Document:

Exhibit
10.42

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS WARRANT NOR THE
SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO
RULE 144 OR RULE 144A UNDER SAID ACT. 
NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.

SENESCO TECHNOLOGIES, INC.

WARRANT TO PURCHASE COMMON
STOCK

Warrant No.: 
[__]

Date of Issuance:
October __, 2006

Senesco Technologies,
Inc., a Delaware corporation (the “Company”),
hereby certifies that, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, _______________________, the
registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms
set forth below, to purchase from the Company, at any time or from time to time
on or after _________, 2006 (the “Issuance
Date”) and on or before 5:00 p.m. (New York time)  on _____________ 2011 (the “Expiration Date”), ________________ (____)
shares of Common Stock, $0.01 par value per share, of the Company (“Common Stock”) at the Exercise Price (as
defined below) then in effect. Upon surrender of this Warrant to Purchase
Common Stock (including any Warrants to Purchase Common Stock issued in
exchange, transfer or replacement hereof, the “Warrant”), the number of fully paid nonassessable shares of
Common Stock (the “Warrant Shares”)
shall be determined in accordance with Section 1 below.  Except as otherwise defined herein,
capitalized terms in this Warrant shall have the meanings set forth in Section
13.  This Warrant is one of a series
of warrants to purchase Common Stock (the “Warrants”)
issued by the Company in connection with a private placement of Common Stock,
by and among the Company and the investors (the “Buyers”) referred to therein (the “Securities Purchase Agreement”).

1.             EXERCISE OF WARRANT.

(a)           Mechanics of Exercise.  Subject to the terms and conditions hereof
(including, without limitation, the limitations set forth in Section 1(e)),
this Warrant may be exercised by the Holder on any day on or after the Issuance
Date, (the “Exercise Date”) in
whole 

 

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or in part, by
(i) delivery of a written notice, in the form attached hereto as Exhibit
A (the “Exercise Notice”), of
the Holder’s election to exercise this Warrant and (ii) (A) payment to the
Company of an amount equal to the applicable Exercise Price multiplied by the
number of Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price”) in cash or wire
transfer of immediately available funds or (B) by notifying the Company that
this Warrant is being exercised in a Cashless Exercise pursuant to and subject
to the conditions set forth in Section 1(c).  The Holder shall not be required to deliver
the original Warrant in order to effect an exercise hereunder.  Execution and delivery of the Exercise Notice
with respect to less than all of the Warrant Shares shall have the same effect
as cancellation of the original Warrant and issuance of a new Warrant
evidencing the right to purchase the remaining number of Warrant Shares.  On or before the first Business Day following
the date on which the Company has received each of the Exercise Notice and the
Aggregate Exercise Price  (or notice of a
Cashless Exercise) (the “Exercise Delivery
Documents”), the Company shall transmit by facsimile an
acknowledgment of confirmation of receipt of the Exercise Delivery Documents to
the Holder and the Company’s transfer agent (the “Transfer Agent”).  On or
before the third Business Day following the date on which the Company has
received all of the Exercise Delivery Documents (the “Share Delivery Date”), the Company shall
issue and dispatch by overnight courier to the address as specified in the
Exercise Notice, a certificate, registered in the Company’s share register in
the name of the Holder or its designee, for the number of shares of Common
Stock to which the Holder is entitled pursuant to such exercise.  Upon delivery of the Exercise Notice and
Aggregate Exercise Price referred to in clause (ii)(A) above or notification to
the Company of a Cashless Exercise referred to in Section 1(c), the Holder
shall be deemed for all corporate purposes to have become the holder of record
of the Warrant Shares with respect to which this Warrant has been exercised,
irrespective of the date of delivery of the certificates evidencing such
Warrant Shares.  If this Warrant is
submitted in connection with any exercise pursuant to this Section 1(a)
and the number of Warrant Shares represented by this Warrant submitted for
exercise is greater than the number of Warrant Shares being acquired upon an
exercise, then the Company shall as soon as practicable and in no event later
than three Business Days after any exercise and at its own expense, issue a new
Warrant (in accordance with Section 6(d)) representing the right to
purchase the number of Warrant Shares purchasable immediately prior to such
exercise under this Warrant, less the number of Warrant Shares with respect to
which this Warrant is exercised.  No
fractional shares of Common Stock are to be issued upon the exercise of this
Warrant, but rather the number of shares of Common Stock to be issued shall be
rounded up to the nearest whole number. 
The Company shall pay any and all taxes which may be payable with
respect to the issuance and delivery of Warrant Shares upon exercise of this
Warrant.

(b)           Exercise
Price.  For purposes of this Warrant,
“Exercise Price”
means $______, subject to adjustment as provided herein.

(c)           Cashless
Exercise.  Notwithstanding anything contained
herein to the contrary, the Holder may, in its sole discretion, exercise this
Warrant in whole or in part and, in lieu of making the cash payment otherwise
contemplated to be made to the Company upon such exercise in payment of the
Aggregate Exercise Price, elect instead to receive upon such 

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exercise the “Net Number” of shares of Common Stock determined
according to the following formula (a “Cashless Exercise”):

Net Number = (A x B) - (A x C)

B

For purposes of the foregoing formula:

A= the total number of shares with respect to which this Warrant is
then being exercised.

B= the Closing Sale Price of the shares of Common Stock (as reported by
Bloomberg) on the date immediately preceding the date of the Exercise Notice.

C= the Exercise
Price then in effect for the applicable Warrant Shares at the time of such
exercise.

(d)           Disputes.  In the case of a dispute as to the
determination of the Exercise Price or the arithmetic calculation of the
Warrant Shares, the Company shall promptly issue to the Holder the number of
Warrant Shares that are not disputed and resolve such dispute in accordance
with Section 12.

(e)           Limitations
on Exercises; Beneficial Ownership. 
The Company shall not effect the exercise of this Warrant, and the
Holder shall not have the right to exercise this Warrant, to the extent that
after giving effect to such exercise, such Person (together with such Person’s
affiliates) would beneficially own in excess of 4.99% (the “Maximum Percentage”) of the shares of Common Stock
outstanding immediately after giving effect to such exercise.  For purposes of the foregoing sentence, the
aggregate number of shares of Common Stock beneficially owned by such Person
and its affiliates shall include the number of shares of Common Stock issuable
upon exercise of this Warrant with respect to which the determination of such
sentence is being made, but shall exclude shares of Common Stock which would be
issuable upon (i) exercise of the remaining, unexercised portion of this
Warrant beneficially owned by such Person and its affiliates and (ii) exercise
or conversion of the unexercised or unconverted portion of any other securities
of the Company beneficially owned by such Person and its affiliates (including,
without limitation, any convertible notes or convertible preferred stock or warrants)
subject to a limitation on conversion or exercise analogous to the limitation
contained herein.  Except as set forth in
the preceding sentence, for purposes of this paragraph, beneficial ownership
shall be calculated in accordance with Section 13(d) of the Securities Exchange
Act of 1934, as amended.  For purposes of
this Warrant, in determining the number of outstanding shares of Common Stock,
the Holder may rely on the number of outstanding shares of Common Stock as
reflected in (1) the Company’s most recent Form 10-KSB, Form 10-QSB, Current
Report on Form 8-K or other public filing with the Securities and Exchange
Commission, as the case may be, (2) a more recent public 

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announcement by the Company or (3) any other notice by the Company or
the Transfer Agent setting forth the number of shares of Common Stock
outstanding.  For any reason at any time,
upon the written or oral request of the Holder, the Company shall within two
Business Days confirm orally and in writing to the Holder the number of shares
of Common Stock then outstanding.  In any
case, the number of outstanding shares of Common Stock shall be determined
after giving effect to the conversion or exercise of securities of the Company,
including the Securities issued under the Securities Purchase Agreement and the
Warrants, by the Holder and its affiliates since the date as of which such
number of outstanding shares of Common Stock was reported.  By written notice to the Company, the Holder
may from time to time increase or decrease the Maximum Percentage to any other
percentage not in excess of 9.99% specified in such notice; provided that (i)
any such increase will not be effective until the sixty-first (61st) day after such notice is
delivered to the Company, and (ii) any such increase or decrease will apply
only to the Holder and not to any other holder of Warrants.

(f)            Insufficient
Authorized Shares.  If at any time
while any of the Warrants remain outstanding the Company does not have a
sufficient number of authorized and unreserved shares of Common Stock to
satisfy its obligation to reserve for issuance upon exercise of the Warrants at
least a number of shares of Common Stock equal to 110% (the “Required Reserve Amount”) of the number of
shares of Common Stock as shall from time to time be necessary to effect the
exercise of all of the Warrants then outstanding  (an “Authorized
Share Failure”), then the Company shall immediately take all action
necessary to increase the Company’s authorized shares of Common Stock to an
amount sufficient to allow the Company to reserve the Required Reserve Amount
for the Warrants then outstanding. 
Without limiting the generality of the foregoing sentence, as soon as
practicable after the date of the occurrence of an Authorized Share Failure,
but in no event later than sixty (60) days after the occurrence of such
Authorized Share Failure, the Company shall hold a meeting of its stockholders
for the approval of an increase in the number of authorized shares of Common
Stock.  In connection with such meeting,
the Company shall provide each stockholder with a proxy statement and shall use
its best efforts to solicit its stockholders’ approval of such increase in
authorized shares of Common Stock and to cause its board of directors to
recommend to the stockholders that they approve such proposal.

2.             ADJUSTMENT OF EXERCISE PRICE AND
NUMBER OF WARRANT SHARES.  The
Exercise Price and the number of Warrant Shares shall be adjusted from time to
time as follows:

(a)           Adjustment
for Stock Splits and Combinations. 
If the Company shall at any time or from time to time after Issuance
Date (or, if this Warrant was issued upon partial exercise of, or in
replacement of, another warrant of like tenor, then the date on which such
original warrant was first issued) effect a subdivision of the outstanding
Common Stock, the Exercise Price then in effect immediately before that
subdivision shall be proportionately decreased. 
If the Company shall at any time or from time to time after the Issuance
Date combine the outstanding shares of Common Stock, the Exercise Price then in
effect immediately before the combination shall be proportionately
increased.  Any adjustment under this
paragraph 

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shall become effective at the close of business on the date the
subdivision or combination becomes effective.

(b)           Adjustment
for Certain Dividends and Distributions. 
In the event the Company at any time, or from time to time after the
Issuance Date shall make or issue, or fix a record date for the determination
of holders of Common Stock entitled to receive, a dividend or other
distribution payable in additional shares of Common Stock, then and in each
such event the Exercise Price then in effect immediately before such event
shall be decreased as of the time of such issuance or, in the event such a
record date shall have been fixed, as of the close of business on such record
date, by multiplying the Exercise Price then in effect by a fraction:

(1)           the
numerator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of
business on such record date, and

(2)           the
denominator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of
business on such record date plus the number of shares of Common Stock issuable
in payment of such dividend or distribution;

provided,
however, that if such record date shall have been fixed and such
dividend is not fully paid or if such distribution is not fully made on the
date fixed therefor, the Exercise Price shall be recomputed accordingly as of
the close of business on such record date and thereafter the Exercise Price
shall be adjusted pursuant to this paragraph as of the time of actual payment
of such dividends or distributions.

(c)           Adjustment
in Number of Warrant Shares.  When
any adjustment is required to be made in the Exercise Price pursuant to
subsections 2(a) or 2(b), the number of Warrant Shares purchasable upon
the exercise of this Warrant shall be changed to the number determined by
dividing (i) an amount equal to the number of shares issuable upon the
exercise of this Warrant immediately prior to such adjustment, multiplied by
the Exercise Price in effect immediately prior to such adjustment, by
(ii) the Exercise Price in effect immediately after such adjustment.

(d)           Adjustments
for Other Dividends and Distributions. 
In the event the Company at any time or from time to time after the
Issuance Date shall make or issue, or fix a record date for the determination
of holders of Common Stock entitled to receive, a dividend or other
distribution payable in securities of the Company (other than shares of Common
Stock) or in cash or other property (other than regular cash dividends paid out
of earnings or earned surplus, determined in accordance with generally accepted
accounting principles), then and in each such event provision shall be made so
that the Holder shall receive upon exercise hereof, in addition to the number
of shares of Common Stock issuable hereunder, the kind and amount of securities
of the Company, cash or other property which the Holder would have been
entitled to receive had this Warrant been exercised on the date of such event
and had the Holder thereafter, during the period from the date of such event to
and including the Exercise Date, retained any 

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such securities receivable during such period, giving application to
all adjustments called for during such period under this Section 2 with
respect to the rights of the Holder.

(e)           Adjustment
for Reorganization.  If there shall
occur any reorganization, recapitalization, reclassification, consolidation or
merger involving the Company in which the Common Stock is converted into or
exchanged for securities, cash or other property (other than a transaction
covered by subsections 2(a), 2(b) or 2(d)) (collectively, a “Reorganization”), then, following such Reorganization, the
Holder shall receive upon exercise hereof the kind and amount of securities,
cash or other property which the Holder would have been entitled to receive
pursuant to such Reorganization if such exercise had taken place immediately
prior to such Reorganization. 
Notwithstanding the foregoing sentence, if (x) there shall occur
any Reorganization in which the Common Stock is converted into or exchanged for
anything other than solely equity securities, and (y) the common stock of
the acquiring or surviving company is publicly traded, then, as part of such
Reorganization, (i) the Holder shall have the right thereafter to receive
upon the exercise hereof such number of shares of common stock of the acquiring
or surviving company as is determined by multiplying (A) the number of
shares of Common Stock subject to this Warrant immediately prior to such
Reorganization by (B) a fraction, the numerator of which is the Fair
Market Value per share of Common Stock as of the effective date of such
Reorganization, as determined below, and the denominator of which is the fair
market value per share of common stock of the acquiring or surviving company as
of the effective date of such transaction, as determined in good faith by the
Board (using the principles set forth below to the extent applicable), and
(ii) the exercise price per share of common stock of the acquiring or
surviving company shall be the Exercise Price divided by the fraction referred
to in clause (B) above.  In any such
case, appropriate adjustment (as determined in good faith by the Board) shall
be made in the application of the provisions set forth herein with respect to
the rights and interests thereafter of the Holder, to the end that the
provisions set forth in this Section 2 (including provisions with
respect to changes in and other adjustments of the Exercise Price) shall
thereafter be applicable, as nearly as reasonably may be, in relation to any
securities, cash or other property thereafter deliverable upon the exercise of
this Warrant.

The Fair Market Value per share of Common Stock shall be determined as
follows:

(1)           If
the Common Stock is listed on a national securities exchange, The NASDAQ Stock
Market, Inc. (“Nasdaq”) or
another nationally recognized trading system as of the Exercise Date, the Fair
Market Value per share of Common Stock shall be deemed to be the reported
closing price per share of Common Stock thereon on the trading day immediately
preceding the Exercise Date (provided that if no such price is reported
on such day, the Fair Market Value per share of Common Stock shall be
determined pursuant to clause (2) below).

(2)           If
the Common Stock is not listed on a national securities exchange, Nasdaq or
another nationally recognized trading system as of the Exercise Date, the Fair
Market Value per share of Common Stock shall be deemed to be the amount most
recently determined by the Board of Directors of the Company (the “Board”) to represent the fair market 

 6
 

 

value per share of the Common Stock (including without limitation a
determination for purposes of granting Common Stock options or issuing Common
Stock under any plan, agreement or arrangement with employees of the Company);
and, upon request of the Holder, the Board (or a representative thereof) shall,
as promptly as reasonably practicable but in any event not later than ten (10)
days after such request, notify the Holder of the Fair Market Value per share
of Common Stock and furnish the Holder with reasonable documentation of the
Board’s determination of such Fair Market Value.  Notwithstanding the foregoing, if the Board
has not made such a determination within the three-month period prior to the Exercise
Date, then the Board shall make, and shall provide or cause to be provided to
the Holder notice of, a determination of the Fair Market Value per share of the
Common Stock within fifteen (15) days of a request by the Holder that it do so.

(f)            Certificate
as to Adjustments.  Upon the
occurrence of each adjustment or readjustment of the Exercise Price pursuant to
this Section 2, the Company at its expense shall, as promptly as
reasonably practicable but in any event not later than 10 days thereafter, compute
such adjustment or readjustment in accordance with the terms hereof and furnish
to the Holder a certificate setting forth such adjustment or readjustment
(including the kind and amount of securities, cash or other property for which
this Warrant shall be exercisable and the Exercise Price) and showing in detail
the facts upon which such adjustment or readjustment is based.  The Company shall, as promptly as reasonably
practicable after the written request at any time of the Holder (but in any
event not later than ten (10) days thereafter), furnish or cause to be
furnished to the Holder a certificate setting forth (i) the Exercise Price
then in effect and (ii) the number of shares of Common Stock and the
amount, if any, of other securities, cash or property which then would be
received upon the exercise of this Warrant.

3.             NONCIRCUMVENTION. 
The Company hereby covenants and agrees that the Company will not, by
amendment of its Certificate of Incorporation, Bylaws or through any
reorganization, transfer of assets, consolidation, merger, scheme of
arrangement, dissolution, issue or sale of securities, or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, and will at all times in good faith carry out all the
provisions of this Warrant and take all action as may be required to protect
the rights of the Holder.  Without
limiting the generality of the foregoing, the Company (i) shall not
increase the par value of any shares of Common Stock receivable upon the
exercise of this Warrant above the Exercise Price then in effect,
(ii) shall take all such actions as may be necessary or appropriate in
order that the Company may validly and legally issue fully paid and
nonassessable shares of Common Stock upon the exercise of this Warrant, and
(iii) shall, so long as any of the Warrants are outstanding, take all action
necessary to reserve and keep available out of its authorized and unissued
shares of Common Stock, solely for the purpose of effecting the exercise of the
Warrants, 110% of the number of shares of Common Stock as shall from time to
time be necessary to effect the exercise of the Warrants then outstanding
(without regard to any limitations on exercise).

4.             WARRANT HOLDER NOT DEEMED A STOCKHOLDER.  Except as otherwise specifically provided
herein, the Holder, solely in such Person’s capacity as a holder of 

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this Warrant, shall not be entitled to vote
or receive dividends or be deemed the holder of share capital of the Company
for any purpose, nor shall anything contained in this Warrant be construed to
confer upon the Holder, solely in such Person’s capacity as the Holder of this
Warrant, any of the rights of a stockholder of the Company or any right to
vote, give or withhold consent to any corporate action (whether any
reorganization, issue of stock, reclassification of stock, consolidation,
merger, conveyance or otherwise), receive notice of meetings, receive dividends
or subscription rights, or otherwise, prior to the issuance to the Holder of
the Warrant Shares which such Person is then entitled to receive upon the due
exercise of this Warrant.  In addition,
nothing contained in this Warrant shall be construed as imposing any
liabilities on the Holder to purchase any securities (upon exercise of this
Warrant or otherwise) or as a stockholder of the Company, whether such
liabilities are asserted by the Company or by creditors of the Company.  Notwithstanding this Section 4, the
Company shall provide the Holder with copies of the same notices and other
information given to the stockholders of the Company generally,
contemporaneously with the giving thereof to the stockholders.

5.             TRANSFER.

(a)           This
Warrant and the Warrant Shares shall not be sold or transferred unless either
(i) they first shall have been registered under the Securities Act of
1933, as amended (the “Act”),
or (ii) such sale or transfer shall be exempt from the registration
requirements of the Act and the Company shall have been furnished with an
opinion of legal counsel, reasonably satisfactory to the Company, to the effect
that such sale or transfer is exempt from the registration requirements of the
Act.  Notwithstanding the foregoing, no
registration or opinion of counsel shall be required for (i) a transfer by
a Holder which is an entity to a wholly owned subsidiary of such entity, a
transfer by a Holder which is a partnership to a partner of such partnership or
a retired partner of such partnership or to the estate of any such partner or
retired partner, or a transfer by a Holder which is a limited liability company
to a member of such limited liability company or a retired member or to the
estate of any such member or retired member, provided that the
transferee in each case agrees in writing to be subject to the terms of this Section 4,
or (ii) a transfer made in accordance with Rule 144 under the Act.

(b)           Each
certificate representing Warrant Shares shall bear a legend substantially in
the following form:

“The securities
represented hereby have not been registered under the Securities Act of 1933,
as amended, or any state securities laws and neither the securities nor any
interest therein may not be offered, sold, transferred, pledged or otherwise
disposed of except pursuant to an effective registration under such act or an
exemption from registration, which, in the opinion of counsel reasonably
satisfactory to counsel for this corporation, is available.”

The foregoing legend shall be removed from the
certificates representing any Warrant Shares, at the request of the holder thereof,
at such time as they become eligible for resale 

 8
 

 

pursuant to
Rule 144(k) under the Act or at such time as the Warrant Shares are sold
or transferred in accordance with the requirements of a registration statement
of the Company on Form S-3, or such other form as may then be in effect.

(c)           The
Company will maintain a register containing the name and address of the Holder
of this Warrant.  The Holder may change
its address as shown on the warrant register by written notice to the Company
requesting such change.

(d)           Subject
to the provisions of Section 4 hereof, this Warrant and all rights
hereunder are transferable, in whole or in part, upon surrender of this Warrant
with a properly executed assignment (in the form of Exhibit II
hereto) at the principal office of the Company (or, if another office or agency
has been designated by the Company for such purpose, then at such other office
or agency).

6.             REISSUANCE OF WARRANTS.

(a)           Transfer
of Warrant.  If this Warrant is to be
transferred, the Holder shall surrender this Warrant to the Company, whereupon
the Company will forthwith issue and deliver upon the order of the Holder a new
Warrant (in accordance with Section 6(d)), registered as the Holder may
request, representing the right to purchase the number of Warrant Shares being
transferred by the Holder and, if less then the total number of Warrant Shares
then underlying this Warrant is being transferred, a new Warrant (in accordance
with Section 6(d)) to the Holder representing the right to purchase the
number of Warrant Shares not being transferred. 
Applicable transfer taxes, if any, shall be paid by the Holder.

(b)           Lost,
Stolen or Mutilated Warrant.  Upon
receipt by the Company of evidence reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of this Warrant, and, in the case of
loss, theft or destruction, of any indemnification undertaking by the Holder to
the Company in customary form and, in the case of mutilation, upon surrender
and cancellation of this Warrant, the Company shall execute and deliver to the
Holder a new Warrant (in accordance with Section 6(d)) representing the
right to purchase the Warrant Shares then underlying this Warrant.

(c)           Exchangeable
for Multiple Warrants.  This Warrant
is exchangeable, upon the surrender hereof by the Holder at the principal
office of the Company, for a new Warrant or Warrants (in accordance with Section
6(d)) representing in the aggregate the right to purchase the number of
Warrant Shares then underlying this Warrant, and each such new Warrant will
represent the right to purchase such portion of such Warrant Shares as is
designated by the Holder at the time of such surrender; provided, however, that
no Warrants for fractional shares of Common Stock shall be given.

(d)           Issuance
of New Warrants.  Whenever the
Company is required to issue a new Warrant pursuant to the terms of this
Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii)
shall represent, as indicated on the face of such new Warrant, the 

 

 9
 

 

right to purchase the Warrant Shares then underlying this Warrant (or
in the case of a new Warrant being issued pursuant to Section 6(a) or Section
6(c), the Warrant Shares designated by the Holder which, when added to the
number of shares of Common Stock underlying the other new Warrants issued in
connection with such issuance, does not exceed the number of Warrant Shares
then underlying this Warrant), (iii) shall have an issuance date, as indicated
on the face of such new Warrant which is the same as the Issuance Date, and
(iv) shall have the same rights and conditions as this Warrant.

7.             NOTICES.  Whenever notice is required to be given under
this Warrant, unless otherwise provided herein, such notice and other
communication from the Company to the Holder in connection herewith shall be
mailed by certified or registered mail, postage prepaid, or sent via a
reputable nationwide overnight courier service guaranteeing next business day
delivery, to the address last furnished to the Company in writing by the
Holder.  The Company shall provide the
Holder with prompt written notice of all actions taken pursuant to this
Warrant, including in reasonable detail a description of such action and the
reason therefore.  Without limiting the
generality of the foregoing, the Company will give written notice to the Holder
(i) immediately upon any adjustment of the Exercise Price, setting forth in
reasonable detail, and certifying, the calculation of such adjustment and (ii)
at least fifteen days prior to the date on which the Company closes its books
or takes a record (A) with respect to any dividend or distribution upon the
shares of Common Stock, (B) with respect to any grants, issuances or sales of
any Options, Convertible Securities or rights to purchase stock, warrants,
securities or other property to holders of shares of Common Stock or (C) for
determining rights to vote with respect to any Fundamental Transaction,
dissolution or liquidation, provided in each case that such information shall
be made known to the public prior to or in conjunction with such notice being
provided to the Holder.

8.             NOTICES OF RECORD DATE, ETC.  In the event:

(a)           the
Company shall take a record of the holders of its Common Stock (or other stock
or securities at the time deliverable upon the exercise of this Warrant) for
the purpose of entitling or enabling them to receive any dividend or other
distribution, or to receive any right to subscribe for or purchase any shares
of stock of any class or any other securities, or to receive any other right;
or

(b)           of
any capital reorganization of the Company, any reclassification of the Common
Stock of the Company, any consolidation or merger of the Company with or into
another corporation, or any transfer of all or substantially all of the assets
of the Company; or

(c)           of
the voluntary or involuntary dissolution, liquidation or winding-up of the
Company, then, and in each such case, the Company will send or cause to be sent
to the Holder a notice specifying, as the case may be, (i) the record date for
such dividend, distribution or right, and the amount and character of such
dividend, distribution or right, or (ii) the effective date on which such
reorganization, reclassification, consolidation, merger, transfer, dissolution,
liquidation or winding-up is to take place, and the time, if any is to be
fixed, as of which the 

 10
 

 

holders of record of Common Stock (or such other stock or securities at
the time deliverable upon the exercise of this Warrant) shall be entitled to
exchange their shares of Common Stock (or such other stock or securities) for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation or
winding-up.  Such notice shall be sent at
least ten (10) days prior to the record date or effective date for the event
specified in such notice.

9.             AMENDMENT AND WAIVER.  Any term of this Warrant may be amended or
waived (either generally or in a particular instance and either retroactively
or prospectively) with the written consent of the Company and the holders of
Company Warrants representing at least two-thirds of the number of shares of
Common Stock then subject to outstanding Company Warrants. Notwithstanding the
foregoing, (a) this Warrant may be amended and the observance of any term
hereunder may be waived without the written consent of the Holder only in a
manner which applies to all Company Warrants in the same fashion and (b) the
number of Warrant Shares subject to this Warrant and the Exercise Price of this
Warrant may not be amended, and the right to exercise this Warrant may not be
waived, without the written consent of the Holder (it being agreed that an
amendment to or waiver under any of the provisions of Section 2 of this
Warrant shall not be considered an amendment of the number of Warrant Shares or
the Exercise Price).  The Company shall
give prompt written notice to the Holder of any amendment hereof or waiver
hereunder that was effected without the Holder’s written consent.  No waivers of any term, condition or provision
of this Warrant, in any one or more instances, shall be deemed to be, or
construed as, a further or continuing waiver of any such term, condition or
provision.

10.           GOVERNING
LAW.  This Agreement shall be
governed by, and construed in accordance with, the internal laws of the State
of New York without regard to the choice of law principles thereof.

11.           CONSTRUCTION;
HEADINGS.  This Warrant shall be
deemed to be jointly drafted by the Company and all the Holders and shall not
be construed against any person as the drafter hereof.  The headings of this Warrant are for
convenience of reference and shall not form part of, or affect the
interpretation of, this Warrant.

12.           DISPUTE
RESOLUTION.  In the case of a dispute
as to the determination of the Exercise Price or the arithmetic calculation of
the Warrant Shares, the Company shall submit the disputed determinations or
arithmetic calculations via facsimile within two Business Days of receipt of
the Exercise Notice giving rise to such dispute, as the case may be, to the
Holder.  If the Holder and the Company
are unable to agree upon such determination or calculation of the Exercise
Price or the Warrant Shares within three Business Days of such disputed
determination or arithmetic calculation being submitted to the Holder, then the
Company shall, within two Business Days submit via facsimile (a) the disputed
determination of the Exercise Price to an independent, reputable investment
bank selected by the Company and approved by the Holder or (b) the disputed arithmetic
calculation of the Warrant Shares to the Company’s independent, outside
accountant.  The Company shall cause at
its expense the 

 11
 

 

investment bank or
the accountant, as the case may be, to perform the determinations or
calculations and notify the Company and the Holder of the results no later than
ten (10) Business Days from the time it receives the disputed determinations or
calculations.  Such investment bank’s or
accountant’s determination or calculation, as the case may be, shall be binding
upon all parties absent demonstrable error.

13.           REGISTRATION
RIGHTS.  The Holder of this Warrant
is entitled to have the Warrant Shares issuable upon exercise of this Warrant
registered for resale under the Act, pursuant to and in accordance with the
Registration Rights Agreement entered into among the Company and the investors
pursuant to the terms of the Securities Purchase Agreement.

14.           CERTAIN
DEFINITIONS.  For purposes of this
Warrant, the following terms shall have the following meanings:

(a)           “Business Day” means any day other than Saturday, Sunday or
other day on which commercial banks in the City of New York are authorized or
required by law to remain closed.

(b)           “Closing Bid Price” and “Closing Sale Price”
means, for any security as of any date, the last closing bid price and last
closing trade price, respectively, for such security on the Principal Market,
as reported by Bloomberg, or, if the Principal Market begins to operate on an
extended hours basis and does not designate the closing bid price or the
closing trade price, as the case may be, then the last bid price or last trade
price, respectively, of such security prior to 4:00 p.m., New York Time, as
reported by Bloomberg, or, if the Principal Market is not the principal
securities exchange or trading market for such security, the last closing bid
price or last trade price, respectively, of such security on the principal
securities exchange or trading market where such security is listed or traded
as reported by Bloomberg, or if the foregoing do not apply, the last closing
bid price or last trade price, respectively, of such security in the
over-the-counter market on the electronic bulletin board for such security as
reported by Bloomberg, or, if no closing bid price or last trade price,
respectively, is reported for such security by Bloomberg, the average of the
bid prices, or the ask prices, respectively, of any market makers for such
security as reported in the “pink sheets” by Pink Sheets LLC (formerly the
National Quotation Bureau, Inc.).  If the
Closing Bid Price or the Closing Sale Price cannot be calculated for a security
on a particular date on any of the foregoing bases, the Closing Bid Price or
the Closing Sale Price, as the case may be, of such security on such date shall
be the fair market value as mutually determined by the Company and the
Holder.  If the Company and the Holder
are unable to agree upon the fair market value of such security, then such
dispute shall be resolved pursuant to Section 10.  All such determinations to be appropriately
adjusted for any stock dividend, stock split, stock combination or other
similar transaction during the applicable calculation period.

(c)           “Common Stock” means (i) the Company’s shares of Common
Stock, par value $0.01 per share, and (ii) any share capital into which
such Common Stock shall have been changed or any share capital resulting from a
reclassification of such Common Stock.

 12
 

 

 

(d)           “Convertible Securities” means any stock or securities (other
than Options) directly or indirectly convertible into or exercisable or
exchangeable for shares of Common Stock.

(e)           “Eligible Market” means the Principal Market, the American
Stock Exchange, The New York Stock Exchange, Inc., the Nasdaq National Market
or The Nasdaq SmallCap Market.

(f)            “Expiration Date” means the date sixty (60) months after the
Issuance Date or, if such date falls on a day other than a Business Day or on
which trading does not take place on the Principal Market (a “Holiday”), the next date that is not a Holiday).

(g)           “Person” means an individual, a limited liability company, a
partnership, a joint venture, a corporation, a trust, an unincorporated
organization, any other entity and a government or any department or agency
thereof.

15.           COUNTERPARTS; FACSIMILE. This Warrant
may be executed in counterparts and by facsimile signature.

[Signature Page Follows]

 13
 

 

 

IN WITNESS WHEREOF, the Company has caused
this Warrant to Purchase Common Stock to be duly executed as of the Issuance
Date set out above.

	
  

  	
  SENESCO TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 14

 

EXHIBIT A

EXERCISE NOTICE

TO BE EXECUTED BY
THE HOLDER TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

SENESCO TECHNOLOGIES, INC.

The undersigned holder hereby exercises the right to
purchase _________________ of the shares of Common Stock (“Warrant Shares”) of Senesco Technologies,
Inc., a Delaware corporation (the “Company”),
evidenced by the attached Warrant to Purchase Common Stock (the “Warrant”). 
Capitalized terms used herein and not otherwise defined shall have the
respective meanings set forth in the Warrant.

1.  Form of
Exercise Price.  The Holder intends
that payment of the Exercise Price shall be made as:

	
  

  	
  __________

  	
  a “Cash Exercise” with respect to _________________ Warrant
  Shares; and/or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  __________

  	
  a “Cashless Exercise” with respect to _________________ Warrant
  Shares.

  

 

2.  Payment
of Exercise Price.  In the event that
the holder has elected a Cash Exercise with respect to some or all of the
Warrant Shares to be issued pursuant hereto, the holder shall pay the Aggregate
Exercise Price in the sum of $___________________ to the Company in accordance
with the terms of the Warrant.

3.  Delivery
of Warrant Shares.  The Company shall
deliver to the holder __________ Warrant Shares in accordance with the terms of
the Warrant.

4.  Acknowledgement.  The undersigned holder hereby represents and
warrants that after giving effect to the exercise of the Warrant contemplated
by this Exercise Notice, such holder will not be in violation of the beneficial
ownership limits specified in Section 1(f) of the Warrant, as increased or
decreased pursuant to terms contained therein.

	
  Date:

  	
   

  	
   

  	
   

  	
   , 

  	
   

  	
   

  
	
   

  
	
   

  	
   

  
	
  Name of Holder

  	
   

  

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

 

ACKNOWLEDGMENT

The
Company hereby acknowledges this Exercise Notice and hereby directs [Insert Name of Transfer Agent] to issue
the above indicated number of shares of Common Stock in accordance with the
Transfer Agent Instructions dated _______________ from the Company and
acknowledged and agreed to by [Insert Name of
Transfer Agent].

	
  

  	
  SENESCO TECHNOLOGIES, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:Exhibit 10.1

 

 

 

CREDIT AGREEMENT

dated as of October 6, 2006

among

INSIGHT MIDWEST HOLDINGS, LLC, 

as Borrower,

The Lenders Party Hereto,

J.P.  MORGAN
SECURITIES INC.,

and

BANK OF AMERICA, N.A.,

as Co-Syndication Agents

MORGAN STANLEY SENIOR FUNDING, INC.,

GENERAL ELECTRIC CAPITAL CORPORATION,

WACHOVIA BANK, NATIONAL ASSOCIATION,

and

THE ROYAL BANK OF SCOTLAND PLC

as Co-Documentation Agents

and

THE BANK OF NEW YORK,

as Administrative Agent 

 

J.P. MORGAN SECURITIES INC.,

and

BANC OF AMERICA SECURITIES LLC,

as Joint Lead Arrangers and Joint Book Runners

 

 

 

Cahill Gordon & Reindel LLP

80 Pine Street

New York, New York  10005

 

TABLE OF CONTENTS

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE 1

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFINITIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
   

  	
  Defined Terms

  	
   

  	
  1

  
	
  Section 1.2.

  	
   

  	
  Classification of Loans and Borrowings

  	
   

  	
  32

  
	
  Section 1.3.

  	
   

  	
  Terms Generally

  	
   

  	
  32

  
	
  Section 1.4.

  	
   

  	
  Accounting Terms; GAAP

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE CREDITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
   

  	
  Commitments and Loans

  	
   

  	
  33

  
	
  Section 2.2.

  	
   

  	
  Loans and Borrowings

  	
   

  	
  35

  
	
  Section 2.3.

  	
   

  	
  Requests for Borrowings

  	
   

  	
  36

  
	
  Section 2.4.

  	
   

  	
  Funding of Borrowings

  	
   

  	
  36

  
	
  Section 2.5.

  	
   

  	
  Termination, Reduction and Increase of Commitments

  	
   

  	
  37

  
	
  Section 2.6.

  	
   

  	
  Repayment of Loans

  	
   

  	
  39

  
	
  Section 2.7.

  	
   

  	
  Prepayment of Loans

  	
   

  	
  40

  
	
  Section 2.8.

  	
   

  	
  Evidence of Debt

  	
   

  	
  41

  
	
  Section 2.9.

  	
   

  	
  Letters of Credit

  	
   

  	
  42

  
	
  Section 2.10.

  	
   

  	
  Swingline Loans

  	
   

  	
  46

  
	
  Section 2.11.

  	
   

  	
  Payments Generally; Pro Rata Treatment; Sharing of
  Setoffs

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INTEREST, FEES,
  YIELD PROTECTION, ETC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
   

  	
  Interest

  	
   

  	
  49

  
	
  Section 3.2.

  	
   

  	
  Interest Elections

  	
   

  	
  50

  
	
  Section 3.3.

  	
   

  	
  Fees

  	
   

  	
  51

  
	
  Section 3.4.

  	
   

  	
  Alternate Rate of Interest

  	
   

  	
  52

  
	
  Section 3.5.

  	
   

  	
  Increased Costs; Illegality

  	
   

  	
  52

  
	
  Section 3.6.

  	
   

  	
  Break Funding Payments

  	
   

  	
  54

  
	
  Section 3.7.

  	
   

  	
  Taxes

  	
   

  	
  55

  
	
  Section 3.8.

  	
   

  	
  Mitigation Obligations

  	
   

  	
  56

  
	
  Section 3.9.

  	
   

  	
  Replacement of Lenders

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
   

  	
  Organization; Powers

  	
   

  	
  57

  
	
  Section 4.2.

  	
   

  	
  Authorization; Enforceability

  	
   

  	
  57

  

 

 -i-
 

 

 

	
  Section 4.3.

  	
   

  	
  Governmental Approvals; No Conflicts

  	
   

  	
  57

  
	
  Section 4.4.

  	
   

  	
  Financial Condition

  	
   

  	
  58

  
	
  Section 4.5.

  	
   

  	
  Properties

  	
   

  	
  59

  
	
  Section 4.6.

  	
   

  	
  Litigation and Environmental Matters

  	
   

  	
  59

  
	
  Section 4.7.

  	
   

  	
  Compliance with Laws and Agreements

  	
   

  	
  59

  
	
  Section 4.8.

  	
   

  	
  Investment Company Status

  	
   

  	
  59

  
	
  Section 4.9.

  	
   

  	
  Taxes

  	
   

  	
  60

  
	
  Section 4.10.

  	
   

  	
  ERISA

  	
   

  	
  60

  
	
  Section 4.11.

  	
   

  	
  Disclosure

  	
   

  	
  60

  
	
  Section 4.12.

  	
   

  	
  Subsidiaries

  	
   

  	
  60

  
	
  Section 4.13.

  	
   

  	
  Insurance

  	
   

  	
  60

  
	
  Section 4.14.

  	
   

  	
  Labor Matters

  	
   

  	
  61

  
	
  Section 4.15.

  	
   

  	
  Solvency

  	
   

  	
  61

  
	
  Section 4.16.

  	
   

  	
  Security Documents

  	
   

  	
  61

  
	
  Section 4.17.

  	
   

  	
  Federal Reserve Regulations

  	
   

  	
  61

  
	
  Section 4.18.

  	
   

  	
  Use of Proceeds

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CONDITIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
   

  	
  Conditions to Initial Extension of Credit

  	
   

  	
  62

  
	
  Section 5.2.

  	
   

  	
  Conditions to Delayed Draws

  	
   

  	
  64

  
	
  Section 5.3.

  	
   

  	
  Conditions to Future Credit Events

  	
   

  	
  64

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AFFIRMATIVE
  COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
   

  	
  Financial Statements and Other Information

  	
   

  	
  64

  
	
  Section 6.2.

  	
   

  	
  Notices of Material Events

  	
   

  	
  66

  
	
  Section 6.3.

  	
   

  	
  Existence; Conduct of Business

  	
   

  	
  67

  
	
  Section 6.4.

  	
   

  	
  Payment and Performance of Obligations

  	
   

  	
  67

  
	
  Section 6.5.

  	
   

  	
  Maintenance of Properties

  	
   

  	
  67

  
	
  Section 6.6.

  	
   

  	
  Books and Records; Inspection Rights

  	
   

  	
  67

  
	
  Section 6.7.

  	
   

  	
  Compliance with Laws

  	
   

  	
  67

  
	
  Section 6.8.

  	
   

  	
  Insurance

  	
   

  	
  68

  
	
  Section 6.9.

  	
   

  	
  Casualty and Condemnation

  	
   

  	
  68

  
	
  Section 6.10.

  	
   

  	
  Additional Subsidiaries

  	
   

  	
  68

  
	
  Section 6.11.

  	
   

  	
  Further Assurances

  	
   

  	
  69

  
	
  Section 6.12.

  	
   

  	
  Environmental Compliance

  	
   

  	
  69

  
	
  Section 6.13.

  	
   

  	
  Use of Proceeds of Delayed Draw Loans

  	
   

  	
  69

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NEGATIVE
  COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
   

  	
  Indebtedness; Equity Interests

  	
   

  	
  70

  
	
  Section 7.2.

  	
   

  	
  Liens

  	
   

  	
  72

  

 

 -ii-
 

 

 

	
  Section 7.3.

  	
   

  	
  Fundamental Changes

  	
   

  	
  73

  
	
  Section 7.4.

  	
   

  	
  Investments

  	
   

  	
  74

  
	
  Section 7.5.

  	
   

  	
  Asset Sales

  	
   

  	
  76

  
	
  Section 7.6.

  	
   

  	
  Sale and Lease-Back Transactions

  	
   

  	
  79

  
	
  Section 7.7.

  	
   

  	
  Hedging Agreements

  	
   

  	
  79

  
	
  Section 7.8.

  	
   

  	
  Restricted Payments

  	
   

  	
  79

  
	
  Section 7.9.

  	
   

  	
  Transactions with Affiliates

  	
   

  	
  82

  
	
  Section 7.10.

  	
   

  	
  Restrictive Agreements

  	
   

  	
  82

  
	
  Section 7.11.

  	
   

  	
  Amendment of Material Documents

  	
   

  	
  83

  
	
  Section 7.12.

  	
   

  	
  Interest Coverage Ratio

  	
   

  	
  84

  
	
  Section 7.13.

  	
   

  	
  Leverage Ratio

  	
   

  	
  84

  
	
  Section 7.14.

  	
   

  	
  Exit Event

  	
   

  	
  84

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EVENTS OF
  DEFAULT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE
  ADMINISTRATIVE AGENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1.

  	
   

  	
  Notices

  	
   

  	
  92

  
	
  Section 10.2.

  	
   

  	
  Waivers; Amendments

  	
   

  	
  93

  
	
  Section 10.3.

  	
   

  	
  Expenses; Indemnity; Damage Waiver

  	
   

  	
  95

  
	
  Section 10.4.

  	
   

  	
  Successors and Assigns

  	
   

  	
  97

  
	
  Section 10.5.

  	
   

  	
  Survival

  	
   

  	
  99

  
	
  Section 10.6.

  	
   

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  100

  
	
  Section 10.7.

  	
   

  	
  Severability

  	
   

  	
  100

  
	
  Section 10.8.

  	
   

  	
  Right of Setoff

  	
   

  	
  100

  
	
  Section 10.9.

  	
   

  	
  Governing Law; Waiver of Jury Trial

  	
   

  	
  100

  
	
  Section 10.10.

  	
   

  	
  Submission To Jurisdiction; Waivers

  	
   

  	
  100

  
	
  Section 10.11.

  	
   

  	
  Headings

  	
   

  	
  101

  
	
  Section 10.12.

  	
   

  	
  Interest Rate Limitation

  	
   

  	
  101

  
	
  Section 10.13.

  	
   

  	
  Patriot Act

  	
   

  	
  101

  
	
  Section 10.14.

  	
   

  	
  Confidentiality

  	
   

  	
  102

  

 

 -iii-
 

 

The exhibits and schedules listed below have been
omitted. A copy of the omitted exhibits and schedules will be furnished to the
Securities and Exchange Commission upon its request.

EXHIBITS:

	
  Exhibit A

  	
   

  	
  Form of Assignment and Acceptance

  
	
  Exhibit B-1

  	
   

  	
  Form of A Term Loan Note

  
	
  Exhibit B-2

  	
   

  	
  Form of B Term Loan Note

  
	
  Exhibit B-3

  	
   

  	
  Form of Revolving Loan Note

  
	
  Exhibit B-4

  	
   

  	
  Form of Swingline Note

  
	
  Exhibit C

  	
   

  	
  Form of Solvency Certificate

  
	
  Exhibit D

  	
   

  	
  Form of Additional Term Loan Supplement

  
	
  Exhibit E

  	
   

  	
  Form of Revolving Increase Supplement

  
	
  Exhibit F-1

  	
   

  	
  Form of Opinion of Dow Lohnes PLLC

  
	
  Exhibit F-2

  	
   

  	
  Form of Opinion of Debevoise & Plimpton LLP

  
	
  Exhibit F-3

  	
   

  	
  Form of Opinion of Richards, Layton & Finger,
  P.A.

  
	
  Exhibit G

  	
   

  	
  Form of Closing Certificate

  
	
  Exhibit H

  	
   

  	
  Form of Lender Authorization

  
	
  Exhibit I

  	
   

  	
  Tax Statement

  

 

SCHEDULES:

	
  Schedule 1.1A

  	
   

  	
  Commitments

  
	
  Schedule 1.1B

  	
   

  	
  List of Existing Letters of Credit

  
	
  Schedule 4.6

  	
   

  	
  Disclosed Matters

  
	
  Schedule 4.12

  	
   

  	
  List of Subsidiaries

  
	
  Schedule 4.13

  	
   

  	
  List of Insurance

  
	
  Schedule 7.1

  	
   

  	
  List of Existing Indebtedness

  
	
  Schedule 7.2

  	
   

  	
  List of Existing Liens

  
	
  Schedule 7.4

  	
   

  	
  List of Existing Investments

  
	
  Schedule 7.9

  	
   

  	
  List of Agreements with Affiliates

  
	
  Schedule 7.10

  	
   

  	
  List of Existing Restrictions

  

 

 -iv-

CREDIT AGREEMENT, dated as of October 6, 2006, among
INSIGHT MIDWEST HOLDINGS, LLC, the LENDERS party hereto, J.P. MORGAN SECURITIES
INC. and BANK OF AMERICA, N.A., as Co-Syndication Agents, MORGAN STANLEY SENIOR
FUNDING, INC., GENERAL ELECTRIC CAPITAL CORPORATION, WACHOVIA BANK, NATIONAL
ASSOCIATION and THE ROYAL BANK OF SCOTLAND PLC, as Co-Documentation Agents, and
THE BANK OF NEW YORK, as Administrative Agent.

The parties hereto agree as follows:

ARTICLE 1

DEFINITIONS

Section 1.1.                                   Defined
Terms

As used in this Credit Agreement, the following terms
have the meanings specified below:

“A Delayed Draw Expiration Date” means the date
that is 45 days following the Closing Date.

“A Delayed Draw Funding Date” means the date on
which the Borrower borrows A Delayed Draw Term Loans.

“A Delayed Draw Term Loan” means a Loan made
pursuant to Section 2.1(b)(ii).

“A Delayed Draw Term Loan Commitment” means,
with respect to each Lender, the commitment, if any, of such Lender to make an
A Delayed Draw Term Loan hereunder on the A Delayed Draw Funding Date,
expressed as an amount representing the maximum principal amount of the A Delayed
Draw Term Loan to be made by such Lender hereunder, as such commitment may be
(a) reduced from time to time pursuant to Section 2.5(c) and (b) reduced or
increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 10.4. The initial amount of each Lender’s A Delayed Draw
Term Loan Commitment is set forth on Schedule 1.1A, or in the Assignment
and Assumption pursuant to which such Lender shall have assumed its A Delayed
Draw Term Loan Commitment, as applicable. The initial aggregate amount of the
Lenders’ A Delayed Draw Term Loan Commitments is $385,000,000.

“A Initial Term Loan” means a Loan made
pursuant to Section 2.1(b)(i).

“A Initial Term Loan Commitment” means, with
respect to each Lender, the commitment, if any, of such Lender to make an A
Initial Term Loan hereunder on the Closing Date, expressed as an amount
representing the maximum principal amount of the A Initial Term Loan to be made
by such Lender hereunder, as such commitment may be reduced or increased from
time to time pursuant to assignments by or to such Lender pursuant to Section
10.4. The initial amount of each Lender’s A Initial Term Loan Commitment is set
forth on Schedule 1.1A, or in the Assignment and Assumption pursuant to
which such Lender shall have assumed its A Initial Term Loan Commitment, as
applicable. The initial aggregate amount of the Lenders’ A Initial Term Loan
Commitments is $0.

“A Term Commitment” means an A Initial Term
Loan Commitment or an A Delayed Draw Term Loan Commitment.  The aggregate amount of the A Term
Commitments as of the Closing Date is $385,000,000.

 

“A Term Loan” means an A Initial Term Loan or
an A Delayed Draw Term Loan.  For the
avoidance of doubt, the A Initial Term Loans and the A Delayed Draw Term Loans
shall constitute A Term Loans for all purposes under the Loan Documents,
including, without limitation, for the defined term “Class”. 

“A Term Maturity Date” means October 6, 2013,
and if such date is not a Business Day, the next succeeding Business Day.

“ABR”, when used in reference to any Loan or
Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing,
are bearing interest at a rate determined by reference to the Alternate Base
Rate.

“Additional Term Loan” and “Additional Term
Loans” shall have the respective meanings set forth in Section 2.1(e).

“Additional Term Loan Borrowing Date” shall
have the meaning set forth in the applicable Additional Term Loan Supplement.

“Additional Term Loan Commitment” shall mean,
as of any date and with respect to any Lender, the amount set forth in
paragraph 2 or 3 of the applicable Effective Additional Term Loan Supplement.

“Additional Term Loan Maturity Date” shall have
the meaning set forth in the applicable Additional Term Loan Supplement.

“Additional Term Loan Supplement” means a
supplement in substantially the form of Exhibit D.

“Adjusted Annualized Consolidated Operating Cash
Flow” means Annualized Consolidated Operating Cash Flow adjusted on a Pro
Forma Basis.

“Adjusted LIBO Rate” means, with respect to any
Eurodollar Borrowing for any Interest Period, an interest rate per annum
(rounded upwards, if necessary, to the next 1/100 of 1%) equal to (a) the LIBO
Rate for such Interest Period multiplied by (b) the Statutory Reserve
Rate.

“Administrative Agent” means BNY, in its
capacity as administrative agent for the Lenders hereunder, together with any
of its successors.

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

“Affected Loans” has the meaning assigned to
such term in Section 2.7(e).

“Affiliate” means, with respect to a specified
Person, another Person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common Control with
the Person specified; provided that (i) so long as the Sponsor
collectively owns directly or indirectly, at least 20% of the issued and
outstanding voting Equity Interests of the Borrower, the Sponsor shall be
deemed to be an Affiliate of the Borrower and each one of the Subsidiaries and
(ii) Comcast and its subsidiaries shall not be deemed to be Affiliates of the
Borrower or any of the Subsidiaries as a result of Comcast’s or any of its
subsidiaries’ partnership interest in Insight Midwest, unless TCI or any Person
or Persons that succeed to any or all rights of TCI under the Partnership
Agreement are given materially

 2
 

 

more voting or veto rights than TCI has under the
Partnership Agreement on the Closing Date or Comcast or one of its Affiliates
(without giving effect to this clause (ii)) becomes the general partner under
the Partnership Agreement, in which cases the presumption set forth in this
clause (ii) shall not apply.

“Agents” means, collectively, BNY, J.P. Morgan
Securities Inc., Bank of America, N.A., Morgan Stanley Senior Funding, Inc.,
General Electric Capital Corporation, Wachovia Bank, National Association and
The Royal Bank of Scotland plc.

“Agreement” means this Credit Agreement, as
amended, restated, supplemented or otherwise modified from time to time.

“Alternate Base Rate” means, for any day, a
rate per annum equal to the greater of (i) the Prime Rate in effect on such day
and (ii) the Federal Funds Effective Rate in effect on such day plus 1/2
of 1%.  Any change in the Alternate Base
Rate due to a change in the Prime Rate or the Federal Funds Effective Rate
shall be effective from and including the effective date of such change in the
Prime Rate or the Federal Funds Effective Rate, respectively.

“Annualized Consolidated Operating Cash Flow”
means, with respect to any fiscal quarter, Consolidated Operating Cash Flow for
such fiscal quarter multiplied by four.

“Applicable Margin” means:

(a)                                  at all times from and after the Closing
Date and during the applicable periods set forth below:  (i) with respect to ABR Revolving Borrowings
and ABR A Term Loan Borrowings, the percentage set forth below under the
heading “Revolving and A Term ABR Margin”, (ii) with respect to Eurodollar
Revolving Borrowings, Eurodollar A Term Loan Borrowings and fees payable under
Section 3.3(b), the percentage set forth below under the heading “Eurodollar
and LC Fee Margin”, (iii) with respect to the fees payable under Section 3.3(a)(i),
the percentage set forth below under the heading “Commitment Fee Margin for
Revolving Commitments” and (iv) with respect to Swingline Loans that do not
bear interest at the Negotiated Rate, the percentage set forth below under the
heading “Revolving and A Term ABR Margin”; provided that, in the case of
each of clauses (i) through (iv) until the first delivery of financial
statements after the Closing Date pursuant to Section 6.1(a) or (b), Pricing
Level 3 shall apply:

	
  Pricing Level

  	
   

  	
  Leverage Ratio

  	
   

  	
  Revolving

  and A Term

  ABR Margin

  	
   

  	
  Eurodollar and LC Fee

  Margin

  	
   

  	
  Commitment

  Fee Margin

  for Revolving

  Commitments

  	
   

  
	
  1

  	
   

  	
  >
  5.75:1.00

  	
   

  	
  1.00

  	
  %

  	
  2.00

  	
  %

  	
  0.500

  	
  %

  
	
  2

  	
   

  	
  <
  5.75:1.00 and > 5.25:1.00

  	
   

  	
  0.75

  	
  %

  	
  1.75

  	
  %

  	
  0.375

  	
  %

  
	
  3

  	
   

  	
  <
  5.25:1.00 and > 4.75:1.00

  	
   

  	
  0.50

  	
  %

  	
  1.50

  	
  %

  	
  0.375

  	
  %

  
	
  4

  	
   

  	
  <
  4.75:1.00 and > 4.25:1.00

  	
   

  	
  0.25

  	
  %

  	
  1.25

  	
  %

  	
  0.375

  	
  %

  
	
  5

  	
   

  	
  < 4.25:1.00

  	
   

  	
  0.00

  	
  %

  	
  1.00

  	
  %

  	
  0.250

  	
  %

  

(b)                                 (i) at all times from and after the
Closing Date and prior to the Exit Event Effective Date, (x) with respect to
ABR B Term Loan Borrowings, 1.25%, and (y) with respect to Eurodollar B Term
Loan Borrowings, 2.25% and (ii) at all times from and after the Exit Event
Effective Date, (x) with respect to ABR B Term Loan Borrowings, the percentage
set forth below under the heading “B Term ABR Margin”, and (y) with respect to
Eurodollar B Term Loan Borrowings, the percentage set forth below under the
heading “B Term Eurodollar Margin”:

 3
 

 

 

	
  Pricing Level

  	
   

  	
  Leverage Ratio

  	
   

  	
  B Term

  ABR

  Margin

  	
   

  	
  B Term

  Eurodollar

  Margin

  	
   

  
	
  1

  	
   

  	
  >6.50 : 1.00

  	
   

  	
  1.75

  	
  %

  	
  2.75

  	
  %

  
	
  2

  	
   

  	
  <6.50
  : 1.00

  	
   

  	
  1.25

  	
  %

  	
  2.25

  	
  %

  

(c)                                  With respect to each Additional Term
Loan, “Applicable Margin” shall have the meaning set forth in Schedule I to the
Effective Additional Term Loan Supplement applicable thereto.

Changes in the Applicable Margin resulting from a
change in the Leverage Ratio shall be based upon the certificate most recently
delivered under Section 6.1(c) and shall become effective on the date of such
delivery.  Notwithstanding anything to
the contrary in this definition, if the Borrower shall fail to deliver to the
Administrative Agent such a certificate on or prior to any date required
hereby, Pricing Level 1 shall apply to each chart in this definition from and
including such date to the date of delivery to the Administrative Agent of such
certificate.

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

“Applicable Transactions” has the meaning
assigned to such term in the defined term “Pro Forma Basis”.

“Approved Fund” means any Person (other than a
natural person) that is primarily engaged in making, purchasing, holding or
investing in bank loans and similar extensions of credit in the ordinary course
and that is administered or managed by (a) a Lender, (b) an Affiliate of a
Lender or (c)(i) an entity or an Affiliate of an entity that administers or
manages a Lender or (ii) an entity or an Affiliate of an entity that is the
investment advisor to a Lender.

“Arrangers” means J.P. Morgan Securities Inc.
and Banc of America Securities LLC.

“Asset Transfer” has the meaning assigned to
such term in Section 7.5(m).

“Assignment and Acceptance” means an assignment
and acceptance entered into by a Lender and an assignee (with the consent of
any party whose consent is required by Section 10.4), and accepted by the
Administrative Agent, substantially in the form of Exhibit A or any
other form approved by the Administrative Agent and the Borrower.

“Availability Period” means the period from and
including the Closing Date to but excluding the earlier of the Revolving
Maturity Date and the date of termination of the Revolving Commitments.

“B Delayed Draw Expiration Date” means the date
that is 45 days following the Closing Date.

“B Delayed Draw Funding Date” means the date on
which the Borrower borrows B Delayed Draw Term Loans.

“B Delayed Draw Term Loan” means a Loan made
pursuant to Section 2.1(c)(ii).

 4
 

 

“B Delayed Draw Term Loan Commitment” means,
with respect to each Lender, the commitment, if any, of such Lender to make a B
Delayed Draw Term Loan hereunder on the B Delayed Draw Funding Date, expressed
as an amount representing the maximum principal amount of the B Delayed Draw
Term Loan to be made by such Lender hereunder, as such commitment may be (a)
reduced from time to time pursuant to Section 2.5(c) and (b) reduced or
increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 10.4. The initial amount of each Lender’s B Delayed Draw
Term Loan Commitment is set forth on Schedule 1.1A, or in the Assignment
and Assumption pursuant to which such Lender shall have assumed its B Delayed
Draw Term Loan Commitment, as applicable. The initial aggregate amount of the
Lenders’ B Delayed Draw Term Loan Commitments is $450,000,000.

“B Initial Term Loan” means a Loan made
pursuant to Section 2.1(c)(i).

“B Initial Term Loan Commitment” means, with
respect to each Lender, the commitment, if any, of such Lender to make a B
Initial Term Loan hereunder on the Closing Date, expressed as an amount representing
the maximum principal amount of the B Initial Term Loan to be made by such
Lender hereunder, as such commitment may be reduced or increased from time to
time pursuant to assignments by or to such Lender pursuant to Section 10.4. The
initial amount of each Lender’s B Initial Term Loan Commitment is set forth on Schedule
1.1A, or in the Assignment and Assumption pursuant to which such Lender
shall have assumed its B Initial Term Loan Commitment, as applicable. The
initial aggregate amount of the Lenders’ B Initial Term Loan Commitments is
$1,350,000,000.

“B Term Commitment” means a B Initial Term Loan
Commitment or a B Delayed Draw Term Loan Commitment.  The aggregate amount of the B Term
Commitments as of the Closing Date is $1,800,000,000.

“B Term Loan” means a B Initial Term Loan or a
B Delayed Draw Term Loan.  For the
avoidance of doubt, the B Initial Term Loans and the B Delayed Draw Term Loans
shall constitute B Term Loans for all purposes under the Loan Documents,
including, without limitation, for the defined term “Class”.

“B Term Maturity Date” means April 6, 2014, and
if such date is not a Business Day, the next succeeding Business Day.

“BBA LIBOR” has the meaning assigned to such
term in the definition of “LIBO Rate”.

“BNY” means The Bank of New York and its
successors.

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

“Borrower” means, (i) Insight Midwest Holdings,
LLC, a Delaware limited liability company or (ii) any Person designated as the “Post
Exit Borrower” pursuant to Section 7.14(d), and in each case, any successor
pursuant to Section 7.3(a).

“Borrower Materials” has the meaning assigned
to such term in Section 6.1.

“Borrower’s Portion of Excess Cash Flow” means
the aggregate cumulative amount of Excess Cash Flow for all fiscal years ending
after the Closing Date that is not required pursuant to the provisions of
Section 2.7(c) to be applied to the prepayment of Term Loans.

 5
 

 

“Borrowing” means (a) Revolving Loans, A Term
Loans, B Term Loans or Additional Term Loans, as applicable, of the same Type
made, converted or continued on the same date and, in the case of Eurodollar
Loans, as to which a single Interest Period is in effect and (b) Swingline
Loans.

“Borrowing Request” means a request by the
Borrower for a Borrowing in accordance with Section 2.3.

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

“Cable Television System Acquisition” means any
acquisition by the Borrower or any Subsidiary of any Cable Television Business
or any Person which owns and operates a Cable Television Business.  For purposes of this defined term, “Cable
Television Business” means the business of (i) acquiring, developing,
owning, operating, managing, selling, or investing in cable television systems
and businesses that, at the time of such acquisition, are related to and
ancillary to the ownership and operation of cable television systems
(including, but not limited to, high speed data service, Internet access, telephony
services and other telephony-related investments or businesses, and video
wireless services and wireless communications services and other
wireless-related investments or businesses, but not including multipoint
distribution systems, multichannel multipoint distribution systems,
direct-to-home satellite systems or internet backbone services), and (ii) using
IP technology to provide telephone, fax, video, video conferencing,
telecommuting, virtual private networks, security and energy management
services to subscribers of the Borrower’s or any Subsidiary’s cable television
systems.  For purposes of this defined
term, “IP” means the Internet Protocols as defined by the document
titled RFC-791, by John Pastell of the University of Southern California, dated
1981, or subsequent revisions thereof.

“Capital Expenditures” means for any period,
with respect to any Person, the aggregate of all cash expenditures by such
Person during such period for the acquisition or leasing (pursuant to a capital
lease but excluding any amount representing capitalized interest) of fixed or
capital assets or additions to equipment (including replacements, capitalized
repairs and improvements during such period) which are required to be
capitalized under GAAP on a balance sheet of such Person, provided that
in any event the term “Capital Expenditures” shall exclude: (i) any
expenditures to the extent financed with amounts reinvested from the proceeds
of asset sales or condemnation pursuant to the proviso in the definition of “Net
Proceeds” and (ii) expenditures for leasehold improvements for which such
Person is reimbursed or receives a credit from a Person that is not Parent,
Borrower or any of their respective subsidiaries.

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

“Cash Consideration” means the consideration
received by the Borrower or any Subsidiary for any Asset Transfer that is in
the form of cash or Cash Equivalents or a combination of the foregoing.  For purposes of this provision, each of the
following will be deemed to be cash:

(a)                                  any liabilities (as shown on the Borrower’s
most recent balance sheet) of the Borrower or any Subsidiary that are assumed
by the transferee of any such Asset Transfer pursuant to

 6
 

 

a written assignment and
assumption agreement that releases the Borrower or applicable Subsidiary from
further liability therefor; and

(b)                                 any securities, notes or other
obligations received by the Borrower or any Subsidiary from such transferee
that are converted by the Borrower or any Subsidiary into cash or Cash
Equivalents within 180 days of the receipt thereof (to the extent of the cash
or Cash Equivalents received in that conversion).

“Cash Equivalents” means:

(a)                                  securities issued or directly and fully
guaranteed or insured by the United States government or any agency or
instrumentality thereof (provided that the full faith and credit of the
United States is pledged in support thereof), maturing, unless such securities
are deposited to defease any Indebtedness permitted to be prepaid hereunder,
not more than one year from the date of acquisition;

(b)                                 certificates of deposit and eurodollar
time deposits with maturities of one year or less from the date of acquisition,
bankers’ acceptances with maturities not exceeding one year and overnight bank
deposits, in each case, with any Credit Party making such deposits available in
the ordinary course of business or any domestic commercial bank having capital
and surplus in excess of $500,000,000 and a rating at the time of acquisition
thereof of P-2 or better from Moody’s Investors Service, Inc. or A-2 or better
from Standard & Poor’s Ratings Group, Inc.;

(c)                                  repurchase obligations for underlying
securities of the types described in clauses (a) and (b) above entered into
with any financial institution meeting the qualifications specified in clause
(b) above;

(d)                                 commercial paper issued by a corporation
(other than an Affiliate of the Borrower) rated at least “A-2” or higher from
Moody’s or S&P and in each case maturing within one year after the date of
acquisition;

(e)                                  securities issued and fully guaranteed by
any state, commonwealth or territory of the United States, or by any political
subdivision or taxing authority thereof, rated at least “A” by Moody’s
Investors Service, Inc. or Standard & Poor’s Ratings Group, Inc. and having
maturities of not more than one year from the date of acquisition; and

(f)                                    money market funds at least 95% of the
assets of which constitute Cash Equivalents of the kinds described in clauses
(a) through (e) of this definition or cash.

“Change in Control”
means any of the following:

(a)                                  at any time prior to a Qualifying IPO (x)(i)
Permitted Holders shall in the aggregate be the “beneficial owner” (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act) of Equity Interests having
less than 50.1% of the total voting power of all outstanding Equity Interests of
the Parent and (ii) if the Parent is a limited liability company, partnership
or limited partnership, Permitted Holders shall in the aggregate be the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) of Equity
Interests having less than 50.1% of the total voting power of all outstanding
Equity Interests of the Manager of the Parent or (y) the Permitted Holders
shall in the aggregate be the “beneficial owner” (as defined in Rules 13d-3 and
13d-5 under the Exchange Act) of (i) if the Parent is a limited liability
company, partnership or limited partnership, Equity Interests having less than
50.1% of the total economic interest of all outstanding

 7
 

 

Equity Interests of the Manager of the Parent and
(ii) Equity Interests having less than 50.1% of the total economic interest of
all outstanding Equity Interests of the Parent; provided that for
purposes of each such determination under this clause (y), the amount of such
Equity Interests so owned by Permitted Holders other than Persons in clause
(a)(u) or (y) of the definition of “Permitted Holders” (and Persons described in clause (a)(z), (b)
or (d) of the definition of “Permitted Holders” to the extent related to
Persons described in clause (a)(u) or (y) of the definition of “Permitted
Holders”) included in such determination shall be limited such that the
amount of such Equity Interests so owned by Persons in clause (a)(u) or (y) of
the definition of “Permitted Holders” (and
Persons described in clause (a)(z), (b) or (d) of the definition of “Permitted
Holders” to the extent related to Persons described in clause (a)(u) or (y) of
the definition of “Permitted Holders”) shall constitute the largest
block of such Equity Interests so owned by Permitted Holders included in such
determination;

(b)                                 at any time on and after a Qualifying IPO,
Permitted Holders shall in the aggregate be the “beneficial owner” (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act) of (x) shares of Equity
Interests having less than 35% of the total voting power of all outstanding
Equity Interests of the Parent, and any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more
Permitted Holders, shall be the “beneficial owner” of shares of Equity Interests
having 35% or more of the total voting power of all outstanding Equity
Interests of the Parent and (y) if the Parent is a limited liability company,
partnership or limited partnership, shares of Equity Interests having less than
35% of the total voting power of all outstanding Equity Interests of the
Manager of the Parent, and any “person” or “group” (as such terms are used in
Sections 13(d) and 14(d) of the Exchange Act), other than one or more Permitted
Holders, shall be the “beneficial owner” of shares of Equity Interests having
35% or more of the total voting power of all outstanding Equity Interests of
the Manager of the Parent; or

(c)                                  a Parent shall cease to own 100% of the
Equity Interests of the Borrower.

“Change in Law” means (i) the adoption of any
law, rule or regulation by any Governmental Authority after the Closing Date,
(ii) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the Closing Date or
(iii) compliance by any Credit Party (or, for purposes of Section 3.5(b), by
any lending office of such Credit Party or by such Credit Party’s holding
company, if any) with any request, guideline or directive (whether or not
having the force of law) of any Governmental Authority made or issued after the
Closing Date.

“Class”, (i) when used in reference to any
Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are Revolving Loans, A Term Loans, B Term Loans, Additional Term
Loans or Swingline Loans and (ii) when used in reference to any Lender,
refers to such Lender in its capacity as a holder of Revolving Loans, A Term
Loans, B Term Loans or Additional Term Loans, as applicable.

“Closing Date” means October 6, 2006.

“Code” means the Internal Revenue Code of 1986.

“Collateral” means any and all “Collateral” as
defined in any applicable Security Document.

“Comcast” means Comcast Corporation, a
Pennsylvania corporation.

 8
 

 

“Commitments” means, collectively, the
Revolving Commitments, the A Term Commitments, the B Term Commitments and the
Additional Term Loan Commitments, if existing.

“Communications Act” means the Federal
Communications Act of 1934, and the rules and regulations issued thereunder.

“Consolidated Current Assets” means at any
date, all amounts (other than cash and Cash Equivalents) that would, in
conformity with GAAP, be set forth opposite the caption “total current assets”
(or any like caption) on a consolidated balance sheet of the Borrower and the
Subsidiaries at such date.

“Consolidated Current Liabilities” means at any
date, all amounts that would, in conformity with GAAP, be set forth opposite
the caption “total current liabilities” (or any like caption) on a consolidated
balance sheet of the Borrower and the Subsidiaries at such date, but excluding
(a) the current portion of any Indebtedness of the Borrower and the
Subsidiaries as of such date and (b) without duplication, all Indebtedness
consisting of Revolving Loans as of such date, to the extent otherwise included
therein.

“Consolidated Interest Expense” means, for any
period, (i)(a) the cash interest expense, both expensed and capitalized
(including the interest component in respect of Capital Lease Obligations), accrued
or paid by the Borrower and the Subsidiaries during such period, (b) cash
interest expense on the 93⁄4% Senior Notes or Refinancing Indebtedness in respect
thereof, (c) cash interest expense on the 121⁄4% Senior Notes or Refinancing
Indebtedness in respect thereof and (d) cash interest
expense on any Designated Holding Company Debt, in each case during such period, minus (ii)
total cash interest income for such period, in each case, determined on a
consolidated basis in accordance with GAAP; provided, however,
that interest expense in respect of the Indebtedness described in clauses (b)
through (d) of this definition shall only be included in the calculation of
Consolidated Interest Expense to the extent that any Holding Company is
obligated to pay such amounts or to the extent that the Borrower makes
Restricted Payments with respect to such Indebtedness pursuant to Section 7.8.

“Consolidated Operating Cash Flow” means, for
any period Net Income, plus, without duplication and to the extent
deducted in determining such Net Income, the sum of (i) Consolidated Interest
Expense for such period, (ii) provision for income taxes for such period, (iii)
the aggregate amount attributable to depreciation and amortization for such
period, (iv) the aggregate amount of extraordinary or non-recurring charges
during such period, (v) following the Exit Event Effective Date, the regularly
scheduled consulting fee under the Consulting Agreement, (vi) duplicative
severance and relocation costs and expenses, (vii) any other non-cash charges,
expenses or losses, including in relation to Hedge Agreements, earn-outs and
similar obligations (except to the extent such charges, expenses or losses
represent an accrual of or reserve for cash expenses in any future period),
(viii) any non-cash compensation charge arising from any grant of stock, stock
options or other equity-based awards, (ix) deductions attributable to minority
interests, (x) any expenses or losses consisting of restructuring charges,
litigation settlements and judgments and related costs, (xi) the amount of net
cost savings projected by the Borrower in good faith to be realized as a result
of high speed internet migration and other similar business optimization
projects during such period (calculated on a pro forma basis as though such
cost savings had been realized on the first day of such period); provided
that such cost savings are expected to be realized within one year of the
initiation of such migration and similar optimization projects and a reasonably
detailed calculation of such cost savings has been set forth in a certificate
of a Financial Officer delivered to the Administrative Agent and (xii) cash
expenses relating to earn-outs, indemnities and other similar obligations and minus,
without duplication and to the extent added in determining such net income, the
aggregate amount of extraordinary, non-cash and non-recurring additions to
income during such period, all calculated as if any Subsidiary or business that
has been presented as discontinued operations in the Borrower’s consolidated

 9
 

 

financial statements but that has not been sold or
disposed of as of the last day of such period had been presented as part of
continuing operations.  Solely for
purposes of determining compliance with the Financial Covenants, the net cash
proceeds of any issuance of Qualified Equity of the Borrower or contribution of
cash to the capital of the Borrower on or after the first day of any fiscal
quarter and prior to the day that is 10 days after the day on which financial
statements are required to be delivered for such fiscal quarter (it being understood
that each such contribution shall be credited with respect to only one fiscal
quarter, provided that such credit shall be effective as to such fiscal
quarter for all periods in which such fiscal quarter is included in determining
compliance with the Financial Covenants) will, at the request of the Borrower,
be deemed to increase, dollar for dollar, Consolidated Operating Cash Flow for
such fiscal quarter for the purposes of determining compliance with such
Financial Covenants at the end of such fiscal quarter and applicable subsequent
periods (any such equity contribution so included in the calculation of
Consolidated Operating Cash Flow, a “Specified Equity Contribution”), provided
further that (a) in each four fiscal quarter period there shall be
a period of at least two consecutive fiscal quarters in which no Specified
Equity Contribution is made and (b) the amount of any Specified Equity
Contribution shall be no greater than the amount required to cause the Borrower
to be in compliance with the Financial Covenants.

“Consolidated Total Debt” means, as of any
date, the aggregate principal amount of all Indebtedness of the Borrower and
the Subsidiaries that would be reflected as liabilities on a consolidated
balance sheet of the Borrower and the Subsidiaries as of such date prepared in
accordance with GAAP, less any cash and Cash Equivalents of the Borrower
and the Subsidiaries as of such date (other than restricted cash and Cash
Equivalents of the Borrower and the Subsidiaries as of such date).

“Consolidated Working Capital” means as of any
date, the difference of (a) Consolidated Current Assets on such date less (b)
Consolidated Current Liabilities on such date. 
Consolidated Working Capital at any date may be a positive or negative
number.  Consolidated Working Capital
increases when it becomes more positive or less negative and decreases when it
becomes less positive or more negative.

“Co-Syndication Agents” means J.P. Morgan
Securities Inc. and Bank of America, N.A.

“Consulting Agreement” means the Consulting
Agreement, dated as of December 16, 2005, among Insight Holdings, TC Group III,
L.L.C. and TC Group IV, L.L.C., as amended, restated, supplemented or otherwise
modified from time to time in any manner that would not reasonably be expected
to adversely affect the Lenders in any material respect.

“Control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by
contract or otherwise.  The terms “Controlling”
and “Controlled” have meanings correlative thereto.

“Credit Parties” means the Administrative
Agent, any Issuing Bank, the Swingline Lender and the Lenders.

“Debt Issuance” means the incurrence by
Borrower or any of the Subsidiaries of any Indebtedness after the Closing Date
(other than as permitted by Section 7.1).

“Declined Loans” shall have the meaning
assigned to such term in Section 2.7(b).

“Default” means any event or condition that
constitutes an Event of Default or that upon notice, lapse of time or both
would, unless cured or waived, become an Event of Default under Article 8.

 10
 

 

“Defaulting Lender” has the meaning assigned to
such term in Section 3.9.

“Delayed Draw Term Loans” shall be the
collective reference to the A Delayed Draw Term Loans and B Delayed Draw Term
Loans.

“Designated Excess Cash Flow Expenditures”
means the cash expenditures made by the Borrower and the Subsidiaries from the
Borrower’s Portion of Excess Cash Flow to (a) make Investments pursuant to
Section 7.4(y) (provided
that, for purposes of this definition, the amount of such expenditures shall be
the amount of such Investments as determined pursuant to Section 7.4(y)) and
(b) make Restricted Payments pursuant to Section 7.8(p).

“Designated Holding Company Debt” means any
Holding Company Debt that is designated by the Borrower as such substantially
contemporaneously with the incurrence thereof by the applicable Holding
Company, such designation to be in the form of a written notice to the
Administrative Agent for further distribution to the Lenders, and any
Refinancing Indebtedness in respect thereof.

“Disclosed Matters” means the actions, suits
and proceedings and the environmental matters disclosed in Schedule 4.6.

“Disposition” means, with respect to any
Property, any sale, sale and leaseback, assignment, conveyance, transfer,
distribution or other effectively complete disposition thereof.  The terms “Dispose” and “Disposed
of” shall have correlative meanings.

“Disqualified Equity” means any Equity Interest
of any Person that, by its terms (or by the terms of any security into which it
is convertible or for which it is exchangeable at the option of the holder
thereof), or upon the happening of any event, matures or is mandatorily redeemable,
pursuant to a sinking fund obligation or otherwise, or is redeemable at the
option of the holder thereof, in whole or in part, on or prior to the date that
is 91 days after the later to occur of the B Term Maturity Date and the latest
final stated maturity of any Indebtedness that is incurred under Section 2.1(d)
or 2.5(d) outstanding (or in respect of which commitments are effective) at the
time of the issuance of such Equity Interest; provided, however, that
(i) only the portion of such Equity Interests which so matures or is
mandatorily redeemable, is so convertible or exchangeable or is so redeemable
at the option of the holder thereof prior to such dates shall be deemed to be
Disqualified Equity and (ii) with respect to any Equity Interests of any Holding
Company issued to any employee or to any plan for the benefit of employees of
the Borrower or its Subsidiaries or by any such plan to such employees, such
Equity Interests shall not constitute Disqualified Equity solely because it may
be required to be repurchased by such Holding Company or any of its
subsidiaries in order to satisfy applicable statutory or regulatory obligations
or as a result of such employee’s termination, death or disability and if any
class of Equity Interests of such Person that by its terms authorizes such
Person to satisfy its obligations thereunder by delivery of an Equity Interest
that is not Disqualified Equity, such Equity Interests shall not be deemed to
be Disqualified Equity.  Notwithstanding
the preceding sentence, any Equity Interests that would constitute Disqualified
Equity solely because the holders thereof have the right to require such Person
to repurchase or redeem such Equity Interests upon the occurrence of one or
more specified events shall not constitute Disqualified Equity if the terms of
such Equity Interest provide that such Person may not repurchase or redeem any
such Equity Interest unless such repurchase or redemption complies with
Section 7.8 of this Agreement.

“dollars” or “$” refers to lawful money
of the United States of America.

“Domestic Subsidiary” means any Subsidiary
organized under the laws of any jurisdiction within the United States.

 11
 

 

“Effective Additional Term Loan Supplement”
shall mean an Additional Term Loan Supplement, if any, that has been delivered
to and accepted by the Administrative Agent in accordance with Section 2.1(d).

“Environmental Laws” means all laws, rules,
regulations, codes, ordinances, orders, decrees, judgments, injunctions,
notices or binding agreements issued, promulgated or entered into by any
Governmental Authority having the force or effect of law or regulation,
relating in any way to the environment, preservation or reclamation of natural
resources, the management, release or threatened release of any Hazardous Material
or to health and safety matters.

“Environmental Liability” means, as to any
Person, any liability, contingent or otherwise (including any liability for
damages, costs of environmental remediation, fines, penalties or indemnities),
of such Person directly or indirectly resulting from or based upon (i)
violation of any Environmental Law, (ii) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials,
(iii) exposure to any Hazardous Materials, (iv) the release or threatened
release of any Hazardous Materials into the environment or (v) any contract,
agreement or other consensual arrangement pursuant to which liability is
assumed or imposed with respect to any of the foregoing.

“Equity Interest” means (a) shares of corporate
stock, partnership interests, membership interests, and any other interest that
confers on a Person the right to receive a share of the profits and losses of,
or distribution of assets of, the issuing Person and (b) all warrants, options
or other rights to acquire any Equity Interest set forth in clause (a) of this
defined term (but excluding any debt security that is convertible into, or
exchangeable for, any such Equity Interest).

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

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

“ERISA Event” means (i) any “reportable event”,
as defined in Section 4043 of ERISA or the regulations issued thereunder with
respect to a Plan (other than an event for which the 30-day notice period is
waived); (ii) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA),
whether or not waived; (iii) the filing pursuant to Section 412(d) of the Code
or Section 303(d) of ERISA of an application for a waiver of the minimum
funding standard with respect to any Plan; (iv) the incurrence by the Borrower
or any ERISA Affiliate of any liability under Title IV of ERISA with respect to
the termination of any Plan; (v) the receipt by the Borrower or any ERISA
Affiliate from the PBGC or a plan administrator of any notice relating to an
intention to terminate any Plan or Plans or to appoint a trustee to administer
any Plan; (vi) the incurrence by the Borrower or any ERISA Affiliate of any
liability with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (vii) the receipt by the Borrower or any ERISA Affiliate
of any notice, or the receipt by any Multiemployer Plan from the Borrower or
any ERISA Affiliate of any notice, concerning the imposition of Withdrawal
Liability or a determination that a Multiemployer Plan is, or is expected to
be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

“Eurodollar”, when used in reference to any
Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are bearing interest at a rate determined by reference to the
Adjusted LIBO Rate.

 12
 

 

“Event of Default” has the meaning assigned to
such term in Article 8.

“Excess Cash Flow” means for any fiscal year of
the Borrower, the difference, if any, of:

(a)                                  the sum, without duplication, of:

(i)                               Net Income for such fiscal year,

(ii)                            the amount of all non-cash charges
(including depreciation, amortization and deferred tax expense) deducted in
arriving at such Net Income,

(iii)                         the amount of the decrease, if any, in
Consolidated Working Capital for such fiscal year (excluding the effects of any write-up in inventory as a result of
purchase accounting or any decrease in Consolidated Working Capital as a result
of the Exit Event permitted by Section 7.14),

(iv)                        the aggregate net amount of non-cash
loss on the Disposition of Property by the Borrower and the Subsidiaries during
such fiscal year (other than sales of inventory in the ordinary course of
business and any Disposition of Property required, in the Borrower’s good faith
judgment, to consummate the Exit Event permitted by Section 7.14), to the
extent deducted in arriving at such Net Income,

(v)                           cash payments received in respect of
Hedging Agreements during such fiscal year to the extent not included in the
computation of Net Income,

(vi)                        the net amount of any loss resulting from
the Exit Event, to the extent included in arriving at such Net Income, and

(vii)                     tax refunds to the extent received in
cash by Borrower or any of the Subsidiaries and to the extent not included in
the computation of Net Income, minus,

(b)                                 the sum, without duplication (including,
in the case of clauses (ii) and (viii) below, duplication across periods; provided,
that all or any portion of the amounts referred to in clauses (ii) and (viii)
below with respect to a period may be applied in the determination of Excess
Cash Flow for any subsequent period to the extent such amounts did not
previously result in a reduction of Excess Cash Flow in any prior period), of:

(i)                               the amount of all non-cash credits
included in arriving at such Net Income (including, without limitation,
deferred tax credits),

(ii)                            the aggregate amount (A) actually paid by
the Borrower and the Subsidiaries in cash during such fiscal year on account of
Capital Expenditures permitted under this Agreement and Permitted Acquisitions
and (B) committed during such fiscal year to be used to make Capital
Expenditures permitted under this Agreement or Permitted Acquisitions which in
either case have been actually made or consummated or for which a binding
agreement exists as of the time of determination of Excess Cash Flow for such
fiscal year (in each case under this clause (ii) other than to the extent any
such Capital Expenditure or Permitted Acquisition is attributable to the
incurrence of Capital Lease Obligations or otherwise made (or, in the case of
the preceding clause (B), is expected to be made) with the net cash proceeds of
Indebtedness or an Equity Issuance or with the proceeds of any expenditures to
the extent financed with amounts reinvested from the

 13
 

 

proceeds of a
asset sales or condemnation pursuant to the proviso in the definition of “Net
Proceeds),

(iii)                         the aggregate amount of all regularly
scheduled principal payments of Indebtedness (including, without limitation,
the Term Loans) of the Borrower and the Subsidiaries made during such fiscal
year (other than in respect of any revolving credit facility to the extent
there is not an equivalent permanent reduction in commitments thereunder),
other than to the extent any such payments are funded from an incurrence of Indebtedness,

(iv)                        the amount of the increase, if any, in
Consolidated Working Capital for such fiscal year (excluding the effects of (x) any write-up in inventory as a result of purchase accounting and
(y) any increase in Consolidated Working Capital as a result of the Exit Event
permitted by Section 7.14),

(v)                           the aggregate net amount of non-cash gain
on the Disposition of Property by the Borrower and the Subsidiaries during such
fiscal year (other than sales of inventory in the ordinary course of business
and any Disposition of Property required, in the Borrower’s good faith
judgment, to consummate the Exit Event permitted by Section 7.14), to the
extent included in arriving at such Net Income,

(vi)                        cash fees and expenses incurred in
connection with the closing of any Permitted Acquisition, the Loan Documents or
the Exit Event,

(vii)                     purchase price adjustments paid in
connection with any Cable Television System Acquisition to the extent included
in arriving at such Net Income,

(viii)                  the net amount of Investments made during
such period pursuant to paragraphs (d) (to the extent such exchanges result in
payments of cash or Cash Equivalents by the Borrower or any Subsidiary), (e),
(i), (j) and (y) of Section 7.4, and to the extent not otherwise reducing Net
Income, Section 7.4(c)(iii), or committed during such period to be used to make
Investments pursuant to such paragraphs of Section 7.4 which have been actually
made or for which a binding agreement exists as of the time of determination of
Excess Cash Flow for such period,

(ix)                          the amount (determined by the Borrower)
of such Net Income which is mandatorily prepaid or reinvested or subject to
reinvestment pursuant to Section 2.7(b) (or as to which a waiver of the
requirements of such Section applicable thereto has been granted under Section
10.2), in each case prior to the date of determination of Excess Cash Flow for
such fiscal year as a result of any asset sale, casualty or condemnation,

(x)                             taxes for which reserves have been
established in accordance with GAAP, to the extent not reflected in the
computation of Net Income, provided that any amount so deducted shall be
added to Excess Cash Flow in respect of any subsequent fiscal year in which
such taxes reduced Net Income,

(xi)                          cash expenditures made in respect of
Hedging Agreements during such fiscal year, to the extent not reflected in the
computation of Net Income,

(xii)                       the aggregate amount of cash payments
made during such period in respect of non-cash charges,

 14
 

 

(xiii)                    solely to the extent not otherwise
deducted in calculating Net Income for such period, Restricted Payments made to
any Person other than Borrower or any of the Subsidiaries pursuant to Section
7.8 (other than Section 7.8(p) during such period,

(xiv)                   the net amount
of any income resulting from the Exit Event, to the extent included in arriving
at such Net Income,
and

(xv)                      any voluntary prepayments of Indebtedness
of Borrower or any of the Subsidiaries (other than the Loans hereunder), to the
extent such prepayment is not funded with the proceeds of any other Indebtedness;

provided that the foregoing calculation shall
exclude all extraordinary, one time effects of the Exit Event.

“Excess Cash Flow
Application Date”  has the meaning
assigned to such term in Section 2.7(c).

“Excess Cash Flow
Percentage” for any fiscal year means 50%; provided, that the Excess
Cash Flow Percentage shall be reduced to 25% if the Leverage Ratio as of the
last day of such fiscal year is equal to or less than 4.50 to 1.00 and reduced
further to 0% if the Leverage Ratio as of the last day of such fiscal year is
equal to or less than 3.50 to 1.00.

“Excluded Taxes”
means, with respect to any Credit Party or any other recipient of any payment
to be made by or on account of any obligation of any Loan Party under any Loan
Document, (i) net income or net profits, net worth, capital and franchise
Taxes imposed in lieu of net income Taxes imposed (A) by the United States of
America or by the jurisdiction (or any political subdivision thereof) under the
laws of which such recipient (or, in the case of a pass through entity, any of
its beneficial owners) is organized or in which its principal office is located
or, in the case of any Credit Party, in which its applicable lending office is
located or (B) as a result of a present or former connection between such recipient
or such beneficial owner thereof and the jurisdiction of the Governmental
Authority imposing such Tax or any political subdivision or taxing authority
thereof or therein (other than any such connection arising solely from such
recipient having executed, delivered or performed its obligations or received a
payment under, or enforced, any Loan Document), (ii) any branch profits Taxes
imposed by the United States of America or any similar Tax imposed by any other
jurisdiction in which such Loan Party is located organized or in which its
principal office is located or, in the case of any Credit Party, in which its
applicable lending office is located, (iii) in the case of a Foreign Lender,
withholding Taxes, including backup withholding Taxes, imposed on amounts
payable to such Foreign Lender unless such Taxes are imposed as a result of a
change in the applicable statute, regulation or treaty occurring after such
Lender becomes a party hereto (or designates a new lending office), except to
the extent that such Foreign Lender (or its assignor, if any) was entitled, at
the time of designation of a new lending office (or assignment), to receive
additional amounts from such Loan Party with respect to such Taxes pursuant to
Section 3.7, and (iv) Taxes resulting from a Lender’s (or, in the case of a
pass-through entity, any of its beneficial owners’) failure to comply with
Section 3.7(e) or (f).

“Existing Credit
Agreement” means the amended and restated credit agreement dated as of
August 26, 2003 (as amended) among the Borrower, the Administrative Agent, the
Co-Syndication Agents, TD Securities (USA), Inc. and Fleet National Bank as
co-documentation agents.

“Existing Letter of
Credit” means each letter of credit listed on Schedule 1.1B.

“Exit Assets”
shall have the meaning assigned to such term in Section 7.14(a)(i)(C)(III).

 15

 

“Exit Cash Flow” shall have the meaning
assigned to such term in Section 7.14(a)(i)(C)(IV).

“Exit Event” means any division of assets and
liabilities of Insight Midwest, the Borrower and the Subsidiaries pursuant to
the terms of Article 9 of the Partnership Agreement or any alternative division
of assets and liabilities agreed to by the partners party to the Partnership
Agreement and all transactions related thereto.

“Exit Event Commencement Date” has the meaning
assigned to such term in Section 7.14(a).

“Exit Event Effective Date” means the date of
consummation of the Exit Event.

“Exit Event Notice” has the meaning assigned to
such term in Section 7.14(a).

“FCC” means the Federal Communications
Commission, or any Governmental Authority succeeding to the functions thereof.

“Federal Funds Effective Rate” means, for any
day, a rate per annum (expressed as a decimal, rounded upwards, if necessary,
to the next 1/100 of 1%) equal to the weighted average of the rates on
overnight federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers on such day, as published by the Federal
Reserve Bank of New York on the Business Day next succeeding such day, provided
that (i) if the day for which such rate is to be determined is not a Business
Day, the Federal Funds Effective Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next succeeding
Business Day, and (ii) if such rate is not so published for any day, the Federal
Funds Effective Rate for such day shall be the average of the quotations for
such day on such transactions received by the Administrative Agent from three
Federal Funds brokers of recognized standing selected by it.

“Financial Covenants” means the financial
covenants set forth in Sections 7.12 and 7.13.

“Financial Officer” means, with respect to any
Person, the chief financial officer, principal accounting officer, treasurer,
controller or senior vice president, finance of such Person.

“Forecasts” has the meaning assigned to such
term in Section 4.4.

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

“Foreign Subsidiary” means any Subsidiary that
is not a Domestic Subsidiary.

“GAAP” means generally accepted accounting
principles in effect from time to time in the United States of America.

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

 16
 

 

“Guarantee” of or by any Person (the “guarantor”)
means any obligation, contingent or otherwise, of the guarantor guaranteeing or
having the economic effect of guaranteeing any Indebtedness or other obligation
of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of the guarantor, direct
or indirect, (i) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation or to purchase
(or to advance or supply funds for the purchase of) any security for the
payment thereof, (ii) to purchase or lease property, securities or services for
the purpose of assuring the owner of such Indebtedness or other obligation of
the payment thereof, (iii) to maintain working capital, equity capital or any
other financial statement condition or liquidity of the primary obligor as to
enable the primary obligor to pay such Indebtedness or other obligation or (iv)
as an account party in respect of any letter of credit or letter of guaranty
issued to support such Indebtedness or obligation, provided that the
term “Guarantee” shall not include endorsements for collection or deposit in
the ordinary course of business.  The
amount of any Guarantee of any guaranteeing person shall be deemed to be the
lower of (a) an amount equal to the stated or determinable amount of the
primary obligation in respect of which such Guarantee is made and (b) the
maximum amount for which such guarantor may be liable pursuant to the terms of
the instrument embodying such Guarantee in accordance with GAAP.  The term “guarantee” or “guaranteed” as a
verb has a correlative meaning thereto.

“Guarantee Agreement” means the Guarantee
Agreement, dated as of the Closing Date among Insight Midwest, the Subsidiary
Guarantors party thereto and the Administrative Agent, for the benefit of the
Secured Parties.

“Guarantee Documents” means the Guarantee Agreement
and each other guarantee agreement, instrument or other document executed or
delivered pursuant to Sections 6.10 or 6.11 to guarantee any of the
Obligations.

“Guarantors” means the Parent and the
Subsidiary Guarantors.

“Hazardous Materials” means all explosive or
radioactive substances or wastes and all hazardous or toxic substances, wastes
or other pollutants, including petroleum or petroleum distillates, asbestos or
asbestos containing materials, polychlorinated biphenyls, radon gas, infectious
or medical wastes and all other substances or wastes of any nature regulated
pursuant to any Environmental Law.

“Hedging Agreement” means any interest rate
protection agreement, foreign currency exchange agreement, commodity price
protection agreement or other interest or currency exchange rate or commodity
price swap, cap, collar, hedging or other like arrangement.

“Holding Company” means the Parent and any
other Person (other than a natural person) that Controls the Borrower.

“Holding Company Debt”
means any Indebtedness of any Holding Company (a) that is not guaranteed by the
Borrower or any Subsidiary and (b) proceeds from the issuance of which were
used substantially simultaneously with such issuance to make cash equity
investments in the Borrower.

“Immaterial Subsidiary” means on any date, any
Subsidiary that (i) had less than $500,000 of annual revenues and less
than $500,000 of assets as reflected on the most recent financial statements
delivered pursuant to Section 6.1 prior to such date and (ii) has
been designated as such by the Borrower in a written notice delivered to the
Administrative Agent (other than any such Subsidiary as to which the Borrower
has revoked such designation by written notice to the Administrative Agent); provided
that at no time shall the Immaterial Subsidiaries so designated by the Borrower
have annual revenues

 17
 

 

or assets (as reflected on the most recent financial
statements required to be delivered pursuant to Section 6.1 prior to such
time) in excess of $2,500,000 in the aggregate.

“Indebtedness” of any Person means, without
duplication, (i) all obligations of such Person for borrowed money, (ii) all
obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, (iii) all obligations of such Person under conditional sale or
other title retention agreements relating to property acquired by such Person,
(iv) all obligations of such Person in respect of the deferred purchase price
of property (excluding trade payables, in each case incurred in the ordinary
course of business) to the extent the same would be required to be shown as a
liability on a balance sheet under GAAP, (v) all Indebtedness of others secured
by (or for which the holder of such Indebtedness has an existing right to be
secured by) any Lien on property owned or acquired by such Person, whether or
not the Indebtedness secured thereby has been assumed, (vi) all Guarantees by
such Person of Indebtedness of others, (vii) all Capital Lease Obligations of
such Person, (viii) all obligations, contingent or otherwise, of such Person as
an account party in respect of letters of credit and letters of guaranty, (ix)
all obligations of such Person to pay a specified purchase price for goods
whether or not delivered or accepted (e.g., take-or-pay obligations) or similar
obligations, (x) all obligations, contingent or otherwise, of such Person in
respect of bankers’ acceptances and (xi) Disqualified Equity.  The Indebtedness of any Person shall include
the Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefor as a
result of such Person’s ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness provide that such
Person is not liable therefor.

“Indemnified Taxes” means Taxes other than
Excluded Taxes.

“Indemnitee” has the meaning assigned to such
term in Section 10.3(b).

“Insight Holdings” means Insight Communications
Company, Inc., a Delaware corporation.

“Insight Indiana” means Insight Communications
Midwest LLC, a Delaware limited liability company formerly known as Insight
Communications of Indiana, LLC.

“Insight Kentucky” means Insight Kentucky
Partners II, L.P., a Delaware limited partnership.

“Insight LP” shall mean Insight Communications
Company, L.P., a Delaware limited partnership.

“Insight Midwest” shall mean Insight Midwest,
L.P., a Delaware limited partnership.

“Insight Ohio” means Insight Communications of
Central Ohio, LLC, a Delaware limited liability company.

“Interest Coverage Ratio” means, as of any
fiscal quarter end, the ratio of (i) Adjusted Annualized Consolidated Operating
Cash Flow with respect to such fiscal quarter to (ii) Consolidated Interest
Expense determined on a Pro Forma Basis for such fiscal quarter and multiplied
by four.

“Interest Election Request” means a request by
the Borrower to convert or continue a Borrowing in accordance with Section 3.2.

 18
 

 

“Interest Payment Date” means (i) with respect
to any ABR Loan, the last day of each March, June, September and December, (ii)
with respect to any Eurodollar Loan, the last day of the Interest Period
applicable to the Borrowing of which such Loan is a part and, in the case of a
Eurodollar Loan with an Interest Period of more than three months’ duration,
each day prior to the last day of such Interest Period that occurs at intervals
of three months’ duration after the first day of such Interest Period, (iii) as
to all Revolving Loans, the Revolving Maturity Date, (iv) as to all A Term
Loans, the A Term Maturity Date, (v) as to all B Term Loans, the B Term
Maturity Date, (vi) as to each Additional Term Loan, on the Additional Term
Loan Maturity Date applicable thereto and (vii) as to any Swingline Loan, the
day that such Loan is required to be repaid pursuant to Section 2.6(a).

“Interest Period” means, with respect to any
Eurodollar Borrowing, the period commencing on the date of such Borrowing and
ending on the numerically corresponding day in the calendar month that is one,
two, three, six or, with the consent of all of the applicable Lenders, nine or
twelve months thereafter, as the Borrower may elect, provided that (i)
if any Interest Period would end on a day other than a Business Day, such
Interest Period shall be extended to the next succeeding Business Day, unless
such next succeeding Business Day would fall in the next calendar month, in
which case such Interest Period shall end on the next preceding Business Day,
and (ii) any Interest Period that commences on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the last calendar month of such Interest Period) shall end on the last
Business Day of the last calendar month of such Interest Period.  For purposes hereof, the date of a Borrowing
initially shall be the date on which such Borrowing is made and thereafter
shall be the effective date of the most recent conversion or continuation of
such Borrowing.  Notwithstanding the
foregoing, the Administrative Agent agrees to permit, and each Lender shall
provide, on a one-time basis, an Interest Period of less than one month
commencing on the Closing Date in order to align the end dates of subsequent
Interest Periods with the dates on which amortization amounts are due pursuant
to Section 2.6 of this Agreement, and the LIBO Rate in respect of such
Interest Period shall be reasonably determined by the Administrative Agent in
consultation with the Borrower.

“Investment” has the meaning assigned to such
term in Section 7.4.

“Issuing Bank” means (i) BNY, in its
capacity as issuer of Letters of Credit or (ii) any other Lender with a
Revolving Commitment from time to time designated by the Borrower with the consent
of such other Lender and the Administrative Agent (such consent of the
Administrative Agent not to be unreasonably withheld, conditioned or delayed).

“LC Disbursement” means a payment made by an
Issuing Bank pursuant to a Letter of Credit.

“LC Exposure” means, at any time, the sum,
without duplication, of (i) the aggregate undrawn amount of all outstanding
Letters of Credit at such time plus (ii) the aggregate amount of all LC
Disbursements that have not yet been reimbursed by or on behalf of the Borrower
at such time.  The LC Exposure of any
Lender at any time shall be its Applicable Percentage of the total LC Exposure
at such time.

“Lender Authorization” means a Closing Date
Lender Authorization substantially in the form of Exhibit H.

“Lenders” means the Persons listed on Schedule
1.1A and any other Person that shall have become a party hereto pursuant to
the terms and provisions of Section 10.4 and pursuant to an Assignment and
Acceptance, a Revolving Increase Supplement, an Additional Term Loan Supplement
or a Lender Authorization, other than any such Person that ceases to be a party
hereto pursuant to the terms

 19
 

 

and provisions of Section 10.4 and pursuant to an
Assignment and Acceptance.  Unless the
context otherwise requires, the term “Lenders” includes the Swingline Lender.

“Letter of Credit” means (i) any letter of
credit (and any successive renewals thereof) issued pursuant to this Agreement
and (ii) any Existing Letter of Credit.

“Leverage Ratio” means, as of any date, the
ratio of (i) Consolidated Total Debt as of such date to (ii) Adjusted
Annualized Consolidated Operating Cash Flow for the fiscal quarter of the Borrower
most recently ended with respect to which a delivery requirement for a compliance
certificate pursuant to Section 6.1(c) has arisen.

“LIBO Rate” means, with respect to any
Eurodollar Borrowing for any Interest Period, the rate per annum equal to the
British Bankers Association LIBOR Rate (“BBA LIBOR”) from Telerate
Successor Page 3750, as published by Reuters (or other commercially available
source providing quotations of BBA LIBOR as designated by the Administrative
Agent from time to time) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar
deposits with a maturity comparable to such Interest Period.  In the event that such rate is not available
at such time for any reason, then the “LIBO Rate” with respect to such
Eurodollar Borrowing for such Interest Period shall be the rate at which dollar
deposits of an amount equivalent to such Eurodollar Borrowings and for a
maturity comparable to such Interest Period are offered by the principal London
office of the Administrative Agent in immediately available funds in the London
interbank market at approximately 11:00 a.m., London time, two Business Days
prior to the commencement of such Interest Period.

“License” shall mean each license,
authorization, certification, waiver and permit required from any Governmental
Authority acting under the Communications Act or State Law.

“Lien” means, with respect to any asset, (i)
any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge
or security interest in, on or of such asset, (ii) the interest of a vendor or
a lessor under any conditional sale agreement, capital lease or title retention
agreement relating to such asset and (iii) in the case of securities, any
purchase option, call or similar right of a third party with respect to such
securities.

“Loan Documents” means this Agreement, the
Notes, the Guarantee Documents, the documentation in respect of each Letter of
Credit and the Security Documents.

“Loan Parties” means the Borrower, the Parent
and the Subsidiary Guarantors.

“Loans” means the loans made by the Lenders to
the Borrower pursuant to this Agreement.

“Management Agreements” means (a) the
Management Agreement, dated as of October 1, 1999, between Insight LP and
Insight Kentucky, (b) the Amended and Restated Management Agreement, dated as
of October 1, 1999, between Insight LP and Insight Indiana, (c) the Management
Agreement, dated as of September 29, 2003, by and between Insight LP and
Insight Ohio and (d) at any time following the Exit Event Effective Date, any
management agreement entered into among any of Insight Holdings and/or its
subsidiaries and the Borrower and/or any Subsidiary (each such agreement, an “Additional
Management Agreement”), in each case as amended, restated, supplemented or
otherwise modified from time to time to the extent permitted by Section 7.11.

 20
 

 

“Management Fees” means fees payable (a) by
Insight Indiana, Insight Kentucky and Insight Ohio to Insight LP pursuant to
the Management Agreements, including management fees received from their
respective subsidiaries and (b) by the Borrower or any Subsidiary pursuant to
any Additional Management Agreement, in a maximum aggregate amount for (a) and
(b), without duplication, not to exceed (i) prior to the Exit Event
Effective Date, 3% of
the consolidated gross revenue of the Borrower and the Subsidiaries for the
most recently ended fiscal quarter and (ii) upon and following
the Exit Event Effective Date, 6% of the consolidated gross revenues of the
Borrower and the Subsidiaries for the most recently ended fiscal quarter.

“Manager” means, with respect to any Person
that is a limited liability company, limited partnership, general partnership
or similar entity, the general partner, manager or managing member of such
Person.

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

“Material Adverse Effect” means a material
adverse effect on (i) the business, assets, operations, or financial condition
of the Borrower and the Subsidiaries, taken as a whole, or the Parent, the
Borrower and the Subsidiaries taken as a whole, or (ii) the rights of or
remedies available to any Credit Party, taken as a whole, under any Loan
Document; provided that the Exit Event, in and of itself (including all
effects on the business, assets, operations or financial condition of the
Borrower and the Subsidiaries, or the Parent, the Borrower and the Subsidiaries,
in each case that occur or arise to the extent such effects are a direct result
of the Exit Event), shall not constitute a Material Adverse Effect.

“Material Obligations” means Indebtedness
(other than Indebtedness under the Loan Documents) or other obligations of any
one or more of the Borrower or any Subsidiary in an aggregate principal amount
exceeding $25,000,000.  For purposes of
determining Material Obligations, the “principal amount” of the obligations of
the Borrower or any Subsidiary in respect of any Hedging Agreement at any time
shall be the maximum aggregate amount (giving effect to any netting agreements)
that the Borrower or such Subsidiary, as applicable, would be required to pay
if such Hedging Agreement were terminated at such time.

“Material Subsidiary” means a Subsidiary
constituting a “significant subsidiary” in accordance with Rule 1-02 under
Regulation S-X promulgated by the Securities and Exchange Commission, as in
effect on the Closing Date.

“Multiemployer Plan” means a multiemployer plan
as defined in Section 4001(a)(3) of ERISA.

“Negotiated Rate” means, with respect to any
Swingline Loan bearing interest at a negotiated rate, the rate per annum agreed
to by the Borrower and the Swingline Lender (such rate not to exceed the Alternate
Base Rate plus the Applicable Margin applicable to Revolving ABR Borrowings) in
accordance with Section 2.10(b) as the interest rate that such Swingline Loan
shall bear.

“Net Income” means, for any period, net income
(net of interest income) for such period of the Borrower and the Subsidiaries,
determined on a consolidated basis in accordance with GAAP.

“Net Proceeds” means, with respect to any
event, (i) the cash proceeds received in respect of such event, including (A)
any cash received in respect of any non-cash proceeds, but only as and when
received, (B) in the case of a casualty, insurance proceeds and (C) in the case
of a condemnation or similar event, condemnation awards and similar payments,
(ii) net of the sum of (A) all fees and expenses paid by the Borrower and the
Subsidiaries to third parties in connection with such event, including, without

 21
 

 

limitation, attorneys’ fees, accountants’ fees,
investment banking fees (including underwriting discounts and commissions and
collection expenses), consulting fees, relocation expenses and other customary
fees and expenses, (B) in the case of a sale, transfer, lease or other
disposition of an asset (including pursuant to a sale and leaseback
transaction), the amount of all payments required to be made by the Borrower
and the Subsidiaries as a result of such event to repay Indebtedness (other
than Indebtedness under the Loan Documents, in respect of the 93⁄4% Senior Notes
(or any Refinancing Indebtedness in respect thereof), the 121⁄4% Senior Notes (or
Refinancing Indebtedness in respect thereof) or any Holding Company Debt (or
Refinancing Indebtedness in respect thereof)) secured by such asset or
otherwise subject to mandatory payment as a result of such event or required in
order to obtain any necessary consent to such transaction, (C) the amount of
all Taxes paid (or reasonably estimated to be payable) by the Borrower and the
Subsidiaries (or by any Person the Tax liability of which is determined by
reference to the income of the Borrower or any of the Subsidiaries),
(D) the amount of any reserves established by the Borrower and the
Subsidiaries to fund contingent liabilities reasonably estimated to be payable,
in each case that are directly attributable to such event (as determined
reasonably and in good faith by a Financial Officer), (E) all contractually
required distributions and other payments made to minority interest holders in
Subsidiaries or joint ventures of the Borrower or any Subsidiary as a result of
such transaction and (F) all payments made with respect to liabilities
associated with the assets that are the subject of such transaction; provided,
however, that with respect to any sale, transfer, lease or other
disposition of an asset (including pursuant to a sale and leaseback transaction
or a casualty or other insured damage or condemnation or similar proceeding) or
any issuance of an Equity Interest, if the Borrower shall deliver a certificate
of a Financial Officer to the Administrative Agent at the time of such sale,
transfer, lease or other disposition or issuance setting forth the Borrower’s
or such Subsidiary’s intent to use or to commit to use the proceeds of such
sale, transfer, lease or other disposition or issuance to replace or repair the
assets that are the subject thereof with, or otherwise purchase, other assets
to be used in the same line of business within 365 days of receipt of such
proceeds and no Event of Default shall have occurred and shall be continuing at
the time of such certificate, then such proceeds shall not constitute Net
Proceeds except to the extent not so used at the end of such 365-day period or
if committed to be so used by the end of such 365-day period, if not so used
within 365 days after the date of such commitment, at which time such proceeds
shall be deemed Net Proceeds.

“93⁄4% Senior Note Indenture” means the
Indenture, dated as of October 1, 1999, made among Insight Midwest, Insight
Capital, Inc. and BNY (as successor to Harris Trust Company of New York), as
Trustee, relating to the 93⁄4% Senior Notes, as supplemented.

“93⁄4% Senior Notes” means the Series A and
Series B 93⁄4% Senior Notes, due 2009, issued by Insight Midwest and Insight
Capital, Inc.

“Newco” has the
meaning assigned to such term in Section 6.11.

“Non-Consenting Lender” has the meaning
assigned to such term in Section 10.2(c).

“Non-Guarantor Subsidiary” means any Subsidiary
of the Borrower that is not a Subsidiary Guarantor.

“Non-US Lender” has the meaning assigned to
such term in Section 3.7(f).

“Notes” means, with respect to each Lender, a
promissory note evidencing such Lender’s Loans payable to such Lender (or, if
required by such Lender, to such Lender and its registered assigns)
substantially in the form of (a) Exhibit B-1, in the case of any A Term Loan,
(b) Exhibit B-2, in the case of any B Term Loan, (c) Exhibit B-3, in the case
of any Revolving Loan, (d) Exhibit B-4, in the case of

 22
 

 

any Swingline Loan or (e) an exhibit attached to the
relevant Additional Term Loan Supplement at the time of delivery thereof, in
the case of any Additional Term Loan.

“Obligations” has the meaning assigned to such
term in the Security Agreement.

“Other Taxes” means any and all current or
future stamp or documentary Taxes or any other excise or property Taxes,
charges or similar levies arising from any payment made hereunder or from the
execution, delivery or enforcement of, or otherwise with respect to, the Loan
Documents.

“Parent” means either (a) Insight
Midwest or (b) following the formation of a Newco pursuant to Section 6.11,
such Newco.

“Parent Loan” means the loan made by Insight
Holdings, in cash, to Insight Midwest in the stated amount of $100,000,000, as
evidenced by the Parent Loan Note.

“Parent Loan Note” means the promissory note,
dated March 28, 2002, made by Insight Midwest and payable to the order of Insight
Holdings, in the stated amount of $100,000,000.

“Partnership Agreement” means the Amended and
Restated Limited Partnership Agreement of the Parent, dated as of January 5,
2001, as amended.

“Participant” has the meaning assigned to such
term in Section 10.4(e).

“PBGC” means the Pension Benefit Guaranty
Corporation referred to and defined in ERISA and any successor entity
performing similar functions.

“Perfection Certificate” means a certificate in
the form of Annex 1 to the Security Agreement or any other form approved by the
Administrative Agent.

“Permitted Acquisition” means any Cable
Television System Acquisition, if (a) no Default has occurred and is
continuing or would result therefrom, (b) immediately after giving effect
thereto the Borrower is in compliance on a Pro Forma Basis with the Financial
Covenants (without giving effect to any Specified Equity Contribution), (c) to
the extent structured as an acquisition of Equity Interests, the Person or
Persons acquired in such Cable Television System Acquisition shall become
Subsidiary Guarantor(s) and, to the extent structured as an acquisition of
assets, the assets so acquired shall be held by Borrower or a Subsidiary
Guarantor and (d) with respect to any acquisition for aggregate
consideration in excess of $100,000,000, the Borrower has delivered to the
Administrative Agent an officer’s certificate to the effect set forth in
clauses (a) and (b) above, together with all relevant financial information for
the Person or assets acquired and reasonably detailed calculations
demonstrating satisfaction of the requirement set forth in clause (b) above.

“Permitted Encumbrances” means:

(a)           Liens
imposed by law for Taxes that are not yet due or are being contested in
compliance with Section 6.4;

(b)           landlords’,
vendors’, carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and
other like Liens imposed by law, arising in the ordinary course of business and
securing obligations that are not overdue by more than 60 days or are being
contested in compliance with Section 6.4;

 23
 

 

(c)           pledges
and deposits made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or
regulations;

(d)           pledges
and deposits to secure the performance of bids, government, trade and other
similar contracts (other than contracts for the payment of money), leases,
subleases, statutory obligations and surety, stay, appeal, indemnity,
performance or other similar bonds or obligations and other obligations of a
like nature, and deposits or pledges in lieu of such bonds or obligations, or
to secure such bonds or obligations, or to secure letters of credit in lieu of
or supporting the payment of such bonds or obligations, in each case in the
ordinary course of business;

(e)           judgment
and attachment liens in respect of judgments that do not constitute an Event of
Default under clause (k) of Article 8;

(f)            easements,
zoning restrictions, rights-of-way and similar encumbrances on, and other
imperfections of title with respect to, real property imposed by law or arising
in the ordinary course of business that do not secure any monetary obligations
and do not materially detract from the value of the affected property or
materially interfere with the ordinary conduct of business of the Borrower and
the Subsidiaries;

(g)           Liens
on the assets of any Subsidiary Guarantor in favor of the Borrower or any other
Subsidiary Guarantor, and Liens on assets of the Borrower in favor of any
Subsidiary Guarantor;

(h)           Liens
on Margin Stock to the extent that a prohibition on such Liens would violate
Regulation U;

(i)            Liens
in favor of collecting or payor banks or securities intermediaries having a
right of setoff, revocation, refund or chargeback with respect to money or
instruments of the Borrower or any Subsidiary thereof on deposit with or in
possession of such bank or in a security account of such security intermediary,
or arising under or pursuant to general banking conditions;

(j)            Liens
representing any interest or title of a licensor, lessor or sublicensor or
sublessor, or a licensee, lessee or sublicensee or sublessee, in the property
subject to any lease, license or sublicense or concession agreement permitted
by this Agreement (other than any property that is the subject of a Sale and Leaseback
Transaction);

(k)           Liens arising from precautionary
Uniform Commercial Code financing statements regarding operating leases;

(l)            (i) receipt of progress payments and
advances from customers in the ordinary course of business to the extent same
creates a Lien on the related inventory and proceeds thereof and (ii) Liens
relating to purchase orders and other agreements entered into with customers or
suppliers of the Borrower or any Subsidiary in the ordinary course of business;

(m)          Liens solely on any cash earnest money
deposits made by the Borrower or any Subsidiary in connection with an
investment permitted by Section 7.4;

(n)           Liens deemed to exist in connection
with investments permitted by Section 7.4(a) that constitute repurchase
obligations;

 24
 

 

(o)           (i) deposits securing liability to
insurance carriers under insurance or self-insurance arrangements in respect of
such obligations and (ii) pledges and deposits securing liability for
reimbursement or indemnification obligations of (including obligations in
respect of letters of credit or bank guarantees for the benefit of) insurance
carriers providing property, casualty, liability, director and officer or other
insurance to the Borrower or any Subsidiary;

(p)           Liens on property subject to sale and
leaseback transactions permitted under Section 7.6 and general intangibles
related thereto;

(q)           Liens securing obligations (other
than obligations representing Indebtedness for money borrowed) under reciprocal
easement or similar agreements entered into in the ordinary course of business
of Borrower and any Subsidiary; and

(r)            Liens arising out of conditional
sale, title retention, consignment or similar arrangements entered into by the
Borrower or any Subsidiary in the ordinary course of business.

“Permitted Holders” means the collective
reference to (a) any of (u) Sponsor, (v) Sidney R. Knafel, (w) Michael S.
Willner, (x) other officers and directors of a Holding Company or Borrower, (y)
Comcast and (z) in each case in this clause (a) any of their Affiliates (but
excluding, in the case of clauses (v) and (y) any portfolio companies, provided
that in no case shall any Holding Company whose assets consist, directly or
indirectly, solely of the Equity Interests of the Borrower, cash and Cash Equivalents,
or contracts or other rights related to its investment in the Borrower, be
considered such a portfolio company), (b) any investment fund or vehicle
managed, sponsored or advised by any of the Persons described in clause (a)(u)
and (a)(y) above, and any Affiliate of or successor to any such investment fund
or vehicle, (c) with respect to any Person referred in clause (a)(v) or (a)(w),
any other member of such Person’s Family Group, (d) any corporation,
partnership or other entity, the beneficiaries, stockholders, partners, owners
or Persons holding a controlling interest of which consist solely of one or
more Persons referred to in the preceding clause (a) or (c), and (e) any Person
acting in the capacity of an underwriter in connection with a public or private
offering of Equity Interests of Parent or any Holding Company.  For purposes of this defined term, “Family
Group” means, with respect to any natural person, (a) such person’s spouse
or former spouse, (b) any lineal ancestor or descendant of such person, (c) any
trust or trusts in which any of the foregoing, individually or collectively,
has, directly or indirectly, at least 51% of the beneficial interest and (d)
the estate of any of the foregoing (and his executor(s) or administrator(s)).

“Person” means any natural person, corporation,
limited liability company, trust, joint venture, association, company,
partnership, Governmental Authority or other entity.

“Plan” means any employee pension benefit plan
(other than a Multiemployer Plan) subject to the provisions of Title IV of
ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of
which the Borrower, any Subsidiary or any ERISA Affiliate is (or, if such plan
were terminated, would under Section 4069 of ERISA be deemed to be) an “employer”
as defined in Section 3(5) of ERISA.

“Platform” shall have the meaning assigned to
Section 6.1.

“Post Exit Borrower” has the meaning assigned
to such term in Section 7.14(d).

“Prepayment Event” means, without duplication:

(a)           any
sale, transfer, lease or other disposition (including pursuant to a sale and
leaseback transaction) of any property or asset of the Borrower or any
Subsidiary, other than

 25
 

 

(i) Dispositions
described in paragraphs (a), (b), (c), (d), (e), (g), (h), (i), (j) and (l) of
Section 7.5 and (ii) other dispositions resulting in aggregate Net Proceeds not
exceeding $5,000,000 during any fiscal year of the Borrower;

(b)           any
casualty or other insured damage to, or any taking under power of eminent
domain or by condemnation or similar proceeding of, any property or asset of
the Borrower or any Subsidiary, other than casualties, insured damage or
takings resulting in aggregate Net Proceeds not exceeding $5,000,000 during any
fiscal year; and

(c)           any
Debt Issuance.

“Prime Rate” means the rate of interest per
annum publicly announced from time to time by BNY as its prime commercial
lending rate at its principal office in New York City; each change in the Prime
Rate being effective from and including the date such change is publicly
announced as being effective.  The Prime
Rate is not intended to be lowest rate of interest charged by BNY in connection
with extensions of credit to borrowers.

“Prior Asset Transfer” has the meaning assigned
to such term in Section 7.5(m)(ii).

“Property” means any right or interest in or to
property of any kind whatsoever, whether real, personal or mixed and whether
tangible or intangible, including, without limitation, Equity Interests.

“Pro Forma Basis” means, with respect to any
calculation of any of the Financial Covenants or Adjusted Annualized Consolidated
Operating Cash Flow, that such calculation shall give pro forma effect to the
Transactions, any Permitted Acquisition, the Exit Event, all issuances,
incurrences or assumptions or repayments of Indebtedness (and the application
of proceeds thereof), and all sales, transfers or other dispositions of any
Subsidiary, line of business or division or other asset dispositions or series
of related asset dispositions in excess of $15,000,000 (any of the foregoing,
an “Applicable Transaction”) in each case that have occurred during the
fiscal quarter of the Borrower most recently ended with
respect to which a
delivery requirement for a compliance certificate pursuant to Section 6.1(c)
has arisen or, prior to the first due date for such a compliance certificate
hereunder, the most recently ended fiscal quarter of Borrower (or, if any of such Financial Covenants
are being calculated to determine the permissibility of any transaction
hereunder (a “Tested Transaction”), giving effect to the Applicable
Transactions occurring during such fiscal quarter, after the end of such fiscal
quarter and also giving effect to such Tested Transaction) as if the Applicable
Transactions and/or such Tested Transaction had occurred on the first day of
such fiscal quarter, and, with respect to any calculation of Adjusted
Annualized Consolidated Operating Cash Flow to determine the permissibility of
any Permitted Acquisition or the Exit Event, calculated on a pro forma basis
giving effect to any adjustments for cost savings or synergies relating thereto
to the extent such adjustments are (x) made in accordance with Regulation S-X
or (y) to reflect operating expense reductions that have been realized or for
which the steps necessary for realization have been taken or are reasonably
expected to be taken within 12 months following the consummation of such
Permitted Acquisition or the Exit Event, as determined in good faith by the
Borrower, including, but not limited to, the execution or termination of any
contracts, reductions of costs related to duplicative administrative functions,
the termination of any personnel or the closing (or the approval by the Board
of Directors of the closing) of any facility, as applicable; provided
that in any case such adjustments are set forth in a certificate signed by a
Financial Officer and delivered to the Administrative Agent, which certificate
shall state (a) the nature and amount of each of such adjustments and (b) that
each of such adjustments are based on the reasonable good faith beliefs of the
Borrower’s chief financial officer; provided  further that any
such adjustments shall be without duplication for cost savings, synergies or
expense reductions actually realized during such period and included in such
Adjusted Annualized Consolidated Operating Cash Flow; provided  further
that in the case of the Exit Event, such calculation of Adjusted Annualized Consolidated

 26
 

 

Operating Cash Flow shall include operating expense
increases for the Borrower and the Subsidiaries that the Borrower determines in
good faith have occurred or will occur within 12 months following the
consummation of the Exit Event (as set forth in a certificate of a Financial
Officer).  If the Financial Covenants or
Adjusted Annualized Consolidated Operating Cash Flow are being tested to
determine the permissibility of any transaction hereunder, the date as of which
the Financial Covenants or Adjusted Annualized Consolidated Operating Cash Flow
shall be required to be tested shall be as of the last day of the fiscal quarter
of the Borrower most recently ended with respect to which a delivery requirement for a
compliance certificate pursuant to Section 6.1(c) has arisen (it being
understood that if such transaction is to occur prior to the due date for the
first such compliance certificate required to be delivered hereunder (x) the
Financial Covenants shall be required to be tested as of the most recently
ended fiscal quarter of Borrower for which financial statements are available
and (y) the levels for the Financial Covenants applicable to the period ending
December 31, 2006 shall apply for determining the satisfaction of the Financial
Covenants with respect to such Tested Transaction).

“Proposed Change” has the meaning assigned to
such term in Section 10.2(c).

“Public Lender” shall have the meaning assigned
to such term in Section 6.1.

“Qualified Equity” means any Equity Interests
that are not Disqualified Equity.

“Qualifying IPO” means the issuance by Parent
or another Holding Company of its common Equity Interests in an underwritten
primary public offering (other than a public offering pursuant to a
registration statement on Form S-8) pursuant to an effective registration
statement filed with the SEC in accordance with the Securities Act of 1933
(whether alone or in connection with a secondary public offering) generating
gross cash proceeds of $150,000,000 to the Parent or such Holding Company.

“Redemption” means the redemption of all of the
outstanding 101⁄2% Senior Notes in the amount of $630,000,000 and $185,000,000 of
the 93⁄4% Senior Notes.

“Refinanced Term Loan” has the meaning assigned
to such term in Section 10.2(e).

“Refinancing” has the meaning assigned to such
term in the definition of “Transactions”.

“Refinancing Indebtedness” means, with respect
to any Indebtedness, any Indebtedness that renews, refinances or replaces such
Indebtedness; provided that (1) the only obligors under such renewal,
refinancing or replacement Indebtedness are Persons that were obligors under
the Indebtedness being renewed, refinanced or replaced (but with respect to
renewals, refinancings or replacements of (x) the 93⁄4% Senior Notes, such
obligors on such renewal, refinancing or replacement Indebtedness may include
any Holding Company and (y) the 121⁄4% Senior Notes, such obligors on such renewal,
refinancing or replacement Indebtedness may include any Holding Company other
than Parent), (2) if the Indebtedness being renewed, refinanced or replaced is
subordinated in right of payment to the Obligations, such renewal, refinancing
or replacement Indebtedness shall be subordinated in right of payment to the
Obligations on terms at least as favorable to the Lenders as those contained in
the documentation governing the Indebtedness being renewed, refinanced or
replaced, (3) such renewal, refinancing or replacement shall not increase the
principal amount of such Indebtedness, without giving effect to any accrued
interest, premiums, fees or expenses payable in connection with such renewal,
refinancing or replacement, (4) such renewal, refinancing or replacement
Indebtedness has a final stated maturity date equal to or later than the final
stated maturity date of the Indebtedness being renewed, refinanced or replaced
and (5) such renewal, refinancing or replacement Indebtedness has a Weighted
Average Life to Maturity equal to or longer than the Weighted Average Life to
Maturity of the Indebtedness being renewed, refinanced or replaced.

 27
 

 

“Register” has the meaning assigned to such
term in Section 10.4(c).

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

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

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

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

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

“Replacement Term Loans” has the meaning
assigned to such term in Section 10.2(e).

“Required Lenders” means, at any time, Lenders
having Total Credit Exposures representing greater than 50% of the sum of the
aggregate Total Credit Exposures of all Lenders.

“Responsible Officer” means any of the chief
executive officer, president, chief financial officer (or similar title) or
treasurer (or similar title) of the Borrower.

“Restricted Payment” means, as to any Person,
(i) any dividend or other distribution by such Person (whether in cash,
securities or other property) with respect to any Equity Interests of such
Person, (ii) any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of any such
shares or any option, warrant or other right to acquire any such Equity Interests
and (iii) any payment of principal or interest or any purchase, redemption,
retirement, acquisition or defeasance of or with respect to any Indebtedness of
such Person which is subordinated to the payment of the Obligations.

“Revolving Commitment” means, with respect to
each Lender having a Revolving Commitment, the commitment of such Lender to
make Revolving Loans and to acquire participations in Letters of Credit and
Swingline Loans hereunder, in an aggregate outstanding amount not exceeding the
amount of such Lender’s Revolving Commitment as set forth on Schedule 1.1A,
in the initial Revolving Increase Supplement executed and delivered by such
Lender, the Borrower and the Administrative Agent, or in the Assignment and
Acceptance pursuant to which such Lender shall have assumed its Revolving Commitment,
as applicable, as such commitment may be reduced or increased from time to time
pursuant to Section 2.5 or pursuant to assignments by or to such Lender
pursuant to Section 10.4.  The amount of
each Lender’s Revolving Commitment on the Closing Date is set forth on such Schedule 1.1A.  The aggregate amount of the Revolving Commitments
on the Closing Date is $260,000,000.

“Revolving Credit Exposure” means, with respect
to any Lender at any time, the sum of the aggregate outstanding principal
amount of such Lender’s Revolving Loans plus its LC Exposure and Swingline
Exposure at such time.

 28

 

“Revolving Increase Supplement” means an
increase supplement in substantially the form of Exhibit E.

“Revolving Lender” means a Lender with a
Revolving Commitment.

“Revolving Loan” means a Loan referred to in
Section 2.1(a) and made pursuant to Section 2.4.

“Revolving Maturity Date” means October 6,
2012, and if such date is not a Business Day, the next succeeding Business Day.

“SEC” means the Securities and Exchange
Commission, or any Governmental Authority succeeding to any of its principal
functions.

“Secured Parties” means the “Secured Parties”
as defined in the Security Agreement.

“Security Agreement” means the Security
Agreement, dated as of the Closing Date, among the Borrower, Insight Midwest,
the Subsidiary Guarantors party thereto and the Administrative Agent, for the
benefit of the Secured Parties.

“Security Documents” means the Security
Agreement and each other security agreement, instrument or other document
executed or delivered pursuant to Sections 6.10 or 6.11 or Section 5(e) or 23
of the Security Agreement to secure any of the Obligations.

“Specified Equity Contribution” has the meaning
assigned to such term in the definition of “Consolidated Operating Cash Flow”.

“Sponsor” means CP III Coinvestment, L.P.,
Carlyle Partners III Telecommunications, L.P., Carlyle Partners IV
Telecommunications, L.P. and CP IV Coinvestment, L.P. (but excluding any
portfolio companies of the foregoing; provided that in no case shall any
Holding Company whose assets consist solely of the Equity Interests of the
Borrower, cash and Cash Equivalents, or contracts or other rights related to
its investment in the Borrower, be considered such a portfolio company).

“State Law” means any state law pertaining to
or regulating intrastate and local telecommunications services, or any
successor statute or statutes thereto, and all State Regulations pursuant to
such State Law.

“State PUC” means any state public utility
commission or any other state commission, agency, department board or authority
with responsibility for regulating intrastate and local telecommunications
services.

“State Regulations” means all rules,
regulations, written policies, orders and decisions of any State PUC.

“Statutory Reserve Rate” means a fraction
(expressed as a decimal), the numerator of which is the number one and the
denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or
supplemental reserves) expressed as a decimal established by the Board to which
the Administrative Agent is subject for eurocurrency funding (currently
referred to as “Eurocurrency Liabilities” in Regulation D).  Such reserve percentages shall include those
imposed pursuant to Regulation D. 
Eurodollar Loans shall be deemed to constitute eurocurrency funding and
to be subject to such reserve requirements without benefit of or credit

 29
 

 

for proration, exemptions or offsets that may be
available from time to time to any Lender under Regulation D or any comparable
regulation.  The Statutory Reserve Rate
shall be adjusted automatically on and as of the effective date of any change
in any reserve percentage.

“Subject Asset Transfer” has the meaning
assigned to such term in Section 7.5(m)(ii).

“subsidiary” means, with respect to any Person
(the “parent”) at any date, any corporation, limited liability company,
partnership, association or other entity the accounts of which would be
consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP
as of such date, as well as any other corporation, limited liability company,
partnership, association or other entity of which securities or other ownership
interests representing more than 50% of the equity or more than 50% of the ordinary
voting power is or, in the case of a partnership, more than 50% of the general
partnership interests are, as of such date, owned, controlled or held by the
parent or one or more subsidiaries of the parent.

“Subsidiary” means any subsidiary of the Borrower.

“Subsidiary Guarantor” means (a) Insight
Communications of Central Ohio, LLC, Coaxial Communications of Central Ohio,
Inc., Insight Indiana, Insight Communications of Kentucky, L.P., Insight
Kentucky, Insight Kentucky Partners I, L.P., Insight Phone of Ohio, LLC,
Insight Phone of Illinois, LLC, Insight Phone of Indiana, LLC and Insight Phone
of Kentucky, LLC and (b) any other Subsidiary that executes and delivers the
Security Documents and the Guarantee Agreement, in each case in accordance with
Sections 6.10 and 6.11 of this Agreement.

“Swingline Exposure” means, at any time, the
aggregate principal amount of all Swingline Loans outstanding at such
time.  The Swingline Exposure of any
Lender at any time shall be its Applicable Percentage of the total principal
amount of Swingline Loans outstanding at such time.

“Swingline Interest Period” means, subject to
the provisions of Section 2.6(a), with respect to any Swingline Loan requested
by the Borrower, the period commencing on the date of Borrowing with respect to
such Swingline Loan and ending not in excess of ten days thereafter, as
selected by the Borrower in its irrevocable Borrowing Request, provided,
however, that (i) if any Swingline Interest Period would otherwise end on a day
that is not a Business Day, such Swingline Interest Period shall be extended to
the next succeeding Business Day, and (ii) the Borrower shall select Swingline
Interest Periods so as not to have more than three different Swingline Interest
Periods outstanding at any one time for all Swingline Loans.

“Swingline Lender” means The Bank of New York,
in its capacity as lender of Swingline Loans hereunder.

“Swingline Loan” means a Loan made pursuant to
Section 2.10.

“Taxes” means any and all current or future
taxes, levies, imposts, duties, deductions, charges or withholdings now or
hereafter imposed, levied, collected, withheld or assessed by any Governmental
Authority including any interest, additions to, tax or penalties applicable
thereto.

“TCI” means TCI of Indiana Holdings, LLC, a
Colorado limited liability company.

“TCI Exit Person” means any Person that is (x)
TCI, (y) any Affiliate of TCI or (z) a designee of TCI, in each case to the
extent such Person is distributed assets that are to be allocated to TCI or

 30
 

 

any Person or Persons that succeed to any or all of
the rights of TCI under the Partnership Agreement in the Exit Event.

“101⁄2% Senior Note
Indenture” means the Indenture, dated as of November 6, 2000, made among
Insight Midwest, Insight Capital, Inc. and The Bank of New York, as Trustee,
relating to the 101⁄2% Senior Notes.

“101⁄2% Senior Notes” means the Series A and
Series B 101⁄2% Senior Notes, due 2010, issued by Insight Midwest and Insight
Capital, Inc.

“Term Loans” means the A Term Loans, the B Term
Loans and the Additional Term Loans, if any.

“Tested Transactions” has the meaning
assigned to such term in the defined term “Pro Forma Basis”.

“Total Credit Exposure” means, with respect to
any Lender at any time, (a) prior to the earlier to occur of the first
Borrowing and the issuance of the first Letter of Credit, the sum of such
Lender’s Revolving Commitment, A Term Commitment and B Term Commitment, and (b)
at all other times, the sum of such Lender’s Revolving Credit Exposure,
outstanding Term Loans and unused Revolving Commitment.

“Transactions” means (i) the execution and
delivery by each Loan Party of each Loan Document to which it is a party on the
Closing Date, (ii) the initial borrowing of the Loans and the issuance of any
Letters of Credit on the Closing Date, (iii) the repayment and termination
of the Existing Credit Agreement on the Closing Date and the substantially
concurrent release of all collateral and guarantees granted thereunder (the “Refinancing”),
(iv) from and after the date it actually occurs, the Redemption, and (v) the
payment of premiums, fees, interest, commissions and expenses in connection
with each of the foregoing.

“121⁄4% Senior Note Indenture” means the
Indenture, dated as of February 6, 2001, made between Insight Holdings and
The Bank of New York, as Trustee, relating to the 121⁄4% Senior Notes.

“121⁄4% Senior Notes” means the Series 121⁄4%
Senior Discount Notes, due 2011, issued by Insight Holdings.

“Type”, when used in reference to any Loan or
Borrowing, refers to whether the rate of interest on such Loan, or on the Loans
comprising such Borrowing, is determined by reference to, in the case of (i) a
Revolving Borrowing, an A Term Borrowing, a B Term Borrowing or an Additional
Term Loan Borrowing, the Adjusted LIBO Rate or the Alternate Base Rate or (ii)
a Swingline Borrowing, a Borrowing at the Alternate Base Rate or the Negotiated
Rate.

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

“Wholly-Owned Subsidiary” means any Subsidiary
the capital stock (or other similar interest) of which is 100% owned, directly
or indirectly, by the Borrower, irrespective of whether or not

 31
 

 

Insight Kentucky Capital, LLC, which is currently
owned 50% by Insight LP and 50% (directly or indirectly) by Comcast, holds a
0.001% limited partnership interest in such Subsidiary or any direct or indirect
parent company of such Subsidiary.

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

Section 1.2.                                   Classification
of Loans and Borrowings

For purposes of this Agreement, Loans may be
classified and referred to by Class (e.g., a “Revolving Loan”) or by
Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar
Revolving Loan”).  Borrowings may also be
classified and referred to by Class (e.g., a “Revolving Borrowing”) or
by Type (e.g., a “Eurodollar Borrowing”) or by Class and Type (e.g.,
a “Eurodollar Revolving Borrowing”).

Section 1.3.                                   Terms
Generally

The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have
the same meaning and effect as the word “shall”.  Unless the context requires otherwise, (i)
any definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified, (ii)
any definition of or reference to any law shall be construed as referring to
such law as from time to time amended and any successor thereto and the rules
and regulations promulgated from time to time thereunder, (iii) any reference
herein to any Person shall be construed to include such Person’s successors and
assigns, (iv) the words “herein”, “hereof” and “hereunder”, and words of
similar import, shall be construed to refer to this Agreement in its entirety
and not to any particular provision hereof, (v) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, this Agreement and
(vi) the words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, securities, accounts and contract rights.  Any reference to an “applicable Lender” shall
mean (i) in the case of Revolving Borrowings, Swingline Loans and Letters of
Credit, Lenders having a Revolving Commitment, (ii) in the case of A Term
Borrowings, Lenders having an A Term Commitment, (iii) in the case of B Term
Borrowings, Lenders having a B Term Commitment, and (iv) in the case of
Additional Term Loan Borrowings, Lenders having Additional Term Loan Commitments.

Section 1.4.                                   Accounting
Terms; GAAP

Except as otherwise expressly provided herein, all
terms of an accounting or financial nature shall be construed in accordance
with GAAP, as in effect from time to time, provided that, if the Borrower
notifies the Administrative Agent that the Borrower requests an amendment to
any provision hereof to eliminate the effect of any change occurring after the
Closing Date in GAAP or in the application thereof on the operation of such
provision (or if the Administrative Agent notifies the Borrower that the
Required Lenders request an amendment to any provision hereof for such
purpose), regardless of whether any such notice is given before or after such
change in GAAP or in the application thereof, then such provision shall be
interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been
withdrawn or such provision amended in

 32
 

 

accordance herewith. 
Unless the context otherwise requires, any reference to a fiscal period
shall refer to the relevant fiscal period of the Borrower.

ARTICLE 2

THE CREDITS

Section 2.1.                                   Commitments
and Loans

(a)                                  Revolving
Loans.  Subject to the terms and
conditions set forth herein, each Lender having a Revolving Commitment agrees
to make Revolving Loans to the Borrower in dollars from time to time during the
Availability Period in an aggregate principal amount that will not result in
such Lender’s Revolving Credit Exposure exceeding such Lender’s Revolving
Commitment.  Within the foregoing limits
and subject to the terms and conditions set forth herein, the Borrower may
borrow, prepay and reborrow Revolving Loans. 
Notwithstanding the foregoing, prior to the later of (a) the earliest to
occur of (x) the A Delayed Draw Funding Date, (y) the termination of the A
Delayed Draw Term Loan Commitments pursuant to Section 2.5(c) and (z) the A
Delayed Draw Expiration Date and (b) the earliest to occur of (x) the B Delayed
Draw Funding Date, (y) the termination of the B Delayed Draw Term Loan
Commitments pursuant to Section 2.5(c) and (z) the B Delayed Draw Expiration
Date, not more than $160,000,000 of Revolving Loan Borrowings or Swingline
Loans may be outstanding.

(b)                                 A
Term Loans.  Subject to the terms and
conditions set forth herein, each Lender having an A Term Commitment severally
agrees (i) to make an A Initial Term Loan to the Borrower in dollars on the
Closing Date in a principal amount requested by the Borrower not to exceed such
Lender’s A Initial Term Loan Commitment and (ii) to make an A Delayed Draw Term
Loan to the Borrower in dollars on the A Delayed Draw Funding Date in a
principal amount requested by the Borrower not to exceed such Lender’s
A Delayed Draw Term Loan Commitment. 
Any remaining unutilized amount of the A Initial Term Loan Commitment or
the A Delayed Draw Term Loan Commitment shall thereafter cease to be
available.  A Term Loans which are
prepaid or repaid, in whole or in part, may not be reborrowed.

(c)                                  B
Term Loans.  Subject to the terms and
conditions set forth herein, each Lender having a B Term Commitment severally
agrees (i) to make a B Initial Term Loan to the Borrower in dollars on the
Closing Date in a principal amount requested by the Borrower not to exceed such
Lender’s B Initial Term Loan Commitment and (ii) to make an B Delayed Draw Term
Loan to the Borrower in dollars on the B Delayed Draw Funding Date in a
principal amount requested by the Borrower not to exceed such Lender’s B
Delayed Draw Term Loan Commitment.  Any
remaining unutilized amount of the B Initial Term Loan Commitment or the B
Delayed Draw Term Loan Commitment shall thereafter cease to be available.  B Term Loans which are prepaid or repaid, in
whole or in part, may not be reborrowed.

(d)                                 Additional
Term Loan Commitments.  The Borrower
may, at any time at its sole cost, expense and effort, request any one or more
of the Lenders, an Affiliate of a Lender or an Approved Fund of a Lender (the
decision to be within the sole and absolute discretion of such Lender,
Affiliate or Approved Fund), or any other Person reasonably satisfactory to the
Administrative Agent, to commit to make an Additional Term Loan, by submitting
an Additional Term Loan Supplement duly executed by the Borrower and each such
Lender, Affiliate, Approved Fund or other Person, as the case may be, to the
Administrative Agent.  If such an
Additional Term Loan Supplement is in all respects reasonably satisfactory to
the Administrative Agent, the Administrative Agent shall execute such
Additional Term Loan Supplement and deliver a copy thereof to the Borrower and
each such Lender, Affiliate, Approved Fund or other Person, as the case may
be.  Upon execution and delivery of such
Additional Term Loan Supplement by the Administrative Agent, (i) in the case of
each such Lender, such Lender’s Additional Term Loan Commitment with respect
thereto shall be in the amount set forth in such Additional Term Loan

 33
 

 

Supplement, and (ii) in the case of each such Affiliate, Approved Fund
or other Person, such Affiliate, Approved Fund or other Person shall thereupon
become a party hereto and shall for all purposes of the Loan Documents be
deemed a “Lender” having an Additional Term Loan Commitment as set forth in
such Additional Term Loan Supplement; provided, however, that:

(A)                              immediately
after giving effect thereto, the aggregate Additional Term Loan Commitments
plus the sum of all increases in the aggregate Revolving Commitments made
pursuant to Section 2.5(d), if any, shall not exceed $500,000,000;

(B)                                each
such request for Additional Term Loan Commitments shall be in an amount not
less than $25,000,000 or such amount plus an integral multiple of $5,000,000;

(C)                                the
rate of interest per annum applicable to each series of Additional Term Loans
(which, for such purposes only, shall be deemed to include all upfront or
similar fees or original issue discount payable to all Lenders in the primary
syndicate providing such Additional Term Loans, but exclusive of any
arrangement, structuring or other fees payable in connection therewith that are
not shared with all such Lenders) determined as of the date of the making of
such Additional Term Loans shall not be greater than 0.50% above the interest
rate then in effect for the B Term Loans (which, for such purposes only, shall
be deemed to include all upfront or similar fees or original issue discount
paid to all Lenders in the primary syndicate of the B Term Loans, as such, but
exclusive of any arrangement, structuring or other fees payable in connection
therewith that are not shared with all such Lenders); provided that if
such rate of interest per annum applicable to each series of Additional Term
Loans is greater than 0.50% above such interest rate then in effect for the B
Term Loans, the definition of “Applicable Margin” shall be automatically
amended with respect to the A Term Loans and the B Term Loans so that such rate
of interest per annum applicable to each series of Additional Term Loans is not
greater than 0.50% above such interest rate in effect for the A Term Loans and
the B Term Loans, as so amended;

(D)                               each
such Affiliate, Approved Fund or other Person shall have delivered to the
Administrative Agent and the Borrower all forms, if any, that are required to
be delivered by such Affiliate, Approved Fund or other Person pursuant to Section
3.7;

(E)                                 the
Borrower shall have delivered to the Administrative Agent for further
distribution to each Lender a certificate of a Financial Officer demonstrating
compliance on a Pro Forma Basis with the Financial Covenants through the applicable
Additional Term Loan Maturity Date and the Administrative Agent shall have
received such customary certificates, legal opinions and other items as it
shall reasonably request in connection with such Additional Term Loan
Commitments;

(F)                                 the
Additional Term Loans shall have a final maturity date equal to or later than
the final maturity date of, and has a Weighted Average Life to Maturity equal
to or greater than the Weighted Average Life to Maturity of, the B Term Loans;
and

(G)                                after
giving effect to such Additional Term Loans, there shall not have occurred and
be continuing any Default or Event of Default.

(e)                                  Additional
Term Loans.  Subject to the terms and
conditions hereof and the terms and conditions, if any, set forth in the
applicable Additional Term Loan Supplement, each Lender having an Additional
Term Loan Commitment related thereto severally agrees to make a term loan (each
an

 34
 

 

“Additional Term Loan” and, collectively with the Additional
Term Loan of each other Lender, the “Additional Term Loans”) to the
Borrower on the Additional Term Loan Borrowing Date referred to therein in a
principal amount equal to such Lender’s Additional Term Loan Commitment
reflected in such Additional Term Loan Supplement.  On and as of the Closing Date no Lender has
an Additional Term Loan Commitment.

(f)                                    Treatment
of Additional Term Loans.  Unless and
to the extent expressly provided to the contrary in an Effective Additional
Term Loan Supplement, the terms of Sections 2.7(a), (b) and (c), and of the
last paragraph of the defined term “Applicable Margin”, in each case applicable
to B Term Loans shall apply mutatis  mutandis to the
Additional Term Loans made pursuant to such Effective Additional Term Loan
Supplement.

Section 2.2.                                   Loans
and Borrowings

(a)                                  Each
Revolving Loan shall be made as part of a Borrowing consisting of Revolving
Loans made by the applicable Lenders ratably in accordance with their
respective Revolving Commitments, and each A Term Loan, B Term Loan and
Additional Term Loan shall be made as part of a Borrowing consisting of A Term
Loans, B Term Loans or Additional Term Loans, as applicable, made by the
applicable Lenders in accordance with their respective A Term Commitments, B
Term Commitments or related Additional Term Loan Commitments, as
applicable.  The failure of any
applicable Lender to make any Loan required to be made by it shall not relieve
any other Lender of its obligations hereunder, provided that the
Revolving Commitments, A Term Commitments, B Term Commitments and Additional
Term Loan Commitments of the applicable Lenders are several, and no Lender
shall be responsible for any other Lender’s failure to make Loans as required.

(b)                                 Subject
to Section 3.4, each Borrowing shall be comprised entirely of (i) Revolving
Loans, A Term Loans, B Term Loans, Additional Term Loans or Swingline Loans, as
applicable, and (ii) ABR Loans or Eurodollar Loans, as applicable, in each case
as the Borrower may request in accordance herewith; provided that each
Swingline Loan shall be an ABR Loan or a Loan that accrues interest at the
Negotiated Rate.  Each applicable Lender
at its option may make any Eurodollar Loan by causing any domestic or foreign
branch or Affiliate of such Lender to make such Loan, provided that any
exercise of such option shall not (i) affect the obligation of the
Borrower to repay such Loan in accordance with the terms of this Agreement or
(ii) increase any cost or expense to the Borrower or impose any additional
withholding requirement on the Borrower.

(c)                                  At
the commencement of each Interest Period for any Eurodollar Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of
$1,000,000 and not less than $5,000,000. 
At the time that each ABR Borrowing is made, such Borrowing shall be in
an aggregate amount that is an integral multiple of $500,000 and not less than
$3,000,000, provided that an ABR Revolving Borrowing may be in an
aggregate amount that is equal to the entire unused balance of the total
Revolving Commitments, in an aggregate amount that is required to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.9(e) or in an
aggregate amount that is required to finance the reimbursement of a Swingline
Loan as contemplated by Section 2.10(c) or the entire aggregate outstanding
principal amount of the A Term Loans, the B Term Loans or Additional Term
Loans, as applicable.  Each Swingline
Loan shall be in an amount that is an integral multiple of $50,000 and not less
than $250,000.  Borrowings of more than
one Type may be outstanding at the same time, provided that there shall
not at any time be more than a total of 20 Eurodollar Borrowings outstanding.

(d)                                 Notwithstanding
any other provision of this Agreement, the Borrower shall not be entitled to request,
or to elect to convert or continue, any Borrowing if the Interest Period
requested with respect thereto would end after (i) the Revolving Maturity Date,
in the case of Revolving Loans, (ii)

 35
 

 

the A Term Maturity Date, in the case of A Term Loans, (iii) the B Term
Maturity Date, in the case of B Term Loans or (iv) the applicable Additional
Term Loan Maturity Date, in the case of Additional Term Loans.

Section 2.3.                                   Requests
for Borrowings

(a)                                  To
request a Borrowing, the Borrower shall notify the Administrative Agent of such
request by telephone (i) in the case of a Eurodollar Borrowing, not later than
11:00 a.m., New York City time, three Business Days before the date of the
proposed Borrowing or (ii) in the case of an ABR Borrowing, not later than
11:00 a.m., New York City time, on the date of the proposed Borrowing.  Each such telephonic Borrowing Request shall
be irrevocable and shall be confirmed promptly by hand delivery, e-mail or
facsimile to the Administrative Agent of a written Borrowing Request in a form
approved by the Administrative Agent and signed by the Borrower.  Each such telephonic and written Borrowing Request
shall specify the following information in compliance with Section 2.2:

(i)                                     the
aggregate amount of the requested Borrowing;

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

(iii)                               whether
such Borrowing is to be a Revolving Borrowing, an A Term Borrowing, a B Term
Borrowing or an Additional Term Loan Borrowing;

(iv)                              whether
such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

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

(vi)                              the
location and number of the Borrower’s account to which funds are to be disbursed,
which shall comply with the requirements of Section 2.4.

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

Section 2.4.                                   Funding
of Borrowings

(a)                                  Each
Lender shall make each Loan to be made by it hereunder on the proposed date
thereof by wire transfer of immediately available funds by 12:00 noon, New York
City time, to the account of the Administrative Agent most recently designated
by it for such purpose by notice to the Lenders; provided that Swingline
Loans shall be made as provided in Section 2.10.  Subject to Section 5.2, the Administrative
Agent will make such Loans available to the Borrower by promptly crediting or
otherwise transferring the amounts so received, in like funds, to an account of
the Borrower maintained with the Administrative Agent and designated by the
Borrower in the applicable Borrowing Request, provided that ABR Revolving
Loans made to finance the reimbursement of an LC Disbursement as provided in
Section 2.9(e) shall be remitted by the Administrative Agent to the applicable
Issuing Bank.  It is understood that each
Lender with a B Initial Term Loan Commitment that also has outstanding prior to
the Closing Date B Term Loans (as defined in the Existing Credit Agreement)
under the Existing Credit Agreement may satisfy its obligation to fund B
Initial Term Loans pursuant to this Section 2.4 by executing

 36
 

 

a Lender Authorization in which such Lender agrees to terminate the
Loan Parties’ (as defined in the Existing Credit Agreement) obligations with
respect to such B Term Loans (as defined in the Existing Credit Agreement)
(other than obligations which, pursuant to the terms of the Existing Credit
Agreement, expressly survive the repayment thereof).  No Lender shall be relieved of an obligation
to fund B Delayed Draw Term Loans as a result of the preceding sentence.

(b)                                 Unless
the Administrative Agent shall have received notice from a Lender prior to
11:30 a.m., New York City time, on the date of any Borrowing that such Lender
will not make available to the Administrative Agent such Lender’s share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
or paragraph (e) of Section 2.9 and may, in reliance upon such assumption, make
available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact
made its share of the applicable Borrowing available to the Administrative
Agent, then the applicable Lender agrees to pay to the Administrative Agent
forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to the Borrower
to but excluding the date of payment to the Administrative Agent, at the
greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation.  If such Lender pays such
amount to the Administrative Agent, then such amount shall constitute such
Lender’s Loan included in such Borrowing. 
If such Lender’s share of such Borrowing is not made available to the
Administrative Agent by such Lender within three Business Days after the date
of such Borrowing, the Administrative Agent shall give notice of such fact to
the Borrower and the Administrative Agent shall also be entitled to recover
such amount with interest thereon at the rate per annum otherwise applicable to
such Borrowing, on demand, from the Borrower. 
Nothing herein shall be deemed to limit the rights of the Administrative
Agent or the Borrower against any Defaulting Lender.

Section 2.5.                                   Termination,
Reduction and Increase of Commitments

(a)                                  Unless
previously terminated, (i)(A) the A Initial Term Loan Commitments shall
terminate at 5:00 p.m., New York City time, on the Closing Date, (B) the A
Delayed Draw Term Loan Commitments shall terminate at 5:00 p.m., New York City
time, on the earliest of (x) the A Delayed Draw Funding Date, (y) termination
of the A Delayed Draw Term Loan Commitments pursuant to clause (b)(ii) below
and (z) the A Delayed Draw Expiration Date, (ii)(A) the B Initial Term Loan
Commitments shall terminate at 5:00 p.m., New York City time, on the Closing
Date, (B) the B Delayed Draw Term Loan Commitments shall terminate at 5:00
p.m., New York City time, on the earliest of (x) the B Delayed Draw Funding
Date, (y) termination of the B Delayed Draw Term Loan Commitments pursuant to
clause (b)(ii) below and (z) the B Delayed Draw Expiration Date and (iii) the
Revolving Commitments shall terminate on the Revolving Maturity Date.

(b)                                 (i)  The Borrower may at any time terminate, or
from time to time reduce, the Revolving Commitments, provided that (i)
the Borrower shall not terminate or reduce the Revolving Commitments if, after
giving effect to any concurrent prepayment of the Revolving Loans in accordance
with Section 2.7, the sum of the Revolving Credit Exposures would exceed the
total Revolving Commitments, and (ii) each such reduction shall be in an amount
that is an integral multiple of $1,000,000 and not less than $5,000,000.

 (ii)                              The Borrower may at any time terminate,
or from time to time reduce, the A Delayed Draw Term Loan Commitments and the B
Delayed Draw Term Loan Commitments.

(c)                                  The
Borrower shall notify the Administrative Agent of any election to terminate or
reduce the Revolving Commitments, A Delayed Draw Term Loan Commitments or B
Delayed Draw Term Loan Commitments under paragraph (b) of this Section at least
three Business Days prior to the

 37
 

 

effective date of such termination or reduction, specifying such election
and the effective date thereof.  Promptly
following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof.  Each
notice delivered by the Borrower pursuant to this Section shall be irrevocable,
provided that a notice of termination of the Revolving Commitments, A
Delayed Draw Term Loan Commitments or B Delayed Draw Term Loan Commitments
delivered by the Borrower may state that such notice is conditioned upon the
occurrence or non-occurrence of any event specified therein (including the effectiveness
of other credit facilities), in which case such notice may be revoked by the
Borrower (by notice to the Administrative Agent on or prior to the specified
effective date) if such condition is not satisfied.  Each reduction, and any termination, of the
Revolving Commitments, A Delayed Draw Term Loan Commitments and B Delayed Draw
Term Loan Commitments shall be permanent, and each such reduction shall be made
ratably among the applicable Lenders in accordance with their respective
Revolving Commitments, A Delayed Draw Term Loan Commitments and B Delayed Draw
Term Loan Commitments.

(d)                                 The
Borrower may at any time and from time to time, at its sole cost, expense and
effort, request any one or more of the Lenders, an Affiliate of a Lender or an
Approved Fund of a Lender to increase its Revolving Commitment or to provide a
new Revolving Commitment, as the case may be (the decision to be within the
sole and absolute discretion of such Lender, Affiliate or Approved Fund), or any
other Person reasonably satisfactory to the Administrative Agent, each Issuing
Bank and the Swingline Lender to provide a new Revolving Commitment, by
submitting a Revolving Increase Supplement duly executed by the Borrower and
each such Lender, Affiliate, Approved Fund or other Person, as the case may be,
to the Administrative Agent.  If such
Revolving Increase Supplement is in all respects reasonably satisfactory to the
Administrative Agent, the Administrative Agent shall execute such Revolving
Increase Supplement and deliver a copy thereof to the Borrower and each such
Lender, Affiliate, Approved Fund or other Person, as the case may be.  Upon execution and delivery of such Revolving
Increase Supplement by the Administrative Agent, (i) in the case of each
such Lender, such Lender’s Revolving Commitment shall be increased to the
amount set forth in such Revolving Increase Supplement, (ii) in the case
of each such Affiliate, Approved Fund or other Person, such Affiliate, Approved
Fund or other Person shall thereupon become a party hereto and shall for all
purposes of the Loan Documents be deemed a “Lender” having a Revolving
Commitment as set forth in such Revolving Increase Supplement, and
(iii) in each case, the Revolving Commitment of such Lender, Affiliate,
Approved Fund or such other Person, as the case may be, shall be as set forth
in the applicable Revolving Increase Supplement; provided, however,
that:

(A)                              immediately
after giving effect thereto, the sum of all increases in the aggregate
Revolving Commitments plus the aggregate amount of all Additional Term Loan
Commitments made, if any, shall not exceed $500,000,000;

(B)                                each
such increase shall be in an amount not less than $25,000,000 or such amount
plus an integral multiple of $5,000,000;

(C)                                the
Revolving Commitments shall not be increased on more than two occasions;

(D)                               if
Revolving Loans would be outstanding immediately after giving effect to each
such increase, then simultaneously with such increase (1) each such
Lender, each such Affiliate, Approved Fund or other Person and each other
Lender shall be deemed to have entered into a master assignment and acceptance
agreement, in form and substance substantially similar to Exhibit A,
pursuant to which each such other Lender shall have assigned to each such
Lender and each such Affiliate, Approved Fund or other Person a

 38
 

 

portion of its
Revolving Loans necessary to reflect proportionately the Revolving Commitments
as adjusted in accordance with this subsection (e), and (2) in
connection with such assignment, each such Lender and each such Affiliate,
Approved Fund or other Person shall pay to the Administrative Agent, for the
account of the other Lenders, such amount as shall be necessary to
appropriately reflect the assignment to it of Revolving Loans, and in
connection with such master assignment each such other Lender may treat the
assignment of Eurodollar Borrowings as a prepayment of such Eurodollar
Borrowings for purposes of Section 3.6;

(E)                                 each
such Affiliate, Approved Fund or other Person shall have delivered to the
Administrative Agent and the Borrower all forms, if any, that are required to
be delivered by such Affiliate, Approved Fund or other Person pursuant to
Section 3.7; and

(F)                                 the
Borrower shall have delivered to the Administrative Agent for further
distribution to each Lender a certificate of a Financial Officer demonstrating
compliance on a Pro Forma Basis with the Financial Covenants through the Revolving
Maturity Date and the Administrative Agent shall have received such customary certificates,
legal opinions and other items as it shall reasonably request in connection
with such increase.

Section 2.6.                                   Repayment
of Loans

(a)                                  The
Borrower hereby unconditionally promises to pay to the Administrative Agent for
the account of each applicable Lender the then unpaid principal amount of each
Revolving Loan, A Term Loan, B Term Loan and Additional Term Loan on the
Revolving Maturity Date, A Term Maturity Date, B Term Maturity Date and the Additional
Term Loan Maturity Date, respectively. 
The outstanding principal balance of each Swingline Loan shall be due
and payable on the earliest to occur of the last day of the Swingline Interest
Period applicable thereto, the Business Day immediately preceding the Revolving
Maturity Date, and the date on which the Swingline Loans shall become due and
payable pursuant to the provisions hereof, whether by acceleration or
otherwise; provided that on each date that a Revolving Borrowing is
made, the Borrower shall repay all Swingline Loans then outstanding.

(b)                                 On
the last day of each March, June, September and December, beginning with
December 31, 2008, the Borrower shall repay the A Term Loans in the aggregate
principal amount equal to the product of (i) the percentage set forth in the
table below opposite such date and (ii) the aggregate principal amount of the A
Term Loans outstanding immediately following the earlier to occur of (x) the A
Delayed Draw Funding Date and (y) the A Delayed Draw Expiration Date, with the
remaining balance to be repaid on the A Term Maturity Date,

	
  Date

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31, 2008

  	
   

  	
  1.25

  	
  %

  
	
  March 31, 2009

  	
   

  	
  1.25

  	
  %

  
	
  June 30, 2009

  	
   

  	
  1.25

  	
  %

  
	
  September 30, 2009

  	
   

  	
  1.25

  	
  %

  
	
  December 31, 2009

  	
   

  	
  2.50

  	
  %

  
	
  March 31, 2010

  	
   

  	
  2.50

  	
  %

  
	
  June 30, 2010

  	
   

  	
  2.50

  	
  %

  
	
  September 30, 2010

  	
   

  	
  2.50

  	
  %

  
	
  December 31, 2010

  	
   

  	
  3.75

  	
  %

  
	
  March 31, 2011

  	
   

  	
  3.75

  	
  %

  
	
  June 30, 2011

  	
   

  	
  3.75

  	
  %

  

 

 39
 

 

 

	
  Date

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  September 30, 2011

  	
   

  	
  3.75

  	
  %

  
	
  December 31, 2011

  	
   

  	
  5.00

  	
  %

  
	
  March 31, 2012

  	
   

  	
  5.00

  	
  %

  
	
  June 30, 2012

  	
   

  	
  5.00

  	
  %

  
	
  September 30, 2012

  	
   

  	
  5.00

  	
  %

  
	
  December 31, 2012

  	
   

  	
  12.50

  	
  %

  
	
  March 31, 2013

  	
   

  	
  12.50

  	
  %

  
	
  June 30, 2013

  	
   

  	
  12.50

  	
  %

  
	
  A Term Maturity Date

  	
   

  	
  12.50

  	
  %

  

 

(c)                                  On
the last day of each March, June, September and December, beginning with
December 31, 2008, the Borrower shall repay the B Term Loans in the aggregate
principal amount equal to the product of (i) 0.25% and (ii) the aggregate
principal amount of the B Term Loans outstanding immediately following the
earlier to occur of (x) the B Delayed Draw Funding Date and (y) the B Delayed Draw
Expiration Date, with the remaining balance to be repaid on the B Term Maturity
Date,

(d)                                 The
unpaid principal amount of each Additional Term Loan shall be payable in such
amounts and on such dates, if any, as shall be set forth in the applicable Effective
Additional Term Loan Supplement.

Section 2.7.                                   Prepayment
of Loans

(a)                                  The
Borrower shall have the right at any time and from time to time to prepay any
Borrowing in whole or in part, subject to the requirements of this
Section.  Except as otherwise provided in
Section 2.7(b), each prepayment of a Borrowing shall be applied, at the
Borrower’s discretion, to (i) the A Term Loans, (ii) the B Term Loans and the
Additional Term Loans on a pro rata basis, and/or (iii) the Revolving
Loans.  Subject to Section 2.7(b), each
prepayment of a Term Loan shall be applied to reduce the remaining installments
payable thereon in the order of maturity specified by the Borrower.

(b)                                 In
the event and on each occasion that any Net Proceeds are received by or on
behalf of the Borrower or any Subsidiary in respect of any Prepayment Event,
then, within five Business Days after such Net Proceeds are received, the
Borrower shall prepay the Term Loans pro rata in an amount equal to such Net
Proceeds.  Notwithstanding anything herein
to the contrary, the Lenders having outstanding B Term Loans or, to the extent
provided in an Additional Term Loan Supplement, the related Additional Term
Loans, may elect to decline any mandatory prepayment of a B Term Borrowing or
the related Additional Term Loan Borrowing, as applicable (the “Declined
Loans”) under this Section 2.7(b) or Section 2.7(c).  To make such an election, such Lenders shall
notify the Administrative Agent and the Borrower thereof by telephone not later
than one Business Day after the Administrative Agent shall have advised such
Lenders of such prepayment in accordance with Section 2.7(e).  Each such telephonic election shall be
irrevocable and shall be confirmed promptly by hand delivery, e-mail or
facsimile to the Administrative Agent of a written election in a form approved
by the Administrative Agent and signed by each such Lender.  Promptly following receipt of such election,
the Administrative Agent shall advise the Borrower of the details thereof and
such declined prepayment may (at the Borrower’s option) be retained by the
Borrower or applied pursuant to paragraph (a) of this Section 2.7.  Each prepayment of a Term Loan required by
this Section 2.7(b) and Section 2.7(c) shall be applied on a pro rata
basis to reduce the remaining installments payable thereon in the order of
maturity specified by the Borrower.

(c)                                  If,
for any fiscal year of the Borrower commencing with the fiscal year ending
December 31, 2007, there shall be Excess Cash Flow, the Borrower shall, on the
Excess Cash Flow Application

 40
 

 

Date relating to such fiscal year, prepay the Term Loans pro rata in an
amount equal to (i) the Excess Cash Flow Percentage of such Excess Cash Flow minus
(ii) the aggregate amount of all prepayments of Revolving Loans (including Loans
repaid to the extent drawn under commitments increased pursuant to Section
2.5(d)) during such fiscal year to the extent accompanied by permanent optional
reductions of the Revolving Commitments and all optional prepayments of Term Loans
and Additional Term Loans during such fiscal year.  Each such prepayment shall be made on a date
(an “Excess Cash Flow Application Date”) no later than ten days after
the date on which the financial statements of the Borrower referred to in
Section 6.1(a) for such fiscal year are required to be delivered to the
Administrative Agent.  Each such
prepayment shall be subject to the procedures set forth in the last five
sentences of Section 2.7(b).

(d)                                 In
the event of any partial reduction or termination of the Revolving Commitments,
then (i) at or prior to the date of such reduction or termination, the
Administrative Agent shall notify the Borrower and the applicable Lenders of
the sum of the Revolving Credit Exposures after giving effect thereto and (ii)
if such sum would exceed the total Revolving Commitments after giving effect to
such reduction or termination, then the Borrower shall, on the date of such
reduction or termination, prepay Revolving Borrowings in an amount sufficient
to eliminate such excess.

(e)                                  The
Borrower shall notify the Administrative Agent (and, in the case of the prepayment
of a Swingline Loan, the Swingline Lender) by telephone (confirmed by
facsimile) of any prepayment hereunder (i) in the case of a prepayment of a
Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three
Business Days before the date of prepayment, (ii) in the case of prepayment of
an ABR Borrowing, not later than 11:00 a.m., New York City time, on the date of
prepayment or (iii) in the case of prepayment of a Swingline Loan, not later
than 3:00 p.m., New York City time, on the date of prepayment.  Each such notice shall be irrevocable and
shall specify the prepayment date and the principal amount of each Borrowing or
portion thereof to be prepaid, provided that, if a notice of prepayment
is given in connection with a conditional notice of termination of the
Revolving Commitments as contemplated by Section 2.5, then such notice of
prepayment may be revoked if such notice of termination is revoked in
accordance with Section 2.5.  Promptly
following receipt of any such notice relating to a Borrowing, the
Administrative Agent shall advise the Lenders of the contents thereof.  Each partial prepayment of any Borrowing
under Section 2.7(a) shall (i) with respect to Eurodollar Borrowings, be in an
integral multiple of $1,000,000 and not less than $5,000,000, and (ii) with
respect to ABR Borrowings, be in an integral multiple of $500,000 and not less
than $3,000,000.  Prepayments shall be
accompanied by accrued interest to the extent required by Section 3.1.  Notwithstanding the foregoing, if any
prepayment of Loans required under this Section 2.7 would result in the
Borrower incurring break funding costs under Section 3.6 (the “Affected
Loans”), at the election of the Borrower, the Affected Loans may be
deposited in an escrow account on terms reasonably satisfactory to the Administrative
Agent and the Borrower and applied to the prepayment of Eurodollar Loans on the
last day of the then next-expiring Interest Period for such Eurodollar Loans
(or such earlier date or dates as shall be requested by the Borrower); provided
that at any time while a Default or Event of Default has occurred and is
continuing, upon written direction from the Required Lenders, the
Administrative Agent shall apply any or all proceeds then on deposit to the payment
of such Affected Loans.

Section 2.8.                                   Evidence
of Debt

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

 41
 

 

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

(c)                                  The
entries made in the accounts maintained pursuant to paragraphs (a) or (b) of
this Section shall be, absent demonstrable error, prima facie evidence of the
existence and amounts of the obligations recorded therein, provided that
the failure of any Lender or the Administrative Agent to maintain such accounts
or any error therein shall not in any manner affect the obligation of the
Borrower to repay the Loans in accordance with the terms of this Agreement.

(d)                                 Any
Lender may request that the Loans made by it be evidenced by a Note.  In such event, the Borrower shall prepare,
execute and deliver to such Lender, a Note payable to such Lender.  In addition, if requested by a Lender, its
Note may be made payable to such Lender and its registered assigns in which
case all Loans evidenced by such Note and interest thereon shall at all times
(including after assignment pursuant to Section 10.4) be represented by one or
more Notes in like form payable to the payee named therein and its registered assigns.

Section 2.9.                                   Letters
of Credit

(a)                                  General.  Subject to the terms and conditions set forth
herein, the Borrower may request the issuance of Letters of Credit denominated
in dollars for its own account (or for the account of any Subsidiary), in a
form reasonably acceptable to the Administrative Agent and the Issuing Bank requested
to issue such Letter of Credit, at any time and from time to time during the
period from the Closing Date to the third day prior to the Revolving Maturity
Date.  In the event of any inconsistency
between the terms and conditions of this Agreement and the terms and conditions
of any form of letter of credit application or other agreement submitted by the
Borrower to, or entered into by the Borrower with, an Issuing Bank relating to
any Letter of Credit, the terms and conditions of this Agreement shall
control.  Upon satisfaction of the
conditions in Section 5 on the Closing Date, in each case automatically
and without further action on the part of any Person, (i) each Existing
Letter of Credit will be deemed to be a Letter of Credit issued hereunder for
all purposes of the Loan Documents and (ii) each Lender that has issued an
Existing Letter of Credit shall be deemed to have granted to each other Lender
with a Revolving Commitment, and each other such Lender shall be deemed to have
acquired from such issuer, a participation in each Existing Letter of Credit
equal to such other Lender’s Applicable Percentage of (A) the aggregate
amount available to be drawn under such Existing Letter of Credit and
(B) the aggregate amount of any reimbursement obligation in respect of any
LC Disbursement in respect thereof.  With
respect to each Existing Letter of Credit (x) if, prior to the Closing
Date, the relevant issuer sold a participation therein to a Lender with a
Revolving Commitment, such issuer and Lender agree that such participation
shall be automatically canceled upon consummation of the Closing Date, and
(y) if, prior to the Closing Date, the relevant issuer sold a
participation therein to any bank or financial institution that is not a Lender
with a Revolving Commitment, such issuer shall procure the termination of such
participation on or prior to the Closing Date.

(b)                                 Notice
of Issuance; Amendment; Renewal; Extension; Certain Conditions.  To request the issuance of a Letter of Credit
(or the amendment, renewal or extension of an outstanding Letter of Credit),
the Borrower shall hand deliver or facsimile (or transmit by electronic
communication, if arrangements for doing so have been approved by the Issuing
Bank requested to issue such Letter of Credit) to such Issuing Bank and the
Administrative Agent (not later than two Business Days before the requested
date of issuance, amendment, renewal or extension) a notice requesting the
issuance of a Letter

 42
 

 

of Credit, or identifying the Letter of Credit to be amended, renewed
or extended, and specifying the date of issuance, amendment, renewal or
extension (which shall be a Business Day), the date on which such Letter of
Credit is to expire (which shall comply with paragraph (c) of this Section),
the amount of such Letter of Credit, the name and address of the beneficiary
thereof and such other information as shall be necessary to prepare, amend,
renew or extend such Letter of Credit. 
If requested by the Issuing Bank requested to issue such Letter of
Credit, the Borrower also shall submit a letter of credit application on such
Issuing Bank’s standard form in connection with any request for a Letter of
Credit.  A Letter of Credit shall be
issued, amended, renewed or extended only if (and, upon issuance, amendment,
renewal or extension of each Letter of Credit, the Borrower shall be deemed to
represent and warrant that), after giving effect to such issuance, amendment,
renewal or extension (i) the LC Exposure shall not exceed $50,000,000 and (ii)
the total Revolving Credit Exposures shall not exceed the total Revolving Commitments.

(c)                                  Expiration
Date.  Each Letter of Credit shall
expire at or prior to the close of business on the earlier of (i) the date that
is one year after the date of the issuance of such Letter of Credit (or, in the
case of any renewal or extension thereof, one year after such renewal or extension)
and (ii) the date that is three days prior to the Revolving Maturity Date, provided
that any Letter of Credit may provide for the automatic renewal thereof for
additional periods of lengths not to exceed one year (which shall in no event
extend beyond the date that is three days prior to the Revolving Maturity
Date).

(d)                                 Participations.  By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any
further action on the part of the Issuing Bank thereof or the applicable
Revolving Lenders, the Issuing Bank thereof hereby grants to each Revolving
Lender, and each such Revolving Lender hereby acquires from such Issuing Bank,
a participation in such Letter of Credit equal to such Revolving Lender’s
Applicable Percentage of the aggregate amount available to be drawn under such
Letter of Credit.  In consideration and
in furtherance of the foregoing, each such Revolving Lender hereby absolutely
and unconditionally agrees to pay to the Administrative Agent, for the account
of the applicable Issuing Bank, such Revolving Lender’s Applicable Percentage
of each LC Disbursement made by such Issuing Bank and not reimbursed by the
Borrower on the date due as provided in paragraph (e) of this Section, or of
any reimbursement payment required to be refunded to the Borrower for any
reason.  Each such Revolving Lender
acknowledges and agrees that its obligation to acquire participations pursuant
to this paragraph in respect of Letters of Credit is absolute and unconditional
and shall not be affected by any circumstance whatsoever, including any
amendment, renewal or extension of any Letter of Credit or the occurrence and
continuance of a Default or reduction or termination of the Revolving Commitments,
and that each such payment shall be made without any offset, abatement,
withholding or reduction whatsoever; provided, however, that no
Revolving Lender shall be obligated to make any payment to the Administrative
Agent for any wrongful LC Disbursement made by an Issuing Bank as a result of
acts or omissions constituting willful misconduct or gross negligence on the
part of such Issuing Bank.

(e)                                  Reimbursement.  If any Issuing Bank shall make any LC
Disbursement in respect of a Letter of Credit, then such Issuing Bank shall
notify the Borrower to reimburse the Issuing Bank therefor, in which case the
Borrower shall reimburse such LC Disbursement by paying to the Administrative
Agent an amount equal to such LC Disbursement and any accrued interest thereon
not later than 1:00 p.m., New York City time, on the date that such LC Disbursement
is made, if the Borrower shall have received notice of such LC Disbursement
prior to 12:00 noon, New York City time, on such date, or if such notice has
not been received by the Borrower prior to such time on such date, then not
later than 1:00 p.m., New York City time, on (A) the Business Day that the
Borrower receives such notice, if such notice is received prior to 12:00 noon,
New York City time, on the day of receipt or (B) the Business Day immediately
following the day that the Borrower receives such notice, if such notice is not
received prior

 43
 

 

to such time on the day of receipt, provided that, if the LC
Disbursement is equal to or greater than $1,000,000, the Borrower may, subject
to the conditions of borrowing set forth herein, request in accordance with
Section 2.3 that such payment be financed with an ABR Revolving Borrowing or
Swingline Loan in an equivalent amount and, to the extent so financed, the
Borrower’s obligation to make such payment shall be discharged and replaced by
the resulting ABR Revolving Borrowing or Swingline Loan.  If the Borrower fails to make such payment
when due (or if any such reimbursement payment is required to be refunded to
the Borrower for any reason), such Issuing Bank may notify the Administrative
Agent that the applicable Issuing Bank is requesting that the applicable
Lenders make an ABR Revolving Borrowing in an amount equal to such LC
Disbursement and any accrued interest thereon, in which case (1) the Administrative
Agent shall notify each applicable Lender of the details thereof and of the
amount of such Lender’s Loan to be made as part of such ABR Revolving
Borrowing, and (2) each Lender shall, whether or not any Default shall have
occurred and be continuing, any representation or warranty shall be accurate,
any condition to the making of any loan hereunder shall have been fulfilled, or
any other matter whatsoever, make the Loan to be made by it under this
paragraph by wire transfer of immediately available funds to the account of the
Administrative Agent most recently designated by it for such purpose by notice
to the Lenders, (A) on such date, in the event that such Lender shall have
received notice of such ABR Revolving Borrowing prior to 12:00 noon, New York
City time, or (B) if such notice has not been received by such Lender prior to
such time on such date, then not later than 1:00 p.m., New York City time, on
(x) the Business Day that such Lender receives such notice, if such notice is
received prior to 12:00 noon, New York City time, on the day of receipt or (y)
the Business Day immediately following the day that such Lender receives such
notice, if such notice is not received prior to such time on the day of
receipt.  Such Loans shall, for all
purposes hereof, be deemed to be an ABR Revolving Borrowing referred to in
Section 2.1(a) and made pursuant to Section 2.3, and the Lenders’ obligations
to make such Loans shall be absolute and unconditional.  The Administrative Agent will make such Loans
available to the applicable Issuing Bank by promptly crediting or otherwise
transferring the amounts so received, in like funds, to such Issuing Bank for
the purpose of repaying in full the LC Disbursement and all accrued interest
thereon.  An ABR Borrowing pursuant to
this Section 2.9(e) made when the conditions to an ABR Borrowing are not
satisfied under Section 5.3 shall not be deemed to have satisfied the Borrower’s
reimbursement obligation with respect to an LC Disbursement for purposes of
determining whether or not an Event of Default exists under clause (a) of
Article 8.

(f)                                    Obligations
Absolute.  Except as provided below,
to the fullest extent permitted by law, the Borrower’s obligations to reimburse
LC Disbursements as provided in paragraph (e) of this Section shall be
absolute, unconditional and irrevocable, and shall be performed strictly in
accordance with the terms of this Agreement under any and all circumstances
whatsoever and irrespective of (i) any lack of validity or enforceability of
any Letter of Credit or this Agreement, or any term or provision therein or
herein, (ii) any draft or other document presented under a Letter of Credit
proving to be forged, fraudulent or invalid in any respect or any statement
therein being untrue or inaccurate in any respect, (iii) payment by the
applicable Issuing Bank under a Letter of Credit against presentation of a
draft or other document that does not comply with the terms of such Letter of
Credit or (iv) any other event or circumstance whatsoever, whether or not
similar to any of the foregoing, that might, but for the provisions of this
Section, constitute a legal or equitable discharge of, or provide a right of
setoff against, the Borrower’s obligations hereunder.  Neither any Credit Party nor any of their
respective Related Parties shall have any liability or responsibility by reason
of or in connection with the issuance or transfer of any Letter of Credit or
any payment or failure to make any payment thereunder (irrespective of any of
the circumstances referred to in the preceding sentence), or any error,
omission, interruption, loss or delay in transmission or delivery of any draft,
notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in
interpretation of technical terms or any consequence arising from causes beyond
the control of such Issuing Bank; provided that the foregoing shall not
be construed to excuse any Issuing Bank from liability to the Borrower

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

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

(h)                                 Interim
Interest.  If any Issuing Bank shall
make any LC Disbursement, then, unless the Borrower shall reimburse such LC
Disbursement in full on the date such LC Disbursement is made, the unpaid
amount thereof shall bear interest, for each day from and including the date
such LC Disbursement is made to but excluding the date that the Borrower
reimburses such LC Disbursement, at the rate per annum then applicable to ABR
Revolving Loans; provided that, if the Borrower fails to reimburse such
LC Disbursement when due pursuant to paragraph (e) of this Section, then
Section 3.1(b) shall apply.  Interest
accrued pursuant to this paragraph shall be for the account of the applicable
Issuing Bank, except that interest accrued on and after the date of payment by
any Lender pursuant to paragraph (d) of this Section to reimburse such Issuing
Bank shall be for the account of such Lender to the extent of such payment.

(i)                                     Replacement
of Issuing Bank.  Any Issuing Bank
may be replaced at any time by written agreement among the Borrower, the
Administrative Agent and the successor Issuing Bank.  The Administrative Agent shall notify the
Lenders of any such replacement of an Issuing Bank.  At the time any such replacement shall become
effective, the Borrower shall pay all unpaid fees accrued for the account of
the replaced Issuing Bank pursuant to Section 3.3(b).  From and after the effective date of any such
replacement, (i) the successor Issuing Bank shall have all the rights and
obligations of an Issuing Bank under this Agreement with respect to Letters of
Credit to be issued by it thereafter and (ii) references herein to the
term “Issuing Bank” shall be deemed to refer to such successor or to any previous
Issuing Bank, or to such successor and all previous Issuing Banks, as the
context shall require.  After the replacement
of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party
hereto and shall continue to have all the rights and obligations of an Issuing
Bank under this Agreement with respect to Letters of Credit issued by it prior
to such replacement, but shall not be required to issue additional Letters of
Credit.

 45

 

(j)                                     Cash
Collateral.  If (x) any Event of
Default shall occur and be continuing, on the Business Day that the Borrower
receives notice from the Administrative Agent or the Required Lenders demanding
the deposit of cash collateral pursuant to this paragraph, or (y) the maturity
of the Revolving Loans has been accelerated, the Borrower shall deposit in an
account with the Administrative Agent, in the name of the Administrative Agent
and for the benefit of the applicable Lenders, an amount in cash equal to the
LC Exposure as of such date plus any accrued and unpaid interest
thereon; provided that the obligation to deposit such cash collateral
shall become effective immediately, and such deposit shall become immediately
due and payable, without demand or other notice of any kind, upon the
occurrence of any Event of Default with respect to the Borrower described in
paragraph (h) or (i) of Article 8.  Such
deposit shall be held by the Administrative Agent as collateral for the payment
and performance of the obligations of the Borrower under this Section 2.9.  The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over such
account.  Such deposit shall not bear
interest, nor shall the Administrative Agent be under any obligation whatsoever
to invest the same, provided, however, that, at the request of
the Borrower, such deposit shall be invested by the Administrative Agent in
direct short-term obligations of, or short-term obligations the principal of
and interest on which are unconditionally guaranteed by, the United States of
America, in each case maturing no later than the expiry date of the Letter of
Credit giving rise to the relevant LC Exposure. 
Interest or profits, if any, on such investments shall accumulate in
such account.  Moneys in such account
shall be applied by the Administrative Agent to reimburse each Issuing Bank for
LC Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations of
the Borrower for the LC Exposure at such time or, if the maturity of the Loans
has been accelerated (but subject to the consent of Lenders with LC Exposure
representing greater than 50% of the total LC Exposure), be applied to satisfy
other obligations of the Borrower under this Agreement.  If the Borrower is required to provide an
amount of cash collateral hereunder as a result of the occurrence of an Event
of Default, such amount and any interest thereon (to the extent not applied as
aforesaid) shall be returned to the Borrower within three Business Days after
all Events of Default have been cured or waived.

Section 2.10.                             Swingline
Loans

(a)                                  Subject
to the terms and conditions set forth herein, and, if such Swingline Loan is to bear
interest at the Negotiated Rate, further subject to the agreement of the
Swingline Lender and the Borrower with respect to the Negotiated Rate to be
applied, the Swingline Lender agrees to make Swingline Loans to
the Borrower from time to time during the Availability Period, in an aggregate
principal amount at any time outstanding that will not result in (i) the
aggregate principal amount of outstanding Swingline Loans exceeding $30,000,000
or (ii) the sum of the total Revolving Credit Exposures exceeding the total Revolving
Commitments; provided that the Swingline Lender shall not be required to
make a Swingline Loan to refinance an outstanding Swingline Loan.  Notwithstanding the foregoing, the Swingline
Lender shall not be required to make a Swingline Loan if (i) any Revolving
Lender shall be in default of its obligations under this Agreement or (ii) any
Revolving Lender shall have notified the Swingline Lender and the Borrower in
writing at least one Business Day prior to the date of Borrowing with respect
to such Swingline Loan that the conditions set forth in Section 5.3 have not
been satisfied and such conditions remain unsatisfied as of the requested time
of the making of such Swingline Loan. Within the foregoing limits and subject
to the terms and conditions set forth herein, the Borrower may borrow, prepay
and reborrow Swingline Loans.

(b)                                 To
request a Swingline Loan, the Borrower shall notify the Administrative Agent of
such request by telephone (confirmed by telecopy), not later than 3:00 p.m.,
New York City time, on the day of a proposed Swingline Loan.  Each such notice shall be irrevocable and
shall specify (i) the aggregate principal amount to be borrowed, (ii) the
requested date of such Borrowing, and (iii) the amount

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of, and the length of the Swingline Interest Period for, each Swingline
Loan, provided, however, that no such Swingline Interest Period shall end after
the Business Day immediately preceding the Revolving Maturity Date.  The Administrative Agent will promptly advise
the Swingline Lender of any such notice received from the Borrower.  The Swingline Lender shall (with respect to
Swingline Loans that bear interest at the Negotiated Rate, subject to its
agreement with the Borrower on the Negotiated Rate to be applied thereto) make
each Swingline Loan available to the Borrower by means of a credit to the general
deposit account of the Borrower with the Swingline Lender (or, in the case of a
Swingline Loan made to finance the reimbursement of an LC Disbursement as
provided in Section 2.9(e), by remittance to the Issuing Bank) by
3:30 p.m., New York City time, on the requested date of such Swingline
Loan.

(c)                                  The
Swingline Lender may by written notice given to the Administrative Agent not
later than 10:00 a.m., New York City time, on any Business Day notify the
Administrative Agent that the Swingline Lender is requesting that each Lender,
and the Administrative Agent may (with the consent of Required Lenders) or
shall (at the request of Required Lenders) by written notice given to the
Swingline Lender not later than 10:00 a.m., New York City time, on any Business
Day require that each Lender, at the option of the Borrower, (i) make a
Revolving Loan in an amount equal to its pro rata Revolving Commitment with
respect to the outstanding principal balance of, and accrued and unpaid
interest on, the Swingline Loans, or (ii) acquire participations on such
Business Day in all or a portion of the Swingline Loans outstanding.  Such notice shall specify the aggregate
amount of Swingline Loans in which Lenders will participate.  In either such case (i) the Administrative
Agent shall notify each Lender of the details thereof and of the amount of such
Lender’s Revolving Loan or participation interest, as the case may be, and (ii)
each Lender shall, whether or not any Default shall have occurred and be continuing,
any representation or warranty shall be accurate, any condition to the making
of any Loan hereunder shall have been fulfilled, or any other matter
whatsoever, make the Revolving Loan required to be made by it, or purchase the
participation required to be purchased by it, under this paragraph by wire
transfer of immediately available funds to the account of the Administrative
Agent most recently designated by it for such purpose by notice to the Lenders,
(A) in the event that such Lender receives such notice prior to 12:00 noon, New
York City time, on any Business Day, by no later than 3:00 p.m., New York City
time, on such Business Day, or (B) in the event that such Lender receives such
notice at or after 12:00 noon, New York City time, on any Business Day, by no
later than 1:00 p.m. New York City time on the immediately succeeding Business
Day.  Any Loans made pursuant to this
paragraph (c) shall, for all purposes hereof, be deemed to be Revolving Loans
referred to in Section 2.1 and made pursuant to Section 2.4(a), and the Lenders’
obligations to make such Loans shall be absolute and unconditional. The
Administrative Agent will make such Loans, or the amount of such
participations, as the case may be, available to the Swingline Lender by
promptly crediting or otherwise transferring the amounts so received, in like
funds, to the Swingline Lender.  Each
Lender shall also be liable for an amount equal to the product of its pro rata
Revolving Commitment and any amounts paid by the Borrower pursuant to this
Section 2.10 that are subsequently rescinded or avoided, or must otherwise be
restored or returned.  Such liabilities
shall be absolute and unconditional and without regard to the occurrence of any
Default or the compliance by the Borrower with any of its obligations under the
Loan Documents. Whenever the Administrative Agent is reimbursed by the
Borrower, for the account of the Swingline Lender, for any payment in
connection with Swingline Loans and such payment relates to an amount
previously paid by a Lender pursuant to this Section, the Administrative Agent
will promptly pay over such payment to such Lender.  The purchase of participations in a Swingline
Loan or the making by the Lenders of a Revolving Loan pursuant to this
paragraph shall not relieve the Borrower of any default in the payment thereof.

Section 2.11.                             Payments
Generally; Pro Rata Treatment; Sharing of Setoffs

(a)                                  Each
Loan Party shall make each payment required to be made by it hereunder or under
any other Loan Document (whether of principal of Loans, LC Disbursements,
interest or fees, or of

 47
 

 

amounts payable under Sections 3.5, 3.6, 3.7 or 10.3, or otherwise)
prior to 2:00 p.m., New York City time, on the date when due, in immediately
available funds, without setoff or counterclaim (other than with respect to
Excluded Taxes).  Any amounts received
after such time on any date may, in the discretion of the Administrative Agent,
be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. 
All such payments shall be made to the Administrative Agent at its
office at One Wall Street, New York, New York, or such other office as to which
the Administrative Agent may notify the other parties hereto, except payments
to be made to an Issuing Bank or Swingline Lender as expressly provided herein
and except that payments pursuant to Sections 3.5, 3.6, 3.7 and 10.3 shall be
made directly to the Persons entitled thereto and payments made pursuant to
other Loan Documents shall be made to the Persons specified therein.  The Administrative Agent shall distribute any
such payments received by it for the account of any other Person to the
appropriate recipient promptly following receipt thereof.  If any payment hereunder shall be due on a
day that is not a Business Day, the date for payment shall be extended to the
next succeeding Business Day, and, in the case of any payment accruing
interest, interest thereon shall be payable for the period of such extension.  All payments hereunder shall be made in dollars.

(b)                                 If
at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal of Loans, unreimbursed LC
Disbursements, interest, fees and commissions then due hereunder (after giving
effect to all applicable grace periods and/or cure periods, if any), such funds
shall be applied (i) first, towards payment of interest, fees and commissions
then due hereunder ratably among the parties entitled thereto in accordance
with the amounts of interest, fees and commissions then due to such parties and
(ii) second, towards payment of principal of Loans and unreimbursed LC
Disbursements then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal of Loans and unreimbursed LC
Disbursements then due to such parties.

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

(d)                                 Unless
the Administrative Agent shall have received notice from a Loan Party prior to
the date on which any payment is due to the Administrative Agent for the
account of the applicable

 48
 

 

Credit Parties hereunder that such Loan Party will not make such
payment, the Administrative Agent may assume that such Loan Party has made such
payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to such Credit Parties the amount due.  In such event, if such Loan Party has not in
fact made such payment, then each such Credit Party severally agrees to repay
to the Administrative Agent forthwith on demand the amount so distributed to
such Credit Party with interest thereon, for each day from and including the
date such amount is distributed to it to but excluding the date of payment to
the Administrative Agent, at the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

(e)                                  If
any Credit Party shall fail to make any payment required to be made by it pursuant
to Section 2.4(b) or 2.9(e), then the Administrative Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for the account of such Credit
Party to satisfy such Credit Party’s obligations under such Sections until all
such unsatisfied obligations are fully paid.

ARTICLE 3

INTEREST, FEES,
YIELD PROTECTION, ETC.

Section 3.1.                                   Interest

(a)                                  The
Loans comprising each ABR Borrowing shall bear interest at the Alternate Base
Rate plus the Applicable Margin.  The
Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted
LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable
Margin.  The Loans comprising each
Swingline Borrowing shall bear interest at either the Alternate Base Rate plus
the Applicable Margin or, if agreed by the Swingline Lender and the Borrower,
at the Negotiated Rate for the Swingline Interest Period in effect for such
Borrowing; provided that for the avoidance of doubt, all Revolving Loans
made pursuant to Section 2.10(c) shall bear interest at the interest rate otherwise
applicable to Revolving Loans and not the Negotiated Rate.

(b)                                 Notwithstanding
the foregoing, if any principal of or interest on any Loan, any reimbursement
obligation in respect of any LC Disbursement or any fee or other amount payable
by the Borrower hereunder is not paid when due, whether at stated maturity,
upon acceleration or otherwise, such overdue amount shall bear interest, after
as well as before judgment, at a rate per annum equal to (i) in the case
of overdue principal of any Loan or any LC Disbursement, 2% plus the
interest rate otherwise applicable to such Loan or such LC Disbursement as
provided in the preceding paragraph of this Section, (ii) in the case of
overdue interest, 2% plus the rate that would be otherwise applicable to
principal of the Loan on which such interest is accruing or LC Disbursement
(assuming such LC Disbursement were a Eurodollar Loan) as provided in the
preceding paragraph of this Section or (iii) in the case of any other amount,
2% plus the rate applicable to ABR Revolving Loans as provided in the
preceding paragraph of this Section. 
Notwithstanding the foregoing, if any principal of or interest on any
Swingline Loan is not paid when due, whether at stated maturity, upon
acceleration or otherwise, such overdue amount shall bear interest, after as
well as before judgment, at a rate per annum equal to 2% plus the rate
otherwise then borne by such Swingline Loan.

(c)                                  Accrued
interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan, provided that (i) interest accrued pursuant to paragraph
(b) of this Section shall be payable on demand, (ii) in the event of any
repayment or prepayment of any Loan (other than the prepayment of an ABR
Revolving Loan prior to the end of the Availability Period), accrued interest
on the principal amount repaid or prepaid shall be payable on the date of such
repayment or prepayment, and

 49
 

 

(iii) in the event of any conversion of any Eurodollar Loan prior to
the end of the current Interest Period therefor, accrued interest on such Loan
shall be payable on the effective date of such conversion.

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

Section 3.2.                                   Interest
Elections

(a)                                  Each
Borrowing initially shall be of the Type specified in the applicable Borrowing
Request or designated by Section 2.3 and, in the case of a Eurodollar
Borrowing, shall have an initial Interest Period as specified in such Borrowing
Request or designated by Section 2.3. 
Thereafter, the Borrower may elect to convert such Borrowing to a
different Type or to continue such Borrowing and, in the case of a Eurodollar
Borrowing, may elect Interest Periods therefor, all as provided in this
Section.  The Borrower may elect
different options with respect to different portions of the affected Borrowing,
in which case each such portion shall be allocated ratably among the applicable
Lenders holding the Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate Borrowing.  This Section shall not apply to Swingline
Borrowings, which may not be converted or continued.

(b)                                 To
make an election pursuant to this Section, the Borrower shall notify the Administrative
Agent of such election by telephone by the time that a Borrowing Request would
be required under Section 2.3 if the Borrower were requesting a Borrowing of
the Type resulting from such election to be made on the effective date of such
election.  Each such telephonic Interest
Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery, e-mail or facsimile to the Administrative Agent of a written Interest
Election Request in a form approved by the Administrative Agent and signed by
the Borrower.

(c)                                  Each
telephonic and written Interest Election Request shall specify the following information:

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

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

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

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

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

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

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

Section 3.3.                                   Fees

(a)                                  (i)  The Borrower agrees to pay to the
Administrative Agent for the account of each Lender having a Revolving
Commitment (other than a Defaulting Lender), a commitment fee, which shall
accrue at a rate per annum equal to the Applicable Margin on the average daily
amount of the unused Revolving Commitment (provided that Swingline Loans
shall not be deemed to be a use of the Revolving Commitments for the purpose of
the calculation of such commitment fee) during the period from and including
the Closing Date to but excluding the date on which such Revolving Commitment
terminates (it being understood that LC Exposure constitutes a use of the
Revolving Commitment).  Accrued
commitment fees shall be payable in arrears on the last day of March, June,
September and December of each year, each date on which the Revolving
Commitments are permanently reduced and on the date on which the Revolving
Commitments terminate, commencing on the first such date to occur after the Closing
Date.  All commitment fees shall be
computed on the basis of a year of 365 days (and 366 days in a leap year) and
shall be payable for the actual number of days elapsed (including the first day
but excluding the last day).

(ii)                                  The Borrower agrees to pay to the
Administrative Agent for the account of each Lender having an A Delayed Draw
Term Loan Commitment and each Lender having a B Delayed Draw Term Loan
Commitment, a commitment fee, which shall accrue at a rate per annum equal to
0.25% on the daily amount of the undrawn A Delayed Draw Term Loan Commitment or
B Delayed Draw Term Loan Commitment, as applicable, during the period from and
including the Closing Date to but excluding the date on which such Commitment,
as applicable, terminates.  Accrued
commitment fees shall be payable in arrears on the on the date on which the A
Delayed Draw Term Loan Commitment and the date on which the B Delayed Draw Term
Loan Commitment, as applicable, terminates. 
All commitment fees shall be computed on the basis of a year of 365 days
(and 366 days in a leap year) and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day).

(b)                                 The
Borrower agrees to pay (i) to the Administrative Agent for the account of each
Lender having a Revolving Commitment (other than a Defaulting Lender) a
participation fee with respect to its participations in Letters of Credit,
which shall accrue at rate per annum equal to the Applicable Margin (minus the
fronting fee referred to in clause (ii) below) on the average daily amount of
such Lender’s LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the Closing
Date to but excluding the later of the date on which such Lender’s Revolving
Commitment terminates and the date on which such Lender ceases to have any LC

 51
 

 

Exposure and (ii) to each Issuing Bank for its own account a fronting
fee, which shall accrue at the rate of .125% per annum or such lesser rate as
may be separately agreed upon between the Borrower and the applicable Issuing
Bank on the average daily amount of the LC Exposure attributable to Letters of
Credit (excluding any portion thereof attributable to unreimbursed LC
Disbursements) with respect to each Letter of Credit issued by such Issuing
Bank during the period from and including the Closing Date to but excluding the
later of the date of termination of the Revolving Commitments and the date on
which there ceases to be any such LC Exposure, as well as such Issuing Bank’s
standard fees with respect to the issuance, amendment, renewal or extension of
any Letter of Credit or processing of drawings thereunder.  Accrued participation fees and fronting fees
shall be payable in arrears on the last day of March, June, September and
December of each year, commencing on the first such date to occur after the
Closing Date; provided that all such fees shall be payable on the date
on which the Revolving Commitments terminate and any such fees accruing after
the date on which the Revolving Commitments terminate shall be payable on demand.  Any other fees payable to any Issuing Bank
pursuant to this paragraph shall be payable within ten days after demand.  All participation fees and fronting fees
shall be computed on the basis of a year of 360 days and shall be payable for
the actual number of days elapsed (including the first day but excluding the
last day).

(c)                                  The
Borrower agrees to pay to each Credit Party, for its own account, fees and
other amounts payable in the amounts and at the times separately agreed upon
between the Borrower and such Credit Party.

(d)                                 All
fees and other amounts payable hereunder shall be paid on the dates due, in
immediately available funds to the Administrative Agent (or to each Issuing
Bank in the case of fees payable to it) for distribution, in the case of commitment
fees and participation fees, to the Lenders. 
Fees and other amounts paid shall not be refundable under any circumstances.

Section 3.4.                                   Alternate
Rate of Interest

If prior to the commencement of any Interest Period
for a Eurodollar Borrowing:

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

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

then the Administrative Agent shall give notice
thereof to the Borrower and the Lenders by telephone or facsimile as promptly
as practicable thereafter and, until the Administrative Agent notifies the
Borrower and the Lenders that the circumstances giving rise to such notice no
longer exist (and the Administrative Agent shall give such notice promptly upon
having actual knowledge that such circumstances no longer exist), (i) any
Interest Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective,
and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such
Borrowing shall be made as an ABR Borrowing.

Section 3.5.                                   Increased
Costs; Illegality

(a)                                  If
any Change in Law shall:

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(i)                                     subject
any Lender to any tax of any kind whatsoever with respect to this Agreement,
any Eurodollar Loans made by such Credit Party or any Letter of Credit or
participations therein, or change the basis of taxation of payments to such
Lender in respect thereof (other than relating to Taxes, which shall be
governed exclusively by Section 3.7, or the imposition of, or any change in the
rate of, any Excluded Taxes payable by a Credit Party);

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

(iii)                               impose
on any Credit Party or the London interbank market any other condition
affecting this Agreement, any Eurodollar Loans made by such Credit Party or any
Letter of Credit or participations therein,

and the result of any of the foregoing shall be to
increase the cost to such Credit Party, by an amount which such Credit Party
reasonably deems to be material, of making or maintaining any Eurodollar Loan
or the cost to such Credit Party, by an amount which such Credit Party
reasonably deems to be material, of issuing, participating in or maintaining
any Letter of Credit hereunder or to increase the cost to such Credit Party or
to reduce the amount of any sum received or receivable by such Credit Party, by
an amount which such Credit Party reasonably deems to be material, hereunder
(whether of principal, interest or otherwise), then the Borrower will pay to
such Credit Party such additional amount or amounts as will compensate such
Credit Party for such additional costs incurred or reduction suffered.

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

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

(d)                                 Failure
or delay on the part of any Credit Party to demand compensation pursuant to
this Section shall not constitute a waiver of such Credit Party’s right to
demand such compensation; provided that the Borrower shall not be
required to compensate a Credit Party pursuant to this Section for any
increased costs or reductions incurred more than 180 days prior to the date
that such Credit Party notifies the Borrower of the Change in Law giving rise
to such increased costs or reductions and of such Credit Party’s intention to
claim compensation therefor; provided  further that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then
the 180-day period referred to above shall be extended to include the period of
retroactive effect thereof.

(e)                                  Notwithstanding
any other provision of this Agreement, if, after the Closing Date any Change in
Law shall make it unlawful for any Lender to make or maintain any Eurodollar
Loan or to

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give effect to its obligations as contemplated hereby with respect to
any Eurodollar Loan, then, by written notice to the Borrower and to the
Administrative Agent:

(i)                                     such
Lender may declare that Eurodollar Loans will not thereafter (for the duration
of such unlawfulness) be made by such Lender hereunder (or be continued for
additional Interest Periods) and ABR Loans will not thereafter (for such
duration) be converted into Eurodollar Loans, whereupon any request for a
Eurodollar Borrowing or to convert an ABR Borrowing to a Eurodollar Borrowing
or to continue a Eurodollar Borrowing, as applicable, for an additional
Interest Period shall, as to such Lender only, be deemed a request for an ABR
Loan (or a request to continue an ABR Loan as such for an additional Interest
Period or to convert a Eurodollar Loan into an ABR Loan, as applicable), unless
such declaration shall be subsequently withdrawn; and

(ii)                                  such
Lender may require that all outstanding Eurodollar Loans made by it be
converted to ABR Loans, in which event all such Eurodollar Loans shall be
automatically converted to ABR Loans, as of the effective date of such notice
as provided in the last sentence of this paragraph.

In the event any Lender shall exercise its rights
under (i) or (ii) of this paragraph, all payments and prepayments of principal
that would otherwise have been applied to repay the Eurodollar Loans that would
have been made by such Lender or the converted Eurodollar Loans of such Lender
shall instead be applied to repay the ABR Loans made by such Lender in lieu of,
or resulting from the conversion of, such Eurodollar Loans, as applicable.  For purposes of this paragraph, a notice to
the Borrower by any Lender shall be effective as to each Eurodollar Loan made
by such Lender, if lawful, on the last day of the Interest Period currently
applicable to such Eurodollar Loan; in all other cases such notice shall be
effective on the date of receipt by the Borrower.

Section 3.6.                                   Break
Funding Payments

In the event of (a) the payment or prepayment
(voluntary or otherwise) of any principal of any Eurodollar Loan other than on
the last day of an Interest Period applicable thereto (including as a result of
an Event of Default), (b) the conversion of any Eurodollar Loan other than on
the last day of the Interest Period applicable thereto, or (c) the failure by
the Borrower to borrow, convert, continue or prepay any Eurodollar Loan on the
date specified in any notice delivered pursuant hereto (regardless of whether
such notice may be revoked under Section 2.7(d) and is revoked in accordance
therewith), then, in any such event, the Borrower shall compensate each Lender
for the actual loss, cost and expense attributable to such event.  In the case of a Eurodollar Loan, such loss,
cost or expense to any Lender may include an amount reasonably determined by
such Lender to be the excess, if any, of (i) the amount of interest that would
have accrued on the principal amount of such Loan had such event not occurred,
at the Adjusted LIBO Rate that would have been applicable to such Loan, for the
period from the date of such event to the last day of the then current Interest
Period therefor (or, in the case of a failure to borrow, convert or continue,
for the period that would have been the Interest Period for such Loan)
excluding, however, the Applicable Margin included therein, if any, over (ii)
the amount of interest (as reasonably determined by such Lender) that would
accrue on such principal amount for such period at the interest rate that such
Lender would bid were it to bid, at the commencement of such period, for dollar
deposits of a comparable amount and period from other banks in the eurodollar
market.  A certificate of any Lender
setting forth in reasonable detail the calculations of any amount or amounts
that such Lender is entitled to receive pursuant to this Section shall be
delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount
shown as due on any such certificate within 10 days after receipt thereof.

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Section 3.7.                                   Taxes

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

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

(c)                                  Each
Loan Party shall indemnify each Credit Party, within ten days after written
demand therefor (which demand shall set forth the amount and the reasons
therefor in reasonable detail), for the full amount of any Indemnified Taxes or
Other Taxes, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental Authority
paid by such Credit Party on or with respect to any payment by or on account of
any obligation of such Loan Party under the Loan Documents (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section) and any penalties, interest and reasonable
out-of-pocket expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate setting forth
the amount of such payment or liability and the reasons therefor in reasonable
detail delivered to the Borrower by a Credit Party, or by the Administrative
Agent on its own behalf or on behalf of a Credit Party, shall be conclusive
absent manifest error. If the Loan Party reasonably believes that Indemnified
Taxes or Other Taxes were not correctly or legally asserted, the applicable
Credit Party or Transferee will reasonably cooperate with the Loan Party to
obtain a refund of such Indemnified Taxes or Other Taxes for the benefit of the
Loan Party, provided that the Loan Party shall reimburse the applicable Credit
Party for reasonable out-of-pocket expenses arising from such cooperation.

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

(e)                                  Any
Foreign Lender that is entitled to an exemption from or reduction of withholding
tax under the law of the jurisdiction in which the relevant Loan Party is
located, or under any treaty to which such jurisdiction is a party, with
respect to payments under the Loan Documents shall deliver to the Borrower
(with a copy to the Administrative Agent), such properly completed and executed
documentation prescribed by applicable law and reasonably requested by the
Borrower from time to time as will permit such payments to be made without
withholding or at a reduced rate.

(f)                                    Without limiting the generality of the
foregoing, (i) each Lender (and, in the case of a pass-through entity, each of
its beneficial owners) that is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code) (a “Non-US Lender”) shall to
the extent it is legally able to do so deliver to the Borrower and the
Administrative Agent (or, in the case of a Participant, to the Borrower and to
the Lender from which the related participation shall have been purchased) (A)
two accurate and complete copies of the appropriate IRS Form W-8, or, (B) in
the case of a Non-US Lender claiming

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exemption
from United States federal withholding Tax under Section 871(h) or 881(c) of
the Code with respect to payments of “portfolio interest,” a statement
substantially in the form of Exhibit I and two accurate and complete
copies of the appropriate IRS Form W-8, or any subsequent versions or
successors to such forms, in each case properly completed and duly executed by
such Non-US Lender claiming complete exemption from, or a reduced rate of,
United States federal withholding Tax on all payments by the Borrower or any
Loan Party under any Loan Document, and (ii) each Lender (and, in the case of a
non-United States pass-through entity, each of its beneficial owners) that is a
United States person (as such term is defined in Section 7701(a)(30) of the
Code) shall deliver to the Borrower and the Administrative Agent two accurate
and complete copies of IRS Form W-9, or any subsequent versions or successors
to such form. The forms referred to in clauses (i) and (ii) shall be delivered
by each Lender on or before the date it becomes a party to this Agreement (or,
in the case of any Participant, on or before the date such Participant
purchases the related participation).  In
addition, each Lender shall deliver such forms promptly upon the obsolescence
or invalidity of any form previously delivered by such Lender.  Each Lender shall promptly notify the
Borrower at any time it determines that it is no longer in a position to
provide any previously delivered certificate to the Borrower (or any other form
of certification adopted by the United States taxing authorities for such
purpose).

(g)                                 If a Credit Party determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes as to
which it has been indemnified by a Loan Party or with respect to which a Loan
Party has paid additional amounts pursuant to this Section 3.7, it shall pay to
the Loan Party an amount equal to such refund (but only to the extent of
indemnity payments made, or additional amounts paid, by the Loan Party under
this Section 3.7 with respect to Taxes or Other Taxes giving rise to such
refund), net of all out-of-pocket expenses of the Credit Party and without
interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund); provided that the Loan Party, upon the
request of the Credit Party agrees to repay the amount paid over to the Loan
Party (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Credit Party in the event the Credit Party is
required to repay such refund to such Governmental Authority.  This paragraph shall not be construed to
require the Credit Party to make available its tax returns (or any other information
relating to its taxes that it deems confidential) to the Loan Party or any
other Person.

Section 3.8.                                   Mitigation
Obligations

If any Credit Party requests compensation under
Section 3.5, or if the Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Credit Party
pursuant to Section 3.7, then such Credit Party shall use reasonable efforts to
designate a different lending office for funding or booking its Loans or
Letters of Credit (or any participation therein) hereunder or to assign its
rights and obligations hereunder to another of its offices, branches or affiliates,
if, in the good faith judgment of such Credit Party, such designation or
assignment (i) would eliminate or reduce amounts payable pursuant to Sections
3.5 or 3.7, as applicable, in the future and (ii) would not subject such Credit
Party to any unreimbursed cost or expense and would not otherwise be materially
disadvantageous to such Credit Party. The Borrower hereby agrees to pay all
reasonable costs and out of pocket expenses incurred by any Credit Party in
connection with any such designation or assignment.

Section 3.9.                                   Replacement
of Lenders

If (i) any Credit Party requests compensation
under Section 3.5, or the Borrower is required to pay any additional
amount to any Credit Party or any Governmental Authority for the account of any
Credit Party pursuant to Section 3.7, (ii) any Lender defaults in its
obligation to fund Loans hereunder (any Lender described in this clause (ii), a
“Defaulting Lender”) or (iii) any Lender notifies the Borrower pursuant to
Section 3.5(e) that it is unlawful for such Lender to make or maintain
Eurodollar Loans, then

 56
 

 

the Borrower may, at its sole expense and effort, upon
notice to such Credit Party and the Administrative Agent, require such Credit
Party to assign and delegate, without recourse (in accordance with and subject
to the restrictions contained in Section 10.4), all its interests, rights
and obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Credit Party, if a Credit Party
accepts such assignment); provided that (i) the Borrower shall have
received the prior written consent of the Administrative Agent (and if a
Revolving Commitment is being assigned, the Issuing Banks and the Swingline
Bank), which consents shall not unreasonably be withheld, conditioned or
delayed, (ii) such Credit Party shall have received payment of an amount
equal to the outstanding principal of its Loans and funded participations in LC
Disbursements, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder, from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrower (in the case of all
other amounts), (iii) unless the Administrative Agent otherwise agrees,
the Borrower, the Defaulting Lender (if any) or such assignee shall have paid
to the Administrative Agent the processing and recordation fee specified in Section 10.4(b)
and (iv) in the case of any such assignment resulting from a claim for
compensation under Section 3.5 or payments required to be made pursuant to
Section 3.7, such assignment will result in a reduction in such compensation
or payments.  A Credit Party shall not be
required to make any such assignment and delegation if, prior thereto, as a
result of a waiver by such Credit Party or otherwise, the circumstances
entitling the Borrower to require such assignment and delegation cease to
apply.

ARTICLE 4

REPRESENTATIONS
AND WARRANTIES

The Borrower represents and warrants to the Credit
Parties that:

Section 4.1.                                   Organization;
Powers

Each of the Borrower and the Subsidiaries is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, has all requisite corporate or other organizational
power and authority to carry on its business as now conducted and, except where
the failure to do so, individually or in the aggregate, would not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business
in, and is in good standing in, every jurisdiction where such qualification is
required by applicable law.

Section 4.2.                                   Authorization;
Enforceability

The Transactions to be entered into by each of the
Borrower and the Subsidiaries are within the corporate, partnership or other
analogous powers of each of the Borrower and the Subsidiaries to the extent it
is a party thereto and have been duly authorized by all necessary corporate,
partnership or other analogous and, if required, equity holder action.  Each Loan Document and each Lender Authorization
has been duly executed and delivered by each of the Borrower and the
Subsidiaries to the extent it is a party thereto and constitutes a legal, valid
and binding obligation thereof, enforceable against such Borrower or Subsidiary
party thereto in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law) and the implied
covenants of good faith and fair dealing.

Section 4.3.                                   Governmental
Approvals; No Conflicts

The Transactions (i) do not require any consent or
approval of, registration or filing with, or any other action by, any
Governmental Authority, except (a) such as have been or prior to or concurrently

 57
 

 

with the consummation of the Transactions will be
obtained or made and are or prior to or concurrently with the consummation of
the Transactions will be in full force and effect (except such consents,
approvals, registrations or filings which will be required at the time, if any,
of the exercise of remedies under the Loan Documents by the Administrative
Agent and the Lenders), (b) notices, if any, required to be filed with the
FCC or any applicable PUC after the consummation of the Transactions and
(c) consents, approvals, registrations, filings or actions which the
failure to obtain or make would not reasonably be expected to result in a
Material Adverse Effect, (ii) will not violate any applicable law or regulation
or the charter, by-laws or other organizational documents of the Borrower or
any of the Subsidiaries or any order of any Governmental Authority (subject to
compliance with any applicable law or regulation which, upon the exercise of
remedies hereunder by the Administrative Agent and the Lenders, requires filing
with or approval of a Governmental Authority), except, in the case of any such
applicable law or regulation, for such violations that would not reasonably be
expected to result in a Material Adverse Effect, (iii) will not violate or
result in a default under any material indenture, agreement or other instrument
binding upon the Borrower or any of the Subsidiaries or its assets, or give
rise to a right thereunder to require any payment to be made by the Borrower or
any of the Subsidiaries, or result in a default under either the 93⁄4% Senior
Note Indenture or the 101⁄2% Senior Note Indenture, except for such violations
and defaults that would not reasonably be expected to result in a Material
Adverse Effect and (iv) will not result in the creation or imposition of any
Lien on any asset of the Borrower or any of the Subsidiaries (other than Liens
permitted by Section 7.2).

Section 4.4.                                   Financial
Condition

The Borrower has heretofore furnished to the
Administrative Agent the following:

(i)                                     with
respect to Insight Holdings, its Form 10-Q for the quarterly period ended June
30, 2006, and its Form 10-K for its fiscal year ended December 31, 2005;

(ii)                                  with
respect to Insight Midwest, its Form 10-Q for the quarterly period ended
June 30, 2006, and its Form 10-K for its fiscal year ended
December 31, 2005;

(iii)                               with
respect to the Borrower (A) the consolidated balance sheet and statements of
operations and members’ capital and cash flows thereof as of and for the fiscal
year ended December 31, 2005, reported on by Ernst & Young LLP, independent
public accountants, (B) the consolidated balance sheet and statements of
operations and members’ capital and cash flows thereof as of and for the fiscal
quarter thereof ended June 30, 2006 certified by its chief financial
officer, and (C) a consolidated balance sheet and statements of operations
and members’ capital and cash flows as of and for the fiscal quarter ended
June 30, 2006, adjusted to give effect on a Pro Forma Basis to each of the
Transactions, certified by its chief financial officer; and

(iv)                              with
respect to the Borrower and the Subsidiaries, forecasts of financial performance
through fiscal year 2011 (the “Forecasts”).

The financial statements referred to above (other than
in item (C) in clause (iii) above and the Forecasts) present fairly, in all
material respects, the financial position and results of operations and cash
flows of such Persons as of such dates and for the indicated periods in accordance
with GAAP, subject in the case of the quarter-end statements to year-end audit
adjustments and the absence of footnotes. 
The financial statements referred to in item (C) in clause (iii) above
have been prepared in accordance with GAAP on a consistent basis throughout the
indicated periods and present fairly, in all material respects, the pro forma
financial position, results of operations and changes in financial position of
the Borrower as of the indicated dates and for the indicated periods.  The Forecasts furnished to the Lenders have
been prepared in good faith by Borrower and based on assumptions believed to be
reasonable at the time they were made,

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it being understood that projections by their nature
are uncertain and no assurance is being given that the results reflected in
such projected financial information will be achieved.  Since December 31, 2005, there has
been no material adverse change in the business, assets, operations or
financial condition of the Borrower and the Subsidiaries taken as a whole; provided
that the Exit Event, in and of itself (including all changes in the business,
assets, operations or financial condition of the Borrower and the Subsidiaries
that occur or arise to the extent such changes are a direct result of the Exit
Event), shall not constitute such a material adverse change.

Section 4.5.                                   Properties

(a)                                  Each
of the Borrower and the Subsidiaries has good title to, or valid leasehold interests
in, all its real and tangible personal property, except as would not reasonably
be expected to have a Material Adverse Effect.

(b)                                 Each
of the Borrower and the Subsidiaries owns, or is entitled to use, all United
States trademarks, trade names, copyrights, patents and trade secrets material
to its business, and the use thereof by the Borrower and the Subsidiaries does
not infringe upon the rights of any other Person, except for any such failure
to own or be entitled to use or infringements that, individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse
Effect.

Section 4.6.                                   Litigation
and Environmental Matters

(a)                                  There
are no actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Borrower, threatened
against the Borrower or any of the Subsidiaries (i) that would reasonably be
expected, individually or in the aggregate, to result in a Material Adverse
Effect (other than the Disclosed Matters) or (ii) that relate to the execution,
delivery, validity or enforceability of any Loan Document or the performance of
any of the Transactions by any of the parties thereto.

(b)                                 Except
for the Disclosed Matters and except with respect to any other matters that, individually
or in the aggregate, would not reasonably be expected to result in a Material
Adverse Effect, neither the Borrower nor any of the Subsidiaries (i) has failed
to comply with any Environmental Law or to obtain, maintain or comply with any
permit, license or other approval required under any Environmental Law, (ii)
has become subject to any Environmental Liability, (iii) has received written
notice of any claim with respect to any Environmental Liability or (iv) knows
of any basis for any Environmental Liability.

Section 4.7.                                   Compliance
with Laws and Agreements

Each of the Borrower and the Subsidiaries is in compliance
with all laws, regulations (including the Communications Act and State Law) and
orders of any Governmental Authority (including the FCC and State PUCs)
applicable to it or its property and all indentures, agreements and other instruments
binding upon it or its property, except, in each case, where the failure to do
so, individually or in the aggregate, would not reasonably be expected to
result in a Material Adverse Effect.  No
Default has occurred and is continuing.

Section 4.8.                                   Investment
Company Status

None of the Borrower nor any of the Subsidiaries is an
“investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940.

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Section 4.9.                                   Taxes

Each of the Borrower and the Subsidiaries has timely
filed or caused to be filed all Tax returns and reports required to have been
filed and has paid or caused to be paid all Taxes required to have been paid by
it, except (i) Taxes that are being contested in good faith by appropriate
proceedings and for which the Borrower or such Subsidiary, as applicable, has
set aside on its books adequate reserves to the extent required by GAAP or (ii)
to the extent that the failure to do so would not reasonably be expected to
result in a Material Adverse Effect.

Section 4.10.                             ERISA

No ERISA Event has occurred or is reasonably expected
to occur that, when taken together with all other such ERISA Events for which
liability is reasonably expected to occur, would reasonably be expected to
result in a Material Adverse Effect.  The
present value of all accumulated benefit obligations under each Plan (based on
the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed by more than $5,000,000 the fair
market value of the assets of such Plan, and the present value of all
accumulated benefit obligations of all underfunded Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of the date of the most recent financial statements
reflecting such amounts, exceed by more than $1,000,000 the fair market value
of the assets of all such underfunded Plans.

Section 4.11.                             Disclosure

As of the Closing Date, the Borrower has disclosed to
the Credit Parties all agreements, instruments and corporate or other restrictions
to which it or any of the Subsidiaries is subject, and all other matters known
to it, that, individually or in the aggregate, would reasonably be expected to
result in a Material Adverse Effect. 
None of the reports, financial statements, certificates or other
information (other than the projections, budgets or other estimates, or
information of a general economic or industry nature concerning any Holding
Company, Parent, the Borrower or any Subsidiary) furnished by or on behalf of
the Borrower or any Subsidiary to any Credit Party in connection with the
negotiation of the Loan Documents or delivered thereunder (as modified or
supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not materially misleading; provided that, with respect to projected
financial information, the Borrower represents only that such information was
prepared in good faith based upon assumptions believed to be reasonable at the
time they were made, it being understood that projections by their nature are
uncertain and no assurance is being given that the results reflected in such
projected financial information will be achieved.

Section 4.12.                             Subsidiaries

Schedule 4.12 sets forth the name of, the chief executive office
of, and the ownership interest of the Borrower in, each Subsidiary and
identifies each Subsidiary that is a Subsidiary Guarantor, in each case on the
Closing Date.

Section 4.13.                             Insurance

Schedule 4.13 sets forth a description of all insurance maintained
by or on behalf of the Borrower and the Subsidiaries on the Closing Date.  As of the Closing Date, all premiums in respect
of such insurance that are due and payable have been paid.

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Section 4.14.                             Labor
Matters

Except for the Disclosed Matters and except as would
not be reasonably likely to result in a Material Adverse Effect, (i) there are
no strikes, lockouts or slowdowns against the Borrower or any Subsidiary
pending or, to the knowledge of the Borrower, threatened, (ii) the hours worked
by and payments made to employees of the Borrower and the Subsidiaries have not
been in violation of the Fair Labor Standards Act or any other applicable
Federal, state, local or foreign law dealing with such matters, (iii) all
material payments due from the Borrower or any Subsidiary, or for which any
claim may be made against the Borrower or any Subsidiary, on account of wages
and employee health and welfare insurance and other benefits, have been paid or
accrued as a liability on the books of the Borrower or such Subsidiary and (iv)
the consummation of the Transactions will not give rise to any right of
termination or right of renegotiation on the part of any union under any
collective bargaining agreement to which the Borrower or any Subsidiary is
bound.

Section 4.15.                             Solvency

Immediately after the consummation of each Transaction
on the Closing Date (assuming the Redemption has occurred on the Closing Date),
(i) the fair value of the assets of the Borrower and the Subsidiaries, taken as
a whole, at a fair valuation, will exceed their debts and liabilities,
subordinated, contingent or otherwise; (ii) the present fair salable value of
the property of the Borrower and the Subsidiaries, taken as a whole, will be
greater than the amount that will be required to pay the probable liability of
their debts and other liabilities, subordinated, contingent or otherwise, as
such debts and other liabilities become absolute and matured; (iii) each of the
Borrower and the Subsidiary Guarantors will be able to pay its debts and
liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured; and (iv) each of the Borrower and the
Subsidiary Guarantors will not have unreasonably small capital with which to
conduct the business in which it is engaged as such business is now conducted
and is proposed to be conducted following such date.

Section 4.16.                             Security
Documents

The Security Agreement is effective to create in favor
of the Administrative Agent, for the benefit of the Secured Parties, a legal,
valid and enforceable security interest in the Collateral (as defined in the
Security Agreement) to the extent provided therein and, when (i) the pledged
certificates, if any evidencing such Collateral are delivered to the
Administrative Agent and (ii) financing statements in appropriate form are
filed in the offices specified on Schedule 5 to the Perfection Certificate as
of the Closing Date (subject to all other applicable filings under the Uniform
Commercial Code or otherwise that are required under the Security Documents to
be made after the date hereof) are made, the Security Agreement shall
constitute a fully perfected Lien on, and security interest in, all right,
title and interest of the grantors thereunder in such Collateral to the extent
that a security interest may be perfected by filing, recording or registering a
financing statement or analogous document, or by the secured party’s taking possession,
in the State of New York pursuant to the Uniform Commercial Code of the State
of New York, in each case prior and superior in right to any other Person, other
than with respect to Liens expressly permitted by Section 7.2 and except for
any such Collateral as to which the representations and warranties in this
Section would not be true solely by virtue of such Collateral having been used
or disposed of in a manner expressly permitted by this Agreement or the
Security Agreement.

Section 4.17.                             Federal
Reserve Regulations

(a)                                  None
of the Borrower nor any of the Subsidiaries is engaged principally, or as one
of its important activities, in the business of extending credit for the
purpose of buying or carrying Margin Stock.

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(b)                                 No
part of the proceeds of any Loans, and no extensions of credit hereunder, will
be used for “buying” or “carrying” any “margin stock” within the respective
meanings of each of the quoted terms under Regulation U as now and from time to
time hereafter in effect or for any purpose that violates the provisions of the
regulations of the Board.

Section 4.18.                             Use
of Proceeds

The Borrower represents and warrants that it will use
the proceeds of (a) the Term Loans on the Closing Date to finance the
Transactions, (b) the Revolving Loans and Letters of Credit to finance, in
part, the Transactions and for general corporate purposes, including, for the
avoidance of doubt, making Restricted Payments permitted pursuant hereto and
(c) each Additional Term Loan, if any, in accordance with the Effective Term
Loan Supplement applicable thereto.  No
part of the proceeds of any Loan or any Letter of Credit has been or will be
used, whether directly or indirectly, and whether immediately, incidentally or
ultimately, to purchase, acquire or carry any Margin Stock or for any purpose
that entails a violation of any of the regulations of the Board, including
Regulations T, U and X.

ARTICLE 5

CONDITIONS

Section 5.1.                                   Conditions
to Initial Extension of Credit.

The agreement of each Lender to make the initial
extension of credit requested to be made by it is subject to the satisfaction
(or waiver), prior to or substantially concurrently with the Closing Date, of
the following conditions precedent:

(a)                                  Credit
Agreement; Security Documents.  The
Administrative Agent shall have received (i) this Agreement, executed and
delivered by the Borrower and Insight Midwest, (ii) the Security Agreement,
executed and delivered by the Borrower and each Guarantor and (iii) each other
Loan Document, executed and delivered by each Loan Party signatory thereto.

(b)                                 Refinancing.  The Refinancing shall have occurred
substantially concurrently with the initial funding of the Loans.

(c)                                  Pro
Forma Balance Sheet; Financial Statements; Projections.  The Administrative Agent and the Arrangers
shall have received (i) a pro forma balance sheet reflecting the Refinancing
and the other Transactions for the Borrower and the Subsidiaries on a Pro Forma
Basis for the fiscal quarter ended June 30, 2006, (ii) unaudited consolidated
balance sheets and related statements of income, members’ equity and cash flows
and related notes thereto for the Borrower and the Subsidiaries as of June 30,
2006, and (iii) the Forecasts.

(d)                                 Fees.  The Agents and the Arrangers shall have
received on or before the Closing Date all fees required to be paid by the
Borrower (including those to be passed on to the Lenders), and all reasonable
out-of-pocket expenses required to be paid by the Borrower for which reasonably
detailed invoices have been presented at least two Business Days prior to the
Closing Date (including reasonable fees, disbursements and other charges of counsel
to the Administrative Agent and the Arrangers).

(e)                                  Solvency
Certificate.  The Administrative
Agent and the Arrangers shall have received a solvency certificate signed by
the chief financial officer on behalf of the Borrower and the Subsidiaries
substantially in the form of Exhibit C.

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(f)                                    Lien
Searches.  The Administrative Agent
and the Arrangers shall have received the results of a recent lien search in
each of the jurisdictions in which Uniform Commercial Code financing
statements, or other filings or recordations should be made to evidence or
perfect security interests in the Collateral, and such search shall reveal no
liens on any of the Collateral, except for Liens permitted by Section 7.2 or
liens to be discharged prior to or on the Closing Date.

(g)                                 Closing
Certificate.  The Administrative
Agent shall have received a certificate of the Loan Parties, dated the Closing
Date, substantially in the form of Exhibit G, with appropriate
insertions and attachments.

(h)                                 Legal
Opinions.  The Administrative Agent
shall have received the following executed legal opinions:

(i)                  the legal
opinion of Dow Lohnes PLLC, special counsel to the Loan Parties, substantially
in the form of Exhibit F-1;

(ii)               the legal opinion
of Debevoise & Plimpton LLP,
special New York counsel to the Loan Parties, substantially in the form of Exhibit
F-2; and

(iii)            the legal opinion of Richards, Layton & Finger, P.A.,
special Delaware counsel to the Loan Parties, substantially in the form of Exhibit
F-3.

(i)                                     Pledged
Stock; Stock Powers. The Collateral Agent shall have received the certificates,
if any, representing the certificated shares of Equity Interests pledged on the
Closing Date pursuant to the Security Agreement, together with an undated stock
power for each such certificate executed in blank by a duly authorized officer
of the pledgor thereof.

(j)                                     Filings,
Registrations and Recordings.  Each
Uniform Commercial Code financing statement required by the Security Documents
to be filed in order to create in favor of the Administrative Agent, for the
benefit of the Lenders, a perfected Lien on the Collateral described therein
with the priority provided for in the Security Documents, shall have been
delivered to the Administrative Agent in proper form for filing.

(k)                                  USA
Patriot Act.  The Lenders shall have
received, sufficiently in advance of the Closing Date, all documentation and
other information reasonably requested by the Lenders in order to enable
compliance with applicable “know your customer” and anti-money laundering rules
and regulations, including the Act (as defined in Section 10.13), including
the information described in Section 10.13.

(l)                                     Commitments.  The Borrower shall have received commitments
from Lenders for the full amount of the Commitments.

(m)                               Compliance
with Material Agreements.  There
shall be no material default under the Partnership Agreement or the Notes
resulting from the Refinancing or the other Transactions.

(n)                                 Representations
and Warranties.  The representations and warranties of
the Loan Parties set forth in the Loan Documents shall be true and correct in
all material respects on and as of the Closing Date (except (i) to
the extent that such representations and warranties relate to an earlier date,
in which case such representations and warranties shall be true and correct in
all material respects as of such earlier date and (ii) that any
representation and warranty that is qualified as to “materiality” or “Material
Adverse Effect” shall be true and correct in all respects).

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(o)                                 No
Default.  No Default shall have occurred and be continuing.

The Administrative Agent shall notify the Borrower and
the Credit Parties of the Closing Date and such notice shall be conclusive and
binding.

Section 5.2.                                   Conditions
to Delayed Draws

The
obligation of each Lender to make A Delayed Draw Term Loans on the occasion of
the A Delayed Draw Term Loan Funding Date and B Delayed Draw Term Loans on the
occasion of the B Delayed Draw Term Loan Funding Date is irrevocable from and
after the Closing Date until terminated pursuant to Section 2.5(a).

Section 5.3.                                   Conditions
to Future Credit Events

The obligation of each Lender to make a Revolving Loan
on the occasion of any Borrowing after the Closing Date (or any extension of
credit pursuant to Section 2.1(d) or 2.5(d)), and of the Issuing Banks to
issue, amend, renew or extend a Letter of Credit, is subject to the
satisfaction of the following conditions:

(a)                                  The
representations and warranties of the Loan Parties set forth in the Loan
Documents shall be true and correct in all material respects on and as of the
date of such Borrowing or the date of such issuance, amendment, renewal or
extension, as applicable (except (i) to the extent that such
representations and warranties relate to an earlier date, in which case such
representations and warranties shall be true and correct in all material
respects as of such earlier date and (ii) that any representation and
warranty that is qualified as to “materiality” or “Material Adverse Effect”
shall be true and correct in all respects); and

(b)                                 at
the time of and immediately after giving effect to such Borrowing or such issuance,
amendment, renewal or extension, as applicable, no Default (without giving
effect to Section 7.14(f)) shall have occurred and be continuing.

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

ARTICLE 6

AFFIRMATIVE
COVENANTS

Until the Revolving Commitments have expired or been
terminated and the principal of and interest on each Loan and all fees and
other amounts payable hereunder (other than contingent or indemnification
obligations not then due) shall have been paid in full and all Letters of
Credit have expired (or have been otherwise provided for in full in a manner
reasonably satisfactory to the relevant Issuing Bank) and all LC Disbursements
have been reimbursed, the Borrower covenants and agrees with the Lenders that:

Section 6.1.                                   Financial
Statements and Other Information

The Borrower will furnish to the Administrative Agent
for further prompt distribution (which distribution shall take place no later
than 5 Business Days following receipt by the Administrative Agent) to each
Lender:

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(a)                                  within
90 days after the end of each fiscal year, the Borrower’s audited consolidated
balance sheet and related statements of operations and members’ capital and
cash flows as of the end of and for such year, setting forth in each case in
comparative form the figures for the previous fiscal year, all reported on by
Ernst & Young LLP or other independent public accountants of recognized
national standing (without a “going concern” or like qualification or exception
and without any qualification or exception as to the scope of such audit) to
the effect that such consolidated financial statements present fairly in all
material respects the financial condition and results of operations of the
Borrower and the consolidated Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied;

(b)                                 within
45 days after the end of each of the first three fiscal quarters of each fiscal
year, the Borrower’s consolidated balance sheet and related statements of
operations and members’ capital and cash flows as of the end of and for such
fiscal quarter and the then elapsed portion of the fiscal year, setting forth
in each case in comparative form the figures for the corresponding period or
periods of (or, in the case of the balance sheet, as of the end of) the
previous fiscal year, all certified by a Financial Officer as presenting fairly
in all material respects the financial condition and results of operations of
the Borrower and the consolidated Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied, subject to normal year-end audit
adjustments and the absence of footnotes;

(c)                                  concurrently
with any delivery of financial statements under paragraph (a) or (b) above, a
certificate of a Financial Officer of the Borrower (i) certifying as to
whether, to such Financial Officer’s actual knowledge, a Default has occurred
and is continuing and, if a Default has occurred and is continuing, specifying
the details thereof and any action taken or proposed to be taken with respect
thereto, (ii) setting forth (A) reasonably detailed calculations demonstrating
compliance with the Financial Covenants as of the most recent fiscal quarter
end contemplated by such financial statements, (B) the Subsidiary Guarantors as
of the date of such certificate and (C) in the case of a delivery of financial
statements under paragraph (a) above, a reasonably detailed calculation of
Excess Cash Flow for the fiscal year covered by such financial statements and
(iii) stating whether any change in GAAP or in the application thereof has
occurred since the date of the audited financial statements referred to in
Section 4.4 and, if any such change has occurred, specifying the effect of such
change on the financial statements accompanying such certificate;

(d)                                 promptly
after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed by the Borrower, any
Subsidiary, the Parent, any issuer of any outstanding 93⁄4% Senior Notes (or any
Refinancing Indebtedness in respect thereof) (to the extent any Holding Company
has an obligation to pay the 93⁄4% Senior Notes or such Refinancing Indebtedness)
or any outstanding 121⁄4% Senior Notes (or any Refinancing Indebtedness in respect
thereof) (to the extent any Holding Company has an obligation to pay the 121⁄4%
Senior Notes or such Refinancing Indebtedness) with the Securities and Exchange
Commission, or any Governmental Authority succeeding to any or all of the
functions of said Commission, or with any national securities exchange, as the
case may be; and

(e)                                  promptly
following any request therefor, such other information regarding the
operations, business affairs and financial condition of the Borrower or any
Subsidiary, or compliance with the terms of the Loan Documents, as the
Administrative Agent or any Lender (through the Administrative Agent) may reasonably
request;

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provided that with respect to the first obligation to deliver
financial statements under paragraph (a) or (b) of this Section 6.1 arising
after the Exit Event Effective Date, the Borrower shall have an additional 15
days to deliver such financial statements.

Documents required to be delivered pursuant to this
Section 6.1 may be delivered by posting such documents electronically with
notice of such posting to the Administrative Agent and if so posted, shall be
deemed to have been delivered on the date on which such documents are posted on
the Borrower’s behalf on IntraLinks or another similar electronic
system (the “Platform”), if any, to which each Lender and the Administrative
Agent have access (whether a commercial, third-party website or whether
sponsored by the Administrative Agent). 
The Administrative Agent’s obligation to deliver information pursuant to
this Section 6.1 may be discharged by posting such information on the Platform
in accordance with the remaining provisions of this paragraph.  The Borrower hereby
acknowledges that (i) the Administrative Agent will make available to the
Lenders on a confidential basis materials and/or information provided by or on
behalf of the Borrower hereunder (collectively, “Borrower Materials”) by
posting the Borrower Materials on the Platform and (ii) certain of the Lenders
may be “public-side” Lenders (i.e., Lenders that do not wish to receive
material non-public information with respect to the Borrower or its securities)
(each, a “Public Lender”).  The
Borrower may mark Borrower Materials that the Borrower intends to be made
available to Public Lenders clearly and conspicuously as “PUBLIC.”  By designating Borrower Materials as “PUBLIC,”
the Borrower authorizes such Borrower Materials to be made available to a
portion of the Platform designated “Public Investor,” which is intended to
contain only information that (x) prior to any public offering of securities by
the Borrower, is of a type that would be contained in a customary offering
circular for an offering of debt securities made in reliance on Rule 144A under
the Securities Act or (y) following any public offering of securities by the
Borrower, is either publicly available or not material information (though it
may be sensitive and proprietary) with respect to the Borrower or its
securities for purposes of United States Federal and State securities
laws.  Any Borrower Materials not marked “PUBLIC”
shall be treated as if it contains material non-public information with respect
to the Borrower or its securities. 
Notwithstanding the foregoing, the Borrower is under no obligation to
mark any Borrower Materials as “PUBLIC.”

Section 6.2.                                   Notices
of Material Events

The Borrower will furnish to the Administrative Agent
for further distribution to each Lender prompt written notice of a Responsible
Officer obtaining actual knowledge of any of the following:

(a)                                  the
occurrence of any Default;

(b)                                 the
filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against the Borrower or any Affiliate
thereof that, in either case, would reasonably be expected to result in a
Material Adverse Effect;

(c)                                  the
occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, would reasonably be expected to result in a Material
Adverse Effect;

(d)                                 the
delivery or receipt of an Exit Notice (as such term is defined in the Partnership
Agreement) under the Partnership Agreement or the execution of definitive
agreements between the parties to the Partnership Agreement in connection with
an alternative exit process; and

(e)                                  any
other development that results in, or would reasonably be expected to result
in, a Material Adverse Effect.

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Each notice delivered under this Section shall be
accompanied by a statement of a Financial Officer or other executive officer of
the Borrower setting forth the details of the event or development requiring
such notice and any action taken or proposed to be taken with respect thereto.

Section 6.3.                                   Existence;
Conduct of Business

The Borrower will, and will cause each of the
Subsidiaries to, do or cause to be done all things reasonably necessary to
preserve, renew and keep in full force and effect its legal existence and the
rights, licenses, permits, privileges and franchises material to the conduct of
its business, except, in each case, as otherwise permitted by Section 7.3 or as
contemplated by the Exit Event and except to the extent that failure to do so
would not reasonably be expected to result in a Material Adverse Effect.

Section 6.4.                                   Payment
and Performance of Obligations

The Borrower will, and will cause each of the
Subsidiaries to, pay or perform its obligations, including Tax liabilities,
that, if not paid or performed, would reasonably be expected to result in a
Material Adverse Effect before the same shall become delinquent or in default,
except where (i) the validity or amount thereof is being contested in good
faith by appropriate proceedings, (ii) the Borrower or such Subsidiary has set
aside on its books adequate reserves with respect thereto in accordance with
GAAP and (iii) the failure to make payment pending such contest would not
reasonably be expected to result in a Material Adverse Effect.

Section 6.5.                                   Maintenance
of Properties

Except as otherwise permitted in Section 7.5, the
Borrower will, and will cause each of the Subsidiaries to, keep and maintain
all tangible property material to the conduct of their businesses, taken as a
whole, in good working order and condition, ordinary wear and tear (and damage
caused by casualty) excepted.

Section 6.6.                                   Books
and Records; Inspection Rights

The Borrower will, and will cause each of the
Subsidiaries to, keep proper books of record and account in which full, true
and correct entries are made of all dealings and transactions in relation to
its business and activities.  The
Borrower will, and will cause each of the Subsidiaries to, permit any
representatives designated by the Administrative Agent or any Lender, upon
reasonable prior notice, to visit and inspect its properties, to examine and
make extracts from its books and records, and to discuss its affairs, finances
and condition with its officers and independent accountants, all at such
reasonable times as reasonably requested (provided that such visits
shall be coordinated by the Administrative Agent, and in no event shall there
be more than one such visit per year except during the continuance of an Event
of Default).

Section 6.7.                                   Compliance
with Laws

The Borrower will, and will cause each of the
Subsidiaries to, comply with all laws, rules, regulations and orders of any
Governmental Authority applicable to it or its property, except where the
failure to do so, individually or in the aggregate, would not reasonably be
expected to result in a Material Adverse Effect.

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Section 6.8.                                   Insurance

The Borrower will, and will cause each of the
Subsidiaries to, maintain, with financially sound and reputable insurance
companies, (i) adequate insurance for its insurable properties, all to such
extent and against such risks, including fire, casualty, business interruption
and other risks insured against by extended coverage, as is customary with
companies in the same or similar businesses operating in the same or similar
locations and (ii) such other insurance as is required pursuant to the terms of
any Security Document.

Section 6.9.                                   Casualty
and Condemnation

The Borrower will
furnish to the Administrative Agent for further distribution to the Lenders
prompt written notice of any casualty or other insured damage to any material
portion of any property owned or held by or on behalf of itself or any
Subsidiary with a fair market value immediately prior to such casualty or
insured damage of at least $1,000,000, or the commencement of any action or
proceeding for the taking of any property or any part thereof or interest
therein, with a fair market value immediately prior to such taking of at least
$1,000,000, under
power of eminent domain or by condemnation or similar proceeding.

Section 6.10.                             Additional
Subsidiaries

(a)                                  If
any Wholly-Owned Domestic Subsidiary, other than an Immaterial Subsidiary or a
Domestic Subsidiary of a Foreign Subsidiary, is formed or acquired after the
Closing Date (which, for the purposes of this paragraph, shall include (x) any
Domestic Subsidiary that was previously not a Wholly-Owned Subsidiary that
becomes a Wholly-Owned Subsidiary and (y) any Domestic Subsidiary that was
previously an Immaterial Subsidiary and that ceases to be an Immaterial
Subsidiary), the Borrower will notify the Administrative Agent in writing
thereof not later than the tenth Business Day after the date on which such
Subsidiary is formed or acquired and (a) the Borrower will cause such Subsidiary
to (i) execute and deliver each applicable Guarantee Document (or otherwise
become a party thereto in the manner provided therein) and become a party to
each applicable Security Document in the manner provided therein, in each case
not later than the tenth Business Day after the date on which such Subsidiary
is formed or acquired and (ii) promptly take such actions to create and perfect
Liens on such Subsidiary’s Collateral (as defined in the Security Agreement) as
the Administrative Agent shall reasonably request and (b) if any Equity
Interests issued by any such Subsidiary are owned or held by or on behalf of
the Borrower or any Subsidiary Guarantor, the Borrower will cause such Equity
Interests to be pledged pursuant to the Security Documents not later than the
tenth Business Day after the date on which such Subsidiary is formed or
acquired.

(b)                                 If
any first tier Foreign Subsidiary is formed or acquired after the Closing Date
by any Loan Party (which, for the purposes of this paragraph, shall include any
Foreign Subsidiary that was previously an Immaterial Subsidiary and that ceases
to be an Immaterial Subsidiary), the Borrower will notify the Administrative
Agent in writing thereof not later than the tenth Business Day after the date
on which such Subsidiary is formed or acquired and, if any Equity Interests
issued by any such Subsidiary are owned or held by or on behalf of the Borrower
or any Subsidiary Guarantor, the Borrower will cause such Equity Interests to
be pledged pursuant to the Security Documents not later than the tenth Business
Day after the date on which such Subsidiary is formed or acquired or such later
date as the Administrative Agent may reasonably agree (provided, that in
no event shall more than 65% of the total outstanding Equity Interests of any
Foreign Subsidiary be required to be so pledged).

(c)                                  Notwithstanding
the foregoing, to the extent any new Subsidiary is created solely for the
purpose of consummating a merger transaction pursuant to an acquisition
permitted by Section 7.4,

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and such new Subsidiary at no time holds any assets or liabilities
other than any merger consideration contributed to it contemporaneously with
the closing of such merger transaction, such new Subsidiary shall not be
required to take the actions set forth in Section 6.10(a) or 6.10(b), as
applicable, until the respective acquisition is consummated (at which time the
surviving entity of the respective merger transaction shall be required to so
comply within ten Business Days).

Section 6.11.                             Further
Assurances

(a)                                  The
Borrower will, and will cause each Subsidiary Guarantor to, execute any and all
further documents, financing statements, agreements (including guarantee
agreements and security agreements) and instruments, and take all such further
actions (including the filing and recording of financing statements and other
documents), that may be required under any applicable law, or which the
Administrative Agent may reasonably request, to grant, preserve, protect or perfect
(including as a result of any change in applicable law) the Liens created or
intended to be created by the Security Documents or the validity or priority of
any such Lien, all at the expense of the Borrower.  The Borrower also agrees to provide to the
Administrative Agent, from time to time upon request, evidence reasonably
satisfactory to the Administrative Agent as to the perfection and priority of
the Liens created or intended to be created by the Security Documents.

(b)                                 If
any Person that is wholly-owned by any Holding Company acquires (by any means)
from Parent 100% of the Equity Interests of the Borrower (each such Person a “Newco”),
(i) the Borrower will notify the Administrative Agent in writing thereof not
later than the tenth Business Day prior to the date of such acquisition, (ii)
the Borrower will cause such Newco to become a party to (x) the Guarantee
Agreement by executing and delivering a supplement to the Guarantee Agreement
pursuant to Section 20 thereof and (y) the Security Agreement by executing and
delivering a supplement to the Security Agreement pursuant to Section 23
thereof, (iii) substantially simultaneously with such acquisition, the Borrower
will, and will cause such Newco to, execute and/or deliver such customary lien
search results, organizational documents, good standing certificates, officer’s
certificates, legal opinions and other items as the Administrative Agent may
reasonably request in connection therewith, and (iv) assuming that the Loan
Parties are in compliance with this Section 6.11 then notwithstanding anything
to the contrary contained in any Loan Document, the transfer of such Equity
Interests by the predecessor Parent to Newco in connection with such
acquisition is hereby expressly permitted and the predecessor Parent shall be released
from its obligations under the Loan Documents and shall cease to be a Loan
Party upon satisfaction of the conditions set forth in this Section 6.11(b)
with respect to the applicable Newco.

Section 6.12.                             Environmental
Compliance

The Borrower will, and will cause each Subsidiary to,
use and operate all of its facilities and property in compliance with all
Environmental Laws, keep all necessary permits, approvals, certificates,
licenses and other authorizations relating to environmental matters in effect
and remain in compliance therewith, and handle all Hazardous Materials in
compliance with all applicable Environmental Laws, except where noncompliance
with any of the foregoing would not reasonably be expected to have a Material
Adverse Effect.

Section 6.13.                             Use
of Proceeds of Delayed Draw Loans.

Borrower will promptly use the proceeds of the Delayed
Draw Term Loans to finance the Redemption and the payment of premiums, fees,
interest and expenses in connection therewith.

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ARTICLE 7

NEGATIVE COVENANTS

Until the Revolving Commitments have expired or been
terminated and the principal of and interest on each Loan and all fees and
other amounts payable hereunder (other than contingent or indemnification
obligations not then due) shall have been paid in full and all Letters of
Credit have expired (or have been otherwise provided for in full in a manner
reasonably satisfactory to the relevant Issuing Bank) and all LC Disbursements
have been reimbursed, the Borrower covenants and agrees with the Lenders that:

Section 7.1.                                   Indebtedness;
Equity Interests

The Borrower will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Indebtedness,
except:

(a)                                  Indebtedness
under the Loan Documents;

(b)                                 Indebtedness
existing on the Closing Date and set forth in Schedule 7.1, and Refinancing
Indebtedness with respect thereto;

(c)                                  Indebtedness
of the Borrower or any Subsidiary incurred to finance the acquisition,
construction or improvement of any fixed or capital assets, including Capital
Lease Obligations and any Indebtedness assumed in connection with the
acquisition of any such assets or secured by a Lien on any such assets prior to
the acquisition, construction or improvement thereof, and extensions, renewals
and replacements of any such Indebtedness that do not increase the outstanding
principal amount thereof (plus all accrued and unpaid interest thereon and the
amount of any premium necessary to accomplish such extension, renewal or
replacement and expenses incurred in connection therewith), provided
that (i) such Indebtedness is incurred prior to or within 270 days after
such acquisition or the completion of such construction or improvement and
(ii) the aggregate principal amount of Indebtedness permitted by this paragraph
(c) shall not, without duplication, exceed $75,000,000 at any time outstanding;

(d)                                 Indebtedness
of any Person that becomes a Subsidiary after the Closing Date and Refinancing
Indebtedness in respect thereof, provided that (i) such Indebtedness
exists at the time such Person becomes a Subsidiary and is not created in
contemplation of or in connection with such Person becoming a Subsidiary and
(ii) the Borrower is in compliance with the Financial Covenants on a Pro Forma
Basis at the time such Person becomes a Subsidiary;

(e)                                  Indebtedness
(i) of the Borrower owed to any Subsidiary, (ii) of any Subsidiary
Guarantor owed to the Borrower or any other Subsidiary, (iii) of any
Non-Guarantor Subsidiary owed to any other Non-Guarantor Subsidiary and (iv) of
any Non-Guarantor Subsidiary owed to
the Borrower or any Subsidiary Guarantor
in an aggregate principal amount for all such Indebtedness in the case of this
clause (iv), when combined with the aggregate principal amount of all
outstanding Guarantees permitted by clause (iv) in paragraph (h) below, not to
exceed $40,000,000 at any one time outstanding;

(f)                                    deferred
Management Fees;

(g)                                 unsecured
Indebtedness of the Borrower having no maturity or scheduled amortization prior
to the date that is one year after the later of the B Term Maturity Date and
the latest

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final stated maturity date of any
Indebtedness incurred pursuant to Section 2.1(d) or 2.5(d) that is outstanding
(or in respect of which commitments are effective) at the time of the
incurrence of such unsecured Indebtedness, so long as (i) both before and after giving effect
to the incurrence thereof, no Event of Default shall exist and be continuing,
(ii) on a Pro Forma Basis, the Financial Covenants shall be satisfied,
(iii) no Subsidiary will be permitted to Guarantee such
Indebtedness and (iv) the covenants and default provisions applicable to such
Indebtedness shall not be materially more restrictive taken as a whole than
those contained in this Agreement taken as a whole;

(h)                                 Guarantees
(i) by the Borrower of Indebtedness of any Subsidiary Guarantor, (ii) by
any Subsidiary Guarantor of Indebtedness of the Borrower or any other
Subsidiary Guarantor, (iii) by any Non-Guarantor Subsidiary of Indebtedness of
any other Non-Guarantor Subsidiary and (iv) by the Borrower or any Subsidiary
Guarantor of Indebtedness of any Non-Guarantor Subsidiary in an aggregate
principal amount for all such Guarantees in the case of this clause (iv), when
combined with the aggregate principal amount of all outstanding Indebtedness
permitted by clause (iv) in paragraph (e) above, not to exceed $40,000,000 at
any one time outstanding;

(i)                                     Indebtedness
under Hedging Agreements permitted by Section 7.7;

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

(k)                                  Indebtedness
of the Borrower or any Subsidiary arising from the honoring by a bank or other
financial institution of a check, draft or similar instrument inadvertently
drawn by the Borrower or such Subsidiary in the ordinary course of business
against insufficient funds, so long as such Indebtedness is promptly repaid;

(l)                                     Indebtedness
of the Borrower or any Subsidiary in the form of earn-outs, adjustments of
purchase price, indemnification, incentive, non-compete, consulting or other
similar arrangements and other contingent payments in respect of Investments
and acquisitions permitted by Section 7.4, dispositions permitted by
Sections 7.3 and 7.5 or the Exit Event permitted by Section 7.14;

(m)                               Indebtedness
representing deferred compensation to employees of the Borrower or any
Subsidiary incurred in the ordinary course of business;

(n)                                 Indebtedness
of the Borrower or any Subsidiary in respect of workers’ compensation claims,
property casualty or liability insurance, take-or-pay obligations in supply
arrangements, self-insurance obligations, performance, bid, customs,
government, judgment, appeal and surety bonds and other obligations of a
similar nature and completion guaranties, in each case in the ordinary course
of business;

(o)                                 Indebtedness
issued in lieu of cash payments of Restricted Payments permitted by Section
7.8(h), provided that such Indebtedness is subordinated to the
Obligations on terms reasonably satisfactory to the Administrative Agent;

(p)                                 Indebtedness
in respect of unsecured promissory notes issued to consultants, employees or
directors or former employees, consultants or directors of any Holding Company,
Parent, the Borrower or any Subsidiary in connection with repurchases of such Holding
Company’s or Parent’s common stock or common stock options permitted by Section
7.8(h);

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(q)                                 Indebtedness
incurred in connection with the financing of insurance premiums in the ordinary
course of business;

(r)                                    Indebtedness of the Borrower or any Subsidiary
Guarantor incurred to finance a Permitted Acquisition that is secured only by
the assets or business acquired in such Permitted Acquisition (including any
Equity Interests of any Person so acquired in such Permitted Acquisition and
including for the avoidance of doubt, any assets owned by such Person so acquired
in such Permitted Acquisition) and so long as both immediately prior and after
giving effect thereto, (i) no Default shall exist or result therefrom, (ii) the
Borrower would be in compliance with the Financial Covenants on a Pro Forma
Basis and (iii) the aggregate principal amount of all such Indebtedness and all
Refinancing Indebtedness in respect thereof shall not exceed $100,000,000 at
any time outstanding, plus any accrued interest, premiums, fees
or expenses in connection with any such Refinancing Indebtedness;

(s)                                  any Subsidiary that is not a Wholly-Owned
Subsidiary of the Borrower may issue Disqualified Equity that requires the
payment of cash dividends to its equity holders so long as the Borrower or its
respective Subsidiary which holds such Disqualified Equity receives at least
its proportional share of such dividends (based upon its relative holding of
the equity interests in the Subsidiary paying such dividends and taking into
account the relative preferences, if any, of the various classes of equity
interest of such Subsidiary); and

(t)                                    Indebtedness
of the Borrower and the Subsidiaries in an aggregate principal amount not,
without duplication, exceeding $125,000,000 at any time outstanding.

Section 7.2.                                   Liens

The Borrower will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Lien on any
property or asset now owned or hereafter acquired by it, or assign or sell any
income or revenues (including accounts receivable) or rights in respect of any
thereof, except:

(a)                                  Liens
created under the Loan Documents;

(b)                                 Permitted
Encumbrances;

(c)                                  any
Lien on any property or asset of the Borrower or any Subsidiary existing on the
Closing Date and set forth in Schedule 7.2, provided that (i)
such Lien shall not apply to any other property or asset of the Borrower or any
Subsidiary and (ii) such Lien shall secure only those obligations which it
secures on the Closing Date and any extensions, renewals and replacements
thereof that do not increase the outstanding principal amount thereof (plus all
accrued and unpaid interest thereon and the amount of any premium necessary to
accomplish such extension, renewal or replacement and expenses incurred in
connection therewith);

(d)                                 any
Lien on fixed or capital assets acquired, constructed or improved by the Borrower
or any Subsidiary, (including any such assets made the subject of a Capital
Lease Obligation) provided that (i) such Lien secures Indebtedness
permitted by paragraph (c) of Section 7.1, (ii) such Lien and the
Indebtedness secured thereby are incurred prior to or within 270 days after
such acquisition or the completion of such construction or improvement, (iii)
the Indebtedness secured thereby does not exceed the cost of acquiring,
constructing or improving such fixed or capital assets and (iv) such Lien shall
not apply to any other property or assets of the Borrower or any Subsidiary;

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(e)                                  any
Lien existing on any property or asset prior to the acquisition thereof by the
Borrower or any Subsidiary or existing on any property or asset of any Person
that becomes a Subsidiary after the Closing Date prior to the time such Person
became or becomes a Subsidiary, provided that (i) such Lien secures
Indebtedness permitted by paragraph (d) of Section 7.1, (ii) such
Lien is not created in contemplation of or in connection with such acquisition
or such Person becoming a Subsidiary, as applicable, (iii) such Lien shall not
apply to any other property or assets of the Borrower or any Subsidiary and
(iv) such Lien shall secure only the Indebtedness that it secures on the date
of such acquisition or the date such Person becomes a Subsidiary, as
applicable, and any Refinancing Indebtedness in respect thereof;

(f)                                    Liens
on any property or asset of any Non-Guarantor Subsidiary;

(g)                                 any
encumbrance or restriction (including, without limitation, put and call
agreements and transfer restrictions, but not pledges) with respect to the
Equity Interest of any joint venture or similar arrangement created pursuant to
the joint venture or similar agreements with respect to such joint venture or
similar arrangement;

(h)                                 (i) Liens placed upon the Equity Interests of
any Subsidiary acquired pursuant to a Permitted Acquisition to secure
Indebtedness incurred pursuant to Section 7.1(r) and (ii) Liens placed upon the
assets of such Subsidiary and any of its subsidiaries to secure Indebtedness incurred
pursuant to Section 7.1(r); and

(i)                                     Liens
with respect to obligations that do not exceed $40,000,000 at any one time
outstanding;

provided that, notwithstanding the foregoing, no consensual
Liens shall exist on Equity Interests that constitute Collateral other than
pursuant to clauses (a) or (h) above.

Section 7.3.                                   Fundamental
Changes

(a)                                  The
Borrower will not, and will not permit any Subsidiary to, merge into or consolidate
with any other Person, or permit any other Person to merge into or consolidate
with it, or sell, transfer, lease or otherwise dispose of (in one transaction
or in a series of related transactions) all or substantially all of its assets,
or all or substantially all of the Equity Interests issued by any of the
Subsidiaries (in each case, whether now owned or hereafter acquired), or
liquidate or dissolve, except that:

(i)                                     (A)
any Subsidiary may merge, amalgamate or consolidate with or into the Borrower
in a transaction in which the Borrower is the surviving Person, (B) any
Subsidiary may merge, amalgamate or consolidate with or into any Subsidiary
Guarantor in a transaction in which a Subsidiary Guarantor is the surviving
entity, (C) any Non-Guarantor Subsidiary may merge, amalgamate or consolidate
with or into any other Non-Guarantor Subsidiary and (D) the Borrower may merge, amalgamate or consolidate with or into
any Person, provided that the Borrower shall be the continuing or
surviving Person;

(ii)                                  the
Borrower may merge, amalgamate or consolidate with or into, or transfer, lease
or otherwise dispose of all or substantially all of its assets to, any Person
or may liquidate or dissolve into a Post-Exit Borrower, in each case in
connection with the Exit Event permitted by Section 7.14;

(iii)                               any
Subsidiary may merge, amalgamate or consolidate with or into any Person in a
transaction that is not permitted by clause (i) of this Section 7.3(a), provided
that (A) such

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merger,
amalgamation or consolidation is not prohibited by Sections 7.4 or 7.5, as
applicable or (B) substantially concurrently with such transaction, the
continuing or surviving Person shall become a Subsidiary Guarantor);

(iv)                              (A)
any Subsidiary may sell, transfer, lease or otherwise dispose of all or substantially
all of its assets to the Borrower or to any Subsidiary Guarantor (upon
voluntary liquidation or dissolution or otherwise) and (B) any Non-Guarantor
Subsidiary may sell, transfer, lease or otherwise dispose of all or
substantially all of its assets to any other Non-Guarantor Subsidiary (upon
voluntary liquidation or dissolution or otherwise);

(v)                                 any
Subsidiary may sell, transfer, lease or otherwise dispose of its assets in a
transaction that is not permitted by clause (iv) of this Section 7.3(a) (upon
voluntary liquidation or dissolution or otherwise); provided that such
sale, transfer, lease or other disposition is also permitted by Section 7.5;

(vi)                              (A)
any Subsidiary may liquidate, wind up or dissolve or dispose of all or substantially
all of its property or business (so long as the assets of any such Subsidiary
that is a Subsidiary Guarantor are transferred to the Borrower or a Subsidiary
Guarantor) and (B) any Immaterial Subsidiary may liquidate, wind up or
dissolve or dispose of all or substantially all of its property or business, in
each case if the Borrower determines in good faith that such liquidation, winding
up, dissolution or disposal is in the best interests of the Borrower and is not
materially disadvantageous to the Lenders;

(vii)                           any
Investment permitted by Section 7.4 may be structured as a merger, consolidation
or amalgamation; and

(viii)                        the
Borrower or any Subsidiary may liquidate, wind up or dissolve or transfer,
lease or otherwise dispose of all or substantially all of its property or
business, to the extent required, in the Borrower’s good faith judgment, to
consummate the Exit Event permitted by Section 7.14.

(b)                                 The
Borrower will not, and will not permit any of the Subsidiaries (other than any
Immaterial Subsidiary) to, engage to any material extent in any business other
than businesses of the type conducted by the Borrower and the Subsidiaries on
the Closing Date and businesses which are now, or which in the future shall
have become, reasonably related thereto or a reasonable extension thereof.

Section 7.4.                                   Investments

The Borrower will not, and will not permit any
Subsidiary to, purchase, hold or acquire (including pursuant to any merger) any
capital stock, evidences of indebtedness or other securities (including any
option, warrant or other right to acquire any of the foregoing) of, make or
permit to exist any loans or advances to, make or permit to exist any
Guarantees of any obligations of, or make or permit to exist any investment or
any other interest in, any other Person, or purchase or otherwise acquire (in
one transaction or a series of transactions (including pursuant to any merger))
any assets of any other Person constituting a business unit (all of the
foregoing, “Investments”), except:

(a)                                  Investments
in Cash Equivalents;

(b)                                 Investments
existing on the Closing Date and set forth in Schedule 4.12 or 7.4;

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(c)                                  Investments
(i) made by the Borrower in any Subsidiary Guarantor, (ii) made by any Subsidiary
Guarantor in any other Subsidiary Guarantor or the Borrower, (iii) made by the Borrower or any Subsidiary
Guarantor in any Non-Guarantor Subsidiary in an aggregate amount not to exceed
$75,000,000 at any one time outstanding (with amounts in this clause
(iii) determined as the amount originally advanced, loaned or otherwise
invested, less any returns on the respective Investment not to exceed the
original amount invested) and (iv) made
by any Non-Guarantor Subsidiary in any other Subsidiary;

(d)                                 acquisitions
permitted by Section 7.5(d), provided that such acquisitions shall be Cable
Television System Acquisitions;

(e)                                  Permitted
Acquisitions;

(f)                                    advances
and Guarantees permitted by Section 7.1;

(g)                                 Investments
expressly contemplated by the Transactions;

(h)                                 extensions
of trade credit to customers, suppliers or service providers of any Loan Party
in the ordinary course of business;

(i)                                     loans
and advances to employees, officers and directors of any Holding Company,
Parent, the Borrower or any Subsidiary in the ordinary course of business in an
aggregate amount not to exceed $2,000,000 (excluding for purposes of such cap
travel and entertainment expenses incurred in the ordinary course of business,
but including relocation expenses) at any one time outstanding;

(j)                                     loans
by the Borrower to the officers, employees and directors of any Holding
Company, Parent, the Borrower or any Subsidiary in connection with management
incentive plans in an aggregate amount not to exceed $5,000,000 in any fiscal
year and not to exceed $10,000,000 at any one time outstanding, provided
that such officers, employees and directors invest such loans, promptly upon
the receipt of the proceeds therefrom, in the Equity Interests of such Holding
Company or Parent;

(k)                                  Investments
(including debt obligations) received in the ordinary course of business by the
Borrower or any Subsidiary in connection with the bankruptcy or reorganization
of suppliers, customers and other Persons and in settlement of delinquent
obligations of, and other disputes with, suppliers, customers and other Persons
arising out of the ordinary course of business;

(l)                                     Investments
of the Borrower or any Subsidiary under Hedge Agreements permitted hereunder;

(m)                               Investments
of any Person in existence at the time such Person becomes a Subsidiary; provided
such investment was not made in connection with or anticipation of such Person
becoming a Subsidiary;

(n)                                 loans
and advances to any Holding Company or Parent in lieu of, and not in excess of
the amount of (after giving effect to any other loans, advances or Restricted
Payments in respect thereof), Restricted Payments to the extent permitted to be
made to such Holding Company or Parent in accordance with Section 7.8 (which
loans and advances shall be treated as Restricted Payments for purposes of
determining compliance with Section 7.8);

 75
 

 

(o)                                 Subsidiaries
may be established or created;

(p)                                 Investments
by the Borrower or any Subsidiary made pursuant to any transaction permitted by
Section 7.3;

(q)                                 Investments
arising out of the receipt by the Borrower or any Subsidiary of non-cash
consideration for any sale of assets permitted under Section 7.5;

(r)                                    Investments
resulting from pledges and deposits referred to in clauses (c) and (d) of the
defined term “Permitted Encumbrance”;

(s)                                  the
forgiveness or conversion to equity of any Indebtedness permitted by Section 7.1(e)
or (h);

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

(u)                                 advances
of payroll payments to employees in the ordinary course of business;

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

(w)                               acquisitions by the Borrower or any
Subsidiary of the Equity Interests of any Subsidiary so long as the Subsidiary
that is the issuer of such Equity Interests is or becomes thereby a Subsidiary
Guarantor;

(x)                                   Investments
required, in the Borrower’s good faith judgment, to consummate the Exit Event
permitted by Section 7.14; and

(y)                                 Investments
so long as the aggregate amount thereof (determined as the amount originally advanced,
loaned or otherwise invested, less any returns on the respective Investment not
to exceed the original amount invested) as of any time shall not exceed the sum
of (i) the net cash proceeds of issuances of Qualified Equity of the Borrower or contributions of cash to the
capital of the Borrower (other than Specified Equity Contributions) following
the Closing Date, which proceeds are not used to make a Restricted
Payment pursuant to Section 7.8(p) or (h) or Section 7.14(b)), plus (ii)
the Borrower’s Portion of Excess Cash Flow minus the cumulative aggregate
amount of Designated Excess Cash Flow Expenditures made simultaneously with or
prior to giving effect to such proposed Investments, plus
(iii) $150,000,000; provided that such amount in this clause (iii)
shall be reduced to $100,000,000 upon and following the Exit Event Effective
Date unless in excess of $100,000,000 of Investments have been made in reliance
on such $150,000,000 amount and are outstanding at such time, in which case
such amount shall be such greater amount until such Investments in excess over
$100,000,000 are no longer outstanding.

Section 7.5.                                   Asset
Sales

The Borrower will not, and will not permit any of the
Subsidiaries to, sell, transfer, lease or otherwise dispose (including pursuant
to a merger) of any asset, including any Equity Interest, nor will the Borrower
permit any Subsidiary to issue any Equity Interest, except:

 76
 

 

(a)                                  (i) sales,
transfers, leases and other dispositions of used or surplus equipment or other
obsolete or, in the reasonable judgment of Borrower, unnecessary assets,
(ii) the cross-licensing or licensing of intellectual property,
(iii) the substantially contemporaneous exchange of property for property
of a like kind (other than as set forth in clause (ii)), to the extent that the
property received in such exchange is of a value equivalent to the value of the
property exchanged (provided, that after giving effect to such exchange,
the value of the property subject to perfected first priority Liens in favor of
the Administrative Agent under the Security Documents is not materially
reduced), (iv) the sale, transfer or other disposition of property and
inventory and (v) the sale, transfer or other disposition of cash and Cash
Equivalents, in the case of each of clauses (i), (ii), (iv) and (v) of this
Section 7.5(a), in the ordinary course of business of the Borrower and the
Subsidiaries;

(b)                                 sales,
transfers, leases and other dispositions (i) made by the Borrower to any
Subsidiary Guarantor, (ii) made by any Subsidiary to the Borrower or any
Subsidiary Guarantor and (iii) made by any Non-Guarantor Subsidiary to any
other Non-Guarantor Subsidiary;

(c)                                  Liens
permitted by Section 7.2, Investments permitted by Section 7.4, sale and
leaseback transactions permitted by Section 7.6 and Restricted Payments
permitted by Section 7.8;

(d)                                 if
at the time thereof and immediately after giving effect thereto no Event of Default
shall have occurred and be continuing, cable television system asset exchanges
for fair value, provided that the assets received are held by the
Borrower or (x) to the extent the assets so exchanged were held by Borrower or
a Subsidiary Guarantor, a Subsidiary Guarantor and (y) in any other case, a
Wholly-Owned Subsidiary of Borrower;

(e)                                  sales,
transfers, leases and other dispositions permitted by Section 7.3;

(f)                                    any
casualty or insured damage to, or any taking under power of eminent domain or
by condemnation or similar proceeding of, any property or asset of the Borrower
or any Subsidiary; provided that the requirements of Section 2.7(b) are
complied with in connection therewith;

(g)                                 the
sale, transfer, lease and other disposition or abandonment of intellectual
property that is, in the reasonable judgment of the Borrower, no longer
economically practicable to maintain or useful in the conduct of the business
of the Borrower and the Subsidiaries taken as a whole;

(h)                                 the
leasing, occupancy agreements or sub-leasing of property or licensing or sublicensing
of intellectual property that would not materially interfere with the required
use of such property or intellectual property by the Borrower or the
Subsidiaries;

(i)                                     the
sale or discount, in each case without recourse and in the ordinary course of
business, of overdue accounts receivable arising in the ordinary course of
business, but only in connection with the compromise or collection thereof
consistent with customary industry practice (and not part of any bulk sale or
financing of receivables);

(j)                                     dispositions
of Investments in joint ventures to the extent required by, or made pursuant to
customary buy/sell arrangements between, the joint venture parties set forth in
joint venture arrangements and similar binding arrangements;

 77
 

 

(k)                                  the
sale, transfer, lease and other disposition of any Immaterial Subsidiary, provided,
that the requirements of Section 2.7(b), to the extent applicable, are complied
with in connection therewith;

(l)                                     Dispositions
made by the Borrower or any Subsidiary required, in the Borrower’s good faith
judgment, to consummate the Exit Event permitted by Section 7.14; and

(m)                               one
or more sales, transfers, leases or other dispositions of assets or sales or
issuances of Equity Interests (each an “Asset Transfer”), provided
that with respect to each such Asset Transfer pursuant to this Section 7.5(m),
the following conditions have been satisfied:

(i)                                     no
Default shall exist immediately before the Borrower or a Subsidiary enters into
a binding agreement in respect thereof;

(ii)                                  the
sum of (A) a fraction (expressed as a percentage), the numerator of which is
the Consolidated Operating Cash Flow attributable to the property being sold,
transferred, leased or otherwise disposed of in such Asset Transfer (the “Subject
Asset Transfer”), and the denominator of which is the Consolidated
Operating Cash Flow, in each case for the four fiscal quarter period ended in
respect of which the financial statements required by Section 6.1(a) or (b)
have been delivered immediately preceding the date of such Subject Asset
Transfer, plus (B) with respect to each other property sold,
transferred, leased or otherwise disposed of in another Asset Transfer pursuant
to this Section 7.5(m) prior to or simultaneously with the Subject Asset
Transfer (each, a “Prior Asset Transfer”) during the one year period
ending on the date of the Subject Asset Transfer, the sum of the percentages
calculated with respect to each such Prior Asset Transfer under Section
7.5(m)(ii)(A) at the time of the Subject Asset Transfer, shall not exceed, in
the case of these clauses (A) plus (B), 30% in the aggregate;

(iii)                              the
sum of (A) the percentage calculated with respect to the Subject Asset Transfer
pursuant to Section 7.5(m)(ii)(A), plus (B) with respect to each Prior
Asset Transfer during the period commencing on the Closing Date and ending on
the date of the Subject Asset Transfer, the sum of the percentages calculated
with respect to each such Prior Asset Transfer under Section 7.5(m)(ii)(A) at
the time of each such Prior Asset Transfer, shall not exceed, in the case of
these clauses (A) plus (B), 50% in the aggregate;

(iv)                              each
Asset Transfer permitted by this Section 7.5(m) shall be made for fair value,
and, subject to usual and customary escrow, hold-back or similar arrangements,
not less than 75% of such value shall be payable in Cash Consideration substantially
simultaneously with such Asset Transfer; and

(v)                                 (A)
the Borrower will be in compliance with each of the Financial Covenants on a
Pro Forma Basis after giving effect to such Asset Transfer, (B) the Administrative
Agent and the Lenders shall have been given five Business Days’ prior written
notice thereof, and (C) the Administrative Agent shall have received a
certificate signed by a Financial Officer, identifying the subject properties,
the name of the other party to the Asset Transfer, setting forth the total
consideration to be paid in respect of such Asset Transfer, and certifying as
to the matters set forth in clauses (A) and (B) hereof.

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Section 7.6.                                   Sale
and Lease-Back Transactions

The Borrower will not, and will not permit any of the
Subsidiaries to, enter into any arrangement, directly or indirectly, with any
Person whereby it shall sell or transfer any property, real or personal, used
or useful in its business, whether now owned or hereafter acquired, and
thereafter rent or lease such property or other property that it intends to use
for substantially the same purpose or purposes as the property being sold or
transferred, except for (a) sales or transfers that do not exceed $40,000,000
in the aggregate at any time outstanding and (b) sales or transfers by the
Borrower or any Subsidiary Guarantor to the Borrower or any Subsidiary
Guarantor.

Section 7.7.                                   Hedging
Agreements

The Borrower will not, and will not permit any of the
Subsidiaries to, enter into any Hedging Agreement, other than Hedging
Agreements with one or more Lenders or their Affiliates entered into in the
ordinary course of business to hedge or mitigate risks to which the Borrower or
any Subsidiary is exposed in the conduct of its business or the management of
its liabilities.

Section 7.8.                                   Restricted
Payments

The Borrower will not, and will not permit any of the
Subsidiaries to, declare or make, or agree to pay for or make, directly or
indirectly, any Restricted Payment, except:

(a)                                  the
Borrower may declare and pay dividends and other distributions with respect to
its Equity Interests payable solely in perpetual common Equity Interests;

(b)                                 (i) any
Subsidiary may make Restricted Payments to the Borrower or any Subsidiary
Guarantor and (ii) any Non-Guarantor Subsidiary may make Restricted
Payments to any other Non-Guarantor Subsidiary;

(c)                                  (i)
so long as no Event of Default shall be in existence or would result therefrom,
the Borrower may make Restricted Payments to the Parent for the sole purpose of
paying (A) regularly scheduled payments of principal and interest on the
101⁄2% Senior Notes (as in effect on the Closing Date or as amended in any manner
that would not be prohibited by the definition of “Refinancing Indebtedness” if
such notes were to be refinanced, renewed or replaced), (B) regularly
scheduled payments of principal and interest on the 93⁄4% Senior Notes (as in
effect on the Closing Date or as amended in any manner that would not be
prohibited by the definition of “Refinancing Indebtedness” if such notes were
to be refinanced, renewed or replaced) or any Refinancing Indebtedness in
respect thereof and (C) regularly scheduled payments of interest on the
121⁄4% Senior Notes (as in effect on the Closing Date or as amended in any manner
that would not be prohibited by the definition of “Refinancing Indebtedness” if
such notes were to be refinanced, renewed or replaced) or any Refinancing
Indebtedness in respect thereof, in the case of each of clauses (A), (B) and
(C) to the extent required to be paid in cash and (ii) payments of accrued and
unpaid interest, premium and principal and any expenses and fees in connection
with the Redemption;

(d)                                 the
Borrower may make Restricted Payments to the Parent, provided that (i)
such Restricted Payments are for the sole purpose of paying regularly scheduled
payments of interest on Designated Holding Company Debt, to the extent required
to be paid in cash, (ii) the Borrower would be in compliance with the Financial
Covenants on a Pro Forma Basis and (iii) no Default or Event of Default shall
be in existence or would result therefrom;

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(e)                                  the
Borrower may make Restricted Payments to the Parent in an aggregate amount not
to exceed the outstanding principal balance of, and capitalized or accrued and
unpaid interest from time to time on, the Parent Loan, provided that
immediately before and after giving effect to each such Restricted Payment, no
Event of Default shall be in existence or would result therefrom;

(f)                                    each
of Borrower or any Subsidiary may make Restricted Payments to accrue and pay
any Management Fee;

(g)                                 the
Borrower may from time to time make Restricted Payments to its sole member for
the sole purpose of paying the ongoing estimated and actual Federal, state and
local income tax liabilities, if any, of such member (or such member’s direct
or indirect member(s) or partners (hereinafter the “Taxed Members”), provided
that such Restricted Payments shall not, in the aggregate, exceed in any
taxable year, the aggregate amount of Federal, state and local income tax
liabilities due and payable by its Taxed Members during such taxable year,
solely as a direct result of such Taxed Member’s direct or indirect interest in
the Borrower, assuming, for purposes of this paragraph 7.8(g), that, all such
Taxed Members will be taxed on the Net Taxable Amount (as defined below) in
respect of such taxable year at the rate (expressed as a percentage) equal to
the sum of the aggregate of the highest Federal, state and local effective
income tax rates (expressed as a percentage) in effect for such taxable year
and applicable to a New York City taxpayer with respect to the type of income
(including ordinary, capital and alternative minimum taxable income) included
in Net Taxable Amount.  The “Net
Taxable Amount” for any year shall be the amount of the Borrower’s taxable
income under Code Section 703(a) (except that items required to be separately
stated under Code Section 703(a)(1) shall not be separately stated) as if it
were a partnership for federal income tax purposes;

(h)                                 (i) the
Borrower may make Restricted Payments to Parent to permit Parent or any Holding
Company to purchase Parent’s or such Holding Company’s common stock or common
stock options from present or former officers, directors, employees or other
members of management (or their estates, family members, relatives or former
spouses or trusts for the benefit of any of the foregoing) of Parent, such
Holding Company, the Borrower or any Subsidiary upon the death, disability,
retirement or termination of employment of such officer, director, employee or
other member of management, provided, that the aggregate amount of
payments under this paragraph (h) in any fiscal year (net of any net cash
proceeds received by Parent or any Holding Company and contributed to the
Borrower subsequent to the date hereof in connection with sales of any common
stock or common stock options sold in connection with permitted officer, director,
employee or other member of management compensation and incentive arrangements,
to the extent such proceeds are contributed to Borrower as common equity) shall
not exceed the lesser of (i) the sum of (1) $7,500,000 and (2) any
Restricted Payments permitted (but not made) pursuant to this paragraph (h) in
prior fiscal years and (ii) $15,000,000 in each case, plus any cash
amounts received by the Borrower in such fiscal year and (to the extent not
used pursuant to this paragraph (h) in any prior fiscal years) pursuant to key
man life insurance policies;

(i)                                     the
Borrower may make Restricted Payments to Parent or any other Holding Company to
(i) pay general and administrative expenses incurred in the ordinary
course of business not to exceed $1,000,000 in any fiscal year, (ii) pay
reasonable and necessary expenses in connection with indemnification and
reimbursement of directors, officers and employees in respect of liabilities
relating to their serving in such capacity, or obligations in respect of
directors and officer insurance (including any premiums therefor),
(iii) pay reasonable and necessary expenses (including professional fees)
in connection with registration, public or private offers and

 80
 

 

exchange listing of equity or debt securities
and maintenance of the same, (iv) pay reasonable and necessary expenses
(including professional fees) in connection with compliance with reporting
obligations under, or in connection with compliance with, federal or state laws
or under this Agreement or any of the other Loan Documents or (v) pay
amounts payable to any federal or state tax authority on behalf of any
participant in any stock incentive plan of any Holding Company or Parent to
cover withholding and other taxes payable on behalf of such participant in connection
with such plan; provided that, in the case of clauses (ii) through (iv)
above, if any Holding Company shall own any material assets other than,
directly or indirectly, the Equity Interests of the Borrower or other assets
relating to the ownership interest of such Holding Company in the Borrower or
the Subsidiaries, with respect to such Holding Company such Restricted Payments
shall be limited to the reasonable and proportional share, as determined by the
Borrower in its reasonable discretion, of such expenses incurred by such
Holding Company relating or allocable to its ownership interest in the
Borrower;

(j)                                     the
Borrower may make Restricted Payments to the extent necessary to effect the
Transactions;

(k)                                  the
Borrower may purchase fractional shares of its common stock arising out of
stock dividends, splits or combinations of business combinations to the extent
not exceeding $1,000,000 in the aggregate per fiscal year of the Borrower;

(l)                                     to
the extent constituting Restricted Payments, the Borrower and the Subsidiaries
may enter into and consummate transactions expressly permitted by Sections 7.3
or 7.4;

(m)                               any
Subsidiary that is not a Wholly-Owned Subsidiary may declare and pay cash
dividends to its equity holders generally so long as the Borrower or its
respective Subsidiary which owns the equity interests in the Subsidiary paying
such dividend receives at least its proportional share thereof (based upon its
relative holding of the equity interests in the Subsidiary paying such
dividends and taking into account the relative preferences, if any, of the
various classes of equity interest of such Subsidiary);

(n)                                 following
the Exit Event Effective Date, the Borrower or any Subsidiary may make
Restricted Payments to accrue and pay the regularly scheduled consulting fee
pursuant to the Consulting Agreement;

(o)                                 (A)
the Borrower may make Restricted Payments to any TCI Exit Person required, in
the Borrower’s good faith judgment, to consummate the Exit Event permitted by
Section 7.14 and (B) the Borrower may make the Restricted Payments to finance
the transactions described in Section 7.14(b) and (c); and

(p)                                 provided
no Default is continuing or would result therefrom, the Borrower may make Restricted
Payments to Parent for any purpose in an aggregate amount not to exceed (i)
$100,000,000 (provided that such amount in this clause (i) shall be
deemed to be $75,000,000 upon and following the Exit Event Effective Date (it
being understood that any Restricted Payment made prior to the Exit Event
Effective Date in reliance on such $100,000,000 amount shall not give rise to a
Default or an Event of Default if such Restricted Payment were otherwise permitted
pursuant to this Section 7.8(p)), plus (ii) so long as the Leverage
Ratio on a Pro Forma Basis, both before and after giving effect to such
Restricted Payment is less than 4.50:1.00, the sum of (x) the net cash proceeds
of issuances of Qualified Equity of the
Borrower or contributions of cash to the capital of the Borrower (other than
Specified Equity Contributions) following the Closing Date, which
proceeds are not used to make an Investment pursuant to Section 7.4(y) or a

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Restricted Payment pursuant to Section 7.8(h)
or Section 7.14(b) plus (y) the Borrower’s Portion of Excess Cash Flow minus
the cumulative aggregate amount of other Designated Excess Cash Flow
Expenditures made simultaneously with or prior to giving effect to such
Restricted Payment.

Section 7.9.                                   Transactions
with Affiliates

The Borrower will not, and will not permit any of the
Subsidiaries to, sell, transfer, lease or otherwise dispose (including pursuant
to a merger) of any property or assets to, or purchase, lease or otherwise
acquire (including pursuant to a merger) any property or assets from, or
otherwise engage in any other transaction with, any Affiliate, except (a) the
agreements existing on the Closing Date and set forth in Schedule 7.9,
(b) at prices and on terms and conditions substantially similar to those
available to the Borrower or such Subsidiary on an arms-length basis from
unrelated third parties, and (c) for the issuance of perpetual common Equity
Interests by the Borrower to its Affiliates, to the extent not otherwise
prohibited hereby, provided that notwithstanding the foregoing the Borrower
and any Subsidiary may (i) enter into any transaction that is permitted
under Section 7.1, 7.3, 7.4, 7.5, 7.8 or 7.11(b), (ii) enter into any transaction
between or among the Borrower and one or more of the Subsidiaries or between or
among two or more of the Subsidiaries and not involving any other Affiliate,
(iii) enter into any transaction with an Affiliate (excluding any Permitted
Holder, other than Comcast (or any Person described in clause (a)(z) or (b) or
(d) of the definition of “Permitted Holders” to the extent related to Comcast))
required, in the Borrower’s good faith judgment, to consummate the Exit Event
permitted by Section 7.14, (iv) enter into and perform their obligations under
the Management Agreements and (v) pay compensation, reasonable fees and
reimbursement expenses to, and indemnity provided on behalf of, directors,
officers, consultations and employees of any Holding Company, Parent, the
Borrower and any Subsidiary.  For the
avoidance of doubt, this Section 7.9 shall not apply to employment and salary
arrangements, equity compensation or benefits for the directors, management,
officers or employees entered into in the ordinary course of business, but any
repurchases of Equity Interests or Restricted Payments to purchase Equity
Interests held by any of such management, officers, employees or directors
shall be subject to Section 7.8.

Section 7.10.                             Restrictive
Agreements

The Borrower will not, and will not permit any of the
Subsidiaries (other than any Immaterial Subsidiary, to the extent affecting
only such Immaterial Subsidiary) to, directly or indirectly, enter into, incur
or permit to exist any consensual agreement or other arrangement binding on the
Borrower or any Subsidiary that prohibits, restricts or imposes any condition
upon (i) the ability of the Borrower or any Subsidiary to create, incur or
permit to exist any Lien (other than Liens prohibited under cable television
franchise agreements) upon any of its property or assets (unless such agreement
or arrangement does not prohibit, restrict or impose any condition upon the
ability of any Loan Party to create, incur or permit to exist any Lien in favor
of the Secured Parties created under the Loan Documents) or (ii) the ability of
any Subsidiary to pay dividends or other distributions with respect to any of
its Equity Interests or to make or repay loans or advances to the Borrower or
any other Subsidiary or to Guarantee Indebtedness of the Borrower or any other
Subsidiary, provided that (a) the foregoing shall not apply to
restrictions and conditions imposed by law or by the Loan Documents, (b) the
foregoing shall not apply to restrictions and conditions existing on the
Closing Date and identified on Schedule 7.10 (but shall apply to any
extension or renewal of, or any amendment or modification expanding the scope
of, any such restriction or condition), (c) the foregoing shall not apply to
customary restrictions and conditions contained in agreements relating to the
sale of a Subsidiary or any assets pending such sale, provided that such
restrictions and conditions apply only to the Subsidiary or assets that is or
are to be sold and such sale is permitted hereunder, (d) clause (i) of this
Section shall not apply to restrictions or conditions imposed by any agreement
relating to secured Indebtedness permitted by this Agreement if such
restrictions or conditions apply only

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to the property or assets securing such Indebtedness,
(e) clause (i) of this Section shall not apply to customary provisions in
agreements, leases or licenses restricting the assignment thereof, (f) the
foregoing shall not apply to restrictions or conditions applicable to any
Person or the property or assets of a Person acquired by the Borrower or any
Subsidiary existing at the time of such acquisition and not incurred in
connection with or in contemplation of such acquisition, which restriction or
condition is not applicable to any Person or the properties or assets of any
Person, other than the Person, or the property or assets of the Person, so
acquired and any amendments, modifications, restatements, renewals, extensions,
supplements, refundings, replacements or refinancings thereof, provided that the restrictions and conditions in
any such amendments, modifications, restatements, renewals, extensions,
supplements, refundings, replacement or refinancings are not materially more
restrictive, taken as a whole, than those in effect on the date of the
acquisition, (g) the foregoing restrictions shall not apply to restrictions or
conditions (1) on cash or other deposits or net worth imposed by customers or
required by insurance, surety or bonding companies, in each case, under
contracts entered into in the ordinary course of business, (2) existing under,
by reason of or with respect to provisions with respect to the disposition or
distribution of assets or property, in each case contained in joint venture
agreements, limited liability company agreements and other similar agreements
and which the Borrower’s board of directors determines will not adversely
affect the Borrower’s ability to make payments of principal or interest
payments on the Loans, or (3) existing under, by reason of or with respect to
Indebtedness incurred to refinance any Indebtedness, in each case as permitted
under Section 7.1; provided that the restrictions contained in the
agreements governing the Indebtedness incurred to refinance Indebtedness are no
more restrictive, taken as a whole, than those contained in the agreements
governing the Indebtedness being refinanced, and (h) the foregoing shall not
apply to software and other intellectual property licenses pursuant to which
the Borrower or such Subsidiary is the licensee of the relevant software or
intellectual property, as the case may be (in which case any prohibition or limitation
shall relate only to the assets or rights subject of the applicable license
and/or the license itself).

Section 7.11.                             Amendment
of Material Documents

(a)                                  The
Borrower will not, and will not permit any Subsidiary to, amend, modify or
waive any of its rights under the Management Agreements, other than amendments,
modifications or waivers that would not reasonably be expected to adversely
affect the Credit Parties in any material respect, provided that the
Borrower shall deliver or cause to be delivered to the Administrative Agent and
each Lender a copy of each such amendment, modification or waiver promptly
after the execution and delivery thereof, and provided further that
(i) any termination of any Management Agreement and (ii) any amendment,
modification or waiver that increases the fees payable under the Management
Agreement so long as all fees (or other payments in the nature of a fee, but
excluding ordinary course expense reimbursement and indemnities) payable
pursuant to all Management Agreements then in effect do not in the aggregate
exceed (x) prior to the Exit Event Effective Date, 3% of the
consolidated gross revenue of the Borrower and the Subsidiaries for the most
recently ended fiscal quarter and (y)
upon and following the Exit Event Effective Date, 6% of the consolidated gross
revenues of the Borrower and the Subsidiaries for the most recently ended
fiscal quarter, shall not in either case be deemed to adversely affect the
Credit Parties.

(b)                                 The
Borrower will not permit the Parent to amend, modify or waive any of its rights
under the Partnership Agreement, other than amendments, modifications or
waivers that would not reasonably be expected to adversely affect the Credit
Parties in any material respect; provided (i) that the Borrower or the Parent
shall deliver or cause to be delivered to the Administrative Agent for further
distribution to each Lender a copy of each amendment, modification or waiver
promptly after the execution and delivery thereof and (ii) the provisions of
this Section 7.11(b) shall not apply to any amendment,

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modification or waiver of any provision of the Partnership Agreement in
connection with or in contemplation of the Exit Event permitted by Section
7.14.

Section 7.12.                             Interest
Coverage Ratio

The Borrower will not permit the Interest Coverage
Ratio as of the end of any fiscal quarter during any period set forth below to
be less than the ratio set forth below with respect to such period:

	
  Period

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  December 31,
  2006 - June 30, 2007

  	
   

  	
  1.50:1.00

  
	
  July 1, 2007 -
  December 31, 2009

  	
   

  	
  1.60:1.00

  
	
  January 1, 2010
  - December 31, 2011

  	
   

  	
  1.75:1.00

  
	
  January 1, 2012
  and thereafter

  	
   

  	
  2.00:1.00

  

 

; provided that
the minimum Interest Coverage Ratio at any time then in effect, and at all
times thereafter, shall decrease by 0.50:1.0 upon the consummation of the Exit
Event.

Section 7.13.                             Leverage
Ratio

The Borrower will not permit the Leverage Ratio as of
the end of any fiscal quarter during any period set forth below to be greater
than the ratio set forth below with respect to such period:

	
  Period

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  December 31,
  2006 - September 30, 2008

  	
   

  	
  6.25:1.00

  
	
  October 1, 2008
  - March 31, 2009

  	
   

  	
  6.00:1.00

  
	
  April 1, 2009
  -September 30, 2009

  	
   

  	
  5.75:1.00

  
	
  October 1, 2009
  - March 31, 2010

  	
   

  	
  5.50:1.00

  
	
  April 1, 2010 -
  September 30, 2010

  	
   

  	
  5.25:1.00

  
	
  October 1, 2010
  - March 31, 2011

  	
   

  	
  5.00:1.00

  
	
  April 1, 2011 -
  September 30, 2011

  	
   

  	
  4.50:1.00

  
	
  October 1, 2011
  and thereafter

  	
   

  	
  4.25:1.00

  

 

; provided that
the maximum Leverage Ratio at any time then in effect, and at all times
thereafter, shall increase by 0.50:1.0 upon the consummation of the Exit Event.

Section 7.14.                             Exit
Event

(a)                                  The
Borrower shall not permit to occur the Exit Event, unless:

(i)                                     not
less than 10 Business Days prior to taking any action in connection with the
Exit Event which would violate this Agreement but for the operation of this Section
7.14 (the date that the first such action shall occur, the “Exit Event
Commencement Date”), the Borrower shall provide the Administrative Agent
with a certificate (the “Exit Event
Notice”) (A) setting forth the proposed date of consummation of the Exit
Event, (B) attaching (x) projections which demonstrate compliance with
the Financial Covenants on a Pro Forma Basis from and including the proposed
date of consummation of the Exit Event to and including the B Term Maturity
Date (or such later date as may be the final

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stated maturity date of any Indebtedness
incurred pursuant to Section 2.1(d) or 2.5(d) that is then outstanding or
commitments in respect of which are then effective), and such projections shall
be certified by a Financial Officer of the Borrower as having been prepared in
good faith based upon assumptions believed by Borrower to be reasonable at the
time made (it being understood that projections are, by their nature,
inherently uncertain and actual results may vary materially from such
projections) and (y) any other documentation entered into or to be entered into
in connection with the Exit Event as the Administrative Agent or any Arranger (acting
through the Administrative Agent) may have reasonably requested and (C)
certifying (in reasonable detail as to clauses (I), (III), (IV) and (V) below)
the satisfaction of each of the following conditions:

(I)            the Borrower shall
be in compliance with the Financial Covenants on a Pro Forma Basis upon
consummation of the Exit Event (without giving effect to any Specified Equity
Contribution), it being understood that such compliance will be tested after
giving effect to any repayment, redemption or assumption of Indebtedness of any
Holding Company, the Parent, the Borrower or any Subsidiary in connection with
the Exit Event and the payment, repayment, redemption, assumption or repurchase
of any other Indebtedness pursuant to Section 7.14(b);

(II)           immediately after giving effect to
the consummation of the Exit Event, there shall not be existing and continuing
any (A) Default due to failure to comply with Section 6.1(a) or (b) or (B)
Event of Default under paragraphs (a), (b), (d), (h), (i) or (o) of Article 8;

(III)         all assets to be allocated to Insight
LP (or any Person or Persons that succeed to the rights of Insight LP under the
Partnership Agreement) in the Exit Event will be owned by (except as otherwise
permitted by clause (b) below) the Borrower or a Subsidiary Guarantor (such
assets, the “Exit Assets”) immediately after giving effect to each
action taken in furtherance of the Exit Event; provided that (a) the
Exit Assets shall not include any cash or Cash Equivalents received in the Exit
Event or any asset comprised of the assumption, repayment, redemption or
repurchase of Indebtedness of any Holding Company, Parent, Borrower or any
Subsidiary by a TCI Exit Person and (b) Exit Assets may be owned by
Non-Guarantor Subsidiaries, to the extent the aggregate amount of all such Exit
Assets owned by Non-Guarantor Subsidiaries immediately after giving effect to
such action does not exceed the aggregate amount of Investments permitted to be
made by Borrower and the Subsidiary Guarantors in Persons that are not the
Borrower or a Subsidiary Guarantor under Section 7.4(c) and (y);

(IV)         the Adjusted
Annualized Consolidated Operating Cash Flow generated by the Exit Assets for
the fiscal quarter of the Borrower most recently ended with respect to which a
delivery requirement for a compliance certificate pursuant to Section 6.1(c)
has arisen (or, prior to the due date for the first such compliance
certificate, as of the most recently ended fiscal quarter of the Borrower for
which financial statements are available) (such Adjusted Annualized
Consolidated

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Operating Cash
Flow for such fiscal quarter, the “Exit Cash Flow”) shall be no less
than $150,000,000; and

(V)           75% of the Exit Cash
Flow shall be generated by assets that were, as of the Exit Event Commencement
Date, held by the Borrower or one or more of the Subsidiaries.

If the actual date of consummation of the Exit Event
will differ from the proposed date of consummation of the Exit Event set forth
in the Exit Event Notice by five days or more (or, if the information set forth
would change materially due to the change in such date of consummation, less
than five days), the Borrower shall update the information included in the Exit
Event Notice and shall deliver that updated information to the Administrative
Agent no later than 3 Business Days prior to the actual date of consummation of
the Exit Event.

(b)                                 So
long as Section 7.14(a) shall be complied with, any cash or Cash Equivalents
received as a result of the Exit Event may be applied (without duplication), at
the Borrower’s option, to:

(i)                                     make
Restricted Payments to the extent used to repay, redeem or repurchase the 93⁄4%
Senior Notes (or any Refinancing Indebtedness in respect thereof), in each case
including any accrued interest, premiums, fees or expenses payable in connection
therewith;

(ii)                                  make
Restricted Payments to the extent used to repay, redeem or repurchase the 121⁄4%
Senior Notes (or any Refinancing Indebtedness in respect thereof), in each case
including any accrued interest, premiums, fees or expenses payable in connection
therewith;

(iii)                               make
Restricted Payments to the extent used to repay, redeem or repurchase the
Parent Loan, including any accrued interest, premiums, fees or expenses payable
in connection therewith;

(iv)                              prepay
the Term Loans or any Additional Term Loans on a pro rata basis;

(v)                                 repay
other Indebtedness of the Borrower and the Subsidiaries;

(vi)                              prepay any Revolving Loans pursuant to
Section 2.7(a), subject to Section 7.14(c) below; and

(vii)                           for
general corporate purposes of the Borrower or any of the Subsidiaries (which
shall not include Restricted Payments to any equity holders of Insight
Holdings), provided that (i) the Leverage Ratio for the fiscal quarter
of the Borrower most recently ended with
respect to which a delivery requirement for a compliance certificate pursuant
to Section 6.1(c) has arisen (or, prior to the due date for the first such
compliance certificate, as of the most recently ended fiscal quarter of the
Borrower for which financial statements are available) is less than 6.50:1.00
and (ii) not more than $50,000,000 is applied pursuant to this clause (vii);

provided, that any payment, redemption or repurchase of
Indebtedness permitted by this paragraph (b) may be structured or characterized
as an assumption, repayment, redemption or repurchase of such Indebtedness by
Comcast or any of its Affiliates (that are not any of Parent, Borrower or any
Subsidiary

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either before or after giving effect to the
consummation of the Exit Event), and the Administrative Agent and the Lenders
hereby consent to such any such structuring or characterization hereunder.  It is understood that any payment, redemption
or repurchase of Indebtedness permitted by this paragraph (b) may be structured
or characterized so as to minimize the income and gain recognized as a result
of the Exit Event.

(c)                                  The Borrower may use the proceeds of any
Revolving Loan Borrowings to make Restricted Payments for the purposes set
forth in clause (i), (ii) or (iii) of Section 7.14(b), so long as on the same
day as making any such Restricted Payments with the proceeds of such Revolving
Loan Borrowings the Borrower is able to and does prepay outstanding Revolving
Loans using the proceeds of cash or Cash Equivalents received in the Exit Event
such that the amount of Revolving Loans outstanding immediately after such
prepayments is equal to the amount of Revolving Loans outstanding immediately
prior to any such Revolving Loan Borrowings.

(d)                                 The
borrower hereunder following consummation of the Exit Event shall be either (i)
Insight Midwest Holdings, LLC or (ii) any other Person designated by Insight
Midwest Holdings, LLC (the “Post-Exit Borrower”) that is organized under
the laws of the State of New York or Delaware (or, to the extent reasonably
approved by the Administrative Agent, any other State of the United States of
America or the District of Columbia).

(e)                                  Each
Person that receives assets not allocated to a TCI Exit Person in the Exit
Event, if not the Borrower or a Subsidiary Guarantor prior to the Exit Event
Effective Date, shall take actions analogous to those in Sections 5.1(a), (f),
(g), (i), (j) and (k) and, if reasonably requested by the Administrative Agent,
(h), prior to or substantially concurrently with the consummation of the Exit
Event.

(f)                                    It
is understood and agreed that any action taken in furtherance of the consummation
of the Exit Event that results in a breach of any covenant set forth in Article
6 or 7 of this Agreement (other than a breach of Section 6.1, 7.12 or 7.13)
shall not constitute a breach under this Agreement or an Event of Default if
(i) such action is required, in the good faith judgment of the Borrower, to
consummate the Exit Event and (ii) such breach is cured substantially
contemporaneously with the taking of such action.

(g)                                 The
Administrative Agent shall promptly provide copies of the Exit Event Notice to
the Lenders.

ARTICLE 8

EVENTS OF DEFAULT

If any of the following events (“Events of Default”)
shall occur:

(a)                                  the
Borrower shall fail to pay any principal of any Loan or any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become
due and payable, whether at the due date thereof or at a date fixed for
prepayment thereof or otherwise;

(b)                                 the
Borrower shall fail to pay any interest on any Loan or on any reimbursement
obligation in respect of any LC Disbursement or any fee, commission or any
other amount (other than an amount referred to in paragraph (a) of this
Article) payable under any Loan Document, when and as the same shall become due
and payable, and such failure shall continue unremedied for a period of five
Business Days;

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(c)                                  any
representation or warranty made or deemed made by or on behalf of any Loan
Party or any other Subsidiary in or in connection with any Loan Document or any
amendment or modification hereof or waiver thereunder, or in any certificate furnished
pursuant to or in connection with any Loan Document or any amendment or
modification hereof or waiver thereunder, shall prove to have been incorrect in
any material respect when made or deemed made;

(d)                                 the
Borrower shall fail to observe or perform any covenant, condition or agreement
contained in Section 6.2(a), Section 6.13 or in Article 7;

(e)                                  any
Loan Party shall fail to observe or perform any covenant, condition or
agreement contained in any Loan Document to which it is a party (other than
those specified in paragraph (a), (b) or (d) of this Article), and such failure
shall continue unremedied for a period of 30 days after a Responsible Officer
shall have obtained actual knowledge thereof);

(f)                                    any
Loan Party or any Material Subsidiary of a Loan Party shall fail to make any
payment (whether of principal or interest) in respect of any Material
Obligations, when and as the same shall become due and payable (after giving
effect to any applicable grace period);

(g)                                 any
event or condition occurs that results in any Material Obligations becoming due
prior to its scheduled maturity or payment date, or that enables or permits the
holder or holders of any Material Obligations or any trustee or agent on its or
their behalf to cause any Material Obligations to become due prior to its
scheduled maturity or payment date or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity (in each case
after (x) the giving of any applicable notice and (y) giving effect to any
applicable grace period), provided that this paragraph (g) shall not
apply to secured Indebtedness that becomes due solely as a result of the
voluntary sale or transfer or other disposition of the property or assets securing
such Indebtedness;

(h)                                 an
involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect of the
Parent, the Borrower, any Material Subsidiary or any issuer of any outstanding
93⁄4% Senior Notes (or any Refinancing Indebtedness in respect thereof)  (to the extent any Holding Company has an
obligation to pay the 93⁄4% Senior Notes or such Refinancing Indebtedness) or its
debts, or of a substantial part of its assets, under any Federal, state or
foreign bankruptcy, insolvency, receivership or similar law now or hereafter in
effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Parent, the Borrower, any Material
Subsidiary or any issuer of any outstanding 93⁄4% Senior Notes (or any
Refinancing Indebtedness in respect thereof) (to the extent any Holding Company
has any obligation to pay the 93⁄4% Senior Notes or such Refinancing Indebtedness)
or for a substantial part of its assets, and, in any such case, such proceeding
or petition shall continue undismissed for 60 days or an order or decree
approving or ordering any of the foregoing shall be entered;

(i)                                     the
Parent, the Borrower, any Material Subsidiary or any issuer of any outstanding
93⁄4% Senior Notes (or any Refinancing Indebtedness in respect thereof) (to the
extent any Holding Company has any obligation to pay the 93⁄4% Senior Notes or
such Refinancing Indebtedness), shall (i) voluntarily commence any
proceeding or file any petition seeking liquidation, reorganization or other
relief under any Federal, state or foreign bankruptcy, insolvency, receivership
or similar law now or hereafter in effect, (ii) consent to the institution of,
or fail to contest in a timely and appropriate manner, any proceeding or
petition described in paragraph (h) of this Article, (iii) apply for or
consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Parent, the Borrower, any Material
Subsidiary or any

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issuer of any outstanding 93⁄4% Senior Notes
(or any Refinancing Indebtedness in respect thereof) (to the extent any Holding
Company has any obligation to pay the 93⁄4% Senior Notes or such Refinancing
Indebtedness), or for a substantial part of its assets, (iv) file an answer
admitting the material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors or (vi)
take any action for the purpose of effecting any of the foregoing;

(j)                                     the
Parent, the Borrower, any Material Subsidiary or any issuer of any outstanding
93⁄4% Senior Notes (or any Refinancing Indebtedness in respect thereof) (to the
extent any Holding Company has any obligation to pay the 93⁄4% Senior Notes or
such Refinancing Indebtedness), shall become unable, admit in writing its
inability or fail generally to pay its debts as they become due;

(k)                                  one
or more judgments for the payment of money in an aggregate amount in excess of
$25,000,000 shall be rendered against the Parent, the Borrower, any Subsidiary
or any issuer of any outstanding 93⁄4% Senior Notes (or any Refinancing
Indebtedness in respect thereof) (to the extent any Holding Company has any
obligation to pay the 93⁄4% Senior Notes or such Refinancing Indebtedness), or
any combination thereof (which shall not be fully covered by insurance without
taking into account any applicable deductibles) and the same shall remain undischarged
or unbonded for a period of 60 consecutive days during which execution shall
not be effectively stayed, or any action shall be legally taken by a judgment
creditor to attach or levy upon any assets of the Parent, the Borrower, or any
Subsidiary to enforce any such judgment;

(l)                                     an
ERISA Event shall have occurred that, when taken together with all other ERISA
Events that have occurred and are continuing, would reasonably be expected to
result in a Material Adverse Effect;

(m)                               any
Loan Document shall cease, for any reason, to be in full force and effect
(other than pursuant to the terms hereof or thereof), or any Loan Party shall
so assert in writing;

(n)                                 any
Lien purported to be created under any Security Document shall cease to be, or
shall be asserted by any Loan Party in writing not to be, a valid and, except
to the extent otherwise permitted by the Security Agreement, perfected Lien on
any Collateral, with the priority required by the applicable Security Document,
except (i) as a result of the sale or other disposition of the applicable
Collateral in a transaction permitted under the Loan Documents or (ii) as a
result of the Administrative Agent’s failure to maintain possession of any
stock certificates, promissory notes or other instruments delivered to it under
the Security Agreement or any foreclosure, distraint, sale or similar
proceedings have been commenced with respect to any Collateral;

(o)                                 a
Change in Control shall have occurred; or

(p)                                 the
failure of the Redemption to occur on or before the date that is 45 days following
the Closing Date (other than by reason
of any Lender’s failure to extend the A Delayed Draw Term Loans or B Delayed
Draw Term Loans), and such failure shall continue unremedied for a
period of 30 days after written notice thereof from the Administrative
Agent or any Lender to the Borrower;

then, and in every such event (other than an event
described in paragraph (h) or (i) of this Article with respect to the
Borrower), and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by
notice to the Borrower, take either or

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both of the following actions, at the same or
different times:  (i) terminate the
Commitments (other than the A Delayed Draw Term Loan Commitments and the B
Delayed Draw Term Loan Commitments), and thereupon such Commitments shall
terminate immediately and (ii) declare the Loans then outstanding to be due and
payable in whole (or in part, in which case any principal not so declared to be
due and payable may thereafter be declared to be due and payable), and
thereupon the principal of the Loans so declared to be due and payable,
together with accrued interest thereon and all fees and other obligations of
each Loan Party accrued under the Loan Documents, shall become due and payable
immediately, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by the Borrower; and in case of any event with
respect to the Borrower described in paragraph (h) or (i) of this Article, such
Commitments shall automatically terminate and the principal of the Loans then
outstanding, together with accrued interest thereon and all fees and other obligations
of each Loan Party accrued under the Loan Documents, shall automatically become
due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Borrower.

ARTICLE 9

THE ADMINISTRATIVE
AGENT

Each Credit Party hereby irrevocably appoints the
Administrative Agent as its agent and authorizes the Administrative Agent to
take such actions on its behalf and to exercise such powers as are delegated to
the Administrative Agent by the terms hereof, together with such actions and
powers as are reasonably incidental thereto.

The Person serving as the Administrative Agent
hereunder shall have the same rights and powers in its capacity as a Lender as
any other Lender and may exercise the same as though it were not the
Administrative Agent, and such Person and its Affiliates may accept deposits
from, lend money to and generally engage in any kind of business with the
Borrower or any Subsidiary or other Affiliate thereof as if it were not the
Administrative Agent hereunder.

The Administrative Agent shall not have any duties or
obligations except those expressly set forth herein.  Without limiting the generality of the
foregoing, (a) the Administrative Agent shall not be subject to any fiduciary
or other implied duties, regardless of whether a Default has occurred and is
continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated by the Loan Documents that the
Administrative Agent is required to exercise in writing by the Required Lenders
(or such other number or percentage of the Credit Parties as shall be necessary
under the circumstances as provided in Section 10.2), and (c) except as
expressly set forth herein, the Administrative Agent shall not have any duty to
disclose, and shall not be liable for the failure to disclose, any information
relating to the Borrower, any of the Subsidiaries or any other Loan Party that
is communicated to or obtained by the Person serving as Administrative Agent or
any of its Affiliates in any capacity. 
The Administrative Agent shall not be liable for any action taken or not
taken by it with the consent or at the request of the Required Lenders (or such
other number or percentage of the Credit Parties as shall be necessary under
the circumstances as provided in Section 10.2) or in the absence of its own
gross negligence or willful misconduct. 
The Administrative Agent shall be deemed not to have knowledge of any
Default unless and until written notice thereof is given to the Administrative
Agent by the Borrower or a Credit Party (and, promptly after its receipt of any
such notice, it shall give each Credit Party and the Borrower notice thereof),
and the Administrative Agent shall not be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in
or in connection with any Loan Document, (ii) the contents of any certificate,
report or other document delivered thereunder or in connection therewith, (iii)
the performance or observance of any of the covenants, agreements or other
terms or conditions set forth therein,

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(iv) the validity, enforceability, effectiveness or
genuineness thereof or any other agreement, instrument or other document or (v)
the satisfaction of any condition set forth in Article 5 or elsewhere herein,
other than to confirm receipt of items expressly required to be delivered to
the Administrative Agent.

The Administrative Agent shall be entitled to rely
upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing believed
by it to be genuine and to have been signed or sent by the proper Person.  The Administrative Agent also may rely upon
any statement made to it orally or by telephone and believed by it to be made
by the proper Person, and shall not incur any liability for relying
thereon.  The Administrative Agent may
consult with legal counsel (who may be counsel for the Borrower), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

The Administrative Agent may perform any and all its
duties and exercise its rights and powers by or through any one or more sub-agents
appointed by the Administrative Agent, provided that no such delegation
shall serve as a release of the Administrative Agent or waiver by the Borrower
of any rights hereunder.  The Administrative
Agent and any such sub-agent may perform any and all its duties and exercise
its rights and powers through their respective Related Parties.  The exculpatory provisions of the preceding
paragraphs shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent.

Subject to the appointment and acceptance of a
successor Administrative Agent as provided in this paragraph, the
Administrative Agent may resign at any time by notifying the Credit Parties and
the Borrower.  Upon any such resignation,
the Required Lenders shall have the right, with the consent of the Borrower
(which consent shall not be unreasonably withheld, conditioned or delayed),
unless an Event of Default shall have occurred and be continuing, in which case
no consent of the Borrower shall be required, to appoint a successor from among
the Lenders reasonably acceptable to the Borrower.  If no successor shall have been so appointed
by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent gives notice of its resignation, then
the retiring Administrative Agent may, on behalf of the Credit Parties, appoint
a successor Administrative Agent reasonably acceptable to the Borrower (which
consent shall not be unreasonably withheld, conditioned or delayed), unless an
Event of Default shall have occurred and be continuing, in which case no
consent of the Borrower shall be required, from among the Lenders or an
Affiliate of any such Lender with minimum capital and undivided surplus of not
less than $500,000,000.  Upon the
acceptance of its appointment as Administrative Agent hereunder by a successor,
such successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder.  The fees payable by the Borrower to a successor
Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed in writing between the Borrower and such
successor.  After the Administrative
Agent’s resignation hereunder, the provisions of this Article and Section 10.3
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while it was acting as
Administrative Agent.

Each Credit Party acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Credit Party or any of their Affiliates and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. 
Each Credit Party also acknowledges that it will, independently and
without reliance upon the Administrative Agent or any other Credit Party or any
of their Affiliates and based on such documents and information as it shall
from time to time deem appropriate, continue to make its own decisions in taking

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or not taking action under or based upon any Loan Document,
any related agreement or any document furnished thereunder.

Notwithstanding anything in any Loan Document to the
contrary, no Agent (other than the Administrative Agent) acting in such
capacity shall have any duty or obligation under the Loan Documents.

Each Lender and Issuing Bank
irrevocably authorizes the Administrative Agent, at its option and in its
discretion (i) to release any Lien on any property granted to or held by the
Administrative Agent under any Loan Document (A) upon termination of the
Commitments and payment in full of all Obligations (other than contingent or
indemnification obligations not then due) and the expiration, termination or
cash collateralization of all Letters of Credit, (B) that is sold or to be sold
as part of or in connection with any sale permitted under the Loan Documents,
or (C) if approved, authorized or ratified in writing by the Required Lenders;
and (ii) to release any Loan Party from its obligations under the Loan
Documents if such Person ceases to be a Subsidiary as a result of a transaction
permitted hereunder.  Upon request by the
Administrative Agent at any time, the Required Lenders will confirm in writing
the Administrative Agent’s authority to release its interest in particular
types or items of property, or to release any Loan Party from its obligations
under the Loan Documents pursuant to this Section.

The Platform referred to in
the last paragraph of Section 6.1 is provided “as is” and “as available.”  The Agents do not warrant the accuracy or
completeness of any electronic communications made on the Platform, or the
adequacy of the Platform and expressly disclaim liability for errors or omissions
in such electronic communications.  No
warranty of any kind, express, implied or statutory, including, without
limitation, any warranty of merchantability, fitness for a particular purpose,
non-infringement of third party rights or freedom from viruses or other code
defects, is made by any Agent in connection with such electronic communications
or the Platform.

ARTICLE 10

MISCELLANEOUS

Section 10.1.                             Notices

Except in the case of notices and other communications
expressly permitted to be given by telephone (and subject to the last paragraph
of this Section 10.1), all notices and other communications provided for herein
shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by facsimile, as
follows:

(a)                                  if
to the Borrower, to it at 810 Seventh Avenue, New York, New York 10019,
Attention of John Abbot, Chief Financial Officer (Facsimile No. (917) 286-2301) and Elliot Brecher, Senior Vice President
and General Counsel (Facsimile No. (917) 286-2301), with a copy to
Debevoise & Plimpton LLP, 919 Third Avenue, New York, New York 10022,
Attention of:  Gregory H. Woods, III,
Esq., Facsimile No. (212) 909-6838; and
Dow Lohnes PLLC, 1200 New Hampshire Avenue, N.W., Suite 800, Washington, DC
20036, Attention of: J. Kevin Mills, Esq. (Facsimile No. (202) 776-4847)

(b)                                 if
to the Administrative Agent, or BNY as Issuing Bank or Swingline Lender, to it
at One Wall Street, 18th Floor, New York, New York 10286, Attention of: Ramona
Washington Telephone No. ((212) 635-4699); Facsimile No. ((212) 635-6365), with
a copy to The Bank of New York, at One Wall Street, 16th Floor, New York, New
York 10286, Attention of: Stephen Nettler Telephone No. ((212) 635-8699);
Facsimile No. ((212) 635-8593), with a copy to Cahill

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Gordon & Reindel LLP, 80 Pine
Street, New York, New York 10005, Attention of William M. Hartnett, Esq.
(Telephone No. (212) 701-3000, Facsimile No. (212) 269-5420) and Michael
Becker, Esq. (Telephone No. (212) 701-3000, Facsimile No. (212) 269-5420); and

(c)                                  if
to any other Credit Party, to it at its address (or facsimile number) set forth
in its Administrative Questionnaire.

Any party hereto may change its address or facsimile
number for notices and other communications hereunder by notice to the other
parties hereto.  All notices and other
communications given to any party hereto in accordance with the provisions of
this Agreement shall be deemed to have been given on the date of receipt.

Notices and other communications to the Lenders and
the Issuing Banks hereunder may also be delivered or furnished by electronic
communications (including e-mail and Internet or intranet website) pursuant to
procedures approved by the Administrative Agent; provided that the
foregoing shall not apply to notices to any Lender or Issuing Bank pursuant to
Article 2 if such Lender or Issuing Bank, as applicable, has notified the
Administrative Agent that it is incapable of receiving notices under such
Article by electronic communication. The Administrative Agent, the Collateral
Agent or the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may
be limited to particular notices or communications.

Section 10.2.                             Waivers;
Amendments

(a)                                  No
failure or delay by any Credit Party in exercising any right or power under any
Loan Document shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Credit Parties
under the Loan Documents are cumulative and are not exclusive of any rights or
remedies that they would otherwise have. 
No waiver of any provision of any Loan Document or consent to any
departure by any Loan Party therefrom shall in any event be effective unless
the same shall be permitted by paragraph (b) of this Section, and then such
waiver or consent shall be effective only in the specific instance and for the
purpose for which given.  Without
limiting the generality of the foregoing, the making of a Loan or the issuance,
amendment, extension or renewal of a Letter of Credit shall not be construed as
a waiver of any Default, regardless of whether any Credit Party may have had
notice or knowledge of such Default at the time.

(b)                                 Except
as provided in paragraphs (d), (e) and (f) of Section 2.1 with respect to
Additional Term Loans and Section 2.5(d) with respect to a new Revolving
Commitment, neither any Loan Document nor any provision thereof may be waived,
amended or modified except pursuant to an agreement or agreements in writing
entered into by the Borrower and the Required Lenders or by the Borrower and
the Administrative Agent with the consent of the Required Lenders, provided
that no such agreement shall (i) increase any Commitment of any Lender without
the written consent of such Lender, (ii) reduce the principal amount of any
Loan or any reimbursement obligation with respect to an LC Disbursement, or
reduce the rate of any interest thereon (other than any waiver of default
interest payable pursuant to Section 3.1(b)), or reduce any fees, payable
hereunder, without the written consent of each Credit Party directly and
adversely affected thereby, (iii) postpone any scheduled principal payment date
or postpone any other payment at stated maturity of any Loan or the date of payment of any reimbursement
obligation with respect to an LC Disbursement, any interest (other than any
waiver of default interest) or any fees payable hereunder, or reduce (other
than any waiver of default interest) the amount of, or waive or excuse any such
payment, without the written consent of each Credit Party directly and adversely

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affected
thereby, (iv) change any provision hereof in a manner that would alter the pro
rata sharing of payments required by Section 2.11(b), the application of
mandatory prepayments required by Section 2.7(b), or the pro rata reduction of
Revolving Commitments required by Section 2.5(d), without the written consent
of each Credit Party directly and adversely affected thereby, (v) change any of
the provisions of this Section or reduce the percentage set forth in the
definition of the term “Required Lenders” or any other provision hereof
specifying the number or percentage of Lenders required to waive, amend or
modify any rights hereunder or make any determination or grant any consent
hereunder, without the written consent of each Lender (it being understood that
an amendment shall not be deemed to change such provisions to the extent it
effects an increase in the commitment of any Lender(s) or in the aggregate
amount of the commitments of any class), (vi) release the Parent or any
material Subsidiary Guarantor from its Guarantee under the Guarantee Documents
(except as expressly provided herein or in the Security Documents or the Guarantee
Documents), or limit its liability in respect of such Guarantee, without the
written consent of each Lender, or (vii) release all or substantially all of
the Collateral from the Liens of the Loan Documents, without the written
consent of each Lender, and provided, further, that (A) no such
agreement shall amend, modify or otherwise affect the rights or duties of the
Administrative Agent, an Issuing Bank or the Swingline Lender hereunder without
the prior written consent of the Administrative Agent, such Issuing Bank or the
Swingline Lender, as applicable, (B) any waiver, amendment or modification of
this Agreement that by its terms affects the rights or duties under this
Agreement of one Class of Lenders (but not of any other Class of Lenders) may
be effected by an agreement or agreements in writing entered into by the
Borrower and the requisite percentage in interest of the affected Class of
Lenders that would be required to consent thereto under this Section if such
Class of Lenders were the only Class of Lenders hereunder at the time and
(C) any amendment or modification of defined terms used in the Financial
Covenants shall require the consent only of the Borrower and the Required
Lenders.  Notwithstanding anything to the
contrary herein, no Defaulting Lender shall have any right to approve or
disapprove any amendment, waiver or consent hereunder, except that the
Commitment of such Lender may not be increased or extended without its consent
and the principal amount of any outstanding Loans (or the rate of interest
thereon) or fee of such Defaulting Lender shall not be decreased without such Defaulting
Lender’s consent.

(c)                                  In
connection with any proposed amendment, modification, waiver or termination (a “Proposed
Change”) requiring the consent of all Lenders or all affected Lenders, if
the consent of the Required Lenders to such Proposed Change is obtained, but
the consent to such Proposed Change of other Lenders whose consent is required
is not obtained (any such Lender whose consent is not obtained as described in
paragraph (b) of this Section being referred to as a “Non-Consenting Lender”),
then, so long as the Lender that is acting as Administrative Agent is not a
Non-Consenting Lender, the Borrower may, at its sole expense and effort, upon
notice to such Non-Consenting Lenders and the Administrative Agent, require
each of the Non-Consenting Lenders to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in Section 10.4), all
its interests, rights and obligations under this Agreement to an assignee that
shall assume such obligations (which assignee may be another Lender, if a
Lender accepts such assignment) and that shall consent to the Proposed Change, provided
that (a) the Borrower shall have received the prior written consent of the
Administrative Agent (and, if a Revolving Commitment is being assigned, each
Issuing Bank and the Swingline Lender), which consent(s) shall not unreasonably
be withheld, conditioned or delayed, (b) each Non-Consenting Lender shall have
received payment of an amount equal to the outstanding principal of its Loans
and participations in LC Disbursements, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder from the assignee (to the extent
of such outstanding principal and accrued interest and fees) or the Borrower
(in the case of all other amounts) and (c) the Borrower or such assignee
shall have paid to the Administrative Agent the processing and recordation fee
specified in Section 10.4(b).

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(d)                                 Notwithstanding
anything to the contrary contained in this Section, this Agreement may be
amended (or amended and restated) with the written consent of the Required
Lenders, the Administrative Agent and the Borrower (a) to add one or more
additional credit facilities to this Agreement (it being understood that no
Lender shall have any obligation to provide or to commit to provide all or any
portion of any such additional credit facility) and to permit the extensions of
credit from time to time outstanding thereunder and the accrued interest and
fees in respect thereof to share ratably in the benefits of this Agreement and
the other Loan Documents with the Term Loans, Revolving Loans and any
Additional Term Loans and the accrued interest and fees in respect thereof and
(b) to include appropriately the Lenders holding such credit facilities in any
determination of the Required Lenders.

(e)                                  In
addition, notwithstanding anything to the contrary contained in this Section,
this Agreement may be amended with the written consent of the Administrative
Agent, the Borrower and the Lenders providing the relevant Replacement Term
Loans (as defined below) to permit the refinancing of all outstanding Term
Loans (“Refinanced Term Loans”) with a replacement term loan tranche hereunder
(“Replacement Term Loans”), provided that (a) the aggregate
principal amount of such Replacement Term Loans shall not exceed the aggregate
principal amount of such Refinanced Term Loans (plus all accrued and unpaid interest thereon and the amount of any
premium necessary to accomplish such refinancing and expenses incurred in
connection therewith), (b) the Applicable Margin (or similar interest
rate spread) for such Replacement Term Loans shall not be higher than the
Applicable Margin (or similar interest rate spread) for such Refinanced Term
Loans, (c) the Weighted Average Life to Maturity of such Replacement Term Loans
shall not be shorter than the Weighted Average Life to Maturity of such Refinanced
Term Loans at the time of such refinancing and (d) all other terms applicable
to such Replacement Term Loans shall be substantially identical to, or less
favorable to the Lenders providing such Replacement Term Loans than, those
applicable to such Refinanced Term Loans, except to the extent necessary to provide
for covenants and other terms applicable to any period after the latest final
maturity of the Term Loans in effect immediately prior to such refinancing.

(f)                                    Further,
notwithstanding anything to the contrary contained in this Section, if within
sixty (60) days following the Closing Date, the Administrative Agent and the
Borrower shall have jointly identified an obvious error or any error or
omission of a technical or immaterial nature, in each case, in any provision of
any of the Loan Documents, then the Administrative Agent (acting in its sole
discretion) and the Borrower shall be permitted to amend such provision and
such amendment shall become effective without any further action or consent of
any other party to any Loan Document if the same is not objected to in writing
by the Required Lenders within five Business Days following receipt of notice
thereof.

(g)                                 Any
Lender may authorize the Administrative Agent to sign any amendment,
modification or waiver hereto in any authorization form agreed to by the
Borrower and the Administrative agent and no Lender shall be entitled to see
any other Lender’s authorization form.

Section 10.3.                             Expenses;
Indemnity; Damage Waiver

(a)                                  The
Borrower shall pay (i) all reasonable and documented out-of-pocket costs and
expenses incurred by the Administrative Agent and its Affiliates, including the
reasonable fees, charges and disbursements of (x) Cahill Gordon & Reindel LLP, special
counsel for the Joint Lead Arrangers and Joint Book Runners, in connection with
the preparation and syndication of the credit facilities provided for herein
and (y) counsel for the Administrative Agent in connection with the preparation
and administration of this Agreement or any amendments, modifications or
waivers of the provisions of any Loan Document, (ii) all reasonable and
documented out-of-pocket costs and expenses incurred by each Issuing Bank in
connection with the issuance, amendment, renewal or extension of any Letter of
Credit or

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any demand for payment thereunder and (iii)
all out-of-pocket costs expenses incurred by any Credit Party, including the
reasonable and documented fees, charges and disbursements of a single firm of
counsel for the Credit Parties (unless a conflict exists, in which case, the
reasonable and documented fees, charges and disbursements of reasonably
necessary additional counsel for the affected Credit Parties shall be covered),
in connection with the enforcement or protection of its rights in connection
with the Loan Documents during the continuation of an Event of Default,
including its rights under this Section, or in connection with the Loans made
or Letters of Credit issued hereunder, including all such out-of-pocket
costs and expenses incurred during any workout, restructuring or negotiations
in respect of such Loans or Letters of Credit.

(b)                                 The
Borrower shall indemnify each Credit Party and each Related Party thereof (each
such Person being called an “Indemnitee”) against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and
related expenses, including the reasonable and documented fees, charges and
disbursements of a single firm of counsel for the Indemnitees (unless a
conflict exists, in which case, reasonable and documented fees, charges and
disbursements of reasonably necessary additional counsel for the affected
Indemnitees shall be covered), but excluding Taxes, which are governed by
Section 3.7, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of (i) the execution or delivery of any Loan
Document or any agreement or instrument contemplated thereby, the performance
by the parties to the Loan Documents of their respective obligations thereunder
or the consummation of the Transactions or any other transactions contemplated
thereby, (ii) any Loan or Letter of Credit or the use of the proceeds thereof
including any refusal of an Issuing Bank to honor a demand for payment under a
Letter of Credit if the documents presented in connection with such demand do
not strictly comply with the terms of such Letter of Credit, (iii) any actual
or alleged presence or release of Hazardous Materials on or from any property
owned or operated by the Parent, the Borrower or any of the Subsidiaries, or
any Environmental Liability related in any way to the Parent, the Borrower or
any of the Subsidiaries or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is
a party thereto, provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from (A) the
bad faith, gross negligence or willful misconduct of such Indemnitee or any of
its Related Parties, (B) any claims of such Indemnitee against any other
Indemnitee and/or (C) the breach by such Indemnitee of its obligations
hereunder or under any other Loan Document.

(c)                                  To
the extent that the Borrower fails to pay any amount required to be paid by it
to the Administrative Agent, any Issuing Bank or the Swingline Lender under
paragraph (a) or (b) of this Section, each Revolving Lender severally agrees to
pay to the Administrative Agent, such Issuing Bank or the Swingline Lender, as
applicable, an amount equal to the product of such unpaid amount multiplied
by a fraction, the numerator of which is such Revolving Lender’s Total
Credit Exposure and the denominator of which is the aggregate Total Credit
Exposure of all Revolving Lenders (in each case determined as of the time that
the applicable unreimbursed expense or indemnity payment is sought or, in the
event that no Revolving Lender shall have any Total Credit Exposure at such
time, as of the last time at which any Revolving Lender had a Total Credit
Exposure), provided that the unreimbursed expense or indemnified loss,
claim, damage, liability or related expense, as applicable, was incurred by or
asserted against the Administrative Agent, such Issuing Bank or the Swingline
Lender in its capacity as such.

(d)                                 To
the extent permitted by applicable law, the Borrower shall not assert, and
hereby waives, any claim against any Indemnitee, on any theory of liability,
for special, indirect, consequential or punitive damages (as opposed to direct
and actual damages) arising out of, in connection with,

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or as a result of, any Loan Document or any agreement, instrument or
other document contemplated thereby, the Transactions or any Loan or any Letter
of Credit or the use of the proceeds thereof.

(e)                                  All
amounts due under this Section shall be payable promptly but in no event later
than ten Business Days after written demand therefor.

Section 10.4.                             Successors
and Assigns

(a)                                  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted
hereby, except that (i) the Borrower may not assign or otherwise transfer any
of its rights or obligations hereunder without the prior written consent of
each Lender (and any attempted assignment or transfer by the Borrower without
such consent shall be null and void) and (ii) no Lender may assign or otherwise
transfer its rights or obligations hereunder except in accordance with this
Section. Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby and, to the extent expressly
contemplated hereby, the Related Parties of each Credit Party) any legal or
equitable right, remedy or claim under or by reason of any Loan Document.

(b)                                 Any
Lender may assign to one or more banks or other financial institutions all or a
portion of its rights and obligations under this Agreement (including all or a
portion of its Revolving Commitment or obligations in respect of its LC Exposure,
A Term Commitment, B Term Commitment and/or Additional Term Loan Commitment and
the Loans at the time owing to it), provided that (i) except in the case
of an assignment to a Lender or an Affiliate or Approved Fund of any Lender,
each of the Borrower and the Administrative Agent (and, in the case of an
assignment of all or any portion of a Revolving Commitment or obligations in
respect of its LC Exposure, each Issuing Bank and, in the case of an assignment
of all or any portion of a Revolving Commitment or obligations in respect of
its Swingline Exposure, the Swingline Lender) must give its prior written
consent to such assignment (which consent shall not be unreasonably withheld,
conditioned or delayed), (ii) except in the case of an assignment to a Lender
or an Affiliate or Approved Fund of any Lender or an assignment of the entire
remaining amount of the assigning Lender’s Revolving Commitment, the amount of
the Revolving Commitment and A Term Loans of the assigning Lender subject to
each such assignment (determined as of the date the Assignment and Acceptance
with respect to such assignment is delivered to the Administrative Agent) shall
not be less than $5,000,000 and after giving effect to such assignment such
Lender shall have a Revolving Commitment and A Term Loans outstanding equal to
at least $5,000,000 unless the Borrower and the Administrative Agent otherwise
consent, (iii) except in the case of an assignment to a Lender or an Affiliate
or Approved Fund of any Lender, the amount of the B Term Loans of the assigning
Lender subject to each such assignment (determined as of the date the
Assignment and Acceptance with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $1,000,000 without the consent of
the Borrower and the Administrative Agent, (iv) except in the case of an
assignment to a Lender or an Affiliate or Approved Fund of any Lender or an
assignment of the entire remaining amount of the assigning Lender’s Additional
Term Loan Commitment, the amount of the Additional Term Loan Commitment and Additional
Term Loans of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Acceptance with respect to such assignment is
delivered to the Administrative Agent) shall not be less than $1,000,000
without the consent of the Borrower and the Administrative Agent, (v) the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Acceptance together with a processing and recordation
fee of $3,500, provided that in the case of assignments on the same day
by a Lender to more than one fund managed or advised by the same investment
advisor, such assignments shall be deemed to be a single assignment for
purposes of the calculation and payment of such processing and recordation fee,
provided further that no such fee shall be payable in connection
with any assignments by any of the Arrangers or their respective Affiliates in
connection

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with the primary syndication of the Loans hereunder, and (vi) the
assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire, and provided  further, that
any consent of the Borrower otherwise required under this paragraph shall not
be required if an Event of Default under paragraphs (a), (b), (h) or (i) of
Article 8 has occurred and is continuing. 
Subject to acceptance and recording thereof pursuant to paragraph (d) of
this Section, from and after the effective date specified in each Assignment
and Acceptance, the assignee thereunder shall be a party hereto and, to the
extent of the interest assigned by such Assignment and Acceptance, have the
rights and obligations of a Lender under the Loan Documents, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Acceptance, be released from its obligations under the Loan Documents
(and, in the case of an Assignment and Acceptance covering all of the assigning
Lender’s rights and obligations under the Loan Documents, such Lender shall
cease to be a party hereto but shall continue to be subject to the obligations
under and be entitled to the benefits of Sections 3.5, 3.6, 3.7 and 10.3).  Any assignment or transfer by a Lender of
rights or obligations under the Loan Documents that does not comply with this
paragraph shall be treated for purposes of the Loan Documents as a sale by such
Lender of a participation in such rights and obligations in accordance with
paragraph (e) of this Section.

(c)                                  The
Administrative Agent, acting for this purpose as an agent of the Borrower,
shall maintain at one of its offices in New York City a copy of each Assignment
and Acceptance delivered to it and a register for the recordation of the names
and addresses of the Lenders, and the Commitment of, and principal amount of
the Loans owing to, each Lender pursuant to the terms hereof from time to time
(the “Register”).  The entries in
the Register shall be conclusive absent demonstrable error, and the Borrower
and each Credit Party shall treat each Person whose name is recorded in the
Register pursuant to the terms hereof as a Lender hereunder for all purposes of
this Agreement, notwithstanding notice to the contrary.  The Register shall be available for
inspection by the Borrower and any Credit Party, at any reasonable time and
from time to time upon reasonable prior notice.

(d)                                 Upon
its receipt of a duly completed Assignment and Acceptance executed by an
assigning Lender and an assignee, the assignee’s completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the processing
and recordation fee referred to in paragraph (b) of this Section and any
written consent to such assignment required by paragraph (b) of this Section,
the Administrative Agent shall accept such Assignment and Acceptance and record
the information contained therein in the Register.  No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in
this paragraph.

(e)                                  Any
Lender may, without the consent of the Borrower or any Credit Party, sell
participations to one or more banks or other financial institutions (each such
bank or other financial institution being called a “Participant”) in all
or a portion of such Lender’s rights and obligations under the Loan Documents
(including all or a portion of its Revolving Commitment, LC Exposure and
outstanding Revolving Loans, A Term Loans, B Term Loans and Additional Term
Loans owing to it), provided that (i) such Lender’s obligations under
the Loan Documents shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (iii) the Loan Parties and the Credit Parties shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights
and obligations under the Loan Documents. 
Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce the Loan Documents and to approve any amendment, modification or waiver
of any provision of any Loan Documents, provided that such agreement or
instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver described in the
first proviso to Section 10.2(b) that affects such Participant.  Subject to paragraph (f) of this Section, the
Borrower agrees that each Participant shall be entitled to the benefits of
Sections 3.5, 3.6 and 3.7 (and shall have the related obligations thereunder)
to the same extent as if it were a Lender and had

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acquired its interest by assignment pursuant to paragraph (b) of this
Section.  To the extent permitted by law,
each Participant also shall be entitled to the benefits of Section 10.8 as
though it were a Lender, provided that such Participant agrees to be subject
to Section 2.11(c) as though it were a Lender.

(f)                                    A
Participant shall not be entitled to receive any greater payment under Section
3.5 or 3.7 than the Lender would have been entitled to receive with respect to
the participation sold to such Participant, unless the Borrower has expressed
prior written consent to such greater payment. Notwithstanding the foregoing, a
Lender which is required to acquire a participation pursuant to Section 2.11(c)
shall be entitled to payment under Section 3.5 or 3.7 with respect to such
participation proportionately to the same extent as such Lender is entitled to
payment under Section 3.5 or 3.7, as applicable, with respect to its interest
in the Loans other than such participation. A Participant shall not be entitled
to the benefits of Section 3.7 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of the Borrower, to comply with Section 3.7(e) and (f) as though it were
a Lender.

(g)                                 Any
Lender may at any time pledge or assign a security interest in all or any portion
of its rights under the Loan Documents to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank, and this Section shall not apply to any such pledge or assignment of a
security interest, provided that no such pledge or assignment of a
security interest shall release a Lender from any of its obligations under the
Loan Documents or substitute any such pledgee or assignee for such Lender as a
party hereto.

(h)                                 No
assignment or participation made or purported to be made to any Assignee or
Participant shall be effective without the prior written consent of the
Borrower if it would require the Borrower to make any filing with any
Governmental Authority or qualify any Loan or Note under the laws of any
jurisdiction, and the Borrower shall be entitled to request and receive such
information and assurances as it may reasonably request from any Lender or any
Assignee or Participant to determine whether any such filing or qualification
is required or whether any assignment or participation is otherwise in accordance
with applicable law.

Section 10.5.                             Survival

All covenants, agreements, representations and warranties
made by the Borrower herein and in the certificates or other instruments
prepared or delivered in connection with or pursuant to this Agreement or any
other Loan Document shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of any Loan
Document and the making of any Loans and the issuance of any Letter of Credit,
regardless of any investigation made by any such other party or on its behalf
and notwithstanding that any Credit Party may have had notice or knowledge of
any Default or incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any LC Disbursement or any
fee or any other amount payable under the Loan Documents is outstanding and
unpaid (other than contingent or indemnification obligations not then due) or any Letter of Credit is outstanding
and so long as the Commitments have not expired or terminated.  The provisions of Sections 3.5, 3.6, 3.7 and
10.3, 10.9, 10.10 and Article 9 shall survive and remain in full force and
effect regardless of the consummation of the transactions contemplated hereby,
the repayment of the Loans and the LC Disbursements, the expiration or
termination of the Letters of Credit and the termination of the Commitments or
the termination of this Agreement or any provision hereof.

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Section 10.6.                             Counterparts;
Integration; Effectiveness

This Agreement may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall
constitute an original, but all of which, when taken together, shall constitute
a single contract.  This Agreement and
any separate letter agreements with respect to fees payable to any Credit Party
constitute the entire contract among the parties relating to the subject matter
hereof and supersede any and all previous agreements and understandings, oral
or written, relating to the subject matter hereof.  Delivery of an executed counterpart of this
Agreement by facsimile transmission or electronic photocopy
(i.e., “pdf”) shall
be effective as delivery of a manually executed counterpart of this
Agreement.  Notwithstanding the
foregoing, each Lender by signing a Lender Authorization with the
Administrative Agent shall be deemed to have been a signatory hereto.  Each Lender signatory to a Lender
Authorization agrees that such Lender shall not be entitled to receive a copy
of any other Lender’s Lender Authorization.

Section 10.7.                             Severability

In the event any one or more of the provisions
contained in this Agreement should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected or impaired
thereby (it being understood that the invalidity of a particular provision in a
particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction).

Section 10.8.                             Right
of Setoff

If an Event of Default under Section 8(a) or (f) shall
have occurred and be continuing, each of the Lenders and their respective
Affiliates is hereby authorized at any time and from time to time, to the
fullest extent permitted by applicable law, to setoff and apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held and other obligations at any time owing by it to or for the credit or the
account of the Borrower against any of and all the obligations of the Borrower
now or hereafter existing under this Agreement held by it, irrespective of
whether or not it shall have made any demand under this Agreement and although
such obligations may be unmatured.  Each Lender and
Affiliate agrees to notify the Borrower and the Administrative Agent promptly
after any such setoff and application; provided that the failure to give
such notice shall not affect the validity of such setoff and application.  The rights of each the Lenders and their respective
Affiliates under this Section are in addition to other rights and remedies (including
other rights of setoff) that it may have.

Section 10.9.                             Governing
Law; Waiver of Jury Trial

THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

EACH PARTY HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

Section 10.10.                       Submission
To Jurisdiction; Waivers

Each party hereto hereby irrevocably and
unconditionally:

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(a)                                  submits
for itself and its property in any legal action or proceeding relating to this
Agreement and the other Loan Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the non-exclusive
general jurisdiction of the courts of the State of New York, the courts of the
United States for the Southern District of New York, and appellate courts
from any thereof;

(b)                                 consents
that any such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in
an inconvenient court and agrees not to plead or claim the same;

(c)                                  agrees
that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to it at its address set forth in
Section 10.1 or at such other address of which the Administrative Agent shall
have been notified pursuant thereto;

(d)                                 agrees
that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to sue in any other
jurisdiction; and

(e)                                  waives,
to the maximum extent not prohibited by law, any right it may have to claim or
recover in any legal action or proceeding referred to in this Section any
special, exemplary, punitive or consequential damages.

Section 10.11.                       Headings

Article and Section headings and the Table of Contents
used herein are for convenience of reference only, are not part of this Agreement
and shall not affect the construction of, or be taken into consideration in
interpreting, this Agreement.

Section 10.12.                       Interest
Rate Limitation

Notwithstanding anything herein to the contrary, if at
any time the interest rate applicable to any Loan, together with all fees,
charges and other amounts that are treated as interest on such Loan under
applicable law (collectively the “charges”), shall exceed the maximum
lawful rate (the “maximum rate”) that may be contracted for, charged,
taken, received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all of the charges payable in respect thereof, shall be limited
to the maximum rate and, to the extent lawful, the interest and the charges
that would have been payable in respect of such Loan but were not payable as a
result of the operation of this Section shall be cumulated, and the interest
and the charges payable to such Lender in respect of other Loans or periods
shall be increased (but not above the maximum rate therefor) until such
cumulated amount, together with interest thereon at the Federal Funds Effective
Rate to the date of repayment, shall have been received by such Lender.

Section 10.13.                       Patriot
Act

Each Lender that is subject to the Act (as hereinafter
defined) and the Administrative Agent (for itself and not on behalf of any
Lender) hereby notifies the Borrower that pursuant to the requirements of the
USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name,
address and tax identification number of the Borrower and other information
regarding the Borrower that will allow such Lender or the Administrative Agent,
as applicable, to

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identify the Borrower in accordance with the Act.  This notice is given in accordance with the
requirements of the Act and is effective as to the Lenders and the
Administrative Agent.

Section 10.14.                       Confidentiality

(a)                                  Each
of the Administrative Agent, the Issuing Banks and the Lenders agrees to
maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (i) to its and its Affiliates’ directors,
officers, employees and agents, including accountants, legal counsel and other
advisors (it being understood that the Persons to whom such disclosure is made
will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (ii) to the extent requested by any
regulatory authority, (iii) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (iv) to any other
party to this Agreement, (v) in connection with the exercise of any remedies
hereunder or any suit, action or proceeding relating to this Agreement or any
other Loan Document or the enforcement of rights hereunder or thereunder, (vi)
subject to an agreement containing provisions substantially the same as those
of this Section, to (A) any assignee under Section 10.4 or pledgee under
Section 10.4(g) of or Participant in (or trustee for such assignee, pledge or
Participant), or any prospective assignee under Section 10.4 or pledgee under
Section 10.4(g) of or Participant in (or trustee for such assignee, pledge or
Participant), any of its rights or obligations under this Agreement or (B) any
actual or prospective counterparty (or its advisors) to any swap or derivative
transaction relating to the Borrower and its obligations, (vii) with the
consent of the Borrower or (viii) to the extent such Information (A) becomes
publicly available other than as a result of a breach of this Section or (B)
becomes available to the Administrative Agent, any Issuing Bank or any Lender
on a non-confidential basis from a source other than the Borrower (other than a
source actually known by such disclosing Person to be bound by confidentiality
provisions comparable to those set forth in this Section 10.14). For the
purposes of this Section, “Information” means all information received
from or on behalf of the Borrower relating to the Borrower, any Loan Party or any of their Affiliates
or their respective businesses, other than any such information that is
available to the Administrative Agent, Issuing Bank or Lender on a
non-confidential basis prior to disclosure by or on behalf of the Borrower
(other than from a source actually known by such party to be bound by
confidentiality obligations). Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

(b)                                 EACH
LENDER ACKNOWLEDGES THAT CONFIDENTIAL INFORMATION AS DEFINED IN SECTION 10.14
FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC
INFORMATION CONCERNING THE BORROWER AND ITS AFFILIATES OR THEIR RESPECTIVE
SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING
THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH
MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND
APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

(c)                                  ALL
INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE
BORROWER OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF
ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY
CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER, THE OTHER LOAN
PARTIES AND THEIR AFFILIATES OR THEIR RESPECTIVE SECURITIES.  ACCORDINGLY, EACH LENDER REPRESENTS TO THE
BORROWER AND THE ADMINISTRATIVE AGENT THAT IT HAS

 102
 

 

IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE DELIVERED TO THE
ADMINISTRATIVE AGENT A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY
CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE
PROCEDURES AND APPLICABLE LAW.

 103

 

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

	
  

  	
  INSIGHT MIDWEST HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest L.P., its sole member

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P.,

  
	
   

  	
   

  	
  its sole general partner

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  
	
   

  	
   

  	
  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, as a Lender, as

  
	
   

  	
  an Issuing Bank, and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen M. Nettler

  
	
   

  	
   

  	
  Name:

  	
  Stephen M. Nettler

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter M. Ling

  
	
   

  	
   

  	
  Name:

  	
  Peter M. Ling

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  J.P. MORGAN SECURITIES INC., as Co-Syndication
  Agent, Joint Lead Arranger and Joint Bookrunner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Anastasio

  
	
   

  	
   

  	
  Name:

  	
  Robert Anastasio

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

 

	
  

  	
  BANK OF AMERICA, N.A., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher Ray

  
	
   

  	
   

  	
  Name:

  	
  Christopher Ray

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MORGAN STANLEY BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Twenge

  
	
   

  	
   

  	
  Name:

  	
  Daniel Twenge

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MORGAN STANLEY SENIOR FUNDING, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Twenge

  
	
   

  	
   

  	
  Name:

  	
  Daniel Twenge

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John D. Brady

  
	
   

  	
   

  	
  Name:

  	
  John D. Brady

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  THE ROYAL BANK OF SCOTLAND PLC, as a Lender and as
  Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew Wynn

  
	
   

  	
   

  	
  Name:

  	
  Andrew Wynn

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BARCLAYS BANK PLC, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nicholas Bell

  
	
   

  	
   

  	
  Name:

  	
  Nicholas Bell

  
	
   

  	
   

  	
  Title:

  	
  Director

  

 

 

 

	
  

  	
  CALYON NEW YORK, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tanya Crossley

  
	
   

  	
   

  	
  Name:

  	
  Tanya Crossley

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John McCloskey

  
	
   

  	
   

  	
  Name:

  	
  John McCloskey

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FIFTH THIRD BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George B. Davis

  
	
   

  	
   

  	
  Name:

  	
  George B. Davis

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BNP PARIBAS, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregg Bonardi

  
	
   

  	
   

  	
  Name:

  	
  Gregg Bonardi

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ola Anderssen

  
	
   

  	
   

  	
  Name:

  	
  Ola Anderssen

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL CORPORATION, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Karl Kieffer

  
	
   

  	
   

  	
  Name:

  	
  Karl Kieffer

  
	
   

  	
   

  	
  Title:

  	
  Duly Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]