Document:

<PAGE>
                                                                   EXHIBIT 10(b)

                     AMENDMENT TO THE AMENDED AND RESTATED
               MINNESOTA POWER AND AFFILIATED COMPANIES EXECUTIVE
                                INVESTMENT PLAN I

The  Amended and  Restated  Minnesota Power  and Affiliated  Companies Executive
Investment Plan I effective January 1, 1988, is amended as follows:

      1.    Effective  August 9, 2006,  Section 6.4.1 is  amended to DELETE  the
      following:

            In the event  that  there is a Change  in  Control,  and if,  within
            twelve  (12)  months  after a Change  in  Control a  Participant  is
            involuntarily  terminated,  the Participant  shall be entitled to an
            additional  benefit  equal to  forty  percent  (40%)  of any  amount
            distributed  ("Supplemental Tax Benefit") pursuant to Section 6.4.1.
            If a Participant is eligible for  Retirement,  no  Supplemental  Tax
            Benefit will be paid.

                               ALLETE, INC.

                               By: /s/ Donald J. Shippar
                                   ---------------------------------------------
                                   Donald J. Shippar
                                   Chairman, President & Chief Executive Officer

ATTEST:

By: /s/ Deborah A. Amberg
    ---------------------------
    Deborah A. Amberg
    Senior Vice President,
    General Counsel & Secretary<PAGE>
                                                                   EXHIBIT 10(c)

                           TO THE AMENDED AND RESTATED
               MINNESOTA POWER AND AFFILIATED COMPANIES EXECUTIVE
                               INVESTMENT PLAN II

The Amended and Restated Minnesota Power and Affiliated Companies Executive
Investment Plan I effective November 1, 1988, is amended as follows:

      1.    Effective  August 9, 2006,  Section 6.4.1 is amended  to DELETE  the
      following:

            In the event  that  there is a Change  in  Control,  and if,  within
            twelve  (12)  months  after a Change  in  Control a  Participant  is
            involuntarily  terminated,  the Participant  shall be entitled to an
            additional  benefit  equal to  forty  percent  (40%)  of any  amount
            distributed  ("Supplemental Tax Benefit") pursuant to Section 6.4.1.
            If a Participant is eligible for  Retirement,  no  Supplemental  Tax
            Benefit will be paid.

                               ALLETE, INC.

                               By: /s/ Donald J. Shippar
                                   ---------------------------------------------
                                   Donald J. Shippar
                                   Chairman, President & Chief Executive Officer

ATTEST:

By: /s/ Deborah A. Amberg
    ---------------------------
    Deborah A. Amberg
    Senior Vice President,
    General Counsel & Secretary<PAGE>
                                                                   EXHIBIT 10(d)

                                  AMENDMENT TO
                            THE AMENDED AND RESTATED
                                     ALLETE
                       DIRECTOR COMPENSATION DEFERRAL PLAN

The  Amended and  Restated  ALLETE  Director  Compensation  Deferral Plan, dated
effective January 1, 1990, is amended as follows:

1.    Effective October 1, 2006, Section 5.1 is amended to ADD the following:

      Any annuity  provided under this section shall be calculated  using a 7.5%
      interest   rate,   or  such   other  rate  as   approved   by  the  Board.
      Notwithstanding  the  foregoing,  annuities  under this  section  shall be
      calculated  using an 8% interest rate in any  circumstance in which one of
      the following  conditions applies:  (i) the Director left service prior to
      January  1,  2007;  or (ii)  the  Director  provided  official  notice  of
      retirement  to the  Company  prior to  January  1, 2007 with an  effective
      retirement date on or before April 1, 2007.

                               ALLETE, INC.

                               By: /s/ Donald J. Shippar
                                   ---------------------------------------------
                                   Donald J. Shippar
                                   Chairman, President & Chief Executive Officer

ATTEST:

By: /s/ Deborah A. Amberg
    ---------------------------
    Deborah A. Amberg
    Senior Vice President,
    General Counsel & SecretaryExhibit 10.1 - Credit Agreement

     

      
        

      

    

    

    

     

    CREDIT
      AGREEMENT

     

    dated
      as of

    October
      27, 2006

     

    Among

     

    ICO,
      INC., 

    BAYSHORE
      INDUSTRIAL, L.P. and

    ICO
      POLYMERS NORTH AMERICA, INC.,

    as
      Borrowers,

     

    

    KEYBANK
      NATIONAL ASSOCIATION, 

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION, 

    AND
      THE OTHER LENDING INSTITUTIONS NAMED HEREIN,

    as
      Lenders,

    

    and

    

    KEYBANK
      NATIONAL ASSOCIATION,

    as
      an LC Issuer, Lead Arranger, Bookrunner,

    Administrative
      Agent and Syndication Agent

    

    

     

    $30,000,000
      Revolving Facility

    $15,000,000
      Term Facility

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE
      OF CONTENTS

    
      	 	 	
              Page

            
	
              ARTICLE
                I.

            	
              DEFINITIONS
                AND TERMS

            	
              1

            

    

    

    
      	 	
              Section
                1.01

            	
              Certain
                Defined Terms

            	
              1

            
	 	
              Section
                1.02

            	
              Computation
                of Time Periods

            	
              24

            
	 	
              Section
                1.03

            	
              Accounting
                Terms

            	
              24

            
	 	
              Section
                1.04

            	
              Terms
                Generally

            	
              25

            
	 	
              Section
                1.05

            	
              Borrower
                Representative

            	
              25

            

    

    

    
      	
              ARTICLE
                II.

            	
              THE
                TERMS OF THE CREDIT FACILITY

            	
              25

            

    

    

    
      	 	
              Section
                2.01

            	
              Establishment
                of the Credit Facility

            	
              25

            
	 	
              Section
                2.02

            	
              Revolving
                Facility

            	
              25

            
	 	
              Section
                2.03

            	
              Term
                Loan

            	
              26

            
	 	
              Section
                2.04

            	
              [Reserved]

            	
              26

            
	 	
              Section
                2.05

            	
              Letters
                of Credit

            	
              26

            
	 	
              Section
                2.06

            	
              Notice
                of Borrowing

            	
              30

            
	 	
              Section
                2.07

            	
              Funding
                Obligations; Disbursement of Funds

            	
              31

            
	 	
              Section
                2.08

            	
              Evidence
                of Obligations

            	
              32

            
	 	
              Section
                2.09

            	
              Interest;
                Default Rate

            	
              32

            
	 	
              Section
                2.10

            	
              Conversion
                and Continuation of Loans

            	
              33

            
	 	
              Section
                2.11

            	
              Fees

            	
              34

            
	 	
              Section
                2.12

            	
              Termination
                and Reduction of Revolving Commitments

            	
              35

            
	 	
              Section
                2.13

            	
              Voluntary,
                Scheduled and Mandatory Prepayments of Loans

            	
              36

            
	 	
              Section
                2.14

            	
              Method
                and Place of Payment

            	
              37

            
	 	
              Section
                2.15

            	
              Joint
                and Several Liability of the Borrowers

            	
              38

            

    

     

    
      
        	
                ARTICLE
                  III.

              	
                INCREASED
                  COSTS, ILLEGALITY AND TAXES

              	
                39

              

      

    

     

    
      
        	 	
                Section
                  3.01

              	
                Increased
                  Costs, Illegality, etc.

              	
                39

              
	 	
                Section
                  3.02

              	
                Breakage
                  Compensation

              	
                40

              
	 	
                Section
                  3.03

              	
                Net
                  Payments

              	
                41

              
	 	
                Section
                  3.04

              	
                Increased
                  Costs to LC Issuers

              	
                42

              
	 	
                Section
                  3.05

              	
                Change
                  of Lending office; Replacement of Lenders

              	
                43

              

      

    

     

    
      	
              ARTICLE
                IV.

            	
              CONDITIONS
                PRECEDENT

            	
              44

            

    

    

    
      	 	
              Section
                4.01

            	
              Conditions
                Precedent at Closing Date

            	
              44

            
	 	
              Section
                4.02

            	
              Conditions
                Precedent to All Credit Events

            	
              47

            

    

    

    
      	
              ARTICLE
                V.

            	
              REPRESENTATIONS
                AND WARRANTIES

            	
              47

            

    

    
      
        -i-

        
        

      

      
        
        

        
          

        

      

      
        
        

        TABLE
          OF CONTENTS

        (continued)

      

    

    

     

    
      	 	 	
              Page

            

    

    

    
      	 	
              Section
                5.01

            	
              Corporate
                Status

            	
              47

            
	 	
              Section
                5.02

            	
              Power
                and Authority

            	
              47

            
	 	
              Section
                5.03

            	
              No
                Violation

            	
              48

            
	 	
              Section
                5.04

            	
              Governmental
                Approvals

            	
              48

            
	 	
              Section
                5.05

            	
              Litigation

            	
              48

            
	 	
              Section
                5.06

            	
              Use
                of Proceeds; Margin Regulations

            	
              48

            
	 	
              Section
                5.07

            	
              Financial
                Statements

            	
              48

            
	 	
              Section
                5.08

            	
              Solvency

            	
              49

            
	 	
              Section
                5.09

            	
              No
                Material Adverse Change

            	
              49

            
	 	
              Section
                5.10

            	
              Tax
                Returns and Payments

            	
              49

            
	 	
              Section
                5.11

            	
              Title
                to Properties, etc.

            	
              50

            
	 	
              Section
                5.12

            	
              Lawful
                Operations, etc.

            	
              50

            
	 	
              Section
                5.13

            	
              Environmental
                Matters

            	
              50

            
	 	
              Section
                5.14

            	
              Compliance
                with ERISA

            	
              51

            
	 	
              Section
                5.15

            	
              Intellectual
                Property, etc.

            	
              51

            
	 	
              Section
                5.16

            	
              Investment
                Company Act, etc.

            	
              51

            
	 	
              Section
                5.17

            	
              Insurance

            	
              51

            
	 	
              Section
                5.18

            	
              Burdensome
                Contracts; Labor Relations

            	
              51

            
	 	
              Section
                5.19

            	
              Security
                Interests

            	
              52

            
	 	
              Section
                5.20

            	
              True
                and Complete Disclosure

            	
              52

            
	 	
              Section
                5.21

            	
              Defaults

            	
              52

            
	 	
              Section
                5.22

            	
              Anti-Terrorism
                Law Compliance

            	
              52

            
	 	
              Section
                5.23

            	
              Mexico
                Subsidiary; ICO Minerals, Inc.; RE Holdings Entities

            	
              52

            

    

    

    
      	
              ARTICLE
                VI.

            	
              AFFIRMATIVE
                COVENANTS

            	
              53

            

    

    

    
      	 	
              Section
                6.01

            	
              Reporting
                Requirements

            	
              53

            
	 	
              Section
                6.02

            	
              Books,
                Records and Inspections

            	
              56

            
	 	
              Section
                6.03

            	
              Insurance

            	
              56

            
	 	
              Section
                6.04

            	
              Payment
                of Taxes and Claims

            	
              57

            
	 	
              Section
                6.05

            	
              Corporate
                Franchises

            	
              57

            
	 	
              Section
                6.06

            	
              Good
                Repair

            	
              57

            
	 	
              Section
                6.07

            	
              Compliance
                with Statutes, etc.

            	
              57

            
	 	
              Section
                6.08

            	
              Compliance
                with Environmental Laws

            	
              58

            

    

    

     

    
      
        -ii-

        
        

      

      
        
        

        
          

        

      

      
        
        

        TABLE
          OF CONTENTS

        (continued)

      

    

    

     

    
      	 	 	
              Page

            

    

    

    
      	 	
              Section
                6.09

            	
              Certain
                Subsidiaries to Join in Subsidiary Guaranty

            	
              58

            
	 	
              Section
                6.10

            	
              Additional
                Security; Real Estate Matters; Further Assurances

            	
              59

            
	 	
              Section
                6.11

            	
              Fiscal
                Years, Fiscal Quarters

            	
              61

            
	 	
              Section
                6.12

            	
              Senior
                Debt

            	
              61

            
	 	
              Section
                6.13

            	
              Federal
                Tax Liens

            	
              62

            
	 	
              Section
                6.14

            	
              ICO
                Minerals

            	
              62

            
	 	
              Section
                6.15

            	
              Australian
                Loan Defaults

            	
              62

            

    

    

    
      	
              ARTICLE
                VII.

            	
              NEGATIVE
                COVENANTS

            	
              62

            

    

    

    
      	 	
              Section
                7.01

            	
              Changes
                in Business

            	
              62

            
	 	
              Section
                7.02

            	
              Consolidation,
                Merger, Acquisitions, Asset Sales, etc.

            	
              62

            
	 	
              Section
                7.03

            	
              Liens

            	
              63

            
	 	
              Section
                7.04

            	
              Indebtedness

            	
              64

            
	 	
              Section
                7.05

            	
              Investments
                and Guaranty Obligations

            	
              64

            
	 	
              Section
                7.06

            	
              Restricted
                Payments

            	
              65

            
	 	
              Section
                7.07

            	
              Financial
                Covenants

            	
              66

            
	 	
              Section
                7.08

            	
              Limitation
                on Certain Restrictive Agreements

            	
              66

            
	 	
              Section
                7.09

            	
              Transactions
                with Affiliates

            	
              67

            
	 	
              Section
                7.10

            	
              Plan
                Terminations, Minimum Funding, etc.

            	
              67

            
	 	
              Section
                7.11

            	
              RE
                Holdings Entities

            	
              67

            
	 	
              Section
                7.12

            	
              JPMorgan
                Securities Account

            	
              67

            
	 	
              Section
                7.13

            	
              Anti-Terrorism
                Laws

            	
              68

            

    

    

    
      	
              ARTICLE
                VIII.

            	
              EVENTS
                OF DEFAULT

            	
              68

            

    

    

    
      	 	
              Section
                8.01

            	
              Events
                of Default

            	
              68

            
	 	
              Section
                8.02

            	
              Remedies

            	
              70

            
	 	
              Section
                8.03

            	
              Application
                of Certain Payments and Proceeds

            	
              70

            

    

    

    
      	
              ARTICLE
                IX.

            	
              THE
                ADMINISTRATIVE AGENT

            	
              71

            

    

    

    
      	 	
              Section
                9.01

            	
              Appointment

            	
              71

            
	 	
              Section
                9.02

            	
              Delegation
                of Duties

            	
              71

            
	 	
              Section
                9.03

            	
              Exculpatory
                Provisions

            	
              71

            
	 	
              Section
                9.04

            	
              Reliance
                by Administrative Agent

            	
              72

            
	 	
              Section
                9.05

            	
              Notice
                of Default

            	
              72

            
	 	
              Section
                9.06

            	
              Non-Reliance

            	
              72

            

    

    
      
        -iii-

        
        

      

      
        
        

        
          

        

      

      
        
        

        TABLE
          OF CONTENTS

        (continued)

      

    

    

     

    
      	 	 	
              Page

            

    

    

    
      	 	
              Section
                9.07

            	
              No
                Reliance on Administrative Agent’s Customer Identification
                Program

            	
              73

            
	 	
              Section
                9.08

            	
              USA
                Patriot Act

            	
              73

            
	 	
              Section
                9.09

            	
              Indemnification

            	
              73

            
	 	
              Section
                9.10

            	
              The
                Administrative Agent in Individual Capacity

            	
              74

            
	 	
              Section
                9.11

            	
              Successor
                Administrative Agent

            	
              74

            
	 	
              Section
                9.12

            	
              Other
                Agents

            	
              74

            

    

    

    
      	
              ARTICLE
                X.

            	
              GUARANTY

            	
              75

            

    

    

    
      	 	
              Section
                10.01

            	
              Guaranty
                by the Borrowers

            	
              75

            
	 	
              Section
                10.02

            	
              Additional
                Undertaking

            	
              75

            
	 	
              Section
                10.03

            	
              Guaranty
                Unconditional

            	
              75

            
	 	
              Section
                10.04

            	
              Borrowers
                Obligations to Remain in Effect; Restoration

            	
              76

            
	 	
              Section
                10.05

            	
              Waiver
                of Acceptance, etc.

            	
              76

            
	 	
              Section
                10.06

            	
              Subrogation

            	
              76

            
	 	
              Section
                10.07

            	
              Effect
                of Stay

            	
              76

            

    

    

    
      	
              ARTICLE
                XI.

            	
              MISCELLANEOUS

            	
              77

            

    

    

    
      	 	
              Section
                11.01

            	
              Payment
                of Expenses etc.

            	
              77

            
	 	
              Section
                11.02

            	
              Indemnification

            	
              77

            
	 	
              Section
                11.03

            	
              Right
                of Setoff

            	
              78

            
	 	
              Section
                11.04

            	
              Equalization

            	
              78

            
	 	
              Section
                11.05

            	
              Notices

            	
              78

            
	 	
              Section
                11.06

            	
              Successors
                and Assigns

            	
              79

            
	 	
              Section
                11.07

            	
              No
                Waiver; Remedies Cumulative

            	
              82

            
	 	
              Section
                11.08

            	
              Governing
                Law; Submission to Jurisdiction; Venue; Waiver of Jury
                Trial

            	
              82

            
	 	
              Section
                11.09

            	
              Counterparts
                

            	
              83

            
	 	
              Section
                11.10

            	
              Integration
                

            	
              83

            
	 	
              Section
                11.11

            	
              Headings
                Descriptive 

            	
              83

            
	 	
              Section
                11.12

            	
              Amendment
                or Waiver 

            	
              83

            
	 	
              Section
                11.13

            	
              Survival
                of Indemnities 

            	
              85

            
	 	
              Section
                11.14

            	
              Domicile
                of Loans 

            	
              85

            
	 	
              Section
                11.15

            	
              Confidentiality
                

            	
              85

            
	 	
              Section
                11.16

            	
              Limitations
                on Liability of the LC Issuers 

            	
              85

            

    

    
      
        -iv-

        
        

      

      
        
        

        
          

        

      

      
        
        

        TABLE
          OF CONTENTS

        (continued)

      

    

    

     

    
      	 	 	
              Page

            

    

    

    
      	 	
              Section
                11.17

            	
              General
                Limitation of Liability 

            	
              86

            
	 	
              Section
                11.18

            	
              No
                Duty 

            	
              86

            
	 	
              Section
                11.19

            	
              Lenders
                and Agent Not Fiduciary to Borrowers, etc. 

            	
              86

            
	 	
              Section
                11.20

            	
              Survival
                of Representations and Warranties 

            	
              86

            
	 	
              Section
                11.21

            	
              Severability
                

            	
              87

            
	 	
              Section
                11.22

            	
              Independence
                of covenants 

            	
              87

            
	 	
              Section
                11.23

            	
              Interest
                Rate Limitation 

            	
              87

            
	 	
              Section
                11.24

            	
              USA
                Patriot Act 

            	
              87

            

    

    

     

    

    EXHIBITS

    

    
      	
              Exhibit
                A-1

            	
              Form
                of Revolving Facility Note

            
	
              Exhibit
                A-2

            	
              Form
                of Term Note

            
	
              Exhibit
                B-1

            	
              Form
                of Notice of Borrowing

            
	
              Exhibit
                B-2

            	
              Form
                of Notice of Continuation or Conversion

            
	
              Exhibit
                B-3

            	
              Form
                of LC Request

            
	
              Exhibit
                C-1

            	
              form
                of Subsidiary Guaranty

            
	
              Exhibit
                C-2

            	
              Form
                of Security Agreement

            
	
              Exhibit
                D

            	
              Form
                of Compliance Certificate

            
	
              Exhibit
                E

            	
              Form
                of Closing Certificate

            
	
              Exhibit
                F

            	
              Form
                of Solvency Certificate

            
	
              Exhibit
                G

            	
              Form
                of Assignment Agreement

            
	
              Exhibit
                H

            	
              Form
                of Mortgage

            

    

    

    

    

    
      
        
          -v
            -

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    THIS
      CREDIT AGREEMENT, dated as of October 27, 2006, among the
      following:

     

    (i)   ICO,
      INC., a Texas corporation (“ICO”),
      BAYSHORE INDUSTRIAL, L.P., a Texas limited partnership (“Bayshore”),
      and
      ICO POLYMERS NORTH AMERICA, INC., a New Jersey corporation (“ICO
      Polymers,”
and
      together with ICO and Bayshore, the “Borrowers”
and
      individually, each a “Borrower”);

     

    (ii)   KEYBANK
      NATIONAL ASSOCIATION, a national banking association, WELLS FARGO BANK, NATIONAL
      ASSOCIATION, a national banking association, and the other lending institutions
      from time to time party hereto (each a “Lender”
and
      collectively, the “Lenders”);
      and

     

    (iii)   KEYBANK
      NATIONAL ASSOCIATION, a national banking association, as an LC Issuer, lead
      arranger, bookrunner, and administrative agent (in such capacity as
      administrative agent, the “Administrative
      Agent”).

     

    RECITALS:

    

    (1)   The
      Borrowers have requested that the Lenders and each LC Issuer extend credit
      to
      the Borrowers to refinance existing senior debt facilities, finance the
      Preferred Stock Transaction and provide working capital and funds for other
      general corporate purposes permitted pursuant to this Agreement.

     

    (2)   Subject
      to and upon the terms and conditions set forth herein, the Lenders and each
      LC
      Issuer are willing to extend credit and make available to the Borrowers the
      credit facility provided for herein for the foregoing purposes.

     

    

     

    AGREEMENT:

     

    In
      consideration of the premises and the mutual covenants contained herein, the
      parties hereto agree as follows:

     

     

    ARTICLE
      I.

     

     

    

     

     

    DEFINITIONS
      AND TERMS

     

    Section
      1.01     Certain
      Defined Terms.
      As used
      herein, the following terms shall have the meanings herein specified unless
      the
      context otherwise requires:

     

    “Accounts”
means
      any present or future right to payment for goods sold or leased or for services
      rendered, whether now existing or hereafter arising and whether or not earned
      by
      performance.

     

    “Acquisition”
means
      any transaction or series of related transactions for the purpose of or
      resulting, directly or indirectly, in (i) the acquisition of all or
      substantially all of the assets of any Person, or any business or division
      of
      any Person, (ii) the acquisition or ownership of in excess of 50% of the Equity
      Interest of any Person, or (iii) the acquisition of another Person by a merger,
      consolidation, amalgamation or any other combination with such Person.

     

    “Additional
      Security Document”
has
      the
      meaning provided in Section 6.10(a).

     

    

     

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    “Adjusted
      December Tax Payment”
means,
      (i) for the four fiscal quarter period ending March 31, 2007, an amount equal
      to
      25% of the December Tax Payment, (ii) for the four fiscal quarter period ending
      June 30, 2007, an amount equal to 50% of the December Tax Payment, and (iii)
      for
      the four fiscal quarter period ending September 30, 2007, an amount equal to
      75%
      of the December Tax Payment.

     

    “Adjusted
      Eurodollar Rate”
means
      with respect to each Interest Period for a Eurodollar Loan, (i) the rate
      per annum equal to the offered rate appearing on the applicable electronic
      page
      of Reuters (or on the appropriate page of any successor to or substitute for
      such service, or, if such rate is not available, on the appropriate page of
      any
      generally recognized financial information service, as selected by the
      Administrative Agent from time to time) that displays an average British Bankers
      Association Interest Settlement Rate at approximately 11:00 A.M. (London time)
      two Business Days prior to the commencement of such Interest Period, for
      deposits in Dollars with a maturity comparable to such Interest Period, divided
      (and rounded to the nearest 1/16th of 1%) by (ii) a percentage equal to 100%
      minus
      the then
      stated maximum rate of all reserve requirements (including, without limitation,
      any marginal, emergency, supplemental, special or other reserves and without
      benefit of credits for proration, exceptions or offsets that may be available
      from time to time) applicable to any member bank of the Federal Reserve System
      in respect of Eurocurrency liabilities as defined in Regulation D (or any
      successor category of liabilities under Regulation D); provided,
      however,
      that if
      the rate referred to in clause (i) above is not available at any such time
      for
      any reason, then the rate referred to in clause (i) shall instead be the
      interest rate per annum, as determined by the Administrative Agent, to be the
      average (rounded to the nearest 1/16th of 1%) of the rates per annum at which
      deposits in Dollars in an amount equal to the amount of such Eurodollar Loan
      are
      offered to major banks in the London interbank market at approximately 11:00
      A.M. (London time), two Business Days prior to the commencement of such Interest
      Period, for contracts that would be entered into at the commencement of such
      Interest Period for the same duration as such Interest Period.

     

    “Administrative
      Agent”
has
      the
      meaning provided in the first paragraph of this Agreement and includes any
      successor to the Administrative Agent appoint pursuant to Section
      9.11.

     

    “Affiliate”
means,
      with respect to any Person, any other Person directly or indirectly controlling,
      controlled by, or under direct or indirect common control with such Person,
      or,
      in the case of any Lender that is an investment fund, the investment advisor
      thereof and any investment fund having the same investment advisor. A Person
      shall be deemed to control a second Person if such first Person possesses,
      directly or indirectly, the power (i) to vote 10% or more of the securities
      having ordinary voting power for the election of directors or managers of such
      second Person or (ii) to direct or cause the direction of the management and
      policies of such second Person, whether through the ownership of voting
      securities, by contract or otherwise. Notwithstanding the foregoing, neither
      the
      Administrative Agent nor any Lender shall in any event be considered an
      Affiliate of any Borrower or any Borrower’s Subsidiaries.

     

    “Aggregate
      Credit Facility Exposure”
means,
      at any time, the sum of (i) the Aggregate Revolving Facility Exposure at such
      time and (ii) the aggregate principal amount of the Term Loans outstanding
      at
      such time.

     

    “Aggregate
      Revolving Facility Exposure”
means,
      at any time, the sum of (i) the principal amounts of all Revolving Loans made
      by
      all Lenders and outstanding at such time and (ii) the aggregate amount of the
      LC
      Outstandings at such time.

     

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

     

    “Allocable
      Amount”
means,
      as of any date of determination, for any Borrower, the maximum 

     

    
      
        2

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    amount
      of
      liability that could be asserted against such Borrower under this Agreement
      with
      respect to the applicable Borrower Payment without (a) rendering such
      Borrower “insolvent” within the meaning of Section 101(31) of the Bankruptcy
      Code or Section 2 of either the Uniform Fraudulent Transfer Act (as in effect
      in
      any applicable State, the “UFTA”)
      or the
      Uniform Fraudulent Conveyance Act (as in effect in any applicable State, the
      “UFCA”),
      (ii) leaving such Borrower with unreasonably small capital, within the
      meaning of Section 548 of the Bankruptcy Code or Section 4 of the UFTA or
      Section 5 of the UFCA, or (iii) leaving such Borrower unable to pay its
      debts as they become due within the meaning of Section 548 of the Bankruptcy
      Code or Section 4 of the UFTA or Section 6 of the UFCA.

     

    “Anti-Terrorism
      Law”
means
      the USA Patriot Act or any other law pertaining to the prevention of future
      acts
      of terrorism, in each case as such law may be amended from time to
      time.

     

    “Applicable
      Lending Office”
means,
      with respect to each Lender, the office designated by such Lender to the
      Administrative Agent as such Lender’s lending office for all purposes of this
      Agreement. A lender may have a different Applicable Lending Office for Base
      Rate
      Loans and Eurodollar Loans.

     

    “Applicable
      Margin”
      means:

     

    (i)   Initially,
      until changed hereunder in accordance with the following provisions, the
      Applicable Margin shall be (A) 0.0 basis points for Base Rate Loans, and (B)
      150.0 basis points for Eurodollar Loans;

     

    (ii)   Commencing
      with the fiscal quarter of the Borrowers ended on December 31, 2006, and
      continuing with each fiscal quarter thereafter, the Administrative Agent shall
      determine the Applicable Margin in accordance with the following matrix, based
      on the Leverage Ratio: 

     

    
      	
               

              Leverage
                Ratio

               

            	
               

              Applicable
                Margin for Base Rate Loans

               

            	
               

              Applicable
                Margin for Eurodollar Loans

               

            
	
               

              Less
                than or equal to 1.50 to 1.00

            	
               

              0.0
                basis points

            	
               

              125.0
                basis points

            
	
               

              Greater
                than 1.50 to 1.00 but less than or equal to 2.50 to 1.00

            	
               

              0.0
                basis points

            	
               

              150.0
                basis points

            
	
               

              Greater
                than 2.50 to 1.00

            	
               

              25.0
                basis points

            	
               

              200.0
                basis points

            

    

    

    (iii)   Changes
      in the Applicable Margin based upon changes in the Leverage Ratio shall become
      effective on the first day of the month following each Financial Statement
      Due
      Date based upon the Leverage Ratio in effect at the end of the applicable period
      covered (in whole or in part) by the financial statements to be delivered by
      the
      applicable Financial Statement Due Date. Notwithstanding the foregoing
      provisions, during any period when
      (A)
      the
      Borrower Representative has failed to timely deliver the consolidated financial
      statements referred to in Section 6.01(a) or (b), accompanied by the certificate
      and calculations referred to in Section 6.01(c) or
      (B)
      a
      Default under Section 8.01(a) has occurred and is continuing, the Applicable
      Margin shall be the highest rate per annum indicated therefor in the above
      matrix, regardless of the Leverage Ratio at such time. Upon the remedy or cure
      of any such failure or Default, the Applicable Margin shall be adjusted as
      of
      the date of such remedy or cure based on the then applicable Leverage Ratio.
      Any
      changes in the Applicable Margin shall be determined by the Administrative
      Agent
      in accordance with the provisions set forth in this definition and the
      Administrative Agent will promptly provide notice of such determinations to
      the
      Borrower Representative and the 

     

    
      
        3

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Lenders.
      Any such determination by the Administrative Agent shall be conclusive and
      binding absent manifest error.

     

    “Approved
      Bank”
has
      the
      meaning provided in subpart (ii) of the definition of “Cash
      Equivalents.”

     

    “Approved
      Fund”
means
      a
      fund that is engaged in making, purchasing, holding or otherwise investing
      in
      bank loans and similar extensions of credit and that is administered or managed
      by a Lender or an Affiliate of a Lender.

     

    “Asset
      Coverage Ratio”
means
      at any time the ratio of (i) the sum of (A) Domestic Cash, (B) Domestic Accounts
      Receivable and (C) Domestic Inventory to (ii) the Aggregate Revolving Facility
      Exposure.

     

    “Asset
      Sale”
means
      the sale, lease, transfer or other disposition (including by means of Sale
      and
      Lease-Back Transactions, and by means of mergers, consolidations, amalgamations
      and liquidations of a corporation, partnership or limited liability company
      of
      the interests therein of any Borrower or any Subsidiary) by any Borrower or
      any
      Subsidiary to any Person of any of such Borrower’s or such Subsidiary’s
      respective assets, provided
      that the
      term Asset Sale specifically excludes (i) any sales, transfers or other
      dispositions of inventory, or obsolete, worn-out or excess furniture, fixtures,
      equipment or other property, real or personal, tangible or intangible, in each
      case in the ordinary course of business, and (ii) the actual or constructive
      total loss of any property or the use thereof resulting from any Event of
      Loss.

     

    “Assignment
      Agreement”
means
      an Assignment Agreement substantially in the form of Exhibit G
      hereto.

     

    “Australian
      Lender”
means
      National Australia Bank Ltd.

     

    “Australian
      Loan Defaults”
means
      violations of the capital adequacy ratio and financial charges coverage ratio
      covenants measured as of the fiscal quarter ended September 30, 2006 by the
      Australian Subsidiary in connection with certain loan agreements by and between
      the Australian Subsidiary and the Australian Lender.

     

    “Australian
      Subsidiary”
means
      Courtenay Polymers Pty. Ltd.

     

    “Authorized
      Officer”
means
      (i) with respect to a Borrower or the Borrower Representative, any of the
      following officers of such Borrower or the Borrower Representative, as
      applicable: the Chief Financial Officer, the Chief Accounting Officer or the
      Treasurer; and (ii) with respect to any other Loan Party, the President, the
      Chief Financial Officer or the Treasurer of such Loan Party, or such other
      Person as is authorized in writing to act on behalf of such Loan Party and
      is
      acceptable to the Administrative Agent. Unless otherwise qualified, all
      references herein to an Authorized Officer shall refer to an Authorized Officer
      of the Borrower Representative.

     

    “Back-to-Back
      Letter of Credit”
means
      the Letter of Credit Number S312020 issued to Wachovia Bank, N.A. by KeyBank
      National Association as an LC Issuer on the Closing Date in the face amount
      of
      $2,178,598.

     

    “Bankruptcy
      Code”
means
      Title 11 of the United States Code entitled “Bankruptcy,” as now or hereafter in
      effect, or any successor thereto, as hereafter amended.

     

    
      
        4

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Base
      Rate”
means,
      for any day, a fluctuating interest rate per annum as shall be in effect from
      time to time which rate per annum shall at all times be equal to the greater
      of
      (i) the rate of interest established by KeyBank National Association, from
      time
      to time, as its “prime rate,” whether or not publicly announced, which interest
      rate may or may not be the lowest rate charged by it for commercial loans or
      other extensions of credit; or (ii) the Federal Funds Effective Rate in effect
      from time to time, determined one Business Day in arrears, plus
      1/2 of
      1% per annum.

     

    “Base
      Rate Loan”
means
      any Loan bearing interest at a rate based upon the Base Rate in effect from
      time
      to time.

     

    “Bayshore
      RE Holdings”
means
      Bayshore RE Holdings, Inc., a Delaware corporation.

     

    “Benefited
      Creditors”
means,
      with respect to the Borrower Guaranteed Obligations pursuant to Article X,
      each of the Administrative Agent, the Lenders, each LC Issuer and each
      Designated Hedge Creditor, and the respective successors and assigns of each
      of
      the foregoing.

     

    “Borrower”
and
      “Borrowers”
have
      the meaning specified in the first paragraph of this Agreement.

     

    “Borrower
      Guaranteed Obligations”
has
      the
      meaning provided in Section 10.01.

     

    “Borrower
      Payment”
has
      the
      meaning provided in Section 2.15(b).

     

    “Borrower
      Representative”
means
      ICO in its capacity as Borrower Representative pursuant to Section
      1.5.

     

    “Borrowing”
means
      a
      Revolving Borrowing or a Term Borrowing.

     

    “Business
      Day”
means
      (i) any day other than Saturday, Sunday or any other day on which commercial
      banks in Cleveland, Ohio are authorized or required by law to close and (ii)
      with respect to any matters relating to Eurodollar Loans, any day on which
      dealings in U.S. Dollars are carried on in the London interbank
      market.

     

    “Capital
      Distribution”
means
      a
      payment made, liability incurred or other consideration given for the purchase,
      acquisition, repurchase, redemption or retirement of any Equity Interest of
      any
      Borrower or any Subsidiary or as a dividend, return of capital or other
      distribution in respect of any of such Borrower’s or such Subsidiary’s Equity
      Interest.

     

    “Capital
      Lease”
as
      applied to any Person means any lease of any property (whether real, personal
      or
      mixed) by that Person as lessee that, in conformity with GAAP, should be
      accounted for as a capital lease on the balance sheet of that
      Person.

     

    “Capitalized
      Lease Obligations”
means
      all obligations under Capital Leases of the Borrowers or any of their
      Subsidiaries, without duplication, in each case taken at the amount thereof
      accounted for as liabilities identified as “capital lease obligations” (or any
      similar words) on a consolidated balance sheet of the Borrowers and their
      Subsidiaries prepared in accordance with GAAP.

     

    “Cash
      Dividend”
means
      a
      Capital Distribution of a Borrower payable in cash to the shareholders of such
      Borrower with respect to any class or series of Equity Interest of such
      Borrower.

     

    “Cash
      Equivalents”
means
      any of the following:

     

    
      
        5

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (i)   securities
      issued or directly and fully guaranteed or insured by the United States of
      America or any agency or instrumentality thereof (provided
      that the
      full faith and credit of the United States of America is pledged in support
      thereof) having maturities of not more than one year from the date of
      acquisition;

     

    (ii)   U.S.
      dollar denominated time deposits, certificates of deposit and bankers’
acceptances of (x) any Lender, (y) any domestic commercial bank of recognized
      standing having capital and surplus in excess of $500,000,000 or (z) any bank
      (or the parent company of such bank) whose short-term commercial paper rating
      from S&P is at least A-1, A-2 or the equivalent thereof or from Moody’s is
      at least P-1, P-2 or the equivalent thereof (any such bank, an “Approved
      Bank”),
      in
      each case with maturities of not more than 180 days from the date of
      acquisition;

     

    (iii)   commercial
      paper issued by any Lender or Approved Bank or by the parent company of any
      Lender or Approved Bank and commercial paper issued by, or guaranteed by, any
      industrial or financial company with a short-term commercial paper rating of
      at
      least A-1 or the equivalent thereof by S&P or at least P-1 or the equivalent
      thereof by Moody’s, or guaranteed by any industrial company with a long-term
      unsecured debt rating of at least A or A2, or the equivalent of each thereof,
      from S&P or Moody’s, as the case may be, and in each case maturing within
      180 days after the date of acquisition;

     

    (iv)   fully
      collateralized repurchase agreements entered into with any Lender or Approved
      Bank having a term of not more than 30 days and covering securities described
      in
      clause (i) above;

     

    (v)   investments
      in money market funds substantially all the assets of which are comprised of
      securities of the types described in clauses (i) through (iv)
      above;

     

    (vi)   investments
      in money market funds access to which is provided as part of “sweep” accounts
      maintained with a Lender or an Approved Bank;

     

    (vii)   investments
      in industrial development revenue bonds that (A) “re-set” interest rates not
      less frequently than quarterly, (B) are entitled to the benefit of a remarketing
      arrangement with an established broker dealer, and (C) are supported by a direct
      pay letter of credit covering principal and accrued interest that is issued
      by
      an Approved Bank; and

     

    (viii)   investments
      in pooled funds or investment accounts consisting of investments of the nature
      described in the foregoing clause (vii).

     

    “Cash
      Proceeds”
means,
      with respect to (i) any Asset Sale, the aggregate cash payments (including
      any
      cash received by way of deferred payment pursuant to a note receivable issued
      in
      connection with such Asset Sale, other than the portion of such deferred payment
      constituting interest, but only as and when so received) received by any
      Borrower or any Subsidiary from such Asset Sale, and (ii) any Event of Loss,
      the
      aggregate cash payments, including all insurance proceeds and proceeds of any
      award for condemnation or taking, received in connection with such Event of
      Loss.

     

    “CERCLA”
means
      the Comprehensive Environmental Response, Compensation, and Liability Act of
      1980, as the same may be amended from time to time, 42 U.S.C. § 9601
et
      seq.

     

    “Change
      of Control”
means
      (i) the acquisition of, or, if earlier, the shareholder or director
      approval of the acquisition of, ownership or voting control, directly or
      indirectly, beneficially or of 

     

    
      
        6

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    record,
      on or after the Closing Date, by any Person or group (within the meaning of
      Rule
      13d-3 of the SEC under the 1934 Act, as then in effect), of shares representing
      more than 50% of the aggregate ordinary Voting Power represented by the issued
      and outstanding capital stock of ICO; (ii) the occupation of a majority of
      the seats (other than vacant seats) on the board of directors of ICO by Persons
      who were neither (A) nominated by the Board of Directors of ICO nor
      (B) appointed by directors so nominated; (iii) the occurrence of a change
      in control, or other similar provision, under or with respect to any Material
      Indebtedness Agreement; or (iv) the failure of ICO to own, directly or
      indirectly, all of the outstanding Equity Interests of each other
      Borrower.

     

    “Charges”
has
      the
      meaning provided in Section 11.23.

     

    “China
      RE Holdings”
means
      China RE Holdings, Inc., a Delaware corporation.

     

    “CIP
      Regulations”
has
      the
      meaning provided in Section 9.07.

     

    “Claims”
has
      the
      meaning set forth in the definition of “Environmental Claims.”

     

    “Closing
      Date”
means
      October 27, 2006.

     

    “Closing
      Date Mortgaged Property”
has
      the
      meaning provided in Section 6.10(c).

     

    “Closing
      Fee Letter”
means
      the Closing Fee Letter dated as of the Closing Date between the Borrowers and
      the Administrative Agent, for the benefit of the Lenders.

     

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

     

    “Collateral”
means
      the “Collateral” as defined in the Security Agreement, together with any other
      collateral (whether real property or personal property) covered by any Security
      Document.

     

    “Collateral
      Assignments”
has
      the
      meaning specified in the Security Agreement.

     

    “Commercial
      Letter of Credit”
means
      any letter of credit or similar instrument issued for the purpose of providing
      the primary payment mechanism in connection with the purchase of materials,
      goods or services in the ordinary course of business.

     

    “Commitment”
means
      with respect to each Lender, (i) its Revolving Commitment or (ii) its Term
      Commitment, if any, or, in the case of such Lender, all of such
      Commitments.

     

    “Commitment
      Fees”
has
      the
      meaning provided in Section 2.11(b).

     

    “Commodities
      Hedge Agreement”
means
      a
      commodities contract purchased by any Borrower or any Subsidiary in the ordinary
      course of business, and not for speculative purposes, with respect to raw
      materials necessary to the manufacturing or production of goods in connection
      with the business of the Borrowers and their Subsidiaries.

     

    “Compliance
      Certificate”
has
      the
      meaning provided in Section 6.01(c).

     

    “Confidential
      Fee Letter”
means
      the Confidential Fee Letter, dated September 28, 2006, between ICO and the
      Administrative Agent.

     

    
      
        7

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Confidential
      Information”
has
      the
      meaning provided in Section 11.15(b).

     

    “Consideration”
means,
      in connection with an Acquisition, the aggregate consideration paid, including
      borrowed funds, cash, the issuance of securities or notes, the assumption or
      incurring of liabilities (direct or contingent), the payment of consulting
      fees
      (excluding any fees payable to any investment banker in connection with such
      Acquisition) or fees for a covenant not to compete and any other consideration
      paid for the purchase.

     

    “Consolidated
      Capital Expenditures”
means,
      for any period, the aggregate of all expenditures (whether paid in cash or
      accrued as liabilities) made by the Borrowers and their Subsidiaries to acquire
      or lease (pursuant to a Capital Lease) fixed or capital assets, or additions
      to
      equipment (including replacements, capitalized repairs and improvements during
      such period).

     

    “Consolidated
      Depreciation and Amortization Expense”
means,
      for any period, all depreciation and amortization expenses of the Borrowers
      and
      their Subsidiaries, all as determined for the Borrowers and their Subsidiaries
      on a consolidated basis in accordance with GAAP.

     

    “Consolidated
      EBITDA”
means,
      for any period, Consolidated Net Income for such period, plus
      (i) the sum (without duplication) of the amounts for such period included
      in determining such Consolidated Net Income of, (A) Consolidated Interest
      Expense, (B) Consolidated Income Tax Expense, (C) Consolidated Depreciation
      and
      Amortization Expense, (D) non-cash losses and non-cash charges, (E) non-cash
      expenses relating to stock option plans of ICO, and (F) any extraordinary and
      non-recurring non-cash losses, less
      (ii) the
      sum (without duplication) of the amounts for such period included in determining
      such Consolidated Net Income of, (A) credits received or earned in respect
      of
      taxes, (B) non-cash gains, (C) extraordinary and non-recurring non-cash gains
      and (D) expenses relating to discontinued operations in an aggregate amount
      not
      exceeding $1,000,000 in any fiscal year, all as determined for the Borrowers
      and
      their Subsidiaries on a consolidated basis in accordance with GAAP; provided,
      however,
      that
      Consolidated EBITDA for any Testing Period shall (y) include the EBITDA for
      any Person or business unit that has been acquired by the Borrowers or any
      of
      their Subsidiaries for any portion of such Testing Period prior to the date
      of
      acquisition, so long as such EBITDA has been verified by appropriate audited
      financial statements or other financial statements acceptable to the
      Administrative Agent and (z) exclude the EBITDA for any Person or business
      unit
      that has been disposed of by the Borrowers or any of their Subsidiaries, for
      the
      portion of such Testing Period prior to the date of disposition.

     

    “Consolidated
      Fixed Charges”
means,
      for any period, as determined on a consolidated basis and in accordance with
      GAAP, without duplication, the aggregate of (i) Consolidated Interest
      Expense, (ii) Consolidated Income Tax Expense paid (excluding in the case
      of each of the four fiscal quarter periods ending March 31, 2007, June 30,
      2007
      and September 30, 2007, the Adjusted December Tax Payment), (iii) scheduled
      principal payments on Consolidated Funded Indebtedness due in the twelve months
      preceding the measurement date (other than optional prepayments of the Revolving
      Loans), (iv) Capital Distributions made by ICO in respect of its Equity
      Interests, (v) Consolidated Capital Expenditures that are made for the
      purpose of maintaining existing fixed assets, and (vi) Rental
      Expense.

     

    “Consolidated
      Income Tax Expense”
means,
      for any period, all provisions for taxes based on the net income of the
      Borrowers or any of their Subsidiaries (including, without limitation, any
      additions to such taxes, and any penalties and interest with respect thereto),
      all as determined for the Borrowers and their Subsidiaries on a consolidated
      basis in accordance with GAAP.

     

    “Consolidated
      Interest Expense”
means,
      for any period, total interest expense (including, without limitation, that
      which is capitalized and that which is attributable to Capital Leases or
      Synthetic Leases) 

     

    
      
        8

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    of
      the
      Borrowers and their Subsidiaries on a consolidated basis with respect to all
      outstanding Indebtedness of the Borrowers and their Subsidiaries.

     

    “Consolidated
      Net Income”
means
      for any period, the net income (or loss) of the Borrowers and their Subsidiaries
      on a consolidated basis for such period taken as a single accounting period
      determined in conformity with GAAP.

     

    “Consolidated
      Net Working Capital”
means
      current assets (excluding cash and Cash Equivalents), minus
      current
      liabilities, all as determined for the Borrowers and their Subsidiaries on
      a
      consolidated basis in accordance with GAAP.

     

    “Consolidated
      Tangible Net Worth”
means
      at any time, all amounts that, in conformity with GAAP, would be included under
      the caption “total stockholders’ equity” (or any like caption) on a consolidated
      balance sheet of the Borrowers at such time, adjusted to eliminate the effect
      of
      foreign currency translations after the Closing Date less
      the
      aggregate amount of intangible assets of the Borrowers and its Subsidiaries,
      determined in accordance with GAAP. 

     

    “Consolidated
      Total Debt”
shall
      mean the sum (without duplication) of all Indebtedness of the Borrowers and
      each
      of their Subsidiaries, all as determined on a consolidated basis.

     

    “Contemplated
      Protective Life Loan”
means
      the Indebtedness contemplated to be incurred by Bayshore RE Holdings, Inc.
      with
      Protective Life as the lender, in an aggregate principal amount not to exceed
      $1,400,000. 

     

    “Continue,”
      “Continuation”
and
      “Continued”
each
      refers to a continuation of a Eurodollar Loan for an additional Interest Period
      as provided in Section 2.10.

     

    “Control
      Agreements”
has
      the
      meaning set forth in the Security Agreement.

     

    “Convert,”
      “Conversion”
and
      “Converted”
each
      refers to a conversion of Loans of one Type into Loans of another
      Type.

     

    “Convertible
      Exchangeable Preferred Stock”
means
      ICO’s Convertible Exchangeable Preferred Stock, no par value.

     

    “Credit
      Event”
means
      the making of any Borrowing, any Conversion or Continuation or any LC
      Issuance.

     

    “Credit
      Facility”
means
      the credit facility established under this Agreement pursuant to which
      (i) the Lenders shall make Revolving Loans to the Borrowers and shall
      participate in LC Issuances under the Revolving Facility pursuant to the
      Revolving Commitment of each such Lender, (ii) each Lender with a Term
      Commitment shall make a Term Loan to the Borrowers pursuant to such Term
      Commitment of such Lender, and (iii) each LC Issuer shall issue Letters of
      Credit for the account of the LC Obligors in accordance with the terms of this
      Agreement.

     

    “Credit
      Facility Exposure”
means,
      for any Lender at any time, the sum of (i) such Lender’s Revolving Facility
      Exposure at such time, and (ii) the outstanding aggregate principal amount
      of
      the Term Loan made by such Lender, if any.

     

    “December
      Tax Payment”
means
      an amount equal to the Consolidated Income Tax Expense actually paid in cash
      for
      the four fiscal quarter period ending December 31, 2006.

     

    
      
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    “Default”
means
      any event, act or condition that with notice or lapse of time, or both, would
      constitute an Event of Default.

     

    “Default
      Rate”
means,
      for any day, (i) with respect to any Loan, a rate per annum equal to 2% per
      annum above the interest rate that is or would be applicable from time to time
      to such Loan pursuant to Section 2.09(a)(i) or Section 2.09(b)(i), as applicable
      and (ii) with respect to any other amount, a rate per annum equal to 2% per
      annum above the rate that would be applicable to Revolving Loans that are Base
      Rate Loans pursuant to section 2.09(a)(i).

     

    “Designated
      Hedge Agreement”
means
      any Hedge Agreement (other than a Commodities Hedge Agreement) to which any
      Borrower or any Subsidiary is a party and as to which a Lender or any of its
      Affiliates is a counterparty, which Administrative Agent shall designate by
      written instrument as a Designated Hedge Agreement so that such Borrower’s or
      such Subsidiary’s counterparty’s credit exposure thereunder will be entitled to
      share in the benefits of the Subsidiary Guaranty and the Security Documents
      to
      the extent the Subsidiary Guaranty and such Security Documents provide
      guarantees or security for creditors of any Borrower or any Subsidiary under
      Designated Hedge Agreements.

     

    “Designated
      Hedge Creditor”
means
      each Lender or Affiliate of a Lender that participates as a counterparty to
      any
      Loan Party pursuant to any Designated Hedge Agreement with such Lender or
      Affiliate of such Lender.

     

    “Dollars,”
      “U.S.
      Dollars”
and
      the
      sign “$”
each
      means lawful money of the United States.

     

    “Domestic
      Accounts Receivable”
means,
      as of any date, the gross outstanding balance on such date, determined in
      accordance with GAAP and stated on a basis consistent with the historical
      practices of the Domestic Loan Parties as of the Closing Date, of Accounts
      of
      the Domestic Loan Parties, net of intercompany Accounts.

     

    “Domestic
      Cash”
means
      the sum of (i) cash and (ii) Cash Equivalents, in each case to the extent
      subject to a Control Agreement.

     

    “Domestic
      Inventory”
means,
      as of any date, the aggregate value of the Inventory of the Domestic Loan
      Parties, in each case to the extent such Inventory is located in the United
      States.

     

    “Domestic
      Loan Party”
means
      any Borrower or any Subsidiary Guarantor.

     

    “Domestic
      Subsidiary”
means
      any Subsidiary organized under the laws of the United States of America, any
      State thereof, or the District of Columbia.

     

    “EBITDA”
means,
      with respect to any Person for any period, the net income for such Person for
      such period plus
      the sum
      of the amounts for such period included in determining such net income in
      respect of (i) interest expense, (ii) income tax expense, and (iii) depreciation
      and amortization expense, in each case as determined in accordance with
      GAAP.

     

    “Eligible
      Assignee”
means
      (i) a Lender, (ii) an Affiliate of a Lender, (iii) an Approved
      Fund, and (iv) any other Person (other than a natural Person) approved by
      (A) the Administrative Agent, (B) each LC Issuer, and (C) unless an
      Event of Default has occurred and is continuing, the Borrower Representative
      (each such approval not to be unreasonably withheld, conditioned or delayed);
      provided,
      however,
      that
      notwithstanding the foregoing, “Eligible
      Assignee”
shall
      not include the Borrowers or any of their Affiliates or
      Subsidiaries.

     

    
      
        10

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Environmental
      Claims”
means
      any and all global, regulatory or judicial actions, suits, demands, demand
      letters, claims, liens, notices of non-compliance or violation, investigations
      or proceedings relating in any way to any Environmental Law or any permit issued
      under any such law (hereafter “Claims”),
      including, without limitation, (i) any and all Claims by any Governmental
      Authority for enforcement, cleanup, removal, response, remedial or other actions
      or damages pursuant to any applicable Environmental Law, and (ii) any and all
      Claims by any third party seeking damages, contribution, indemnification, cost
      recovery, compensation or injunctive relief resulting from the storage,
      treatment or Release (as defined in CERCLA) of any Hazardous Materials or
      arising from alleged injury or threat of injury to health, safety or the
      environment.

     

    “Environmental
      Law”
means
      any applicable Federal, state, foreign or local statute, law, rule, regulation,
      ordinance, code, binding and enforceable guideline, binding and enforceable
      written policy and rule of common law now or hereafter in effect and in each
      case as amended, and any binding and enforceable judicial or global
      interpretation thereof, including any judicial or global order, consent, decree
      or judgment issued to or rendered against any Borrower or any Subsidiary
      relating to the environment, employee health and safety or Hazardous Materials,
      including, without limitation, CERCLA; RCRA; the Federal Water Pollution Control
      Act, 33 U.S.C. § 1251 et
      seq.;
      the
      Clean Air Act, 42 U.S.C. § 7401 et
      seq.;
      the
      Safe Drinking Water Act, 42 U.S.C. § 300f
      et
      seq.;
      the Oil
      Pollution Act of 1990, 33 U.S.C. § 2701 et
      seq.;
      the
      Emergency Planning and the Community Right-to-Know Act of 1986, 42 U.S.C.
§ 11001 et
      seq.,
      the
      Hazardous Material Transportation Act, 49 U.S.C. § 5101 et
      seq.
      and the
      Occupational Safety and Health Act, 29 U.S.C. § 651
      et
      seq.
      (to the
      extent it regulates occupational exposure to Hazardous Materials); and any
      state
      and local or foreign counterparts or equivalents, in each case as amended from
      time to time.

     

    “Equity
      Interest”
means
      with respect to any Person, any and all shares, interests, participations or
      other equivalents, including membership interests (however designated, whether
      voting or non-voting) of equity of such Person, including, if such Person is
      a
      partnership, partnership interests (whether general or limited) or any other
      interest or participation that confers on a Person the right to receive a share
      of the profits and losses of, or distributions of assets of, such partnership,
      but in no event will Equity Interest include any debt securities convertible
      or
      exchangeable into equity unless and until actually converted or
      exchanged.

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as amended from time to
      time, and the regulations promulgated and rulings issued thereunder. Section
      references to ERISA are to ERISA, as in effect at the Closing Date and any
      subsequent provisions of ERISA, amendatory thereof, supplemental thereto or
      substituted therefor.

     

    “ERISA
      Affiliate”
means
      each Person (as defined in Section 3(9) of ERISA), which together with a
      Borrower or a Subsidiary, would be deemed to be a “single employer” (i) within
      the meaning of Section 414(b), (c), (m) or (o) of the Code or Section
      4001(a)(14) or 4001(b)(i) of ERISA or (ii) as a result of any Borrower or a
      Subsidiary of any Borrower being or having been a general partner of such
      Person.

     

    “Eurodollar
      Loan”
means
      each Loan bearing interest at a rate based upon the Adjusted Eurodollar
      Rate.

     

    “Event
      of Default”
has
      the
      meaning provided in Section 8.01.

     

    “Event
      of Loss”
means,
      with respect to any property, (i) the actual or constructive total loss of
      such
      property or the use thereof, resulting from destruction, damage beyond repair,
      or the rendition of such property permanently unfit for normal use from any
      casualty or similar occurrence whatsoever, (ii) the destruction or damage of
      a
      portion of such property from any casualty or similar occurrence 

     

    
      
        11

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    whatsoever
      under circumstances in which such damage cannot reasonably be expected to be
      repaired, or such property cannot reasonably be expected to be restored to
      its
      condition immediately prior to such destruction or damage, within 90 days after
      the occurrence of such destruction or damage, (iii) the condemnation,
      confiscation or seizure of, or requisition of title to or use of, any property,
      or (iv) in the case of any property located upon a leasehold, the termination
      or
      expiration of such leasehold.

     

    “Existing
      Credit Agreement”
means
      the Loan and Security Agreement, dated April 9, 2002, by and among Bayshore
      and
      ICO Polymers, as borrowers, and ICO, ICO Polymers, Inc., Wedco Technology,
      Inc.,
      Wedco Petrochemicals, Inc., ICO Technology, Inc. and Bayshore Industrial LP
      L.L.C., as guarantors, and ICO P&O, ICO Global Services, Inc., and as a
      lender, Wachovia Bank, National Association (successor by merger to Congress
      Financial Corporation (Southwest)), as amended.

     

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

     

    “Fees”
means
      all amounts payable pursuant to, or referred to in, Section 2.11.

     

    “Financial
      Statement Due Date”
means
      each date by which annual or quarterly financial statements are required to
      be
      delivered pursuant to Section 6.01(a) or (b), as the case may be.

     

    “Fixed
      Charge Coverage Ratio”
means,
      for any Testing Period, the ratio of (i) the sum of (A) Consolidated EBITDA
      and
      (B) Rental Expense to (ii) Consolidated Fixed Charges.

     

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

     

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

     

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

     

    “Guaranty
      Obligations”
means
      as to any Person (without duplication) any obligation of such Person
      guaranteeing any Indebtedness (“primary
      Indebtedness”)
      of any
      other Person (the “primary
      obligor”)
      in any
      manner, whether directly or indirectly, including, without limitation, any
      obligation of such Person, whether or not contingent, (i) to purchase any such
      primary Indebtedness or any property constituting direct or indirect security
      therefor, (ii) to advance or supply funds for the purchase or payment of any
      such primary Indebtedness or to maintain working capital or equity capital
      of
      the primary obligor or otherwise to maintain the net worth or solvency of the
      primary obligor, (iii) to purchase property, securities or services primarily
      for the purpose of assuring the owner of any such primary Indebtedness of the
      ability of the primary obligor to make payment of such primary Indebtedness,
      or
      (iv) otherwise to assure or hold harmless the owner of such primary
      Indebtedness against loss in respect thereof, provided,
      however,
      that
      the definition of Guaranty Obligation shall not include endorsements of
      instruments for deposit or collection in the ordinary course of business. The
      amount of any Guaranty Obligation shall be deemed to be an amount equal to
      the
      stated or determinable amount of the primary 

     

    
      
        12

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Indebtedness
      in respect of which such Guaranty Obligation is made or, if not stated or
      determinable, the maximum reasonably anticipated liability in respect thereof
      (assuming such Person is required to perform thereunder).

     

    “Hazardous
      Materials”
means
      (i) any petrochemical or petroleum products, radioactive materials, asbestos
      in
      any form that is or could become friable, urea formaldehyde foam insulation,
      transformers or other equipment that contain dielectric fluid containing levels
      of polychlorinated biphenyls, and radon gas; and (ii) any chemicals, materials
      or substances defined as or included in the definition of “hazardous
      substances,” “hazardous wastes,” “hazardous materials,” “restricted hazardous
      materials,” “extremely hazardous wastes,” “restrictive hazardous wastes,” “toxic
      substances,” “toxic pollutants,” “contaminants” or “pollutants,” or words of
      similar meaning and regulatory effect, under any applicable Environmental
      Law.

     

    “Hedge
      Agreement”
means
      (i) any interest rate swap agreement, any interest rate cap agreement, any
      interest rate collar agreement or other similar interest rate management
      agreement or arrangement, (ii) any currency swap or option agreement,
      foreign exchange contract, forward currency purchase agreement or similar
      currency management agreement or arrangement or (iii) any Commodities Hedge
      Agreement.

     

    “ICO”
has
      the
      meaning specified in the first paragraph of this Agreement.

     

    “ICO
      Minerals”
means
      ICO Minerals, Inc., a Delaware corporation.

     

    “Indebtedness”
of
      any
      Person means without duplication (i) all indebtedness of such Person for
      borrowed money; (ii) all bonds, notes, debentures and similar debt securities
      of
      such Person; (iii) the deferred purchase price of capital assets or services
      that in accordance with GAAP would be shown on the liability side of the balance
      sheet of such Person; (iv) the face amount of all letters of credit issued
      for
      the account of such Person and, without duplication, all drafts drawn
      thereunder; (v) all obligations, contingent or otherwise, of such Person in
      respect of bankers’ acceptances; (vi) all indebtedness of a second Person
      secured by any Lien on any property owned by such first Person, whether or
      not
      such indebtedness has been assumed; (vii) all Capitalized Lease Obligations
      of
      such Person; (viii) the present value, determined on the basis of the implicit
      interest rate, of all basic rental obligations under all Synthetic Leases of
      such Person; (ix) all obligations of such Person with respect to asset
      securitization financing; (x) all obligations of such Person to pay a specified
      purchase price for goods or services whether or not delivered or accepted,
      i.e.,
      take-or-pay and similar obligations; (xi) all net obligations of such Person
      under Hedge Agreements; (xii) the full outstanding balance of trade receivables,
      notes or other instruments sold with full recourse (and the portion thereof
      subject to potential recourse, if sold with limited recourse), other than in
      any
      such case any thereof sold solely for purposes of collection of delinquent
      accounts; and (xiii) all Guaranty Obligations of such Person; provided,
      however,
      that
      (y) neither trade payables, deferred revenue, taxes nor other similar
      accrued expenses, in each case arising in the ordinary course of business,
      shall
      constitute Indebtedness; and (z) the Indebtedness of any Person shall in any
      event include (without duplication) the Indebtedness of any other entity
      (including any general partnership in which such Person is a general partner)
      to
      the extent such Person is liable thereon 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 expressly that such Person is not liable
      thereon.

     

    “Indemnitees”
has
      the
      meaning provided in Section 11.02.

     

    “Insolvency
      Event”
means,
      with respect to any Person, (i) the commencement of a voluntary case by such
      Person under the Bankruptcy Code or the seeking of relief by such Person under
      any bankruptcy or insolvency or analogous law in any jurisdiction outside of
      the
      United States; (ii) the commencement of 

     

    
      
        13

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    an
      involuntary case against such Person under the Bankruptcy Code and the petition
      is not controverted within 10 days, or is not dismissed within 60 days, after
      commencement of the case; (iii) a custodian (as defined in the Bankruptcy Code)
      is appointed for, or takes charge of, all or substantially all of the property
      of such Person; (iv) such Person commences (including by way of applying for
      or
      consenting to the appointment of, or the taking of possession by, a
      rehabilitator, receiver, custodian, trustee, conservator or liquidator
      (collectively, a “conservator”)
      of
      such Person or all or any substantial portion of its property) any other
      proceeding under any reorganization, arrangement, adjustment of debt, relief
      of
      debtors, dissolution, insolvency, liquidation, rehabilitation, conservatorship
      or similar law of any jurisdiction whether now or hereafter in effect relating
      to such Person; (v) any such proceeding of the type set forth in clause (iv)
      above is commenced against such Person to the extent such proceeding is
      consented to by such Person or remains undismissed for a period of 60 days;
      (vi)
      such Person is adjudicated insolvent or bankrupt; (vii) any order of relief
      or
      other order approving any such case or proceeding is entered; (viii) such Person
      suffers any appointment of any conservator or the like for it or any substantial
      part of its property that continues undischarged or unstayed for a period of
      60
      days; (ix) such Person makes a general assignment for the benefit of creditors
      or generally does not pay its debts as such debts become due; or (x) any
      corporate (or similar organizational) action is taken by such Person for the
      purpose of effecting any of the foregoing. 

     

    “Interest
      Period”
means,
      with respect to each Eurodollar Loan, a period of one, two, three or six months
      as selected by the Borrower Representative; provided,
      however,
      that (i)
      the initial Interest Period for any Borrowing of such Eurodollar Loan shall
      commence on the date of such Borrowing (the date of a Borrowing resulting from
      a
      Conversion or Continuation shall be the date of such Conversion or Continuation)
      and each Interest Period occurring thereafter in respect of such Borrowing
      shall
      commence on the day on which the next preceding Interest Period expires; (ii)
      if
      any Interest Period begins on a day for which there is no numerically
      corresponding day in the calendar month at the end of such Interest Period,
      such
      Interest Period shall end on the last Business Day of such calendar month;
      (iii)
      if any Interest Period would otherwise expire on a day that is not a Business
      Day, such Interest Period shall expire on the next succeeding Business Day;
      provided,
      however,
      that if
      any Interest Period would otherwise expire on a day that is not a Business
      Day
      but is a day of the month after which no further Business Day occurs in such
      month, such Interest Period shall expire on the next preceding Business Day;
      (iv) no Interest Period for any Eurodollar Loan may be selected that would
      end
      after the Revolving Facility Termination Date or the Term Loan Maturity Date,
      as
      the case may be; and (v) if, upon the expiration of any Interest Period, the
      Borrower Representative has failed to (or may not) elect a new Interest Period
      to be applicable to the respective Borrowing of Eurodollar Loans as provided
      above, the Borrower Representative shall be deemed to have elected to Convert
      such Borrowing to Base Rate Loans effective as of the expiration date of such
      current Interest Period.

     

    “Inventory”
means,
      as of any date, the net book value of the inventory of the Borrowers and its
      Domestic Subsidiaries as reflected on the Borrowers’ most recent financial
      statements.

     

    “Investment”
means
      (i) any direct or indirect purchase or other acquisition by a Person of any
      Equity Interest of any other Person; (ii) any loan, advance (other than
      deposits with financial institutions available for withdrawal on demand) or
      extension of credit to, guarantee or assumption of debt or purchase or other
      acquisition of any other Indebtedness of, any Person by any other Person; or
      (iii) the purchase, acquisition or investment of or in any stocks, bonds, mutual
      funds, notes, debentures or other securities, or any deposit account,
      certificate of deposit or other investment of any kind.

     

    “JPMorgan
      Securities Account”
means
      ICO’s account number 36054146 with JPMorgan Securities, Inc.

     

    
      
        14

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Landlord’s
      Agreement”
means
      a
      landlord’s waiver or mortgagee’s waiver, each in form and substance satisfactory
      to the Administrative Agent, and providing, among other things, for waiver
      of
      Lien, certain notices and opportunity to cure and access to Collateral,
      delivered by a Loan Party in connection with this Agreement, as the same may
      from time to time be amended, restated or otherwise modified.

     

    “LC
      Commitment Amount”
means
      $10,000,000.

     

    “LC
      Documents”
means,
      with respect to any Letter of Credit, any documents executed in connection
      with
      such Letter of Credit, including the Letter of Credit itself.

     

    “LC
      Fee”
means
      any of the fees payable pursuant to Section 2.11(c) or Section 2.11(d) in
      respect of Letters of Credit.

     

    “LC
      Issuance”
means
      the issuance of any Letter of Credit by any LC Issuer for the account of an
      LC
      Obligor in accordance with the terms of this Agreement, and shall include any
      amendment thereto that increases the Stated Amount thereof or extends the expiry
      date of such Letter of Credit.

     

    “LC
      Issuer”
means
      KeyBank National Association or any of its Affiliates, or such other Lender
      that
      is requested by the Borrowers and agrees to be an LC Issuer hereunder and is
      approved by the Administrative Agent.

     

    “LC
      Obligor”
means,
      with respect to each LC Issuance, the Borrower or the Subsidiary Guarantor
      for
      whose account such Letter of Credit is issued.

     

    “LC
      Outstandings”
means,
      at any time, the sum, without duplication, of (i) the aggregate Stated Amount
      of
      all outstanding Letters of Credit and (ii) the aggregate amount of all Unpaid
      Drawings with respect to Letters of Credit.

     

    “LC
      Participant”
has
      the
      meaning provided in Section 2.05(g)(i).

     

    “LC
      Participation”
has
      the
      meaning provided in Section 2.05(g).

     

    “LC
      Request”
has
      the
      meaning provided in Section 2.05(b).

     

    “Leaseholds”
of
      any
      Person means all the right, title and interest of such Person as lessee or
      licensee in, to and under leases or licenses of land, improvements and/or
      fixtures.

     

    “Lender”
and
      “Lenders”
have
      the meaning provided in the first paragraph of this Agreement and includes
      any
      other Person that becomes a party hereto pursuant to an Assignment Agreement,
      other than any such Person that ceases to be a party hereto pursuant to an
      Assignment Agreement. 

     

    “Lender
      Register”
has
      the
      meaning provided in Section 2.08(b).

     

    “Letter
      of Credit”
means
      any Standby Letter of Credit or Commercial Letter of Credit, in each case issued
      by any LC Issuer under this Agreement pursuant to Section 2.05 for the account
      of any LC Obligor.

     

    “Leverage
      Ratio”
means,
      for any Testing Period, the ratio of (i) Consolidated Total Debt to
      (ii) Consolidated EBITDA.

     

    
      
        15

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Lien”
means
      any mortgage, pledge, security interest, hypothecation, encumbrance, lien or
      charge of any kind (including any agreement to give any of the foregoing, any
      conditional sale or other title retention agreement or any lease in the nature
      thereof).

     

    “Loan”
means
      any Revolving Loan or a Term Loan.

     

    “Loan
      Documents”
means
      this Agreement, the Notes, the Subsidiary Guaranty, the Security Documents,
      the
      Confidential Fee Letter, the Closing Fee Letter, and each Letter of Credit
      and
      each other LC Document.

     

    “Loan
      Party”
means
      any Borrower or any Subsidiary Guarantor.

     

    “Margin
      Stock”
has
      the
      meaning provided in Regulation U.

     

    “Material
      Adverse Effect”
means
      any or all of the following: (i) any material adverse effect on the business,
      operations, property, assets, liabilities, financial or other condition or
      prospects of the Borrowers or the Borrowers and their Subsidiaries, taken as
      a
      whole; (ii) any material adverse effect on the ability of the Borrowers and
      the
      other Loan Parties, taken as a whole, to perform their obligations under any
      of
      the Loan Documents to which they are parties; or (iii) any material adverse
      effect on the validity, effectiveness or enforceability, as against the
      Borrowers and the other Loan Parties, taken as a whole, of any of the Loan
      Documents to which they are parties.

     

    “Material
      Foreign Indebtedness”
means
      any Indebtedness of any Foreign Subsidiary or Foreign Subsidiaries in excess
      of,
      individually or in the aggregate, a principal amount of $5,000,000

     

    “Material
      Domestic Indebtedness”
means,
      as to the Borrowers or any of their Domestic Subsidiaries, any particular
      Indebtedness of such Borrower or such Subsidiary (including any Guaranty
      Obligations) in excess of the aggregate principal amount of
      $500,000.

     

    “Material
      Indebtedness Agreement”
means
      any agreement governing or evidencing any Material Indebtedness.

     

    “Maximum
      Rate”
has
      the
      meaning provided in Section 11.23.

     

    “Mexico
      Subsidiary”
means
      The Innovation Company, S.A. de C.V., a company organized under the laws of
      Mexico.

     

    “Minimum
      Borrowing Amount”
means
      (i) with respect to any Base Rate Loan, $500,000, with minimum increments
      thereafter of $250,000, and (ii) with respect to any Eurodollar Loan,
      $2,000,000, with minimum increments thereafter of $1,000,000.

     

    “Moody’s”
means
      Moody’s Investors Service, Inc. and its successors.

     

    “Mortgage”
means
      a
      Mortgage, Deed of Trust or other instrument, substantially in the form of
Exhibit H
      hereto
      and otherwise in form and substance reasonably satisfactory to the
      Administrative Agent, executed by a Loan Party with respect to a Mortgaged
      Real
      Property, as the same may from time to time be amended, restated or otherwise
      modified.

     

    “Mortgaged
      Real Property”
means
      each of the parcels of real property set forth on Schedule 3
      hereto,
      or interests therein, owned or leased by a Loan Party, together with each other
      parcel of Real Property that shall become subject to a Mortgage after the
      Closing Date, in each case together with all of 

     

    
      
        16

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    such
      Loan
      Party’s right, title and interest in the improvements and buildings thereon and
      all appurtenances, easements or other rights belonging thereto.

     

    “Multi-Employer
      Plan”
means
      a
      multi-employer plan, as defined in Section 4001(a)(3) of ERISA to which the
      Borrowers or any Subsidiary or any ERISA Affiliate is making or accruing an
      obligation to make contributions or has within any of the preceding five plan
      years made or accrued an obligation to make contributions.

     

    “Multiple
      Employer Plan”
means
      an employee benefit plan, other than a Multi-Employer Plan, to which any
      Borrower or any Subsidiary or any ERISA Affiliate, and one or more employers
      other than a Borrowers or a Subsidiary or an ERISA Affiliate, is making or
      accruing an obligation to make contributions or, in the event that any such
      plan
      has been terminated, to which a Borrower or a Subsidiary or an ERISA Affiliate
      made or accrued an obligation to make contributions during any of the five
      plan
      years preceding the date of termination of such plan.

     

    “Net
      Cash Proceeds”
means,
      with respect to (i) any Asset Sale, the Cash Proceeds resulting therefrom net
      of
      (A) reasonable and customary expenses of sale incurred in connection with such
      Asset Sale, and other reasonable and customary fees and expenses incurred,
      and
      all state and local taxes paid or reasonably estimated to be payable by such
      person as a consequence of such Asset Sale and the payment of principal, premium
      and interest of Indebtedness (other than the Obligations) secured by the asset
      which is the subject of the Asset Sale and required to be, and which is, repaid
      under the terms thereof as a result of such Asset Sale, and (B) incremental
      federal, state and local income taxes paid or payable as a result thereof;
      and
      (ii) any Event of Loss, the Cash Proceeds resulting therefrom net of (A)
      reasonable and customary expenses incurred in connection with such Event of
      Loss, and local taxes paid or reasonably estimated to be payable by such person
      as a consequence of such Event of Loss and the payment of principal, premium
      and
      interest of Indebtedness (other than the Obligations) secured by the asset
      which
      is the subject of the Event of Loss and required to be, and which is, repaid
      under the terms thereof as a result of such Event of Loss, and (B) incremental
      federal, state and local income taxes paid or payable as a result
      thereof.

     

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

     

    “Note”
means
      a
      Revolving Facility Note or a Term Note, as applicable.

     

    “Notice
      of Borrowing”
has
      the
      meaning provided in Section 2.06(b).

     

    “Notice
      of Continuation or Conversion”
has
      the
      meaning provided in Section 2.10(b).

     

    “Notice
      Office”
means
      the office of the Administrative Agent at Key Tower, 127 Public Square,
      Cleveland, Ohio 44114, Attention:
      Chris
      Diorio (Telecopier No. (216) 689-4814; Telephone No. (216) 689-8327); email:
      Christina_Diorio@keybank.com, or such other office as the Administrative Agent
      may designate in writing to the Borrower Representative from time to
      time.

     

    “Obligations”
means
      all amounts, indemnities and reimbursement obligations, direct or indirect,
      contingent or absolute, of every type or description, and at any time existing,
      owing by the Borrowers or any other Loan Party to the Administrative Agent,
      any
      Lender or any LC Issuer pursuant to the terms of this Agreement or any other
      Loan Document (including, but not limited to, interest and fees that accrue
      after the commencement by or against any Loan Party of any insolvency
      proceeding, regardless of whether allowed or allowable in such proceeding or
      subject to an automatic stay under Section 362(a) of the Bankruptcy
      Code).

     

    
      
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    “Operating
      Lease”
as
      applied to any Person means any lease of any property (whether real, personal
      or
      mixed) by that Person as lessee that, in conformity with GAAP, is not accounted
      for as a Capital Lease on the balance sheet of that Person.

     

    “Organizational
      Documents”
means,
      with respect to any Person (other than an individual), such Person’s Articles
      (Certificate) of Incorporation, or equivalent formation documents, and
      Regulations (Bylaws), or equivalent governing documents, and, in the case of
      any
      partnership, includes any partnership agreement and any amendments to any of
      the
      foregoing.

     

    “Payment
      Office”
means
      the office of the Administrative Agent at Key Tower, 127 Public Square,
      Cleveland, Ohio 44114, Attention:
      Chris
      Diorio (Telecopier No. (216) 689-4814; Telephone No. (216) 689-8327); email:
      Christina_Diorio@keybank.com, or such other office as the Administrative Agent
      may designate in writing to the Borrower Representative from time to
      time.

     

    “PBGC”
means
      the Pension Benefit Guaranty Corporation established pursuant to Section 4002
      of
      ERISA, or any successor thereto.

     

    “Perfection
      Certificate”
has
      the
      meaning provided in the Security Agreement.

     

    “Permitted
      Acquisition”
means
      any Acquisition as to which all of the following conditions are
      satisfied:

     

    (i)   such
      Acquisition involves a line or lines of business that is or are complementary
      to
      the lines of business in which the Borrowers and their Subsidiaries, considered
      as an entirety, are engaged on the Closing Date;

     

    (ii)   the
      aggregate Consideration for such Acquisition shall not exceed $5,000,000 and,
      when added together with the aggregate Consideration for all other Permitted
      Acquisitions made since the Closing Date, shall not exceed
      $5,000,000;

     

    (iii)   no
      Default or Event of Default shall exist prior to or immediately after giving
      effect to such Acquisition;

     

    (iv)   the
      Borrowers would, after giving effect to such Acquisition, on a pro
      forma
      basis
      (as determined in accordance with subpart (v) below), (A) have a Leverage Ratio
      of less than 2.50 to 1.00 and (B) otherwise be in compliance with the financial
      covenants contained in Section 7.07; and

     

    (v)   at
      least five Business
      Days prior to the consummation of any such Acquisition, the Borrower
      Representative shall have delivered to the Administrative Agent and the Lenders
      (A) a certificate of an Authorized Officer demonstrating, in reasonable detail,
      the computation of the financial covenants referred to in Section 7.07 on a
      pro
      forma
      basis,
      such pro
      forma
      ratios
      being determined as if (y) such Acquisition had been completed at the beginning
      of the most recent Testing Period for which financial information for the
      Borrowers and the business or Person to be acquired, is available, and (z)
      any
      such Indebtedness, or other Indebtedness incurred to finance such Acquisition,
      had been outstanding for such entire Testing Period, and (B) historical
      financial statements relating to the business or Person to be acquired and
      such
      other information as the Administrative Agent may reasonably
      request.

     

    “Permitted
      Creditor Investment”
means
      any securities (whether debt or equity) received by the Borrowers or any of
      their Subsidiaries in connection with the bankruptcy or reorganization of any
      

     

    
      
        18

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    customer
      or supplier of the Borrowers or any such Subsidiary and in settlement of
      delinquent obligations of, and other disputes with, customers and suppliers
      arising in the ordinary course of business.

     

    “Permitted
      Foreign Subsidiary Loans and Investments”
means
      (i) loans and investments by a Loan Party to or in a Foreign Subsidiary made
      on
      or after the Closing Date in the ordinary course of business, provided that
      the
      aggregate amount of all Guaranty Obligations of the Loan Parties in respect
      of
      the aggregate amount of Indebtedness of all Foreign Subsidiaries shall not
      be
      increased beyond the amount in existence on the Closing Date; and
      (ii) loans to a Foreign Subsidiary by any Person (other than a Borrower or
      any Subsidiary).

     

    “Permitted
      Lien”
means
      any Lien permitted by Section 7.03.

     

    “Person”
means
      any individual, partnership, joint venture, firm, corporation, limited liability
      company, association, trust or other enterprise or any government or political
      subdivision or any agency, department or instrumentality thereof.

     

    “Plan”
means
      any Multi-Employer Plan or Single-Employer Plan.

     

    “Preferred
      Stock Transaction”
means
      the redemption and/or repurchase of ICO’s Convertible Exchangeable Preferred
      Stock in one or more series of transactions. 

     

    “primary
      Indebtedness”
has
      the
      meaning provided in the definition of “Guaranty Obligations.”

     

    “primary
      obligor”
has
      the
      meaning provided in the definition of “Guaranty Obligations.”

     

    “Prohibited
      Transaction”
means
      a
      transaction with respect to a Plan that is prohibited under Section 4975 of
      the
      Code or Section 406 of ERISA and not exempt under Section 4975 of the Code
      or
      Section 408 of ERISA.

     

    “Purchase
      Date”
has
      the
      meaning provided in Section 2.04(c).

     

    “Quarterly
      Payment Date”
means
      the last Business Day of each September, December, March and June of each
      year.

     

    “RCRA”
means
      the Resource Conservation and Recovery Act, as the same may be amended from
      time
      to time, 42 U.S.C. § 6901 et
      seq.

     

    “RE
      Holdings Entities”
means,
      collectively, China RE Holdings and Bayshore RE Holdings.

     

    “Real
      Property”
of
      any
      Person means all of the right, title and interest of such Person in and to
      land,
      improvements and fixtures, including Leaseholds.

     

    “Regulation
      D”
means
      Regulation D of the Board of Governors of the Federal Reserve System as from
      time to time in effect and any successor to all or a portion thereof
      establishing reserve requirements.

     

    “Regulation
      U”
means
      Regulation U of the Board of Governors of the Federal Reserve System as from
      time to time in effect and any successor to all or a portion thereof
      establishing margin requirements.

     

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

     

    
      
        19

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Rental
      Expense”
means,
      for any period, the aggregate rent expense (both accrued and paid but without
      duplication) of the Borrowers and their Subsidiaries for such period (excluding
      any such rent expense included in the calculation of Consolidated Interest
      Expense) under leases (other than Capital Leases) having a maximum lease term
      (after giving effect to any option relating to the renewal or extension thereof)
      in excess of one year, determined in accordance with GAAP.

     

    “Reportable
      Event”
means
      an event described in Section 4043 of ERISA or the regulations thereunder with
      respect to a Plan, other than those events as to which the notice requirement
      is
      waived under subsection .22, .23, .25, .27, .28, .29, .30, .31, .32, .34, .35,
      .62, .63, .64, .65 or .67 of PBGC Regulation Section 4043.

     

    “Required
      Lenders”
means,
      at any time when there are no more than two Lenders, Lenders whose Credit
      Facility Exposure and Unused Revolving Commitments constitute at least 66 2/3%
      of the sum of the Aggregate Credit Facility Exposure and the Unused Total
      Revolving Commitment, and at any time when there are three or more Lenders,
      Lenders whose Credit Facility Exposure and Unused Revolving Commitments
      constitute at least 51% of the sum of the Aggregate Credit Facility Exposure
      and
      the Unused Total Revolving Commitment.

     

    “Restricted
      Payment”
means
      (i) any Capital Distribution; or (ii) any amount paid by the Borrower or any
      of
      its Subsidiaries in repayment, redemption, retirement, repurchase, direct or
      indirect, of any Subordinated Indebtedness.

     

    “Revolving
      Borrowing”
means
      the incurrence of Revolving Loans consisting of one Type of Revolving Loan
      by
      the Borrowers from all of the Lenders having Revolving Commitments in respect
      thereof on a pro
      rata
      basis on
      a given date (or resulting from Conversions or Continuations on a given date)
      in
      the same currency, having in the case of any Eurodollar Loans the same Interest
      Period.

     

    “Revolving
      Commitment”
means,
      with respect to each Lender, the amount set forth opposite such Lender’s name in
Schedule
      1
      hereto
      as its “Revolving Commitment,” or in the case of any Lender that becomes a party
      hereto pursuant to an Assignment Agreement, the amount set forth in such
      Assignment Agreement, as such commitment may be reduced from time to time
      pursuant to Section 2.12(b) or (c) or adjusted from time to time as a result
      of
      assignments to or from such Lender pursuant to Section 11.06.

     

    “Revolving
      Facility”
means
      the credit facility established under Section 2.02 pursuant to the Revolving
      Commitment of each Lender.

     

    “Revolving
      Facility Availability Period”
means
      the period from the Closing Date until the Revolving Facility Termination
      Date.

     

    “Revolving
      Facility Exposure”
means,
      for any Lender at any time, the sum of (i) the principal amount of Revolving
      Loans made by such Lender and outstanding at such time, and (ii) such Lender’s
      share of the LC Outstandings at such time.

     

    “Revolving
      Facility Note”
means
      a
      promissory note substantially in the form of Exhibit
      A-1
      hereto.

     

    “Revolving
      Facility Percentage”
means,
      at any time for any Lender, the percentage obtained by dividing such Lender’s
      Revolving Commitment by the Total Revolving Commitment, provided,
      however,
      that if
      the Total Revolving Commitment has been terminated, the Revolving Facility
      Percentage for each Lender shall be determined by dividing such Lender’s
      Revolving Commitment immediately prior to such 

     

    
      
        20

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    termination
      by the Total Revolving Commitment immediately prior to such termination. The
      Revolving Facility Percentage of each Lender as of the Closing Date is set
      forth
      on Schedule
      1
      hereto.

     

    “Revolving
      Facility Termination Date”
means
      the earlier of (i) October 27, 2011, or (ii) the date that the Commitments
      have been terminated pursuant to Section 8.02.

     

    “Revolving
      Loan”
means,
      with respect to each Lender, any loan made by such Lender pursuant to Section
      2.02.

     

    “Sale
      and Lease-Back Transaction”
means
      any arrangement with any Person providing for the leasing by a Borrower or
      any
      Subsidiary of any property (except for temporary leases for a term, including
      any renewal thereof, of not more than one year and except for leases between
      Borrowers or between a Borrower and a Subsidiary or between Subsidiaries),
      which
      property has been or is to be sold or transferred by such Borrower or such
      Subsidiary to such Person.

     

    “S&P”
means
      Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc., and its
      successors.

     

    “Scheduled
      Repayment”
has
      the
      meaning provided in Section 2.13(b).

     

    “SEC”
means
      the United States Securities and Exchange Commission.

     

    “SEC
      Regulation D”
means
      Regulation D as promulgated under the Securities Act of 1933, as amended, as
      the
      same may be in effect from time to time.

     

    “Secured
      Creditors”
has
      the
      meaning provided in the Security Agreement.

     

    “Security
      Agreement”
has
      the
      meaning provided in Section 4.01(iv).

     

    “Security
      Documents”
means
      the Security Agreement, each Landlord’s Agreement, each Additional Security
      Document, any UCC financing statement, any Control Agreement, any Collateral
      Assignment, any Perfection Certificate and any document pursuant to which any
      Lien is granted or perfected by any Loan Party to the Administrative Agent
      as
      security for any of the Obligations.

     

    “Single
      Employer Plan”
means
      a
      single employer plan, as defined in Section 4001(a)(15) of ERISA, to which
      a
      Borrower, any Subsidiary or any ERISA Affiliate is making or accruing an
      obligation to make contributions or, in the event that any such plan has been
      terminated, to which a Borrower, any Subsidiary or any ERISA Affiliate made
      or
      accrued an obligation to make contributions during any of the five plan years
      preceding the date of termination of such plan.

     

    “Standard
      Permitted Lien”
means
      any of the following: (i) Liens for taxes not yet delinquent or Liens for taxes,
      assessments or governmental charges being contested in good faith and by
      appropriate proceedings for which adequate reserves in accordance with GAAP
      have
      been established; (ii) Liens in respect of property or assets imposed by law
      that were incurred in the ordinary course of business, such as carriers’,
      suppliers’, warehousemen’s, materialmen’s and mechanics’ Liens and other similar
      Liens arising in the ordinary course of business, that do not in the aggregate
      materially detract from the value of such property or assets or materially
      impair the use thereof in the operation of the business of the Borrowers or
      any
      of their Subsidiaries and do not secure any Indebtedness; (iii) Liens created
      by
      this Agreement or the other Loan Documents; (iv) Liens arising from judgments,
      decrees or attachments in circumstances not constituting an Event of Default
      under Section 8.01(g); (v) Liens (other than any Lien imposed by ERISA) incurred
      or deposits made in the ordinary course of business in connection with

     

    
      
        21

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    workers
      compensation, unemployment insurance and other types of social security, and
      mechanic’s Liens, carrier’s Liens, and other Liens to secure the performance of
      tenders, statutory obligations, contract bids, government contracts, surety,
      appeal, customs, performance and return-of-money bonds and other similar
      obligations, incurred in the ordinary course of business (exclusive of
      obligations in respect of the payment for borrowed money), whether pursuant
      to
      statutory requirements, common law or consensual arrangements; (vi) leases
      or
      subleases granted in the ordinary course of business to others not interfering
      in any material respect with the business of the Borrowers or any of their
      Subsidiaries and any interest or title of a lessor under any lease not in
      violation of this Agreement; (vii) easements, rights-of-way, zoning or other
      restrictions, charges, encumbrances, defects in title, prior rights of other
      persons, and obligations contained in similar instruments, in each case that
      do
      not secure Indebtedness and do not involve, and are not likely to involve at
      any
      future time, either individually or in the aggregate, (A) a substantial and
      prolonged interruption or disruption of the business activities of the Borrowers
      and their Subsidiaries considered as an entirety, or (B) a Material Adverse
      Effect; (viii) Liens arising from the rights of lessors under leases (including
      financing statements regarding property subject to lease) not in violation
      of
      the requirements of this Agreement, provided
      that
      such Liens are only in respect of the property subject to, and secure only,
      the
      respective lease (and any other lease with the same or an affiliated lessor);
      and (ix) rights of consignors of goods, whether or not perfected by the filing
      of a financing statement under the UCC.

     

    “Standby
      Letter of Credit”
means
      any standby letter of credit issued for the purpose of supporting workers
      compensation, liability insurance, releases of contract retention obligations,
      contract performance guarantee requirements and other bonding obligations or
      for
      other lawful purposes.

     

    “Stated
      Amount”
of
      each
      Letter of Credit means the maximum amount available to be drawn thereunder
      (regardless of whether any conditions or other requirements for drawing could
      then be met).

     

    “Subordinated”
means,
      as applied to any Indebtedness, that the Indebtedness shall have been
      subordinated (by written terms or written agreement being, in either case,
      in
      form and substance reasonably satisfactory to the Administrative Agent and
      the
      Required Lenders) in favor of the prior payment in full of the
      Obligations.

     

    “Subordinated
      Indebtedness”
means
      any Indebtedness that has been subordinated to the prior payment in full of
      all
      of the Obligations pursuant to a written agreement or written terms reasonably
      acceptable to the Administrative Agent and the Required Lenders.

     

    “Subsidiary”
of
      any
      Person means (i) any corporation more than 50% of whose stock of any class
      or
      classes having by the terms thereof ordinary Voting Power to elect a majority
      of
      the directors of such corporation (irrespective of whether or not at the time
      stock of any class or classes of such corporation shall have or might have
      Voting Power by reason of the happening of any contingency) is at the time
      owned
      by such Person directly or indirectly through Subsidiaries, and (ii) any
      partnership, limited liability company, association, joint venture or other
      entity in which such Person directly or indirectly through Subsidiaries, owns
      more than 50% of the Equity Interests of such Person at the time or in which
      such Person, one or more other Subsidiaries of such Person or such Person and
      one or more Subsidiaries of such Person, directly or indirectly, has the power
      to direct the policies, management and affairs thereof. Unless otherwise
      expressly provided, all references herein to “Subsidiary” means a Subsidiary of
      the Borrower.

     

    “Subsidiary
      Guarantor”
means
      any Subsidiary that is or hereafter becomes a party to the Subsidiary Guaranty.
      Schedule
      2
      hereto
      lists each Subsidiary Guarantor as of the Closing Date.

     

    “Subsidiary
      Guaranty”
has
      the
      meaning provided in Section 4.01(iii).

     

    
      
        22

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Synthetic
      Lease”
means
      any lease (i) that is accounted for by the lessee as an Operating Lease, and
      (ii) under which the lessee is intended to be the “owner” of the leased property
      for federal income tax purposes.

     

    “Taxes”
has
      the
      meaning provided in Section 3.03(a).

     

    “Term
      Borrowing”
means
      the incurrence of Term Loans consisting of one Type of Term Loan by the
      Borrowers from all of the Lenders having Term Commitments in respect thereof
      on
      a pro
      rata
      basis on
      a given date (or resulting from Conversions or Continuations on a given date),
      having in the case of Eurodollar Loans the same Interest Period.

     

    “Term
      Commitment”
means,
      with respect to each Lender, the amount, if any, set forth opposite such
      Lender’s name in Schedule
      1
      hereto
      as its “Term Commitment.”

     

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

     

    “Term
      Loan”
means,
      with respect to each Lender that has a Term Commitment, any loan made by such
      Lender pursuant to Section 2.03.

     

    “Term
      Loan Commitment Period”
means
      the period from and including the Closing Date through and including the date
      that is 180 days after the Closing Date

     

    “Term
      Loan Maturity Date”
means
      October 27, 2011 or such earlier date on which the Total Term Loan Commitment
      is
      terminated.

     

    “Term
      Note”
means
      a
      promissory note substantially in the form of Exhibit
      A-2
      hereto.

     

    “Testing
      Period”
means
      a
      single period consisting of the four consecutive fiscal quarters of the
      Borrowers then last ended (whether or not such quarters are all within the
      same
      fiscal year), except
      that if
      a particular provision of this Agreement indicates that a Testing Period shall
      be of a different specified duration, such Testing Period shall consist of
      the
      particular fiscal quarter or quarters then last ended that are so indicated
      in
      such provision.

     

    “Title
      Company”
has
      the
      meaning provided in Section 6.10(c).

     

    “Title
      Policy”
has
      the
      meaning provided in Section 6.10(d).

     

    “Total
      Credit Facility Amount”
means
      the aggregate of the Total Revolving Commitment and the Total Term Loan
      Commitment. As of the Closing Date, the Total Credit Facility Amount is
      $45,000,000.

     

    “Total
      Revolving Commitment”
means
      the sum of the Revolving Commitments of the Lenders as the same may be decreased
      pursuant to Section 2.12(b) or (c) hereof. As of the Closing Date, the amount
      of
      the Total Revolving Commitment is $30,000,000.

     

    “Total
      Term Loan Commitment”
means
      the sum of the Term Commitments of the Lenders. As of the Closing Date, the
      amount of the Total Term Loan Commitment is $15,000,000.

     

    “Type”
means
      any type of Loan determined with respect to the interest option and currency
      denomination applicable thereto, which in each case shall be a Base Rate Loan
      or
      a Eurodollar Loan.

     

    “UCC”
means
      the Uniform Commercial Code as in effect from time to time. Unless otherwise
      specified, the UCC shall refer to the UCC as in effect in the State of New
      York.

     

    
      
        23

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Unfunded
      Benefit Liabilities”
of
      any
      Plan means the amount, if any, of its unfunded benefit liabilities, as defined
      in Section 4001(a)(18) of ERISA.

     

    “United
      States”
and
      “U.S.”
each
      means United States of America.

     

    “Unpaid
      Drawing”
means,
      with respect to any Letter of Credit, the aggregate amount of the draws made
      on
      such Letter of Credit that have not been reimbursed by the Borrowers or the
      applicable LC Obligor or converted to a Revolving Loan pursuant to
      Section 2.05(f)(i), and, in each case, all interest that accrues thereon
      pursuant to this Agreement.

     

    “Unused
      Revolving Commitment”
means,
      for any Lender at any time, the excess of (i) such Lender’s Revolving Commitment
      at such time over (ii) such Lender’s Revolving Facility Exposure at such
      time.

     

    “Unused
      Total Revolving Commitment”
means,
      at any time, the excess of (i) the Total Revolving Commitment at such time
      over
      (ii) the Aggregate Revolving Facility Exposure at such time.

     

    “USA
      Patriot Act”
means
      the Uniting and Strengthening America by Providing Appropriate Tools Required
      to
      Intercept and Obstruct Terrorism (USA PATRIOT Act) Act of 2001.

     

    “Varco
      Indemnification Claims”
refers
      to the claims described in ICO’s Form 10K for the fiscal year ended September
      30, 2005 in Part I, Item 3 thereof under the subheading “Varco Indemnification
      Claims” and in ICO’s Form 10Q for the fiscal quarter ended June 30, 2006 in Part
      II, Item 1 thereof.

     

    “Voting
      Power”
means,
      with respect to any Person, the exclusive ability to control, through the
      ownership of shares of capital stock, partnership interests, membership
      interests or otherwise, the election of members of the board of directors or
      other similar governing body of such Person, and the holding of a designated
      percentage of Voting Power of a Person means the ownership of shares of capital
      stock, partnership interests, membership interests or other interests of such
      Person sufficient to control exclusively the election of that percentage of
      the
      members of the board of directors or similar governing body of such
      Person.

     

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

     

    Section
      1.03     Accounting
      Terms.
      Except
      as otherwise specifically 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 Representative notifies the Administrative Agent and the Lenders
      that the Borrowers wish to amend any covenant in Article VII to eliminate the
      effect of any change in GAAP that occurs after the Closing Date on the operation
      of such covenant (or if the Administrative Agent notifies the Borrower
      Representative that the Required Lenders wish to amend Article VII for such
      purpose), then the Borrowers’ compliance with such covenant shall be determined
      on the basis of GAAP in effect immediately before the relevant change in GAAP
      became effective, until either such notice is withdrawn or such covenant is
      amended in a manner satisfactory to the Borrowers, the Administrative Agent
      and
      the Required Lenders, the Borrowers, the Administrative Agent and the Lenders
      agreeing to enter into negotiations to amend any such covenant immediately
      upon
      receipt from any party entitled to send such notice.

     

    
      
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    Section
      1.04     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,
      (a)
      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, restated, supplemented or otherwise modified
      (subject to any restrictions on such amendments, supplements or modifications
      set forth herein),
      (b)
      any
      reference herein to any Person shall be construed to include such Person’s
      successors and assigns,
      (c)
      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,
      (d)
      all
      references herein to Sections, Schedules and Exhibits shall be construed to
      refer to Sections of, and Schedules and Exhibits to, this Agreement,
(e)
      the
      words “asset” and “property” shall be construed to have the same meaning and
      effect and to refer to any and all Real Property, tangible and intangible assets
      and properties, including cash, securities, accounts and contract rights, and
      interests in any of the foregoing, and (f) any reference to a statute, rule
      or
      regulation is to that statute, rule or regulation as now enacted or as the
      same
      may from time to time be amended, re-enacted or expressly replaced.

     

    Section
      1.05     Borrower
      Representative.
      For
      purposes of this Agreement, each of Bayshore and ICO Polymers (i) authorizes
      ICO
      to make such requests, give such notices or furnish such certificates to the
      Administrative Agent or any Lender as may be required or permitted by this
      Agreement for the benefit of the Borrowers and (ii) authorizes the
      Administrative Agent to treat such requests, notices, certificates or consents
      given or made by ICO to have been made, given or furnished by the Borrowers
      for
      purposes of this Agreement. The Administrative Agent and each Lender shall
      be
      entitled to rely on each such request, notice, certificate or consent made,
      given or furnished by the Borrower Representative pursuant to the provisions
      of
      this Agreement or any other Loan Document as being made or furnished on behalf
      of, and with the effect of irrevocably binding, such Borrower. Each warranty,
      covenant, agreement and undertaking made on its behalf by the Borrower
      Representative shall be deemed for all purposes to have been made by each
      Borrower and shall be binding upon and enforceable against each Borrower to
      the
      same extent as if the same had been made directly by each Borrower.

     

     

    ARTICLE
      II.

     

    THE
      TERMS
      OF THE CREDIT FACILITY

     

    Section
      2.01     Establishment
      of the Credit Facility.
      On the
      Closing Date, and subject to and upon the terms and conditions set forth in
      this
      Agreement and the other Loan Documents, the Administrative Agent, the Lenders
      and each LC Issuer agree to establish the Credit Facility for the benefit of
      the
      Borrower; provided,
      however,
      that at
      no time will (i) the Aggregate Credit Facility Exposure exceed the Total Credit
      Facility Amount, or (ii) the Credit Facility Exposure of any Lender exceed
      the
      aggregate amount of such Lender’s Commitment.

     

    Section
      2.02     Revolving
      Facility.
      During
      the Revolving Facility Availability Period, each Lender severally agrees, on
      the
      terms and conditions set forth in this Agreement, to make a Revolving Loan
      or
      Revolving Loans to the Borrowers from time to time pursuant to such Lender’s
      Revolving Commitment, which Revolving Loans (i) may, except as set forth herein,
      at the option of the Borrower Representative, be incurred and maintained as,
      or
      Converted into, Revolving Loans that are Base Rate Loans or Eurodollar Loans,
      provided
      that all
      Revolving Loans made as part of the same Revolving Borrowing shall consist
      of
      Revolving Loans of the same Type;
      (ii)
      may be
      repaid or prepaid and reborrowed in accordance with the provisions hereof;
      and
      (iii)
      shall
      not be made if, after giving effect to 

     

    
      
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    any
      such
      Revolving Loan, (A) the Revolving Facility Exposure of any Lender would
      exceed such Lender’s Revolving Commitment, or (B) the Borrowers would be
      required to prepay Loans or cash collateralize Letters of Credit pursuant to
      Section 2.13(c). The Revolving Loans to be made by each Lender will be made
      by
      such Lender on a pro
      rata
      basis
      based upon such Lender’s Revolving Facility Percentage of each Revolving
      Borrowing, in each case in accordance with Section 2.07 hereof.

     

    Section
      2.03    Term
      Loan.
      During
      the Term Loan Commitment Period, each Lender that has a Term Commitment
      severally agrees, on the terms and conditions set forth in this Agreement,
      to
      make a Term Loan to the Borrowers pursuant to such Lender’s Term Commitment,
      which Term Loans:
      (i)
      can only
      be incurred in a single Term Borrowing during the Term Loan Commitment Period
      in
      the entire amount of each Lender’s Term Commitment;
      (ii)
      once prepaid or repaid, may not be reborrowed, (iii)
      may,
      except as set forth herein, at the option of the Borrower Representative, be
      incurred and maintained as, or Converted into, Term Loans that are Base Rate
      Loans or Eurodollar Loans, in each case denominated in Dollars, provided
      that all
      Term Loans made as part of the same Term Borrowing shall consist of Term Loans
      of the same Type; (iv) shall be repaid in accordance with Section 2.13(b);
      and
      (v)
      shall
      not exceed (A) for any Lender at the time of incurrence thereof the aggregate
      principal amount of such Lender’s Term Commitment, if any, and (B) for all the
      Lenders at the time of incurrence thereof the Total Term Loan Commitment. The
      Term Loans to be made by each Lender will be made by such Lender in the
      aggregate amount of its Term Commitment in accordance with Section 2.07 hereof.
      The Term Commitments shall automatically terminate on the earlier to occur
      of
      (x) the date of the initial Term Borrowing and (y) the last day of the Term
      Loan
      Commitment Period.

     

    Section
      2.04     [Reserved].

     

    Section
      2.05    Letters
      of Credit.

     

    (a)   LC
      Issuances.
      During
      the Revolving Facility Availability Period, the Borrower Representative may
      request an LC Issuer at any time and from time to time to issue, for the account
      of any Borrower or any Subsidiary Guarantor, and subject to and upon the terms
      and conditions herein set forth, each LC Issuer agrees to issue from time to
      time Letters of Credit denominated and payable in Dollars and in each case
      in
      such form as may be approved by such LC Issuer and the Administrative Agent;
      provided,
      however,
      that
      notwithstanding the foregoing, no
      LC
      Issuance shall be made if, after giving effect thereto, (i) the LC Outstandings
      would exceed the LC Commitment Amount, (ii) the Revolving Facility Exposure
      of
      any Lender would exceed such Lender’s Revolving Commitment, or (iii) the
      Borrowers would be required to prepay Loans or cash collateralize Letters of
      Credit pursuant to Section 2.13(c) hereof. Subject to Section 2.05(c) below,
      each Letter of Credit shall have an expiry date (including any renewal periods)
      occurring not later than the earlier of
      (y)
      one year
      from the date of issuance thereof, or
      (z)
      30
      Business Days prior to the Revolving Facility Termination Date. 

     

    (b)   LC
      Requests.
      Whenever the Borrowers desire that a Letter of Credit be issued for its account
      or the account of any eligible LC Obligor, the Borrower Representative shall
      give the Administrative Agent and the applicable LC Issuer written or telephonic
      notice (in the case of telephonic notice, promptly confirmed in writing if
      so
      requested by the Administrative Agent) which, if in the form of written notice,
      shall be substantially in the form of Exhibit
      B-3
      (each
      such request, a “LC
      Request”),
      or
      transmit by electronic communication (if arrangements for doing so have been
      approved by the applicable LC Issuer), prior to 11:00 A.M. (local time at the
      Notice Office) at least three Business Days (or such shorter period as may
      be
      acceptable to the relevant LC Issuer) prior to the proposed date of issuance
      (which shall be a Business Day), which LC Request shall include such supporting
      documents that such LC Issuer customarily requires in connection therewith
      (including, in the case of a Letter of Credit for an account party other than
      a
      Borrower, an application for, and if applicable a reimbursement agreement with
      respect to, such Letter of Credit). In the event of any inconsistency between
      any of the terms or 

     

    
      
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    provisions
      of any LC Document and the terms and provisions of this Agreement respecting
      Letters of Credit, the terms and provisions of this Agreement shall control.
      

     

    (c)   Auto-Renewal
      Letters of Credit.
      If an
      LC Obligor so requests in any applicable LC Request, each LC Issuer shall agree
      to issue a Letter of Credit that has automatic renewal provisions; provided,
      however,
      that
      any Letter of Credit that has automatic renewal provisions must permit such
      LC
      Issuer to prevent any such renewal at least once in each twelve-month period
      (commencing with the date of issuance of such Letter of Credit) by giving prior
      notice to the beneficiary thereof not later than a day in each such twelve-month
      period to be agreed upon at the time such Letter of Credit is issued. Once
      any
      such Letter of Credit that has automatic renewal provisions has been issued,
      the
      Lenders shall be deemed to have authorized (but may not require) such LC Issuer
      to permit the renewal of such Letter of Credit at any time to an expiry date
      not
      later than 30 Business Days prior to the Revolving Facility Termination Date;
      provided,
      however,
      that
      such LC Issuer shall not permit any such renewal if (i) such LC Issuer has
      determined that it would have no obligation at such time to issue such Letter
      of
      Credit in its renewed form under the terms hereof, or (ii) it has received
      notice (which may be by telephone or in writing) on or before the day that
      is
      two Business Days before the date that such LC Issuer is permitted to send
      a
      notice of non-renewal from the Administrative Agent, any Lender or the Borrower
      Representative that one or more of the applicable conditions specified in
      Section 4.02 is not then satisfied.

     

    (d)   Applicability
      of ISP98 and UCP.
      Unless
      otherwise expressly agreed by the applicable LC Issuer and the applicable LC
      Obligor, when a Letter of Credit is issued, (i) the rules of the “International
      Standby Practices 1998” published by the Institute of International Banking Law
& Practice (or such later version thereof as may be in effect at the time of
      issuance) shall apply to each Standby Letter of Credit, and (ii) the rules
      of
      the Uniform Customs and Practice for Documentary Credits, as most recently
      published by the International Chamber of Commerce at the time of issuance
      (including the International Chamber of Commerce’s decision published by the
      Commission on Banking Technique and Practice on April 6, 1998 regarding the
      European single currency (euro)) shall apply to each Commercial Letter of
      Credit.

     

    (e)   Notice
      of LC Issuance.
      Each LC
      Issuer shall, on the date of each LC Issuance by it, give the Administrative
      Agent, each applicable Lender and the Borrower Representative written notice
      of
      such LC Issuance, accompanied by a copy to the Administrative Agent of the
      Letter of Credit or Letters of Credit issued by it. Each LC Issuer shall provide
      to the Administrative Agent a quarterly (or monthly if requested by any
      applicable Lender) summary describing each Letter of Credit issued by such
      LC
      Issuer and then outstanding and an identification for the relevant period of
      the
      daily aggregate LC Outstandings represented by Letters of Credit issued by
      such
      LC Issuer.

     

    (f)   Reimbursement
      Obligations.

     

    (i)   The
      Borrowers hereby agree to reimburse (or cause any LC Obligor for whose account
      a
      Letter of Credit was issued to reimburse) each LC Issuer, by making payment
      directly to such LC Issuer in immediately available funds at the payment office
      of such LC Issuer, for any Unpaid Drawing with respect to any Letter of Credit
      immediately after, and in any event on the date on which, such LC Issuer
      notifies the Borrower Representative (or any such other LC Obligor for whose
      account such Letter of Credit was issued) of such payment or disbursement (which
      notice to the Borrower Representative (or such other LC Obligor) shall be
      delivered reasonably promptly after any such payment or disbursement), such
      payment to be made in Dollars, with interest on the amount so paid or disbursed
      by such LC Issuer, to the extent not reimbursed prior to 1:00 P.M. (local time
      at the payment office of the applicable LC Issuer) on the date of such payment
      or disbursement, from and including the date paid or disbursed to but not
      including the date such LC Issuer is reimbursed therefor at a rate per annum
      that shall be the 

     

    
      
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    rate
      then
      applicable to Revolving Loans pursuant to Section 2.09(a)(i) that are Base
      Rate
      Loans or, if not reimbursed on the date of such payment or disbursement, at
      the
      Default Rate, any such interest also to be payable on demand. If by 11:00 A.M.
      on the Business Day immediately following notice to it of its obligation to
      make
      reimbursement in respect of an Unpaid Drawing, the Borrower Representative
      or
      the relevant LC Obligor has not made such reimbursement out of its available
      cash on hand or, in the case of a Borrower, a contemporaneous Borrowing
      hereunder (if such Borrowing is otherwise available to the Borrowers), (x)
      the
      Borrower Representative will in each case be deemed to have given a Notice
      of
      Borrowing for Revolving Loans that are Base Rate Loans in an aggregate principal
      amount sufficient to reimburse such Unpaid Drawing (and the Administrative
      Agent
      shall promptly give notice to the Lenders of such deemed Notice of Borrowing),
      (y) the Lenders shall, unless they are legally prohibited from doing so, make
      the Revolving Loans contemplated by such deemed Notice of Borrowing (which
      Revolving Loans shall be considered made under Section 2.02), and (z) the
      proceeds of such Revolving Loans shall be disbursed directly to the applicable
      LC Issuer to the extent necessary to effect such reimbursement and repayment
      of
      the Unpaid Drawing, with any excess proceeds to be made available to the
      Borrowers in accordance with the applicable provisions of this
      Agreement.

     

    (ii)   Obligations
      Absolute.
      Each LC
      Obligor’s obligation under this Section to reimburse each LC Issuer with respect
      to Unpaid Drawings (including, in each case, interest thereon) shall be absolute
      and unconditional under any and all circumstances and irrespective of any
      setoff, counterclaim or defense to payment that such LC Obligor may have or
      have
      had against such LC Issuer, the Administrative Agent or any Lender, including,
      without limitation, any defense based upon the failure of any drawing under
      a
      Letter of Credit to conform to the terms of the Letter of Credit or any
      non-application or misapplication by the beneficiary of the proceeds of such
      drawing; provided,
      however,
      that no
      LC Obligor shall be obligated to reimburse an LC Issuer for any wrongful payment
      made by such LC Issuer under a Letter of Credit as a result of acts or omissions
      constituting willful misconduct or gross negligence on the part of such LC
      Issuer.

     

    (g)   LC
      Participations.

     

    (i)   Immediately
      upon each LC Issuance, the LC Issuer of such Letter of Credit shall be deemed
      to
      have sold and transferred to each Lender with a Revolving Commitment, and each
      such Lender (each an “LC
      Participant”)
      shall
      be deemed irrevocably and unconditionally to have purchased and received from
      such LC Issuer, without recourse or warranty, an undivided interest and
      participation (an “LC
      Participation”),
      to
      the extent of such Lender’s Revolving Facility Percentage of the Stated Amount
      of such Letter of Credit in effect at such time of issuance, in such Letter
      of
      Credit, each substitute Letter of Credit, each drawing made thereunder, the
      obligations of any LC Obligor under this Agreement with respect thereto
      (although LC Fees relating thereto shall be payable directly to the
      Administrative Agent for the account of the Lenders as provided in Section
      2.11
      and the LC Participants shall have no right to receive any portion of any fees
      of the nature contemplated by Section 2.11(c) or Section 2.11(e)), the
      obligations of any LC Obligor under any LC Documents pertaining thereto, and
      any
      security for, or guaranty pertaining to, any of the foregoing. 

     

    (ii)   In
      determining whether to pay under any Letter of Credit, an LC Issuer shall not
      have any obligation relative to the LC Participants other than to determine
      that
      any documents required to be delivered under such Letter of Credit have been
      delivered and that they appear to comply on their face with the requirements
      of
      such Letter of Credit. Any action taken or omitted to be taken by an LC Issuer
      under or in connection with any Letter of Credit, if taken or omitted

     

    
      
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    in
      the
      absence of gross negligence or willful misconduct, shall not create for such
      LC
      Issuer any resulting liability.

     

    (iii)   If
      an LC
      Issuer makes any payment under any Letter of Credit and the applicable LC
      Obligor shall not have reimbursed such amount in full to such LC Issuer pursuant
      to Section 2.05(f), such LC Issuer shall promptly notify the Administrative
      Agent, and the Administrative Agent shall promptly notify each LC Participant
      of
      such failure, and each LC Participant shall promptly and unconditionally pay
      to
      the Administrative Agent for the account of such LC Issuer, the amount of such
      LC Participant’s Revolving Facility Percentage of such payment in Dollars and in
      same-day funds; provided,
      however,
      that no
      LC Participant shall be obligated to pay to the Administrative Agent its
      Revolving Facility Percentage of such unreimbursed amount for any wrongful
      payment made by such LC Issuer under a Letter of Credit as a result of acts
      or
      omissions constituting willful misconduct or gross negligence on the part of
      such LC Issuer. If the Administrative Agent so notifies any LC Participant
      required to fund a payment under a Letter of Credit prior to 11:00 A.M. (local
      time at its Notice Office) on any Business Day, such LC Participant shall make
      available to the Administrative Agent for the account of the relevant LC Issuer
      such LC Participant’s Revolving Facility Percentage of the amount of such
      payment on such Business Day in same-day funds. If and to the extent such LC
      Participant shall not have so made its Revolving Facility Percentage of the
      amount of such payment available to the Administrative Agent for the account
      of
      the relevant LC Issuer, such LC Participant agrees to pay to the Administrative
      Agent for the account of such LC Issuer, forthwith on demand, such amount,
      together with interest thereon, for each day from such date until the date
      such
      amount is paid to the Administrative Agent for the account of such LC Issuer
      at
      the Federal Funds Effective Rate. The failure of any LC Participant to make
      available to the Administrative Agent for the account of the relevant LC Issuer
      its Revolving Facility Percentage of any payment under any Letter of Credit
      shall not relieve any other LC Participant of its obligation hereunder to make
      available to the Administrative Agent for the account of such LC Issuer its
      Revolving Facility Percentage of any payment under any Letter of Credit on
      the
      date required, as specified above, but no LC Participant shall be responsible
      for the failure of any other LC Participant to make available to the
      Administrative Agent for the account of such LC Issuer such other LC
      Participant’s Revolving Facility Percentage of any such payment.

     

    (iv)   Whenever
      an LC Issuer receives a payment of a reimbursement obligation as to which the
      Administrative Agent has received for the account of such LC Issuer any payments
      from the LC Participants pursuant to subpart (iii) above, such LC Issuer shall
      pay to the Administrative Agent and the Administrative Agent shall promptly
      pay
      to each LC Participant that has paid its Revolving Facility Percentage thereof,
      in same-day funds, an amount equal to such LC Participant’s Revolving Facility
      Percentage of the principal amount thereof and interest thereon accruing after
      the purchase of the respective LC Participations, as and to the extent so
      received.

     

    (v)   The
      obligations of the LC Participants to make payments to the Administrative Agent
      for the account of each LC Issuer with respect to Letters of Credit shall be
      irrevocable and not subject to counterclaim, set-off or other defense or any
      other qualification or exception whatsoever and shall be made in accordance
      with
      the terms and conditions of this Agreement under all circumstances, including,
      without limitation, any of the following circumstances:

     

    (A)   any
      lack of validity or
      enforceability of this Agreement or any of the other Loan
      Documents;

     

    
      
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    (B)   the
      existence of any claim, set-off defense or other right that any LC Obligor
      may
      have at any time against a beneficiary named in a Letter of Credit, any
      transferee of any Letter of Credit (or any Person for whom any such transferee
      may be acting), the Administrative Agent, any LC Issuer, any Lender, or other
      Person, whether in connection with this Agreement, any Letter of Credit, the
      transactions contemplated herein or any unrelated transactions (including any
      underlying transaction between the applicable LC Obligor and the beneficiary
      named in any such Letter of Credit), other than any claim that the applicable
      LC
      Obligor may have against any applicable LC Issuer for gross negligence or
      willful misconduct of such LC Issuer in making payment under any applicable
      Letter of Credit;

     

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

     

    (D)   the
      surrender or impairment of any security for the performance or observance of
      any
      of the terms of any of the Loan Documents; or

     

    (E)   the
      occurrence of any Default or Event of Default.

     

    (vi)   To
      the
      extent any LC Issuer is not indemnified by the Borrowers or any LC Obligor,
      the
      LC Participants will reimburse and indemnify such LC Issuer, in proportion
      to
      their respective Revolving Facility Percentages, for and against any and all
      liabilities, obligations, losses, damages, penalties, claims, actions,
      judgments, costs, expenses or disbursements of whatsoever kind or nature that
      may be imposed on, asserted against or incurred by such LC Issuer in performing
      its respective duties in any way related to or arising out of LC Issuances
      by
      it; provided,
      however, that
      no
      LC Participants shall be liable for any portion of such liabilities,
      obligations, losses, damages, penalties, claims, actions, judgments, costs,
      expenses or disbursements resulting from such LC Issuer’s gross negligence or
      willful misconduct.

     

    Section
      2.06     Notice
      of Borrowing.

     

    (a)   Time
      of Notice.
      Each
      Borrowing of a Loan (other than a Continuation or Conversion) shall be made
      upon
      notice in the form provided for below which shall be provided by the Borrower
      Representative to the Administrative Agent at its Notice Office not later than
      (i) in the case of each Borrowing of a Eurodollar Loan, 11:00 A.M. (local time
      at its Notice Office) at least three Business Days’ prior to the date of such
      Borrowing and (ii) in the case of each Borrowing of a Base Rate Loan, prior
      to
      11:00 A.M. (local time at its Notice Office) on the proposed date of such
      Borrowing. 

     

    (b)   Notice
      of Borrowing.
      Each
      request for a Borrowing (other than a Continuation or Conversion) shall be
      made
      by an Authorized Officer by delivering written notice of such request
      substantially in the form of Exhibit
      B-1
      hereto
      (each such notice, a “Notice
      of Borrowing”)
      or by
      telephone (to be confirmed immediately in writing by delivery by an Authorized
      Officer of a Notice of Borrowing), and in any event each such request shall
      be
      irrevocable and shall specify (i) the aggregate principal amount of the Loans
      to
      be made pursuant to such Borrowing, (ii) the date of the Borrowing (which shall
      be a Business Day), and (iii) the Type of Loans such Borrowing will consist
      of. Without in any way limiting the obligation of the Borrower Representative
      to
      confirm in writing any telephonic notice permitted to be given hereunder, the
      Administrative Agent may act prior to receipt of written confirmation without
      liability upon the basis of such telephonic notice believed by the
      Administrative Agent in good faith to be from an Authorized Officer entitled
      to
      give telephonic notices under this 

     

    
      
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    Agreement
      on behalf of the Borrowers. In each such case, the Administrative Agent’s record
      of the terms of such telephonic notice shall be conclusive absent manifest
      error.

     

    (c)   Minimum
      Borrowing Amount.
      The
      aggregate principal amount of each Borrowing by the Borrowers shall not be
      less
      than the Minimum Borrowing Amount. 

     

    (d)   Maximum
      Borrowings.
      More
      than one Borrowing may be incurred by the Borrowers on any day; provided,
      however,
      that
      (i)
      if there
      are two or more Borrowings on a single day (other than with respect to a Term
      Borrowing made on the Closing Date) by the Borrowers that consist of Eurodollar
      Loans, each such Borrowing shall have a different initial Interest Period,
      and
(ii)
      at no
      time shall there be more than five Borrowings of Eurodollar Loans outstanding
      hereunder.

     

    Section
      2.07     Funding
      Obligations; Disbursement of Funds. 

     

    (a)   Several
      Nature of Funding Obligations.
      The
      Commitments of each Lender hereunder and the obligation of each Lender to make
      Loans and fund LC Participations, as the case may be, are several and not joint
      obligations. No Lender shall be responsible for any default by any other Lender
      in its obligation to make Loans or fund any participation hereunder and each
      Lender shall be obligated to make the Loans provided to be made by it and fund
      its participations required to be funded by it hereunder, regardless of the
      failure of any other Lender to fulfill any of its Commitments hereunder. Nothing
      herein and no subsequent termination of the Commitments pursuant to Section
      2.12
      shall be deemed to relieve any Lender from its obligation to fulfill its
      commitments hereunder and in existence from time to time or to prejudice any
      rights that the Borrowers may have against any Lender as a result of any default
      by such Lender hereunder.

     

    (b)   Borrowings
      Pro
      Rata.
      All
      Loans hereunder shall be made as follows: (i) all Revolving Loans made, and
      LC
      Participations acquired by each Lender, shall be made or acquired, as the case
      may be, on a pro
      rata
      basis
      based upon each Lender’s Revolving Facility Percentage of the amount of such
      Revolving Borrowing or Letter of Credit in effect on the date the applicable
      Revolving Borrowing is to be made or the Letter of Credit is to be issued,
      and
      (ii) all Term Loans shall be made by the Lenders having Term Commitments
pro
      rata
      on the
      basis of their respective Term Commitments.

     

    (c)   Notice
      to Lenders.
      The
      Administrative Agent shall promptly give each Lender, as applicable, written
      notice (or telephonic notice promptly confirmed in writing) of each proposed
      Borrowing, or Conversion or Continuation thereof, and LC Issuance, and of such
      Lender’s proportionate share thereof or participation therein and of the other
      matters covered by the Notice of Borrowing, Notice of Continuation or
      Conversion, or LC Request, as the case may be, relating thereto. 

     

    (d)   Funding
      of Loans.
      No
      later than 2:00 P.M. (local time at the Payment Office) on the date
      specified in each Notice of Borrowing, each Lender will make available its
      amount, if any, of each Borrowing requested to be made on such date to the
      Administrative Agent at the Payment Office in Dollars and in immediately
      available funds and the Administrative Agent promptly will make available to
      the
      Borrowers by depositing to its account at the Payment Office (or such other
      account as the Borrower Representative shall specify) the aggregate of the
      amounts so made available in the type of funds received.

     

    (e)   Advance
      Funding.
      Unless
      the Administrative Agent shall have been notified by any Lender prior to the
      date of Borrowing that such Lender does not intend to make available to the
      Administrative Agent its portion of the Borrowing or Borrowings to be made
      on
      such date, the Administrative Agent may assume that such Lender has made such
      amount available to the Administrative Agent on such date of Borrowing, and
      the
      Administrative Agent, in reliance upon such 

     

    
      
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    assumption,
      may (in its sole discretion and without any obligation to do so) make available
      to the Borrowers a corresponding amount. If such corresponding amount is not
      in
      fact made available to the Administrative Agent by such Lender and the
      Administrative Agent has made the same available to the Borrowers, the
      Administrative Agent shall be entitled to recover such corresponding amount
      from
      such Lender. If such Lender does not pay such corresponding amount forthwith
      upon the Administrative Agent’s demand therefor, the Administrative Agent shall
      promptly notify the Borrower Representative, and the Borrowers shall immediately
      pay such corresponding amount to the Administrative Agent. The Administrative
      Agent shall also be entitled to recover from such Lender or the Borrowers,
      as
      the case may be, interest on such corresponding amount in respect of each day
      from the date such corresponding amount was made available by the Administrative
      Agent to the Borrowers to the date such corresponding amount is recovered by
      the
      Administrative Agent at a rate per annum equal to (i) if paid by such Lender,
      the overnight Federal Funds Effective Rate or (ii) if paid by the Borrowers,
      the
      then applicable rate of interest, calculated in accordance with Section 2.09,
      for the respective Loans (but without any requirement to pay any amounts in
      respect thereof pursuant to Section 3.02).

     

    Section
      2.08     Evidence
      of Obligations.

     

    (a)   Loan
      Accounts of Lenders.
      Each
      Lender shall maintain in accordance with its usual practice an account or
      accounts evidencing the Obligations of the Borrowers 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.

     

    (b)  Loan
      Accounts of Administrative Agent; Lender Register.
      The
      Administrative Agent shall maintain accounts in which it shall
      record
      (i)
      the
      amount of each Loan and Borrowing made hereunder, the Type thereof, the currency
      in which such Loan is denominated, the Interest Period and applicable interest
      rate,
      (ii)
      the
      amount and other details with respect to each Letter of Credit issued hereunder,
      (iii) the amount of any principal due and payable or to become due and payable
      from the Borrowers to each Lender hereunder, (iv)
      the
      amount of any sum received by the Administrative Agent hereunder for the account
      of the Lenders and each Lender’s share thereof, and (v) the other details
      relating to the Loans, Letters of Credit and other Obligations. In addition,
      the
      Administrative Agent shall maintain a register (the “Lender
      Register”)
      on or
      in which it will record the names and addresses of the Lenders, and the
      Commitments from time to time of each of the Lenders. The Administrative Agent
      will make the Lender Register available to any Lender or the Borrowers upon
      request.

     

    (c)   Effect
      of Loan Accounts, etc.
      The
      entries made in the accounts maintained pursuant to Section 2.08(b) shall be
      prima
      facie
      evidence
      of the existence and amounts of the Obligations recorded therein; provided,
      that
      the failure of the Administrative Agent to maintain such accounts or any error
      (other than manifest error) therein shall not in any manner affect the
      obligation of any Loan Party to repay or prepay the Loans or the other
      Obligations in accordance with the terms of this Agreement.

     

    (d)   Notes.
      Upon
      request of any Lender, the Borrowers will execute and deliver to such Lender
      (i)
      a Revolving Facility Note with blanks appropriately completed in conformity
      herewith to evidence the Borrowers’ obligation to pay the principal of, and
      interest on, the Revolving Loans made to it by such Lender and (ii) a Term
      Note
      with blanks appropriately completed in conformity herewith to evidence their
      obligation to pay the principal of, and interest on, the Term Loan made to
      it by
      such Lender.

     

    Section
      2.09     Interest;
      Default Rate.

     

    (a)   Interest
      on Revolving Loans.
      The
      outstanding principal amount of each Revolving Loan made by each Lender shall
      bear interest at a fluctuating rate per annum that shall at all times be equal
      to 

     

    
      
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    (i)   during
      such periods as
      such Revolving Loan is a Base Rate Loan, the Base Rate plus
      the
      Applicable Margin in effect from time to time, and (ii) during such periods
      as
      such Revolving Loan is a Eurodollar Loan, the relevant Adjusted Eurodollar
      Rate
      for such Eurodollar Loan for the applicable Interest Period plus
      the
      Applicable Margin in effect from time to time.

     

    (b)   Interest
      on Term Loans.
      The
      outstanding principal amount of each Term Loan made by each Lender shall bear
      interest at a fluctuating rate per annum that shall at all times be equal to
      (i)
      during such periods as such Term Loan is a Base Rate Loan, the Base Rate
plus
      the
      Applicable Margin in effect from time to time, and (ii) during such periods
      as
      such Term Loan is a Eurodollar Loan, the relevant Adjusted Eurodollar Rate
      for
      such Eurodollar Loan for the applicable Interest Period plus
      the
      Applicable Margin in effect from time to time. 

     

    (c)   Default
      Interest.
      Notwithstanding the above provisions, if an Event of Default is in existence,
      upon written notice by the Administrative Agent (which notice the Administrative
      Agent shall give at the direction of the Required Lenders), (i) all outstanding
      amounts of principal and, to the extent permitted by law, all overdue interest,
      in respect of each Loan shall bear interest, payable on demand, at a rate per
      annum equal to the Default Rate, and (ii) the LC Fees shall be increased by
      an
      additional 2% per annum in excess of the LC Fees otherwise applicable thereto.
      In addition, if any amount (other than amounts as to which the foregoing
      subparts (i) and (ii) are applicable) payable by the Borrowers under the Loan
      Documents is not paid when due, upon written notice by the Administrative Agent
      (which notice the Administrative Agent shall give at the direction of the
      Required Lenders), such amount shall bear interest, payable on demand, at a
      rate
      per annum equal to the Default Rate.

     

    (d)   Accrual
      and Payment of Interest.
      Interest shall accrue from and including the date of any Borrowing to but
      excluding the date of any prepayment or repayment thereof and shall be payable
      by the Borrowers: (i) in respect of each Base Rate Loan, quarterly in arrears
      on
      the last Business Day of each March, June, September and December, (ii) in
      respect of each Eurodollar Loan, on the last day of each Interest Period
      applicable thereto and, in the case of an Interest Period in excess of three
      months, on the dates that are successively three months after the commencement
      of such Interest Period, and (iii) in respect of all Loans, other than Revolving
      Loans accruing interest at a Base Rate, on any repayment, prepayment or
      Conversion (on the amount repaid, prepaid or Converted), at maturity (whether
      by
      acceleration or otherwise), and, after such maturity or, in the case of any
      interest payable pursuant to Section 2.09(c), on demand.

     

    (e)   Computations
      of
      Interest.
      All
      computations of interest on Eurodollar Loans hereunder shall be made on the
      actual number of days elapsed over a year of 360 days. All computations of
      interest on Base Rate Loans and Unpaid Drawings hereunder shall be made on
      the
      actual number of days elapsed over a year of 365 or 366 days, as applicable.
      

     

    (f)   Information
      as to Interest Rates.
      The
      Administrative Agent, upon determining the interest rate for any Borrowing,
      shall promptly notify the Borrower Representative and the Lenders thereof.
      Any
      changes in the Applicable Margin shall be determined by the Administrative
      Agent
      in accordance with the provisions set forth in the definition of “Applicable
      Margin” and the Administrative Agent will promptly provide notice of such
      determinations to the Borrower Representative and the Lenders. Any such
      determination by the Administrative Agent shall be conclusive and binding absent
      manifest error.

     

    Section
      2.10     Conversion
      and Continuation of Loans.

     

    (a)   Conversion
      and Continuation of Revolving Loans.
      The
      Borrowers shall have the right, subject to the terms and conditions of this
      Agreement, to (i) Convert all or a portion of the outstanding 

     

    
      
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    principal
      amount of Loans of one Type made to it into a Borrowing or Borrowings of another
      Type of Loans that can be made to it pursuant to this Agreement and (ii)
      Continue a Borrowing of Eurodollar Loans at the end of the applicable Interest
      Period as a new Borrowing of Eurodollar Loans with a new Interest Period;
provided,
      however,
      that any
      Conversion of Eurodollar Loans into Base Rate Loans shall be made on, and only
      on, the last day of an Interest Period for such Eurodollar Loans.

     

    (b)   Notice
      of Continuation and Conversion.
      Each
      Continuation or Conversion of a Loan shall be made upon notice in the form
      provided for below provided by the Borrower Representative to the Administrative
      Agent at its Notice Office not later than (i) in the case of each Continuation
      of or Conversion into a Eurodollar Loan, prior to 11:00 A.M. (local time at
      its
      Notice Office) at least three Business Days’ prior to the date of such
      Continuation or Conversion, and (ii) in the case of each Conversion to a Base
      Rate Loan, prior to 11:00 A.M. (local time at its Notice Office) on the proposed
      date of such Conversion. Each such request shall be made by an Authorized
      Officer delivering written notice of such request substantially in the form
      of
Exhibit
      B-2
      hereto
      (each such notice, a “Notice
      of Continuation or Conversion”)
      or by
      telephone (to be confirmed immediately in writing by delivery by an Authorized
      Officer of a Notice of Continuation or Conversion), and in any event each such
      request shall be irrevocable and shall specify (A) the Borrowings to be
      Continued or Converted, (B) the date of the Continuation or Conversion (which
      shall be a Business Day), and (C) the Interest Period or, in the case of a
      Continuation, the new Interest Period. Without in any way limiting the
      obligation of the Borrowers to confirm in writing any telephonic notice
      permitted to be given hereunder, the Administrative Agent may act prior to
      receipt of written confirmation without liability upon the basis of such
      telephonic notice believed by the Administrative Agent in good faith to be
      from
      an Authorized Officer entitled to give telephonic notices under this Agreement
      on behalf of the Borrower. In each such case, the Administrative Agent’s record
      of the terms of such telephonic notice shall be conclusive absent manifest
      error.

     

    Section
      2.11     Fees.

     

    (a)   Closing
      Fees.
      The
      Borrowers agree to pay to the Administrative Agent, for the ratable benefit
      of
      each Lender, the closing fees set forth in the Closing Fee Letter.

     

    (b)   Commitment
      Fees.
      

     

    (i)   The
      Borrowers agree to pay to the Administrative Agent, for the ratable benefit
      of
      each Lender based upon each such Lender’s Revolving Facility Percentage, as
      consideration for the Revolving Commitments of the Lenders, commitment fees
      (the
“Commitment
      Fees”)
      for
      the period from the Closing Date to, but not including, the Revolving Facility
      Termination Date, computed for each day at a rate per annum equal to (i) 37.5
      basis points times
      (ii) the
      Unused Total Revolving Commitment in effect on such day. Accrued Commitment
      Fees
      shall be due and payable in arrears on the last Business Day of each March,
      June, September and December and on the Revolving Facility Termination
      Date.

     

    (ii)   The
      Borrowers agree to pay to the Administrative Agent, for the ratable benefit
      of
      each Lender based upon each such Lender’s Term Commitment, as consideration for
      the Term Commitments of the Lenders, commitment fees (the “Term
      Commitment Fees”)
      for
      the period from the Closing Date to, but not including, the last day the Term
      Loan Commitment Period, computed for each day at a rate per annum equal to
      (i)
      37.5 basis points times
      (ii) the
      Total Term Loan Commitment in effect on such day. Accrued Term Commitment Fees
      shall be due and payable in arrears on the last Business Day of each fiscal
      quarter and on the last day of the Term Loan Commitment Period.

     

    
      
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    (c)   LC
      Fees.

     

    (i)   Standby
      Letters of Credit.
      The
      Borrowers agree to pay to the Administrative Agent, for the ratable benefit
      of
      each Lender with a Revolving Commitment based upon each such Lender’s Revolving
      Facility Percentage, a fee in respect of each Letter of Credit issued hereunder
      that is a Standby Letter of Credit for the period from the date of issuance
      of
      such Letter of Credit until the expiration date thereof (including any
      extensions of such expiration date that may be made at the election of the
      account party or the beneficiary), computed for each day at a rate per annum
      equal to (A) the Applicable Margin for Revolving Loans that are Eurodollar
      Loans
      in effect on such day times
      (B) the
      Stated Amount of such Letter of Credit on such day. The foregoing fees shall
      be
      payable quarterly in arrears on the last Business Day of each March, June,
      September and December and on the Revolving Facility Termination Date.

     

    (ii)   Commercial
      Letters of Credit.
      The
      Borrowers agree to pay to the Administrative Agent for the ratable benefit
      of
      each Lender based upon each such Lender’s Revolving Facility Percentage, a fee
      in respect of each Letter of Credit issued hereunder that is a Commercial Letter
      of Credit in an amount equal to (A) the Applicable Margin for Revolving Loans
      that are Eurodollar Loans in effect on the date of issuance times
      (B) the
      Stated Amount of such Letter of Credit. The foregoing fees shall be payable
      on
      the date of issuance of such Letter of Credit.

     

    (d)   Fronting
      Fees.
      The
      Borrowers agree to pay directly to each LC Issuer, for its own account, a fee
      in
      respect of each Letter of Credit issued by it, payable on the date of issuance
      (or any increase in the amount, or renewal or extension) thereof, computed
      at
      the rate of 1/8th
      of 1%
      per annum on the Stated Amount thereof for the period from the date of issuance
      (or increase, renewal or extension) to the expiration date thereof (including
      any extensions of such expiration date which may be made at the election of
      the
      beneficiary thereof).

     

    (e)    Additional
      Charges of LC
      Issuer.
      The
      Borrowers agree to pay directly to each LC Issuer upon each LC Issuance, drawing
      under, or amendment, extension, renewal or transfer of, a Letter of Credit
      issued by it such amount as shall at the time of such LC Issuance, drawing
      under, amendment, extension, renewal or transfer be the processing charge that
      such LC Issuer is customarily charging for issuances of, drawings under or
      amendments, extensions, renewals or transfers of, letters of credit issued
      by
      it.

     

    (f)     Administrative
      Agent Fees.
      The
      Borrowers shall pay to the Administrative Agent, on the Closing Date and
      thereafter, for its own account, the fees set forth in the Confidential Fee
      Letter.

     

    (g)    Computations
      of Fees.
      All
      computations of Commitment Fees, LC Fees and other Fees hereunder shall be
      made
      on the actual number of days elapsed over a year of 360 days.

     

    Section
      2.12     Termination
      and Reduction of Revolving Commitments.

     

    (a)   Mandatory
      Termination of Revolving Commitments.
      All of
      the Revolving Commitments shall terminate on the Revolving Facility Termination
      Date.

     

    (b)   Voluntary
      Termination of the Total Revolving Commitment.
      Upon at
      least three Business Days’ prior irrevocable written notice (or telephonic
      notice confirmed in writing) to the Administrative Agent at its Notice Office
      (which notice the Administrative Agent shall promptly transmit to each of the
      Lenders), the Borrowers shall have the right to terminate in whole the Total
      Revolving Commitment, provided
      that
      (i)
      all
      outstanding Revolving Loans and Unpaid Drawings are contemporaneously prepaid
      in
      accordance with Section 2.13 and
      (ii)
      either there
      are
      no outstanding 

     

    
      
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    Letters
      of Credit or the
      Borrowers shall contemporaneously cause all outstanding Letters of Credit to
      be
      surrendered for cancellation (any such Letters of Credit to be replaced by
      letters of credit issued by other financial institutions reasonably acceptable
      to each LC Issuer and the Revolving Lenders).

     

    (c)   Partial
      Reduction of Total Revolving Commitment.
      Upon at
      least three Business Days’ prior irrevocable written notice (or telephonic
      notice confirmed in writing) to the Administrative Agent at its Notice Office
      (which notice the Administrative Agent shall promptly transmit to each of the
      Lenders), the Borrowers shall have the right to partially and permanently reduce
      the Unused Total Revolving Commitment; provided,
      however,
      that
      (i) any
      such reduction shall apply to proportionately (based on each Lender’s Revolving
      Facility Percentage) and permanently reduce the Revolving Commitment of each
      Lender, (ii) such reduction shall apply to proportionately and permanently
      reduce the LC Commitment Amount, but only to the extent that the Unused Total
      Revolving Commitment would be reduced below any such limits, (iii) no such
      reduction shall be permitted if the Borrowers would be required to make a
      mandatory prepayment of Loans or cash collateralize Letters of Credit pursuant
      to Section 2.13, and
      (iv)
      any
      partial reduction shall be in the amount of at least $5,000,000 (or, if greater,
      in integral multiples of $1,000,000).

     

    Section
      2.13     Voluntary,
      Scheduled and Mandatory Prepayments of Loans.

     

    (a)   Voluntary
      Prepayments.
      The
      Borrowers shall have the right to prepay any of the Loans owing by it, in whole
      or in part, without premium or penalty, except
      as
      specified in subparts (d) and (e) below, from time to time. The Borrower
      Representative shall give the Administrative Agent at the Notice Office written
      or telephonic notice (in the case of telephonic notice, promptly confirmed
      in
      writing if so requested by the Administrative Agent) of its intent to prepay
      the
      Loans, the amount of such prepayment and (in the case of Eurodollar Loans)
      the
      specific Borrowing(s) pursuant to which the prepayment is to be made, which
      notice shall be received by the Administrative Agent by (y) 11:00 A.M. (local
      time at the Notice Office) three Business Days prior to the date of such
      prepayment, in the case of any prepayment of Eurodollar Loans, or (z) 11:00
      A.M.
      (local time at the Notice Office) one Business Day prior to the date of such
      prepayment, in the case of any prepayment of Base Rate Loans, and which notice
      shall promptly be transmitted by the Administrative Agent to each of the
      affected Lenders, provided
      that:

     

    (i)   each
      partial prepayment
      shall be in an aggregate principal amount of at least (A) in the case of
      any prepayment of a Eurodollar Loan, $10,000,000 (or, if less, the full amount
      of such Borrowing), or an integral multiple of $1,000,000 in excess thereof,
      and
      (B) in the case of any prepayment of a Base Rate Loan, $1,000,000 (or, if less,
      the full amount of such Borrowing, or an integral multiple of $500,000 in excess
      thereof;

     

    (ii)   no
      partial prepayment of any Loans made pursuant to a Borrowing shall reduce the
      aggregate principal amount of such Loans outstanding pursuant to such Borrowing
      to an amount less than the Minimum Borrowing Amount applicable thereto;
      and

     

    (iii)   in
      the
      case of any prepayment of Term Loans, such prepayment shall be applied to the
      Scheduled Repayments in respect of the Term Loans in the inverse order of
      maturity.

     

    (b)   Scheduled
      Repayments of Term Loans.
      Commencing on the first Quarterly Payment Date after the expiration of the
      Term
      Loan Commitment Period and continuing on each Quarterly Payment Date thereafter,
      the Borrowers shall make principal payments of the Term Loans in an amount
      equal
      to $833,333 for each such quarterly payment, except
      that the
      payment due on the Term Loan Maturity Date shall in any event be in the amount
      of the entire remaining principal amount of the outstanding Term Loans (each
      such repayment, a “Scheduled
      Repayment”).

     

    
      
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    (c)   Mandatory
      Payments.
      The
      Loans shall be subject to mandatory repayment or prepayment (in the case of
      any
      partial prepayment conforming to the requirements as to the amounts of partial
      prepayments set forth in Section 2.13(a) above), and the LC Outstandings shall
      be subject to cash collateralization requirements, in accordance with the
      following provisions:

     

    (i)   Revolving
      Facility Termination Date.
      The
      entire principal amount of all outstanding Revolving Loans shall be repaid
      in
      full on the Revolving Facility Termination Date.

     

    (ii)   Loans
      Exceed the Commitments.
      If on
      any date (after giving effect to any other payments on such date) (A) the
      Aggregate Credit Facility Exposure exceeds the Total Credit Facility Amount,
      or
      (B) the Revolving Facility Exposure of any Lender exceeds such Lender’s
      Revolving Commitment, then,
      in the
      case of each of the foregoing, the Borrowers shall, on such day, prepay on
      such
      date the principal amount of Loans and, after Loans have been paid in full,
      Unpaid Drawings, in an aggregate amount at least equal to such
      excess.

     

    (iii)  LC
      Outstandings Exceed LC Commitment
      If on
      any date the LC Outstandings exceed the LC Commitment Amount, then
      the
      applicable LC Obligor or the Borrowers shall, on such day, pay to the
      Administrative Agent an amount in cash equal to such excess and the
      Administrative Agent shall hold such payment as security for the reimbursement
      obligations of the applicable LC Obligors hereunder in respect of Letters of
      Credit pursuant to a cash collateral agreement to be entered into in form and
      substance reasonably satisfactory to the Administrative Agent, each LC Issuer
      and the Borrowers (which shall permit certain investments in Cash Equivalents
      satisfactory to the Administrative Agent, each LC Issuer and the Borrowers
      until
      the proceeds are applied to any Unpaid Drawings or to any other Obligations
      in
      accordance with any such cash collateral agreement).

     

    (d)   Particular
      Loans to be Prepaid.
      With
      respect to each repayment or prepayment of Loans made or required by this
      Section, the Borrower Representative shall designate the Types of Loans that
      are
      to be repaid or prepaid and the specific Borrowing(s) pursuant to which such
      repayment or prepayment is to be made; provided,
      however,
      that
      (i)
      the
      Borrower Representative shall first so designate all Loans that are Base Rate
      Loans and Eurodollar Loans with Interest Periods ending on the date of repayment
      or prepayment prior to designating any other Eurodollar Loans for repayment
      or
      prepayment,
      and
      (ii)
      if the
      outstanding principal amount of Eurodollar Loans made pursuant to a Borrowing
      is
      reduced below the applicable Minimum Borrowing Amount as a result of any such
      repayment or prepayment, then all the Loans outstanding pursuant to such
      Borrowing shall, in the case of Eurodollar Loans, be Converted into Base Rate
      Loans. In the absence of a designation by the Borrower Representative as
      described in the preceding sentence, the Administrative Agent shall, subject
      to
      the above, make such designation in its sole discretion with a view, but no
      obligation, to minimize breakage costs owing under Article III.

     

    (e)   Breakage
      and Other Compensation.
      Any
      prepayment made pursuant to this Section 2.13 shall be accompanied by any
      amounts payable in respect thereof under Article III hereof.

     

    Section
      2.14     Method
      and Place of Payment.
      

     

    (a)   Generally.
      All
      payments made by the Borrowers hereunder (including any payments made with
      respect to the Borrower Guaranteed Obligations under Article X) under any
      Note or any other Loan Document, shall be made without setoff, counterclaim
      or
      other defense. 

     

    (b)   Application
      of Payments.
      Except
      as specifically set forth elsewhere in this Agreement and subject to Section
      8.03, (i) all payments and prepayments of Revolving Loans and Unpaid Drawings
      with respect to Letters of Credit shall be applied by the Administrative Agent
      on a pro
      rata
      basis
      based 

     

    
      
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    upon
      each
      Lender’s Revolving Facility Percentage of the amount of such prepayment, and
      (ii) all payments and prepayments of Term Loans shall be applied by the
      Administrative Agent to reduce the principal amount of the Term Loans made
      by
      each Lender with a Term Commitment, pro
      rata
      on the
      basis of their respective Term Commitments.

     

    (c)   Payment
      of Obligations.
      Except
      as specifically set forth elsewhere in this Agreement, all payments under this
      Agreement with respect to any of the Obligations shall be made to the
      Administrative Agent on the date when due and shall be made at the Payment
      Office in immediately available funds and, except as set forth in the next
      sentence, shall be made in Dollars. 

     

    (d)   Timing
      of Payments.
      Any
      payments under this Agreement that are made later than 11:00 A.M. (local
      time at the Payment Office) shall be deemed to have been made on the next
      succeeding Business Day. Whenever any payment to be made hereunder shall be
      stated to be due on a day that is not a Business Day, the due date thereof
      shall
      be extended to the next succeeding Business Day and, with respect to payments
      of
      principal, interest shall be payable during such extension at the applicable
      rate in effect immediately prior to such extension.

     

    (e)   Distribution
      to Lenders.
      Upon
      the Administrative Agent’s receipt of payments hereunder, the Administrative
      Agent shall promptly distribute to each Lender or the applicable LC Issuer,
      as
      the case may be, its ratable share, if any, of the amount of principal,
      interest, and Fees received by it for the account of such Lender. Payments
      received by the Administrative Agent in Dollars shall be delivered to the
      Lenders or the applicable LC Issuer, as the case may be, in Dollars in
      immediately available funds; provided,
      however,
      that if
      at any time insufficient funds are received by and available to the
      Administrative Agent to pay fully all amounts of principal, Unpaid Drawings,
      interest and Fees then due hereunder then, except as specifically set forth
      elsewhere in this Agreement and subject to Section 8.03, such funds shall be
      applied, first,
      towards
      payment of interest and Fees then due hereunder, ratably among the parties
      entitled thereto in accordance with the amounts of interest and Fees then due
      to
      such parties, and second,
      towards
      payment of principal and Unpaid Drawings then due hereunder, ratably among
      the
      parties entitled thereto in accordance with the amounts of principal and Unpaid
      Drawings then due to such parties.

     

    Section
      2.15     Joint
      and Several Liability of the Borrowers.
      

     

    (a)   Each
      request by the Borrower Representative for a Borrowing, Continuation or
      Conversion of any Loan shall be deemed to be a joint and several request by
      all
      of the Borrowers. Each Borrower acknowledges and agrees that the Lenders are
      entering into this Agreement at the request of each Borrower and with the
      understanding that each Borrower is and shall remain fully liable, jointly
      and
      severally, for payment in full of all of the Obligations. 

     

    (b)   To
      the
      extent that a Borrower shall make a payment (each a “Borrower
      Payment”)
      of all
      or any portion of the Obligations, then such Borrower shall be entitled to
      contribution and indemnification from, and be reimbursed by, each of the other
      Borrowers in an amount equal to a fraction of such Borrower Payment, the
      numerator of which fraction is the sum of such other Borrowers’ Allocable
      Amounts and the denominator of which is the sum of the Allocable Amounts of
      all
      of the Borrowers.

     

    (c)   This
      Section 2.15 is intended only to define the relative rights of the Borrowers,
      and nothing set forth in this Section 2.15 is intended to or shall impair the
      obligations of the Borrowers, jointly and severally, to pay any amounts, as
      and
      when the same shall become due and payable in accordance with the terms of
      this
      Agreement and the other Loan Documents.

     

    
      
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    (d)   The
      Borrowers acknowledge that the rights of contribution and indemnification
      hereunder shall constitute assets in favor of each Borrower to which such
      contribution and indemnification is owing.

     

    (e)   Any
      right of contribution
      of any of the Borrowers shall be subject and subordinate to the prior
      indefeasible payment in full of the Obligations.

     

     

    ARTICLE
      III.

     

    INCREASED
      COSTS, ILLEGALITY AND TAXES

     

    Section
      3.01     Increased
      Costs, Illegality, etc.

     

    (a)   In
      the
      event that (y) in the case of clause (i) below, the Administrative Agent or
      (z)
      in the case of clauses (ii) and (iii) below, any Lender, shall have determined
      on a reasonable basis (which determination shall, absent manifest error, be
      final and conclusive and binding upon all parties hereto):

     

    (i)   on
      any
      date for determining the interest rate applicable to any Eurodollar Loan for
      any
      Interest Period that, by reason of any changes arising after the Closing Date,
      adequate and fair means do not exist for ascertaining the applicable interest
      rate on the basis provided for in this Agreement for such Eurodollar Loan;
      or

     

    (ii)   at
      any
      time, that such Lender shall incur increased costs or reductions in the amounts
      received or receivable by it hereunder in an amount that such Lender deems
      material with respect to any Eurodollar Loans (other than any increased cost
      or
      reduction in the amount received or receivable resulting from the imposition
      of
      or a change in the rate of taxes or similar charges) because of (x) any change
      since the Closing Date in any applicable law, governmental rule, regulation,
      guideline, order or request (whether or not having the force of law), or in
      the
      interpretation or administration thereof and including the introduction of
      any
      new law or governmental rule, regulation, guideline, order or request (such
      as,
      for example, but not limited to, a change in official reserve requirements,
      but,
      in all events, excluding reserves already includable in the interest rate
      applicable to such Eurodollar Loan pursuant to this Agreement) or (y) other
      circumstances adversely affecting the London interbank market or the position
      of
      such Lender in any such market; or

     

    (iii)   at
      any
      time, that the making or continuance of any Eurodollar Loan has become unlawful
      by compliance by such Lender in good faith with any change since the Closing
      Date in any law, governmental rule, regulation, guideline or order, or the
      interpretation or application thereof, or would conflict with any thereof not
      having the force of law but with which such Lender customarily complies, or
      has
      become impracticable as a result of a contingency occurring after the Closing
      Date that materially adversely affects the London interbank market;

     

    then,
      and in
      each such event, such Lender (or the Administrative Agent in the case of clause
      (i) above) shall (1) on or promptly following such date or time and (2) within
      10 Business Days of the date on which such event no longer exists give notice
      (by telephone confirmed in writing) to the Borrower Representative and to the
      Administrative Agent of such determination (which notice the Administrative
      Agent shall promptly transmit to each of the other Lenders). Thereafter
      (x) in the case of clause (i) above, the affected Type of Eurodollar Loans
      shall no longer be available until such time as the Administrative Agent
      notifies the Borrower Representative and the Lenders that the circumstances
      giving rise to such notice by the Administrative Agent no longer exist, and
      any
      Notice of Borrowing or Notice of Continuation or Conversion given by the
      Borrower Representative with respect to such Type of 

     

    
      
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    Eurodollar
      Loans that have not yet been incurred, Converted or Continued shall be deemed
      rescinded by the Borrower Representative or, in the case of a Notice of
      Borrowing, shall, at the option of the Borrower Representative, be deemed
      converted into a Notice of Borrowing for Base Rate Loans to be made on the
      date
      of Borrowing contained in such Notice of Borrowing, (y) in the case of clause
      (ii) above, the Borrowers shall pay to such Lender, upon written demand
      therefor, such additional amounts (in the form of an increased rate of, or
      a
      different method of calculating, interest or otherwise as such Lender shall
      determine) as shall be required to compensate such Lender for such increased
      costs or reductions in amounts receivable hereunder (a written notice as to
      the
      additional amounts owed to such Lender, showing the basis for the calculation
      thereof, which basis must be reasonable, submitted to the Borrower
      Representative by such Lender shall, absent manifest error, be final and
      conclusive and binding upon all parties hereto) and (z) in the case of clause
      (iii) above, the Borrowers shall take one of the actions specified in
      Section 3.01(b) as promptly as possible and, in any event, within the time
      period required by law.

     

    (b)   At
      any
      time that any Eurodollar Loan is affected by the circumstances described in
      Section 3.01(a)(ii) or (iii), the Borrower Representative may (and in the case
      of a Eurodollar Loan affected pursuant to Section 3.01(a)(iii) the Borrower
      Representative shall) either
      (i) if
      the affected Eurodollar Loan is then being made pursuant to a Borrowing, by
      giving the Administrative Agent telephonic notice (confirmed promptly in
      writing) thereof on the same date that the Borrower Representative was notified
      by a Lender pursuant to Section 3.01(a)(ii) or (iii), cancel said Borrowing,
      or
      convert the related Notice of Borrowing into one requesting a Borrowing of
      Base
      Rate Loans or require the affected Lender to make its requested Loan as a Base
      Rate Loan, or
      (ii)
      if the
      affected Eurodollar Loan is then outstanding, upon at least one Business Day’s
      notice to the Administrative Agent, require the affected Lender to Convert
      each
      such Eurodollar Loan into a Base Rate Loan; provided,
      however,
      that if
      more than one Lender is affected at any time, then all affected Lenders must
      be
      treated the same pursuant to this Section 3.01(b).

     

    (c)   If
      any
      Lender shall have determined that after the Closing Date, the adoption of any
      applicable law, rule or regulation regarding capital adequacy, or any change
      therein, or any change in the interpretation or administration thereof by any
      Governmental Authority, central bank or comparable agency charged by law with
      the interpretation or administration thereof, or compliance by such Lender
      or
      its parent corporation with any request or directive regarding capital adequacy
      (whether or not having the force of law) of any such authority, central bank,
      or
      comparable agency, in each case made subsequent to the Closing Date, has or
      would have the effect of reducing by an amount reasonably deemed by such Lender
      to be material to the rate of return on such Lender’s or its parent
      corporation’s capital or assets as a consequence of such Lender’s commitments or
      obligations hereunder to a level below that which such Lender or its parent
      corporation could have achieved but for such adoption, effectiveness, change
      or
      compliance (taking into consideration such Lender’s or its parent corporation’s
      policies with respect to capital adequacy), then from time to time, within
      15
      days after demand by such Lender (with a copy to the Administrative Agent),
      the
      Borrowers shall pay to such Lender such additional amount or amounts as will
      compensate such Lender or its parent corporation for such reduction. Each
      Lender, upon determining in good faith that any additional amounts will be
      payable pursuant to this Section 3.01(c), will give prompt written notice
      thereof to the Borrower Representative, which notice shall set forth, in
      reasonable detail, the basis of the calculation of such additional amounts,
      which basis must be reasonable, although the failure to give any such notice
      shall not release or diminish any of the Borrowers’ obligations to pay
      additional amounts pursuant to this Section 3.01(c) upon the subsequent receipt
      of such notice.

     

    Section
      3.02     Breakage
      Compensation.
      The
      Borrowers shall compensate each Lender, upon its written request (which request
      shall set forth the detailed basis for requesting and the method of calculating
      such compensation), for all reasonable losses, costs, expenses and liabilities
      (including, without limitation, any loss, cost, expense or liability incurred
      by
      reason of the liquidation or 

     

    
      
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    reemployment
      of deposits or other funds required by such Lender to fund its Eurodollar Loans
      and costs associated with foreign currency hedging obligations incurred by
      such
      Lender in connection with any Eurodollar Loan) which such Lender may sustain
      in
      connection with any of the following:
      (i)
      if for
      any reason (other than a default by such Lender or the Administrative Agent)
      a
      Borrowing of Eurodollar Loans does not occur on a date specified therefor in
      a
      Notice of Borrowing or a Notice of Continuation or Conversion (whether or not
      withdrawn by the Borrower Representative or deemed withdrawn pursuant to Section
      3.01(a));
      (ii)
if
      any
      repayment, prepayment, Conversion or Continuation of any Eurodollar Loan occurs
      on a date that is not the last day of an Interest Period applicable
      thereto;
      (iii)
      if any
      prepayment of any of its Eurodollar Loans is not made on any date specified
      in a
      notice of prepayment given by the Borrower;
      (iv)
      as a
      result of an assignment by a Lender of any Eurodollar Loan other than on the
      last day of the Interest Period applicable thereto pursuant to a request by
      the
      Borrower Representative pursuant to Section 3.05(b); or
      (v)
      as a
      consequence of (y) any other default by the Borrowers to repay or prepay any
      Eurodollar Loans when required by the terms of this Agreement or (z) an
      election made pursuant to Section 3.05(b). The written request of any Lender
      setting forth any amount or amounts that such Lender is entitled to receive
      pursuant to this Section shall be delivered to the Borrower Representative
      and
      shall be conclusive absent manifest error. The Borrowers shall pay such Lender
      the amount shown as due on any such request within 10 days after receipt
      thereof.

     

    Section
      3.03     Net
      Payments.

     

    (a)   Except
      as
      provided for in Section 3.03(b), all payments made by the Borrowers hereunder,
      under any Note or any other Loan Document, including all payments made by the
      Borrowers pursuant to its guaranty obligations under Article X, will be
      made free and clear of, and without deduction or withholding for, any present
      or
      future taxes, levies, imposts, duties, fees, assessments or other charges of
      whatever nature now or hereafter imposed by any jurisdiction or by any political
      subdivision or taxing authority thereof or therein with respect to such payments
      (but excluding, except as provided in this Section 3.03(a), any tax imposed
      on
      or measured by the net income or net profits of a Lender and franchise taxes
      imposed on it pursuant to the laws of the jurisdiction under which such Lender
      is organized or the jurisdiction in which the principal office or Applicable
      Lending Office of such Lender, as applicable, is located or any subdivision
      thereof or therein) and all interest, penalties or similar liabilities with
      respect to such non-excluded taxes, levies imposts, duties, fees, assessments
      or
      other charges (all such non-excluded taxes, levies, imposts, duties, fees,
      assessments or other charges being referred to collectively as “Taxes”).
      If
      any Taxes are so levied or imposed, the Borrowers agree to pay the full amount
      of such Taxes and such additional amounts (including additional amounts to
      compensate for withholding on amounts paid pursuant to this Section 3.03) as
      may
      be necessary so that every payment by it of all amounts due hereunder, under
      any
      Note or under any other Loan Document, after withholding or deduction for or
      on
      account of any Taxes will not be less than the amount provided for herein or
      in
      such Note or in such other Loan Document. The Borrowers will indemnify and
      hold
      harmless the Administrative Agent and each Lender, and reimburse the
      Administrative Agent or such Lender upon its written request, for the amount
      of
      any Taxes imposed on and paid by such Lender. If any amounts are payable in
      respect of Taxes pursuant to this Section 3.03(a), the Borrowers agree to
      reimburse each Lender, upon the written request of such Lender, for taxes
      imposed on or measured by the net income, profits or franchise of such Lender
      pursuant to the laws of the jurisdiction in which such Lender is organized
      or in
      which the principal office or Applicable Lending Office of such Lender is
      located, as the case may be, or under the laws of any political subdivision
      or
      taxing authority therein, and for any withholding of taxes as such Lender shall
      determine are payable by, or withheld from, such Lender in respect of such
      reimbursement of taxes, which request shall be accompanied by a statement from
      such Lender setting forth, in reasonable detail, the computations used in
      determining such amounts. The Borrowers will furnish to the Administrative
      Agent
      within 45 days after the date the payment of any Taxes, or any withholding
      or
      deduction on account thereof, is due pursuant to applicable law certified

     

    
      
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    copies
      of
      tax receipts, or other evidence satisfactory to the respective Lender,
      evidencing such payment by the Borrower. 

     

    (b)   Each
      Lender that is not a United States Person (as such term is defined in Section
      7701(a)(30) of the Code) for federal income tax purposes and that is entitled
      to
      claim an exemption from or reduction in United States withholding tax with
      respect to a payment by Borrowers agree to provide to the Borrower
      Representative and the Administrative Agent on or prior to the Closing Date,
      or
      in the case of a Lender that is an assignee or transferee of an interest under
      this Agreement pursuant to Section 11.06 (unless the respective Lender was
      already a Lender hereunder immediately prior to such assignment or transfer
      and
      such Lender is in compliance with the provisions of this Section), on the date
      of such assignment or transfer to such Lender, and from time to time thereafter
      if required by the Borrower Representative or the Administrative
      Agent two
      accurate and complete original signed copies of Internal Revenue Service Forms
      W-8BEN, W-8ECI, W-8EXP or W-8IMY (or successor, substitute or other appropriate
      forms and, in the case of Form W-8IMY, complete with accompanying Forms W-8BEN
      with respect to beneficial owners of the payment) certifying to such Lender’s
      entitlement to exemption from or a reduced rate of withholding of United States
      withholding tax with respect to payments to be made under this Agreement, any
      Note or any other Loan Document, along with any other appropriate documentation
      establishing such exemption or reduction (such as statements certifying
      qualification for exemption with respect to portfolio interest). In addition,
      each Lender agrees that from time to time after the Closing Date, when a lapse
      in time or change in circumstances renders the previous certification obsolete
      or inaccurate in any material respect, it will deliver to the Borrower
      Representative and the Administrative Agent two new accurate and complete
      original signed copies of the applicable Internal Revenue Service form
      establishing such exemption or reduction (such as statements certifying
      qualification for exemption with respect to portfolio interest) and any related
      documentation as may be required in order to confirm or establish the
      entitlement of such Lender to a continued exemption from or reduction in United
      States withholding tax if the Lender continues to be so entitled. No Lender
      shall be required by this Section 3.03(b) to deliver a form or certificate
      that
      it is not legally entitled to deliver. The Borrowers shall not be obligated
      pursuant to Section 3.03(a) hereof to pay additional amounts on account of
      or
      indemnify with respect to United States withholding taxes to the extent that
      such taxes arise solely due to a Lender's failure to deliver forms that it
      was
      legally entitled to but failed to deliver under this Section 3.03(b). The
      Borrowers agree to pay additional amounts and indemnify each Lender in the
      manner set forth in Section 3.03(a) in respect of any Taxes deducted or withheld
      by it as a result of any changes after the Closing Date in any applicable law,
      treaty, governmental rule, regulation, guideline or order, or in the
      interpretation thereof, relating to the deducting or withholding of income
      or
      similar Taxes.

     

    (c)   If
      any
      Lender, in its sole opinion, determines that it has finally and irrevocably
      received or been granted a refund in respect of any Taxes as to which
      indemnification has been paid by the Borrowers pursuant to this Section 3.03,
      it
      shall promptly remit such refund (including any interest received in respect
      thereof), net of all out-of-pocket costs and expenses to the Borrower;
provided,
      however,
      that the
      Borrowers agree to promptly return any such refund (plus interest) to such
      Lender in the event such Lender is required to repay such refund to the relevant
      taxing authority. Any such Lender shall provide the Borrower Representative
      with
      a copy of any notice of assessment from the relevant taxing authority (redacting
      any unrelated confidential information contained therein) requiring repayment
      of
      such refund. Nothing contained herein shall impose an obligation on any Lender
      to apply for any such refund.

     

    Section
      3.04     Increased
      Costs to LC Issuers.
      If
      after the Closing Date, the adoption of any applicable law, rule or regulation,
      or any change therein, or any change in the interpretation or administration
      thereof by any Governmental Authority, central bank or comparable agency charged
      with the interpretation or administration thereof, or compliance by any LC
      Issuer or any Lender with any request or directive (whether or not having the
      force of law) by any such authority, central bank or 

     

    
      
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    comparable
      agency (in each case made subsequent to the Closing Date) shall either (i)
      impose, modify or make applicable any reserve, deposit, capital adequacy or
      similar requirement against Letters of Credit issued by such LC Issuer or such
      Lender’s participation therein, or (ii) impose on such LC Issuer or any Lender
      any other conditions affecting this Agreement, any Letter of Credit or such
      Lender’s participation therein; and the result of any of the foregoing is to
      increase the cost to such LC Issuer or such Lender of issuing, maintaining
      or
      participating in any Letter of Credit, or to reduce the amount of any sum
      received or receivable by such LC Issuer or such Lender hereunder (other than
      any increased cost or reduction in the amount received or receivable resulting
      from the imposition of or a change in the rate of taxes or similar charges),
      then, upon demand to the Borrower Representative by such LC Issuer or such
      Lender (a copy of which notice shall be sent by such LC Issuer or such Lender
      to
      the Administrative Agent), the Borrowers shall pay to such LC Issuer or such
      Lender such additional amount or amounts as will compensate any such LC Issuer
      or such Lender for such increased cost or reduction. A certificate submitted
      to
      the Borrower Representative by any LC Issuer or any Lender, as the case may
      be
      (a copy of which certificate shall be sent by such LC Issuer or such Lender
      to
      the Administrative Agent), setting forth, in reasonable detail, the basis for
      the determination of such additional amount or amounts necessary to compensate
      any LC Issuer or such Lender as aforesaid shall be conclusive and binding on
      the
      Borrowers absent manifest error, although the failure to deliver any such
      certificate shall not release or diminish the Borrowers’ obligations to pay
      additional amounts pursuant to this Section 3.04. 

     

    Section
      3.05     Change
      of Lending Office; Replacement of Lenders. 

     

    (a)   Each
      Lender agrees that, upon the occurrence of any event giving rise to the
      operation of Sections 3.01(a)(ii) or (iii), 3.01(c), 3.03 or 3.04 requiring
      the
      payment of additional amounts to the Lender, such Lender will, if requested
      by
      the Borrower Representative, use reasonable efforts (subject to overall policy
      considerations of such Lender) to designate another Applicable Lending Office
      for any Loans or Commitments affected by such event; provided,
      however,
      that
      such designation is made on such terms that such Lender and its Applicable
      Lending Office suffer no economic, legal or regulatory disadvantage, with the
      object of avoiding the consequence of the event giving rise to the operation
      of
      any such Section.

     

    (b)   If
      (i) any Lender requests any compensation, reimbursement or other payment
      under Sections 3.01(a)(ii) or (iii), 3.01(c) or 3.04 with respect to such
      Lender, or (ii) the Borrowers are required to pay any additional amount to
      any Lender or Governmental Authority pursuant to Section 3.03, then the
      Borrowers may, at their sole expense and effort, upon notice to such Lender
      and
      the Administrative Agent, require such Lender to assign and delegate, without
      recourse (in accordance with the restrictions contained in Section 11.06(c)),
      all its interests, rights and obligations under this Agreement to an Eligible
      Assignee that shall assume such obligations; provided,
      however,
      that
      (1) the
      Borrower Representative shall have received the prior written consent of the
      Administrative Agent, which consent shall not be unreasonably withheld or
      delayed,
      (2)
      such
      Lender shall have received payment of an amount equal to the outstanding
      principal of its Loans, accrued interest thereon, accrued fees and all other
      amounts payable to it hereunder, from the assignee (to the extent of such
      outstanding principal and accrued interest and fees) or the Borrowers (in the
      case of all other amounts, including any breakage compensation under Section
      3.02 hereof), and
      (3)
      in the
      case of any such assignment resulting from a claim for compensation,
      reimbursement or other payments required to be made under Section 3.01(a)(ii)
      or
      (iii), Section 3.01(c) or Section 3.04 with respect to such Lender, or resulting
      from any required payments to any Lender or Governmental Authority pursuant
      to
      Section 3.03, such assignment will result in a reduction in such compensation,
      reimbursement or payments. A Lender shall not be required to make any such
      assignment and delegation if, prior thereto, as a result of a waiver by such
      Lender or otherwise, the circumstances entitling the Borrowers to require such
      assignment and delegation cease to apply.

     

    
      
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    (c)   Nothing
      in this Section 3.05 shall affect or postpone any of the obligations of the
      Borrowers or the right of any Lender provided in Sections 3.01, 3.03 or
      3.04.

     

     

    ARTICLE
      IV.

     

    CONDITIONS
      PRECEDENT

     

    Section
      4.01     Conditions
      Precedent at Closing Date.
      The
      obligation of the Lenders to make Loans, and of any LC Issuer to issue Letters
      of Credit, is subject to the satisfaction of each of the following conditions
      on
      or prior to the Closing Date:

     

    (i)   Credit
      Agreement.
      This
      Agreement shall have been executed by the Borrowers, the Administrative Agent,
      each LC Issuer and each of the Lenders.

     

    (ii)   Notes.
      The
      Borrowers shall have executed and delivered to the Administrative Agent the
      appropriate Note or Notes for the account of each Lender that has requested
      the
      same.

     

    (iii)   Subsidiary
      Guaranty.
      The
      Subsidiary Guarantors shall have duly executed and delivered a Guaranty of
      Payment (the “Subsidiary
      Guaranty”),
      substantially in the form attached hereto as Exhibit
      C-1. 

     

    (iv)   Security
      Agreement.
      The
      Borrowers and each Subsidiary Guarantor shall have duly executed and delivered
      a
      Pledge and Security Agreement (the
      “Security
      Agreement”),
      substantially in the form attached hereto as Exhibit
      C-2,
      and
      shall have executed and delivered all of the following in connection therewith,
      each of which shall be in form and substance satisfactory to the Administrative
      Agent: (A) the Control Agreements required pursuant to the terms of the Security
      Agreement, duly executed by the appropriate depositary institution, securities
      intermediary or issuer as the case may be, (B) the Collateral Assignment
      Agreements required pursuant to the terms of the Security Agreement, and (C)
      a
      Perfection Certificate.

     

    (v)   Closing
      Date Mortgages.
      Each
      Loan Party, as appropriate, shall have (A) executed and delivered to the
      Administrative Agent a Mortgage, in form and substance satisfactory to the
      Administrative Agent, with respect to each Mortgaged Real Property of such
      Loan
      Party owned or leased as of the Closing Date, and (B) provided to the
      Administrative Agent all of the other items required to be provided with respect
      to each such Mortgaged Real Property pursuant to Section 6.10(c), each of which
      shall be in form and substance satisfactory to the Administrative
      Agent.

     

    (vi)   Fees
      and Fee Letters.
      The
Borrowers
      shall
      have (A) paid to the Administrative Agent, for its own account, the fees
      required to be paid by them on the Closing Date pursuant to the Confidential
      Fee
      Letter, (B) executed and delivered to the Administrative Agent the Closing
      Fee
      Letter and shall have paid to the Administrative Agent, for the benefit of
      the
      Lenders, the fees required to be paid therein, and (C) paid or caused to be
      paid
      all reasonable fees and expenses of the Administrative Agent and of special
      counsel to the Administrative Agent that have been invoiced on or prior to
      the
      Closing Date in connection with the preparation, execution and delivery of
      this
      Agreement and the other Loan Documents and the consummation of the transactions
      contemplated hereby and thereby.

     

    (vii)   Resolutions
      and Approvals.
      The
      Administrative Agent shall have received certified copies of the resolutions
      of
      the Board of Directors or other approving body of the Borrowers
      and
      each
      Subsidiary Guarantor approving the Loan Documents to which the 

     

    
      
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    Borrowers
      or
      any
      such Subsidiary Guarantor, as the case may be, are or may become a party, and
      of
      all documents evidencing other necessary corporate action and governmental
      approvals, if any, with respect to the execution, delivery and performance
      by
      the Borrowers or any such Subsidiary Guarantor of the Loan Documents to which
      it
      is or may become a party.

     

    (viii)   Incumbency
      Certificates.
      The
      Administrative Agent shall have received a certificate of the Secretary or
      an
      Assistant Secretary of each Borrower and of each Subsidiary Guarantor certifying
      the names and true signatures of the officers of such Borrower or such
      Subsidiary Guarantor, as the case may be, authorized to sign the Loan Documents
      to which such Borrower or such Subsidiary Guarantor is a party and any other
      documents to which such Borrower or any such other Subsidiary Guarantor is
      a
      party that may be executed and delivered in connection herewith.

     

    (ix)   Opinions
      of Counsel.
      The
      Administrative Agent shall have received such opinions of counsel from counsel
      to the Borrowers and the Subsidiary Guarantors as the Administrative Agent
      shall
      request, each of which shall be addressed to the Administrative Agent and each
      of the Lenders and dated the Closing Date and in form and substance reasonably
      satisfactory to the Administrative Agent.

     

    (x)   Recordation
      of Security Documents, Delivery of Collateral, Taxes, etc.
      The
      Security Documents (or proper notices or UCC financing statements in respect
      thereof) shall have been duly recorded, published and filed in such manner
      and
      in such places as is required by law to establish, perfect, preserve and protect
      the rights, Liens and security interests of the parties thereto and their
      respective successors and assigns, all Collateral items required to be
      physically delivered to the Administrative Agent thereunder shall have been
      so
      delivered, accompanied by any appropriate instruments of transfer, and all
      taxes, fees and other charges then due and payable in connection with the
      execution, delivery, recording, publishing and filing of such instruments and
      the issuance of the Obligations and the delivery of the Notes shall have been
      paid in full.

     

    (xi)   Evidence
      of Insurance.
      The
      Administrative Agent shall have received certificates of insurance and other
      evidence, satisfactory to it, of compliance with the insurance requirements
      of
      this Agreement and the Security Documents.

     

    (xii)   Search
      Reports.
      The
      Administrative Agent shall have received the results of UCC and other search
      reports from one or more commercial search firms acceptable to the
      Administrative Agent, listing all of the effective financing statements filed
      against any Loan Party, together with copies of such financing
      statements.

     

    (xiii)   Corporate
      Charter, Partnership Agreement and Good Standing Certificates.
      The
      Administrative Agent shall have received: (A) an original certified copy of
      the
      Certificate or Articles of Incorporation or equivalent formation document of
      each Loan Party and any and all amendments and restatements thereof, certified
      as of a recent date by the relevant Secretary of State; (B) an original good
      standing certificate from the Secretary of State of the state of incorporation,
      dated as of a recent date, listing all charter documents affecting such Loan
      Party and certifying as to the good standing of such Loan Party; and (C)
      original certificates of good standing from each other jurisdiction in which
      each Loan Party is authorized or qualified to do business.

     

    (xiv)   Closing
      Certificate.
      The
      Administrative Agent shall have received a certificate substantially in the
      form
      of Exhibit
      E
      hereto,
      dated the Closing Date, of an Authorized Officer to the effect that, at and
      as
      of the Closing Date and both before and after giving effect to the initial
      

     

    
      
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    Borrowings
      hereunder and the application of the proceeds thereof: (A) no Default or Event
      of Default has occurred or is continuing; and (B) all representations and
      warranties of the Loan Parties contained herein or in the other Loan Documents
      are true and correct in all material respects as of the Closing
      Date.

     

    (xv)   Solvency
      Certificate.
      The
      Administrative Agent shall have received a solvency certificate substantially
      in
      the form attached hereto as Exhibit
      F,
      dated
      as of the Closing Date, and executed by the Chief Financial Officer of the
      Borrower Representative.

     

    (xvi)   Repayment
      of Existing Indebtedness.
      The
      Administrative Agent shall have received a fully executed payoff letter
      satisfactory to the Administrative Agent confirming that all obligations under
      the Existing Credit Agreement will be repaid in full from the proceeds of the
      initial extension of credit, all Liens upon any of the property of the Loan
      Parties constituting Collateral will be terminated immediately upon such payment
      and all letters of credit issued or guaranteed under the Existing Credit
      Agreement shall have been cash collateralized or supported by a Letter of Credit
      as mutually agreed upon by the Administrative Agent, the Borrowers and the
      lenders under the Existing Credit Agreement; and the Loan Parties shall have
      delivered UCC termination statements with respect to any filings against the
      Collateral as may be requested by the Administrative Agent and shall have
      authorized the filing of such termination statements or amendments.

     

    (xvii)   Proceedings
      and Documents.
      All
      corporate and other proceedings and all documents incidental to the transactions
      contemplated hereby (including, but not limited to, the Preferred Stock
      Transaction) shall be satisfactory in substance and form to the Administrative
      Agent and the Lenders and the Administrative Agent and its special counsel
      and
      the Lenders shall have received all such counterpart originals or certified
      or
      other copies of such documents as the Administrative Agent or its special
      counsel or any Lender may reasonably request.

     

    (xviii)  Approvals,
      etc. The
      Administrative Agent shall have received evidence that all necessary consents,
      permits, licenses and approvals (governmental or otherwise) required for the
      execution, delivery and performance by each Loan Party of the Loan Documents
      and
      the Preferred Stock Transaction have been duly obtained and are in full force
      and effect.

     

    (xix)
        Absence
      of Litigation. 
      There
      shall not be any action, suits or proceedings pending or threatened with respect
      to any Loan Party or its Subsidiaries (other than in the case of subclause
      (i),
      the Varco Indemnification Claims) (i) that have, or could reasonably be expected
      to have, a Material Adverse Effect, or (ii) that question the validity or
      enforceability of any of the Loan Documents, or of any action to be taken by
      the
      Borrowers or any of the other Loan Parties pursuant to any of the Loan
      Documents.

     

    (xx)   No
      Material Adverse Change.
      There
      shall not have occurred a change in the business, assets, properties,
      liabilities (actual or contingent), operations, condition (financial or
      otherwise) or prospects of the Borrowers and its Subsidiaries since September
      30, 2005 that could reasonably be expected to have a Material Adverse
      Effect.

     

    (xxi)   Miscellaneous.
      The
      Loan Parties shall have provided to the Administrative Agent and the Lenders
      such other items and shall have satisfied such other conditions as may be
      reasonably required by the Administrative Agent or the Lenders.

     

    
      
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    Section
      4.02     Conditions
      Precedent to All Credit Events.
      The
      obligations of the Lenders and each LC Issuer to make or participate in each
      Credit Event is subject, at the time thereof, to the satisfaction of the
      following conditions:

     

    (a)   Notice.
      The
      Administrative Agent (and in the case of subpart (iii) below, the applicable
      LC
      Issuer) shall have received, as applicable, (i) a Notice of Borrowing meeting
      the requirements of Section 2.06(b) with respect to any Borrowing (other than
      a
      Continuation or Conversion), (ii) a Notice of Continuation or Conversion meeting
      the requirements of Section 2.10(b) with respect to a Continuation or
      Conversion, or (iii) an LC Request meeting the requirements of Section 2.05(b)
      with respect to each LC Issuance.

     

    (b)   No
      Default; Representations and Warranties.
      At the
      time of each Credit Event and also after giving effect thereto,
      (i)
      there
      shall exist no Default or Event of Default and
      (ii)
      all
      representations and warranties of the Loan Parties contained herein or in the
      other Loan Documents shall be true and correct in all material respects with
      the
      same effect as though such representations and warranties had been made on
      and
      as of the date of such Credit Event, except to the extent that such
      representations and warranties expressly relate to an earlier specified date,
      in
      which case such representations and warranties shall have been true and correct
      in all material respects as of the date when made. 

     

    The
      acceptance of the benefits of each Credit Event shall constitute a
      representation and warranty by the Borrowers to the Administrative Agent, each
      LC Issuer and each of the Lenders that all of the applicable conditions
      specified in Section 4.01 and Section 4.02 have been satisfied as of the times
      referred to in such Sections.

     

     

    ARTICLE
      V.

     

    REPRESENTATIONS
      AND WARRANTIES

     

    In
      order
      to induce the Administrative Agent, the Lenders and each LC Issuer to enter
      into
      this Agreement and to make the Loans and to issue and to participate in the
      Letters of Credit provided for herein, the Borrowers make the following
      representations and warranties to, and agreements with, the Administrative
      Agent, the Lenders and each LC Issuer, all of which shall survive the execution
      and delivery of this Agreement and each Credit Event:

     

    Section
      5.01     Corporate
      Status.
      Each
      Borrower and each of their respective Subsidiaries
      (i)
      is a
      duly organized or formed and validly existing corporation, partnership or
      limited liability company, as the case may be, in good standing or in full
      force
      and effect under the laws of the jurisdiction of its formation and has the
      corporate, partnership or limited liability company power and authority, as
      applicable, to own its property and assets and to transact the business in
      which
      it is engaged and presently proposes to engage, and
      (ii)
      has duly
      qualified and is authorized to do business in all jurisdictions where it is
      required to be so qualified or authorized except where the failure to be so
      qualified would not have a Material Adverse Effect. Schedule
      5.01
      hereto
      lists, as of the Closing Date, each Subsidiary (and the direct and indirect
      ownership interest of the Borrowers therein).

     

    Section
      5.02     Power
      and Authority.
      Each
      Loan Party has the corporate or other organizational power and authority to
      execute, deliver and carry out the terms and provisions of the Loan Documents
      to
      which it is party and has taken all necessary corporate or other organizational
      action to authorize the execution, delivery and performance of the Loan
      Documents to which it is party. Each Loan Party has duly executed and delivered
      each Loan Document to which it is party and each Loan Document to which it
      is
      party constitutes the legal, valid and binding agreement and obligation of
      such
      Loan Party enforceable in accordance with its terms, except to the extent that
      the enforceability thereof 

     

    
      
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    may
      be
      limited by applicable bankruptcy, insolvency, reorganization, moratorium or
      other similar laws generally affecting creditors’ rights and by equitable
      principles (regardless of whether enforcement is sought in equity or at
      law).

     

    Section
      5.03     No
      Violation.
      Neither
      the execution, delivery and performance by any Loan Party of the Loan Documents
      to which it is party nor compliance with the terms and provisions
      thereof
      (i)
      will
      contravene any provision of any law, statute, rule, regulation, order, writ,
      injunction or decree of any Governmental Authority applicable to such Loan
      Party
      or its properties and assets,
      (ii) will
      conflict with or result in any breach of, any of the terms, covenants,
      conditions or provisions of, or constitute a default under, or result in the
      creation or imposition of (or the obligation to create or impose) any Lien
      (other than the Liens created pursuant to the Security Documents) upon any
      of
      the property or assets of such Loan Party pursuant to the terms of any
      promissory note, bond, debenture, indenture, mortgage, deed of trust, credit
      or
      loan agreement, or any other agreement or other instrument, to which such Loan
      Party is a party or by which it or any of its property or assets are bound
      or to
      which it may be subject, other than when consent has been obtained,
      or
      (iii)
      will
      violate any provision of the Organizational Documents of such Loan
      Party.

     

    Section
      5.04     Governmental
      Approvals.
      No
      order, consent, approval, license, authorization, or validation of, or filing,
      recording or registration with, or exemption by, any Governmental Authority
      is
      required to authorize or is required as a condition to (i) the execution,
      delivery and performance by any Loan Party of any Loan Document to which it
      is a
      party or any of its obligations thereunder, or (ii) the legality, validity,
      binding effect or enforceability of any Loan Document to which any Loan Party
      is
      a party, except
      the
      filing and recording of financing statements and other documents necessary
      in
      order to perfect the Liens created by the Security Documents.

     

    Section
      5.05     Litigation.
      There
      are no actions, suits or proceedings pending or, to the knowledge of the
      Borrowers, threatened with respect to the Borrowers or any of their
      Subsidiaries
      (i)
      that
      have had, or could reasonably be expected to have, a Material Adverse Effect,
      except for the Varco Indemnification Claims, or
      (ii)
      that
      question the validity or enforceability of any of the Loan Documents, or of
      any
      action to be taken by any Borrower or any of the other Loan Parties pursuant
      to
      any of the Loan Documents.

     

    Section
      5.06     Use
      of
      Proceeds; Margin Regulations.

     

    (a)   The
      proceeds of all Revolving Loans and LC Issuances shall be utilized to refinance
      existing senior debt facilities, provide working capital and funds for general
      corporate purposes, in each case, not inconsistent with the terms of this
      Agreement. The proceeds of all Term Loans shall be utilized to provide funds
      for
      the Preferred Stock Transaction. 

     

    (b)   No
      part
      of the proceeds of any Credit Event will be used directly or indirectly to
      purchase or carry Margin Stock, or to extend credit to others for the purpose
      of
      purchasing or carrying any Margin Stock, in violation of any of the provisions
      of Regulations U or X of the Board of Governors of the Federal Reserve System.
      No Borrower is engaged in the business of extending credit for the purpose
      of
      purchasing or carrying any Margin Stock. At no time would more than 25% of
      the
      value of the assets of the Borrowers or of the Borrowers and their consolidated
      Subsidiaries that are subject to any “arrangement” (as such term is used in
      Section 221.2(g) of such Regulation U) hereunder be represented by Margin
      Stock.

     

    Section
      5.07   Financial
      Statements.
      The
      Borrower Representative has furnished to the Lenders and the Administrative
      Agent complete and correct copies of
      (i)
      the
      audited consolidated balance sheets of the Borrowers and their consolidated
      Subsidiaries as of September 30, 2005 and the related 

     

    
      
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    audited
      consolidated statements of income, shareholders’ equity, and cash flows of the
      Borrowers and their consolidated subsidiaries for the fiscal years then ended,
      accompanied by the report thereon of PricewaterhouseCoopers LLP; and
      (ii)
      the
      consolidated balance sheets of the Borrowers and their consolidated Subsidiaries
      as of June 30, 2006 and the related consolidated statements of income and
      of cash flows of the Borrowers and their consolidated Subsidiaries for the
      fiscal period then ended, as included in ICO’s Report on Form 10-Q for the
      fiscal quarter ended June 30, 2006, filed with the SEC. All such financial
      statements have been prepared in accordance with GAAP, consistently applied
      (except as stated therein), and fairly present in all material respects the
      financial position of the entities described in such financial statements as
      of
      the respective dates indicated and the consolidated results of their operations
      and cash flows for the respective periods indicated, subject in the case of
      any
      such financial statements that are unaudited, to normal audit adjustments,
      none
      of which will involve a Material Adverse Effect. The Borrowers and their
      Subsidiaries did not have, as of the date of the latest financial statements
      referred to above, and will not have as of the Closing Date after giving effect
      to the incurrence of Loans hereunder, any material or significant contingent
      liability or liability for taxes, long-term lease or unusual forward or
      long-term commitment that is not reflected in the foregoing financial statements
      or the notes thereto in accordance with GAAP and that in any such case is
      material in relation to the business, operations, properties, assets, financial
      or other condition or prospects of the Borrowers or any of their Subsidiaries.
      

     

    Section
      5.08     Solvency.
      The
      Borrowers have received consideration that is the reasonable equivalent value
      of
      the obligations and liabilities that the Borrowers have incurred to the
      Administrative Agent, each LC Issuer and the Lenders under the Loan Documents.
      The Borrowers now have capital sufficient to carry on their business and
      transactions and all business and transactions in which it is about to engage
      and is now solvent and able to pay their debts as they mature and the Borrowers,
      as of the Closing Date, owns property having a value, both at fair valuation
      and
      at present fair salable value, greater than the amount required to pay the
      Borrowers’ debts; and the Borrowers are not entering into the Loan Documents
      with the intent to hinder, delay or defraud their creditors. For purposes of
      this Section, “debt”
means
      any liability on a claim, and “claim”
means
      (y) right to payment whether or not such a right is reduced to judgment,
      liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed,
      undisputed, legal, equitable, secured or unsecured; or (z) right to an equitable
      remedy for breach of performance if such breach gives rise to a payment, whether
      or not such right to an equitable remedy is reduced to judgment, fixed,
      contingent, matured, unmatured, disputed, undisputed, secured or
      unsecured.

     

    Section
      5.09    No
      Material Adverse Change.
      Since
      September 30, 2005, there has been no change in the financial or other
      condition, business, affairs or prospects of the Borrowers and their
      Subsidiaries taken as a whole, or their properties and assets considered as
      an
      entirety, except
      for changes
      none of which, individually or in the aggregate, has had or could reasonably
      be
      expected to have, a Material Adverse Effect.

     

    Section
      5.10     Tax
      Returns and Payments.
      Each of
      the Borrowers and their Subsidiaries have filed all federal income tax returns
      and all other tax returns, domestic and foreign, required to be filed by it
      and
      has paid all taxes and assessments payable by it that have become due, other
      than those not yet delinquent and except for those contested in good faith.
      Each
      of the Borrowers and their Subsidiaries have established on its books such
      charges, accruals and reserves in respect of taxes, assessments, fees and other
      governmental charges for all fiscal periods as are required by GAAP. Neither
      the
      Borrowers nor any of their Subsidiaries know of any proposed assessment for
      additional federal, foreign or state taxes for any period, or of any basis
      therefor, which, individually or in the aggregate, taking into account such
      charges, accruals and reserves in respect thereof as the Borrowers and their
      Subsidiaries have made, could reasonably be expected to have a Material Adverse
      Effect.

     

    
      
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    Section
      5.11     Title
      to Properties, etc.
      Each of
      the Borrowers and their Subsidiaries has good and marketable title, in the
      case
      of Real Property, and good title (or valid Leaseholds, in the case of any leased
      property), in the case of all other property, to all of its properties and
      assets free and clear of Liens other than Permitted Liens. The interests of
      the
      Borrowers and their Subsidiaries in the properties reflected in the most recent
      balance sheet referred to in Section 5.07, taken as a whole, were sufficient,
      in
      the judgment of the Borrowers, as of the date of such balance sheet for purposes
      of the ownership and operation of the businesses conducted by the Borrowers
      and
      their Subsidiaries.

     

    Section
      5.12     Lawful
      Operations, etc.
      Each of
      the Borrowers and their Subsidiaries: (i)
      holds
      all necessary foreign, federal, state, local and other governmental licenses,
      registrations, certifications, permits and authorizations necessary to conduct
      its business, except to the extent the failure to so hold could not reasonably
      be expected to have a Material Adverse Effect;
      and
      (ii)
      is in
      full compliance with all requirements imposed by law, regulation or rule,
      whether foreign, federal, state or local, that are applicable to it, its
      operations, or its properties and assets, including, without limitation,
      applicable requirements of Environmental Laws, except
      for any
      failure to obtain and maintain in effect, or noncompliance that, individually
      or
      in the aggregate, could not reasonably be expected to have a Material Adverse
      Effect.

     

    Section
      5.13     Environmental
      Matters.
      

     

    (a)   Except
      in
      connection with the Varco Indemnification Claims, each of the Borrowers and
      their Subsidiaries is in compliance with all Environmental Laws, except to
      the
      extent that any such failure to comply (together with any resulting penalties,
      fines or forfeitures) would not reasonably be expected to have a Material
      Adverse Effect. All licenses, permits, registrations or approvals required
      for
      the conduct of the business of the Borrowers and their Subsidiaries under any
      Environmental Law have been secured and the Borrowers and their Subsidiaries
      is
      in substantial compliance therewith, except for such licenses, permits,
      registrations or approvals the failure to secure or to comply therewith is
      not
      reasonably likely to have a Material Adverse Effect. Neither the Borrowers
      nor
      any of their Subsidiaries have received written notice, or otherwise knows,
      that
      it is in any respect in noncompliance with, breach of or default under any
      applicable writ, order, judgment, injunction, or decree to which such Borrower
      or such Subsidiary is a party or that would affect the ability of such Borrower
      or such Subsidiary to operate any Real Property and no event has occurred and
      is
      continuing that, with the passage of time or the giving of notice or both,
      would
      constitute noncompliance, breach of or default thereunder, except in each such
      case, such noncompliance, breaches or defaults as would not reasonably be
      expected to, in the aggregate, have a Material Adverse Effect. Except in
      connection with the Varco Indemnification Claims, there are no Environmental
      Claims pending or, to the best knowledge of any Borrower, threatened wherein
      an
      unfavorable decision, ruling or finding in connection therewith would reasonably
      be expected to have a Material Adverse Effect. Except in connection with the
      Varco Indemnification Claims, there are no facts, circumstances, conditions
      or
      occurrences on any Real Property now or at any time owned, leased or operated
      by
      the Borrowers or any of their Subsidiaries or on any property adjacent to any
      such Real Property, that are known by the Borrowers or as to which the Borrowers
      or any such Subsidiary has received written notice, that could reasonably be
      expected: (i)
      to form
      the basis of an Environmental Claim against the Borrowers or any of their
      Subsidiaries or any Real Property of the Borrowers or any of their Subsidiaries;
      or
      (ii)
      to cause
      such Real Property to be subject to any restrictions on the ownership,
      occupancy, use or transferability of such Real Property under any Environmental
      Law, except in each such case, such Environmental Claims or restrictions that
      individually or in the aggregate could not reasonably be expected to have a
      Material Adverse Effect.

     

    (b)   Hazardous
      Materials have not at any time been
      (i)
      generated, used, treated or stored on, or transported to or from, any Real
      Property of the Borrowers or any of their Subsidiaries or
      (ii)
      released

     

    
      
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    on
      any
      such Real Property, in each case where such occurrence or event is not in
      compliance with Environmental Laws and is reasonably likely to have a Material
      Adverse Effect.

     

    Section
      5.14     Compliance
      with ERISA.
      Compliance by the Borrowers with the provisions hereof and Credit Events
      contemplated hereby will not involve any prohibited transaction within the
      meaning of ERISA or Section 4975 of the Code. The Borrowers and their
      Subsidiaries
      (i)
      have
      fulfilled all obligations under minimum funding standards of ERISA and the
      Code
      with respect to each Plan that is not a Multi-Employer Plan or a Multiple
      Employer Plan,
      (ii)
      have
      satisfied all respective contribution obligations in respect of each
      Multi-Employer Plan and each Multiple Employer Plan,
      (iii)
      are in
      compliance in all material respects with all other applicable provisions of
      ERISA and the Code with respect to each Plan, each Multi-Employer Plan and
      each
      Multiple Employer Plan, and
      (iv)
      have not
      incurred any liability under the Title IV of ERISA to the PBGC with respect
      to
      any Plan, any Multi-Employer Plan, any Multiple Employer Plan, or any trust
      established thereunder. No Plan or trust created thereunder has been terminated,
      and there have been no Reportable Events, with respect to any Plan or trust
      created thereunder or with respect to any Multi-Employer Plan or Multiple
      Employer Plan, which termination or Reportable Event will or could result in
      the
      termination of such Plan, Multi-Employer Plan or Multiple Employer Plan and
      give
      rise to a material liability of the Borrower or any ERISA Affiliate in respect
      thereof. No Borrower or any ERISA Affiliate is at the date hereof, or has been
      at any time within the two years preceding the date hereof, an employer required
      to contribute to any Multi-Employer Plan or Multiple Employer Plan, or a
“contributing sponsor” (as such term is defined in Section 4001 of ERISA) in any
      Multi-Employer Plan or Multiple Employer Plan. No Borrower or any ERISA
      Affiliate has any contingent liability with respect to any post-retirement
      “welfare benefit plan” (as such term is defined in ERISA), except as has been
      disclosed to the Lenders in writing.

     

    Section
      5.15     Intellectual
      Property, etc.
      The
      Borrowers and their Subsidiaries have obtained or have the right to use all
      material patents, trademarks, service marks, trade names, copyrights, licenses
      and other rights with respect to the foregoing necessary for the present and
      planned future conduct of its business, without any known conflict with the
      rights of others, except
      for such
      patents, trademarks, service marks, trade names, copyrights, licenses and
      rights, the loss of which, and such conflicts which, in any such case
      individually or in the aggregate could not reasonably be expected to have a
      Material Adverse Effect.

     

    Section
      5.16     Investment
      Company Act, etc.
      Neither
      the Borrowers nor any of their Subsidiaries are subject to regulation with
      respect to the creation or incurrence of Indebtedness under the Investment
      Company Act of 1940, as amended, the Interstate Commerce Act, as amended, the
      Federal Power Act, as amended, the Energy Policy Act of 2005, as amended, or
      any
      applicable state public utility law.

     

    Section
      5.17     Insurance.
      The
      Borrowers and their Subsidiaries maintain insurance coverage by such insurers
      and in such forms and amounts and against such risks as are generally consistent
      with industry standards and in each case in compliance with the terms of the
      Loan Documents.

     

    Section
      5.18     Burdensome
      Contracts; Labor Relations.
      Neither
      the Borrowers nor any of their Subsidiaries
      (a)
      are
      subject to any burdensome contract, agreement, corporate restriction, judgment,
      decree or order,
      (b)
      are a
      party to any labor dispute affecting any bargaining unit or other group of
      employees generally,
      (c)
      are
      subject to any strike, slowdown, walk out or other concerted interruptions
      of
      operations by employees of any Borrower or any Subsidiary, whether or not
      relating to any labor contracts,
      (d)
      are
      subject to any pending or, to the knowledge of the Borrowers, threatened, unfair
      labor practice complaint, before the National Labor Relations Board,
(e)
      are
      subject to any pending or, to the knowledge of the Borrowers, threatened
      grievance or arbitration proceeding arising out of or under any collective
      bargaining agreement,
      (f)
      are
      subject to any significant pending or, to the knowledge of the 

     

    
      
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    Borrowers,
      threatened strike, labor dispute, slowdown or stoppage, or
      (g)
      are, to
      the knowledge of the Borrowers, involved or subject to any union representation
      organizing or certification matter with respect to the employees of the
      Borrowers or any of their Subsidiaries, except
      (with
      respect to any matter specified in any of the above clauses) for such matters
      as, individually or in the aggregate, could not reasonably be expected to have
      a
      Material Adverse Effect.

     

    Section
      5.19     Security
      Interests.
      Once
      executed and delivered, each of the Security Documents creates, as security
      for
      the Secured Obligations (as defined in the Security Agreement), a valid and
      enforceable, and upon making the filings and recordings referenced in the next
      sentence, perfected security interest in and Lien on all of the Collateral
      subject thereto from time to time, in favor of the Administrative Agent for
      the
      benefit of the Secured Creditors, superior to and prior to the rights of all
      third persons and subject to no other Liens, except
      that the
      Collateral under the Security Documents may be subject to Permitted Liens.
      No
      filings or recordings are required in order to perfect the security interests
      created under any Security Document, except for filings or recordings required
      in connection with any such Security Document that shall have been made, or
      for
      which satisfactory arrangements have been made, upon or prior to the execution
      and delivery thereof. All recording, stamp, intangible or other similar taxes
      required to be paid by any Person under applicable legal requirements or other
      laws applicable to the property encumbered by the Security Documents in
      connection with the execution, delivery, recordation, filing, registration,
      perfection or enforcement thereof have been paid.

     

    Section
      5.20    True
      and Complete Disclosure.
      All
      factual information (taken as a whole) heretofore or contemporaneously furnished
      by or on behalf of the Borrowers or any of their Subsidiaries in writing to
      the
      Administrative Agent or any Lender for purposes of or in connection with this
      Agreement or any transaction contemplated herein, is, and all other such factual
      information (taken as a whole) hereafter furnished by or on behalf of such
      Person in writing to the Administrative Agent or any Lender will be, true and
      accurate in all material respects on the date as of which such information
      is
      dated or certified and not incomplete by omitting to state any material fact
      necessary to make such information (taken as a whole) not misleading at such
      time in light of the circumstances under which such information was provided,
      except that any such future information consisting of financial projections
      prepared by the Borrowers or any of their Subsidiaries is only represented
      herein as being based on good faith estimates and assumptions believed by such
      persons to be reasonable at the time made, it being recognized by the Lenders
      that such projections as to future events are not to be viewed as facts and
      that
      actual results during the period or periods covered by any such projections
      may
      differ materially from the projected results.

     

    Section
      5.21     Defaults.
      No
      Default or Event of Default exists as of the Closing Date hereunder, nor will
      any Default or Event of Default begin to exist immediately after the execution
      and delivery hereof.

     

    Section
      5.22     Anti-Terrorism
      Law Compliance.
      Neither
      the Borrowers nor any of their Subsidiaries are subject to or in violation
      of
      any law, regulation, or list of any government agency (including, without
      limitation, the U.S. Office of Foreign Asset Control list, Executive Order
      No. 13224 or the USA Patriot Act) that prohibits or limits the conduct of
      business with or the receiving of funds, goods or services to or for the benefit
      of certain Persons specified therein or that prohibits or limits any Lender
      or
      LC Issuer from making any advance or extension of credit to the Borrower or
      from
      otherwise conducting business with the Borrower.

     

    Section
      5.23    Mexico
      Subsidiary; ICO Minerals, Inc.; RE Holdings Entities.

     

    (a)   The
      Mexico Subsidiary does not conduct business and, to the extent that the Mexico
      Subsidiary owns any assets, such assets have a fair market value of no more
      than
      $5,000.

     

    
      
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    (b)   ICO
      Minerals does not conduct business and, to the extent ICO Minerals owns any
      assets, such assets have a fair market value of no more than $5,000. ICO
      Minerals will be dissolved or merged into a Loan Party no later than 90 days
      following the Closing Date.

     

    (c)   The
      only
      assets owned by the RE Holdings Entities are the Real Properties located at
      1300
      McCabe Road, LaPorte, Texas; 10820 Hemlock Avenue, Fontana, California; 4404
      Euclid Avenue, East Chicago, Indiana; Route 173, 2 Vliet Farm Road, Asbury,
      New
      Jersey; 706 W. Madison Street, Grand Junction, Tennessee; and 16646 Old Nome
      Road, China, Texas. No assets are leased by the RE Holdings
      Entities.

     

     

    ARTICLE
      VI.

     

    AFFIRMATIVE
      COVENANTS

     

    The
      Borrowers hereby covenant and agree that on the Closing Date and thereafter
      so
      long as this Agreement is in effect and until such time as the Commitments
      have
      been terminated, no Notes remain outstanding and the Loans, together with
      interest, Fees and all other Obligations incurred hereunder and under the other
      Loan Documents, have been paid in full:

     

    Section
      6.01     Reporting
      Requirements.
      The
      Borrower Representative will furnish to the Administrative Agent and each
      Lender:

     

    (a)   Annual
      Financial Statements.
      As soon
      as available and in any event within 90 days after the close of each fiscal
      year
      of the Borrowers, the consolidated balance sheets of the Borrowers and their
      respective consolidated Subsidiaries as at the end of such fiscal year and
      the
      related consolidated statements of income, of stockholders’ equity and of cash
      flows for such fiscal year, in each case setting forth comparative figures
      for
      the preceding fiscal year, all in reasonable detail and accompanied by the
      opinion with respect to such consolidated financial statements of independent
      public accountants of recognized national standing selected by the Borrowers,
      which opinion shall be unqualified and shall
      (i)
      state
      that such accountants audited such consolidated financial statements in
      accordance with generally accepted auditing standards, that such accountants
      believe that such audit provides a reasonable basis for their opinion, and
      that
      in their opinion such consolidated financial statements present fairly, in
      all
      material respects, the consolidated financial position of the Borrowers and
      their respective consolidated subsidiaries as at the end of such fiscal year
      and
      the consolidated results of their operations and cash flows for such fiscal
      year
      in conformity with generally accepted accounting principles, or
      (ii)
      contain
      such statements as are customarily included in unqualified reports of
      independent accountants in conformity with the recommendations and requirements
      of the American Institute of Certified Public Accountants (or any successor
      organization).

     

    (b)   Quarterly
      Financial Statements.
      As soon
      as available and in any event within 45 days after the close of each of the
      first three quarterly accounting periods in each fiscal year of the Borrowers,
      the unaudited consolidated balance sheets of the Borrowers and their respective
      consolidated Subsidiaries as at the end of such quarterly period and the related
      unaudited consolidated statements of income and of cash flows for such quarterly
      period and/or for the fiscal year to date, and setting forth, in the case of
      such unaudited consolidated statements of income and of cash flows, comparative
      figures for the related periods in the prior fiscal year, and which shall be
      certified on behalf of the Borrowers by the Chief Financial Officer of the
      Borrower Representative, subject to changes resulting from normal year-end
      audit
      adjustments.

     

    (c)   Officer’s
      Compliance Certificates.
      At the
      time of the delivery of the financial statements provided for in Sections 8.1(a)
      and (b) above, a certificate (a “Compliance
      Certificate”)
      substantially in 

     

    
      
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    the
      form
      of Exhibit
      E
      to the
      effect that (i) no Default or Event of Default exists or, if any Default or
      Event of Default does exist, specifying the nature and extent thereof and the
      actions the Borrowers propose to take with respect thereto and (ii) the
      representations and warranties of the Loan Parties are true and correct in
      all
      material respects, except to the extent that any relate to an earlier specified
      date, in which case, such representations and warranties shall be true and
      correct in all material respects as of the date made, which certificate shall
      set forth the calculations required to establish compliance with the provisions
      of Section 7.07 of this Agreement.

     

    (d)   Budgets
      and Forecasts.
      As soon
      as available but in any event not later than 60 days after the commencement
      of
      any fiscal year of the Borrowers and their Subsidiaries, commencing with the
      fiscal year ending September 30, 2007, a consolidated budget in reasonable
      detail for each of the four fiscal quarters of such fiscal year, and (if and
      to
      the extent prepared by management of the Borrowers) for any subsequent fiscal
      years, as customarily prepared by management for its internal use, setting
      forth, with appropriate discussion, the forecasted balance sheet, income
      statement, operating cash flows and capital expenditures of the Borrower and
      its
      Subsidiaries for the period covered thereby, and the principal assumptions
      upon
      which forecasts and budget are based. 

     

    (e)   Notices.
      Promptly, and in any event within three Business Days after, notice
      of:

     

    (i)   the
      occurrence of any event that constitutes a Default or Event of Default, which
      notice shall specify the nature thereof, the period of existence thereof and
      what action the Borrowers propose to take with respect thereto; or

     

    (ii)   the
      commencement of, or any other material development concerning, any litigation
      or
      governmental or regulatory proceeding pending against the Borrowers or any
      of
      their Subsidiaries or the occurrence of any other event, if the same would
      be
      reasonably likely to have a Material Adverse Effect.

     

    (f)   ERISA.
      Promptly, and in any event within 10 days after any Borrower or any Subsidiary
      of any Borrower or any ERISA Affiliate knows of the occurrence of any of the
      following, the Borrower Representative will deliver to the Administrative Agent
      a certificate of an Authorized Officer setting forth the full details as to
      such
      occurrence and the action, if any, that such Borrower or such Subsidiary of
      such
      Borrower or such ERISA Affiliate is required or proposes to take, together
      with
      any notices required or proposed to be given to or filed with or by any
      Borrower, the Subsidiary or the ERISA Affiliate with the PBGC, a Plan
      participant or the Plan administrator with respect thereto: (i) that a
      Reportable Event has occurred with respect to any Plan; (ii) the
      institution of any steps by any Borrower, any Subsidiary, any ERISA Affiliate,
      the PBGC or any other Person to terminate any Plan or the occurrence of any
      event or condition described in Section 4042 of ERISA that constitutes grounds
      for the termination of, or the appointment of a trustee to administer, a Plan;
      (iii) the institution of any steps by any Borrower, any Subsidiary or any ERISA
      Affiliate to withdraw from any Plan; (iv) the institution of any steps by any
      Borrower, any Subsidiary or any ERISA Affiliate to withdraw from any
      Multi-Employer Plan or Multiple Employer Plan, if such withdrawal could result
      in withdrawal liability (as described in Part 1 of Subtitle E of Title IV of
      ERISA or in Section 4063 of ERISA) in excess of $500,000; (v) that a non-exempt
      “prohibited transaction” within the meaning of Section 406 of ERISA in
      connection with any Plan has occurred; (vi) that a Plan has Unfunded
      Benefit Liabilities exceeding $500,000; (vii) the cessation of operations at
      a
      facility of the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate
      in the circumstances described in Section 4062(e) of ERISA; (viii) the
      conditions for imposition of a lien under Section 302(f) of ERISA shall have
      been met with respect to a Plan; (ix) the adoption of an amendment to a Plan
      requiring the provision of security to such Plan pursuant to Section 307 of
      ERISA; (x) the insolvency of or commencement of reorganization proceedings
      with
      respect to a Multi-Employer Plan; (xi) any material increase in the contingent
      liability of the Borrower or any Subsidiary with respect to any 

     

    
      
        
        

      

      
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    post-retirement
      welfare liability; or (xii) the taking of any action by, or the threatening
      of
      the taking of any action by, the Internal Revenue Service, the Department of
      Labor or the PBGC with respect to any of the foregoing.

     

    (g)   Environmental
      Matters.
      Promptly upon, and in any event within 10 Business Days after, an officer of
      the
      Borrowers or any of their Subsidiaries obtaining knowledge thereof, notice
      of
      one or more of the following environmental matters to the extent any of the
      following could reasonably be expected to have a Material Adverse
      Effect:
      (i)
      any
      pending or threatened Environmental Claim against the Borrowers or any of their
      Subsidiaries or any Real Property owned or operated by the Borrowers or any
      of
      their Subsidiaries;
      (ii)
      any
      condition or occurrence on or arising from any Real Property owned or operated
      by the Borrowers or any of their Subsidiaries that
      (A)
      results
      in noncompliance in any material respect by the Borrowers or any of their
      Subsidiaries with any applicable Environmental Law or
      (B)
      would
      reasonably be expected to form the basis of a Environmental Claim against the
      Borrowers or any of their Subsidiaries or any such Real Property;
      (iii)
      any
      condition or occurrence on any Real Property owned, leased or operated by the
      Borrowers or any of their Subsidiaries that could reasonably be expected to
      cause such Real Property to be subject to any restrictions on the ownership,
      occupancy, use or transferability by the Borrowers or any of their Subsidiaries
      of such Real Property under any Environmental Law; and
      (iv)
      the
      taking of any removal or remedial action in response to the actual or alleged
      presence of any Hazardous Material on any Real Property owned, leased or
      operated by the Borrowers or any of their Subsidiaries as required by any
      Environmental Law or any governmental or other administrative agency. All such
      notices shall describe in reasonable detail the nature of the Environmental
      Claim, such Borrower’s or such Subsidiary’s response thereto and such Borrower’s
      or such Subsidiary’s estimate of the potential exposure in Dollars of the
      Borrowers and their Subsidiaries with respect thereto. 

     

    (h)   SEC
      Reports and Registration Statements.
      Promptly after transmission or other filing with the SEC of any registration
      statement or annual, quarterly or current reports that any Borrower or any
      of
      its Subsidiaries files with the SEC on Form 10-K, 10-Q or 8-K (or any successor
      forms), notice that the same has been posted to ICO’s website or is otherwise
      available on the SEC’s website, and if the same is not then available on either
      such website, a copy of such registration statement or report.

     

    (i)   Annual,
      Quarterly and Other Reports.
      Promptly after transmission to ICO’s stockholders of any annual, quarterly and
      other report and all proxy statements, notice that the same has been provided
      to
      its stockholders and posted to ICO’s website, and if such report or statement is
      not then available on such website, a copy of such report or
      statement.

     

    (j)   Press
      Releases.
      Promptly after the release of any press releases and other similar statements
      intended to be made available generally by any Borrower or any Subsidiary to
      the
      public concerning material developments relating to any Borrower or any
      Subsidiaries, notice that the same has been released and posted to ICO’s
      website, and if such release is not then available on such website, a copy
      of
      such release.

     

    (k)   Information
      Relating to Collateral.
      At the
      time of the delivery of the annual financial statements provided for in subpart
      (a) above, a certificate of an Authorized Officer (i) setting forth any changes
      to the information required pursuant to the Perfection Certificate or confirming
      that there has been no change in such information since the date of the most
      recently delivered or updated Perfection Certificate and (ii) certifying that
      neither the Borrowers nor any of their Subsidiaries have taken any actions
      (and
      is not aware of any actions so taken) to terminate any UCC financing statements
      or other appropriate filings, recordings or registrations, including all
      refilings, rerecordings and reregistrations, containing a description of the
      Collateral that have been filed of record in each governmental, municipal or
      other appropriate office in each jurisdiction identified pursuant to clause
      (i)
      above to the extent 

     

    
      
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    necessary
      to protect and perfect the security interests and Liens under the Security
      Documents for a period of not less than 18 months after the date of such
      certificate (except as noted therein with respect to any continuation statements
      to be filed within such period).

     

    (l)   Other
      Notices.
      Promptly after the transmission or receipt thereof, as applicable, copies of
      all
      notices received or sent by any Borrower or any Subsidiary to or from the
      holders of any Material Indebtedness or any trustee with respect
      thereto.

     

    (m)   Other
      Information.
      Promptly, but in any event within 10 days after a request therefor, such other
      information or documents (financial or otherwise) relating to the Borrowers
      or
      any of their Subsidiaries as the Administrative Agent or any Lender may
      reasonably request from time to time.

     

    Section
      6.02     Books,
      Records and Inspections.
      The
      Borrowers will, and will cause each of their respective Subsidiaries
      to,
      (i)
      keep
      proper books of record and account, in which full and correct entries shall
      be
      made of all financial transactions and the assets and business of the Borrowers
      or such Subsidiary, as the case may be, in accordance with GAAP; and
      (ii) permit,
      upon reasonable prior notice to the Borrower Representative and during normal
      business hours, officers and designated representatives of the Administrative
      Agent or any of the Lenders to visit and inspect any of the properties or assets
      of the Borrowers and their Subsidiaries in whomsoever’s possession (but only to
      the extent the Borrowers or such Subsidiary has the right to do so to the extent
      in the possession of another Person), to examine the books of account of the
      Borrowers and any of its Subsidiaries, and make copies thereof and take extracts
      therefrom, and to discuss the affairs, finances and accounts of the Borrowers
      and of their Subsidiaries with, and be advised as to the same by, its and their
      officers and independent accountants and independent actuaries, if any, all
      at
      such reasonable times and intervals and to such reasonable extent as the
      Administrative Agent or any of the Lenders may request.

     

    Section
      6.03    Insurance.

     

    (a)   The
      Borrowers will, and
      will cause each of their respective Subsidiaries to,
      (i)
      maintain
      insurance coverage by such insurers and in such forms and amounts and against
      such risks as are generally consistent with the insurance coverage maintained
      by
      the Borrowers and their Subsidiaries as of the Closing Date, and
      (ii)
      forthwith upon the Administrative Agent’s or any Lender’s written request,
      furnish to the Administrative Agent or such Lender such information about such
      insurance as the Administrative Agent or such Lender may from time to time
      reasonably request, which information shall be prepared in form and detail
      reasonably satisfactory to the Administrative Agent or such Lender and certified
      by an Authorized Officer.

     

    (b)   The
      Borrowers will, and will cause each of their Subsidiaries that is a Loan Party
      to, at all times keep their respective property that is subject to the Lien
      of
      any of the Security Documents insured in favor of the Administrative Agent,
      and
      all policies or certificates (or certified copies thereof) with respect to
      such
      insurance (and any other insurance maintained by any Borrower or any such
      Subsidiary)
      (i)
      shall be
      endorsed to the Administrative Agent’s satisfaction for the benefit of the
      Administrative Agent (including, without limitation, by naming the
      Administrative Agent as an additional loss payee (with respect to Collateral)
      or, to the extent permitted by applicable law, as an additional insured as
      its
      interests may appear),
      (ii)
      shall
      provide that the respective insurers irrevocably waive any and all rights of
      subrogation with respect to the Administrative Agent and the
      Lenders,
      (iii)
      shall in
      the case of any such certificates or endorsements in favor of the Administrative
      Agent, be delivered to or deposited with the Administrative Agent, and (iv)
      shall provide that the interests of the Administrative Agent shall not be
      invalidated by an act or negligence of any Borrower or any Subsidiary or any
      person having an interest in any facility owned, leased or used by any Borrower
      or any of its Subsidiaries nor by occupancy or use of any facility owned, leased
      or used by any Borrower or any Subsidiary for purposes more hazardous than
      

     

    
      
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    permitted
      by such policy nor by any foreclosure or other proceedings relating to any
      facility owned, leased or used by any Borrower or any Subsidiary. The
      Borrower will, and will cause each of their Subsidiaries that is a Loan Party
      to, use commercially reasonable efforts to cause the policies
      or certificates referred to in the preceding sentence to state that such
      insurance policies shall not be canceled, reduced or expire without 30 days’
prior written notice thereof (or 10 days’ prior written notice in the case of
      cancellation for the non-payment of premiums) by the respective insurer to
      the
      Administrative Agent. The Borrower Representative shall deliver to the
      Administrative Agent contemporaneously with the expiration or replacement of
      any
      policy of insurance required to be maintained by this Agreement a certificate
      as
      to the new or renewal policy. The Borrower Representative shall advise the
      Administrative Agent promptly upon the cancellation, reduction or amendment
      of
      any policy. If requested to do so by the Administrative Agent at any time,
      the
      Borrower Representative shall deliver copies of all insurance policies
      maintained by it as required by this Agreement. The Administrative Agent shall
      deliver copies of any certificates of insurance to a Lender upon such Lender’s
      reasonable request.

     

    (c)   If
      the
      Borrowers or any other Loan Party shall fail to maintain any insurance in
      accordance with this Section, or if the Borrower Representative or any such
      Loan
      Party shall fail to so endorse and deliver or deposit all endorsements or
      certificates with respect thereto, the Administrative Agent shall have the
      right
      (but shall be under no obligation) to procure such insurance and the Borrowers
      agree to reimburse the Administrative Agent on demand for all costs and expenses
      of procuring such insurance.

     

    Section
      6.04     Payment
      of Taxes and Claims.
      The
      Borrowers will pay and discharge, and will cause each of its Subsidiaries to
      pay
      and discharge, all taxes, assessments and governmental charges or levies imposed
      upon it or upon its income or profits, or upon any properties belonging to
      it,
      prior to the date on which penalties attach thereto, and all lawful claims
      that,
      if unpaid, might become a Lien or charge upon any properties of the Borrowers
      or
      any of their Subsidiaries;
      provided, however,
      that
      neither the Borrowers nor any of their Subsidiaries shall be required to pay
      any
      such tax, assessment, charge, levy or claim that is being contested in good
      faith and by proper proceedings if it has maintained adequate reserves with
      respect thereto in accordance with GAAP. Without limiting the generality of
      the
      foregoing, the Borrowers will, and will cause each of its Subsidiaries to,
      pay
      in full all of its wage obligations to its employees in accordance with the
      Fair
      Labor Standards Act (29 U.S.C. Sections 206-207) and any comparable provisions
      of applicable law.

     

    Section
      6.05    Corporate
      Franchises.
      The
      Borrowers will do, and will cause each of their Subsidiaries to do, or cause
      to
      be done, all things necessary to preserve and keep in full force and effect
      its
      corporate existence, rights and authority; provided,
      however,
      that
      nothing in this Section shall be deemed to prohibit any
      transaction permitted by Section 7.02.

     

    Section
      6.06     Good
      Repair.
      The
      Borrowers will, and will cause each of their Subsidiaries to, ensure that its
      material properties and equipment used or useful in its business in whomsoever’s
      possession they may be, are kept in good repair, working order and condition,
      normal wear and tear and damage caused by fire or other casualty event (solely
      to the extent covered by insurance) excepted, and that from time to time there
      are made in such properties and equipment all needful and proper repairs,
      renewals, replacements, extensions, additions, betterments and improvements
      thereto, to the extent and in the manner customary for companies in similar
      businesses.

     

    Section
      6.07     Compliance
      with Statutes, etc.
      The
      Borrowers will, and will cause each of their Subsidiaries to, comply with all
      applicable statutes, regulations and orders of, and all applicable restrictions
      imposed by, all Governmental Authorities in respect of the conduct of its
      business and the ownership of its property, other than those the noncompliance
      with which would not be reasonably expected to have a Material Adverse
      Effect.

     

    
      
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    Section
      6.08     Compliance
      with Environmental Laws.
      Without
      limitation of the covenants contained in Section 6.07:

     

    (a)   The
      Borrowers will comply, and will cause each of their Subsidiaries to comply,
      with
      all Environmental Laws applicable to the ownership, lease or use of all Real
      Property now or hereafter owned, leased or operated by the Borrowers or any
      of
      their Subsidiaries, and will promptly pay or cause to be paid all costs and
      expenses incurred in connection with such compliance, except
      to the
      extent that such compliance with Environmental Laws is being contested in good
      faith and by appropriate proceedings and for which adequate reserves have been
      established to the extent required by GAAP, and an adverse outcome in such
      proceedings is not reasonably expected to have a Material Adverse
      Effect.

     

    (b)   The
      Borrowers will keep or cause to be kept, and will cause each of their
      Subsidiaries to keep or cause to be kept, all such Real Property free and clear
      of any Liens imposed pursuant to such Environmental Laws other than Permitted
      Liens.

     

    (c)   Neither
      the Borrowers nor any of their Subsidiaries will generate, use, treat, store,
      release or dispose of, or permit the generation, use, treatment, storage,
      release or disposal of, Hazardous Materials on any Real Property now or
      hereafter owned, leased or operated by the Borrowers or any of their
      Subsidiaries or transport or permit the transportation of Hazardous Materials
      to
      or from any such Real Property other than in compliance with applicable
      Environmental Laws, except for such noncompliance as would not be reasonably
      expected to have a Material Adverse Effect.

     

    (d)   If
      required to do so under any applicable order of any Governmental Authority,
      the
      Borrowers will undertake, and cause each of their Subsidiaries to undertake,
      any
      clean up, removal, remedial or other action necessary to remove and clean up
      any
      Hazardous Materials from any Real Property owned, leased or operated by the
      Borrowers or any of their Subsidiaries in accordance with, in all material
      respects, the requirements of all applicable Environmental Laws and in
      accordance with, in all material respects, such orders of all Governmental
      Authorities, except to the extent that such Borrower or such Subsidiary is
      contesting such order in good faith and by appropriate proceedings and for
      which
      adequate reserves have been established to the extent required by
      GAAP.

     

    (e)   At
      the written request of
      the Administrative Agent or the Required Lenders, which request shall specify
      in
      reasonable detail the basis therefor, at any time and from time to time after
      the Lenders receive notice under Section 6.01(g) for any Environmental Claim
      involving potential expenditures by any Borrower or any of its Subsidiaries
      in
      excess of $500,000 in the aggregate (after giving effect to any available
      insurance proceeds) for any Real Property, the Borrower Representative will
      provide, at its sole cost and expense, an environmental site assessment report
      concerning any such Real Property now or hereafter owned, leased or operated
      by
      such Borrower or any of its Subsidiaries, prepared by an environmental
      consulting firm reasonably acceptable to the Administrative Agent, indicating
      the presence or absence of Hazardous Materials in violation of Environmental
      Laws and the potential cost of any removal or a remedial action in connection
      with any Hazardous Materials on such Real Property in violation of Environmental
      Laws. If the Borrower Representative fails to provide the same within 90 days
      after such request was made, the Administrative Agent may order the same, and
      such Borrower shall grant and hereby grants, to the Administrative Agent and
      the
      Lenders and their agents, access to such Real Property and specifically grants
      the Administrative Agent and the Lenders an irrevocable non-exclusive license,
      subject to the rights of tenants, to undertake such an assessment, all at the
      Borrowers’ expense.

     

    Section
      6.09     Certain
      Subsidiaries to Join in Subsidiary Guaranty.

     

    
      
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    (a)   In
      the
      event that at any time after the Closing Date any Borrower creates, holds,
      acquires or at any time has any Subsidiary (other than a Foreign Subsidiary
      as
      to which Section 6.01(b) applies and other than ICO Minerals to the extent
      that
      the representation and warranty set forth in Section 5.23(b) is true and correct
      in all respects) that is not a party to the Subsidiary Guaranty, such Borrower
      will immediately, but in any event within five Business Days, notify the
      Administrative Agent in writing of such event, identifying the Subsidiary in
      question and referring specifically to the rights of the Administrative Agent
      and the Lenders under this Section. The Borrowers promptly, and in any event
      within five Business Days, will cause such Subsidiary to deliver to the
      Administrative Agent, in sufficient quantities for the Lenders,
      (i)
      a
      joinder supplement, reasonably satisfactory in form and substance to the
      Administrative Agent, duly executed by such Subsidiary, pursuant to which such
      Subsidiary joins in the Subsidiary Guaranty as a guarantor thereunder, and
      (ii)
      if such Subsidiary is a corporation, resolutions of the Board of Directors
      of
      such Subsidiary, certified by the Secretary or an Assistant Secretary of such
      Subsidiary as duly adopted and in full force and effect, authorizing the
      execution and delivery of such joinder supplement, or if such Subsidiary is
      not
      a corporation, such other evidence of the authority of such Subsidiary to
      execute such joinder supplement as the Administrative Agent may reasonably
      request. 

     

    (b)   Notwithstanding
      the foregoing or the provisions of Section 6.10 hereof, no Borrower shall be
      required to pledge (or cause to be pledged) more than 66% of the stock or other
      equity interests in any first tier Foreign Subsidiary, or any of the stock
      or
      other equity interests in any other Foreign Subsidiary, or to cause a Foreign
      Subsidiary to join in the Subsidiary Guaranty or to become a party to the
      Security Agreement or any other Security Document, if to do so would subject
      such Borrower to liability for additional United States income taxes by virtue
      of Section 956 of the Code in an amount such Borrower considers
      material.

     

    Section
      6.10     Additional
      Security; Real Estate Matters; Further Assurances. 

     

    (a)   Additional
      Security.
      Subject
      to subpart (b) below, the Borrowers or any Subsidiary Guarantor acquires, owns
      or holds an interest in any Real Property or any personal property that is
      not
      at the time included in the Collateral and is required to be included in the
      Collateral pursuant to any Security Document, the Borrower Representative will
      promptly notify the Administrative Agent in writing of such event, identifying
      the property or interests in question and referring specifically to the rights
      of the Administrative Agent and the Lenders under this Section, and the Borrower
      Representative will, or will cause such Subsidiary to, within 10 Business Days
      following request by the Administrative Agent, grant to the Administrative
      Agent
      for the benefit of the Lenders a Lien on such Real Property or such personal
      property pursuant to the terms of such security agreements, assignments or
      other
      documents as the Administrative Agent deems appropriate (collectively, the
      “Additional
      Security Document”)
      or a
      joinder in any existing Security Document. Furthermore, the Borrower
      Representative shall cause to be delivered to the Administrative Agent such
      opinions of local counsel, corporate resolutions, a Perfection Certificate,
      consents of landlords, Landlord’s Agreements and other related documents as may
      be reasonably requested by the Administrative Agent in connection with the
      execution, delivery and recording of any such Additional Security Document
      or
      joinder, all of which documents shall be in form and substance reasonably
      satisfactory to the Administrative Agent.

     

    (b)   Foreign
      Subsidiaries.
      No
      Domestic Loan Party shall be required to pledge (or cause to be pledged) more
      than 66% of the Equity Interests in any first tier Foreign Subsidiary, or any
      of
      the Equity Interests in any other Foreign Subsidiary, or to cause a Foreign
      Subsidiary to join in the Subsidiary Guaranty or to become a party to the
      Security Agreement or any other Security Document, if to do so would subject
      the
      Borrowers or any of their Subsidiaries to liability for additional United States
      income taxes by virtue of Section 956 of the Code in an amount the Borrowers
      consider material.

     

    
      
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    (c)   Real
      Estate Matters.
      The
      Borrowers shall have delivered to the Administrative Agent (x) with respect
      to each parcel of Real Property subjected to a Mortgage as of the Closing Date
      (each, a “Closing
      Date Mortgaged Property”),
      and
      (y) within 30 days of the request therefor by the Administrative Agent,
      with respect to each parcel of Real Property acquired by any Borrower or any
      Subsidiary Guarantor after the Closing Date that becomes subject to a Mortgage
      pursuant to Section 6.10(a) above, all of the following: 

     

    (i)   evidence,
      which may be in
      the form of a letter or other certification from a title insurance company
      reasonably satisfactory to the Administrative Agent (a “Title
      Company”)
      or
      from an insurance broker, surveyor, engineer or other provider, as to whether
      (1) such Real Property is a Flood Hazard Property, and (2) the
      community in which such Flood Hazard Property is located is participating in
      the
      National Flood Insurance Program, and if such Closing Date Mortgaged Property
      is
      a Flood Hazard Property, evidence that the applicable Loan Party has obtained
      flood insurance in respect of such Flood Hazard Property to the extent required
      under the applicable regulations of the Board of Governors of the Federal
      Reserve System; 

     

    (ii)   a
      certificate of the Borrowers identifying any Phase I, Phase II or other
      environmental report received in draft or final form by any Loan Party during
      the five-year period prior to the date of execution of the Mortgage relating
      to
      such Real Property and/or the operations conducted therefrom, or stating that
      no
      such draft or final form reports have been requested or received by any Loan
      Party (or its counsel), together with true and correct copies of all such
      environmental reports so listed (in draft form, if not finalized), and all
      such
      environmental reports shall be reasonably satisfactory in form and substance
      to
      the Administrative Agent; and

     

    (iii)   an
      opinion of local counsel admitted to practice in the jurisdiction in which
      such
      Real Property is located, satisfactory in form and substance to the
      Administrative Agent, as to the validity and effectiveness of such Mortgage
      as a
      lien on such Real Property encumbered thereby, and covering such other matters
      of law in connection with the execution, delivery, recording and enforcement
      of
      such Mortgage as the Administrative Agent may reasonably request.

     

    (d)   Other
      Real Estate Matters.
      At any
      time after an Event of Default has occurred and is continuing, the
      Administrative Agent may require, with respect to each parcel of Real Property
      that is subject to a Mortgage, the Borrowers to deliver to the Administrative
      Agent, within 30 days of the request therefor, all of the following with respect
      to each parcel of Real Property that becomes subject to a Mortgage pursuant
      to
      Section 6.10(a) above:

     

    (i)   an
      American Land Title
      Association ( ALTA) mortgagee title insurance policy or policies, or
      unconditional commitments therefor (a “Title
      Policy”)
      issued
      by a Title Company, in an amount not less than the amount reasonably required
      therefor by the Administrative Agent (taking into account the estimated value
      of
      the property involved), insuring fee simple title to, or a valid leasehold
      interest in, such Real Property vested in the applicable Loan Party and assuring
      the Administrative Agent that the applicable Mortgage creates a valid and
      enforceable first priority mortgage lien on the respective Real Property
      encumbered thereby, subject only to Permitted Liens and a standard survey
      exception, which Title Policy (1) shall include an endorsement for mechanics’
liens, for revolving, “variable rate” and future advances under this Agreement
      and for any other matters reasonably requested by the Administrative Agent
      and
      (2) shall provide for affirmative insurance and such reinsurance as the
      Administrative Agent may reasonably request, all of the foregoing in form and
      substance reasonably satisfactory to the Administrative Agent;

     

    
      
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    (ii)   a
      title
      report issued by the Title Company with respect thereto, dated not more than
      30
      days prior to the date of execution of the applicable Mortgage and reasonably
      satisfactory in form and substance to the Administrative Agent;

     

    (iii)   copies
      of
      all recorded documents listed as exceptions to title or otherwise referred
      to in
      the Title Policy or in such title report relating to such real
      Property;

     

    (iv)   a
      survey,
      in form and substance reasonably satisfactory to the Administrative Agent,
      of
      such Real Property, certified in a manner reasonably satisfactory to the
      Administrative Agent by a licensed professional surveyor reasonably satisfactory
      to the Administrative Agent; and

     

    (v)   appraisals,
      satisfactory in form and substance to the Administrative Agent and each Lender,
      dated not more than 60 days prior to the date of execution of each Mortgage
      and
      addressed to the Administrative Agent and the Lenders or accompanied by a
      separate letter indicating that the Administrative Agent and the Lenders may
      rely thereon, from one or more nationally recognized appraisal firms,
      satisfactory to the Administrative Agent, covering
      (i)
      the Real
      Properties, and
      (ii)
      all
      other tangible property, plant and equipment owned by any Borrower or any
      Subsidiary, that is to be subjected to the Lien of the Security Agreement and
      is
      located at any plant or facility owned or leased by any Borrower or any
      Subsidiary in the United States of America, which appraisals shall set
      forth
      (A)
      the
“fair market value” of such property (i.e.,
      the
      amount at which such property would equitably exchange between a willing buyer
      and a willing seller, neither being under a compulsion and both having
      reasonable knowledge of all relevant facts on the premise that such property
      will continue in its present use as part of an ongoing business
      enterprise),
      (B)
      the
“orderly disposal value” of such property (i.e.,
      the
      amount which may be realized through a forced sale disposal of such property
      when a reasonable time to find a buyer is allowed), and
      (C)
      the
“forced liquidation value” of such property (i.e.,
      the
      amount which may be realized through an immediate forced sale disposal of such
      property), in each case as determined in accordance with sound appraisal
      standards.

     

    (e)   Landlord
      Waivers.
      The
      Borrowers will promptly upon request of the Administrative Agent obtain, and
      will maintain in effect,
      Landlord’s Agreements on any
      Real
      Property on which any items of Collateral are located, in form and substance
      reasonably acceptable to the Administrative Agent.

     

    (f)   Further
      Assurances.
      The
      Borrowers will, and will cause each of their respective Subsidiaries to, at
      the
      expense of the Borrowers, make, execute, endorse, acknowledge, file and/or
      deliver to the Administrative Agent from time to time such conveyances,
      financing statements, transfer endorsements, powers of attorney, certificates,
      and other assurances or instruments and take such further steps relating to
      the
      Collateral covered by any of the Security Documents as the Administrative Agent
      may reasonably require. If at any time the Administrative Agent determines,
      based on applicable law, that all applicable taxes (including, without
      limitation, mortgage recording taxes or similar charges) were not paid in
      connection with the recordation of any mortgage or deed of trust, the Borrowers
      shall promptly pay the same upon demand.

     

    Section
      6.11     Fiscal
      Years, Fiscal Quarters
No
      Borrower shall change its or any of its Subsidiaries’ fiscal years or fiscal
      quarters (other than the fiscal year or fiscal quarters of a person that becomes
      a Subsidiary, made at the time such person becomes a Subsidiary to conform
      to
      such Borrower’s fiscal year and fiscal quarters).

     

    Section
      6.12     Senior
      Debt.
      The
      Obligations shall, and the Borrowers shall take all necessary action to ensure
      that the Obligations shall, at all times rank at least pari
      passu
      in right
      of 

     

    
      
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    payment
      (to the fullest extent permitted by law) with all other senior secured
      Indebtedness of the Borrowers and each Subsidiary Guarantor.

     

    Section
      6.13     Federal
      Tax Liens.
      The
      Borrowers shall, within 30 days of the Closing Date, cause a Certificate of
      Release of Federal Tax Lien to be filed with each of the Secretary of State
      of
      the State of Texas and the County Clerk of Harris County, Texas, in each case
      with respect to the federal tax lien filed against ICO on March 14, 2003 in
      the
      amount of $1,203,783.50.

     

    Section
      6.14     ICO
      Minerals.
      ICO
      Minerals will be dissolved or merged into a Loan Party and evidence thereof
      shall have been provided to the Administrative Agent as soon as available but
      in
      no event later than 90 days following the Closing Date.

     

    Section
      6.15     Australian
      Loan Defaults.
      Within
      120 days of the Closing Date, the Australian Subsidiary shall receive a waiver
      from the Australian Lender of the Australian Loan Defaults, and such waiver
      shall be in form and substance satisfactory to the Administrative
      Agent.

     

     

    ARTICLE
      VII.

     

    NEGATIVE
      COVENANTS

     

    The
      Borrowers hereby covenant and agree that on the Closing Date and thereafter
      for
      so long as this Agreement is in effect and until such time as the Commitments
      have been terminated, no Notes remain outstanding and the Loans, together with
      interest, Fees and all other Obligations incurred hereunder and under the other
      Loan Documents, have been paid in full:

     

    Section
      7.01     Changes
      in Business.
      Neither
      the Borrowers nor any of their Subsidiaries will engage in any business if,
      as a
      result, the general nature of the business, taken on a consolidated basis,
      which
      would then be engaged in by the Borrowers and their Subsidiaries, would be
      substantially changed from the general nature of the business engaged in by
      the
      Borrowers and their Subsidiaries on the Closing Date.

     

    Section
      7.02    Consolidation,
      Merger, Acquisitions, Asset Sales, etc.
      The
      Borrowers will not, and will not permit any Subsidiary to, (i) wind up,
      liquidate or dissolve its affairs, (ii) enter into any transaction of merger
      or
      consolidation, (iii) make or otherwise effect any Acquisition, (iv) make or
      otherwise effect any Asset Sale, or (v) agree to do any of the foregoing at
      any
      future time, except
      that,
      each of the following shall be permitted:

     

    (a)   ICO
      Minerals may be dissolved or merged with or into any Loan Party, provided
      that the
      surviving or continuing or resulting corporation is Loan Party, and if no
      Default or Event of Default shall have occurred and be continuing or would
      result therefrom, the merger, consolidation or amalgamation of (i) any
      Subsidiary with or into any Borrower, provided
      such
      Borrower is the surviving or continuing or resulting corporation; (ii) any
      Subsidiary with or into any Subsidiary Guarantor, provided
      that the
      surviving or continuing or resulting corporation is a Subsidiary Guarantor;
      or
      (iii) any Foreign Subsidiary with or into any other Foreign Subsidiary;

     

    (b)   if
      no
      Default or Event of Default shall have occurred and be continuing or would
      result therefrom, any Asset Sale by (i) a Borrower to any other Domestic Loan
      Party, (ii) any Subsidiary to any Domestic Loan Party, or (iii) any Foreign
      Subsidiary to any other Foreign Subsidiary; 

     

    (c)   if
      no
      Default or Event of Default shall have occurred and be continuing or would
      result therefrom, any Borrower or any Subsidiary may make any Acquisition that
      is a Permitted Acquisition, 

     

    
      
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    provided
      that all
      of the conditions contained in the definition of the term Permitted Acquisition
      are satisfied; 

     

    (d)   if
      no
      Default or Event of Default shall have occurred and be continuing or would
      result therefrom, in addition to any Asset Sale permitted above, any Borrower
      or
      any Subsidiary may consummate
      any Asset Sale, provided
      that
      (i)
      the consideration for each such Asset Sale represents fair value and at least
      90% of such consideration consists of cash; (ii) in the case of any Asset Sale
      involving consideration in excess of $500,000, at least five Business Days
      prior
      to the date of completion of such Asset Sale, the Borrower Representative shall
      have delivered to the Administrative Agent an officer’s certificate executed by
      an Authorized Officer, which certificate shall contain
      (A)
      a
      description of the proposed transaction, the date such transaction is scheduled
      to be consummated, the estimated sale price or other consideration for such
      transaction,
      and
      (B)
      a
      certification that no Default or Event of Default has occurred and is
      continuing, or would result from consummation of such transaction; and (iii)
      the
      aggregate amount of all Asset Sales made pursuant to this subpart during any
      fiscal year of the Borrowers shall not exceed $1,000,000; 

     

    (e)   The
      Borrowers and their Subsidiaries shall be permitted to make Consolidated Capital
      Expenditures, so long as no Default or Event of Default has occurred and is
      continuing or will occur as a result of such Consolidated Capital Expenditure;
      and

     

    (f)   The
      Borrowers and their Subsidiaries shall be permitted to make and dispose of
      the
      investments permitted pursuant to Section 7.05(a), (b), (c), or
      (d).

     

    Section
      7.03     Liens.
      The
      Borrowers will not, and will not permit any of their Subsidiaries to, create,
      incur, assume or suffer to exist any Lien upon or with respect to any property
      or assets of any kind (real or personal, tangible or intangible) of any of
      the
      Borrowers or any such Subsidiary whether now owned or hereafter acquired, or
      sell any such property or assets subject to an understanding or agreement,
      contingent or otherwise, to repurchase such property or assets (including sales
      of accounts receivable or notes with or without recourse to a Borrower or any
      of
      its Subsidiaries, other than for purposes of collection of delinquent accounts
      in the ordinary course of business) or assign any right to receive income,
      or
      file or permit the filing of any financing statement under the UCC or any other
      similar notice of Lien under any similar recording or notice statute, except
      that the foregoing restrictions shall not apply to:

     

    (a)   Standard
      Permitted Liens; and

     

    (b)   Liens
      on the
      Borrowers’ and their Subsidiaries’ properties in
      existence on the Closing Date that are listed in Schedule
      7.03;
      and

     

    (c)   Liens
      (i)
      that are
      placed upon fixed or capital assets, leased, acquired, constructed or improved
      by any Borrower or any Subsidiary, provided that
      (A) such Liens only secure Capital Lease Obligations permitted by Section
      7.04(i),
      (B)
      such
      Liens and the Indebtedness secured thereby are incurred prior to or within
      120
      days after such acquisition or the completion of such construction or
      improvement,
      (C)
      the
      Indebtedness secured thereby does not exceed 90% of the cost of acquiring,
      constructing or improving such fixed or capital assets, and
      (D)
      such
      Liens shall not apply to any other property or assets of any Borrower or any
      Subsidiary; or
      (ii)
      arising
      out of the refinancing, extension, renewal or refunding of any Indebtedness
      secured by any such Liens, provided that the principal amount of such
      Indebtedness is not increased and such Indebtedness is not secured by any
      additional assets; and

     

    
      
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    (d)   any
      Lien
      on the new building constructed in the fiscal year 2006 of the Borrowers and
      located at 1300 McCabe Road, LaPorte, Texas and owned by Bayshore RE Holdings,
      Inc., granted in connection with the Contemplated Protective Life Loan;
      and

     

    (e)   any
      Lien
      granted to the Administrative Agent securing any of the Obligations or any
      other
      Indebtedness of the Loan Parties under the Loan Documents or any Indebtedness
      under any Designated Hedge Agreement; and 

     

    (f)   any
      Lien
      granted to secure Indebtedness permitted by Section 7.04(h).

     

    Section
      7.04     Indebtedness.
      The
      Borrowers will not, and will not permit any of its Subsidiaries to, contract,
      create, incur, assume or suffer to exist any Indebtedness of the Borrowers
      or
      any of their Subsidiaries, except:
      

     

    (a)   Indebtedness
      incurred under this Agreement and the other Loan Documents; and

     

    (b)   the
      Indebtedness set forth on Schedule
      7.04
      hereto,
      and any refinancing, extension, renewal or refunding of any such Indebtedness
      not involving an increase in the principal amount thereof;
      and

     

    (c)   Indebtedness
      constituting Permitted Foreign Subsidiary Loans and Investments;
      and 

     

    (d)   any
      intercompany loans (i) made by any Borrower or any Subsidiary to any Domestic
      Loan Party, or (ii) made by any Foreign Subsidiary to any other Foreign
      Subsidiary;
      and

     

    (e)   Indebtedness
      of the Borrowers and their Subsidiaries under Hedge Agreements, provided
      such
      Hedge Agreements have been entered into in the ordinary course of business
      and
      not for speculative purposes; and

     

    (f)   Indebtedness
      constituting Guaranty Obligations permitted by Section 7.05; and

     

    (g)   the
      Contemplated Protective Life Loan; 

     

    (h)   Indebtedness
      incurred by any Foreign Subsidiary or Foreign Subsidiaries; and

     

    (i)   additional
      Indebtedness (including Capital Lease Obligations) of the Borrowers or any
      of
      their Subsidiaries to the extent not permitted by any of the foregoing clauses,
      provided
      that (i)
      the aggregate principal amount of all such Indebtedness shall not exceed
      $5,000,000 per annum, (ii) after giving effect to the incurrence of any such
      Indebtedness the Leverage Ratio is less than 2.50 to 1.00 and (iii) no Default
      or Event of Default has occurred and is continuing at the time of or immediately
      after the incurrence of any such Indebtedness.

     

    Section
      7.05     Investments
      and Guaranty Obligations.
      The
Borrowers
      will
      not,
      and will not permit any of its Subsidiaries to, directly or indirectly, (i)
      make
      or commit to make any Investment or (ii) be or become obligated under any
      Guaranty Obligations, except:

     

    (a)   Investments
      by any Borrower or any Subsidiaries in cash and Cash Equivalents;
      and

     

    (b)   any
      endorsement of a check or other medium of payment for deposit or collection,
      or
      any similar transaction in the normal course of business; and

     

    
      
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    (c)   the
      Borrowers and their Subsidiaries may acquire and hold receivables and similar
      items owing to them in the ordinary course of business and payable or
      dischargeable in accordance with customary trade terms; and

     

    (d)   any
      Permitted Creditor Investment; and

     

    (e)   loans
      and
      advances to employees for business-related travel expenses, moving expenses,
      costs of replacement homes, business machines or supplies, automobiles and
      other
      similar expenses, in each case incurred in the ordinary course of business,
      provided
      the
      aggregate outstanding amount of all such loans and advances shall not exceed
      $1,000,000 at any time; and

     

    (f)   to
      the
      extent not permitted by any of the other subparts in this Section, Investments
      existing as of the Closing Date and described on Schedule
      7.05
      hereto;
      and

     

    (g)   any
      Guaranty Obligations of any Borrower or any Subsidiary in favor of the
      Administrative Agent, each LC Issuer and the Lenders and any other benefited
      creditors under any Designated Hedge Agreements pursuant to the Loan Documents;
      and

     

    (h)   Investments
      of the Borrowers and their Subsidiaries in Hedge Agreements permitted to be
      entered into pursuant to this Agreement; and

     

    (i)   Investments
      (i) of any Borrower or any Subsidiary in any Subsidiary existing as of the
      Closing Date, (ii) of any Borrower in any Domestic Loan Party made after the
      Closing Date, (iii) of any Domestic Loan Party in any other Domestic Loan Party
      (other than a Borrower) made after the Closing Date, or (iv) constituting
      Permitted Foreign Subsidiary Loans and Investments; and

     

    (j)   Investments
      of any Foreign Subsidiary in any other Subsidiary; and

     

    (k)   intercompany
      loans and advances permitted by Section 7.04(d); and

     

    (l)   the
      Acquisitions permitted by Section 7.02; and

     

    (m)   any
      Guaranty Obligation incurred by any Domestic Loan Party with respect
      to Indebtedness
      of another Domestic Loan Party which Indebtedness is permitted by Section 7.04;
      and

     

    (n)   Investments
      constituting Restricted Payments permitted pursuant to Section 7.06;
      and

     

    (o)   other
      Investments by any
      Borrower or any Subsidiary in any other Person (other than a Borrower or any
      Subsidiary) made after the Closing Date and not permitted pursuant to the
      foregoing subparts, provided
      that
      (i)
      at the
      time of making any such Investment no Default or Event of Default shall have
      occurred and be continuing, or would result therefrom, and
      (ii) the
      maximum cumulative amount of all such Investments that are so made pursuant
      to
      this subpart and outstanding at any time shall not exceed an aggregate of
      $5,000,000, taking into account the repayment of any loans or advances
      comprising such Investments.

     

    Section
      7.06     Restricted
      Payments.  The
      Borrowers will not, and
      will not permit any of their Subsidiaries to, declare or make, or agree to
      pay
      or make, directly or indirectly, any Restricted Payment, except:

     

    
      
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    (a)   any
      Borrower or any of its Subsidiaries may declare and pay or make Capital
      Distributions that are payable solely in additional shares of its common stock
      (or warrants, options or other rights to acquire additional shares of its common
      stock); and

     

    (b)   (i)
      any
      Subsidiary may declare and pay or make Capital Distributions to any Domestic
      Loan Party, and (ii) any Foreign Subsidiary may declare and pay or make Capital
      Distributions to any other Foreign Subsidiary or to any Domestic Loan Party;
      and

     

    (c)   ICO
      may
      declare and pay or make Capital Distributions (including, but not limited to
      any
      made in connection with the Preferred Stock Transaction), provided
      that (i)
      no Default or Event of Default shall have occurred and be continuing or would
      result therefrom, (ii) the Borrowers will be in compliance with the financial
      covenants set forth in Section 7.07 after giving pro
      forma
      effect
      to each such Capital Distribution, and (iii) after giving pro
      forma
      effect
      to each such Capital Distribution, the Leverage Ratio is less than 2.50 to
      1.00.

     

    Section
      7.07     Financial
      Covenants.
      

     

    (a)   Consolidated
      Tangible Net Worth.
      The
      Borrower will not permit its Consolidated Tangible Net Worth at any time to
      be
      less than the sum of (i) $50,000,000 plus
      (ii) 50%
      of Consolidated Net Income (to the extent a positive number) for each fiscal
      quarter ending after the Closing Date.

     

    (b)   Leverage
      Ratio.
      The
      Borrowers will not at any time permit the Leverage Ratio to exceed 3.00 to
      1.00.

     

    (c)   Fixed
      Charge Coverage Ratio.
      The
      Borrowers will not permit at any time the Fixed Charge Coverage Ratio to be
      less
      than 1.10 to 1.00. 

     

    (d)  Asset
      Coverage Ratio.
      The
      Borrowers will not permit at any time the Asset Coverage Ratio to be less than
      the minimum ratio specified below during the period opposite such maximum
      amount:

     

    
      	
              Period

            	
              Minimum
                Ratio

            
	
               
Closing
                Date through September
                30, 2008

            	
              1.15
                to 1.00

            
	
               
                October 1, 2008 and thereafter

            	
              1.25
                to 1.00

            

    

    

     

    (e)   Maintenance
      of Profitability. 
      The Borrowers shall not permit Consolidated EBITDA less Consolidated Interest
      Expense to be less than zero for two consecutive fiscal quarters.

     

    Section
      7.08    Limitation
      on Certain Restrictive Agreements.
      Except
      as set forth on Schedule
      7.08,
      the
      Borrowers will not, and will not permit any of their respective Subsidiaries
      to,
      directly or indirectly, enter into, incur or permit to exist or become
      effective, any “negative pledge” covenant or other agreement, restriction or
      arrangement that prohibits, restricts or imposes any condition upon
      (a)
      the
      ability of a Borrower or any Subsidiary to create, incur or suffer to exist
      any
      Lien upon any of its property or assets as security for Indebtedness,
      or
      (b)
      the
      ability of any such Subsidiary to make Capital Distributions or any other
      interest or participation in its profits owned by the Borrowers or any
      Subsidiary, or pay any Indebtedness owed to the Borrowers or a Subsidiary,
      or to
      make loans or advances to the Borrowers or any other Subsidiaries, or transfer
      any of its property or assets to the Borrowers or any other Subsidiaries,
except
      for such
      restrictions existing under or by reason of
      (i)
      applicable law,
      (ii)
      this
      Agreement and the other Loan Documents,
      (iii)
      customary provisions restricting subletting or 

     

    
      
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    assignment
      of any lease governing a leasehold interest,
      (iv)
      customary provisions restricting assignment of any licensing agreement entered
      into in the ordinary course of business,
      (v)
      customary provisions restricting the transfer or further encumbering of assets
      subject to Liens permitted under Section 7.03(c),
      (vi)
      customary restrictions affecting only a Subsidiary under any agreement or
      instrument governing any of the Indebtedness of a Subsidiary permitted pursuant
      to Section 7.04,
      (vii) restrictions
      affecting any Foreign Subsidiary under any agreement or instrument governing
      any
      Indebtedness of such Foreign Subsidiary permitted pursuant to Section 7.04,
      and
      customary restrictions contained in “comfort” letters and guarantees of any such
      Indebtedness,
      (viii)
      any
      document relating to Indebtedness secured by a Lien permitted by Section 7.03,
      insofar as the provisions thereof limit grants of junior liens on the assets
      securing such Indebtedness, and
      (ix)
      any
      Operating Lease or Capital Lease, insofar as the provisions thereof limit grants
      of a security interest in, or other assignments of, the related leasehold
      interest to any other Person.

     

    Section
      7.09     Transactions
      with Affiliates.
      The
      Borrowers will not, and will not permit any Subsidiary to, enter into any
      transaction or series of transactions with any Affiliate (other than, in the
      case of the Borrowers, any Subsidiary, and in the case of a Subsidiary, the
      Borrowers or another Subsidiary) other than in the ordinary course of business
      of and pursuant to the reasonable requirements of such Borrower’s or such
      Subsidiary’s business and upon fair and reasonable terms no less favorable to
      such Borrower or such Subsidiary than would be obtained in a comparable
      arm’s-length transaction with a Person other than an Affiliate, except (i)
      sales of
      goods to an Affiliate for use or distribution outside the United States that
      in
      the good faith judgment of the Borrowers comply with any applicable legal
      requirements of the Code, or (ii) agreements and transactions with and payments
      to officers, directors and shareholders that are either
      (A)
      entered
      into in the ordinary course of business and not prohibited by any of the
      provisions of this Agreement, or
      (B) entered
      into outside the ordinary course of business, approved by the directors or
      shareholders of the Borrowers, and not prohibited by any of the provisions
      of
      this Agreement or in violation of any law, rule or regulation.

     

    Section
      7.10     Plan
      Terminations, Minimum Funding, etc.
      The
      Borrowers will not, and will not permit any Subsidiary or ERISA Affiliate
      to,
      (i)
      terminate any Plan or Plans so as to result in liability of the Borrowers or
      any
      ERISA Affiliate to the PBGC in excess of, in the aggregate, the amount that
      is
      equal to 5% of the Borrowers’ Consolidated Net Worth as of the date of the then
      most recent financial statements furnished to the Lenders pursuant to the
      provisions of this Agreement,
      (ii) permit
      to exist one or more events or conditions that present a material risk of the
      termination by the PBGC of any Plan or Plans with respect to which the Borrowers
      or any Subsidiary or ERISA Affiliate would, in the event of such termination,
      incur liability to the PBGC in excess of such amount in the aggregate,
(iii) fail
      to comply with the minimum funding standards of ERISA and the Code with respect
      to any Plan, or (iv) incur an obligation to contribute to, or become a
      contributing sponsor (as such term is defined in Section 4001 of ERISA) in,
      any
      Multi-Employer Plan or Multiple Employer Plan.

     

    Section
      7.11     RE
      Holdings Entities.
      From
      and after the Closing Date, the Borrowers shall not permit the RE Holdings
      Entities to acquire any additional assets, whether by purchase, lease or
      otherwise, that were not owned by such Subsidiaries as of the Closing
      Date.

     

    Section
      7.12     JPMorgan
      Securities Account.
      Notwithstanding anything contained in the Loan Documents to the contrary, the
      Borrowers shall not be permitted to request a Revolving Borrowing (other than
      any Revolving Borrowing requested on the Closing Date) or the issuance of any
      Letter of Credit (other than with respect to the Back-to-Back Letter of Credit
      issued on the Closing Date and any full or partial replacements thereof), and
      the Lenders shall not be required to make any Revolving Loans (other than any
      Revolving Loans made on the Closing Date) and the LC Issuer shall not be
      required to issue any Letter of Credit (other than the Back-to-Back Letter
      of
      Credit issued on the Closing Date and any full or partial replacements thereof),
      until such time as there is less than $1,000,000 on deposit in the 

     

    
      
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    JPMorgan
      Securities Account or there has been delivered a Control Agreement with respect
      to the JPMorgan Securities Account in form and substance satisfactory to the
      Administrative Agent; provided,
      however,
      that if
      the Borrowers request a Revolving Borrowing and the Lenders make a Revolving
      Loan or the Borrowers request the issuance of any Letter of Credit and the
      LC
      Issuer issues any Letter of Credit after the amount on deposit in the JPMorgan
      Securities Account is less than $1,000,000 but a Control Agreement has not
      been
      delivered, if the amount on deposit in the JPMorgan Securities Account at any
      time thereafter exceeds $1,000,000, the Lenders shall not be required to make
      any additional Revolving Loans and the LC Issuer shall not be required to issue
      any Letter of Credit until such time as the Borrowers shall have delivered
      a
      Control Agreement with respect to the JPMorgan Securities Account in form and
      substance satsifactory to the Administrative Agent.

     

    Section
      7.13 Anti-Terrorism
      Laws.
      Neither
      the Borrowers nor any of their Subsidiaries
      shall be
      subject to or in violation of any law, regulation, or list of any government
      agency (including, without limitation, the U.S. Office of Foreign Asset Control
      list, Executive Order No. 13224 or the USA Patriot Act) that prohibits or limits
      the conduct of business with or the receiving of funds, goods or services to
      or
      for the benefit of certain Persons specified therein or that prohibits or limits
      any Lender or LC Issuer from making any advance or extension of credit to the
      Borrowers or from otherwise conducting business with the Borrowers.

     

     

    ARTICLE
      VIII.

     

    EVENTS
      OF
      DEFAULT

     

    Section
      8.01     Events
      of Default.
      Any of
      the following specified events shall constitute an Event of Default (each an
      “Event
      of Default”):

     

    (a)   Payments:
      the
      Borrowers shall
      (i)
      default
      in the payment when due (whether at maturity, on a date fixed for a scheduled
      repayment, on a date on which a required prepayment is to be made, upon
      acceleration or otherwise) of any principal of the Loans or any reimbursement
      obligation in respect of any Unpaid Drawing; or
      (ii)
      default,
      and such default shall continue for three or more Business Days, in the payment
      when due of any interest on the Loans, any Fees or any other Obligations;
      or

     

    (b)   Representations,
      etc.:
      any
      representation, warranty or statement made by the Borrowers
      or
      any
      other Loan Party herein or in any other Loan Document or in any statement or
      certificate delivered or required to be delivered pursuant hereto or thereto
      shall prove to be untrue in any material respect on the date as of which made
      or
      deemed made; or

     

    (c)   Certain
      Covenants:
      the
      Borrowers shall
      default in the due performance or observance by it of any term, covenant or
      agreement contained in Sections 6.01, 6.09, 6.10, 6.11, 6.12 or Article VII
      of
      this Agreement; or

     

    (d)   Other
      Covenants:
      any
      Loan
      Party
      shall
      default in the due performance or observance by it of any term, covenant or
      agreement contained in this Agreement or any other Loan Document (other than
      those referred to in Section 8.01(a) or (b) or (c) above) and such default
      is
      not remedied within 30 days after the earlier of
      (i)
      an
      officer of any Loan Party obtaining knowledge of such default or
      (ii) the
      Borrowers receiving
      written notice of such default from the Administrative Agent or the Required
      Lenders (any such notice to be identified as a “notice of default” and to refer
      specifically to this paragraph); or

     

    (e)   Cross
      Default Under Other Agreements:
      the
      Borrowers or any of their Subsidiaries shall
      (i) default
      in any payment with respect to any Material Domestic Indebtedness (other than
      the 

     

    
      
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    Obligations),
      and such default shall continue after the applicable grace period, if any,
      specified in the agreement or instrument relating to such Material Domestic
      Indebtedness; or
      (ii)
      default
      in the observance or performance of any agreement or condition relating to
      any
      such Material Domestic Indebtedness or contained in any instrument or agreement
      evidencing, securing or relating thereto (and all grace periods applicable
      to
      such observance, performance or condition shall have expired), or any other
      event shall occur or condition exist, the effect of which default or other
      event
      or condition is to cause, or to permit the holder or holders of such Material
      Domestic Indebtedness (or a trustee or agent on behalf of such holder or
      holders) to cause any such Material Domestic Indebtedness to become due prior
      to
      its stated maturity; or any such Material Domestic Indebtedness of the Borrowers
      or any of their Subsidiaries shall be declared to be due and payable, or shall
      be required to be prepaid (other than by a regularly scheduled required
      prepayment or redemption, prior to the stated maturity thereof); or
      (iii)
      default
      in any payment with respect to any Material Foreign Indebtedness, and such
      default shall continue after the applicable grace period, if any, specified
      in
      the agreement or instrument relating to such Material Foreign Indebtedness;
      or
      (iv) other than the Australian Loan Defaults (so long as the Australian Lender
      shall not have taken any enforcement action with respect thereto), default
      in
      the observance or performance of any agreement or condition relating to any
      such
      Material Foreign Indebtedness or contained in any instrument or agreement
      evidencing, securing or relating thereto (and all grace periods applicable
      to
      such observance, performance or condition shall have expired), or any other
      event shall occur or condition exist, the effect of which default or other
      event
      or condition is to cause, or to permit the holder or holders of such Material
      Foreign Indebtedness (or a trustee or agent on behalf of such holder or holders)
      to cause any such Material Foreign Indebtedness to become due prior to its
      stated maturity; or any such Material Foreign Indebtedness of the Borrowers
      or
      any of their Subsidiaries shall be declared to be due and payable, or shall
      be
      required to be prepaid (other than by a regularly scheduled required prepayment
      or redemption, prior to the stated maturity thereof); or (v) without limitation
      of the foregoing clauses, default in any payment obligation under a Designated
      Hedge Agreement, and such default shall continue after the applicable grace
      period, if any, specified in such Designated Hedge Agreement or any other
      agreement or instrument relating thereto; or

     

    (f)   Invalidity
      of Loan Documents or Liens:
      any
      provision of any Loan Document, at any time after its execution and delivery
      and
      for any reason other than as expressly permitted hereunder or under such Loan
      Document or satisfaction in full of all the Obligations, ceases to be in full
      force and effect; or any Loan Party or any other Person contests in any manner
      the validity or enforceability of any provision of any Loan Document; or any
      Loan Party denies that it has any or further liability or obligation under
      any
      Loan Document, or purports to revoke, terminate or rescind any Loan Document;
      or

     

    (g)   Judgments:
      (i)
      one or
      more judgments, orders or decrees shall be entered against any Borrower and/or
      any of its Subsidiaries involving a liability (other than a liability covered
      by
      insurance, as to which the carrier has adequate claims paying ability and has
      not effectively reserved its rights) of $1,000,000 or more in the aggregate
      for
      all such judgments, orders and decrees for the Borrowers and their Subsidiaries,
      and any such judgments or orders or decrees shall not have been vacated,
      discharged or stayed or bonded pending appeal within 30 days (or such longer
      period, not in excess of 60 days, during which enforcement thereof, and the
      filing of any judgment lien, is effectively stayed or prohibited) from the
      entry
      thereof; or
      (ii)
      one or
      more judgments, orders or decrees shall be entered against any Borrower and/or
      any of its Subsidiaries involving a required divestiture of any material
      properties, assets or business reasonably estimated to have a fair value in
      excess of $1,000,000, and any such judgments, orders or decrees shall not have
      been vacated, discharged or stayed or bonded pending appeal within 30 days
      (or
      such longer period, not in excess of 60 days, during which enforcement thereof,
      and the filing of any judgment lien, is effectively stayed or prohibited) from
      the entry thereof; or

     

    (h)   Insolvency
      Event:
      any
      Insolvency Event shall occur with respect to any Borrower or any Subsidiary;
      or

     

    
      
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    (i)   ERISA:
      (i)
      any of
      the events described in clauses (i) through (xi) of Section 6.01(f) shall have
      occurred; and
      (ii)
      there
      shall result from any such event or events the imposition of a Lien, the
      granting of a security interest, or a liability or a material risk of incurring
      a liability; or

     

    (j)   Change
      of Control:
      if
      there occurs a Change of Control.

     

    Section
      8.02     Remedies.
      Upon
      the occurrence of any Event of Default, and at any time thereafter, if any
      Event
      of Default shall then be continuing, the Administrative Agent shall, upon the
      written request of the Required Lenders, by written notice to the Borrower
      Representative, take any or all of the following actions, without prejudice
      to
      the rights of the Administrative Agent or any Lender to enforce its claims
      against any Borrower or any other Loan Party in any manner permitted under
      applicable law:

     

    (a)   declare
      the Commitments
      terminated, whereupon the Commitment of each Lender shall forthwith terminate
      immediately without any other notice of any kind;

     

    (b)   declare
      the principal of
      and any accrued interest in respect of all Loans, all Unpaid Drawings and all
      other Obligations (other than any Obligations under any Designated Hedge
      Agreement) owing hereunder and thereunder to be, whereupon the same shall
      become, forthwith due and payable without presentment, demand, protest or other
      notice of any kind, all of which are hereby waived by the Borrower;

     

    (c)   terminate
      any Letter of Credit that may be terminated in accordance with its terms;
      or

     

    (d)   exercise
      any other right or remedy available under any of the Loan Documents or
      applicable law;

     

    provided
      that, if
      an Event of Default specified in Section 8.01(h) shall occur, the result that
      would occur upon the giving of written notice by the Administrative Agent as
      specified in clauses (a) and/or (b) above shall occur automatically without
      the
      giving of any such notice.

     

    Section
      8.03    Application
      of Certain Payments and Proceeds.
      All
      payments and other amounts received by the Administrative Agent or any Lender
      through the exercise of remedies hereunder or under the other Loan Documents
      shall, unless otherwise required by the terms of the other Loan Documents or
      by
      applicable law, be applied as follows:

     

    (i)   first,
      to the
      payment of that portion of the Obligations constituting fees, indemnities and
      expenses and other amounts (including attorneys’ fees and amounts due under
      Article III) payable to the Administrative Agent in its capacity as
      such;

     

    (ii)   second,
      to the
      payment of that portion of the Obligations constituting fees, indemnities and
      expenses (including attorneys’ fees and amounts due under Article III) payable
      to each Lender or each LC Issuer, ratably among them in proportion to the
      aggregate of all such amounts;

     

    (iii)   third,
      to the
      payment of that portion of the Obligations constituting accrued and unpaid
      interest on the Loans and Unpaid Drawings with respect to Letters of Credit,
      ratably among the Lenders in proportion to the aggregate of all such
      amounts;

     

    (iv)   fourth,
      pro
      rata
      to the
      payment of (A) that portion of the Obligations constituting unpaid principal
      of
      the Loans and Unpaid Drawings, ratably among the Lenders and each LC

     

    
      
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    Issuer
      in
      proportion to the aggregate of all such amounts, and (B) the amounts due to
      Designated Hedge Creditors under Designated Hedge Agreements subject to
      confirmation by the Administrative Agent that any calculations of termination
      or
      other payment obligations are being made in accordance with normal industry
      practice;

     

    (v)   fifth,
      to the
      Administrative Agent for the benefit of each LC Issuer to cash collateralize
      the
      Stated Amount of outstanding Letters of Credit;

     

    (vi)   sixth,
      to the
      payment of all other Obligations of the Loan Parties owing under or in respect
      of the Loan Documents that are then due and payable to the Administrative Agent,
      each LC Issuer, the Lenders and the Designated Hedge Creditors, ratably based
      upon the respective aggregate amounts of all such Obligations owing to them
      on
      such date; and

     

    (vii)   finally,
      any
      remaining surplus after all of the Obligations have been paid in full, to the
      Borrowers or to whomsoever shall be lawfully entitled thereto.

     

     

    ARTICLE
      IX.

     

    THE
      ADMINISTRATIVE AGENT

     

    Section
      9.01     Appointment.
      Each
      Lender hereby irrevocably designates and appoints KeyBank National Association
      to act as specified herein and in the other Loan Documents, and each such Lender
      hereby irrevocably authorizes KeyBank National Association as the Administrative
      Agent for such Lender, to take such action on its behalf under the provisions
      of
      this Agreement and the other Loan Documents and to exercise such powers and
      perform such duties as are expressly delegated to the Administrative Agent
      by
      the terms of this Agreement and the other Loan Documents, together with such
      other powers as are reasonably incidental thereto. The Administrative Agent
      agrees to act as such upon the express conditions contained in this Article.
      Notwithstanding any provision to the contrary elsewhere in this Agreement,
      the
      Administrative Agent shall not have any duties or responsibilities, except
      those
      expressly set forth herein or in the other Loan Documents, nor any fiduciary
      relationship with any Lender or LC Issuer, and no implied covenants, functions,
      responsibilities, duties, obligations or liabilities shall be read into this
      Agreement or otherwise exist against the Administrative Agent. The provisions
      of
      this Article are solely for the benefit of the Administrative Agent and the
      Lenders, and no Loan Party shall have any rights as a third-party beneficiary
      of
      any of the provisions hereof. In performing its functions and duties under
      this
      Agreement, the Administrative Agent shall act solely as agent of the Lenders
      and
      does not assume and shall not be deemed to have assumed any obligation or
      relationship of agency or trust with or for the Borrowers or any of their
      Subsidiaries.

     

    Section
      9.02    Delegation
      of Duties.
      The
      Administrative Agent may execute any of its duties under this Agreement or
      any
      other Loan Document by or through agents, sub-agents or attorneys-in-fact,
      and
      shall be entitled to advice of counsel concerning all matters pertaining to
      such
      duties. The Administrative Agent shall not be responsible for the negligence
      or
      misconduct of any agents, sub-agents or attorneys-in-fact selected by it with
      reasonable care except to the extent otherwise required by Section
      9.03.

     

    Section
      9.03    Exculpatory
      Provisions.
      Neither
      the Administrative Agent nor any of its Related Parties shall be (a) liable
      for
      any action lawfully taken or omitted to be taken by it or such Person under
      or
      in connection with this Agreement or any other Loan Document (except for its
      or
      such Related Parties’ own gross negligence or willful misconduct) or (b)
      responsible in any manner to any of the Lenders for any recitals, statements,
      representations or warranties made by the Borrowers or any of their Subsidiaries
      or any of their respective officers contained in this Agreement, any other
      Loan
      Document or 

     

    
      
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    in
      any
      certificate, report, statement or other document referred to or provided for
      in,
      or received by the Administrative Agent under or in connection with, this
      Agreement or any other Loan Document or for any failure of the Borrowers or
      any
      Subsidiary or any of their respective officers to perform its obligations
      hereunder or thereunder. The Administrative Agent shall not be under any
      obligation to any Lender to ascertain or to inquire as to the observance or
      performance of any of the agreements contained in, or conditions of, this
      Agreement or any other Loan Document, or to inspect the properties, books or
      records of the
      Borrowers or
      any
      Subsidiary. The Administrative Agent shall not be responsible to any Lender
      for
      the effectiveness, genuineness, validity, enforceability, collectibility or
      sufficiency of this Agreement or any Loan Document or for any representations,
      warranties, recitals or statements made herein or therein or made in any written
      or oral statement or in any financial or other statements, instruments, reports,
      certificates or any other documents in connection herewith or therewith
      furnished or made by the Administrative Agent to the Lenders or by or on behalf
      of the Borrowers or any of their Subsidiaries to the Administrative Agent or
      any
      Lender or be required to ascertain or inquire as to the performance or
      observance of any of the terms, conditions, provisions, covenants or agreements
      contained herein or therein or as to the use of the proceeds of the Loans or
      of
      the existence or possible existence of any Default or Event of
      Default.

     

    Section
      9.04     Reliance
      by Administrative Agent.
      The
      Administrative Agent shall be entitled to rely, and shall be fully protected
      in
      relying, upon any note, writing, resolution, notice, consent, certificate,
      affidavit, letter, cablegram, telegram, e-mail or other electronic transmission,
      facsimile transmission, telex or teletype message, statement, order or other
      document or conversation believed by it, in good faith, to be genuine and
      correct and to have been signed, sent or made by the proper Person or Persons
      and upon advice and statements of legal counsel (including, without limitation,
      counsel to the Borrowers or any of their Subsidiaries), independent accountants
      and other experts selected by the Administrative Agent. The Administrative
      Agent
      shall be fully justified in failing or refusing to take any action under this
      Agreement or any other Loan Document unless it shall first receive such advice
      or concurrence of the Required Lenders as it deems appropriate or it shall
      first
      be indemnified to its satisfaction by the Lenders against any and all liability
      and expense that may be incurred by it by reason of taking or continuing to
      take
      any such action. The Administrative Agent shall in all cases be fully protected
      in acting, or in refraining from acting, under this Agreement and the other
      Loan
      Documents in accordance with a request of the Required Lenders or all of the
      Lenders, as applicable, as to any matter that, pursuant to Section 11.12, can
      only be effectuated with the consent of all Required Lenders, or all applicable
      Lenders, as the case may be), and such request and any action taken or failure
      to act pursuant thereto shall be binding upon all the Lenders.

     

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

     

    Section
      9.06    Non-Reliance.
      Each
      Lender expressly acknowledges that neither the Administrative Agent nor any
      of
      its Related Parties has made any representations or warranties to it and that
      no
      act by the Administrative Agent hereinafter taken, including, without
      limitation, any review of the affairs of the Borrowers or any of their
      Subsidiaries, shall be deemed to constitute any representation or warranty
      by
      the Administrative Agent to any Lender. Each Lender represents to the
      Administrative 

     

    
      
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    Agent
      that it has, independently and without reliance upon the Administrative Agent,
      or any other Lender, and based on such documents and information as it has
      deemed appropriate, made its own appraisal of and investigation into the
      business, assets, operations, property, financial and other conditions,
      prospects and creditworthiness of the Borrowers and their Subsidiaries and
      made
      its own decision to make its Loans hereunder and enter into this Agreement.
      Each
      Lender also represents that it will, independently and without reliance upon
      the
      Administrative Agent, or any other Lender, and based on such documents and
      information as it shall deem appropriate at the time, continue to make its
      own
      credit analysis, appraisals and decisions in taking or not taking action under
      this Agreement, and to make such investigation as it deems necessary to inform
      itself as to the business, assets, operations, property, financial and other
      conditions, prospects and creditworthiness of the Borrowers and their
      Subsidiaries. The Administrative Agent shall not have any duty or responsibility
      to provide any Lender with any credit or other information concerning the
      business, operations, assets, property, financial and other conditions,
      prospects or creditworthiness of the Borrowers or any of their Subsidiaries
      that
      may come into the possession of the Administrative Agent or any of its Related
      Parties.

     

    Section
      9.07     No
      Reliance on Administrative Agent’s Customer Identification
      Program.
      Each
      Lender acknowledges and agrees that neither such Lender, nor any of its
      Affiliates, participants or assignees, may rely on the Administrative Agent
      to
      carry out such Lender’s, Affiliate’s, participant’s or assignee’s customer
      identification program, or other obligations required or imposed under or
      pursuant to the USA Patriot Act or the regulations thereunder, including the
      regulations contained in 31 CFR 103.121 (as hereafter amended or replaced,
      the
“CIP
      Regulations”),
      or
      any other Anti-Terrorism Law, including any programs involving any of the
      following items relating to or in connection with the Borrowers or any of their
      Subsidiaries, any of their respective Affiliates or agents, the Loan Documents
      or the transactions hereunder: (a) any
      identity verification procedures, (b) any record keeping, (c) any
      comparisons with government lists, (d) any customer notices or
      (e) any
      other
      procedures required under the CIP Regulations or such other laws.

     

    Section
      9.08    USA
      Patriot Act.
      Each
      Lender or assignee or participant of a Lender that is not organized under the
      laws of the United States of America or a state thereof (and is not excepted
      from the certification requirement contained in Section 313 of the USA Patriot
      Act and the applicable regulations because it is both (a) an
      affiliate of a depository institution or foreign bank that maintains a physical
      presence in the United States or foreign country, and (b) subject
      to supervision by a banking authority regulating such affiliated depository
      institution or foreign bank) shall deliver to the Administrative Agent the
      certification, or, if applicable, recertification, certifying that such Lender
      is not a “shell” and certifying to other matters as required by Section 313
      of the USA Patriot Act and the applicable regulations: (i) within
      10
      days after the Closing Date, and (ii) at such other times as are required
      under the USA Patriot Act.

     

    Section
      9.09    Indemnification.
      The
      Lenders agree to indemnify the Administrative Agent and its Related Parties,
      ratably according to their pro
      rata
      share of
      the Aggregate Credit Facility Exposure, from and against any and all
      liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
      costs, reasonable expenses or disbursements of any kind whatsoever that may
      at
      any time (including, without limitation, at any time following the payment
      of
      the Obligations) be imposed on, incurred by or asserted against the
      Administrative Agent or such Related Parties in any way relating to or arising
      out of this Agreement or any other Loan Document, or any documents contemplated
      by or referred to herein or the transactions contemplated hereby or any action
      taken or omitted to be taken by the Administrative Agent or such Related Parties
      under or in connection with any of the foregoing, but only to the extent that
      any of the foregoing is not paid by the Borrower; provided,
      however,
      that no
      Lender shall be liable to the Administrative Agent or any of its Related Parties
      for the payment of any portion of such liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses or disbursements
      to the extent resulting solely from the Administrative Agent’s or such Related
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    gross
      negligence or willful misconduct. If any indemnity furnished to the
      Administrative Agent or any such Related Parties for any purpose shall, in
      the
      opinion of the Administrative Agent, be insufficient or become impaired, the
      Administrative Agent may call for additional indemnity and cease, or not
      commence, to do the acts indemnified against until such additional indemnity
      is
      furnished. The agreements in this Section shall survive the payment of all
      Obligations.

     

    Section
      9.10     The
      Administrative Agent in Individual Capacity.
      The
      Administrative Agent and its Affiliates may make loans to, accept deposits
      from
      and generally engage in any kind of business with the Borrowers, their
      respective Subsidiaries and their respective Affiliates as though not acting
      as
      Administrative Agent hereunder. With respect to the Loans made by it and all
      Obligations owing to it, the Administrative Agent shall have the same rights
      and
      powers under this Agreement as any Lender and may exercise the same as though
      it
      were not the Administrative Agent, and the terms “Lender” and “Lenders” shall
      include the Administrative Agent in its individual capacity.

     

    Section
      9.11     Successor
      Administrative Agent.
      The
      Administrative Agent may resign at any time upon not less than 30 days notice
      to
      the Lenders, each LC Issuer and the Borrower. Upon receipt of any such notice
      of
      resignation, the Required Lenders shall have the right, in consultation with
      the
      Borrower Representative, to appoint a successor. If no such 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 Lenders and each LC Issuer, appoint a successor Administrative Agent;
      provided,
      however,
      that if
      the Administrative Agent shall notify the Borrower
      Representative and
      the
      Lenders that no such successor is willing to accept such appointment, then
      such
      resignation shall nonetheless become effective in accordance with such notice
      and (i) the retiring Administrative Agent shall be discharged from its
      duties and obligations hereunder and under the other Loan Documents (except
      that
      in the case of any collateral security held by the Administrative Agent on
      behalf of the Lenders or any LC Issuer under any of the Loan Documents, the
      retiring Administrative Agent shall continue to hold such collateral security
      until such time as a successor Administrative Agent is appointed) and
      (ii) all payments, communications and determinations provided to be made
      by, to or through the Administrative Agent shall instead be made by or to each
      Lender and LC Issuer directly, until such time as the Required Lenders appoint
      a
      successor Administrative Agent as provided for above in this paragraph. Upon
      the
      acceptance of a successor’s appointment as Administrative Agent hereunder, such
      successor shall succeed to and become vested with all of the rights, powers,
      privileges and duties of the retiring (or retired) Administrative Agent, and
      the
      retiring Administrative Agent shall be discharged from all of its duties and
      obligations hereunder or under the other Loan Documents (if not already
      discharged therefrom as provided above in this paragraph). The fees payable
      by
      the Borrowers to a successor Administrative Agent shall be the same as those
      payable to its predecessor unless otherwise agreed between the Borrowers and
      such successor. After the retiring Administrative Agent’s resignation hereunder
      and under the other Loan Documents, the provisions of this Article and Section
      11.02 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 the retiring
      Administrative Agent was acting as Administrative Agent.

     

    Section
      9.12     Other
      Agents.
      Any
      Lender identified herein as a Co-Agent, Syndication Agent, Documentation Agent,
      Managing Agent, Manager, Lead Arranger, Arranger or any other corresponding
      title, other than “Administrative Agent,” shall have no right, power,
      obligation, liability, responsibility or duty under this Agreement or any other
      Loan Document except those applicable to all Lenders as such. Each Lender
      acknowledges that it has not relied, and will not rely, on any Lender so
      identified in deciding to enter into this Agreement or in taking or not taking
      any action hereunder.

     

    
      
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    ARTICLE
      X.

     

    GUARANTY

     

    Section
      10.01     Guaranty
      by the Borrowers.
      The
      Borrowers hereby unconditionally guarantee, for the benefit of the Benefited
      Creditors, all of the following (collectively, the “Borrower
      Guaranteed Obligations”):
      (a)
      all reimbursement obligations and Unpaid Drawings with respect to Letters of
      Credit issued for the benefit of any LC Obligor (other than such Borrower)
      under
      this Agreement, and (b) all amounts, indemnities and reimbursement obligations,
      direct or indirect, contingent or absolute, of every type or description, and
      at
      any time existing owing by any Subsidiary under any Designated Hedge Agreement
      or any other document or agreement executed and delivered in connection
      therewith to any Designated Hedge Creditor, in all cases under subparts (a)
      or
      (b) above, whether now existing, or hereafter incurred or arising, including
      any
      such interest or other amounts incurred or arising during the pendency of any
      bankruptcy, insolvency, reorganization, receivership or similar proceeding,
      regardless of whether allowed or allowable in such proceeding or subject to
      an
      automatic stay under Section 362(a) of the Bankruptcy Code). Upon failure by
      any
      Loan Party to pay punctually any of the Borrower Guaranteed Obligations, the
      Borrowers shall forthwith on demand by the Administrative Agent pay the amount
      not so paid at the place and in the currency and otherwise in the manner
      specified in this Agreement or any other applicable agreement or
      instrument.

     

    Section
      10.02     Additional
      Undertaking.
      As a
      separate, additional and continuing obligation, the Borrowers unconditionally
      and irrevocably undertake and agree, for the benefit of the Benefited Creditors
      that, should any Borrower Guaranteed Obligations not be recoverable from the
      Borrowers under Section 10.01 for any reason whatsoever (including, without
      limitation, by reason of any provision of any Loan Document or any other
      agreement or instrument executed in connection therewith being or becoming
      void,
      unenforceable, or otherwise invalid under any applicable law) then,
      notwithstanding any notice or knowledge thereof by any Lender, the
      Administrative Agent, any of their respective Affiliates, or any other person,
      at any time, the Borrowers as sole, original and independent obligor, upon
      demand by the Administrative Agent, will make payment to the Administrative
      Agent, for the account of the Benefited Creditors, of all such obligations
      not
      so recoverable by way of full indemnity, in such currency and otherwise in
      such
      manner as is provided in the Loan Documents or any other applicable agreement
      or
      instrument.

     

    Section
      10.03     Guaranty
      Unconditional.
      The
      obligations of the Borrowers under this Article shall be unconditional and
      absolute and, without limiting the generality of the foregoing shall not be
      released, discharged or otherwise affected by the occurrence, one or more times,
      of any of the following:

     

    (a)   any
      extension, renewal, settlement, compromise, waiver or release in respect to
      the
      Borrower Guaranteed Obligations under any agreement or instrument, by operation
      of law or otherwise;

     

    (b)   any
      modification or amendment of or supplement to this Agreement, any Note, any
      other Loan Document, or any agreement or instrument evidencing or relating
      to
      any Company Guaranteed Obligation;

     

    (c)   any
      release, non-perfection or invalidity of any direct or indirect security for
      the
      Borrower Guaranteed Obligations under any agreement or instrument evidencing
      or
      relating to any Borrower Guaranteed Obligations;

     

    (d)   any
      change in the corporate existence, structure or ownership of any Loan Party
      or
      other Subsidiary or any insolvency, bankruptcy, reorganization or other similar
      proceeding affecting any Loan Party or other Subsidiary or its assets or any
      resulting release or discharge of any obligation of any Loan 

     

    
      
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    Party
      or
      other Subsidiary contained in any agreement or instrument evidencing or relating
      to any of the Borrower Guaranteed Obligations;

     

    (e)   the
      existence of any claim, set-off or other rights which the Borrowers may have
      at
      any time against any other Loan Party, the Administrative Agent, any Lender,
      any
      Affiliate of any Lender or any other Person, whether in connection herewith
      or
      any unrelated transactions;

     

    (f)   any
      invalidity or unenforceability relating to or against any other Loan Party
      for
      any reason of any agreement or instrument evidencing or relating to any of
      the
      Borrower Guaranteed Obligations, or any provision of applicable law or
      regulation purporting to prohibit the payment by any Loan Party of any of the
      Borrower Guaranteed Obligations; or

     

    (g)   any
      other
      act or omission of any kind by any other Loan Party, the Administrative Agent,
      any Lender or any other Person or any other circumstance whatsoever which might,
      but for the provisions of this Article, constitute a legal or equitable
      discharge of the Borrowers’ obligations under this Section other than the
      irrevocable payment in full of all Borrower Guaranteed Obligations.

     

    Section
      10.04    Borrowers
      Obligations to Remain in Effect; Restoration.
      The
      Borrowers’ obligations under this Article shall remain in full force and effect
      until the Commitments shall have terminated, and the principal of and interest
      on the Notes and other Borrower Guaranteed Obligations, and all other amounts
      payable by the Borrowers, any other Loan Party or other Subsidiary, under the
      Loan Documents or any other agreement or instrument evidencing or relating
      to
      any of the Borrower Guaranteed Obligations, shall have been paid in full. If
      at
      any time any payment of any of the Borrower Guaranteed Obligations is rescinded
      or must be otherwise restored or returned upon the insolvency, bankruptcy or
      reorganization of such Loan Party, the Borrowers’ obligations under this Article
      with respect to such payment shall be reinstated at such time as though such
      payment had been due but not made at such time.

     

    Section
      10.05    Waiver
      of Acceptance, etc.
      The
      Borrowers irrevocably waive acceptance hereof, presentment, demand, protest
      and
      any notice not provided for herein, as well as any requirement that at any
      time
      any action be taken by any person against any other Loan Party or any other
      Person, or against any collateral or guaranty of any other Person.

     

    Section
      10.06    Subrogation.
      Until
      the indefeasible payment in full of all of the Obligations and the termination
      of the Commitments hereunder, the Borrowers shall have no rights, by operation
      of law or otherwise, upon making any payment under this Section to be subrogated
      to the rights of the payee against any other Loan Party with respect to such
      payment or otherwise to be reimbursed, indemnified or exonerated by any such
      Loan Party in respect thereof.

     

    Section
      10.07    Effect
      of Stay.
      In the
      event that acceleration of the time for payment of any amount payable by any
      Loan Party under any of the Borrower Guaranteed Obligations is stayed upon
      insolvency, bankruptcy or reorganization of such Loan Party, all such amounts
      otherwise subject to acceleration under the terms of any applicable agreement
      or
      instrument evidencing or relating to any of the Borrower Guaranteed Obligations
      shall nonetheless be payable by the Borrowers under this Article forthwith
      on
      demand by the Administrative Agent.

     

    
      
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    ARTICLE
      XI.

     

    MISCELLANEOUS

     

    Section
      11.01     Payment
      of Expenses etc.
      The
      Borrowers agree to pay (or reimburse the Administrative Agent, the Lenders
      or
      their Affiliates, as the case may be) all of the following: (i) whether
      or
      not the transactions contemplated hereby are consummated, for all reasonable
      out-of-pocket costs and expenses of the Administrative Agent in connection
      with
      the negotiation, preparation, syndication, administration and execution and
      delivery of the Loan Documents and the documents and instruments referred to
      therein and the syndication of the Commitments; (ii) all reasonable
      out-of-pocket costs and expenses of the Administrative Agent and the
Administrative
      Agent
      in
      connection with any amendment, waiver or consent relating to any of the Loan
      Documents that are requested by any Loan Party; (iii) all reasonable
      out-of-pocket costs and expenses of the Administrative Agent, the Lenders and
      their Affiliates in connection with the enforcement of any of the Loan Documents
      or the other documents and instruments referred to therein, including, without
      limitation,  the
      reasonable fees and disbursements of any individual counsel to the
      Administrative Agent and any Lender (including, without limitation, allocated
      costs of internal counsel); and (iv) any and all present and future stamp and
      other similar taxes with respect to the foregoing matters and save the
Administrative
      Agent
      and each
      of the Lenders harmless from and against any and all liabilities with respect
      to
      or resulting from any delay or omission (other than to the extent attributable
      to any such indemnified Person) to pay such taxes.

     

    Section
      11.02     Indemnification.
      The
      Borrowers agree to indemnify the Administrative Agent, each Lender, and their
      respective Related Parties (collectively, the “Indemnitees”)
      from
      and hold each of them harmless against any and all losses, liabilities, claims,
      damages or expenses reasonably incurred by any of them as a result of, or
      arising out of, or in any way related to, or by reason of (i) any investigation,
      litigation or other proceeding (whether or not any Lender is a party thereto)
      related to the entering into and/or performance of any Loan Document or the
      use
      of the proceeds of any Loans hereunder or the consummation of any transactions
      contemplated in any Loan Document, other than any such investigation, litigation
      or proceeding arising out of transactions solely between any of the Lenders
      or
      the Administrative Agent, transactions solely involving the assignment by a
      Lender of all or a portion of its Loans and Commitments, or the granting of
      participations therein, as provided in this Agreement, or arising solely out
      of
      any examination of a Lender by any regulatory or other Governmental Authority
      having jurisdiction over it, or (ii) the actual or alleged presence of Hazardous
      Materials in violation of Environmental Laws in the air, surface water or
      groundwater or on the surface or subsurface of any Real Property owned, leased
      or at any time operated by the Borrowers or any of their Subsidiaries, the
      release, generation, storage, transportation, handling or disposal of Hazardous
      Materials in violation of Environmental Laws at any location, whether or not
      owned or operated by the Borrowers or any of their Subsidiaries, if such
      Borrower or any such Subsidiary could have or is alleged to have any
      responsibility in respect thereof, the non-compliance of any such Real Property
      with foreign, federal, state and local laws, regulations and ordinances
      (including applicable permits thereunder) applicable thereto, or any
      Environmental Claim asserted against the Borrowers or any of their Subsidiaries,
      in respect of any such Real Property, including, in the case of each of (i)
      and
      (ii) above, without limitation, the reasonable documented fees and disbursements
      of counsel incurred in connection with any such investigation, litigation or
      other proceeding (but excluding any such losses, liabilities, claims, damages
      or
      expenses to the extent incurred by reason of the gross negligence or willful
      misconduct of the Person to be indemnified or of any other Indemnitee who is
      such Person or an Affiliate of such Person). To the extent that the undertaking
      to indemnify, pay or hold harmless any Person set forth in the preceding
      sentence may be unenforceable because it is violative of any law or public
      policy, the Borrowers shall make the maximum contribution to the payment and
      satisfaction of each of the indemnified liabilities that is permissible under
      applicable law.

     

    
      
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    Section
      11.03     Right
      of Setoff.
      In
      addition to any rights now or hereafter granted under applicable law or
      otherwise, and not by way of limitation of any such rights, upon the occurrence
      and during the continuance of an Event of Default, each Lender and each LC
      Issuer is hereby authorized at any time or from time to time, without
      presentment, demand, protest or other notice of any kind to the
      Borrower
      Representative or to any other Person, any such notice being hereby expressly
      waived, to set off and to appropriate and apply any and all deposits (general
      or
      special) and any other Indebtedness at any time held or owing by such Lender
      or
      such LC Issuer (including, without limitation, by branches, agencies and
      Affiliates of such Lender or LC Issuer wherever located) to or for the credit
      or
      the account of the
      Borrowers against
      and on account of the Obligations and liabilities of the Borrowers
      to
      such
      Lender or LC Issuer under this Agreement or under any of the other Loan
      Documents, including, without limitation, all claims of any nature or
      description arising out of or connected with this Agreement or any other Loan
      Document, irrespective of whether or not such Lender or LC Issuer shall have
      made any demand hereunder and although said Obligations, liabilities or claims,
      or any of them, shall be contingent or unmatured. Each Lender and LC Issuer
      agrees to promptly notify the Borrower Representative after any such set off
      and
      application, provided,
      however,
      that
      the failure to give such notice shall not affect the validity of such set off
      and application.

     

    Section
      11.04     Equalization.

     

    (a)   Equalization.
      If at
      any time any Lender receives any amount hereunder (whether by voluntary payment,
      by realization upon security, by the exercise of the right of setoff or banker’s
      lien, by counterclaim or cross action, by the enforcement of any right under
      the
      Loan Documents, or otherwise) that is applicable to the payment of the principal
      of, or interest on, the Loans, LC Participations or Fees (other than Fees that
      are intended to be paid solely to the Administrative Agent or an LC Issuer
      and
      amounts payable to a Lender under Article III), of a sum that with respect
      to
      the related sum or sums received by other Lenders is in a greater proportion
      than the total of such Obligation then owed and due to such Lender bears to
      the
      total of such Obligation then owed and due to all of the Lenders immediately
      prior to such receipt, then
      such
      Lender receiving such excess payment shall purchase for cash without recourse
      or
      warranty from the other Lenders an interest in the Obligations to such Lenders
      in such amount as shall result in a proportional participation by all of the
      Lenders in such amount.

     

    (b)  Recovery
      of Amounts.
      If any
      amount paid to any Lender pursuant to subparts (i) or (ii) above is recovered
      in
      whole or in part from such Lender, such original purchase shall be rescinded,
      and the purchase price restored ratably to the extent of the
      recovery.

     

    (c)  Consent
      of Borrower.
      The
      Borrowers consent to the foregoing and agrees, to the extent it may effectively
      do so under applicable law, that any Lender acquiring a participation pursuant
      to the foregoing arrangements may exercise against the Borrowers rights of
      set-off and counterclaim with respect to such participation as fully as if
      such
      Lender were a direct creditor of the Borrowers in the amount of such
      participation.

     

    Section
      11.05     Notices.
      

     

    (a)   Generally.
      Except
      in the case of notices and other communications expressly permitted to be given
      by telephone (and except as provided in subpart (c) below), 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 telecopier as follows:

     

    (i)   if
      to any
      Borrower or any other Loan Party, c/o the Borrower Representative, at 1811
      Bering Drive, Suite 200, Houston, Texas 77057, Attention: Chief Financial
      Officer (Telecopier No. 713-335-2222; Telephone No. 713-351-4129;

     

    
      
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    (ii)   if
      to the
      Administrative Agent, to it at the Notice Office; and

     

    (iii)   if
      to a
      Lender, to it at its address (or telecopier number) set forth next to its name
      on the signature pages hereto or, in the case of any Lender that becomes a
      party
      to this Agreement by way of assignment under Section 11.04 of this Agreement,
      to
      it at the address set forth in the Assignment Agreement to which it is a
      party.

     

    (b)   Receipt
      of Notices.
      Notices
      and communications sent by hand or overnight courier service, or mailed by
      certified or registered mail, shall be deemed to have been given when received;
      notices sent by telecopier shall be deemed to have been given when sent and
      receipt has been confirmed by telephone. Notices delivered through electronic
      communications to the extent provided in subpart (c) below shall be effective
      as
      provided in said subpart (c).

     

    (c)   Electronic
      Communications.
      Notices
      and other communications to the Administrative Agent, an LC Issuer or any Lender
      hereunder and required to be delivered pursuant to Sections 6.01(a), (b), (c),
      (d), (h) or (i) may be delivered or furnished by electronic communication
      (including e-mail and Internet or intranet web sites) pursuant to procedures
      approved by the Administrative Agent. The Administrative Agent and the Borrowers
      may, in their discretion, agree in a separate writing to accept notices and
      other communications to them hereunder by electronic communications pursuant
      to
      procedures approved by it, provided
      that
      approval of such procedures may be limited to particular notices or
      communications. Unless the Administrative Agent otherwise prescribes,
      (i) notices and other communications sent to an e-mail address shall be
      deemed received upon the sender’s receipt of an acknowledgement from the
      intended recipient (such as by the “return receipt requested” function, as
      available, return e-mail or other written acknowledgement), provided
      that if
      such notice or other communication is not sent during the normal business hours
      of the recipient, such notice or communication shall be deemed to have been
      sent
      at the opening of business on the next Business Day for the recipient, and
      (ii) notices or communications posted to an Internet or intranet web site
      shall be deemed received upon the deemed receipt by the intended recipient
      at
      its e-mail address as described in the foregoing clause (i) of notification
      that such notice or communication is available and identifying the web site
      address therefor.

     

    (d)   Change
      of Address, Etc.
      Any
      party hereto may change its address or telecopier number for notices and other
      communications hereunder by notice to each of the other parties hereto in
      accordance with Section 11.05(a).

     

    Section
      11.06    Successors
      and Assigns.

     

    (a)   Successors
      and Assigns Generally.
      This
      Agreement shall be binding upon and inure to the benefit of and be enforceable
      by the parties hereto and their respective successors and assigns; provided,
      however,
      that the
      Borrowers may not assign or transfer any of its rights or obligations hereunder
      without the prior written consent of all the Lenders, provided,
      further,
      that
      any assignment or participation by a Lender of any of its rights and obligations
      hereunder shall be effected in accordance with this Section 11.06.

     

    (b)   Participations.
      Each
      Lender may at any time grant participations in any of its rights hereunder
      or
      under any of the Notes to an Eligible Assignee, provided
      that in
      the case of any such participation,

     

    (i)   the
      participant shall not have any rights under this Agreement or any of the other
      Loan Documents, including rights of consent, approval or waiver (the
      participant’s rights against 

     

    
      
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    such
      Lender in respect of such participation to be those set forth in the agreement
      executed by such Lender in favor of the participant relating
      thereto),

     

    (ii)   such
      Lender’s obligations under this Agreement (including, without limitation, its
      Commitments hereunder) shall remain unchanged,

     

    (iii)   such
      Lender shall remain solely responsible to the other parties hereto for the
      performance of such obligations,

     

    (iv)   such
      Lender shall remain the holder of the Obligations owing to it and of any Note
      issued to it for all purposes of this Agreement, and

     

    (v)   the
      Borrowers, the Administrative Agent, and the other Lenders shall continue to
      deal solely and directly with the selling Lender in connection with such
      Lender’s rights and obligations under this Agreement, and all amounts payable by
      the Borrowers hereunder shall be determined as if such Lender had not sold
      such
      participation, except that the participant shall be entitled to the benefits
      of
      Article III to the extent that such Lender would be entitled to such benefits
      if
      the participation had not been entered into or sold,

     

    and,
      provided
      further,
      that no
      Lender shall transfer, grant or sell any participation under which the
      participant shall have rights to approve any amendment to or waiver of this
      Agreement or any other Loan Document except to the extent such amendment or
      waiver would (x) extend the final scheduled maturity of the date of any
      Scheduled Repayment of any of the Loans in which such participant is
      participating, or reduce the rate or extend the time of payment of interest
      or
      Fees thereon (except in connection with a waiver of the applicability of any
      post-default increase in interest rates), or reduce the principal amount
      thereof, or increase such participant’s participating interest in any Commitment
      over the amount thereof then in effect (it being understood that a waiver of
      any
      Default or Event of Default shall not constitute a change in the terms of any
      such Commitment), (y) release all or any substantial portion of the Collateral,
      or release any guarantor from its guaranty of any of the Obligations, except
      strictly in accordance with the terms of the Loan Documents, or (z) consent
      to
      the assignment or transfer by the
      Borrowers of
      any of
      its rights and obligations under this Agreement.

     

    (c)   Assignments
      by Lenders.

     

    (i)   Any
      Lender may assign all, or if less than all, a fixed portion, of its Loans,
      LC
      Participations and/or Commitments and its rights and obligations hereunder
      to
      one or more Eligible Assignees, each of which shall become a party to this
      Agreement as a Lender by execution of an Assignment Agreement; provided,
      however,
      that

     

    (A)   except
      in
      the case of (x) an assignment of the entire remaining amount of the assigning
      Lender’s Loans and/or Commitments or (y) an assignment to another Lender, an
      Affiliate of such Lender or an Approved Fund with respect to such Lender, the
      aggregate amount of the Commitment so assigned (which for this purpose includes
      the Loans outstanding thereunder) shall not be less than
      $2,500,000;

     

    (B)   in
      the
      case of any assignment to an Eligible Assignee at the time of any such
      assignment the Lender Register shall be deemed modified to reflect the
      Commitments of such new Lender and of the existing Lenders;

     

    
      
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    (C)   upon
      surrender of the old Notes, if any, upon request of the new Lender, new Notes
      will be issued, at the Borrowers’ expense, to such new Lender and to the
      assigning Lender, to the extent needed to reflect the revised Commitments;
      and

     

    (D)   unless
      waived by the Administrative Agent, the Administrative Agent shall receive
      at
      the time of each such assignment, from the assigning or assignee Lender, the
      payment of a non-refundable assignment fee of $3,500.

     

    (ii)   To
      the
      extent of any assignment pursuant to this subpart (c), the assigning Lender
      shall be relieved of its obligations hereunder with respect to its assigned
      Commitments.

     

    (iii)   At
      the
      time of each assignment pursuant to this subpart (c), to a Person that is not
      already a Lender hereunder and that is not a United States Person (as such
      term
      is defined in Section 7701(a)(30) of the Code) for Federal income tax purposes,
      the respective assignee Lender shall provide to the Borrower Representative
      and
      the Administrative Agent the applicable Internal Revenue Service Forms (and
      any
      necessary additional documentation) described in Section 3.03(b).

     

    (iv)   With
      respect to any
      Lender, the transfer of any Commitment of such Lender and the rights to the
      principal of, and interest on, any Loan made pursuant to such Commitment shall
      not be effective until such transfer is recorded on the Lender Register
      maintained by the Administrative Agent with respect to ownership of such
      Commitment and Loans and prior to such recordation all amounts owing to the
      transferor with respect to such Commitment and Loans shall remain owing to
      the
      transferor. The registration of assignment or transfer of all or part of any
      Commitments and Loans shall be recorded by the Administrative Agent on the
      Lender Register only upon the acceptance by the Administrative Agent of a
      properly executed and delivered Assignment Agreement pursuant to this subpart
      (c). 

     

    (v)   Nothing
      in this Section shall prevent or prohibit (A) any Lender that is a bank, trust
      company or other financial institution from pledging its Notes or Loans to
      a
      Federal Reserve Bank in support of borrowings made by such Lender from such
      Federal Reserve Bank, or (B) any Lender that is a trust, limited liability
      company, partnership or other investment company from pledging its Notes or
      Loans to a trustee or agent for the benefit of holders of certificates or debt
      securities issued by it. No such pledge, or any assignment pursuant to or in
      lieu of an enforcement of such a pledge, shall relieve the transferor Lender
      from its obligations hereunder.

     

    (d)   No
      SEC
      Registration or Blue Sky Compliance.
      Notwithstanding any other provisions of this Section, no transfer or assignment
      of the interests or obligations of any Lender hereunder or any grant of
      participation therein shall be permitted if such transfer, assignment or grant
      would require the
      Borrowers to
      file a
      registration statement with the SEC or to qualify the Loans under the “Blue Sky”
laws of any State.

     

    (e)   Representations
      of Lenders.
      Each
      Lender initially party to this Agreement hereby represents, and each Person
      that
      becomes a Lender pursuant to an assignment permitted by this Section will,
      upon
      its becoming party to this Agreement, represents that it is a commercial lender,
      other financial institution or other “accredited” investor (as defined in SEC
      Regulation D) that makes or acquires loans in the ordinary course of its
      business and that it will make or acquire Loans for its own account in the
      ordinary course of such business; provided,
      however,
      that
      subject to the preceding Sections 11.06(b) and (c), the disposition of any
      promissory notes or other evidences of or interests in Indebtedness held by
      such
      Lender shall at all times be within its exclusive control.

     

    
      
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    Section
      11.07    No
      Waiver; Remedies Cumulative.
      No
      failure or delay on the part of the Administrative Agent or any Lender in
      exercising any right, power or privilege hereunder or under any other Loan
      Document and no course of dealing between the Borrowers
      and
      the
      Administrative Agent or any Lender shall operate as a waiver thereof; nor shall
      any single or partial exercise of any right, power or privilege hereunder or
      under any other Loan Document preclude any other or further exercise thereof
      or
      the exercise of any other right, power or privilege hereunder or thereunder.
      No
      notice to or demand on the
      Borrowers in
      any
      case shall entitle the Borrowers
      to
      any
      other or further notice or demand in similar or other circumstances or
      constitute a waiver of the rights of the Administrative Agent or the Lenders
      to
      any other or further action in any circumstances without notice or demand.
      Without limiting the generality of the foregoing, the making of a Loan or any
      LC
      Issuance shall not be construed as a waiver of any Default or Event of Default,
      regardless of whether the Administrative Agent, any Lender or any LC Issuer
      may
      have had notice or knowledge of such Default or Event of Default at the time.
      The rights and remedies herein expressly provided are cumulative and not
      exclusive of any rights or remedies that the Administrative Agent or any Lender
      would otherwise have.

     

    Section
      11.08    Governing
      Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial.
      ཉ
      THIS
      AGREEMENT AND THE OTHER LOAN DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE
      PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND
      BE
      GOVERNED BY THE LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO CONFLICTS OF LAW
      PRINCIPLES. TO THE FULLEST EXTENT PERMITTED BY LAW, THE BORROWERS HEREBY
      UNCONDITIONALLY AND IRREVOCABLY WAIVE ANY CLAIM TO ASSERT THAT THE LAW OF ANY
      JURISDICTION OTHER THAN THE STATE OF TEXAS GOVERNS THIS AGREEMENT OR ANY OF
      THE
      OTHER LOAN DOCUMENTS. Any legal action or proceeding with respect to this
      Agreement or any other Loan Document may be brought in any court located in
      Harris County, Texas or in any court of the United States for the Southern
      District of Texas, Houston Division, and, by execution and delivery of this
      Agreement, each Borrower hereby irrevocably accepts for itself and in respect
      of
      its property, generally and unconditionally, the jurisdiction of the aforesaid
      courts. The Borrowers hereby further irrevocably consent to the service of
      process out of any of the aforementioned courts in any such action or proceeding
      by the mailing of copies thereof by registered or certified mail, postage
      prepaid, to the Borrower Representative at its address for notices pursuant
      to
      Section 11.05, such service to become effective 30 days after such mailing
      or at
      such earlier time as may be provided under applicable law. Nothing herein shall
      affect the right of the Administrative Agent or any Lender to serve process
      in
      any other manner permitted by law or to commence legal proceedings or otherwise
      proceed against the Borrowers in any other jurisdiction.

     

    (b)   The
      Borrowers hereby irrevocably waive any objection that they may now or hereafter
      have to the laying of venue of any of the aforesaid actions or proceedings
      arising out of or in connection with this Agreement or any other Loan Document
      brought in the courts referred to in Section 11.08(a) above and hereby further
      irrevocably waive and agree not to plead or claim in any such court that any
      such action or proceeding brought in any such court has been brought in an
      inconvenient forum.

     

    (c)   EACH
      OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL
      BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING
      TO
      THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS (INCLUDING, WITHOUT
      LIMITATION, ANY AMENDMENTS, WAIVERS OR OTHER MODIFICATIONS RELATING TO ANY
      OF
      THE FOREGOING), OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY
      HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
      OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
      WOULD
      NOT, IN THE EVENT OF 

     

    
      
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    LITIGATION,
      SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE
      OTHER
      PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
      THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
      PARAGRAPH.

     

    Section
      11.09     Counterparts.
      This
      Agreement may be executed in any number of counterparts and by the different
      parties hereto on separate counterparts, each of which when so executed and
      delivered shall be an original, but all of which shall together constitute
      one
      and the same agreement. A set of counterparts executed by all the parties hereto
      shall be lodged with the Borrower Representative and the Administrative
      Agent.

     

    Section
      11.10     Integration.
      This
      Agreement, the other Loan Documents and any separate letter agreements with
      respect to fees payable to the Administrative Agent, for its own account and
      benefit and/or for the account, benefit of, and distribution to, the Lenders,
      constitute the entire contract among the parties relating to the subject matter
      hereof and thereof and supersede any and all previous agreements and
      understandings, oral or written, relating to the subject matter hereof or
      thereof.

     

    Section
      11.11     Headings
      Descriptive.
      The
      headings of the several Sections and other portions of this Agreement are
      inserted for convenience only and shall not in any way affect the meaning or
      construction of any provision of this Agreement.

     

    Section
      11.12     Amendment
      or Waiver.
      

     

    (a)   Neither
      this Agreement nor any other Loan Document, nor any terms hereof or thereof,
      may
      be amended, changed, waived or otherwise modified unless
      such
      amendment, change, waiver or other modification is in writing and signed by
      the
      Borrowers, the Administrative Agent, and the Required Lenders or by the
      Administrative Agent acting at the written direction of the Required Lenders;
      provided,
      however,
      that

     

    (i)   no
      change, waiver or other modification shall:

     

    (A)   increase
      the amount of any Commitment of any Lender hereunder, without the written
      consent of such Lender or increase the Total Credit Facility Amount without
      the
      consent of all the Lenders;

     

    (B)   extend
      or
      postpone the Revolving Facility Termination Date, the Term Loan Maturity Date
      or
      the maturity date provided for herein that is applicable to any Loan of any
      Lender, extend or postpone the expiration date of any Letter of Credit as to
      which such Lender is an LC Participant beyond the latest expiration date for
      a
      Letter of Credit provided for herein, or extend or postpone any scheduled
      expiration or termination date provided for herein that is applicable to a
      Commitment of any Lender, without the written consent of such
      Lender;

     

    (C)   reduce
      the principal amount of any Loan made by any Lender, or reduce the rate or
      extend the time of payment of, or excuse the payment of, interest thereon (other
      than as a result of (x) waiving the applicability of any post-default
      increase in interest rates or (y) any amendment or modification of defined
      terms used in financial covenants), without the written consent of such
      Lender;

     

    (D)   reduce
      the amount of any Unpaid Drawing as to which any Lender is an LC Participant,
      or
      reduce the rate or extend the time of payment of, or excuse the 

     

    
      
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    payment
      of, interest thereon (other than as a result of waiving the applicability of
      any
      post-default increase in interest rates), without the written consent of such
      Lender; or

     

    (E)   reduce
      the rate or extend the time of payment of, or excuse the payment of, any Fees
      to
      which any Lender is entitled hereunder, without the written consent of such
      Lender; and

     

    (ii)   no
      change, waiver or other modification or termination shall, without the written
      consent of each Lender affected thereby,

     

    (A)   release
      the
      Borrowers from
      any
      of their obligations hereunder;

     

    (B)   release
      the Borrowers from their guaranty obligations under Article X or release any
      Loan Party from the Subsidiary Guaranty, except,
      in the
      case of a Subsidiary Guarantor, in accordance with a transaction permitted
      under
      this Agreement;

     

    (C)   release
      all or any substantial portion of the Collateral, except
      in
      accordance with Section 2.19 or in connection with a transaction permitted
      under
      this Agreement;

     

    (D)   amend,
      modify or waive any provision of this Section 11.12, Section 8.03, or any other
      provision of any of the Loan Documents pursuant to which the consent or approval
      of all Lenders, or a number or specified percentage or other required grouping
      of Lenders or Lenders having Commitments, is by the terms of such provision
      explicitly required;

     

    (E)   reduce
      the percentage specified in, or otherwise modify, the definition of Required
      Lenders; or

     

    (F)   consent
      to the assignment or transfer by the
      Borrowers of
      any of
      its rights and obligations under this Agreement.

     

    Any
      waiver or consent with respect to this Agreement given or made in accordance
      with this Section shall be effective only in the specific instance and for
      the
      specific purpose for which it was given or made.

     

    (b)   No
      provision of Section 2.05 or any other provision in this Agreement specifically
      relating to Letters of Credit may be amended without the consent of any LC
      Issuer adversely affected thereby.

     

    (c)   No
      provision of Article IX may be amended without the consent of the Administrative
      Agent.

     

    (d)   To
      the
      extent the Required Lenders (or all of the Lenders, as applicable, as shall
      be
      required by this Section) waive the provisions of Section 7.02 with respect
      to
      the sale, transfer or other disposition of any Collateral, or any Collateral
      is
      sold, transferred or disposed of as permitted by Section 7.02, (i) such
      Collateral shall be sold, transferred or disposed of free and clear of the
      Liens
      created by the respective Security Documents; (ii) if such Collateral includes
      all of the capital stock of a Subsidiary that is a party to the Subsidiary
      Guaranty or whose stock is pledged pursuant to the Security Agreement, such
      capital stock shall be released from the Security Agreement and such Subsidiary
      shall be released from the Subsidiary Guaranty; and (iii) the Administrative
      Agent shall be authorized to take actions deemed appropriate by it in order
      to
      effectuate the foregoing.

     

    
      
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    Section
      11.13     Survival
      of Indemnities.
      All
      indemnities set forth herein including, without limitation, in Article III
      (subject to the limitations set forth Section 3.01(d)), Section 9.09 or Section
      11.02 shall survive the execution and delivery of this Agreement and the making
      and repayment of the Obligations.

     

    Section
      11.14     Domicile
      of Loans.
      Each
      Lender may transfer and carry its Loans at, to or for the account of any branch
      office, subsidiary or affiliate of such Lender; provided,
      however,
      that the
      Borrower shall not be responsible for costs arising under Section 3.01 resulting
      from any such transfer (other than a transfer pursuant to Section 3.05) to
      the
      extent not otherwise applicable to such Lender prior to such
      transfer.

     

    Section
      11.15     Confidentiality.

     

    (a)   Each
      of
      the Administrative Agent, each LC Issuer and the Lenders agrees to maintain
      the
      confidentiality of the Confidential Information, except
      that
      Confidential Information may be disclosed
      (1) 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 Confidential Information and instructed to keep such Confidential
      Information confidential),
      (2)
      to any
      direct or indirect contractual counterparty in any Hedge Agreement (or to any
      such contractual counterparty’s professional advisor), so long as such
      contractual counterparty (or such professional advisor) agrees to be bound
      by
      the provisions of this Section,
      (3)
      to the
      extent requested by any regulatory authority,
      (4) to
      the extent required by applicable laws or regulations or by any subpoena or
      similar legal process,
      (5)
      to any
      other party to this Agreement,
      (6)
      to any
      other creditor of any Loan Party that is a direct or intended beneficiary of
      any
      of the Loan Documents,
      (7)
      in
      connection with the exercise of any remedies hereunder or under any of the
      other
      Loan Documents, or any suit, action or proceeding relating to this Agreement
      or
      any of the other Loan Documents or the enforcement of rights hereunder or
      thereunder,
      (8)
      subject
      to an agreement containing provisions substantially the same as those of this
      Section, to any assignee of or participant in any of its rights or obligations
      under this Agreement,
      (9)
      with the
      consent of the Borrowers, or
      (10)
      to the
      extent such Confidential Information (i) becomes publicly available other
      than as a result of a breach of this Section, or (ii) becomes available to
      the Administrative Agent, any LC Issuer or any Lender on a non-confidential
      basis from a source other than a Loan Party and not otherwise in violation
      of
      this Section.

     

    (b)   As
      used
      in this Section, “Confidential
      Information”
means
      all information received from the Borrowers relating to the Borrowers or their
      business, other than any such information that is available to the
      Administrative Agent, any LC Issuer or any Lender on a non-confidential basis
      prior to disclosure by the Borrowers; provided,
      however,
      that, in
      the case of information received from the Borrowers after the Closing Date,
      such
      information is clearly identified at the time of delivery as
      confidential.

     

    (c)   Any
      Person required to maintain the confidentiality of Confidential 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 Confidential Information as such Person
      would accord to its own confidential information. The Borrowers hereby agree
      that the failure of the Administrative Agent, any LC Issuer or any Lender to
      comply with the provisions of this Section shall not relieve the Borrowers,
      or
      any other Loan Party, of any of its obligations under this Agreement or any
      of
      the other Loan Documents.

     

    Section
      11.16     Limitations
      on Liability of the LC Issuers.
      The
      Borrowers assume all risks of the acts or omissions of any beneficiary or
      transferee of any Letter of Credit with respect to its use of such Letters
      of
      Credit. Neither any LC Issuer nor any of its officers or directors shall be
      liable or 

     

    
      
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    responsible
      for:
      (a)
      the use
      that may be made of any Letter of Credit or any acts or omissions of any
      beneficiary or transferee in connection therewith;
      (b)
      the
      validity, sufficiency or genuineness of documents, or of any endorsement
      thereon, even if such documents should prove to be in any or all respects
      invalid, insufficient, fraudulent or forged;
      (c) payment
      by an LC Issuer against presentation of documents that do not comply with the
      terms of a Letter of Credit, including failure of any documents to bear any
      reference or adequate reference to such Letter of Credit; or
      (d)
      any
      other circumstances whatsoever in making or failing to make payment under any
      Letter of Credit, except
      that the
      LC Obligor shall have a claim against an LC Issuer, and an LC Issuer shall
      be
      liable to such LC Obligor, to the extent of any direct, but not consequential,
      damages suffered by such LC Obligor that such LC Obligor proves were caused
      by
      (i) such
      LC Issuer’s willful misconduct or gross negligence in determining whether
      documents presented under a Letter of Credit comply with the terms of such
      Letter of Credit or
      (ii) such
      LC Issuer’s willful failure to make lawful payment under any Letter of Credit
      after the presentation to it of documentation strictly complying with the terms
      and conditions of such Letter of Credit. In furtherance and not in limitation
      of
      the foregoing, an LC Issuer may accept documents that appear on their face
      to be
      in order, without responsibility for further investigation.

     

    Section
      11.17     General
      Limitation of Liability.
      No
      claim may be made by any Loan Party, any Lender, the Administrative Agent,
      any
      LC Issuer or any other Person against the Administrative Agent, any LC Issuer,
      or any other Lender or the Affiliates, directors, officers, employees, attorneys
      or agents of any of them for any damages other than actual compensatory damages
      in respect of any claim for breach of contract or any other theory of liability
      arising out of or related to the transactions contemplated by this Agreement
      or
      any of the other Loan Documents, or any act, omission or event occurring in
      connection therewith; and the Borrowers, each Lender, the Administrative Agent
      and each LC Issuer hereby, to the fullest extent permitted under applicable
      law,
      waive, release and agree not to sue or counterclaim upon any such claim for
      any
      special, consequential or punitive damages, whether or not accrued and whether
      or not known or suspected to exist in their favor.

     

    Section
      11.18     No
      Duty.
      All
      attorneys, accountants, appraisers, consultants and other professional persons
      (including the firms or other entities on behalf of which any such Person may
      act) retained by the Administrative Agent or any Lender with respect to the
      transactions contemplated by the Loan Documents shall have the right to act
      exclusively in the interest of the Administrative Agent or such Lender, as
      the
      case may be, and shall have no duty of disclosure, duty of loyalty, duty of
      care, or other duty or obligation of any type or nature whatsoever to the
      Borrowers, to any of its Subsidiaries, or to any other Person, with respect
      to
      any matters within the scope of such representation or related to their
      activities in connection with such representation. The Borrowers agree, on
      behalf of itself and its Subsidiaries, not to assert any claim or counterclaim
      against any such persons with regard to such matters, all such claims and
      counterclaims, now existing or hereafter arising, whether known or unknown,
      foreseen or unforeseeable, being hereby waived, released and forever
      discharged.

     

    Section
      11.19     Lenders
      and Agent Not Fiduciary to Borrowers, etc.
      The
      relationship among the Borrowers and their Subsidiaries, on the one hand, and
      the Administrative Agent, each LC Issuer and the Lenders, on the other hand,
      is
      solely that of debtor and creditor, and the Administrative Agent, each LC Issuer
      and the Lenders have no fiduciary or other special relationship with the
      Borrowers and their Subsidiaries, and no term or provision of any Loan Document,
      no course of dealing, no written or oral communication, or other action, shall
      be construed so as to deem such relationship to be other than that of debtor
      and
      creditor.

     

    Section
      11.20     Survival
      of Representations and Warranties.
      All
      representations and warranties herein shall survive the making of Loans and
      all
      LC Issuances hereunder, the execution and delivery of this Agreement, the Notes
      and the other documents the forms of which are attached as Exhibits hereto,
      the
      issue and delivery of the Notes, any disposition thereof by any holder thereof,
      and any 

     

    
      
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    investigation
      made by the Administrative Agent or any Lender or any other holder of any of
      the
      Notes or on its behalf. All statements contained in any certificate or other
      document delivered to the Administrative Agent or any Lender or any holder
      of
      any Notes by or on behalf of the Borrowers or any of their Subsidiaries pursuant
      hereto or otherwise specifically for use in connection with the transactions
      contemplated hereby shall constitute representations and warranties by the
      Borrowers hereunder, made as of the respective dates specified therein or,
      if no
      date is specified, as of the respective dates furnished to the Administrative
      Agent or any Lender.

     

    Section
      11.21     Severability.
      Any
      provision of this Agreement held to be invalid, illegal or unenforceable in
      any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such invalidity, illegality or unenforceability without affecting the validity,
      legality and enforceability of the remaining provisions hereof; and the
      invalidity of a particular provision in a particular jurisdiction shall not
      invalidate such provision in any other jurisdiction.

     

    Section
      11.22    Independence
      of Covenants.
      All
      covenants hereunder shall be given independent effect so that if a particular
      action, event, condition or circumstance is not permitted by any of such
      covenants, the fact that it would be permitted by an exception to, or would
      otherwise be within the limitations or restrictions of, another covenant, shall
      not avoid the occurrence of a Default or an Event of Default if such action
      is
      taken or event, condition or circumstance exists.

     

    Section
      11.23    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 Charges payable
      in
      respect thereof, shall be limited to the Maximum Rate and, to the extent lawful,
      the interest and 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 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
      Base Rate to the date of repayment, shall have been received by such
      Lender.

     

    Section
      11.24     USA
      Patriot Act.
      Each
      Lender subject to the USA Patriot Act hereby notifies the Borrowers
      that
      pursuant to the requirements of the USA Patriot Act, it is required to obtain,
      verify and record information that identifies the Borrowers, which information
      includes the name and address of the Borrowers
      and
      other
      information that will allow such Lender to identify the Borrowers
      in
      accordance with the USA Patriot Act.

     

    [Remainder
      of page intentionally left blank.]

    
      
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    IN
      WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this
      Agreement to be duly executed and delivered as of the date first above
      written.

     

    

    
      	 	 	
              ICO,
                INC.

            
	 	 	 	 
	
              Address:

            	
              1811
                Bering, Suite 200

            	
              By:

            	
              /s/
                Jon C. Biro

            
	 	
              Houston,
                Texas 77057

            	
              Name:

            	
              Jon
                C. Biro

            
	 	 	
              Title:

            	
              Chief
                Financial Officer &

            
	 	 	 	
              Treasurer

            

    

    

    
      
        
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              BAYSHORE
                INDUSTRIAL, L.P.

            
	 	 	 	 
	 	 	
              By:

            	
              Bayshore
                Industrial GP, L.L.C.

            
	
              Address:

            	
              1811
                Bering, Suite 200

            	
              Its:

            	
              General
                Partner

            
	 	
              Houston,
                Texas 77057

            	
              By:

            	
              /s/
                Jon C. Biro

            
	 	 	
              Name:

            	
              Jon
                C. Biro

            
	 	 	
              Title:

            	
              Chief
                Financial Officer &

            
	 	 	 	
              Treasurer

            

    

    

    
      
        
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              ICO
                POLYMERS NORTH AMERICA, INC.

            
	 	 	 	 
	
              Address:

            	
              1811
                Bering, Suite 200

            	
              By:

            	
              /s/
                Jon C. Biro

            
	 	
              Houston,
                Texas 77057

            	
              Name:

            	
              Jon
                C. Biro

            
	 	 	
              Title:

            	
              Chief
                Financial Officer &

            
	 	 	 	
              Treasurer

            

    

    

    
      
        
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              KEYBANK
                NATIONAL ASSOCIATION,

            
	 	 	
              as
                a Lender, LC Issuer, and Administrative

            
	 	 	
              Agent
                

            
	 	 	 	 
	
              Address:

            	
              3050
                Post Oak Boulevard

            	
              By:

            	
              /s/
                Bill Bobbora

            
	 	
              Suite
                500

            	
              Name:

            	
              William
                R. Bobbora

            
	 	
              Houston,
                Texas 77056

            	
              Title:

            	
              Vice
                President

            
	 	 	 	 

    

    

    

    
      
        
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              WELLS
                FARGO BANK, NATIONAL

            
	 	 	
              ASSOCIATION,
                as
                a Lender

            
	 	 	 
	
              Address:

            	
              1000
                Louisiana

            	 	 
	 	
              Houston,
                Texas 77002

            	
              By:

            	
              /s/
                Charles W. Randall

            
	 	 	
              Name:

            	
              Charles
                W. Randall

            
	 	 	
              Title:

            	
              Vice
                President

            
	 	 	 	 

    

    

    
      
        
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    Schedule
      1

     

    

     

    Lenders
      and Commitments

     

    
      	
               

              Lender

               

            	
               

              Revolving
                

              Commitment

               

            	
               

              Revolving
                Facility Percentage as of the Closing Date

               

            	
               

              Term

              Commitment

               

            
	
               

               
                KeyBank National Association

               

            	
               

              $15,000,000

               

            	
               

              50.00%

               

            	
               

              $7,500,000

               

            
	
               

               
                Wells Fargo Bank, National Association

               

            	
               

              $15,000,000

               

            	
               

              50.00%

               

            	
               

              $7,500,000

               

            
	
               

              Total:

               

            	
               

              $30,000,000

               

            	
               

              100.00%

               

            	
               

              $15,000,000

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"}], [{"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"}]]