables or its performance hereunder
with any of its officers or employees having knowledge of such matters, and (iii) to
verify the existence and amount of the Purchased Receivables; and (B) without
limiting the provisions of clause (A) above, from time to time on
request of KBC, permit certified public accountants or other auditors acceptable
to KBC to conduct, at Seller’s expense, a review of its books and records with
respect to the Purchased Receivables; provided that unless this
Agreement is terminated early, Seller shall not be responsible for the cost of
more than three (3) such audits during the twelve (12) month period
beginning on the date of the initial purchase of Purchased Receivables, or one
such audit in any calendar year thereafter.

 

8.1.4        Keeping of
Records and Books of Account.  Seller will maintain and implement administrative
and operating procedures (including, without limitation, an ability to recreate
records evidencing Purchased Receivables in the event of the destruction of the
originals thereof), and keep and maintain all documents, books, records and
other information reasonably necessary or advisable for the collection of all
Purchased Receivables (including, without limitation, records adequate to
permit the daily identification of each new Purchased Receivable and all
Collections of and adjustments to each existing Purchased Receivable). Further,
Seller shall indicate in its consolidated financial statements and computer
records that the Purchased Receivables have been absolutely transferred,
conveyed, sold and assigned to Buyer or its designee, and Seller will not
otherwise claim in its records ownership of any of the Purchased Receivables or
the proceeds thereof. Seller shall not take any action that is inconsistent
with Buyer’s ownership of the Purchased Receivables. Without limiting the
foregoing, Seller shall treat the sale of the any Purchased Receivables as a
sale for federal, state and local income tax purposes.

 

8.1.5        Financial
Statements; Reports.  Seller
shall furnish or cause to be furnished to Buyer (i) within ninety (90)
days after the end of each fiscal year of Seller commencing with the fiscal
year ending 2009, the audited balance sheet of Seller (or, if audited financial
statements are not available, unaudited balance sheet and unaudited combined
statements of income, stockholder or member equity and cash flows of Seller
together with a certificate of an officer of Seller, to the effect that such
financial statements present fairly in all material respects the financial
positions of Seller as at the end of the fiscal year and the results of operations
for the fiscal year then ended in conformity with GAAP)  as at the end of, and the related audited
combined statements of income, stockholder or member equity and cash flows for,
such fiscal year, together with a certificate signed by an officer of Seller,
to the effect that such financial statements, present fairly in all material
respects the consolidated financial condition and results of operation of
Seller as of the dates and for the periods indicated in accordance with GAAP
applied on a basis consistent with that of the preceding year or containing
disclosure of the effect on the financial condition or results of operations of
any change in the application of accounting principles and practices during
such year; and (ii) within forty-five (45) days after the end of each of
the first three (3) fiscal quarters of each fiscal year of Seller,
commencing with the fiscal quarter ending September 30, 2009, the
unaudited consolidated balance sheets of Seller and the related unaudited
consolidated statements of income, stockholder or member equity and cash flows
of Seller for, such fiscal quarter, 

 

28

 

and
for the portion of the fiscal year through the end of such fiscal quarter,
together with a certificate signed by an officer of Seller, to the effect that
such financial statements present fairly in all material respects the financial
positions of Seller as at the end of the fiscal quarter and the results of
operations for the fiscal quarter then ended in conformity with GAAP, subject
to normal year-end audit adjustments and the absence of footnotes.

 

8.1.6        Due Diligence.  Seller agrees to satisfy or cause to be
satisfied any and all due diligence or confirmation requests of Buyer or KBC
related to this Agreement, as deemed reasonably necessary in Buyer’s or KBC’s
sole discretion.

 

8.1.7        Deemed
Collections; Repurchase.  If
it is determined that Seller is obligated to Buyer or its designee any amounts
with respect to any Deemed Collections or repurchase amounts arising pursuant
to Section 4.2 hereunder, Seller will, within two (2) Business
Days of such determination, pay such amounts to the Segregated Account. Seller
shall also pay promptly to the Segregated Account upon demand any reasonable
out-of-pocket expenses incurred by Buyer or KBC in connection with any such
Deemed Collection or repurchase, including reasonable fees and disbursements of
counsel. All payments under this Section 8.1.7 shall be paid by
Seller in immediately available funds directly to the Segregated Account,
without any withholding, deduction, set-off or counterclaim.

 

8.1.8        Notices.  Seller will give written notice to Buyer and
KBC promptly, but in any event within three (3) Business Days, upon
becoming aware of the occurrence of (i) any Event of Default or pending or
anticipated Event of Default; (ii) the submission of any claim or the
initiation or threat of any legal process or Proceeding, or rule making or
disciplinary proceeding by or against Seller, or the promulgation of any
proceeding or any proposed or final rule which could reasonably be
expected to have a Material Adverse Effect; (iii) any damage to or loss,
elimination or destruction of any portion of the Purchased Receivables or (iv) the
receipt of notice that (a) any license, permit, charter, registration or
approval necessary for the conduct of Seller’s business is to be, or may be,
suspended or revoked or (b) Seller is to cease and desist any practice,
procedure or policy employed by Seller in the conduct of its business, and such
suspension, revocation or cessation may reasonably be expected to have a
Material Adverse Effect.

 

8.1.9        Maintenance of
Insurance.  (A) Seller
shall (i) maintain or cause to be maintained in full force and effect all
policies of insurance of any kind with respect to Seller’s property and
business (including policies of life (including “key man” coverage, as
applicable), fire, theft, product liability, public liability, property damage,
other casualty, employee fidelity, workers’ compensation, business interruption
and employee health and welfare insurance) with financially sound and reputable
insurance companies or associations (in each case that are not affiliates of
Seller) of a nature and providing such coverage as is sufficient and as is
customarily carried by businesses of the size and character of Seller’s
business and in any event in form and substance reasonably acceptable to Buyer
and (ii) cause all such insurance relating to any property or business
Seller to name Buyer, as additional insured or loss payee, as appropriate and
shall use its commercially reasonable efforts to provide that no cancellation,
material addition in amount or material change in coverage shall be effective
until after thirty (30) days (or 

 

29

 

ten
(10) days in the case of a payment default) notice thereof to Buyer. Buyer
shall be entitled, upon reasonable advance notice, to review Seller’s insurance
policies carried and maintained with respect to the Grantors’ obligations under
this Section 8.1.9.  Upon
request, Seller shall furnish Buyer with copies of all insurance policies,
binders, and cover notes or other evidence of such insurance.  Notwithstanding anything to the contrary
herein, no provision of this Section 8.1.9 or any provision of this
Agreement shall impose on Buyer any duty or obligation to verify the existence
or adequacy of the insurance coverage maintained by Seller, nor shall Buyer be
responsible for any representations or warranties made by or on behalf of
Seller to any insurance broker, company or underwriter. Buyer, at its sole
option, may obtain such insurance if not provided by Seller and in such event,
Seller shall reimburse Buyer upon demand for the cost thereof together with
interest.  Seller shall also carry and
maintain, should Seller’s risk profile change during the term of this
Agreement, any other insurance that Buyer may reasonably require from time to
time.

 

8.1.10      Location of
Records.  Seller will keep its principal
place of business and chief executive office, and the offices where it keeps
its records concerning the Purchased Receivables, at its address set forth on
the first page of this Agreement or, upon thirty (30) days’ prior written
notice to KBC, at such other locations acceptable to Buyer and KBC.

 

8.1.11      Further
Assurances.  Seller,
upon the reasonable request of Buyer, shall duly execute and deliver, or cause
to be duly executed and delivered, at the cost and expense of Seller, such
further agreements, documents and instruments, and do such other acts and
things, as may be necessary or reasonably requested by Buyer to carry out the
provisions and purposes of this Agreement.

 

8.1.12      Maintenance of
Licenses.  Seller
shall maintain all licenses, permits, charters and registrations the loss or
suspension of which could reasonably be expected to have a Material Adverse
Effect.

 

8.2           Negative
Covenants.  From the
date hereof until the termination of this Agreement without Buyer’s prior
written consent:

 

8.2.1        Sales, Liens,
Etc.  Seller will not, except as
otherwise provided herein, sell, assign (by operation of law or otherwise) or
otherwise dispose of, or create or suffer to exist any Lien upon or with
respect to, any Purchased Receivable or any interest therein.

 

8.2.2        Extension or
Amendment of Receivables. 
Seller will not extend, amend or otherwise modify, or permit any Person
to extend, amend or otherwise modify, the terms of any Purchased Receivable.

 

8.2.3        Change in
Business or Credit and Collection Policy.  Seller will not make any change in the
character of its business, which change
could impair the collectability of any Purchased Receivable or otherwise adversely affect the
interests or remedies of Buyer under this Agreement or result in a Material
Adverse Effect.

 

30

 

8.2.4        Termination.  Seller will not terminate, or take or permit
any action that would cause the termination of this Agreement other than in
accordance with the terms herein.

 

8.2.5        Consolidation;
Merger.  Seller will not consolidate or
merge with or into any other Person or convey, transfer or dispose of its
properties and assets in one or more transactions substantially as an entirety
to any Person, or wind up, liquidate or dissolve its affairs.

 

8.2.6        Impair
Effectiveness.  Seller will
not permit the validity or effectiveness of this Agreement to be impaired, or
permit any Person (other than Buyer) to be released from any covenants or
obligations with respect to this Agreement, except as may be expressly
permitted hereby.

 

8.2.7        Prohibited
Transactions. Seller will not engage in a “prohibited
transaction”, as defined in Section 406 of ERISA or Section 4975 of
the Code, with respect to any Plan or knowingly consent to any other “party in
interest” or any “disqualified person”, as such terms are defined in Section 3(14)
of ERISA and Section 4975(e)(2) of the Code, respectively, engaging
in any “prohibited transaction”, with respect to any Plan; or permit any Plan
to incur any “accumulated funding deficiency”, as defined in Section 302 of
ERISA or Section 412 of the Code, unless such incurrence shall have been
waived in advance by the Internal Revenue Service; or terminate any Plan in a
manner which could result in the imposition of a Lien on any property of Seller
pursuant to Section 4068 of ERISA; or breach or knowingly permit any
employee or officer or any trustee or administrator of any Plan to breach any
fiduciary responsibility imposed under Title I of ERISA with respect to
any Plan; engage in any transaction which would result in the incurrence of a
liability under Section 4069 of ERISA; or fail to make contributions to a
Plan which could result in the imposition of a Lien on any property of Seller
pursuant to Section 302(f) of ERISA or Section 412(n) of
the Code, if the occurrence of any of the foregoing events (alone or in the
aggregate) would result in a liability which would be reasonably likely to
result in a Material Adverse Effect.

 

8.2.8        Instructions to
Account Debtors.  Seller will
not provide any instructions to Account Debtors contrary to the requirement
that Collections be deposited directly into the Segregated Account.

 

8.2.9        Waiver of Stay
or Execution of Laws.  Seller
covenants (to the extent it may lawfully do so) that it shall not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or execution law, including filing a voluntary petition
under Chapter 11 of the Bankruptcy Code, wherever enacted, now or at any time
hereafter in force, which may affect the covenants or the performance of or the
exercise of any remedies under this Agreement. Seller (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any
such law, and covenants that it shall not hinder, delay or impede the execution
of any power herein granted to Buyer, but shall suffer and permit the execution
of every such power as though no such law had been enacted.

 

31

 

8.2.10      Mergers,
Acquisitions, Sales, Etc. 
Seller will not (i) be a party to any merger or consolidation, or
purchase or otherwise acquire all or substantially all of the assets or any
stock of any class of, or any partnership or joint venture interest in, any
other Person or (ii) sell, transfer, convey or lease all or any
substantial part of its assets, or sell or assign with or without recourse any
Receivables or any interest therein (other than pursuant hereto or to this
Agreement), in each case if such actions would have any adverse or potentially
adverse effect on the validity or effectiveness of this Agreement or the
Purchased Receivables.

 

SECTION 9

DEFAULT

 

9.1           Events of Default.  The occurrence of any one or more of the
following shall constitute an “Event of Default” hereunder:

 

9.1.1        Seller fails to
pay any amount owed to Buyer or its designee as and when due under this
Agreement or otherwise;

 

9.1.2        There shall be
commenced by or against Seller any voluntary or involuntary case under the
Bankruptcy Code, any assignment for the benefit of creditors or appointment of
a receiver or custodian for any of its assets;

 

9.1.3        Seller shall
not be Solvent, or Seller is generally not paying its debts as they become due
or is left with unreasonably small capital;

 

9.1.4        Any voluntary
Lien, garnishment, attachment or the like is issued against or attaches to the
Receivables;

 

9.1.5        Seller shall
breach any condition, warranty, representation or covenant set forth herein
other than as set forth in Section 9.1.1, unless the same is cured to
Buyer’s satisfaction within five (5) days after Buyer has given Seller
oral or written notice thereof; provided, that if such breach is
incapable of being cured within such five (5)-day cure period, it shall
constitute an immediate default hereunder;

 

9.1.6        Subject to the
provisions set forth in Section 9.1.5 above, Seller is not in compliance
with, or otherwise is in default under, any term of any document, instrument or
agreement evidencing a debt, obligation or liability of any kind or character
of Seller, now or hereafter existing, in favor of Buyer or any division or
affiliate of Buyer, regardless of whether such debt, obligation or liability is
direct or indirect, primary or secondary, joint, several or joint and several or
fixed or contingent, together with any and all renewals and extensions of such
debts, obligations and liabilities, or any part thereof; or

 

9.1.7        This Agreement
or any material provision herein shall terminate in whole (except in accordance
with the terms hereof), or shall cease to be effective or to be the legally
valid, binding and enforceable obligation of Buyer or Seller.

 

32

 

9.2           Remedies upon
Default.  Upon the occurrence of an
Event of Default, (i) without implying any obligation to buy Receivables,
Buyer may cease buying Receivables or extending any financial accommodations to
Seller, (ii) all or a portion of the Seller Obligations shall be, at the
option of and upon demand by Buyer, or with respect to an Event of Default
described in Section 9.1.2 hereof, automatically and without notice
or demand, due and payable in full, and (iii) Buyer shall have and may
exercise all the rights and remedies under this Agreement and under applicable
law, including the rights and remedies of a secured party under the UCC, all
the power of attorney rights described in Section 5.1 hereof with
respect to the Purchased Receivables and the right to collect, dispose of,
sell, lease, use and realize upon such Purchased Receivables in any
commercially reasonable manner. Seller and Buyer agree that any notice of sale
required to be given to Seller shall be deemed to be reasonable if given ten (10) days
prior to the date on or after which the sale may be held.

 

SECTION 10

MISCELLANEOUS

 

10.1         Accrual of
Interest.  If any
amount owed by Seller hereunder is not paid when due, including, without
limitation, any Deemed Collections or repurchases due under Section 4.2
hereof or amounts due under Section 10.2 hereof, such amounts shall
bear interest at a per annum rate equal to the PAF Rate until the earlier of (i) payment
in immediately available funds or (ii) entry of a final judgment thereof,
at which time the principal amount of any money judgment remaining unsatisfied
shall accrue interest at the highest rate allowed by applicable law.

 

10.2         Fees, Costs and
Expenses.  Seller will
pay to Buyer immediately on demand all fees, costs and expenses (including
attorneys’ and professional fees and their costs and expenses) that Buyer or its
designee incurs or may impose in connection with any of the following: (i) preparing,
negotiating, administering and enforcing this Agreement or any other agreement
executed in connection with this Agreement, including any amendments, waivers
or consents, (ii) any litigation or dispute (whether instituted by Buyer,
Seller or any other Person) about the Purchased Receivables, this Agreement or
any other agreement executed in connection with this Agreement, (iii) enforcing
any rights against Seller, any guarantor or any Account Debtor, (iv) protecting
or enforcing its interest in the Purchased Receivables, (v) collecting the
Purchased Receivables and the Obligations and (vi) the representation of
Buyer or its designee in connection with any bankruptcy case or insolvency
proceeding involving Seller, any Purchased Receivable, any Account Debtor or
any guarantor.  The maximum fees, costs
and expenses payable by the Seller in connection with the underwriting, site
review and Buyer’s legal fees in connection with the execution of
this Agreement shall be seven thousand five hundred dollars ($7,500.00).

 

10.3         Indemnification.

 

10.3.1      Seller agrees
to pay, indemnify and hold Buyer, its designees and their respective directors,
officers, employees and agents harmless from and against any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever
arising out of, relating 

 

33

 

to
or resulting from any of the following (collectively, the “Buyer Indemnified
Liabilities”): (i) the failure of any representation or warranty or
statement made or deemed made by Seller under or in connection with this
Agreement or in any certificate or report delivered pursuant hereto, including,
without limitation, any Receivables Invoice, to be true and correct in any
material respect when made; (ii) the failure by Seller to perform its
Seller Obligations under this Agreement or (iii) the failure by Seller to
comply with any Applicable Law, rule or regulation of any governmental
authority with respect to the sale, transfer, delivery and assignment of any
Purchased Receivables.

 

10.3.2      Without
limiting or being limited by the foregoing, Seller agrees to pay, on demand, to
each of Buyer and its directors, officers, employees and agents any and all
amounts necessary to indemnify Buyer and its directors, officers, employees and
agents from and against any and all Buyer Indemnified Liabilities relating to
or resulting from any Proceeding related to any of the matters referred to in Section 10.3.1
hereof or any investigation, litigation or proceeding with respect to any
action, or failure to act, by Seller under this Agreement.

 

10.3.3      Notwithstanding
anything in this Section 10.3 to the contrary, Seller shall have no
obligation to indemnify any of the Buyer and its directors, officers, employees
and agents under this Section 10.3 in respect of Buyer Indemnified
Liabilities to the extent resulting from (i) the gross negligence or
willful misconduct on the part of Buyer or its directors, officers, employees
and agents as determined by the final judgment of a court of competent
jurisdiction no longer subject to appeal or (ii) litigation between Buyer
and its Buyer and its directors, officers, employees and agents not involving
an actual or alleged act or omission of Seller or any of Seller’s affiliates.

 

10.4         Severability,
Waiver and Amendment.  In the
event that any provision of this Agreement is deemed invalid by reason of law,
this Agreement will be construed as not containing such provision and the
remainder of the Agreement shall remain in full force and effect. Buyer retains
all of its rights, even if it makes payment of Initial Purchase Price after a
default. If Buyer waives a default, it may enforce a later default. Any consent
or waiver under, or amendment of, this Agreement must be in writing. Nothing
contained herein, or any action taken or not taken by Buyer at any time, shall
be construed at any time to be indicative of any obligation or willingness on
the part of Buyer to amend this Agreement or to grant to Seller any waivers or
consents.

 

10.5         Choice of Law.  This Agreement is governed by and interpreted
in accordance with the laws of the State of New York, excluding principles of
conflict of laws.

 

10.6         Waiver of Jury
Trial.  Each of the parties hereto
hereby irrevocably waives all right to a trial by jury in any Proceeding or
counterclaim arising out of or relating to this Agreement or any agreement or
any instrument or document delivered thereunder.

 

10.7         Notices.  All notices shall be given to Buyer and
Seller at the address set forth on the first page of this Agreement, or
the facsimile number or email address as the parties may exchange from time to
time, and shall be deemed to have been delivered and received (i) if
mailed, three (3) calendar days after deposited in the U.S. mail, first
class, 

 

34

 

postage
pre-paid, (ii) one (1) calendar day after deposit with an overnight
mail or messenger service, or (iii) on the same date of confirmed
transmission if sent by hand delivery, facsimile or email.

 

10.8         Arbitration.  At the request at any time of either party,
any controversies concerning this Agreement will be settled by arbitration in
accordance with the U.S. Arbitration Act, and under the Commercial Arbitration Rules and
Administration of the American Arbitration Association. The U.S. Arbitration
Act will supplement New York law, as appropriate, even though this Agreement
provides that it is otherwise governed by New York law.

 

10.9         Successors and
Assigns.  This Agreement shall be
binding upon and inure to the benefit of Seller and Buyer and their respective
successors (whether by merger, consolidation or otherwise) and assigns. The
provisions of this Agreement are for the benefit of Seller and Buyer and such
respective successors and assigns, and nothing in this Agreement, whether
express or implied, shall be construed to give to any other Person any legal or
equitable right, remedy or claim in the Purchased Receivables or under or in
respect of this Agreement or any covenants, conditions or provisions contained
herein, except as provided in the last sentence of this Section 10.9.  Seller may not assign, transfer or dispose of
all or any portion of its rights or obligations hereunder without the prior
written consent of Buyer, and any such assignment without the prior written
consent of Buyer shall be null and void. Seller hereby consents to the grant by
Buyer to RCA of all Buyer’s right, title and interest in and to the Purchased
Receivables, including the collateral assignment of any interest of Buyer in
and to this Agreement.  Seller
understands that Buyer or RCA may grant a security interest in all its right,
title and interest in the Purchased Receivables (including the right to all
revenues and proceeds of the Purchased Receivables), and its rights under this
Agreement, to secure future debt obligations. Seller hereby consents to the
grant of such security interest and, in connection therewith, (a) agrees
that any such future lender shall be a third party beneficiary of this
Agreement, (b) agrees that such lender may have the right to exercise
Buyer’s rights and remedies hereunder, (c) agrees that such lender may
have the right to foreclose on its security interest in Buyer’s rights under
this Agreement and to exercise Buyer’s rights and remedies hereunder, and (d) acknowledges
and agrees that it will upon the reasonable request of Buyer agree with such
lender that neither this Agreement nor any of the terms hereof may be amended,
supplemented, modified or waived without the written consent of such
lender.  Seller and Buyer hereby consent
to the grant by RCA to KBC of all RCA’s right, title and interest in and to the
Purchased Receivables, including the collateral assignment of any interest of
RCA in and to this Agreement.

 

10.10       Term and
Termination.  The term of
this Agreement shall expire December 31, 2009, and shall be year to year
thereafter unless terminated in writing by Buyer or Seller. Seller and Buyer
shall each have the right to terminate this Agreement at any time.
Notwithstanding the foregoing, any termination of this Agreement shall not
affect Buyer’s security interest, if any, in and ownership of the Purchased
Receivables, and this Agreement shall continue to be effective, and Buyer’s
rights and remedies hereunder shall survive such termination, until all
transactions entered into and Obligations incurred hereunder or in connection
herewith have been completed and satisfied in full.

 

35

 

10.11       Survival of
Agreement.  All
covenants, agreements, representations and warranties made by Seller herein
and/or in the exhibits, schedules, certificates or other instruments prepared
or delivered in connection with or pursuant to this Agreement shall be
considered to have been relied upon by Buyer, shall survive the sale of any
Purchased Receivables to Buyer, regardless of any investigation made by Buyer or
any party providing financing to Buyer or on their behalf, and shall continue
in full force and effect so long as this Agreement has not been terminated.

 

10.12       Titles and Section Headings.  The titles and section headings used herein
are for convenience only and shall not be used in interpreting this Agreement.

 

10.13       Other
Agreements.  The terms
and provisions of this Agreement shall not adversely affect the rights of Buyer
or any other division or affiliate of Buyer under any other document,
instrument or agreement. The terms of such other documents, instruments and
agreements shall remain in full force and effect notwithstanding the execution
of this Agreement. In the event of a conflict between any provision of this
Agreement and any provision of any other document, instrument or agreement
between Seller on the one hand, and Buyer or any other division or affiliate of
Buyer on the other hand, Buyer shall determine, in its sole discretion, which
provision shall apply. Seller acknowledges specifically that any Liens and/or
security interests currently securing payment of any obligations of Seller
owing to Buyer or any other division or affiliate of Buyer also secure Seller’s
obligations under this Agreement, and are valid and subsisting and are not
adversely affected by execution of this Agreement. Seller further acknowledges
that (i) any collateral under other outstanding security agreements or
other documents between Seller and Buyer or any other division or affiliate of
Buyer secures the obligations of Seller under this Agreement and (ii) a
default by Seller under this Agreement constitutes a default under other
outstanding agreements between Seller and Buyer or any other division or
affiliate of Buyer.

 

10.14       Counterparts.  This Agreement may be executed by the parties
hereto individually or in any combination, in one or more counterparts, each of
which shall be an original and all of which together constitute one and the
same agreement.

 

10.15       Confidentiality.  Seller and Buyer each agrees to maintain the
confidentiality of this Agreement in communications with third parties and
otherwise; provided, that this Agreement may be disclosed (i) to
third parties to the extent such disclosure is made pursuant to a written
agreement of confidentiality in form and substance reasonably satisfactory to
Buyer, (ii) to the legal counsel and auditors of Buyer and Seller if they
agree to hold it confidential (iii) to the extent required by applicable
law or regulation or by any court, regulatory body or agency having jurisdiction
over such party, and (iv) to the extent required under applicable
securities laws, the Securities and Exchange Commission or the NYSE Amex; and provided,
further, that such party shall have no obligation of confidentiality in
respect of any information which may be generally available to the public or
becomes available to the public through no fault of such party.

 

36

 

10.16       Acknowledgments. Seller hereby
acknowledges that (i) it has been advised by counsel in the negotiation,
execution and delivery of this Agreement, (ii) no joint venture is created
hereby or otherwise exists by virtue of the transactions contemplated hereby
between Buyer and Seller and (iii) that nothing in this Agreement or
otherwise will be deemed to create an advisory, fiduciary or agency
relationship or fiduciary or other implied duty between Buyer and Seller.

 

{Signatures appear on the following page.}

 

37

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be signed by their duly authorized representatives all
as of the day and year first above written, with the specific intention that
this Agreement constitutes a document under seal.

 

 

	
   

  	
  SELLER:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AMERICAN
  DEFENSE SYSTEMS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Gary Sidorsky

  
	
   

  	
  Name:

  	
  Gary
  Sidorsky

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BUYER:

  
	
   

  	
   

  	
   

  
	
   

  	
  REPUBLIC
  CAPITAL ACCESS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Timothy J. Gilmore

  
	
   

  	
  Name:

  	
  Timothy
  J. Gilmore

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
				

 

38Exhibit 10.1

 

SECOND
FORBEARANCE AGREEMENT; AND SECOND AMENDMENT TO THE CREDIT AGREEMENT

 

This SECOND FORBEARANCE AGREEMENT; AND SECOND
AMENDMENT TO THE CREDIT AGREEMENT (this “Second Forbearance Agreement”)
is entered into as of July 28, 2009, by and among Station Casinos, Inc.
(the “Borrower”), certain subsidiaries of the Borrower party hereto (the
“Guarantors” and, together with the Borrower, the “Loan Parties”),
FCP Holdings, Inc. (“FCP Holding”), Fertitta Partners LLC (“Fertitta
Partners”), FCP Voteco, LLC (“FCP Voteco” and, together with FCP
Holding and Fertitta Partners, the “Holding Companies”, with the Holding
Companies and the Loan Parties collectively referred to as the “Credit
Parties”), the Lenders (as defined below) party hereto, and Deutsche Bank
Trust Company Americas, as administrative agent (in such capacity, the “Administrative
Agent”) for the Lenders and the other Secured Parties described in the
Credit Agreement referred to below. Capitalized terms used but not otherwise
defined herein shall have the respective meanings ascribed to such terms in the
Credit Agreement (as modified hereby). Certain capitalized terms used herein
are defined in Section 2(e) of this Second Forbearance Agreement.

 

RECITALS

 

WHEREAS,
the Borrower and various financial institutions (the “Lenders”) are
parties to that certain Credit Agreement, dated as of November 7, 2007 (as
amended, modified and/or supplemented to, but not including, the Second
Forbearance Effective Date referred to below, the “Credit Agreement”), pursuant
to which, among other things, the Lenders have agreed, subject to the terms and
conditions set forth in the Credit Agreement, to make certain loans and other
financial accommodations to the Borrower;

 

WHEREAS,
the Borrower, the Guarantors, the Holding Companies and the Administrative
Agent are parties to that certain Forbearance Agreement; Waiver; and First
Amendment to the Credit Agreement, dated as of March 2, 2009 (as amended,
modified and/or supplemented to, but not including, the Second Forbearance
Effective Date, the “First Forbearance Agreement”);

 

WHEREAS,
as of the date hereof, one or more of the events listed on Exhibit A
hereto have occurred (or may occur) during an Applicable Forbearance Period (as
hereinafter defined) (the events described in Exhibit A hereto
being herein collectively called the “Specified Events”); and

 

WHEREAS,
upon the Borrower’s request, the Lenders have agreed, subject to the terms and
conditions set forth herein, to (i) forbear from exercising their
default-related rights, remedies, powers and privileges against the Credit
Parties (other than the Borrower) solely with respect to the Specified Defaults
(as defined below) and (ii) amend certain provisions of, and grant certain
consents to, the Credit Agreement and the other Loan Documents, in each case as
more fully described herein;

 

NOW,
THEREFORE, in consideration of the foregoing, the terms, covenants and
conditions contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

SECTION 1.                                Confirmation
by the Borrower of Obligations and Specified Events.

 

(a)             Amount of
Obligations. The Borrower and each other Credit Party
acknowledge and agree that as of July 28, 2009, the respective aggregate
principal balances of the Loans as of such

 

 

date
and aggregate face amount of Letters of Credit were as follows (such amounts,
in the aggregate, the “Existing Principal and Letters of Credit”):

 

	
  Term
  Loans:

  	
   

  	
  $

  	
  246,250,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Revolving
  Credit Loans:

  	
   

  	
  $

  	
  628,236,586.13

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Swing
  Line Loans:

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Letters of Credit:

  	
   

  	
  $

  	
  10,184,203.00

  	
   

  

 

The Borrower and each other
Credit Party acknowledge and agree that as of July 28, 2009, the aggregate
amount of accrued and unpaid interest on the Term Loans, Revolving Credit Loans
and Swing Line Loans is $2,363,635.11 (the “Existing Interest”), the
aggregate amount of accrued and unpaid commitment fees payable pursuant to Section 2.09(a) of
the Credit Agreement is $26,656.31 (the “Existing Commitment Fees”), the
aggregate amount of accrued and unpaid letter of credit fees payable pursuant
to Section 2.03(h) of the Credit Agreement is $34,371.70 (the “Existing
LC Fees”) and the aggregate amount of accrued and unpaid letter of credit
fronting fees payable pursuant to Section 2.03(i) of the Credit
Agreement is $2,150.16 (the “Existing LC Fronting Fees” and, together
with the Existing Principal and Letters of Credit, the Existing Interest, the
Existing Commitment Fees and the Existing LC Fees, the “Outstanding
Indebtedness”).  The foregoing
amounts do not include other fees, expenses and other amounts which are
chargeable or otherwise reimbursable under the Credit Agreement and the other
Loan Documents.  None of the Borrower or
the other Credit Parties has any rights of offset, defenses, claims or
counterclaims with respect to any of the Obligations and each of the Loan
Parties are jointly and severally obligated with respect thereto (and each of
the Holding Companies are jointly and severally obligated with respect
thereto), in each case in accordance with the terms of the applicable Loan
Documents.

 

(b)            Acknowledgement
of Pre-Forbearance Defaults.  The Borrower and each other Credit Party
acknowledge and agree that (i) each Pre-Forbearance Default constitutes an
Event of Default that has occurred and is continuing as of the Second
Forbearance Effective Date and (ii) the existence of the Pre-Forbearance
Defaults permits the Administrative Agent, either itself or at the request of
the Required Lenders, to, among other things, (A) declare the commitment
of each Lender to make Loans and any obligation of the L/C Issuers to make L/C
Credit Extensions to be terminated, whereupon such commitment and obligation
shall be terminated, (B) accelerate all or any portion of the Obligations
and (C) subject to the limitations described in Section 2 below,
exercise on behalf of itself and the Lenders all rights and remedies available
to it and the Lenders under the Loan Documents or applicable Law (including in
any event rights and remedies (including enforcement and collection actions)
under the Loan Documents against the Borrower or any of the Collateral or other
property owned by the Borrower, which are not subject to the limitations in Section 2
below).

 

SECTION 2.                                Forbearance;
Forbearance Default Rights and Remedies.

 

(a)             The Forbearance.  Effective as of the Second Forbearance
Effective Date, each of the Administrative Agent and each Lender agrees that (i) until
the Holding Company Forbearance Termination Date (as defined below), it will
forbear from exercising its rights and remedies (including enforcement and
collection actions) under the Loan Documents against the Holding Companies or
any of the Collateral or other property owned by the Holding Companies (including,
without limitation, via set-off or recoupment) solely with respect to the
Specified Defaults, and (ii) until the Other Credit Party Forbearance
Termination Date (as defined below), it will forbear from exercising its rights
and remedies (including enforcement and collection actions) under the Loan

 

2

 

Documents
against each Credit Party (other than the Debtor Credit Parties) or any of the
Collateral or other property owned by such Credit Parties (including, without
limitation, via set-off or recoupment) solely with respect to the Specified
Defaults.  The Borrower and each other
Credit Party acknowledge and agree that (x) each Specified Default that
has occurred or may occur and be continuing during an Applicable Forbearance
Period constitutes (in the case of the Pre-Forbearance Defaults) or would
constitute (in the case of other Specified Defaults) a Default or an Event of
Default upon which action could be taken under the Loan Documents against each
Credit Party (other than the Borrower, as to which the provisions of Section 1(b) apply)
or any of the Collateral or other property owned by such Credit Parties but for
the forbearance described in the preceding sentence, and (y) the
Administrative Agent and the Lenders shall not be delayed, prohibited or
otherwise stayed on and after the Other Credit Party Forbearance Termination
Date from taking an action or exercising any rights against the Credit Parties
or their respective assets (other than the Debtor Credit Parties or their
respective assets) as a result of the commencement of the Borrower Chapter 11
Case, the Holding Company Chapter 11 Cases or the Other Chapter 11 Cases prior
to the Other Credit Party Forbearance Termination Date.  To the extent necessary, each of the Borrower
and each Holding Company hereby grants to the Administrative Agent and the
Lenders a limited waiver of the automatic stay imposed by Section 362 of
the Bankruptcy Code (to the extent applicable in the Borrower Chapter 11 Case,
the Holdings Chapter 11 Cases or the Other Chapter 11 Cases, as the case may
be) solely to give effect to clause (y) of the preceding sentence.

 

(b)            Effect of
Forbearance Termination.  From
and after the Applicable Forbearance Termination Date (as hereinafter defined),
the agreement of each Lender and the Administrative Agent hereunder to forbear
as set forth in Section 2(a) shall immediately terminate without the
requirement of any demand, presentment, protest, or notice of any kind, all of
which are hereby waived by the Borrower and each other Credit Party.  The Borrower and each other Credit Party
hereby agree that (i) the Administrative Agent, either itself or at the
direction of the Required Lenders, may at any time, or from time to time, in
its (or their) sole and absolute discretion, exercise against the Borrower (and
its properties) any and all of their rights, remedies, powers and privileges
under any or all of the Credit Agreement, any other Loan Document, applicable
law and/or equity, all of which rights, remedies, powers and privileges are
fully reserved by each Lender and the Administrative Agent, (ii) from and
after the Holding Company Forbearance Termination Date (after the giving of any
required notice and the lapse of any grace period applicable in the
determination thereof), the Administrative Agent, either itself or at the
direction of the Required Lenders, may at any time, or from time to time, in
its (or their) sole and absolute discretion, exercise against the Holding
Companies (and their properties) any and all of their rights, remedies, powers
and privileges under any or all of the Credit Agreement, any other Loan
Document, applicable law and/or equity, all of which rights, remedies, powers
and privileges are fully reserved by each Lender and the Administrative Agent,
and (iii) from and after the Other Credit Party Forbearance Termination
Date (after the giving of any required notice and the lapse of any grace period
applicable in the determination thereof), the Administrative Agent, either
itself or at the direction of the Required Lenders, may at any time, or from
time to time, in its (or their) sole and absolute discretion, exercise against
any Credit Party (and its properties) any and all of their rights, remedies,
powers and privileges under any or all of the Credit Agreement, any other Loan
Document, applicable law and/or equity, all of which rights, remedies, powers
and privileges are fully reserved by each Lender and the Administrative Agent.

 

(c)             Limitation on
Forbearance Extension.  Except
as set forth herein, none of the Lenders or the Administrative Agent shall have
any obligation to extend an Applicable Forbearance Period, or enter into any
other waiver, forbearance or amendment, and the Lenders’ and the Administrative
Agent’s agreement to permit any such extension, or enter into any other waiver,
forbearance or amendment shall be subject to the sole discretion of the
Required Lenders (or, if

 

3

 

required
by Section 10.01 of the Credit Agreement, each Lender and each applicable Class of
Lenders required thereby).  Any agreement
by any Lender or the Administrative Agent to extend an Applicable Forbearance
Period, if any, or enter into any other waiver, forbearance or amendment, must be
set forth in writing and signed by a duly authorized signatory of the
Administrative Agent and the Required Lenders (or, if required by Section 10.01
of the Credit Agreement, each Lender and each applicable Class of Lenders
required thereby).  The Borrower and the
other Credit Parties each acknowledge that the Lenders and the Administrative
Agent have not made any assurances concerning any possibility of an extension
of an Applicable Forbearance Period or the entering into of any waiver,
forbearance or amendment.

 

(d)            Limitations on
Additional Extensions of Credit.  The Borrower and the other Credit Parties each
acknowledge and agree that (i) no additional Loans or other financial
accommodation under the Credit Agreement shall be made by the Lenders (including
the L/C Issuers) to the Borrower other than during the period commencing on the
Second Forbearance Effective Date and ending on the earlier of the Holding
Company Forbearance Termination Date and July 31, 2009, the renewal,
extension or amendment of Letters of Credit; provided that the aggregate
Revolving Credit Exposure of the Revolving Credit Lenders and the L/C
Obligations of the Borrower shall not increase after giving effect to such
renewal, extension or amendment as provided above and (ii) all L/C
Obligations shall be Cash Collateralized (in an amount equal to the then
Outstanding Amount of such L/C Obligations) in the manner contemplated by Section 2.03(g) of
the Credit Agreement (but without regard to whether such Cash Collateralization
is expressly required by such Section) pursuant to the LC Cash Collateral
Agreement. In connection with any financial accommodations incurred or extended
pursuant to the Credit Agreement as permitted by clause (i) of the
preceding sentence, the conditions specified in Section 4.02 of the Credit
Agreement shall be required to be satisfied; provided that solely for
such purposes (x) any representations and warranties (i) pursuant to Section 5.05(b) of
the Credit Agreement shall not be required to be made and (ii) pursuant to
Section 5.07 of the Credit Agreement shall be deemed modified so that the
representation excludes the effects of defaults under the Existing Notes
Indentures solely as a result of the existence of one or more Specified
Defaults, (y) no Specified Default shall be deemed to constitute a Default
or Event of Default for purposes of the representation and warranty contained
in the second sentence of Section 5.07 of the Credit Agreement, and (z) no
Specified Default shall be deemed to constitute a Default or Event of Default
(the items included in (x), (y) and (z), the “Permitted Exceptions”).

 

(e)             Certain
Definitions.  As used in
this Second Forbearance Agreement, the following terms shall have the meanings
set forth below:

 

“Amended and Restated Credit Agreement”
means, collectively, the amendment and restatement of the Credit Agreement and
certain other Loan Documents on the terms and conditions contemplated by the
Plan.

 

“Applicable Forbearance Period” means (i) with
respect to each Holding Company, the Holding Company Forbearance Period, and (ii) with
respect to each Credit Party (other than the Debtor Credit Parties), the Other
Credit Party Forbearance Period.

 

“Applicable Forbearance Termination Date”
means (i) with respect to each Holding Company and the Holding Company
Forbearance Period, the Holding Company Forbearance Termination Date, and (ii) with
respect to each Credit Party (other than the Debtor Credit Parties) and the
Other Credit Party Forbearance Period, the Other Credit Party Forbearance
Termination Date.

 

4

 

“Bankruptcy Code” means United States
Code entitled “Bankruptcy”, as now and/or hereinafter effect or any successor
thereto.

 

“Borrower Chapter 11 Case” means the
case to be, or thereafter that has been, commenced by the Borrower under
chapter 11 of the Bankruptcy Code.

 

“Cash Collateral Stipulation” means
the Interim Cash Collateral Stipulation and/or the Final Cash Collateral
Stipulation, as the context may require.

 

“Chapter 11 Cases” means the Borrower
Chapter 11 Case and the Holding Company Chapter 11 Cases.

 

“CMBS Subsidiary Chapter 11 Case”
means the case to be, or thereafter that has been, commenced by each of the
CMBS Subsidiaries under chapter 11 of the Bankruptcy Code.

 

“Confirmation Order” means the
confirmation order in the Chapter 11 Cases confirming the Plan in form and substance satisfactory to the
Requisite Lenders.

 

“Debtor Credit Parties” means the
Borrower, the Holding Companies and, on and after the commencement of the Other
Chapter 11 Cases, River Central and Tropicana Station.

 

“Existing Notes Indentures” means,
collectively, the Existing Senior Notes Indentures and the Existing Senior
Subordinated Notes Indentures.

 

“Final Cash Collateral Stipulation”
means the final order for, inter alia, use
of cash collateral, adequate protection and post-petition debtor-in-possession
financing in the form of the Interim Cash Collateral Stipulation (with such
technical modifications thereto to reflect its “final order” status), as the
same may be amended or modified from time to time with the consent of the
Borrower and the Required Lenders.

 

“Forbearance Default” means (i) the
occurrence of any Event of Default (including, without limitation, the failure
to pay accrued but unpaid interest on the Loans and scheduled repayments of the
Term Loans when and as due but excluding the Specified Defaults), or (ii) any
representation, warranty or certification made or deemed made by the Borrower
or any other Credit Party in connection with this Second Forbearance Agreement
(other than the Permitted Exceptions) shall be false in any material respect on
the date as of which made or deemed made.

 

“Holding Company Forbearance Period”
means the period beginning on the Second Forbearance Effective Date and ending
on the earliest to occur of (i) the Other Credit Party Forbearance
Termination Date, (ii) the commencement of the Borrower Chapter 11 Case, (iii) the
trustee, agent or any of the holders of the Existing Notes or any other Junior
Financing commence an involuntary bankruptcy proceeding against the Borrower,
and (iv) the commencement of the Holding Company Chapter 11 Cases (the
earliest to occur of clauses (i), (ii), (iii) or (iv) being the “Holding
Company Forbearance Termination Date”).

 

“Holding Company Forbearance Termination
Date” has the meaning provided in the definition of Holding Company
Forbearance Period.

 

5

 

“Holding Company Chapter 11 Cases”
means the cases to be, or thereafter that has been, commenced by the Holding
Companies under chapter 11 of Bankruptcy Code.

 

“Interim Cash Collateral Stipulation”
means the interim order for, inter alia, use
of cash collateral, adequate protection and post-petition debtor-in-possession
financing in the form of Exhibit E hereto, as the same may be
amended or modified from time to time with the consent of the Borrower and the
Required Lenders.

 

“Non-Funding Lender” means each
Revolving Credit Lender that failed to fund Revolving Credit Loans requested by
the Borrower pursuant to that certain Committed Loan Notice, dated December 18,
2008, in respect of a Revolving Credit Borrowing aggregating $11,579,210.90.

 

“Other Chapter 11 Cases” means the
cases to be, or thereafter that has been, commenced by each of River Central
and Tropicana Station under chapter 11 of the Bankruptcy Code.

 

“Other Credit Party Forbearance Period”
means the period beginning on the Second Forbearance Effective Date and ending
on the earliest to occur of:

 

(i)                                     any Forbearance Default;

 

(ii)                                  the Administrative Agent’s
receipt from the Borrower of a Payment Notice or the making of any payment
(including interest) on the Existing Notes or any other Junior Financing by the
Loan Parties, any of their Subsidiaries or the Permitted Holders;

 

(iii)                               any Credit Party shall make
any payment to or for the benefit of the trustee, agent or any of the holders
of the Existing Notes under any Existing Notes Indentures in the form of a
consent fee, waiver fee or forbearance fee, or otherwise (other than (x) fees
and expenses payable to legal and financial advisors which the Borrower is
contractually obligated to reimburse as of the Second Forbearance Effective
Date and (y) trustee and similar fees and expenses payable to the trustee
under each Existing Notes Indenture (in its capacity as such) in accordance
with the terms of the Existing Notes Indentures), without the express written
consent of the Required Lenders;

 

(iv)                              the trustee, agent or any of
the holders of the Existing Notes or any other Junior Financing commence an
involuntary bankruptcy proceeding against the Borrower which is neither
dismissed nor converted to a voluntary chapter 11 proceeding of the Borrower
prior to the earlier of (i) entry of an order for relief in such
involuntary proceeding and (ii) the 60th day after the date of filing of
the involuntary petition;

 

(v)                                 11:59 p.m. (New York
City time) on July 31, 2009, unless the Petition Filing Date shall have
occurred at or prior to such time;

 

(vi)                              11:59 p.m. (New York
City time) on January 31, 2010, unless the Plan and the Confirmation Order
shall have become effective at or prior to such time (such time of
effectiveness, the “Plan Effective Time”);

 

6

 

(vii)                           any amendments or
modifications to the Plan or the Confirmation Order having been made after the
Plan Effective Date (other than technical modifications that are not adverse to
the interests of the Lenders) without the consent of the Required Lenders (or,
to the extent required by the Bankruptcy Code, Bankruptcy Rules or other
applicable law, the Requisite Lenders);

 

(viii)                        the earlier of (a) 10
days following the Plan Effective Time and (b) February 10, 2010,
unless the restructuring transactions contemplated by the Plan (including the entering
into of the Amended and Restated Credit Agreement) shall have been consummated
on the terms and conditions provided in the Plan;

 

(ix)                                11:59 p.m. (New York
City time) on the sixth Business Day following the Petition Filing Date, unless
the Interim Cash Collateral Stipulation shall have been entered by the
applicable bankruptcy court on an “interim order” basis at or prior to such
time;

 

(x)                                   11:59 p.m. (New York
City time) on the 30th day following the Cash Collateral Stipulation Effective
Date for the Interim Cash Collateral Stipulation (or such later date as shall
be acceptable to the Administrative Agent in its sole discretion), unless the
Final Cash Collateral Stipulation shall have been entered by the applicable
bankruptcy court on an “final order” basis at or prior to such time;

 

(xi)                                the occurrence of any Event
of Default under, and as defined in, the Cash Collateral Stipulation;

 

(xii)                             amendments, modifications,
alterations, rejections and/or terminations to or of the Master Lease and/or
any Casino Sublease that, when taken as a whole, are adverse to the interests
of the Lenders in any material respect (as determined by the Required Lenders),
unless otherwise consented to by the Required Lenders;

 

(xiii)                          the Debtors (as defined in
the Cash Collateral Stipulation) shall propose any plan of reorganization which
fails to provide for treatment consistent with the Plan or solicit ballots for
any such plan, or the Debtors (as so defined) shall take any action in support
of such a plan; and

 

(xiv)                         fifteen (15) Business Days
after delivery of written notice by the Administrative Agent (acting at the
direction of Required Lenders (determined for this purpose only as if the
reference to 50% in the definition thereof were instead 66-2/3%)) to any Loan
Party of the occurrence of a Material Adverse Effect in respect of the
Guarantors, taken as a whole.

 

“Other Credit Party Forbearance
Termination Date” means the first to occur of the times or events described
in clauses (i) through (xiv) in the definition of Other Credit Party
Forbearance Period.

 

“Payment Notice” has the meaning
provided in Section 4(g).

 

“Permitted Exceptions” has the meaning
provided in Section 2(d).

 

7

 

“Petition Filing Date” means the date
upon which the Borrower’s Chapter 11 Case, the Holding Company Chapter 11 Cases
and the CMBS Subsidiary Chapter 11 Cases are commenced by the filing of a
voluntary petition or the voluntary conversion of an involuntary bankruptcy
petition.

 

“Plan” means a chapter 11 plan of reorganization in form
and substance satisfactory to the Requisite Lenders filed with the applicable
bankruptcy court in the Chapter 11 Cases.

 

“Plan Effective Time” has the meaning
provided in the definition of “Other Credit Party Forbearance Period”.

 

“Pre-Forbearance Default” means any
Event of Default described in items (i), (iii) and (vi) of Exhibit B
hereto.

 

“Requisite Lenders” means, as of any
date of determination, Lenders (i) which hold at least 66-2/3% of the sum
of (x) the Total Outstandings (with the aggregate amount of each Lender’s risk
participation and funded participation in L/C Obligations and Swing Line Loans
being deemed “held” by such Lender for purposes of this definition) on such
date and (y) the aggregate unused Revolving Credit Commitments (if any) on
such date, in each case that vote in connection with the approval of the
Amended and Restated Credit Agreement and the Plan in the Chapter 11 Cases and (ii) represent
more than 50% in number of the Lenders that vote in connection with the
approval of Amended and Restated Credit Agreement and the Plan in the Chapter
11 Cases.

 

“River Central” means River Central,
LLC, a limited liability company organized under the laws of Nevada and an
Immaterial Subsidiary of the Borrower.

 

“Second Forbearance Effective Date”
has the meaning provided in Section 17.

 

“Specified Default” means any Event of
Default described on Exhibit B hereto.

 

“Tropicana Station” means Tropicana
Station, LLC, a limited liability company organized under the laws of Nevada
and an Immaterial Subsidiary of the Borrower.

 

SECTION 3.                                Amendments
and Consents to Credit Agreement.  Effective as of and for the period commencing
on the Second Forbearance Effective Date, the following provisions of the
Credit Agreement shall be modified as set forth below (which modifications are
in addition to those amendments, modifications and waivers contained in the
First Forbearance Agreement and this Second Forbearance Agreement, which shall
remain in full force and effect).  For
the avoidance of doubt, the Credit Agreement shall remain modified as set forth
in this Section 3 after each Applicable Forbearance Termination Date, and
the modifications in this Section 3 shall not operate as a waiver of any
Default or Event of Default.

 

(a)             Amendments to Section 1.01.  (i) The definition of “Cash Collateral Stipulation”  is
amended by inserting the word “Second” immediately prior to the text “Forbearance
Agreement”.

 

(ii)                                  The definition
of “CAO Certification”  is
amended by deleting the text “Potential Specified Defaults (as defined in the
Forbearance” therein and inserting the text “Specified Defaults (as defined in
the Second Forbearance” in lieu thereof.

 

8

 

(iii)                               The definition
of “Immaterial Subsidiaries” is amended by
inserting the following text immediately prior to the period (“.”) at the end
of said definition:

 

“provided, further,
that in no event shall Past Enterprises constitute (or be permitted to be
designated as) an Immaterial Subsidiary for purposes of this Agreement or any
other Loan Document.”.

 

(iv)                              The definition
of “Loan Document” is amended by deleting
the text “and the Forbearance Agreement” and inserting the text “, the
Forbearance Agreement, the Second Forbearance Agreement and the LC Cash
Collateral Agreement” in lieu thereof.

 

(v)                                 The following
new definitions are hereby added in the appropriate alphabetical order:

 

“Borrower Forbearance
Termination Date” has the meaning assigned to that term in the
Forbearance Agreement. It is understood and agreed that the “Borrower
Forbearance Termination Date” occurred on May 29, 2009.

 

“Cash Collateral
Stipulation Effective Date” means the date of the entry of the
Interim Cash Collateral Stipulation or the Final Cash Collateral Stipulation,
as the context may require, by the appropriate bankruptcy court.

 

“LC Cash Collateral
Agreement” means that certain Cash Collateral Agreement, dated as of
March 2, 2009, by and among the Borrower, the Administrative Agent and
Deutsche Bank Trust Company Americas, as Account Custodian.

 

“Past Enterprises”
means Past Enterprises, Inc., an Arizona corporation.

 

“Petition Filing Date”
has the meaning assigned to that term in the Second Forbearance Agreement.

 

“Second Forbearance
Agreement” means the Second Forbearance Agreement; and Second
Amendment to the Credit Agreement, dated as of July 28, 2009, by and among
the Borrower, the Holding Companies, the other Loan Parties, the Lenders party
thereto and the Administrative Agent.

 

“Second Forbearance Effective
Date” has the meaning assigned to that term in the Second
Forbearance Agreement.

 

(b)            Amendments to Section 2.05.  (i) Section 2.05(a) is amended
by deleting clause (iv) thereof and inserting the following new clause (iv) in
lieu thereof:

 

“(iv)          It is
understood and agreed that (x) for all periods from and after the
Forbearance Effective Date and prior to the Second Forbearance Effective Date,
the application of prepayments as provided in Section 2.05(a) shall
be subject to the express requirements of Section 4(b) of the
Forbearance Agreement and, in the event of any conflict or inconsistency, the
provisions of said Section 4(b) of the Forbearance Agreement shall
control, and (y) for all periods from and after the Second Forbearance
Effective Date and prior to the Holding Company Forbearance Termination Date,
the application of prepayments as provided in Section 2.05(a) shall
be subject to the express requirements of Section 4(b) of

 

9

 

the Second Forbearance Agreement and, in the event of any conflict or
inconsistency, the provisions of said Section 4(b) of the Second
Forbearance Agreement shall control.”.

 

(ii) 
Section 2.05(b)(iii) is amended by inserting the text “(other than
the DIP Financing (as defined in the Cash Collateral Stipulation))” immediately
following the word “Indebtedness” in said Section.

 

(c)             Amendment to Section 2.12.  Section 2.12 is amended by deleting
clause (h) of said Section in its entirety and inserting the following
new clause (h) in lieu thereof:

 

“(h) Notwithstanding
anything to the contrary contained above in this Section 2.12 or elsewhere
in this Agreement, on and after the Cash Collateral Stipulation Effective Date,
certain cash payments made by the Loan Parties to the Administrative Agent
shall be applied in accordance with the terms of the Cash Collateral
Stipulation as (and to the extent) required thereby.”.

 

(d)            Amendment to Section 8.01.  Section 8.01 is amended by deleting
subsection (p) at the end of said Section and inserting the following
subsection (p) in lieu thereof:

 

“(p) Second Forbearance Agreement. The Borrower or any Loan Party
shall fail to comply with any term, covenant or condition contained in Section 2,
4, 5, 6, 8, 17 or 18 of the Second Forbearance Agreement (with
time being of the essence); provided that, with respect
to any default in the performance of or compliance with any term contained in
paragraphs (c) and (d) of Section 4 of the Second Forbearance
Agreement, such default shall not have been remedied or waived within five
Business Days after notice of such default from the Administrative Agent.”.

 

(e)             Consent to Cash Collateral
Stipulation and Amendment to LC Cash Collateral Agreement.  The Lenders hereby (i) consent to the
terms of each Cash Collateral Stipulation and the transactions contemplated
thereby (including, without limitation, the use of cash collateral and the
post-petition debtor-in-possession financing contemplated thereby), subject to
the approval by the Required Lenders of amendments and/or modifications to the
same from time to time as contemplated by the definition of “Interim Cash
Collateral Stipulation” or “Final Cash Collateral Stipulation”, as applicable,
and (ii) consent to the amendment to the LC Cash Collateral Agreement in
the form of Exhibit G hereto and authorize the Administrative Agent
to enter into such amendment.

 

(f)               Special Notice to Loan Parties, etc.  (i) The
Administrative Agent hereby gives notice to the Credit Parties pursuant to Section 3.03(b) of
the Guaranty, Section 5.03(b) of the Security Agreement, Section 5.03(b) of
the Pledge Agreement and Section 4.03(b) of the Intellectual Property
Security Agreement that all Indebtedness owed by each Guarantor to any
Subsidiary is fully subordinated to the payment of the respective “Obligations”
on the terms described in the resepctive Loan Document.

 

(ii) The Credit
Parties, the Administrative Agent and the Lenders hereby agree that any
provisions of any Loan Document which require delivery of notice to the
Borrower (including, without limitation, Sections 4.01 and 6.15 of the Security
Agreement) and not other Loan Parties are hereby deemed modified to permit the
giving of notice to Past Enterprises (in lieu of the Borrower).

 

10

 

SECTION 4.                                Supplemental
Terms, Conditions and Covenants On and After the Second Forbearance Effective
Date.

 

The
Credit Parties hereto hereby agree to comply with the following terms,
conditions and covenants from and after the Second Forbearance Effective Date,
in each case notwithstanding any provision to the contrary set forth in this
Second Forbearance Agreement, the Credit Agreement or any other Loan Document:

 

(a)             Specified
Defaults.  Each of the
Pre-Forbearance Defaults constitutes an Event of Default on and after the
Second Forbearance Effective Date.  Each
of the other Specified Defaults (other than (w) the events described in
item (ii) on Exhibit B, until the occurrence of the applicable
date specified therein, (x) the events described in items (iii) and (iv) on
Exhibit B, until the holders of the relevant Existing Notes (or the
trustee on behalf of such holders) shall have the right to accelerate such
Existing Notes, (y) the events described in item (v) on Exhibit B,
until the occurrence the filing of the Borrower Chapter 11 Case and (z) the
events described in item (vii) on Exhibit B, until the
occurrence the filing of the Holding Company Chapter 11 Cases) shall be deemed
to be an Event of Default from and after the Other Credit Party Forbearance
Termination Date.

 

(b)            Prepayments.  From and after the Second Forbearance
Effective Date and prior to the Petition Filing Date, all voluntary prepayments
of the Loans shall be applied ratably to (i) repay principal of outstanding
Revolving Credit Loans and L/C Borrowings (and after same have been repaid in
full, to repay and/or Cash Collateralize L/C Obligations not then Cash
Collateralized) and (ii) repay outstanding principal of Term Loans, with (x) the
amount to be allocated pursuant to preceding clause (i) to equal the
amount of the respective aggregate amount to be prepaid multiplied by a
fraction the numerator of which is the aggregate Revolving Credit Exposure of
all Revolving Credit Lenders at such time (less the amount of any L/C
Obligations which have theretofore been, and are at that time, Cash
Collateralized) and the denominator of which is the sum of such numerator plus
the aggregate principal amount of then outstanding Term Loans, and (y) the
amount to be applied pursuant to preceding clause (ii) to equal the
aggregate amount to be so prepaid multiplied by a fraction the numerator of
which is the aggregate principal amount of then outstanding Term Loans and the
denominator of which is the same as the denominator described in preceding
clause (x).  On and after the Cash
Collateral Stipulation Effective Date, certain cash payments described in the
Cash Collateral Stipulation shall be applied in accordance with the
requirements of the Cash Collateral Stipulation.

 

(c)             Cooperation and
Access.  The Borrower shall cooperate
reasonably and in good faith with the Administrative Agent, Blackstone Advisory
Services, L.P. (together with any successor or replacement selected by the
Administrative Agent or its counsel, the “Lender Financial Advisor”) and
such other professional advisors retained from time to time by the
Administrative Agent, in providing access to the Loan Parties’ books and
records, other information relating to their business and financial affairs,
properties and senior management team upon reasonable prior notice, during
regular business hours and for reasonable durational periods. Notwithstanding
the foregoing, the Lender Financial Advisor shall not have access to any area
or information with respect to which such access is prohibited or restricted by
applicable Gaming Laws, nor shall the Lender Financial Advisor have access to
marketing or patron tracking data or other similar trade secret data that is
not relevant to measurement of the financial performance of the Borrower or its
Subsidiaries and joint ventures.

 

(d)            Financial and
Other Information.  In addition
to the financial statements and other reports required to be provided under the
Credit Agreement, the Borrower shall deliver to the Administrative Agent (and,
in the case of clause (iv) below, take the other actions specified
therein):

 

(i)                on Wednesday (or the
immediately succeeding Business Day if Wednesday is not a Business Day) of each
week, a rolling 13-week consolidated cash flow forecast of the Borrower and its
Restricted Subsidiaries, in the form set forth on Exhibit C (the “13-Week

 

11

 

Cash Flow Forecast”), with each
delivery of the 13-Week Cash Flow Forecast to be deemed to be a representation
by the Borrower that such 13-Week Cash Flow Forecast has been prepared based
upon good faith estimates and assumptions that the Borrower believes were
reasonable at the time made (it being understood and agreed that such 13-Week
Cash Flow Forecast is not to be viewed as fact and that actual results during
the period or periods covered thereby may differ from such projected results)
and to be accompanied by a certification of the chief financial officer or such
other financial officer that is a Responsible Officer that such 13-Week Cash
Flow Forecast has been prepared based upon good faith estimates and assumptions
that the Borrower believes were reasonable at the time made (it being
understood and agreed that such 13-Week Cash Flow Forecast is not to be viewed as
fact and that actual results during the period or periods covered thereby may
differ from such projected results);

 

(ii)             on Wednesday (or the
immediately succeeding Business Day if Wednesday is not a Business Day) of each
week, a variance report showing on a line item basis the percentage and dollar
variance of actual cash disbursements and cash receipts for the prior week from
the amounts set forth for such week in the applicable 13-Week Cash Flow
Forecast;

 

(iii)          as soon as available and in
any event within thirty (30) days (or, in the case of the MD&A referred to
below, forty (40) days) after the end of each month ending on and after the
month ending June 30, 2009, the unaudited consolidated balance sheet of
the Borrower and its Restricted Subsidiaries as of the end of such month and
the related unaudited consolidated statements of income of the Borrower and its
Restricted Subsidiaries for such month and for the portion of the Borrower’s
fiscal year then elapsed, setting forth in respect of the consolidated
statements of income in comparative form the corresponding figures for the
preceding fiscal year and commencing with the financial statements for the
month ended February 28, 2009, the corresponding projected statements of
income set forth in the Long-Term Business Plan, together with a CAO
Certification and, with respect to the last month of each fiscal quarter,
MD&A with respect to the foregoing; and

 

(iv)         the other financial
information described on Exhibit F hereto and take the other
actions specified therein, in each case within the time frames specified
therefor on Exhibit F.

 

(e)             Draft of
Long-Term Business Plan.  The
Borrower shall deliver a long-term business plan (the “Long-Term Business
Plan”) to the Administrative Agent by no later than July 28, 2009,
which shall include (i) forecasted consolidated balance sheets (assuming a
static capitalization) and forecasted consolidated statements of income and
cash flows of the Borrower and its Restricted Subsidiaries for the next
succeeding three fiscal years and (ii) forecasted consolidated statements
of income and cash flows of the Borrower and its Restricted Subsidiaries for
each month of the fiscal year ending in 2009.

 

(f)               Prohibition on
Assignments and Participations.  From and after the Second Forbearance
Effective Date, the Credit Parties, the Equity Investors, the Permitted Holders
and each of their respective Affiliates shall be prohibited from purchasing (by
assignment, participation or otherwise), in whole or in part, any Commitment,
Loan, Letter of Credit or any other Obligation.

 

(g)            Subordinated
Indebtedness Payments.  The
Borrower shall give the Administrative Agent 5 Business Days’ prior notice of
its intent to make any payment (including any payment of interest) with respect
to any Existing Notes or any other Junior Financing (the “Payment Notice”).

 

12

 

(h)            Restrictions on
Cure Rights; Accordion. 
Notwithstanding anything in the Credit Agreement to the contrary, the
Borrower shall not, directly or indirectly, (x) exercise any “equity cure
right” described in Section 8.05 of the Credit Agreement, or (y) request,
effect or incur any Revolving Commitment Increase or any Incremental Term Loans
pursuant to Section 2.14 of the Credit Agreement.

 

(i)                Additional
Restrictions. 
Notwithstanding anything in the Credit Agreement to the contrary (but
subject to the additional restrictions in the immediately succeeding sentence),
from and after Second Forbearance Effective Date, the Borrower shall not, nor
shall it permit any of its Restricted Subsidiaries to, directly or indirectly, (A) incur
any Indebtedness, (B) create or incur any new Liens, (C) make any
Investments, (D) make any Restricted Payments, or (E) consummate any
Disposition, except, in the case of each such clause, in the ordinary course of
business and, in the case of Investments or Dispositions by a Loan Party that
is not an Immaterial Subsidiary in or to a Loan Party that is an Immaterial
Subsidiary, consistent with past practices or as otherwise permitted by Cash
Collateral Stipulation and the “Budget” referred to therein; provided, however,
that the Borrower and its Restricted Subsidiaries shall in any event be
permitted to (x) incur Indebtedness permitted under Sections 7.03(f), (m),
(o), (p) and (q) of the Credit Agreement, (y) create or incur
Liens permitted under Sections 7.01(c), (d), (e), (f), (g), (l) and (t) of
the Credit Agreement and (z) the Borrower may incur Postpetition Financing
(as defined in the Cash Collateral Stipulation) from Vista Holdings, LLC and
postpetition intercompany debt from Past Enterprises, in each case on the terms
and conditions provided in the Cash Collateral Stipulation.  Furthermore, from and after the Second
Forbearance Effective Date, (i) the Borrower and its Restricted
Subsidiaries may not take any action that would be prohibited by the express
terms of the Credit Agreement at any time while a Default or Event of Default
is in existence, (ii) no payments of the type described in Section 7.08(m) of
the Credit Agreement may be made to the Holding Company or the Equity
Investors, (iii) the Borrower and its Restricted Subsidiaries shall not
enter into, or commit to enter into, any Permitted Acquisition or
sale-leaseback transaction, (iv) the Borrower may not designate any
Restricted Subsidiary as an “Unrestricted Subsidiary” or an “Immaterial
Subsidiary” pursuant to Section 6.14 of the Credit Agreement, (v) no
payments of the type described in Sections 7.08(f) and (h) of the
Credit Agreement may be made to employees or principals of the Permitted
Holders providing services to the Borrower (including in their capacity as
members of the Borrower’s Board of Directors); provided,
however, that the payment of reasonable
out-of-pocket costs of and provisions of indemnities to such persons shall
continue to be permitted as provided in Section 7.08(h) of the Credit
Agreement, (vi) no Restricted Subsidiary shall make any Investment in, or
Restricted Payment or Disposition to, the Borrower, except for (x) at any
time prior to the Cash Collateral Stipulation Effective Date, Investments in
the Borrower in the ordinary course of business and consistent with past
practices and (y) at any time on and after the Cash Collateral Stipulation
Effective Date, Investments and/or Restricted Payments permitted to be made by
Past Enterprises pursuant to the terms of the Cash Collateral Stipulation, (vii) on
and after the Cash Collateral Stipulation Effective Date, neither the Borrower
nor any of its Restricted Subsidiaries may make any Investment in, or
Restricted Payment to, any Person (including River Central, Tropicana Station
and any Unrestricted Subsidiary), except as provided in the Cash Collateral
Stipulation and the “Budget” referred to therein, and (ix) Past
Enterprises shall not merge, dissolve, consolidate with or into another Person
or conduct, transact or otherwise engage in any business other than (1) the
maintenance of its legal existence, (2) the performance of the Loan
Documents to which it is a party and (3) the performance of treasury
functions and related activities as described in the Cash Collateral
Stipulation. For purposes of this clause (i), the term “Indebtedness” as used
herein shall exclude the effects of clause (B) of the second sentence of
the definition of “Indebtedness” contained in the Credit Agreement.

 

(j)                Fees and
Expenses.  (i) The
Borrower and, if the Borrower is prohibited from doing so by Applicable Law,
the Guarantors shall pay within 10 days of receipt of an invoice therefor

 

13

 

(subject
to redaction to protect privileges or other confidential communications) all
reasonable fees and expenses to be paid to White & Case LLP, Simpson
Thacher and Bartlett LLP, McDonald Carano Wilson LLP and the Lender Financial
Advisor.

 

(ii)                                  The Borrower
and the Guarantors jointly and severally agree to pay for the account of each
Consenting Lender (as defined below) a non-refundable cash fee (the “Deferred
Forbearance Fee”) in Dollars in an aggregate amount equal to 125 basis
points (1.25%) on an amount equal to the sum of (i) the aggregate
principal amount of the Loans of such Consenting Lender plus (ii) such
Consenting Lender’s Pro Rata Share of all L/C Obligations and Swing Line Loans plus
(iii) such Consenting Lender’s unused Revolving Credit Commitment, in each
case as outstanding or in effect at 11:00 A.M. (New York City time) on July 28,
2009, which Deferred Forbearance Fee shall be (x) earned by such
Consenting Lender on the Second Forbearance Effective Date and (b) payable
to such Consenting Lender on the date (and subject to the occurrence) of the
effectiveness of the Amended and Restated Credit Agreement.

 

(k)             Special
Guarantor Covenants.  The
Guarantors hereby (i) reaffirm their guaranty of the due and punctual payment
of the Obligations (as defined in the Guaranty) when the same come due (whether
before or after the Petition Filing Date) pursuant to the Guaranty, (ii) reaffirm
their covenants and agreements in Section 2.11 of the Guaranty (to which
they shall be bound both before and after the Petition Filing Date), and (iii) covenant
and agree (without limiting the generality of the foregoing) at all times on
and after the Petition Filing Date to perform and comply with all terms,
covenants and agreements contained in this Second Forbearance Agreement and
Articles II, III and X of the Credit Agreement directly applicable to the
Borrower as if the same were directly applicable to the Guarantors (which are
incorporated herein mutatis mutandi
as if set forth herein in their entirety). 
Past Enterprises, for its part, hereby covenants and agrees (without
limiting the generality of the foregoing) to perform all obligations of the
Borrower described in Sections 3(a), (c) and (d) of the Security
Agreement (and similar obligations of the Borrower in other Collateral
Documents) as if the same were directly applicable to Past Enterprises.

 

(l)                Filing of
Chapter 11 Cases.  If the
Borrower elects to commence a Borrower Chapter 11 Case or the Holding Companies
elect to commence a Holding Company Chapter 11 Case, the Borrower and the
Holding Companies shall cause the Borrower Chapter 11 Case, all Holding Company
Chapter 11 Cases, all CMBS Subsidiary Chapter 11 Cases and all Other Chapter 11
Cases to be commenced in Reno, Nevada on the same day.

 

SECTION 5.                                Representations, Warranties And
Covenants Of The Borrower and The Other Credit Parties.

 

To
induce the Lenders and the Administrative Agent to execute and deliver this
Second Forbearance Agreement, each of the Borrower and the other Credit Parties
represents, warrants and covenants that:

 

(a)             Organization
and Powers.  Each Credit
Party (a) is a corporation, limited liability company or limited
partnership, duly organized or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or organization, (b) has
all requisite power and authority to (i) own or lease its assets and carry
on its business and (ii) execute and deliver, and perform its obligations
under, this Second Forbearance Agreement, (c) is duly qualified and in
good standing under the Laws of each jurisdiction where its ownership, lease or
operation of properties or the conduct of its business requires such
qualification, (d) is in compliance with all Laws, orders, writs,
injunctions and orders, and (e) has all requisite governmental licenses,
authorizations, consents and approvals to operate its business as currently
conducted; except in each case referred to in clause

 

14

 

(c),
(d) or (e), to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect.

 

(b)            Authorization
of Agreement; No Conflict.  The
execution, delivery and performance of this Second Forbearance Agreement by
each Credit Party is within such Credit Party’s corporate or other powers, has
been duly authorized by all necessary corporate or other organizational action,
and does not and will not (a) contravene the terms of any of such Credit
Party’s Organization Documents, (b) conflict with or result in any breach
or contravention of, or the creation of any Lien under (other than Permitted
Liens), or require any payment to be made under (i) (x) any Existing
Notes Documentation or (y) any other Contractual Obligation to which such
Credit Party is a party or affecting such Credit Party or the properties of
such Credit Party or any of its Subsidiaries or (ii) any material order,
injunction, writ or decree of any Governmental Authority or any arbitral award
to which such Loan Party or its property is subject; or (c) violate any
material Law.

 

(c)             Governmental
Consents.  No material
approval, consent, exemption, authorization, or other action by, or notice to,
or filing with, any Governmental Authority or any other Person is necessary or
required in connection with (a) the execution, delivery or performance by,
or enforcement against, any Credit Party of this Second Forbearance Agreement
or (b) the exercise by the Administrative Agent or any Lender of its
rights under this Second Forbearance Agreement, except for those approvals,
consents, exemptions, authorizations or other actions, notices and filings
which have been duly obtained, taken, given or made and are in full force and
effect.

 

(d)            Binding
Obligation.  This Second
Forbearance Agreement has been duly executed and delivered by each Credit
Party.  This Second Forbearance Agreement
constitutes a legal, valid and binding obligation of such Credit Party,
enforceable against each such Credit Party in accordance with its terms, except
as such enforceability may be limited by Debtor Relief Laws and by general
principles of equity.

 

(e)             Incorporation
of Representations and Warranties and Covenants from Loan Documents.  Except with respect to the Pre-Forbearance
Defaults and the Permitted Exceptions, the representations and warranties
contained in the Credit Agreement and each of the other Loan Documents are and
will be true, correct and complete in all material respects on and as of the
Second Forbearance Effective Date to the same extent as though made on and as
of that date, except to the extent such representations and warranties
specifically relate to an earlier date, in which case they were true, correct
and complete in all material respects on and as of such earlier date, and each
of the agreements and covenants in the Credit Agreement and the other Loan
Documents is hereby reaffirmed with the same force and effect as if each were
separately stated herein and made as of the date hereof.

 

(f)               Absence of
Default.  As of the Second Forbearance Effective
Date, (x) no Default or Event of Default has occurred or is continuing
under the Credit Agreement or any other Loan Document (other than the
Pre-Forbearance Defaults) and (y) except solely with respect to the Specified
Events described in item (ii) of Exhibit A as to each issue of
Existing Notes, no “Default” or “Event of Default” (as those terms are defined
in the Existing Notes Indentures) has occurred or is continuing in respect of
the Existing Notes.

 

(g)            Collateral. The Lenders’
and the Administrative Agent’s security interests in the Collateral (to the
extent required pursuant to the Collateral and Guaranty Requirement) continue
to be valid, binding, and enforceable first-priority security interests which
secure the Obligations (subject only to the Permitted Liens).

 

15

 

(h)            True and
Complete Disclosure.  All factual
information (taken as a whole) furnished by or on behalf of any Credit Party in
writing to the Administrative Agent or any Lender for purposes of or in
connection with this Second Forbearance Agreement or any transaction
contemplated herein or therein is, and all other such factual information
(taken as a whole) hereafter furnished by or on behalf of any Credit Party in
writing to the Administrative Agent or any Lender will be, true and accurate in
all material respects on the date as of which such information is dated or
certified and not incomplete by omitting to state any fact necessary to make
such information (taken as a whole) not misleading in any material respect at
such time in light of the circumstances under which such information was
provided, provided that, with respect to projected
financial information and pro forma financial information, the Credit Parties
represent only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time of preparation; it being
understood that such projections may vary from actual results and that such
variances may be material.

 

SECTION 6.                                Ratification
of Liabilities, etc..  (a) Each
of the Borrower and the other Credit Parties hereby ratifies and reaffirms all
of its payment and performance obligations and obligations to indemnify,
contingent or otherwise, under this Second Forbearance Agreement and each other
Loan Document to which such Person is a party, and each such party hereby
ratifies and reaffirms its grant of Liens on its properties pursuant to such
Loan Documents to which it is a party as security for the Obligations, and
confirms and agrees that such Liens hereafter secure all of the
Obligations.  Each Guarantor acknowledges
the effectiveness and continuing validity of the Guaranty and its liability for
the Obligations pursuant to the terms of the Guaranty and that such Obligations
are without defense, setoff and counterclaim.

 

(b)                                 Each Credit
Party (i) acknowledges receipt of a copy of this Second Forbearance
Agreement and all other agreements, documents and instruments executed and/or
delivered in connection herewith, (ii) consents to the terms and
conditions of same without prejudice to any Credit Party’s liability pursuant
to any of the Loan Documents, (iii) agrees and acknowledges that each of
the Loan Documents remains in full force and effect, that such Credit Party’s
obligations thereunder are without defense, setoff and counterclaim and that
each of the Loan Documents is hereby ratified and confirmed, and (iv) ratifies
and reaffirms each waiver of such Credit Party set forth in the Loan Documents
to which it is a party.

 

SECTION 7.                                Reference
To And Effect Upon The Credit Agreement.  (a) Except as expressly modified hereby,
all terms, conditions, covenants, representations and warranties contained in
the Credit Agreement and other Loan Documents, and all rights of the Lenders
and the Administrative Agent and all of the Obligations, shall remain in full
force and effect.  Each of the Borrower
and the other Credit Parties hereby confirms that no such party has any right
of setoff, recoupment or other offset with respect to any of the Obligations.

 

(b)            Except as expressly set
forth herein, the effectiveness of this Second Forbearance Agreement shall not
directly or indirectly (i) create any obligation to make any further Loans
or issue any Letters of Credit after the Second Forbearance Effective Date, (ii) create
any obligation to continue to defer any enforcement action after the occurrence
of any Forbearance Default, (iii) constitute a consent or waiver of any
past, present or future violations, including Defaults and Events of Default, of
any provisions of the Credit Agreement or any other Loan Documents, (iv) amend,
modify, prejudice or operate as a waiver of any provision of the Credit
Agreement or any other Loan Documents or any right, remedy, power or privilege
of the Lenders and/or the Administrative Agent, (v) constitute a consent
to any merger or other transaction or to any sale, restructuring or refinancing
transaction, or (vi) constitute a course of dealing or other basis for
altering any Obligations or any other contract or instrument.  Except as expressly set forth herein, each of
the Administrative Agent

 

16

 

and each Lender reserves all
of its rights, remedies, powers and privileges under the Credit Agreement, the
other Loan Documents, applicable law and/or equity. All of the provisions of
the Credit Agreement and the other Loan Documents are hereby reiterated, and if
ever waived (other than hereafter in writing), are hereby reinstated.
Notwithstanding any other provision in this Second Forbearance Agreement, it is
understood and agreed that during the period commencing on the Second
Forbearance Effective Date and ending on the earlier of the Holding Company
Forbearance Termination Date and July 31, 2009, notwithstanding the Borrower’s
inability to make the statements required by Section 4.02 of the Credit
Agreement (or in any Request for Credit Extension required thereby), solely to
the extent excused pursuant to the last sentence of Section 2(d) of
this Second Forbearance Agreement, but subject to all other terms and
conditions contained in the Credit Agreement and Section 2(d) hereof
(including the Cash Collateralization of Letters of Credit), any L/C Issuer may
renew, extend or amend Letters of Credit, provided that the Revolving
Credit Exposure of the Revolving Credit Lenders and the L/C Obligations of the
Borrower are not increased after giving effect to such renewal, extension or
amendment of any such Letter of Credit.

 

(c)             From and after
the Second Forbearance Effective Date, (i) the term “Agreement” in the
Credit Agreement, and all references to the Credit Agreement in any Loan
Document shall mean the Credit Agreement, and (ii) the term “Loan Document”
in the Credit Agreement and the other Loan Documents shall include, without
limitation, this Second Forbearance Agreement and any agreements, instruments
and other documents executed and/or delivered in connection herewith.

 

(d)            This Second
Forbearance Agreement shall not be deemed or construed to be a satisfaction,
reinstatement, novation or release of the Credit Agreement or any other Loan
Document.

 

SECTION 8.                                The
Borrower’s Release and Duty to Indemnify for Assigned Claims.  By its execution hereof and in consideration
of the mutual covenants contained herein and other accommodations granted to
the Credit Parties hereunder, each Credit Party, on behalf of itself and each
of its Subsidiaries, and its or their successors, assigns and agents, hereby
expressly forever waives, releases and discharges any and all claims
(including, without limitation, cross-claims, counterclaims, and rights of
setoff and recoupment), causes of action (whether direct or derivative in
nature), demands, suits, costs, expenses and damages (collectively, the “Claims”)
any of them may have or allege to have as of the date of this Second
Forbearance Agreement (and all defenses that may arise out of any of the
foregoing) of any nature, description, or kind whatsoever, based in whole or in
part on facts, whether actual, contingent or otherwise, now known, unknown, or
subsequently discovered, whether arising in law, at equity or otherwise,
against the Administrative Agent or any Lender that has executed this Second
Forbearance Agreement (other than a Non-Funding Lender), their respective
affiliates, agents, principals, managers, managing members, members,
stockholders, “controlling persons” (within the meaning of the United States
federal securities laws), directors, officers, employees, attorneys,
consultants, advisors, agents, trusts, trustors, beneficiaries, heirs,
executors and administrators of each of the foregoing (collectively, the “Released
Parties”) arising out of this Second Forbearance Agreement, the Credit
Agreement, the other Loan Documents, the Credit Facilities Term Sheet (as
defined in the First Forbearance Agreement), the Bank Solicitation Statement
(as defined in the First Forbearance Agreement) and any or all of the actions
and transactions contemplated hereby or thereby, including any actual or
alleged performance or non-performance of any of the Released Parties (other
than a Non-Funding Lender) hereunder or under the Loan Documents.  Each Credit Party hereby acknowledges that
the agreements in this Section 8 are intended to be in full satisfaction
of all or any alleged injuries or damages arising in connection with the
Claims.  In entering into this Second
Forbearance Agreement, each Credit Party expressly disclaims any reliance on
any representations, acts, or omissions by any of the Released Parties and hereby
agrees and acknowledges that the validity and effectiveness of the releases set
forth above does not depend in any way on any such representation, acts and/or
omissions or the accuracy,

 

17

 

completeness, or validity
thereof.  Notwithstanding the foregoing, (x) no
Non-Funding Lender shall have any rights or benefits under this Section 8
and none of the releases, waivers or other assurances provided by the Credit
Parties shall apply to any Claims of the Credit Parties against Non-Funding
Lenders, who shall remain fully liable for their obligations to the Credit
Parties thereunder and (y) nothing set forth in this Section 8 is
intended to, nor shall anything set forth in this Section 8 be construed
to, release any Claim that any Credit Party may hold against any Released Party
in its capacity as a lender, adviser or agent under: (i) the Casino Sale
Leaseback Transaction, (ii) the CMBS Facility and CMBS Loan Documents,
including the loans made thereunder, (iii) Land Loan Documents, including
the loans made thereunder, or (iv) the Head Office Sale Leaseback
Transaction.  The provisions of this
paragraph shall survive the termination or expiration of each Applicable
Forbearance Period and the termination of the Loan Documents and the payment in
full of all Obligations of the Credit Parties under or in respect of the Credit
Agreement and other Loan Documents and all other amounts owing thereunder.

 

SECTION 9.                                Construction.  This Second Forbearance Agreement and all
other agreements and documents executed and/or delivered in connection herewith
have been prepared through the joint efforts of all of the parties hereto.
Neither the provisions of this Second Forbearance Agreement or any such other
agreements and documents nor any alleged ambiguity therein shall be interpreted
or resolved against any party on the ground that such party or its counsel
drafted this Second Forbearance Agreement or such other agreements and
documents, or based on any other rule of strict construction.  Each of the parties hereto represents and
declares that such party has carefully read this Second Forbearance Agreement
and all other agreements and documents executed in connection herewith and
therewith, and that such party knows the contents hereof and thereof and signs
the same freely and voluntarily.  The
parties hereto acknowledge that they have been represented by legal counsel of
their own choosing in negotiations for and preparation of this Second
Forbearance Agreement and all other agreements and documents executed in connection
herewith and that each of them has read the same and had their contents fully
explained by such counsel and is fully aware of their contents and legal
effect.

 

SECTION 10.                          Counterparts.  This Second Forbearance Agreement may be
executed in any number of counterparts, each of which when so executed shall be
deemed an original, but all such counterparts shall constitute one and the same
instrument, and all signatures need not appear on any one counterpart. Any
party hereto may execute and deliver a counterpart of this Second Forbearance
Agreement by delivering by facsimile or other electronic transmission a
signature page of this Second Forbearance Agreement signed by such party,
and any such facsimile or other electronic signature shall be treated in all
respects as having the same effect as an original signature.

 

SECTION 11.                          Severability.  The invalidity, illegality, or
unenforceability of any provision in or obligation under this Second
Forbearance Agreement in any jurisdiction shall not affect or impair the
validity, legality, or enforceability of the remaining provisions or
obligations under this Second Forbearance Agreement or of such provision or
obligation in any other jurisdiction.

 

SECTION 12.                          Further
Assurances.  The
Borrower and each other Credit Party agrees to, and to cause any other Credit
Party to, take all further actions and execute all further documents as the
Administrative Agent may from time to time reasonably request to carry out the
transactions contemplated by this Second Forbearance Agreement and all other
agreements executed and delivered in connection herewith and therewith. Any
failure to comply with the agreements in this Section 12 shall be an Event
of Default for all purposes of the Credit Agreement if such failure has not been
remedied or waived within 5 Business Days after the Borrower’s receipt of
notice from the Administrative Agent.

 

18

 

SECTION 13.                          Section Headings.  Section headings in this Second
Forbearance Agreement are included herein for convenience of reference only and
shall not constitute part of this Second Forbearance Agreement for any other
purpose.

 

SECTION 14.                          Notices.  All notices, requests, and demands to or upon
the respective parties hereto shall be given in accordance with the Credit
Agreement.

 

SECTION 15.                          Governing
Law.  This Second Forbearance
Agreement and the rights and obligations of the parties under this Second
Forbearance Agreement shall be governed by, and construed and interpreted in
accordance with, the law of the State of New York.

 

SECTION 16.                          Acknowledgements.  Each Credit Party hereby acknowledges that:

 

(a)             it has carefully read and
fully understood all of the terms and conditions of this Second Forbearance
Agreement;

 

(b)            it has consulted with, or
had a full and fair opportunity to consult with, and has been advised by fully
competent counsel in the negotiation, execution and delivery of this Second
Forbearance Agreement;

 

(c)             it has had a full and fair
opportunity to participate in the drafting of this Second Forbearance Agreement
and that no provision of this Second Forbearance Agreement shall be construed
against or interpreted to the disadvantage of any party hereto by any court or
other governmental or judicial authority by reason of any party hereto having
or being deemed to have structured, dictated or drafted such provision;

 

(d)            it is freely, voluntarily,
knowingly and intelligently entering into this Second Forbearance Agreement;

 

(e)             none of the Lenders or the
Administrative Agent has a fiduciary relationship to any Credit Party, and the
relationship between the Administrative Agent and the Lenders, on the one hand,
and the Credit Parties, on the other, is solely that of creditor and debtor;
and

 

(f)               no joint venture exists
among the Credit Parties, the Administrative Agent and the Lenders.

 

SECTION 17.                          Effectiveness.  This Second Forbearance Agreement shall
become effective at the time (the “Second Forbearance Effective Date”)
that all of the following conditions precedent have been satisfied as
determined by the Administrative Agent in its sole discretion:

 

(a)             Agreement. The Administrative Agent shall have received duly
executed signature pages for this Second Forbearance Agreement signed by
the Borrower, each other Credit Party, the Required Lenders and the Revolving
Credit Lenders (which shall be at least three in number) holding more than 50%
of the Revolving Credit Commitments.

 

(b)            Due Authorization. The Administrative Agent shall have received
resolutions from each Credit Party evidencing the corporate or similar
authority of such Credit Party to execute, deliver and perform its obligations
under this Second Forbearance Agreement and, as applicable, all other
agreements and documents executed in connection therewith.

 

19

 

(c)             Accuracy of Representations.  The
representations and warranties contained in Section 5 of this Second
Forbearance Agreement are and will be true, correct and complete in all
material respects on and as of the Second Forbearance Effective Date to the same
extent as though made on and as of that date, except to the extent such
representations and warranties specifically relate to an earlier date, in which
case they were true, correct and complete in all material respects on and as of
such earlier date.

 

(d)            Opinions.  The
Administrative Agent shall have received opinions of counsel to the Credit
Parties as to the transactions contemplated hereby in form and substance
reasonably acceptable to the Administrative Agent.

 

(e)             Forbearance Fee.  The
Guarantors shall have paid to the Administrative Agent for distribution to each
Lender which has executed and delivered to the Administrative Agent (or its
designee) a counterpart hereof by 11:00 A.M. (New York City time) on July 28,
2009 (each a “Consenting Lender”), a non-refundable cash fee (the “Forbearance
Fee”) in Dollars in an aggregate amount equal to 25 basis points (0.25%) on
an amount equal to the sum of (i) the aggregate principal amount of the
Loans of such Lender plus (ii) such Lender’s Pro Rata Share of all
L/C Obligations and Swing Line Loans plus (iii) such Lender’s
unused Revolving Credit Commitment, in each case as outstanding or in effect at
11:00 A.M. (New York City time) on July 28, 2009.  The Forbearance Fee shall not be subject to
counterclaim or set-off, or be otherwise affected by, any claim or dispute
relating to any other matter.

 

(f)               Other Fees.   The Borrower
shall have paid (x) all the reasonable fees, expenses and disbursements of
White & Case LLP, Simpson Thacher & Bartlett, McDonald Carano
Wilson LLP, the Lender Financial Advisor and a single legal counsel to each
Agent which delivers its original or facsimile signature page to this
Second Amendment to the Administrative Agent or its designee no later than
11:00 A.M. (New York City time) on July 28, 2009, and for which
invoices (subject to redaction to protect privileges or other confidential
communications) have been presented to the Borrower and (y) an “evergreen”
retainer of (i) $125,000 to White & Case LLP (or such lesser
amount such that after all payments under this Section 17(f), White &
Case LLP hold an “evergreen” retainer of $125,000) and (ii) $125,000 to
Simpson Thacher & Bartlett (or such lesser amount such that after all
payments under this Section 17(f), Simpson Thacher & Bartlett
hold an “evergreen” retainer of $125,000).

 

The Administrative Agent shall provide prompt written
notice of the occurrence of the Second Amendment Effective Date to the Lenders.

 

SECTION 18.                          Assignments;
No Third Party Beneficiaries.  This Second Forbearance Agreement shall be
binding upon and inure to the benefit of the Borrower, the other Credit
Parties, the Lenders, the Administrative Agent and their respective successors
and assigns; provided, that neither the Borrower nor any other Credit
Party shall be entitled to delegate any of its duties hereunder and shall not
assign any of its rights or remedies set forth in this Second Forbearance
Agreement without the prior written consent of the Administrative Agent in its
sole discretion. No Person other than the parties hereto and their permitted
successors and assigns, shall have any rights hereunder or be entitled to rely
on this Second Forbearance Agreement and all third-party beneficiary rights are
hereby expressly disclaimed.

 

SECTION 19.                          Amendments.  This Second Forbearance Agreement constitutes
a “Loan Document” for purposes of the Credit Agreement and the other Loan
Documents.  No provision of 

 

20

 

this Second Forbearance
Agreement may be amended, modified, waiver or supplemented, except as provided
in Section 10.01 of the Credit Agreement.

 

SECTION 20.                          Final
Agreement.  This Second
Forbearance Agreement, the Credit Agreement, the other Loan Documents, and the
other written agreements, instruments, and documents entered into in connection
herewith and therewith (collectively, the “Credit Support Documents”)
set forth in full the terms of agreement between the parties hereto and thereto
and are intended as the full, complete, and exclusive contracts governing the
relationship between such parties, superseding all other discussions, promises,
representations, warranties, agreements, undertakings and understandings
between the parties with respect thereto. 
No term of the Credit Support Documents may be amended, restated, waived
or otherwise modified except in a writing signed by the party against whom
enforcement of the modification, amendment, or waiver is sought, unless
otherwise provided in the applicable Credit Support Documents.  Any waiver of any condition in, or breach of,
any of the foregoing in a particular instance shall not operate as a waiver of
other or subsequent conditions or breaches of the same or a different
kind.  The Lenders’ and/or the
Administrative Agent’s exercise or failure to exercise any rights or remedies
under any of the foregoing in a particular instance shall not operate as a
waiver of its right to exercise the same or different rights, remedies, powers
and privileges in any other instances. 
There are no oral agreements among the parties hereto.

 

SECTION 21.                          Special
Reservations.  (a) The
confirmation of the Existing Commitment Fees in Section 1(a) of this
Second Forbearance Agreement shall not be construed to be (x) a waiver of
any rights any Credit Party may have against a Non-Funding Lender on grounds
that such Non-Funding Lender is a Defaulting Lender or otherwise or (y) an
acknowledgment by the Credit Parties that a Non-Funding Lender is entitled to
the payment of the Existing Commitment Fees pursuant to Section 2.09(a) of
the Credit Agreement.

 

(b) Nothing
contained in, or arising out of the execution and delivery of, this Second
Forbearance Agreement shall be construed as a waiver of any of the rights of
the Administrative Agent, the Lenders, the Swing Line Lender and the L/C
Issuers reserved pursuant to that certain Reservation of Rights Letter, dated January 16,
2009, from the Administrative Agent to the Borrower, with respect to the
Designation described therein (and its effectiveness), all of which rights
remain expressly reserved as described therein.

 

21

 

IN
WITNESS WHEREOF, this Second Forbearance Agreement has been executed by the
parties hereto as of the date first written above.

 

	
   

  	
  STATION
  CASINOS, INC.

  
	
   

  	
  a
  Nevada corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas M. Friel

  
	
   

  	
   

  	
  Name: 

  	
  Thomas M. Friel

  
	
   

  	
   

  	
  Title: 

  	
  Executive
  Vice President, Chief Accounting Officer & Treasurer

  
	
   

  	
   

  	
   

  

 

22

 

	
   

  	
  FCP
  HOLDING, INC.,

  
	
   

  	
  a
  Nevada corporation

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Frank J. Fertitta III

  
	
   

  	
   

  	
  Name: 

  	
  Frank J. Fertitta III

  
	
   

  	
   

  	
  Title: 

  	
  President

  

 

23

 

	
   

  	
  FERTITTA
  PARTNERS LLC,

  
	
   

  	
  a
  Nevada limited liability company

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Frank J. Fertitta III

  
	
   

  	
   

  	
  Name:

  	
  Frank J. Fertitta III

  
	
   

  	
   

  	
  Title:

  	
  President

  

 

24

 

	
   

  	
  FCP
  VOTECO, LLC,

  
	
   

  	
  a
  Nevada limited liability company

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Frank J. Fertitta III

  
	
   

  	
   

  	
  Name:

  	
  Frank J. Fertitta III

  
	
   

  	
   

  	
  Title:

  	
  Co-President

  

 

25

 

	
   

  	
  BOULDER
  STATION, INC.

  
	
   

  	
  CENTERLINE
  HOLDINGS, LLC

  
	
   

  	
  CHARLESTON
  STATION, LLC

  
	
   

  	
  FIESTA
  STATION, INC.

  
	
   

  	
  FRESNO
  LAND ACQUISITIONS, LLC

  
	
   

  	
  GOLD
  RUSH STATION, LLC

  
	
   

  	
  LAKE
  MEAD STATION, INC.

  
	
   

  	
  LML
  STATION, LLC

  
	
   

  	
  MAGIC
  STAR STATION, LLC

  
	
   

  	
  PALACE
  STATION HOTEL & CASINO, INC.

  
	
   

  	
  RANCHO
  STATION, LLC

  
	
   

  	
  SANTA
  FE STATION, INC.

  
	
   

  	
  STATION
  HOLDINGS, INC.

  
	
   

  	
  STN
  AVIATION, INC.

  
	
   

  	
  SUNSET
  STATION, INC.

  
	
   

  	
  TEXAS
  STATION, LLC

  
	
   

  	
  TROPICANA
  STATION, INC.

  
	
   

  	
  TROPICANA
  STATION, LLC

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Thomas M. Friel

  
	
   

  	
  Name: 

  	
  Thomas M. Friel

  
	
   

  	
  Title: 

  	
  Senior Vice President and Treasurer

  
				

 

26

 

	
   

  	
  SC
  BUTTE DEVELOPMENT, LLC

  
	
   

  	
  SC
  BUTTE MANAGEMENT, LLC

  
	
   

  	
  SC
  MADERA DEVELOPMENT, LLC

  
	
   

  	
  SC
  MADERA MANAGEMENT, LLC

  
	
   

  	
  SC
  SONOMA DEVELOPMENT, LLC

  
	
   

  	
  SC
  SONOMA MANAGEMENT, LLC

  
	
   

  	
  STATION
  CALIFORNIA, LLC

  
	
   

  	
  STATION
  DEVELOPMENT, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas M. Friel

  
	
   

  	
   

  	
  Name: 

  	
  Thomas M. Friel

  
	
   

  	
   

  	
  Title: 

  	
  Authorized Signatory

  

 

27

 

	
   

  	
  RIVER
  CENTRAL, LLC,

  
	
   

  	
  a
  Nevada limited liability company

  
	
   

  	
   

  
	
   

  	
  By:
   Station Casinos, Inc., a Nevada
  corporation, its Manager

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Thomas M. Friel

  
	
   

  	
   

  	
  Name:
  

  	
  Thomas
  M. Friel

  
	
   

  	
   

  	
  Title:
  

  	
  Executive Vice President,
  Chief Accounting Officer & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  STATION
  CONSTRUCTION, LLC,

  
	
   

  	
  a
  Nevada limited liability company

  
	
   

  	
   

  
	
   

  	
  By:  Station Casinos, Inc., a Nevada
  corporation, its Sole Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas M. Friel

  
	
   

  	
   

  	
  Name: 

  	
  Thomas M. Friel

  
	
   

  	
   

  	
  Title: 

  	
  Executive
  Vice President, Chief Accounting Officer & Treasurer

  
	
   

  	
   

  

 

28

 

	
   

  	
  PAST
  ENTERPRISES, INC.,

  
	
   

  	
  an
  Arizona corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas M. Friel

  
	
   

  	
  Name: 

  	
  Thomas M. Friel

  
	
   

  	
  Title: 

  	
  President and Treasurer

  
				

 

29

 

	
   

  	
  SONOMA
  LAND HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas M. Friel

  
	
   

  	
   

  	
  Name: 

  	
  Thomas M. Friel

  
	
   

  	
   

  	
  Title: 

  	
  President, Chief Financial Officer & Treasurer

  

 

30

 

	
   

  	
  ARTUS
  LOAN FUND 2007-I, LTD.

  
	
   

  	
  BABSON
  CLO LTD. 2004-I

  
	
   

  	
  BABSON
  CLO LTD. 2005-I

  
	
   

  	
  BABSON
  CLO LTD. 2005-II

  
	
   

  	
  BABSON
  CLO LTD. 2005-III

  
	
   

  	
  BABSON
  CLO LTD. 2006-II

  
	
   

  	
  BABSON
  CLO LTD. 2007-I

  
	
   

  	
  SAPPHIRE
  VALLEY CDO I, LTD.

  
	
   

  	
  By:
  Babson Capital Management LLC as

  
	
   

  	
  Collateral
  Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas Q. McDonnell

  
	
   

  	
  Name:
  Thomas Q. McDonnell

  
	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAPLEWOOD
  (CAYMAN) LIMITED

  
	
   

  	
  By:
  Babson Capital Management LLC as

  Investment Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas Q. McDonnell

  
	
   

  	
  Name:
  Thomas Q. McDonnell

  
	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VINACASA
  CLO, LTD.

  
	
   

  	
  By:
  Babson Capital Management LLC as

  
	
   

  	
  Collateral
  Servicer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas Q. McDonnell

  
	
   

  	
  Name:
  Thomas Q. McDonnell

  
	
   

  	
  Title:
  Managing Director

  

 

 

	
   

  	
  BABSON
  MID-MARKET CLO 2007 LTD.- II

  
	
   

  	
  By:
  Babson Capital Management LLC as Collateral

  Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas Q. McDonnell

  
	
   

  	
  Name:
  Thomas Q. McDonnell

  
	
   

  	
  Title:
  Managing Director

  

 

 

	
   

  	
  Bank
  of America N.A.:

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Patrick Honey

  
	
   

  	
  Name:
  Patrick Honey

  
	
   

  	
  Title:
  Senior Vice President

  

 

 

	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK
  OF SCOTLAND PLC, NEW YORK

  BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Karen Weich

  
	
   

  	
  Name:
  Karen Weich

  
	
   

  	
  Title:
  Vice President

  

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY

  AMERICAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mary Kay Coyle

  
	
   

  	
  Name:
  Mary Kay Coyle

  
	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Keith Braun

  
	
   

  	
  Name:
  Keith Braun

  
	
   

  	
  Title:
  Managing Director

  

 

 

	
   

  	
  JPMorgan
  Chase Bank, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Marc E. Costantino

  
	
   

  	
  Name:
  Marc E. Costantino

  
	
   

  	
  Title:
  Executive Director

  

 

 

	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
  Wachovia
  Bank National Association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Reginald T. Dawson

  
	
   

  	
  Name:
  Reginald T. Dawson

  
	
   

  	
  Title:
  Managing Director

  

 

 

	
   

  	
  WELLS
  FARGO BANK N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ernie Pinder

  
	
   

  	
  Name: Ernie Pinder

  
	
   

  	
  Title: Vice President, Principal

  

 

 

	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY AMERICAS,

  
	
   

  	
  as
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Mary Kay Coyle

  
	
   

  	
   

  	
  Name:

  	
  Mary
  Kay Coyle

  
	
   

  	
   

  	
  Title:

  	
  Managing
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Keith Braun

  
	
   

  	
   

  	
  Name:
  

  	
  Keith
  Braun

  
	
   

  	
   

  	
  Title:

  	
  Managing
  Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}]]