Document:

Exhibit 10.6

 

WILLIAMS SCOTSMAN, INC.

 

EXECUTIVE DEFERRED COMPENSATION PLAN

 

Restated Effective July, 1, 2001

 

 

WILLIAMS SCOTSMAN, INC.

 

EXECUTIVE DEFERRED COMPENSATION PLAN

 

Restated Effective July 1, 2001

 

	
  ARTICLE I — DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  ARTICLE II — ELIGIBILITY AND PARTICIPATION

  	
   

  
	
   

  	
   

  
	
  ARTICLE III — ELECTIVE DEFERRALS

  	
   

  
	
   

  	
   

  
	
  ARTICLE IV — ALLOCATION OF FUNDS

  	
   

  
	
   

  	
   

  
	
  ARTICLE V — ENTITLEMENT TO BENEFITS

  	
   

  
	
   

  	
   

  
	
  ARTICLE VI — BENEFICIARIES; PARTICIPANT
  DATA

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  VII — ADMINISTRATION

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  VIII — AMENDMENT

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  IX — TERMINATION

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  X — MISCELLANEOUS

  	
   

  

 

i

 

WILLIAMS SCOTSMAN, INC.

 

EXECUTIVE DEFERRED COMPENSATION PLAN

 

Effective January 1, 2001

 

This Plan
allows certain key executives of Williams Scotsman, Inc. to defer the receipt
of compensation, to accumulate amounts deferred with earnings as specified herein,
and to receive payment at termination of employment or upon the occurrence of other
specified events. The Plan is intended to be a “top hat” plan (i.e., an
unfunded deferred compensation plan maintained for a select group of management
or highly compensated employees) within the meaning of Sections 201(2),
301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974.

 

ARTICLE
I — DEFINITIONS

 

The following
definitions apply to this Plan:

 

1.1                                 Account  means the
account established for a Participant on the books of the Employer as provided
in Article IV.

 

1.2                                 Beneficiary means any
person or persons so designated in accordance with Article VI.

 

1.3                                 Change in Control  shall
be deemed to occur if: (i) any “person” (as such term is used in Sections 13(d)
and 14(d)(2) of the Securities Exchange Act of 1934, as amended), other
than Cypress Merchant Banking Partners L.P., Cypress Offshore Partners L.P., BT
Investment Partners, Inc., and Scotsman Partners, L.P. or any of their
affiliates or any combination thereof (collectively, the “Investor Group”), is
or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of all of the outstanding capital stock of the Employer;
or (ii) a sale of all or substantially all of the assets of the Employer other
than to an entity owned or controlled by the Investor Group is consummated; or
(iii) any merger, consolidation, issuance of securities or purchase or sale of
assets, the result of which would be the occurrence of any event described in
clause (i) or (ii) above, is consummated; or (iv) a registration statement under
the Securities Act of 1933, as amended, registering common stock in connection with
the Employer’s initial public offering becomes effective.

 

1.4                                 Code means the
Internal Revenue Code of 1986, as amended from time to time.

 

 

1.5                                 Committee means the
Board of Directors of the Employer or such other Committee as the Board of
Directors may designate to take on administrative responsibilities with respect
to the Plan.

 

1.6                                 Effective Date means
January 1, 1998.

 

1.7                                 Election Period means
for Salary Reduction Deferrals December 1 through December 31 of the prior Plan
Year and for Incentive Compensation Deferrals October 1 through October 31 of
the Plan Year prior to the date the Incentive Compensation is payable.

 

1.8                                 Elective Deferral means
a Salary Reduction Deferral or an Incentive Compensation Deferral.

 

1.9                                 Eligible Employee means
(i) an employee of the Employer holding the position of Area Manager or above,
and (ii) any other employee who is designated by the Committee to participate
in the Plan.

 

1.10                           Employer means
Williams Scotsman, Inc.

 

1.11                           ERISA means the
Employee Retirement Income Security Act of 1974, as amended from time to time.

 

1.12                           Incentive Compensation means
amounts payable to a Participant during a Plan Year under the Incentive
Compensation Plan.

 

1.13                           Incentive Compensation Deferral means
an amount deferred from a Participant’s Incentive Compensation as described in
Section 3.2.

 

1.14                           Incentive Compensation Plan means
William Scotsman, Inc. Management Incentive Compensation Plan, as amended from
time to time, or any successor plan.

 

1.15                           Participant means any
person with an Account.

 

1.16                           Permissible Investments means
the investment options designated by the Committee from time to time from which
a Participant may specify one or more investment options as the basis for the
gain or loss adjustment applicable to the Participant’s Account.

 

1.17                           Plan means Williams
Scotsman, Inc. Executive Deferred Compensation Plan, as amended from time to
time.

 

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1.18                           Plan Year means (i)
for the initial Plan Year, the period commencing January 1, 1998 and ending December
31, 1998; and (ii) thereafter the twelve (12) month period ending each December
31.

 

1.19                           Prior Plan means
Williams Scotsman, Inc. Deferred Compensation Plan for Executives, effective
December 15, 1996, which this Plan amends and restates.

 

1.20                           Salary means amounts
earned and payable to a Participant as base wages, commissions or bonuses, but
does not include amounts paid or payable under the Incentive Compensation Plan.

 

1.21                           Salary Reduction Deferral means
an amount deferred from a Participant’s Salary as described in Section 3.1.

 

1.22                           Valuation Date means
December 31 of each Plan Year or the date of any distribution under Article V
of the Plan.

 

ARTICLE II — ELIGIBILITY AND PARTICIPATION

 

2.1                                 Requirements.
Every Eligible Employee shall become a Participant when Elective Deferrals are
first credited to his or her Account.

 

2.2.                              Change
of Employment Category. A Participant shall not be eligible to make
Elective Deferrals during any period in which the Participant remains in the employ
of the Employer but ceases to be an Eligible Employee.

 

ARTICLE III — ELECTIVE DEFERRALS

 

3.1                                 Salary
Reduction Deferrals.

 

A.                                   A
Participant may elect under this Plan to defer Salary which is due to be earned
and which would otherwise be paid to the Participant during the next subsequent
Plan Year. A Participant shall elect in writing the amount of his or her Salary
Reduction Deferral with respect to such Plan Year during the applicable
Election Period. A Participant’s Salary Reduction Deferral election shall be
limited in amount so that it does not reduce the Participant’s W-2 compensation
for the Plan Year to which it relates below $80,000.

 

B.                                     Salary
Reduction Deferrals may be made only through regular payroll deductions. Once
made, a Salary Reduction Deferral election may not be

 

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changed with respect to Salary
otherwise payable during the Plan Year to which the election relates. The
election shall continue in force with respect to Salary otherwise payable
during future Plan Years until changed by the Participant during a subsequent Election
Period.

 

3.2                                 Incentive
Compensation Deferrals.

 

A.                                   A
Participant may elect under this Plan to defer Incentive Compensation which
would otherwise be paid to the Participant during the next subsequent Plan
Year. A Participant shall elect in writing the amount of his Incentive Compensation
Deferral with respect to Incentive Compensation that may become payable in such
Plan Year during the applicable Election Period.

 

B.                                     Incentive
Compensation Deferrals may be made, at the Participant’s election, with respect
to payments under the Incentive Compensation Plan.  Once made, an Incentive Compensation Deferral
election may not be changed with respect to Incentive Compensation during the
Plan Year to which the election relates. A Participant shall make a new
Incentive Compensation Deferral election with respect to Incentive Compensation
payable during later Plan Years during the applicable Election Period.

 

ARTICLE IV — ALLOCATION OF FUNDS

 

4.1                                 Separate
Accounts. The Employer shall establish and maintain a separate bookkeeping
Account under the Plan to reflect each Participant’s Elective Deferrals under
the Plan, adjusted for gain or loss as described in Section 4.2.

 

4.2                                 Gain
or Loss Adjustment. Each Participant’s separate Account as established
under the Plan in accordance with Section 4.1 shall be adjusted as of each Valuation
Date to take into account the gain or loss adjustment as determined under this
Section 4.2 for such period applicable to such separate Account. For purposes
of the Plan, the gain or loss adjustment applicable to a Participant’s separate
Account shall be determined as follows:

 

(i)                                     Each
Participant shall be permitted to specify an investment or investments (from
among Permissible Investments), which shall be the basis for determining the
gain or loss adjustment applicable to such Participant’s separate Account in
accordance with such rules as may be established by the Committee. The Participant
shall be permitted to change such specifications in accordance with such rules,
and at such times as the Committee may permit. Such rules shall also include provisions
requiring the Participant to provide advance notice to the Committee of

 

4

 

intended changes in investment
specifications. The length of time required for such advance notice shall be as
determined by the Committee.

 

(ii)                                  On
each Valuation Date, each Participant’s separate Account shall be adjusted to
reflect the gain or loss that would have been realized if an amount equal to
the Participant’s separate Account balance as of the prior Valuation Date,
along with an additional amounts added to the Participant’s separate Account on
account of the Participant’s Elective Deferrals occurring during the period
prior to the Valuation Date (but subsequent to any prior Valuation Date), had
been invested in accordance with the investment specifications of the
Participant. For purposes of the determination of the gain or loss adjustment
for the applicable Valuation Date, such adjustment shall be calculated by
taking into account any brokerage fees or other transactional costs that would
have been incurred in actually carrying out the investment specifications of
the Participant, whether or not such costs were actually incurred by the
Employer. For purposes of these calculations, the balance in a Participant’s
separate Account as of the prior Valuation Date shall be treated as having been
invested for the full period through the applicable Valuation Date, while the Participant’s
Elective Deferrals shall be treated as having been invested starting at the
date such amounts would otherwise have been payable to the Participant in the
absence of the Participant’s election under the Plan.

 

(iii)                               Notwithstanding
anything to the contrary contained herein, including those provisions giving a
Participant the right of designating investments from among Permissible
Investments for the purposes of determining the amount of the benefit paid
under the Plan, the Employer reserves the right to invest its assets, including
any assets that may have been set aside for the purpose of funding the benefits
to be provided under the Plan, at its own discretion, and such assets shall remain
the property of the Employer, subject to the claims of its general creditors.
No Participant shall have any right to any portion of such assets other than as
an unsecured general creditor of the Employer.

 

4.3                                 Fees
and Expenses. Except as provided in Section 5.6 hereof, all fees associated
with this Plan will be paid by the Employer.

 

4.4                                 Vesting
of Accounts. Except as provided in Section 5.6 hereof, Participants are
fully vested in amounts credited to their Accounts.

 

4.5                                 Account
Statements. Each Participant shall receive a statement of his or her
Account as soon as practicable after June 30 and December 31 of each Plan Year.

 

5

 

ARTICLE V — ENTITLEMENT TO BENEFITS

 

5.1                                 Commencement
of Distributions.

 

A.                                   First
Election. Distribution of a Participant’s Account shall begin as soon as
practicable after employment terminates. Alternatively, the Participant may elect
at the time of his enrollment in the Plan, or during any Election Period solely
with respect to the Elective Deferrals as to which the election relates
(including the gain and loss adjustments applicable to such deferrals under
Section 4.2) provided, however, that an election in effect under this Section
5.1 shall continue to apply to future Elective Deferrals (and the gain and loss
adjustments attributable thereto) when and until otherwise changed in
accordance with this section to receive payment (i) commencing on a different
specified date, (ii) commencing as soon as practicable following a Change in
Control if that occurs before the Participant’s Account has been completely distributed,
or (iii) commencing on the earlier of the Participant’s termination of employment
or a different specified date.

 

B.                                     Second
Election. Notwithstanding any provision of this Plan to the contrary and
subject to the limitations of this Subsection B, a Participant may make a one-time
election to extend the specified date upon which a distribution of his Account shall
commence. This election is only available to a Participant who, in accordance with
Subsection A of this Section 5.1, elected to receive payment of his Account commencing
on either (i) a different specified date, or (ii) the earlier of his
termination of employment or a different specified date. In order for such
election to be valid, (i) the date elected must be least 12 months following
the earliest date elected for the commencement of distribution of the Participant’s
Account pursuant to Subsection A of this Section 5.1, and (ii) the election
must be made (a) at least 6 months prior to, and (b) during a tax year prior
to, the earliest date elected for the commencement of distribution of the Participant’s
Account in accordance with Subsection A of Section 5.1.  Such election shall apply to all Elective
Deferrals (including the gain and loss adjustments applicable to such deferrals
under Section 4.2) that were scheduled to commence to be distributed on the
earliest date elected under Subsection A of this Section 5.1.

 

5.2                                 Death.
A Participant’s Account shall be paid in a single lump sum to the Participant’s
Beneficiary as soon as practicable after the Participant’s Death. For purposes
of this section 5.2, the Valuation Date used to determine the amount to be distributed
to the Participant’s Beneficiary shall be the date of distribution.

 

6

 

5.3                                 Hardship
Distributions.

 

A.                                   If
a Participant incurs a financial hardship, as hereinafter defined, the
Participant may apply to the Employer for a cash lump sum distribution of all
or any part of his or her Account. The Employer shall fully consider the
circumstances of each such case, and the best interests of the Participant and
his or her family, and shall have the right, in its sole discretion, to allow
such distribution, or to direct a distribution of part of the amount requested,
or to refuse to allow any distribution. Upon a finding of financial hardship,
the Employer shall make the appropriate distribution to the Participant from
amounts credited to the Participant’s Account. In no event shall the aggregate amount
of the distribution exceed the lesser of the full value of the Participant’s
Account or the amount determined by the Employer to be necessary to alleviate
the Participant’s financial hardship (including at the Employer’s discretion, any
taxes due because of the hardship distribution), and which is not reasonably available
from other resources of the Participant.

 

B.                                     “Financial
hardship” means (a) a severe financial hardship to the Participant resulting
from a sudden and unexpected illness or accident of the Participant or of a
dependent (as defined in Code Section 152(a)) of the Participant, (b) loss of
the Participant’s property due to casualty, or (c) other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Participant.

 

5.4                                 Disability
Distribution. If the Participant becomes “disabled,” the Participant’s
account shall be distributed in annual installments over a ten (10) year period.
For purposes of the Plan, disability shall mean a medically determinable physical
or mental impairment that qualifies as a “disability” for purposes of the Employer’s
long term disability policy, if any, in effect as of the date of determination,
or, if no such policy is in effect, a condition that qualifies as a disability
for purposes of Social Security disability benefits.

 

5.5                                 Method
of Payment.

 

A.                                   Plan
distributions made under the Plan shall be paid in a cash lump sum or in
substantially equal annual installments over not more than ten (10) years, except
as is otherwise specified in this Plan. A Participant’s Account shall continue
to be adjusted for gain or loss in accordance with Section 4.2 until it is
completely distributed.

 

B.                                     A
Participant shall elect the method under which his Account will be paid when
the Participant enrolls in the Plan or during any Election Period solely with
respect to the Elective Deferrals as to which the election relates (including
the gain and loss adjustments applicable to such deferrals under Section 4.2)
provided, however,

 

7

 

that an election in effect
under this Section 5.5 shall continue to apply to future Elective Deferrals
(and the gain and loss adjustments attributable thereto) when and until otherwise
changed in accordance with this section.

 

C.                                     Notwithstanding
any provision of this Plan to the contrary, if a Participant meets the
requirements of Subsection B of Section 5.1 and exercises his right to extend
the specified date upon which a distribution of his Account shall commence, such
Participant may make a one-time election to change the method under which his Account
will be paid. This election shall only be made in conjunction with a valid election
under Subsection B of Section 5.1 and shall apply to the payment of all
Elective Deferrals (including the gain and loss adjustments applicable to such
deferrals under Section 4.2) that were scheduled to commence to be distributed
on the earliest date elected under Subsection A of this Section 5.1.

 

5.6                                 Distributions
Prior to the Designated Beginning Date; Forfeiture. At any time prior to
the date elected by the Participant for the distribution of his or her Account
to commence, a Participant may elect in writing to receive a distribution of
all or a portion of his or her Account in a single lump sum payment; provided,
however, that upon such election, the Participant shall forfeit an amount equal
to ten percent (10%) of the amount of the requested distribution as of the
Valuation Date applicable to the election.

 

5.7                                 Forfeiture
Account. Any amount forfeited pursuant to Section 5.6 above shall be
transferred to a forfeiture account and used to reimburse the Employer for
legal and administrative expenses incurred in connection with the Plan or to
pay such expenses directly. The Employer shall specify an investment or
investments (from among Permissible Investments), which shall be the basis for
determining the gain or loss adjustment applicable to such forfeiture account
in accordance with such rules as may be established by the Committee. The
forfeiture account shall be adjusted as of each Valuation Date to take into
account the gain or loss adjustment as determined under Section 4.2 for such
period applicable to such forfeiture account.

 

ARTICLE VI — BENEFICIARIES; PARTICIPANT DATA

 

6.1                                 Designation
of Beneficiaries.

 

A.                                   Each
Participant may designate the person or persons (who may be named contingently)
and/or trusts for the benefit of such persons to receive such benefits as may
be payable under the Plan upon the Participant’s death. Each Beneficiary
designation will revoke all prior designations by the same Participant, shall be
in form prescribed by the Employer, and will be effective only when filed in
writing with the Employer during the Participant’s lifetime.

 

8

 

 

B.                                     If
a Participant dies without a valid Beneficiary designation, the Employer shall
distribute the Participant’s Account to the Participant’s estate. In determining
the existence or identity of anyone entitled to a benefit payment, the Employer
may rely conclusively upon information supplied by the Participant’s personal
representative, executor or administrator. If the Employer does not receive adequate
information, or if any question arises as to the existence or identity of
anyone entitled to receive a benefit payment, or if a dispute arises with
respect to any such payment, then, notwithstanding the foregoing, the Employer,
in its sole discretion, may distribute such payment to the Participant’s estate
without liability for any tax or other consequences which might flow therefrom,
or may take such other action as the Employer deems to be appropriate.

 

6.2                                 Information
to be Furnished By Participants and Beneficiaries; Inability to Locate
Participants or Beneficiaries. Any communication addressed to a Participant
or to a Beneficiary at his or her last post office address as shown on the
Employer’s records, shall be binding on the Participant or Beneficiary for all
purposes of the Plan. The Employer shall not be obliged to search for any
Participant or Beneficiary beyond sending a registered letter to such last
known address. If a Participant or Beneficiary fails to claim an amount to
which he or she is entitled under the Plan within three (3) years of the notice
from the Employer sent to the Participant’s or Beneficiary’s last known
address, then, except as otherwise required by law, the Employer may, in its discretion,
direct distribution to any one or more or all of the Participant’s next of kin,
in such proportions as the Employer determines. If neither the Participant nor
any next of kin can be located, the Employer shall have the right to direct
that the amount payable shall be deemed to be a forfeiture and paid to the
Employer, except that the dollar amount of the forfeiture, unadjusted for gains
or losses in the interim, shall be paid by the Employer if a claim for the
benefit subsequently is made by the Participant or the Beneficiary to whom it
was payable. If a benefit payable to an unallocated Participant or Beneficiary
is subject to escheat pursuant to applicable state law, any payment made in
accordance with such law shall fully satisfy and discharge the Employer’s
obligations under this Plan.

 

ARTICLE
VII —
ADMINISTRATION

 

7.1                                 Administrative
Authority. The Committee shall administer the Plan. The Committee shall
have the power to take all actions and to make all decisions and interpretations
which may be necessary or appropriate in order to administer and operate the
Plan. All Committee decisions, interpretations, actions and determinations with
respect to the Plan shall be final and binding on all parties. Without limiting
the generality of the foregoing, the Committee shall have the following
specific powers, duties and responsibilities:

 

9

 

(a)                                  To
resolve and determine all disputes or questions arising under the Plan,
including the power to determine the rights of Eligible Employees, Participants
and Beneficiaries, and their respective benefits, and to remedy any ambiguities,
inconsistencies, or omissions in the Plan;

 

(b)                                 To
adopt such rules of procedure and regulations as in its opinion may be
necessary for the proper and efficient administration of the Plan and as are consistent
with the Plan;

 

(c)                                  To
implement the Plan in accordance with its terms and the rules and regulations
adopted as above;

 

(d)                                 To
make determinations concerning the eligibility of any Eligible Employee as a
Participant and make determinations concerning the crediting and distribution
of Plan Accounts; and

 

(e)                                  To
appoint any persons or firms, or otherwise act to secure specialized advice or
assistance, as it deems necessary or desirable in connection with the
administration and operation of the Plan, and the Employer shall be entitled to
rely conclusively upon, and shall be fully protected in any action or omission
taken by it in good faith reliance upon, the advice or opinion of such firms or
persons.

 

7.2.                              Delegation
of Administrative Functions. The Committee may delegate from time to time
by written instrument all of any part of its duties, powers or responsibilities
under the Plan, both ministerial and discretionary, as it deems appropriate, to
any person or committee, and in the same manner to revoke any such delegation
of duties, powers or responsibilities. Any action of such person or committee
in the exercise of such delegated duties, powers or responsibilities shall have
the same force and effect as if such action had been taken by the Committee.
The Committee shall not be liable for any act or omission of any person to whom
the Committee’s duties, powers and responsibilities have been delegated, nor
shall any person or committee to whom or to which any duties, powers or
responsibilities have been delegated have any liabilities with respect to any
duties, powers or responsibilities not delegated to him, her or it, except to
the extent required by law.

 

7.3                                 Litigation.
In any action or judicial proceeding affecting the Plan, it shall be necessary
to join as a party only the Employer. Except as may be otherwise required by
law, no Participant or Beneficiary shall be entitled to any notice or service
of process, and any final judgment entered in such action shall be binding on
all persons interested in, or claiming under, the Plan.

 

10

 

7.4                                 Claims
Procedure.

 

A.                                   Any
person claiming a benefit under the Plan (a “Claimant”) shall present the
claim, in writing, to the Employer and the Employer shall respond in writing.
If the claim is denied, the written notice of denial shall state, in a manner calculated
to be understood by the Claimant:

 

(a)                                  The
specific reason or reasons for denial, with specific references to the Plan
provisions on which the denial is based;

 

(b)                                 A
description of any additional material or information necessary for the
Claimant to perfect his or her claim and an explanation of who such material or
information is necessary; and

 

(c)                                  An
explanation of the Plan’s claims review procedure.

 

B.                                     The
written notice denying or granting the Claimant’s claim shall be provided to
the Claimant within ninety (90) days after the Employer’s receipt of the claim,
unless special circumstances require an extension of time for processing the claim.
If such an extension is required, written notice of the extension shall be furnished
by the Employer to the Claimant within the initial ninety (90) day period and in
no event shall such an extension exceed a period of ninety (90) days from the
end of the initial ninety (90) day period. Any extension notice shall indicate
the special circumstances requiring the extension and the date on which the
Employer expects to render a decision on the claim. Any claim not granted or
denied within the period noted above shall be deemed to have been denied.

 

C.                                     Any
Claimant whose claim is denied, or deemed to be denied under the preceding
sentence (or such Claimant’s authorized representative), may, within sixty (60)
days after the Claimant’s receipt of notice of the denial, or after the date of
the deemed denial, request a review of the denial by notice given, in writing,
to the Employer. Upon such a request for review, the claim shall be reviewed by
the Employer (or its designated representative) which may, but shall not be
required to, grant the Claimant a hearing. In connection with the review, the
Claimant may have representation, may examine pertinent documents, and may
submit issues and comments in writing.

 

D.                                    The
decision on review normally shall be made within sixty (60) days of the
Employer’s receipt of the request for review. If an extension of time is required
due to special circumstances, the Claimant shall be notified, in writing, by
the Employer, and the time limit for the decision on review shall be extended
to one hundred twenty (120) days. The decision on review shall be in writing
and shall state, in a manner calculated to be understood by the Claimant, the
specific reasons for the 

 

11

 

decision and shall include
references to the relevant Plan provision on which the decision is based. The
written decision on review shall be given to the Claimant within sixty (60)
days (or, if applicable, the one hundred twenty (120) day) time limit discussed
above. If the decision on review is not communicated to the Claimant within the
sixty (60) day (or, if applicable, the one hundred twenty (120) day) period
discussed above, the claim shall be deemed to have been denied upon review. All
decisions on review shall be final and binding with respect to all concerned
parties.

 

ARTICLE
VIII — AMENDMENT

 

8.1                                 Right
to Amend. The Employer reserves the right to amend the Plan by action of
its chief executive officer, and all Participants, Beneficiaries and other interested
parties shall be bound by any such amendments; provided, however, that no amendment
shall reduce the amount of a Participant’s Account or the Participant’s rights
therein as of the date of the amendment.

 

8.2                                 Amendment
Required by Law. Notwithstanding the provisions of Section 8.1, the Plan
may be amended at any time, retroactively if required, if the Employer finds it
necessary to do so in order to ensure that the Plan is characterized as a plan
of deferred compensation maintained for a select group of management or highly compensated
employees, as described in ERISA Sections 201(2), 301(a)(3) and 401(a)(1), and
to conform the Plan to the provisions and requirements of any applicable law (including
ERISA and the Code). No such amendment shall be considered prejudicial to any
interest of a Participant or a Beneficiary hereunder.

 

ARTICLE
IX — TERMINATION

 

9.1                                 Employer’s
Right to Terminate or Suspend Plan. The Employer reserves the right, by
action of its Board of Directors, to terminate the Plan and/or its obligations to
make further additions to the Account maintained under the Plan on account of Elective
Deferrals or to make further adjustments to such Accounts on account of gain or
loss under Section 4.2. If the Employer terminates the Plan, all Accounts shall
be distributed to Participants as soon as practicable after the Plan
terminates. The Employer may choose to terminate it obligations to credit
Accounts prospectively with respect to Elective Deferrals, while continuing to
maintain the Plan. In such event, the Employer shall continue to give effect to
all other applicable provisions of the Plan, including those concerning
adjustments to such Accounts on account of gain or loss under Section 4.2.

 

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ARTICLE
X —
MISCELLANEOUS

 

10.1                           Limitations
on Liability of Employer. Neither the establishment of the Plan nor any
modification thereof, nor the creation of any Account under the Plan, nor the
payment of any benefits under the Plan shall be construed as giving to any Participant
or other person any legal or equitable right against the Employer, or any officer
or employee thereof, except as provided by law or by any Plan provision. In no event
shall the Employer, or its employees or officers, be liable for the failure of
any Participant, Beneficiary or other person to be entitled to any particular
tax consequences with respect to the Plan or any credit or contribution thereto
or distribution therefrom.

 

10.2                           Construction.
If any provision of the Plan is held to be illegal or void, such illegality or
invalidity shall not affect the remaining provisions of the Plan, but such
provision shall be fully severable, and the Plan shall be construed and
enforced as if said illegal or invalid provision had never been part of the
Plan. Where the context permits, the singular shall include the plural, and the
plural shall include the singular. Headings of Articles and Sections are
inserted only for convenience of reference and are not to be considered in the
construction of the Plan. The laws of the State of Maryland shall control the
Plan and all questions of law arising thereunder, except where those laws are
preempted by the laws of the United States.

 

10.3                           No
Right to Employment. Participation under the Plan will not give any Participant
the right to be retained in the service of the Employer.

 

10.4                           Unfunded
Plan. The Plan is intended to be, and at all times shall be interpreted and
administered so as to qualify as, an unfunded plan of deferred compensation.
The rights of Participants and Beneficiaries to payments under the Plan shall be
those of general, unsecured, creditors of the Employer and shall not be secured
by any trust, escrow or other arrangement; provided, however, that the Employer
may, in its discretion, establish one or more trusts for purposes of funding
its obligations under this Plan as long as, in the opinion of counsel to the
Employer, the establishment of such trust or trusts will not cause the Plan to
be considered “funded” for purposes of ERISA or the Code or otherwise
jeopardize the tax treatment of benefits hereunder. No provisions of this Plan
shall be interpreted so as to give any individual any right in any assets of
the Employer which is greater than the rights of any general unsecured creditor
of the Employer.

 

10.5                           Spendthrift
Provision.

 

A.                                   No
amount payable to a Participant or a Beneficiary under the Plan will, except as
otherwise specifically provided by law, be subject in any manner to anticipation,
alienation, attachment, garnishment, sale, transfer, assignment (either at law
or in equity), levy, execution, pledge, encumbrance, charge or any other legal
or

 

13

 

equitable process, and any
attempt to do so will be void; nor will any benefit hereunder be in any manner
liable for or subject to the debts, contracts, liabilities, engagements or torts
of the person entitled thereto. Further, (i) the withholding of taxes from Plan
benefit payments, (ii) the recovery under the Plan of overpayments of benefits previously
made to a Participant or Beneficiary, (iii) if applicable, the transfer of
benefit rights from the Plan to another plan, or (iv) the direct deposit of
Plan benefit payments to an account in a banking institution (if not actually
part of an arrangement constituting an assignment or alienation) shall not be
construed as an assignment or alienation.

 

B.                                     If
any Participant’s or Beneficiary’s benefits hereunder are garnished or attached
by order of any court, the Employer may bring an action for a declaratory
judgment in a court of competent jurisdiction to determine the proper recipient
of the benefits to be paid under the Plan. During the pendency of said action, any
benefits that become payable shall be held as credits to the Participant’s or Beneficiary’s
Account or, if the Employer prefers, paid into the court as they become payable,
to be distributed by the court to the recipient as it deems proper at the close
of said action.

 

10.6                           Withholding.
A Participant or a Beneficiary under the Plan shall make appropriate
arrangements with the Employer for satisfaction of any Federal, state or local
income tax withholding requirements and Social Security or other tax requirements
applicable to the accrual or payment of benefits under the Plan. If no other
arrangements are made, the Employer may provide, at its discretion, for any withholding
and tax payments as may be required prior to making any payment of benefits
under the Plan.

 

IN WITNESS
WHEREOF, the Employer has caused the Plan to be executed and its seal affixed
hereto, effective as of the first day of July, 2001.

 

	
  ATTEST/WITNESS:

  	
  WILLIAMS
  SCOTSMAN, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  (Seal)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
   

  	
  Print Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
									

 

14Exhibit 10.22

 

AMENDED AND RESTATED

CREDIT AGREEMENT

among

WILLIAMS SCOTSMAN INTERNATIONAL, INC.,

WILLIAMS SCOTSMAN, INC.,

VARIOUS FINANCIAL INSTITUTIONS,

BANK OF AMERICA, N.A.,

as Administrative Agent,

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Syndication Agent, 

CITICORP USA, INC., WELLS FARGO BANK, N.A. and LEHMAN COMMERCIAL PAPER INC,

as Co-Documentation Agents,

and

BANC OF AMERICA SECURITIES LLC and DEUTSCHE BANK SECURITIES INC.,

as Co-Lead Arrangers and Joint Book Runners

 

Dated as of June 28, 2005

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1

  	
  Definitions

  	
   

  
	
  1.1

  	
  General
  Definitions; Holding Company Applicability

  	
   

  
	
  1.2

  	
  Accounting
  Terms and Determinations

  	
   

  
	
  1.3

  	
  Interpretive
  Provisions

  	
   

  
	
  1.4

  	
  No Strict
  Construction

  	
   

  
	
  1.5

  	
  Certain
  Provisions Regarding Holdings

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  Amount and Terms of Credit

  	
   

  
	
  2.1

  	
  The
  Commitments and Loans

  	
   

  
	
  2.2

  	
  Determination
  of Borrowing Base for Revolving Loans; etc.

  	
   

  
	
  2.3

  	
  Borrowing
  Mechanics

  	
   

  
	
  2.4

  	
  Settlements
  Among the Administrative Agent and the Lenders

  	
   

  
	
  2.5

  	
  Mandatory
  and Voluntary Payments: Mandatory and Voluntary Reduction of Commitments

  	
   

  
	
  2.6

  	
  Payments
  and Computations

  	
   

  
	
  2.7

  	
  Maintenance
  of Account

  	
   

  
	
  2.8

  	
  Statement
  of Account

  	
   

  
	
  2.9

  	
  Taxes

  	
   

  
	
  2.10

  	
  Sharing of
  Payments

  	
   

  
	
  2.11

  	
  Bank
  Products

  	
   

  
	
  2.12

  	
  Assignment
  and Assumption on Effective Date

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
  Letters of Credit

  	
   

  
	
  3.1

  	
  Issuance of
  Letters of Credit

  	
   

  
	
  3.2

  	
  Terms of
  Letters of Credit

  	
   

  
	
  3.3

  	
  Revolving
  Credit Lenders’ Participation

  	
   

  
	
  3.4

  	
  Notice of
  Issuance

  	
   

  
	
  3.5

  	
  Payment of
  Amounts Drawn Under Letters of Credit

  	
   

  
	
  3.6

  	
  Payment by
  Revolving Credit Lenders

  	
   

  
	
  3.7

  	
  Nature of
  Issuing Lender’s Duties

  	
   

  
	
  3.8

  	
  Obligations
  Absolute

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  Interest, Fees and Expenses

  	
   

  
	
  4.1

  	
  Interest on
  Eurodollar Rate Loans

  	
   

  
	
  4.2

  	
  Interest on
  Base Rate Loans

  	
   

  
	
  4.3

  	
  Notice of
  Continuation and Notice of Conversion

  	
   

  
	
  4.4

  	
  Interest
  After Default

  	
   

  
	
  4.5

  	
  Reimbursement
  of Expenses

  	
   

  
	
  4.6

  	
  Unused Line
  Fee

  	
   

  
	
  4.7

  	
  Letter of
  Credit Fees

  	
   

  
	
  4.8

  	
  Incremental Revolving Credit Commitments

  	
   

  
	
  4.9

  	
  Other Fees and Expenses

  	
   

  

 

i

 

	
  4.10

  	
  Authorization to Charge Account

  	
   

  
	
  4.11

  	
  Indemnification in Certain Events

  	
   

  
	
  4.12

  	
  Calculations

  	
   

  
	
  4.13

  	
  Change of Applicable Lending Office

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  Conditions Precedent

  	
   

  
	
  5.1

  	
  Conditions to Initial Loans and Letters of
  Credit

  	
   

  
	
  5.2

  	
  Conditions to All Credit Events

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  Representations and Warranties

  	
   

  
	
  6.1

  	
  Corporate Status

  	
   

  
	
  6.2

  	
  Corporate Power and Authority

  	
   

  
	
  6.3

  	
  No Violation

  	
   

  
	
  6.4

  	
  Litigation

  	
   

  
	
  6.5

  	
  Use of Proceeds

  	
   

  
	
  6.6

  	
  Governmental Approvals

  	
   

  
	
  6.7

  	
  Investment Company Act

  	
   

  
	
  6.8

  	
  Public Utility Holding Company Act

  	
   

  
	
  6.9

  	
  True and Complete Disclosure

  	
   

  
	
  6.10

  	
  Financial Condition; Financial Statements

  	
   

  
	
  6.11

  	
  Locations of Offices, Records, Inventory
  and Rental Equipment

  	
   

  
	
  6.12

  	
  Security Interests

  	
   

  
	
  6.13

  	
  Tax Returns and Payments

  	
   

  
	
  6.14

  	
  Compliance with ERISA

  	
   

  
	
  6.15

  	
  Subsidiaries

  	
   

  
	
  6.16

  	
  Intellectual Property; etc.

  	
   

  
	
  6.17

  	
  Compliance with Statutes, etc.

  	
   

  
	
  6.18

  	
  Properties

  	
   

  
	
  6.19

  	
  Labor Relations; Collective Bargaining
  Agreements

  	
   

  
	
  6.20

  	
  Restrictions on Subsidiaries

  	
   

  
	
  6.21

  	
  Status of Accounts

  	
   

  
	
  6.22

  	
  Material Contracts

  	
   

  
	
  6.23

  	
  Existing Indebtedness and Operating Leases

  	
   

  
	
  6.24

  	
  Guarantee of Certain Notes; Subordinated
  Guarantor Senior Indebtedness; Credit Agreement; etc.

  	
   

  
	
  6.25

  	
  Unit Subsidiary

  	
   

  
	
  6.26

  	
  Rental Equipment; Business of the Credit
  Parties

  	
   

  
	
  6.27

  	
  Legal Names; Type of Organization (and
  Whether a Registered Organization); Jurisdiction of Organization; etc.

  	
   

  
	
  6.28

  	
  Insurance

  	
   

  
	
  6.29

  	
  Ownership of Rental Equipment

  	
   

  
	
  6.30

  	
  No Permitted Units Financing or
  Attributable Debt

  	
   

  
	
  6.31

  	
  Intercreditor Agreement

  	
   

  
	
  6.32

  	
  Foreign Assets Control Regulations, Etc.

  	
   

  

 

ii

 

	
  ARTICLE 7

  	
  Affirmative Covenants

  	
   

  
	
  7.1

  	
  Financial Information

  	
   

  
	
  7.2

  	
  Real Estate Appraisals

  	
   

  
	
  7.3

  	
  Corporate Franchises

  	
   

  
	
  7.4

  	
  Compliance with Statutes, etc.

  	
   

  
	
  7.5

  	
  ERISA

  	
   

  
	
  7.6

  	
  Good Repair

  	
   

  
	
  7.7

  	
  Books and Records

  	
   

  
	
  7.8

  	
  Collateral Records

  	
   

  
	
  7.9

  	
  Security Interests

  	
   

  
	
  7.10

  	
  Insurance; Casualty Loss

  	
   

  
	
  7.11

  	
  Taxes

  	
   

  
	
  7.12

  	
  End of Fiscal Years; Fiscal Quarters

  	
   

  
	
  7.13

  	
  Further Assurances

  	
   

  
	
  7.14

  	
  Maintenance of Separateness

  	
   

  
	
  7.15

  	
  Collateral Access Agreements

  	
   

  
	
  7.16

  	
  New Subsidiaries

  	
   

  
	
  7.17

  	
  Permitted Acquisitions

  	
   

  
	
  7.18

  	
  Unit Subsidiary; Provisions Relating to
  Units; etc.

  	
   

  
	
  7.19

  	
  Use of Proceeds

  	
   

  
	
  7.20

  	
  Rental Equipment; Business of the Credit
  Parties

  	
   

  
	
  7.21

  	
  Ownership of Rental Equipment

  	
   

  
	
  7.22

  	
  No Permitted Units Financing or
  Attributable Debt

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  Negative Covenants

  	
   

  
	
  8.1

  	
  Consolidation, Merger, Sale or Purchase of
  Assets, etc.

  	
   

  
	
  8.2

  	
  Liens

  	
   

  
	
  8.3

  	
  Indebtedness

  	
   

  
	
  8.4

  	
  Capital Expenditures

  	
   

  
	
  8.5

  	
  Investments

  	
   

  
	
  8.6

  	
  Dividends, etc.

  	
   

  
	
  8.7

  	
  Transactions with Affiliates

  	
   

  
	
  8.8

  	
  Changes in Business

  	
   

  
	
  8.9

  	
  Senior Secured Leverage Ratio

  	
   

  
	
  8.10

  	
  Consolidated Interest Coverage Ratio

  	
   

  
	
  8.11

  	
  Utilization

  	
   

  
	
  8.12

  	
  Creation of Subsidiaries

  	
   

  
	
  8.13

  	
  Limitation on Voluntary Payments and
  Modifications of Indebtedness; Modifications of Governing Documents,
  Preferred Stock and Certain Other Agreements; etc.

  	
   

  
	
  8.14

  	
  Issuance of Stock

  	
   

  
	
  8.15

  	
  Limitation on Restrictions Affecting
  Subsidiaries

  	
   

  
	
  8.16

  	
  No Additional Bank Accounts

  	
   

  
	
  8.17

  	
  No Excess Cash

  	
   

  
	
  8.18

  	
  Account Terms

  	
   

  
	
  8.19

  	
  Permitted Preferred Stock

  	
   

  

 

iii

 

	
  8.20

  	
  Unit Subsidiary

  	
   

  
	
  8.21

  	
  Change of Legal Names; Type of Organization
  (and Whether a Registered Organization); Jurisdiction of Organization etc.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  Events of Default and Remedies

  	
   

  
	
  9.1

  	
  Events of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  The Agents

  	
   

  
	
  10.1

  	
  Appointment

  	
   

  
	
  10.2

  	
  Nature of Duties

  	
   

  
	
  10.3

  	
  Lack of Reliance on the Agents

  	
   

  
	
  10.4

  	
  Certain Rights of the Agents

  	
   

  
	
  10.5

  	
  Reliance by the Agents

  	
   

  
	
  10.6

  	
  Indemnification

  	
   

  
	
  10.7

  	
  Each Agent in its Individual Capacity

  	
   

  
	
  10.8

  	
  Holders of Notes

  	
   

  
	
  10.9

  	
  Resignation by the Agents; Successor
  Agents; etc.

  	
   

  
	
  10.10

  	
  Collateral Matters

  	
   

  
	
  10.11

  	
  Co-Collateral Agents; Separate Collateral
  Agents

  	
   

  
	
  10.12

  	
  Actions with Respect to Defaults

  	
   

  
	
  10.13

  	
  Delivery of Information

  	
   

  
	
  10.14

  	
  The Syndication Agent and the
  Co-Documentation Agents

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
  Miscellaneous

  	
   

  
	
  11.1

  	
  Submission to Jurisdiction; Waivers

  	
   

  
	
  11.2

  	
  Waiver of Jury Trial

  	
   

  
	
  11.3

  	
  Governing Law

  	
   

  
	
  11.4

  	
  Delays: Partial Exercise of Remedies

  	
   

  
	
  11.5

  	
  Notices

  	
   

  
	
  11.6

  	
  Benefit of Agreement

  	
   

  
	
  11.7

  	
  Confidentiality

  	
   

  
	
  11.8

  	
  Indemnification

  	
   

  
	
  11.9

  	
  Entire Agreement; Successors and Assigns

  	
   

  
	
  11.10

  	
  Amendment or Waiver

  	
   

  
	
  11.11

  	
  Nonliability of Administrative Agent,
  Collateral Agent and Lenders

  	
   

  
	
  11.12

  	
  Independent Nature of Lenders’ Rights

  	
   

  
	
  11.13

  	
  Counterparts

  	
   

  
	
  11.14

  	
  Effectiveness

  	
   

  
	
  11.15

  	
  Headings Descriptive

  	
   

  
	
  11.16

  	
  Maximum Rate

  	
   

  
	
  11.17

  	
  Right of Setoff

  	
   

  
	
  11.18

  	
  Other Credit Documents

  	
   

  
	
  11.19

  	
  Certain Provisions Regarding Perfection of
  Security Interests

  	
   

  
	
  11.20

  	
  [Intentionally Omitted]

  	
   

  
	
  11.21

  	
  Acknowledgements Regarding Security Bond
  Obligations

  	
   

  
	
  11.22

  	
  PATRIOT Act Notice

  	
   

  

 

iv

 

	
  11.23

  	
  Amendment and Restatement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
  Holdings Secured Guaranty

  	
   

  
	
  12.1

  	
  The Holdings Secured Guaranty

  	
   

  
	
  12.2

  	
  Bankruptcy

  	
   

  
	
  12.3

  	
  Nature of Liability

  	
   

  
	
  12.4

  	
  Independent Obligation

  	
   

  
	
  12.5

  	
  Authorization

  	
   

  
	
  12.6

  	
  Reliance

  	
   

  
	
  12.7

  	
  Subordination

  	
   

  
	
  12.8

  	
  Waiver

  	
   

  
	
  12.9

  	
  Limitation on Enforcement

  	
   

  

 

v

 

	
  SCHEDULE I

  	
  Lender Commitments and Term Loan Outstandings

  	
   

  
	
  SCHEDULE II

  	
  Lenders Addresses

  	
   

  
	
  SCHEDULE III

  	
  Existing Indebtedness and Operating Leases

  	
   

  
	
  SCHEDULE IV

  	
  Real Properties

  	
   

  
	
  SCHEDULE V

  	
  Existing Letters of Credit

  	
   

  
	
  SCHEDULE VI

  	
  Location of Offices, Records, Inventory and Rental Equipment

  	
   

  
	
  SCHEDULE VII

  	
  Tax Matters

  	
   

  
	
  SCHEDULE VIII

  	
  ERISA Matters

  	
   

  
	
  SCHEDULE IX

  	
  Subsidiaries

  	
   

  
	
  SCHEDULE X

  	
  Collective Bargaining Agreements

  	
   

  
	
  SCHEDULE XI

  	
  Legal Names; Type of Organization; Jurisdiction of Organization

  	
   

  
	
  SCHEDULE XII

  	
  Insurance

  	
   

  
	
  SCHEDULE XIII

  	
  8.1(o) Conditions

  	
   

  
	
  SCHEDULE XIV

  	
  Existing Liens

  	
   

  
	
  SCHEDULE XV

  	
  Surety Liens

  	
   

  
	
  SCHEDULE XVI

  	
  Existing Investments

  	
   

  
	
  SCHEDULE XVII

  	
  Bank Accounts

  	
   

  
	
  SCHEDULE XVIII

  	
  Holdings Article 7 and 8 Covenants

  	
   

  
	
  SCHEDULE XIX

  	
  Affiliate Transactions

  	
   

  
	
  SCHEDULE XX

  	
  Subordinated Guarantor Senior Indebtedness

  	
   

  
	
  SCHEDULE XXI

  	
  First Lien Obligations Exception

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A-1

  	
  Form of Term Note

  	
   

  
	
  EXHIBIT A-2

  	
  Form of Revolving Note

  	
   

  
	
  EXHIBIT B-1

  	
  Form of Notice of Borrowing

  	
   

  
	
  EXHIBIT B-2

  	
  Form of Letter of Credit Request

  	
   

  
	
  EXHIBIT B-3

  	
  Form of Notice of Continuation

  	
   

  
	
  EXHIBIT B-4

  	
  Form of Notice of Conversion

  	
   

  
	
  EXHIBIT C-1

  	
  Form of Collection Bank Agreement

  	
   

  
	
  EXHIBIT C-2

  	
  Form of Canadian Bank Control Agreement

  	
   

  
	
  EXHIBIT D

  	
  Form of Section 2.9(b)(ii) Certificate

  	
   

  
	
  EXHIBIT E-1

  	
  Form of Opinion of Paul, Weiss, Rifkind, Wharton & Garrison LLP,
  special counsel to Holdings and the Borrower

  	
   

  
	
  EXHIBIT E-2

  	
  Form of Opinion of Davies Ward Phillips & Vineberg LLP

  	
   

  
	
  EXHIBIT F-1

  	
  Form of U.S. Security Agreement

  	
   

  
	
  EXHIBIT F-2

  	
  Form of Canadian Security Agreement

  	
   

  
	
  EXHIBIT G

  	
  Form of Collateral Access Agreement

  	
   

  
	
  EXHIBIT H

  	
  Form of Officer’s Certificate

  	
   

  
	
  EXHIBIT I

  	
  Form of Solvency Certificate

  	
   

  
	
  EXHIBIT J-1

  	
  Form of U.S. Subsidiaries Guaranty

  	
   

  
	
  EXHIBIT J-2

  	
  Form of Canadian Subsidiaries Guaranty

  	
   

  
	
  EXHIBIT K-1

  	
  Form of U.S. Pledge Agreement

  	
   

  
	
  EXHIBIT L

  	
  Form of Mortgage

  	
   

  
	
  EXHIBIT M

  	
  Form of Custodian Agreement

  	
   

  
	
  EXHIBIT N

  	
  Form of U.S. Subsidiary Joinder Agreement

  	
   

  
	
  EXHIBIT O

  	
  Form of Compliance Certificate

  	
   

  

 

vi

 

	
  EXHIBIT P

  	
  Form of Borrowing Base Certificate

  	
   

  
	
  EXHIBIT Q-1

  	
  Form of Assignment and Assumption Agreement

  	
   

  
	
  EXHIBIT Q-2

  	
  Form of Notice of Assignment

  	
   

  
	
  EXHIBIT R

  	
  Form of Incremental Commitment Agreement

  	
   

  
	
  EXHIBIT S

  	
  Form of Bank Assignment Agreement

  	
   

  
	
  EXHIBIT T

  	
  Form of Acknowledgment and Agreement to Intercreditor Agreement

  	
   

  

 

vii

 

THIS AMENDED AND RESTATED CREDIT AGREEMENT, dated as of June 28,
2005, among WILLIAMS SCOTSMAN INTERNATIONAL, INC. (formerly known as Scotsman
Holdings, Inc.), a Delaware corporation (“Holdings”), WILLIAMS SCOTSMAN,
INC., a Maryland corporation (the “Borrower”), the Lenders party hereto
from time to time, BANK OF AMERICA, N.A., as Administrative Agent (in such capacity,
together with its successors in such capacity, the “Administrative Agent”),
DEUTSCHE BANK TRUST COMPANY AMERICAS, as Syndication Agent (in such capacity,
the “Syndication Agent”), CITICORP USA, INC., WELLS FARGO BANK, N.A. and
LEHMAN COMMERCIAL PAPER INC., as Co-Documentation Agents (in such capacities,
each a “Co-Documentation Agent” and, collectively, the “Co-Documentation
Agents”), and BANC OF AMERICA SECURITIES LLC and DEUTSCHE BANK SECURITIES
INC., as Co-Lead Arrangers and Joint Book Runners (in such capacities, each a “Co-Lead
Arranger” and, collectively, the “Co-Lead Arrangers”).  Capitalized terms used and not otherwise
defined herein have the respective meanings set forth in Section 1.1
hereof.

 

W  I  T  N
E  S  S  E  T  H :

 

WHEREAS, the Borrower has requested the Lenders to make available to
the Borrower a revolving line of credit for loans and letters of credit in an
original maximum amount of $500,000,000 and a term loan in an amount not to
exceed $150,000,000, which extensions of credit the Borrower will use to
refinance existing indebtedness and for its working capital and general
corporate needs;

 

WHEREAS, the Lenders have agreed to make available to the Borrower the
credit facilities provided for herein upon the terms and conditions set forth
in this Credit Agreement;

 

WHEREAS, the Borrower and Holdings are parties to a certain Credit
Agreement, dated as of March 26, 2002, among the Borrower, Holdings, the
lenders party thereto, Deutsche Bank Trust Company Americas, as administrative
agent, and certain other Persons, as amended by a First Amendment, dated as of
February 27, 2003, a Second Amendment, dated as of August 11, 2003, a Third
Amendment, dated as of December 22, 2003, a Fourth Amendment, dated as of
September 24, 2004 and a Fifth Amendment, dated as of April 15, 2005 (as so
amended, the “Existing Credit Agreement”);

 

WHEREAS, in connection with the aforesaid credit facilities requested
by the Borrower, BofA and DBTCA have purchased from the other lenders party to
the Existing Credit Agreement all of such lenders’ right, title and interest in
and to the Existing Credit Agreement and the documents and instruments executed
and delivered in connection therewith (with certain exceptions), all pursuant
to a certain Assignment and Assumption Agreement (the “Bank Assignment
Agreement”), dated as of the date hereof, among BofA, DBTCA, the other
lenders party to the Existing Credit Agreement, the administrative agent and
collateral agent under the Existing Credit Agreement, the Borrower and Holdings;

 

WHEREAS, the Borrower, Holdings and the Lenders desire to amend and
restate the Existing Credit Agreement in its entirety in the manner hereinafter
set forth to provide for the aforesaid credit facilities requested by the
Borrower from the Lenders;

 

 

NOW, THEREFORE, in consideration of the mutual conditions and
agreements set forth in this Credit Agreement, and for good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereto
hereby agree that the Existing Credit Agreement shall be, and hereby is,
amended and restated in its entirety as follows:

 

ARTICLE 1

Definitions

 

1.1           General Definitions; Holding
Company Applicability.  As used
herein, the following terms shall have the meanings herein specified (to be
equally applicable to both the singular and plural forms of the terms defined):

 

Accounts shall mean,
with respect to any Person, all present and future accounts, contract rights
and other rights to payment for goods sold or leased (whether or not delivered)
or for services rendered which are not evidenced by an instrument, whether or
not they have been earned by performance, and any letter of credit, guarantee,
security interest or other security issued or granted to secure payment by an
account debtor including, without limitation, all rentals, lease payments and
other monies earned and to be earned, due and to become due under any Lease.

 

ACH Transactions
shall mean any cash management, disbursement, or related services, including
overdrafts and the automated clearinghouse transfer of funds, by BofA for the
account of any Credit Party.

 

Adjusted Net Book Value Percentage
shall mean 70%, provided that the Adjusted Net Book Value Percentage shall be
subject to adjustment as provided below on each date of the Borrower’s delivery
of an appraisal of the Qualified Credit Parties’ Rental Equipment pursuant to
this Credit Agreement (for the purposes of this definition, each such date, a Delivery
Date).  In the event that on any such
Delivery Date, the product of (x) 85% multiplied by (y) the
Orderly Liquidation Value on such date (for the purposes of this definition,
such product, the Orderly Liquidation Product) is less than the product
of (i) 70% multiplied by (ii) the Net Book Value of all of the
Qualified Credit Parties’ Eligible Rental Equipment on such date, then the
Adjusted Net Book Value Percentage shall be reduced to a percentage such that
if such reduced percentage were multiplied by the Net Book Value of all of the
Qualified Credit Parties’ Eligible Rental Equipment on such date the resultant
product would equal the Orderly Liquidation Product on such date, with the
Adjusted Net Book Value Percentage to remain at such reduced percentage until
the next succeeding Delivery Date at which time it shall return to 70% or be
adjusted to a percentage below 70% in accordance with the provisions
above.  In no event shall the Adjusted
Net Book Value Percentage exceed 70% at any time.  If at the time the Borrower has repaid more
than $75,000,000 in the aggregate of Senior Secured Notes as permitted herein
or at the time of any subsequent permitted repayment of Senior Secured Notes
the Consolidated Leverage Ratio for the four consecutive fiscal quarter period
(taken as one accounting period) of the Borrower most recently ended prior to
the date of such repayment for which Financial Statements were required to be
delivered pursuant to Section 7.1(a) or (b), on a pro  forma
basis giving effect to such repayment (as if such repayment had occurred on the
last day of such four consecutive fiscal quarter period), is greater than
5.25:1.00, then effective on the date of such

 

2

 

repayment, each reference to
“70%” or “85%” set forth above shall instead be a reference to “65%” and “80%”
respectively (subject to reinstatement to the previous percentages in the event
that the Consolidated Leverage Ratio is less than 5.25:1.00 for any four
consecutive fiscal quarter period (taken as one accounting period) of the
Borrower ending after the fiscal quarter of the Borrower in which such
repayment is made).

 

Administrative Agent
shall mean BofA solely in its capacity as Administrative Agent for the Lenders
hereunder, and shall include any successor thereof as Administrative Agent,
appointed as such pursuant to Section 10.9.

 

Affected Loans shall
have the meaning given to such term in Section 2.5(g).

 

Affiliate shall
mean, with respect to any Person, any other Person which directly or indirectly
controls, is controlled by, or is under common control with, such Person or any
Subsidiary of such Person or any Person who is a director or officer of such
Person or any Subsidiary of such Person. 
For purposes of this definition, “control” shall mean the possession,
directly or indirectly, of the power to (i) vote twenty percent or more of
the securities having ordinary voting power for the election of directors (or
Persons performing similar functions) of such Person or (ii) direct or
cause the direction of management and policies of that Person, whether through
the ownership of voting securities, by contract or otherwise and either alone
or in conjunction with others or any group. 
Neither any Lender nor any Person controlling any Lender or under common
control with such Lender nor any of their respective Subsidiaries shall be
treated as an Affiliate of the Credit Parties or their respective
Subsidiaries.  Notwithstanding the
foregoing, for purposes of determining the Borrowing Base, no portfolio
companies of any of the Equity Investors or of their Affiliates (excluding
Holdings and its Subsidiaries) shall be deemed an Affiliate of the Borrower or
any Subsidiary of the Borrower.

 

Agent shall mean and
include each of the Administrative Agent, the Collateral Agent, the Syndication
Agent and, for the purposes of Section 11.8 and Articles 10 and 12, each
Co-Lead Arranger, and Agents shall mean all of such Persons,
collectively.

 

Agent Advance shall
have the meaning provided in Section 2.3(c).

 

Agent Advance Period
shall have the meaning given to such term in Section 2.3(c).

 

Aggregate Supermajority Lenders
shall mean those Non-Defaulting Lenders which would constitute Required Lenders
under, and as defined in, this Credit Agreement if the percentage “50%”
contained therein were changed to “66-2/3%”. 

 

Alternate Currency
shall mean, with respect to any Letter of Credit, any currency other than
Dollars as may be acceptable to the Administrative Agent and the Issuing Lender
with respect thereto in their sole discretion.

 

Applicable Equity Recapture Percentage
shall mean, at any time, (x) in the case of the Holdings IPO, 0%,
(y) in the case of any other Public Equity Offering by Holdings, 50%, provided
that if at any time the Consolidated Leverage Ratio (as established on the last
day of the respective fiscal quarter or year pursuant to the officer’s
certificate last delivered (or required to

 

3

 

be delivered) pursuant to
Section 7.1(a) or (b) but after giving effect to repayments of Loans
(but in the case of repayments of Revolving Loans only to the extent the Total
Revolving Credit Commitment was contemporaneously reduced by a corresponding
amount) made after the last day of such fiscal quarter or year and prior to the
respective application of Net Equity Proceeds pursuant to the provisions of
Section 2.5(k)) is equal to or less than 3.00:1.00, then the Applicable
Equity Recapture Percentage for purposes of this clause (y) shall instead
be 25%, provided further, that (i) if the Applicable Equity
Recapture Percentage would otherwise be 50% but after giving effect to the
respective application of Net Equity Proceeds pursuant to Section 2.5(k)
in a percentage less than 50%, the Consolidated Leverage Ratio would be equal
to or less than 3.00:1.00, the Applicable Equity Recapture Percentage for the
purposes of this clause (y) shall instead be 25% or such higher percentage
(not to exceed 50%) as may be necessary to reduce the Consolidated Leverage
Ratio to 3.00:1.00 after giving effect to such application and
(ii) notwithstanding anything to the contrary contained above, at any time
that a Default or an Event of Default is then in existence, the Applicable
Equity Recapture Percentage for the purposes of this clause (y) shall be
50%, and (z) in the case of any Equity Issuance by the Borrower or any other
Domestic Subsidiary or Canadian Subsidiary of Holdings, 100%.

 

Applicable Lending Office
shall mean, with respect to each Lender, such Lender’s Eurodollar Lending
Office in the case of a Eurodollar Rate Loan and such Lender’s Domestic Lending
Office in the case of a Base Rate Loan.

 

Applicable Margin
shall mean (i) initially a percentage per annum equal to (x) in the case
of Loans maintained as Base Rate Loans, 1.00%, and (y) in the case of
Loans maintained as Eurodollar Rate Loans, 2.50%, and (ii) from and after
October 1, 2005, the percentage per annum set forth below opposite the
respective Level (i.e., Level 1, Level 2 or Level 3, as the case may be) of
Average Excess Availability for the fiscal quarter of the Borrower most recently
ended; provided that the Applicable Margin shall not change until
five (5) Business Days after the end of such fiscal quarter.

 

	
  Level

  	
   

  	
  Average
  Excess

  Availability

  	
   

  	
  Eurodollar
  Rate Loans

  	
   

  	
  Base
  Rate Loans

  	
   

  
	
  Level
  1

  	
   

  	
  Greater
  than $250,000,000

  	
   

  	
  2.25

  	
  %

  	
  0.75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level
  2

  	
   

  	
  Equal
  to or less than $250,000,000 but greater than $100,000,000

  	
   

  	
  2.50

  	
  %

  	
  1.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level
  3

  	
   

  	
  Equal
  to or less than $100,000,000

  	
   

  	
  2.75

  	
  %

  	
  1.25

  	
  %

  

 

In the event that (i) the Consolidated Leverage Ratio for any
period of four consecutive fiscal quarters of the Borrower (taken as one
accounting period) is less than 5.25:1.00 (such Consolidated Leverage Ratio to
be determined based on the delivery of a certificate signed by a Responsible
Officer of the Borrower to the Administrative Agent (with a copy to be sent by
the Administrative Agent to each Lender), within 45 days of the last day of any
fiscal quarter (or 90 days of the last day of any fiscal year) of the Borrower,
which certificate shall set forth the calculation of the Consolidated Leverage
Ratio as at the last day of the four 

 

4

 

consecutive fiscal quarter
period of the Borrower then ended), then each of the Applicable Margins set
forth in the table above will be reduced by 0.25% and (ii) the
Consolidated Leverage Ratio for any period of four consecutive fiscal quarters
of the Borrower (taken as one accounting period) is less than 4.50:1.00,
determined as set forth in clause (i) above, then each of the Applicable
Margins set forth in the table above will be reduced by 0.50% (without giving
effect to any reduction based upon clause (i) above), in each case the
reduction shall be for the period commencing on the date five (5) Business Days
after the date of delivery of the certificate of a Responsible Officer of the
Borrower and ending on the date five (5) Business Days after the date on which
the next certificate of a Responsible Officer of the Borrower is delivered to
the Administrative Agent, provided that if no certificate has been delivered to
the Administrative Agent within 45 days after the last day of the most recently
ended fiscal quarter (or 90 days after the last day of any fiscal year) of the
Borrower, the Applicable Margins set forth in the table above (without giving
effect to any reduction based upon this paragraph) shall be applicable until
five (5) Business Days after the date the Borrower delivers a new certificate
to the Administrative Agent indicating a Consolidated Leverage Ratio that is
less than 5.25:1.00 or 4.50:1.00.

 

Notwithstanding anything to the contrary contained above in this
definition, Level 3 Applicable Margins (without giving effect to any
reduction based upon the Consolidated Leverage Ratio) shall apply at all times
during which there shall exist any Event of Default (it being understood that
after all Events of Default have been cured, the applicable Applicable Margin
shall be determined as otherwise provided above in this definition).

 

Applicable Unused Line Fee Percentage
shall mean the percentage per annum set forth below opposite the respective
Level (i.e., Level 1 or Level 2, as the case may be) of Average Revolver Usage
for the calendar month most recently ended (or, for the first payment of the
Unused Line Fee under Section 4.6, for the period commencing on the Initial
Borrowing Date and ending on the last day of the calendar month in which the
Initial Borrowing Date occurred); provided that the Applicable Unused
Line Fee Percentage shall not change until five (5) Business Days after the end
of such calendar month (or shorter period).  

 

	
  Level

  	
   

  	
  Average

  Revolver Usage

  	
   

  	
  Unused
  Line Fee

  	
   

  
	
  Level
  1

  	
   

  	
  Less
  than 50%

  	
   

  	
  0.375

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level
  2

  	
   

  	
  Equal
  to or greater than 50%

  	
   

  	
  0.250

  	
  %

  

 

Notwithstanding anything to the contrary contained above in this
definition, Level 1 pricing shall apply at all times during which there
shall exist any Default or Event of Default (it being understood that after all
Defaults and Events of Default have been cured, the applicable pricing level
shall be determined as otherwise provided above in this definition).

 

Assignment and Assumption Agreement
shall have the meaning given to such term in Section 11.6(b)(A).

 

Asset Sale shall
mean the sale, transfer or other disposition by Holdings, the Borrower or any
Subsidiary of Holdings or the Borrower to any Person other than the Borrower

 

5

 

or any Subsidiary Guarantor of
any asset of Holdings, the Borrower or such Subsidiary (other than sales,
transfers or other dispositions in the ordinary course of business of inventory
(including Rental Equipment) and/or obsolete or excess equipment); provided
that, except as otherwise provided in the immediately succeeding proviso, all
sale-leaseback transactions shall be deemed to constitute Asset Sales, provided,
further, any such sales, transfers or other dispositions (whether in one
or a series of such transactions) generating Net Sale Proceeds of less than
$250,000 shall not constitute an Asset Sale for the purposes of this Credit
Agreement.

 

Attorney Costs shall
mean and include all reasonable fees, expenses, and disbursements of any law
firm or other counsel engaged by the Administrative Agent, the Collateral Agent
or the Syndication Agent.

 

Auditors shall mean
a nationally-recognized firm of independent public accountants selected by the
Borrower and reasonably satisfactory to the Administrative Agent.  For purposes of this Credit Agreement, the
Borrower’s current firm of independent public accountants, Ernst & Young
LLP, shall be deemed to be satisfactory to the Administrative Agent.

 

Average Excess Availability
shall mean, for any period, an amount equal to (i) the sum of Excess
Availability for each day during such period, divided by (ii) the number of
days in such period.

 

Average Lease Term
shall mean, as of any date, an amount equal to (x) the total number of
months that all Rental Equipment has been on rent as of such date (including
for this purpose the month in which the date recalculation occurs) divided by
(y) the number of all existing Units on rent as of such date.

 

Average Rental Rate
shall mean, at any time, the average monthly rental payment per unit of leased
Rental Equipment.

 

Average Revolver Usage
shall mean, for any period, an amount equal to (i) the quotient of
(x) the sum of the Revolving Outstandings for each day during such period,
divided  by (y) the number of days in such period, divided
by (ii) the quotient of (x) the sum of the Total Revolving Credit
Commitments for each day during such period, divided  by
(y) the number of days in such period, all as determined by the
Administrative Agent.

 

Bank Assignment Agreement
shall have the meaning given to such term in the recitals to this Credit
Agreement.

 

Bank Products shall
mean each and any of the following types of services or facilities extended to
any of the Credit Parties by BofA or any Affiliate of BofA or any other Lender
(or any of its Affiliates) reasonably acceptable to the Administrative Agent
(it being agreed by the Administrative Agent that each of the Lenders party to
this Credit Agreement (and their respective Affiliates) on the Effective Date
is reasonably acceptable to the Administrative Agent):  (a) commercial credit cards;
(b) cash management services (including controlled disbursement services,
ACH Transactions, and interstate depository network services), (c) Hedge
Agreements; and (d) foreign exchange; provided that Bank Products
consisting of cash

 

6

 

management services, including
controlled disbursement services, and ACH Transactions may only be provided to
a Credit Party by BofA or any Affiliate of BofA.

 

Bankruptcy Code
shall have the meaning given to such term in Section 9.1(e).

 

Base Rate shall
mean, for any day, the greater of (a) the rate of interest in effect for
such day as publicly announced from time to time by BofA in Charlotte, North
Carolina as its “prime rate” (the “prime rate” being a rate set by BofA based
upon various factors including BofA’s costs and desired return, general
economic conditions and other factors, and is used as a reference point for
pricing some loans, which may be priced at, above, or below such announced
rate) or (b) the Federal Funds Rate in effect for such day, plus
0.50% per annum, provided, that, in the Administrative Agent’s sole discretion,
such amount is subject to change at any time without notice to the Borrower (it
being understood and agreed that no change shall be made under this proviso
except as a result of a change in the above “prime rate” or Federal Funds
Rate).  With respect to any determination
of any interest rate which is based on the Base Rate, any change in the prime
rate announced by BofA shall take effect at the opening of business on the day
specified in the public announcement of such change, and any change in the Federal
Funds Rate shall take effect as of the date of such change.

 

Base Rate Loan shall
mean a Loan bearing interest as provided in Section 4.2.

 

Board of Directors
shall mean the Board of Directors of Holdings.

 

BofA shall mean Bank
of America, N.A. (and shall include any successor thereto).

 

Borrower shall have
the meaning given to such term in the preamble to this Credit Agreement.

 

Borrowing shall mean
an incurrence of Revolving Loans or Term Loans of the same Type from all the
Lenders on the same day (or resulting from Conversion or Continuance on the
same date), having, in the case of Eurodollar Rate Loans, the same Interest
Period.

 

Borrowing Base shall
have the meaning given to such term in Section 2.2(a).

 

Borrowing Base Certificate
shall have the meaning given to such term in Section 7.1(e).

 

Borrowing Base Deficiency
shall mean, at any time, the amount, if any, by which the Revolving
Outstandings at such time exceeds the Borrowing Base at such time.

 

BTCC shall mean BT
Commercial Corporation (and shall include any successor thereto).

 

Business Day shall
mean (a) any day that is not a Saturday, Sunday or a day on which banks in
New York, New York or Charlotte, North Carolina are required or permitted to be
closed and (b) with respect to all notices, determinations, fundings, and
payments in connection with the Eurodollar Rate or Eurodollar Rate Loans, any
day that is a Business Day

 

7

 

pursuant to clause (a)
preceding and that is also a day on which trading in Dollars is carried on by
and between banks in the London interbank market.

 

Canadian Bank Control Agreement
shall have the meaning provided in Section 2.6(e).

 

Canadian Security Agreement
shall mean and include the security agreement executed by WSC pursuant to
Section 5.1(d)(ii) and each other security agreement from time to time
executed by any Canadian Subsidiary pursuant to Section 7.16 or in
connection with any designation by the Borrower of an additional province of
Canada as a Qualified Canadian Jurisdiction, in each case in the form of
Exhibit F-2 or such other form or forms as Canadian counsel for the Collateral
Agent may suggest with respect to the Canadian Subsidiary to become party, or
the assets subject, thereto or as may otherwise be reasonably acceptable to the
Collateral Agent, and as same may be amended, modified or supplemented from
time to time in accordance with the terms hereof and thereof.

 

Canadian Subsidiaries Guaranty
shall mean and include the guaranty executed by WSC pursuant to
Section 5.1(s)(ii) and each other guaranty from time to time executed by
any other Canadian Subsidiary pursuant to Section 7.16, in each case in
the form of Exhibit J-2 or such other form as Canadian counsel for the
Collateral Agent may suggest with respect to the Canadian Subsidiary party
thereto or as may otherwise be reasonably acceptable to the Collateral Agent,
and as same may be amended, modified or supplemented from time to time in
accordance with the terms hereof and thereof.

 

Canadian Subsidiary
shall mean, as to any Person, any Subsidiary of such Person that is organized
under the laws of Canada or any province thereof.  Unless otherwise qualified, all references to
a “Canadian Subsidiary” or to “Canadian Subsidiaries” in this Credit Agreement
shall refer to a Canadian Subsidiary or Canadian Subsidiaries of Holdings.

 

Canadian Subsidiary Guarantor
shall mean (i) WSC and (ii) each Canadian Subsidiary of Holdings that
executes and delivers a counterpart of the Canadian Subsidiaries Guaranty after
the Effective Date pursuant to the requirements of Section 7.16.

 

CapEx Rollover Amount
shall have the meaning given to such term in Section 8.4(b).

 

Capital Expenditures
shall mean, as applied to any Person for any period, the aggregate of all
expenditures of (whether paid in cash or accrued as liabilities (including
Capitalized Lease Obligations)) such Person and its Subsidiaries during that
period that, in conformity with GAAP, are or are required to be included in
property and equipment or, with respect to Rental Equipment, lease equipment
reflected in the consolidated balance sheet of such Person; provided
that Capital Expenditures shall not include the purchase price paid in
connection with Permitted Acquisitions consummated in accordance with Section 7.17.

 

Capital Lease, as
applied to any Person, shall mean any lease of any property (whether real,
personal or mixed) by that Person or any of its Subsidiaries as lessee which,
in conformity with GAAP, is accounted for as a capital lease on the consolidated
balance sheet of that Person.

 

8

 

Capitalized Lease Obligations
shall mean the obligations under Capital Leases of the Borrower and its
Subsidiaries in each case taken at the amount thereof accounted for as
liabilities in accordance with GAAP.

 

Cash Equivalents
shall mean (i) marketable direct obligations issued or unconditionally
guaranteed by the United States Government or issued by any agency thereof and
backed by the full faith and credit of the United States, in each case maturing
within one year from the date of acquisition thereof; (ii) marketable
direct obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition thereof and, at the time
of acquisition, having the highest rating obtainable from S&P or Moody’s;
(iii) commercial paper maturing not more than one year from the date of
creation thereof and, at the time of acquisition, having the highest rating
obtainable from either S&P’s or Moody’s; (iv) certificates of deposit
or bankers’ acceptances maturing within one year from the date of acquisition
thereof issued by any commercial bank organized under the laws of the United
States of America or any state thereof or the District of Columbia that
(a) is at least “adequately capitalized” (as defined in the regulations of
its primary Federal banking regulator) and (b) has Tier 1 capital (as
defined in such regulations) of not less than $500,000,000; (v) repurchase
agreements with respect to, and which are fully secured by a perfected security
interest in, obligations of a type described in clause (i) or
clause (ii) above and are with any commercial bank described in
clause (iv) above; and (vi) shares of any money market mutual fund that
(a) has its assets invested continuously in the types of investments
referred to in clauses (i) through (v) above, (b) has net assets of not
less than $500,000,000, and (c) has the highest rating obtainable from
either S&P or Moody’s.

 

Casualty Loss shall
have the meaning given to such term in Section 7.10.

 

CERCLA shall mean
the Comprehensive Environmental Response, Compensa­tion, and Liability Act of
1980, as amended, 42 U.S.C. § 9601 et  seq.

 

Certificate of Title
shall mean certificates of title, certificates of ownership or other
registration certificates issued or required to be issued under the certificate
of title or other similar laws of any State for any of the Rental Equipment.

 

Certificated Units
shall mean each Unit that is the subject of a Certificate of Title issued under
the motor vehicle or other applicable statute of any State of the United States
of America.

 

Change of Control
shall mean, at any time and for any reason whatsoever, (a) Holdings shall
cease to own directly 100% on a fully diluted basis of the economic and voting
interest in the Borrower’s capital stock or (b) the Borrower shall cease
to own directly 100% on a fully diluted basis of the economic and voting
interests in the Unit Subsidiary’s equity or (c) the Equity Investors
and/or their respective Affiliates and Permitted Transferees shall cease to own
on a fully diluted basis in the aggregate (x) prior to the consummation of
the Holdings IPO, at least 51% of the economic and voting interest in Holdings’
capital stock and (y) after consummation of the Holdings IPO, at least 25%
of the economic and voting interest in Holdings’ capital stock or
(d) after the consummation of the Holdings IPO, the Equity Investors
and/or their respective Affiliates and Permitted Transferees shall own on a
fully diluted basis in

 

9

 

the aggregate less than 35% of
the economic and voting interest in Holdings’ capital stock and any Person or
group (within the meaning of the Securities Exchange Act of 1934 and the rules
of the Securities and Exchange Commission thereunder as in effect on the date
hereof) (other than the Equity Investors and their respective Affiliates and
Permitted Transferees) shall own on a fully diluted basis in the aggregate a
percentage of the economic and voting interest in Holdings’ capital stock
greater than the percentage of the economic and voting interest in Holdings’
capital stock owned in the aggregate at such time by the Equity Investors
and/or their respective Affiliates and Permitted Transferees on a fully diluted
basis or (e) Continuing Directors cease to constitute a majority of the
members of the Board of Directors of Holdings or (f) a “change of control”
or similar event shall occur as provided in any Permitted Preferred Stock (or
the certificates of designation therefor), the Senior Secured Notes Documents,
the Senior Unsecured Notes Documents or any agreement, document or instrument
governing Indebtedness permitted under Section 8.3(n).

 

Code shall mean the
Internal Revenue Code of 1986, as amended from time to time, and the
regulations promulgated and rulings issued thereunder.  Section references to the Code are to the
Code, as in effect at the date of this Credit Agreement and any subsequent
provisions of the Code, amendatory thereof, supplemental thereto or substituted
therefor.

 

Co-Documentation Agent
shall have the meaning given to such term in the preamble to this Credit
Agreement.

 

Co-Lead Arranger
shall have the meaning given to such term in the preamble to this Credit
Agreement.

 

Collateral shall
mean all of the Collateral as defined in the Collateral Documents.

 

Collateral Access Agreements
shall have the meaning given to such term in Section 5.1(e).

 

Collateral Agent
shall mean, collectively, BofA acting as collateral agent pursuant to the
Collateral Documents, any Affiliate of BofA acting as a sub-collateral agent or
a separate collateral agent pursuant to any of the Collateral Documents and
DBTCA or any Affiliate thereof (including BTCC) acting as a sub-collateral
agent or a separate collateral agent pursuant to any of the Collateral
Documents, including with respect to all or any portion of the Certificated
Units and, in connection therewith, being the Person whose security interest in
such Certificated Units may be noted (in lieu of BofA) from time to time on
certificates of title issued with respect to such Certificated Units.

 

Collateral Documents
shall mean each Mortgage, each Security Agreement, the U.S. Pledge Agreement,
the Concentration Account Agreement, the Collection Bank Agreements, the
Custodian Agreement and all other contracts, instruments and other documents
now or hereafter executed and delivered in connection with this Credit
Agreement or the Existing Credit Agreement, pursuant to which liens and
security interests are granted to the Collateral Agent in the Collateral for
the benefit of the Lenders and any other Secured Creditors.

 

10

 

Collection Account
shall mean the account established at a Collection Bank pursuant to the
Collection Bank Agreement, into which funds shall be transferred pursuant to
Section 2.6.

 

Collection Bank
shall have the meaning given to such term in Section 2.6(b)(i).

 

Collection Bank Agreement
shall have the meaning given to such term in Section 2.6(b)(i).

 

Collective Bargaining Agreements
shall have the meaning given to such term in Section 5.1(m).

 

Commitment of a
Lender shall mean its Revolving Credit Commitment (if any) and its Incremental
Revolving Credit Commitment (if any), as in effect from time to time pursuant
to the terms of this Credit Agreement.

 

Concentration Account
shall have the meaning given to such term in Section 2.6(c).

 

Concentration Account Agreement
shall have the meaning given to such term in Section 2.6(c).

 

Consolidated Debt
shall mean, at any time, all Indebtedness of the Borrower and its Subsidiaries
(i) for borrowed money or (ii) with respect to Capitalized Lease
Obligations, in each case determined on a consolidated basis.

 

Consolidated EBITDA
shall mean, in any fiscal period, Consolidated Net Income (other than
extraordinary items of the Borrower and its Subsidiaries for such period but
including any Inventory or Rental Equipment adjustments) for such period,
(i) plus the amount of all Consolidated Interest Expense, federal, state
and local income or franchise tax expense (in each case to the extent such tax
expense is included in the Borrower’s Financial Statements as income tax
expense), depreciation and amortization, including amortization or write off of
any goodwill or other intangibles, for such period, (ii) less gains and
plus losses attributable to any fixed asset sales (other than Inventory and
Rental Equipment) for such period, (iii) plus the amortization or
write-off of deferred or capitalized debt issuance costs for such period,
(iv) plus or minus (as the case may be) any other non-cash items (other
than any write-off, write-down or reserve established by the Borrower against
Accounts, Inventory and/or Rental Equipment) and (v) plus financing fees,
tender premiums, call premiums and other non-recurring expenses in connection
with (w) this Credit Agreement to the extent payable on the Effective Date
or with respect to obtaining Incremental Revolving Credit Commitments,
(x) the Holdings IPO, (y) the issuance of Indebtedness permitted pursuant
to Section 8.3(n), and (z) the tender for or repurchase of the Senior
Secured Notes and the Senior Unsecured Notes, all determined in accordance with
GAAP, without duplication and only to the extent added or deducted (as the case
may be) in calculating Consolidated Net Income for the respective period.

 

Consolidated Interest Coverage Ratio
shall mean, for any fiscal period, the ratio of (x) Consolidated EBITDA to
(y) Consolidated Interest Expense, in each case for such fiscal period.

 

11

 

Consolidated Interest Expense
shall mean, for any fiscal period, the aggregate consolidated interest accrued
and/or paid by the Borrower and its Subsidiaries in respect of Indebtedness
determined on a consolidated basis in accordance with GAAP during such fiscal
period, including, without limitation, amortization of original issue discount
on any Indebtedness and of all fees payable in connection with the incurrence
of such Indebtedness (to the extent included in interest expense), the interest
portion of any deferred payment obligation, the interest component of any
Capitalized Lease Obligations, net cash costs under any Hedge Agreements, all
capitalized interest and interest paid by the Borrower or its Subsidiaries on
debt guaranteed by the Borrower or its Subsidiaries; provided that
Consolidated Interest Expense shall not include (i) amortization or write-off
of deferred or capitalized debt issuance costs or (ii) any financing fees,
tender premiums, call premiums and other non-recurring expenses in connection
with (w) this Credit Agreement to the extent payable on the Effective Date
or with respect to obtaining Incremental Revolving Credit Commitments,
(x) the Holdings IPO, (y) the issuance of Indebtedness permitted pursuant
to Section 8.3(n) and (z) the tender for or repurchase of the Senior
Secured Notes and the Senior Unsecured Notes.

 

Consolidated Leverage Ratio
shall mean, for any fiscal period, the ratio of Consolidated Debt on the last
day of such fiscal period to Consolidated EBITDA for such fiscal period; provided
that for the purposes of calculating the Consolidated Leverage Ratio only,
Consolidated EBITDA for any such period shall be increased (or decreased) on a pro
forma basis by Consolidated EBITDA attributable to each Significant
Acquisition (or each Significant Divestiture), in each case consummated during
such period in accordance with the terms hereof, so long as (in the case of any
such increase) the amount of any such increase is the actual Consolidated
EBITDA earned by the Person (or directly attributable to the business, product
line or assets) acquired pursuant to the respective Significant Acquisition and
such actual Consolidated EBITDA is set forth in reasonable detail and with
reasonable supporting documentation in a written certificate that is executed
by a Responsible Officer of the Borrower and is delivered, and is satisfactory,
to the Administrative Agent.

 

Consolidated Net Income
shall mean, for any fiscal period, the consolidated net income of the Borrower
and its Subsidiaries for such fiscal period as determined in accordance with
GAAP.

 

Contingent Obligations
shall mean as to any Person, without duplication, any obligation of such Person
guaranteeing or intended to guarantee any Indebtedness, leases, dividends or
other obligations (“primary obligations”) 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,
(a) to purchase any such primary obligation or any property constituting
direct or indirect security therefor, (b) to advance or supply funds
(i) for the purchase or payment of any such primary obligation or
(ii) to maintain working capital or equity capital of the primary obligor
or otherwise to maintain the net worth or solvency of the primary obligor,
(c) to purchase property, securities or services primarily for the purpose
of assuring the owner of any such primary obligation of the ability of the
primary obligor to make payment of such primary obligation or
(d) otherwise to assure or hold harmless the owner of such primary
obligation against loss in respect thereof; provided, however,
that the term Contingent Obligations shall not include (x) endorsements of
instruments for deposit or collection in the ordinary course of business or
(y) guarantees made by a Person (other than the

 

12

 

Unit Subsidiary) of the
obligations of the Borrower or a Wholly-Owned Subsidiary of such Person which
do not constitute Indebtedness of the Borrower or such Wholly-Owned Subsidiary
and are incurred in the ordinary course of business of the Borrower or such
Wholly-Owned Subsidiary.  The amount of
any Contingent Obligation shall be deemed to be an amount equal to the stated
or determinable amount of the primary obligation in respect of which such
Contingent 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) as determined by such Person in good faith.

 

Continue, Continuation
and Continuance each shall refer to a continuation of Loans pursuant to
Section 4.3, provided that none of such terms shall be deemed to
constitute the making of a Loan for purposes of this Credit Agreement.

 

Continuing Directors
shall mean the directors of Holdings on the Effective Date and each other
director if such director’s election or nomination for the election to the
Board of Directors is recommended by a majority of the then Continuing
Directors.

 

Convert, Conversion
and Converted each shall refer to a conversion of Loans of one Type into
Loans of another Type pursuant to Section 4.3, provided that each
such term shall not constitute the making of a Loan for purposes of this Credit
Agreement.

 

Credit Agreement
shall mean this Credit Agreement, as the same may be modified, amended,
extended, restated, amended and restated or supplemented from time to time.

 

Credit Agreement Parties
shall mean Holdings and the Borrower.

 

Credit Documents
shall mean, collectively, this Credit Agreement, the Notes, the Fee Letter,
each of the Collateral Documents, each Guaranty, each U.S. Subsidiary Joinder
Agreement, each Incremental Commitment Agreement and all other documents and
agreements now or hereafter executed and delivered by a Credit Party in
connection herewith or therewith, as the same may be modified, amended,
extended, restated or supplemented from time to time.

 

Credit Event shall
mean the making of a Loan or the issuance of a Letter of Credit.

 

Credit Party shall
mean each of Holdings, the Borrower and the Subsidiary Guarantors, individually,
and Credit Parties shall mean two or more of such Persons, collectively.

 

Custodian Agreement
shall have the meaning given to such term in Section 5.1(v).

 

Cypress Group shall
mean the Cypress Group L.L.C., Cypress Merchant Banking Partners L.P. and Cypress
Offshore Partners L.P. or any new partnership created to co-invest with Cypress
Group L.L.C., Cypress Merchant Banking Partners L.P. or Cypress Offshore
Partners L.P.; provided that Persons which had a majority of the equity
interests in or otherwise controlled Cypress Group L.L.C., Cypress Merchant
Banking Partners L.P. and/or Cypress

 

13

 

Offshore Partners L.P. on the
Effective Date or any of their Permitted Transferees either (x) hold a
majority of the equity interests of such new partnership or (y) control
such new partnership.

 

DBTCA shall mean
Deutsche Bank Trust Company Americas (and shall include any successor thereto).

 

Default shall mean
an event, condition or circumstance which with the giving of notice, the
passage of time or both would be (if not cured, waived or otherwise remedied
during such time) an Event of Default.

 

Defaulting Lender
shall have the meaning given to such term in Section 2.4(c).

 

Disbursement Account
shall have the meaning given to such term in Section 2.3(b).

 

Dividend shall have
the meaning given to such term in Section 8.6.

 

Dollar Equivalent of
an amount denominated in an Alternate Currency shall mean, at any time for the
determination thereof, the amount of Dollars which could be purchased with the
amount of the Alternate Currency involved in such computation at the spot
exchange rate therefor as quoted by the Administrative Agent as of 11:00 a.m.
(New York time) on the date two Business Days prior to the date of any determination
thereof for purchase on such date, provided that the Dollar Equivalent
of any unpaid drawing under a Letter of Credit expressed in an Alternate
Currency shall be determined at the time the drawing under the related Letter
of Credit was paid or disbursed by the Issuing Lender, provided  further,
that for purposes of (x) determining compliance with Sections 2.2(a),
2.5(d) and 3.1(a) and (y) calculating Fees pursuant to Section 4.7,
the Dollar Equivalent of any amounts denominated in an Alternate Currency shall
be revalued on a monthly basis using the spot exchange rates therefor as shown
in The Wall Street Journal (or, if same does not provide such exchange
rates, on such other basis as is satisfactory to the Administrative Agent) on
the last Business Day of each calendar month, provided, however,
that at any time during a calendar month, if the Revolving Outstandings (for
the purposes of the determination thereof, using the Dollar Equivalent as
recalculated based on the spot exchange rate therefor as shown in The Wall
Street Journal (or, if same does not provide such exchange rates, on such other
basis as is satisfactory to the Administrative Agent) on the respective date of
determination pursuant to this exception) would exceed 85% of the Total Revolving
Credit Commitment, then at the discretion of the Administrative Agent or at the
request of the Required Lenders, the Dollar Equivalent shall be reset based
upon the spot exchange rates on such date as shown in The Wall Street
Journal (or, if same does not provide such exchange rates, on such other basis
as is satisfactory to the Administrative Agent), which rates shall remain in
effect until the first Business Day of the then immediately succeeding calendar
month or such earlier date, if any, as the rate is reset pursuant to this
proviso.  Notwithstanding anything to the
contrary contained in this definition, at any time that a Default or an Event
of Default then exists, the Administrative Agent may revalue the Dollar
Equivalent of any amounts outstanding under any Letters of Credit in an
Alternate Currency in its sole discretion.

 

14

 

Dollar(s) and the
sign $ shall each mean freely transferable lawful money of the United
States.

 

Domestic Lending Office
shall mean, with respect to any Lender, the office of such Lender specified as
its “Domestic Lending Office” opposite its name on Schedule I, as such annex
may be amended from time to time.

 

Domestic Subsidiary
shall mean, as to any Person, any Subsidiary of such Person that is
incorporated, organized or formed under the laws of the U.S., any State
thereof, the United States Virgin Islands or Puerto Rico.  Unless otherwise qualified, all references to
a “Domestic Subsidiary” or to “Domestic Subsidiaries” in this Credit Agreement
shall refer to a Domestic Subsidiary or Domestic Subsidiaries of Holdings.

 

Effective Date shall
have the meaning provided in Section 11.14.

 

Eligible Accounts Receivable
shall mean, as at any date, the aggregate of all Accounts of the Qualified
Credit Parties then due and payable in U.S. Dollars or Canadian Dollars and not
deemed by the Administrative Agent in its Permitted Discretion (after at least
two Business Days’ prior notice to Borrower by Administrative Agent) to be
ineligible for inclusion in the calculation of the Borrowing Base.  In determining the amount to be so included,
(x) the face amount of such Accounts shall be reduced, without
duplication, by the amount of all returns, discounts, deferred revenue,
progress billings, claims, contras, credits, charges, chargebacks, rebates or
other allowances, amounts unearned and unapplied cash (in each case whether
such reductions are attributable to one or more Accounts) and (but without
duplication of any of the foregoing) by the aggregate amount of all reserves,
limits and deductions provided for in this definition and elsewhere in this
Credit Agreement and (y) the amount of Accounts included shall in no event
exceed the book value thereof as determined in a manner consistent with the
Borrower’s Financial Statements.  Unless
otherwise approved in writing by the Administrative Agent, no Account shall be
deemed to be an Eligible Account Receivable if:

 

(a)           it arises out of a
sale or Lease for which no invoice has been provided to the account debtor; or

 

(b)           it arises out of a
sale or Lease made to an Affiliate; or

 

(c)           the Account is
unpaid on the date which is (i) 90 days after the date on which the
original invoice provides that such payment is due or (ii) 120 days after
the date of the original invoice; or

 

(d)           the Account (other
than Accounts having an aggregate fair market value not exceeding $5,000,000 at
any time) provides for payment more than 91 days after the date of the original
invoice; or

 

(e)           it is from the same
account debtor (or any Subsidiary or parent company thereof) and 50% or more,
in face amount, of all Accounts from such account debtor (or any Subsidiary or
parent company thereof) are ineligible pursuant to (c) above; or

 

15

 

(f)            the Account, when
aggregated with all other Accounts of such account debtor (and any Subsidiary
or parent company thereof), exceeds 15% in face value of all Accounts of the
Borrower and its Subsidiaries whose Accounts are included in the Borrowing Base
then outstanding, to the extent of such excess; provided, however,
that Accounts supported or secured by insurance acceptable to the
Administrative Agent or by an irrevocable letter of credit in form and
substance satisfactory to the Administrative Agent, issued by a financial
institution satisfactory to the Administrative Agent, and duly pledged to the
Collateral Agent (together with sufficient documentation to permit direct draws
by the Collateral Agent) shall be excluded from this clause (f); or

 

(g)           (i) the account
debtor is also a creditor of the Borrower or any of its Subsidiaries (other
than account debtors which have provided to the Administrative Agent a
“no-offset” letter in form and substance satisfactory to the Administrative
Agent), (ii) the account debtor has disputed its liability on, or the
account debtor has made any claim with respect to, such Account or any other
Account due from such account debtor to the Borrower or any of its
Subsidiaries, which has not been resolved or (iii) the Account otherwise
is or may become subject to any right of setoff by the account debtor; or

 

(h)           the account debtor
has commenced a voluntary case under the federal bankruptcy laws or any foreign
bankruptcy or insolvency laws, as now constituted or hereafter amended, or made
an assignment for the benefit of creditors, or if a decree or order for relief
has been entered by a court having jurisdiction over the account debtor in an
involuntary case under the federal bankruptcy laws or any foreign bankruptcy or
insolvency laws, as now constituted or hereafter amended, or if any other
petition or other application for relief under the federal bankruptcy laws or
any foreign bankruptcy or insolvency laws has been filed by or against the
account debtor, or if the account debtor has filed a certificate of dissolution
under applicable state or foreign law or shall be liquidated, dissolved or
wound up, or shall authorize or commence any action or proceeding for
dissolution, winding-up or liquidation, or if the account debtor has failed,
suspended business, declared itself to be insolvent, is generally not paying
its debts as they become due or has consented to or suffered a receiver,
trustee, liquidator or custodian to be appointed for it or for all or a
significant portion of its assets or affairs, unless (i) the payment of
Accounts from such account debtor is secured in a manner satisfactory to the
Administrative Agent, (ii) with respect to a voluntary or involuntary
bankruptcy or similar proceeding, the court presiding over such proceeding has
authorized such account debtor to pay such Account to the Borrower or
(iii) if the Account from such account debtor arises subsequent to a
decree or order for relief with respect to such account debtor under the
federal bankruptcy laws or any foreign bankruptcy or insolvency laws, as now or
hereafter in effect, the Administrative Agent shall have determined that the
timely payment and collection of such Account will not be impaired; or

 

(i)            the sale or Lease
is to an account debtor outside of the United States and Canada, unless the
Account is supported by insurance acceptable to the Administrative Agent or the
account debtor thereon has supplied the Borrower with an irrevocable letter of
credit in form and substance satisfactory to the Administrative Agent, issued
by a

 

16

 

financial institution satisfactory to the Administrative Agent and
which has been duly pledged to the Collateral Agent (together with sufficient
documentation to permit direct draws by the Collateral Agent); or

 

(j)            with respect to
Accounts arising from a sale, the sale to the account debtor is on a bill-and-hold,
guaranteed sale, sale-and-return, sale on approval or consignment basis or made
pursuant to any other written agreement providing for repurchase or return
(other than pursuant to ordinary course of business warranties); or

 

(k)           the Administrative
Agent determines in its Permitted Discretion that such Account may not be paid
by reason of the account debtor’s financial inability to pay; or

 

(l)            the account debtor
is (I) the United States of America or any department, agency or
instrumentality thereof or (II) Canada or any department, agency or
instrumentality thereof, except (i) in the case of preceding clause (I),
(A) to the extent that the amount of such Account, together with the
amount of all such other Accounts of the Qualified Credit Parties, does not
exceed in the aggregate 15% in face value of all Accounts of the Borrower and
its Subsidiaries whose Accounts are included in the Borrowing Base then
outstanding or (B) if the Borrower duly assigns its rights to payment of
such Account to the Collateral Agent pursuant to the Assignment of Claims Act
of 1940, as amended (31 U.S.C. § 3727 et  seq.) and
(ii) in the case of preceding clause (II), if the respective Canadian
Subsidiary duly assigns its rights in respect of any Crown Debts (as that term
is defined in the Financial Administration Act (Canada)) to which Part VII of
the Financial Administration Act (Canada) applies in accordance with applicable
provisions of such Act; or

 

(m)          the act of the Rental
Equipment being leased and put in service giving rise to such Account has not
occurred or the services giving rise to such Account otherwise have not been performed
by the applicable Qualified Credit Party and accepted by the account debtor or,
with respect to an Account arising from a sale, the Account does not represent
a final sale; or

 

(n)           the Account does not
comply in all material respects with all applicable legal requirements;

 

(o)           the Collateral Agent
does not have a valid and perfected first priority security interest in or Lien
on such Account or the Account does not otherwise conform in all material
respects to the representations and warranties contained in this Credit
Agreement or any of the other Credit Documents; or

 

(p)           the Account arises
out of the sale or lease of Rental Equipment that is the subject of a Surety
Bond or is otherwise covered by a Surety Bond or securing any obligations under
a Surety Bond.

 

Eligible Rental Equipment
shall mean all Rental Equipment of the Qualified Credit Parties held for sale
or lease or leased by the respective Qualified Credit Party as lessor in the
ordinary course of business and not deemed by the Administrative Agent acting
in its Permitted Discretion (after at least two Business Days’ prior notice to
Borrower by

 

17

 

Administrative Agent) to be
ineligible for inclusion in the calculation of the Borrowing Base.  In any event, Eligible Rental Equipment shall
account for reserves for Rental Equipment that is unrentable.  In determining the amount to be so included,
such Rental Equipment shall be valued on a net book value basis consistent with
the Borrower’s consolidated month-end balance sheet, less any reserves
otherwise required by the Administrative Agent pursuant to Section 2.2(b),
and less any Rental Equipment that the Administrative Agent determines
to be ineligible pursuant to Section 2.2(b).  Unless otherwise approved in writing by the
Administrative Agent, no Rental Equipment shall be deemed Eligible Rental
Equipment if:

 

(a)           the Rental Equipment
is not owned solely by a Qualified Credit Party or with respect to which the
respective Qualified Credit Party does not have good, valid and marketable
title, or is held by a third party for sale on a bill-and-hold, guaranteed
sale, sale-and-return, sale on approval or consignment basis; or

 

(b)           the Rental Equipment
(other than Rental Equipment being leased or returned by a customer) is not
stored on property that is either (i) owned or leased by a Qualified
Credit Party or (ii) owned or leased by a warehouseman that has contracted
with a Qualified Credit Party to store Rental Equipment on such warehouseman’s
property, provided that, except as otherwise agreed to by the Collateral
Agent for purposes of determining Eligible Rental Equipment, with respect to
Rental Equipment stored on property leased by a Qualified Credit Party, the
Borrower shall have delivered in favor of the Collateral Agent a Collateral
Access Agreement executed by the lessor of such property, and, with respect to
Rental Equipment stored on property owned or leased by a warehouseman, the
Borrower shall have delivered to the Collateral Agent a Collateral Access
Agreement executed by such warehouseman; or

 

(c)           the Rental Equipment
is not subject to a perfected first priority Lien in favor of the Collateral
Agent except (i) with respect to Rental Equipment constituting
Non-Certificated Units, all such Non-Certificated Units with respect to which
all applicable UCC and PPSA filings and registrations have been made as
required by the Credit Documents and (ii) with respect to Eligible Rental
Equipment stored at sites described in clause (b) above, for Liens for
normal and customary warehouseman charges and landlords’ Liens, in each
instance, that constitute Permitted Liens, provided that the value of
any Rental Equipment shall be reduced by the amount of any obligations secured
by any such Permitted Liens which are prior to the Lien in favor of the
Collateral Agent; or

 

(d)           the Rental Equipment
is not located in the United States or a Qualified Canadian Jurisdiction unless
arrangements for the granting and perfection of a security interest in such
Rental Equipment have been made in a manner acceptable to the Administrative
Agent in its discretion; or

 

(e)           the Rental Equipment
does not conform in all material respects to the representations and warranties
contained in the Credit Agreement or any of the other Credit Documents; or

 

18

 

(f)            whether or not
located on property owned or leased by the Borrower or any other Qualified
Credit Party, it is not segregated or otherwise separately identifiable from
goods of others, if any, stored on the same premises as such Rental Equipment;
or

 

(g)           the Rental Equipment
(other than storage containers) is owned by a Qualified Credit Party other than
the Unit Subsidiary, in each case unless (x) the respective Rental
Equipment constitutes Qualified Certificated Units owned by the Borrower or a
Wholly-Owned Subsidiary of the Borrower which is a U.S. Subsidiary Guarantor,
and in each case with respect to which all actions required to be taken
pursuant to Section 7.18 have in fact been taken or (y) the Rental
Equipment is located in a Qualified Canadian Jurisdiction and is owned by a
Wholly-Owned Canadian Subsidiary of the Borrower which is a Canadian Subsidiary
Guarantor; or

 

(h)           the Rental Equipment
is subject to Sales-Type Leases or leased by the Borrower or a Subsidiary
thereof as lessor pursuant to a Lease which contains a bargain purchase option;
or

 

(i)            the Rental
Equipment has been or reasonably should be classified by the Borrower or its
Subsidiaries as unrentable.

 

Eligible Transferee
shall mean and include (i) a commercial bank, (ii) a financial
institution, (iii) with respect to any Lender, a fund which invests in
bank loans of the types made pursuant to this Credit Agreement as to which such
Lender (or an Affiliate of such Lender) acts as an investment advisor or
(iv) any other “accredited investor” (as defined in SEC
Regulation D).

 

Employment Agreements
shall have the meaning given to such term in Section 5.1(m).

 

Environmental Claims
shall mean any and all administrative, regulatory or judicial actions, suits,
demands, demand letters, claims, liens, notices of noncompliance or violation,
investigations (other than internal reports prepared by the Borrower or any of
its Subsidiaries solely in the ordinary course of such Person’s business or as
required in connection with a financing transaction and not in response to any
third party action or request of any kind) or proceedings relating in any way
to any Environmental Law or any permit issued, or any approval given, under any
such Environmental Law (hereafter, “Claims”), including, without
limitation, (a) any and all Claims by governmental or regulatory
authorities for enforcement, cleanup, removal, response, remedial or other
actions or damages pursuant to any applicable Environmental Law, and
(b) any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief resulting
from Hazardous Materials arising from alleged injury or threat of injury to
health, safety or the environment.

 

Environmental Law
shall mean any applicable Federal, state, foreign or local statute, law, rule,
regulation, ordinance, code, guide, policy and rule of common law now or
hereafter in effect and in each case as amended, and any judicial or
administrative interpretation thereof, including any judicial or administrative
order, consent decree or judgment, relating to

 

19

 

the environment, health, safety
or Hazardous Materials, including, without limitation, CERCLA; RCRA; the
Federal Water Pollution Control Act, 33 U.S.C. § 1251 et  seq.;
the Toxic Substances Control Act, 15 U.S.C. § 2601 et  seq.;
the Clean Air Act, 42 U.S.C. § 7401 et  seq.; the 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
Occupational Safety and Health Act, 29 U.S.C. § 651 et  seq.; and
any applicable state and local or foreign counterparts or equivalents.

 

Equity Investors
shall mean Cypress Group, K-S Investor Group and Odyssey Investor Group.

 

Equity Issuance
shall mean, with respect to any Person, any issuance of equity (common,
preferred or otherwise) by such Person, the receipt of any capital contribution
by such Person, or any issuance of options, warrants or rights to purchase
equity of such Person; provided that the receipt of a capital contribution by
any Subsidiary of Holdings from Holdings or another Subsidiary thereof (and the
related issuance of equity by the respective Subsidiary receiving such capital
contribution) shall not constitute an Equity Issuance for purposes of this
Credit Agreement.

 

ERISA shall mean 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 date of this Credit Agreement and any subsequent provisions of
ERISA, amendatory thereof, supplemental thereto or substituted therefor.

 

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

 

Eurodollar Lending Office
shall mean, with respect to any Lender, the office of such Lender specified as
its “Eurodollar Lending Office” opposite its name on Schedule I, as such annex
may be amended from time to time (or, if no such office is specified, its
Domestic Lending Office), or such other office or Affiliate of such Lender as
such Lender may from time to time specify to the Borrower and the
Administrative Agent.

 

Eurodollar Rate shall
mean, for any Interest Period, with respect to Eurodollar Rate Loans, the rate
of interest per annum determined pursuant to the following formula:

 

	
  Eurodollar Rate =

  	
  Offshore Base Rate

  
	
   

  	
  1.00 - Eurodollar Reserve Percentage

  

Where,

 

Eurodollar Reserve Percentage
means, for any day during any Interest Period, the reserve percentage
(expressed as a decimal, rounded upward to the next 1/8th of 1.00%) in effect
on such day applicable to member banks under regulations issued from time to
time by the Federal Reserve Board for determining the maximum reserve
requirement (including any emergency, supplemental, or other marginal

 

20

 

reserve requirement) with respect to Eurocurrency funding (currently
referred to as “Eurocurrency liabilities”). 
The Eurodollar Rate for each outstanding Eurodollar Rate Loan shall be
adjusted automatically as of the effective date of any change in the Eurodollar
Reserve Percentage.

 

Offshore Base Rate
means the rate per annum appearing on Telerate Page 3750 (or any successor
page) as the London interbank offered rate for deposits in Dollars at
approximately 11:00 a.m. (London time) two Business Days prior to the
first day of such Interest Period for a term comparable to such Interest Period.  If for any reason such rate is not available,
the Offshore Base Rate shall be, for any Interest Period, the rate per annum
appearing on Reuters Screen LIBO Page as the London interbank offered rate for
deposits in Dollars at approximately 11:00 a.m. (London time) two Business
Days prior to the first day of such Interest Period for a term comparable to
such Interest Period; provided, however, if more than one rate is
specified on Reuters Screen LIBO Page, the applicable rate shall be the
arithmetic mean of all such rates.  If
for any reason none of the foregoing rates is available, the Offshore Base Rate
shall be, for any Interest Period, the rate per annum determined by the
Administrative Agent as the rate of interest at which Dollar deposits in the approximate
amount of the Eurodollar Rate Loan comprising part of such Borrowing would be
offered by BofA’s London Branch to major banks in the offshore Dollar market at
their request at or about 11:00 a.m. (London time) two Business Days prior
to the first day of such Interest Period for a term comparable to such Interest
Period.

 

Eurodollar Rate Loan
shall mean a Loan bearing interest as provided in Section 4.1.

 

Event of Default
shall have the meaning given to such term in Section 9.1.

 

Excess Availability
shall mean, at any time, the amount (if any) by which (i) the least of
(x) the Net Total Revolving Credit Commitments at such time, (y) the
Borrowing Base at such time and (z) the maximum amount of Revolving
Outstandings that are permitted to be outstanding at such time pursuant to the
Senior Secured Notes Indenture and the Senior Unsecured Notes Indenture exceeds
(ii) the Revolving Outstandings at such time.

 

Existing Credit Agreement
shall have the meaning given to such term in the recitals of this Credit
Agreement.

 

Existing Indebtedness
shall mean Indebtedness of Holdings, the Borrower and their respective
Subsidiaries outstanding prior to, and to remain outstanding on and after, the
Effective Date, and set forth on Schedule III, without giving effect to
extensions or renewals thereto, except as expressly provided therein.

 

Existing Indebtedness Agreements
shall have the meaning given to such term in Section 5.1(m).

 

Existing Letters of Credit
shall have the meaning given to such term in Section 3.1.

 

21

 

Existing Liens shall
have the meaning given to such term in Section 8.2(d).

 

Existing Non-Canadian Foreign Subsidiary
shall mean each of Williams Scotsman Mexico, S. de R.L. de C.V., Williams
Scotsman Europe, S.L. and WS Servicios de Mexico S. de R.L. de C.V.

 

Expenses shall mean
all present and future expenses paid or incurred by or on behalf of the
Administrative Agent or any of its Affiliates or the Collateral Agent or any of
its Affiliates in connection with this Credit Agreement, any other Credit
Document or otherwise in its or their capacity as the Administrative Agent
under this Credit Agreement or as the Collateral Agent under any of the
Collateral Documents or as Issuing Lender or as Co-Lead Arranger (including
without limitation, all costs related to the syndication efforts with respect
to this Credit Agreement), whether incurred heretofore or hereafter, which
expenses shall include, without being limited to, the cost of record searches,
all Attorney Costs, all costs and expenses incurred by the Administrative Agent
(and the Collateral Agent) in opening bank accounts, depositing checks,
electronically or otherwise receiving and transferring funds, and any charges
imposed on the Administrative Agent due to insufficient funds of deposited
checks and the standard fee of the Administrative Agent (and the Collateral
Agent) relating thereto, costs of inspections and verifications of the
Collateral and other due diligence, including travel, lodging, and meals for
field examinations and inspections of the Collateral and the Credit Parties’
operations by the Administrative Agent or the Collateral Agent, plus such
Agent’s then customary charge for field examinations and audits and the
preparation of reports thereof (such charge for each Agent is currently $850
per day (or portion thereof) for each Person retained or employed by such Agent
with respect to each field examination or audit) performed or prepared at any
time, reasonable fees and expenses of accountants, appraisers or other
consultants, experts or advisors employed or retained by the Administrative
Agent (and the Collateral Agent), out of pocket syndication fees and expenses,
fees and taxes relative to the filing of financing statements, costs of preparing
and recording any other Collateral Documents, all expenses, costs and fees set
forth in Article 4 of this Credit Agreement, all other fees and expenses
required to be paid pursuant to the Fee Letter, all costs to preserve and
protect Collateral and to enforce rights and remedies under the Credit
Documents (including realizing on Collateral and collecting Obligations) and
all fees and expenses incurred in connection with releasing Collateral and the
amendment or termination of any of the Credit Documents.

 

Facing Fee shall
have the meaning given to such term in Section 4.7(a).

 

Federal Funds Rate
shall mean, for any day, the rate per annum (rounded upwards, if necessary, to
the nearest 1/8th of 1.00%) equal to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers on such day, as published by the Federal
Reserve Bank of New York on the Business Day next succeeding such day; provided
that (a) if such day is not a Business Day, the Federal Funds Rate for
such day shall be such rate on such transactions on the next preceding Business
Day as so published on the next succeeding Business Day and (b) if no such
rate is so published on such next succeeding Business Day, the Federal Funds
Rate for such day shall be the average rate charged to BofA on such day on such
transactions as determined by BofA.

 

22

 

Federal Reserve Board
shall mean the Board of Governors of the Federal Reserve System or any
successor thereto.

 

Fee Letter shall
mean that certain letter dated May 16, 2005 among BofA, DBTCA, the Co-Lead
Arrangers and the Borrower, providing for the payment of certain fees in
connection with this Credit Agreement.

 

Fees shall mean,
collectively, the Unused Line Fee, the Letter of Credit Fees, the Issuing
Lender Fees and the other fees provided for in the Fee Letter.

 

Financial Statements
shall mean the consolidated balance sheets and consolidated statements of
operations, cash flows and changes in shareholder’s equity of each of Holdings
and its Subsidiaries and/or the Borrower and its Subsidiaries, as the case may
be, for the respective period specified prepared in accordance with GAAP; provided
that for purposes of Section 7.1(a), the Financial Statements of Holdings shall
include (i) consolidating schedules for Holdings that separately identify
the Borrower and its Subsidiaries and (ii) a report from the Auditors that
indicates, among other things, the auditing procedures to which such
consolidating schedules have been subject.

 

Foreign Cash Equivalents
shall mean (i) certificates of deposit or bankers acceptances of, and bank
deposits with, any bank organized under the laws of Canada or any country that
is a member of the European Economic Community, whose short-term commercial
paper rating from S&P is at least A-1 or the equivalent thereof or from
Moody’s is at least P-1 or the equivalent thereof, in each case with maturities
of not more than six months from the date of acquisition, (ii) commercial
paper maturing not more than one year from the date of creation thereof and, at
the time of acquisition, having the highest rating obtainable by either S&P
or Moody’s and (iii) shares of any money market mutual fund that
(a) has its assets invested continuously in the types of investments
referred to in clauses (i) and (ii) above, (b) has net assets not
less than $500,000,000 and (c) has the highest rating obtainable by either
S&P or Moody’s.

 

Foreign Pension Plan
shall mean any plan, fund (including, without limitation, any superannuation
fund) or other similar program established or maintained outside the United
States by the Borrower or any one or more of its Subsidiaries primarily for the
benefit of employees of the Borrower or any such Subsidiaries residing outside
the United States, which plan, fund or other similar program provides, or
results in, retirement income, a deferral of income in contemplation of
retirement or payments to be made upon termination of employment, and which
plan is not subject to ERISA or the Code.

 

Foreign Subsidiary
of any Person shall mean any Subsidiary of such Person which is not a Domestic
Subsidiary.  Unless otherwise qualified,
all references to a “Foreign Subsidiary” or to “Foreign Subsidiaries” in this
Credit Agreement shall refer to a Foreign Subsidiary or Foreign Subsidiaries of
Holdings.

 

Funding Affiliate
shall have the meaning given to such term in Section 4.11.

 

GAAP shall mean,
subject to the limitations on the applications thereof set forth in
Section 1.2, generally accepted accounting principles set forth from time
to time in the

 

23

 

opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board and the Public Company Accounting Oversight Board (or agencies
with similar functions of comparable stature and authority within the United
States accounting profession) that are applicable to the circumstances as of
the date of determination.

 

Governing Documents
shall mean, as to any Person, the certificate or articles of incorporation, the
certificate of formation, the by-laws, the operating agreement, the limited
liability company or partnership agreement or other organizational or governing
documents of such Person.

 

Government Lease
shall mean a lease of Rental Equipment by (i) the Borrower or any Domestic
Subsidiary of the Borrower to the United States of America or any department,
agency or instrumentality thereof or (ii) any Canadian Subsidiary of the
Borrower to Canada or any department, agency or instrumentality thereof.

 

Governmental Authority
shall mean any nation or government, any state or other political subdivision
thereof, any central bank (or similar monetary or regulatory authority)
thereof, any entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government, and any department,
agency, board, commission, tribunal, committee, or instrumentality of any of
the foregoing.

 

Gross-Up Payments
shall have the meaning given to such term in Section 2.9(b).

 

Guaranteed Creditors
shall mean and include each Agent, each Issuing Lender, each Lender and each
Person (other than any Credit Party) party to a Hedge Agreement to the extent
such Person constitutes a Secured Creditor under the Collateral Documents.

 

Guaranteed Obligations
shall mean (i) the full and prompt payment when due (whether at the stated
maturity, by acceleration or otherwise) of (a) the principal of and
interest on the Notes issued by, and the Loans made to, the Borrower under this
Credit Agreement, (b) all reimbursement obligations and unpaid drawings
with respect to Letters of Credit issued under this Credit Agreement and
(c) all other obligations (including obligations which, but for any
automatic stay under Section 362(a) of the Bankruptcy Code, would become
due) and liabilities owing by the Borrower to the Agents, each Issuing Lender
and the Lenders under the Credit Agreement and the other Credit Documents
(including, without limitation, indemnities, Fees and interest thereon),
whether now existing or hereafter incurred under, arising out of or in
connection with the Credit Agreement or any other Credit Document, and the due
performance and compliance with the terms of the Credit Documents by the
Borrower and (ii) the full and prompt payment when due (whether at the
stated maturity, by acceleration or otherwise) of all obligations (including
obligations which, but for any automatic stay under Section 362(a) of the
Bankruptcy Code, would become due) and liabilities owing by the Borrower under
any Hedge Agreement entered into by the Borrower with any Lender or Affiliate
thereof or a syndicate of financial institutions organized by BofA (even if
BofA or any such Lender subsequently ceases to be a Lender under this Credit
Agreement for any reason) and any institution that participates, and in each
case their subsequent assigns, in such Hedge Agreement.

 

24

 

Guarantors shall
mean Holdings and each Subsidiary Guarantor.

 

Guaranty shall mean
the Holdings Secured Guaranty and each Subsidiaries Guaranty.

 

Hazardous Materials
shall mean (a) any petroleum or petroleum products, radioactive materials,
asbestos in any form that is or could become friable, urea formaldehyde foam
insulation, transformers or other equipment that contained or contains
dielectric fluid containing levels of polychlorinated biphenyls, and radon gas;
(b) any chemicals, materials or substances defined as or included in the
definition of “hazardous substances”, “hazardous waste”, “hazardous materials”,
“extremely hazardous substances”, “restricted hazardous waste”, “toxic substances”,
“pollutants”, “toxic pollutants”, “contaminants”, or “pollutants”, or words of
similar import, under any applicable Environmental Law; and (c) any other
chemical, material or substance, exposure to which is prohibited, limited or
regulated by any governmental authority.

 

Hedge Agreement
shall mean any and all transactions, agreements, or documents now existing or
hereafter entered into, which provide for an interest rate, credit, commodity,
or equity swap, cap, floor, collar, forward foreign exchange transaction,
currency swap, cross currency rate swap, currency option, or any combination
of, or option with respect to, these or similar transactions, for the purpose
of hedging a Person’s exposure to fluctuations in interest or exchange rates,
loan, credit exchange, security, or currency valuations, or commodity prices,
including Interest Rate Agreements.

 

Highest Lawful Rate
shall mean, at any given time during which any Obligations shall be outstanding
hereunder, the maximum nonusurious interest rate, if any, that at any time or
from time to time may be contracted for, taken, reserved, charged or received
on the Obligations owing under this Credit Agreement and any other Credit
Document, under the laws of the State of New York (or the law of any other
jurisdiction whose laws may be mandatorily applicable notwithstanding other
provisions of this Credit Agreement and the other Credit Documents), or under
applicable federal laws which may presently or hereafter be in effect and which
allow a higher maximum nonusurious interest rate than under New York (or
such other jurisdiction’s) law, in any case after taking into account, to the
extent permitted by applicable law, any and all relevant payments or charges
under this Credit Agreement and any other Credit Documents executed in
connection herewith, and any available exemptions, exceptions and exclusions.

 

Holding Company Requirements
shall mean the following:

 

(1)  Holdings is a holding company that conducts no material
business or activities other than:

 

(i)  the holding of the capital stock of
the Borrower,

 

(ii)  the holding (directly or through
Unrestricted Subsidiaries), acquisition, sale or other disposition of equity
interests in Unrestricted Subsidiaries and other foreign investments in
Persons, in each instance, (x) not constituting a Canadian Subsidiary or a
Person organized under the laws of Canada or any province thereof and
(y) not, directly or indirectly, having any assets or business in Canada
(other than de minimus assets and business),

 

25

 

(iii)  the issuance of equity and
unsecured Indebtedness not guaranteed by the Borrower or any of its
Subsidiaries,

 

(iv)  the guaranty of Indebtedness of
(x) the Borrower (such guaranty to be unsecured except that the Obligations
shall be guaranteed by Holdings on a secured basis as set forth herein and in
the other Credit Documents), (y) Foreign Subsidiaries of Holdings not
constituting a Canadian Subsidiary (such guaranty to be unsecured or secured
only by the capital stock of the Foreign Subsidiary whose Indebtedness is
guaranteed or the first tier Foreign Subsidiary of Holdings that owns, directly
or indirectly, the Foreign Subsidiary whose Indebtedness is guaranteed) and (z)
Persons not constituting Subsidiaries of Holdings in which Holdings acquired an
equity interest pursuant to a Permitted Acquisition (such guaranty to be
unsecured or secured only by the equity interest of Holdings in such Person),

 

(v)  loans to (x) Subsidiaries of
Holdings and (y) Persons referred to in clause (iv)(z) above,

 

(vi)  entering into Hedge Agreements so
long as entered into for bona fide hedging activities and not for speculative
purposes,

 

(vii)  engaging in activities related to
its status as a U.S. public company and

 

(viii)  engaging in businesses or
activities that are reasonably incidental, ancillary or related to the
businesses and activities described in clauses (i) through (vii) above);

 

(2)  Holdings owns no material assets other than:

 

(i) 
the assets described in subclauses (i), (ii) and (v) of clause (1) above
and proceeds from the sale or other disposition of assets described in
subclause (ii) of clause (1) above,

 

(ii) 
proceeds of any issuance by Holdings of equity or unsecured Indebtedness
not guaranteed by the Borrower or any of its Subsidiaries, and

 

(iii) 
any cash and cash equivalents distributed or contributed to Holdings or
cash and cash equivalents from any other source (so long as, in each instance,
the distribution, contribution or other payment of any such cash and cash
equivalents to Holdings is not prohibited by the terms of any Credit Document);

 

(3)  no agreement to which the Borrower or any of the Borrower’s
Subsidiaries is a party imposes (x) any restriction on incurring debt or Liens
or paying dividends or any other material negative covenant on Holdings or any
Unrestricted Subsidiary or (y) any mandatory repayments, redemptions or similar
requirements (or any obligation to offer to effect same) based upon any event,
act or condition relating to Holdings (other than a change of control) or any
Unrestricted Subsidiary (it being agreed that (i) a requirement that Holdings
provide SEC and similar reports, (ii) a requirement that Holdings comply with
its guaranty obligations, (iii) a provision that it is an event of default if
Holdings’ guaranty ceases to be enforceable or if Holdings denies its liability
under its guaranty, or (iv) a prohibition on Holdings consolidating or

 

26

 

merging with or into, or
conveying, transferring or leasing all or substantially all of its assets to
any person unless, after giving effect to such transaction, no default or event
of default has occurred, shall not be a violation of this clause (3)); and

 

(4)  no Subsidiary or other foreign investment of Holdings (other
than the Borrower and its Subsidiaries), directly or indirectly, conducts any
business in the U.S. or Canada or has any assets in the U.S. or Canada (other
than de minimus business and assets).

 

Holdings shall have
the meaning given to such term in the preamble to this Credit Agreement.

 

Holdings Common Stock
shall mean the common stock of Holdings.

 

Holdings IPO shall
mean the initial public offering by Holdings of its common stock pursuant to,
and as contemplated by, the Form S-1 filed by Holdings with the SEC on
April 29, 2005.

 

Holdings Secured Guaranty
shall mean the Guaranty of Holdings pursuant to Article 12.

 

Incremental Commitment Agreement
shall mean an Incremental Commitment Agreement substantially in the form of Exhibit
R (appropriately completed and with such modifications as may be acceptable to
the Administrative Agent).

 

Incremental Revolving Credit Commitment
shall mean, for each Incremental Revolving Credit Lender, any commitment by
such Incremental Revolving Credit Lender to make Revolving Loans pursuant to
Section 2.1(d) as agreed to by such Incremental Revolving Credit Lender in
the respective Incremental Commitment Agreement delivered pursuant to
Section 2.1(e); it being understood, however, that on each date
upon which an Incremental Revolving Credit Commitment of any Incremental
Revolving Credit Lender becomes effective, such Incremental Revolving Credit
Commitment of such Incremental Revolving Credit Lender shall be added to (and
thereafter become a part of) the Revolving Credit Commitment of such
Incremental Revolving Credit Lender for all purposes of this Credit Agreement
as contemplated by Section 2.1(d).

 

Incremental Revolving Credit Lender
shall have the meaning provided in Section 2.1(e).

 

Incremental Revolving Loan
shall have the meaning provided in Section 2.1(d)(vii).

 

Indebtedness of any
Person shall mean without duplication (i) all indebtedness of such Person
for borrowed money, (ii) the deferred purchase price of assets or services
which in accordance with GAAP would be shown on the liability side of the
balance sheet of such Person, (iii) the face amount of all letters of
credit issued for the account of such Person and, without duplication, all
drafts drawn thereunder, (iv) all indebtedness of a second Person secured
by any Lien (in aggregate principal amount up to the amount of such Liens) on
any property owned by such first Person, whether or not such indebtedness has
been assumed, (v) all Capitalized Lease

 

27

 

Obligations of such Person,
(vi) 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, (vii) all net obligations of such
Person under Hedge Agreements, (viii) all reimbursement or other monetary
obligations with respect to surety, performance and bid bonds, and
(ix) all Contingent Obligations of such Person; provided that
Indebtedness shall not include trade payables and accrued expenses, in each
case arising in the ordinary course of business.

 

Indemnitee shall
have the meaning provided in Section 11.8.

 

Initial Borrowing Date
shall mean the date that any loans under the Existing Credit Agreement are
assigned to BofA or DBTCA under the Bank Assignment Agreement.

 

Intercreditor Agreement
shall mean the Intercreditor Agreement, dated as of August 18, 2003, as same
may be amended, modified or supplemented from time to time in accordance with
the terms thereof.

 

Interest Period
shall mean, with respect to any Eurodollar Rate Loan, the period commencing on
the date such Loan is made or on the date on which such Loan is Continued as or
Converted into a Eurodollar Rate Loan, and ending on the date one, two, three
or six months, or to the extent approved by all the Lenders, nine or twelve
months, thereafter as selected by the Borrower in a Notice of Borrowing or
Notice of Continuation or Notice of Conversion, provided that:

 

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

 

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

 

(c)           no
Interest Period shall extend beyond the Maturity Date.

 

Interest Rate Agreement
shall mean any interest rate protection agreement, interest rate future,
interest rate option, interest rate swap, interest rate cap or other interest
rate hedge or arrangement under which the Borrower or any of its Subsidiaries
is a party or beneficiary.

 

Inventory shall mean
all of the Borrower’s and its Subsidiaries’ now owned and existing and
hereafter arising or acquired inventory, wherever located and whether in the
possession of the Borrower or any other Person, including, without limitation,
(a) all raw materials, work in process, parts, components, assemblies,
supplies and materials used or consumed in the Borrower’s and its Subsidiaries’
business and (b) all goods, wares and merchandise, finished or unfinished,
held for sale or lease or furnished or to be furnished under contracts of
service, excluding the Rental Equipment.

 

28

 

Investment shall
have the meaning given to such term in Section 8.5.

 

Issuing Lender shall
mean BofA or any Lender approved by the Administrative Agent which has agreed
to issue Letters of Credit under this Credit Agreement.

 

Issuing Lender Fees
shall have the meaning given to such term in Section 4.7.

 

K-S Investor Group
shall mean Keystone, Inc., Oak Hill Strategic Partners, L.P. and Scotsman
Partners, L.P. and any new partnership or entity created to co-invest with
Keystone, Inc., Oak Hill Strategic Partners, L.P., and Scotsman Partners, L.P.,
provided that Persons which had a majority of the equity interests in or
otherwise controlled Keystone, Inc., Oak Hill Strategic Partners, L.P. and/or
Scotsman Partners, L.P. on the Effective Date or any of their Permitted
Transferees either (x) hold a majority of the equity interests of such new
partnership or entity or (y) control such new partnership or entity.

 

Latest Projections
shall mean:  (a) on the Effective
Date and thereafter until the Administrative Agent receives new projections
pursuant to Section 7.1(d), the Projections; and (b) thereafter, the
projections most recently received by the Administrative Agent pursuant to
Section 7.1(d).

 

Leases shall mean,
collectively, the written agreements between the Borrower or any Subsidiary and
an account debtor (other than Holdings, the Borrower, or their respective
Subsidiaries) in the ordinary course of business of the Borrower or such
Subsidiary for the lease or rental of Rental Equipment by the Borrower or such
Subsidiary to such account debtor in which the account debtor agrees to pay to
the Borrower, such Subsidiary or their respective assigns Rentals.

 

Lender shall mean
each financial institution listed on Schedule I, as well as any Person
which becomes a “Lender” pursuant to Section 11.6.

 

Letter of Credit Fees
shall have the meaning given to such term in 4.7.

 

Letter of Credit Obligations
shall mean, at any time, the sum of (i) the Undrawn Letter of Credit
Outstandings at such time, plus (ii) the aggregate amount of all
drawings (taking the Dollar Equivalent of any amount drawn in an Alternate
Currency) under Letters of Credit which have not been reimbursed by the
Borrower (including through the incurrence of Revolving Loans).

 

Letter of Credit Request
shall have the meaning given to such term in Section 3.4.

 

Letters of Credit
shall mean all letters of credit (whether trade or stand-by and whether for the
purchase of Inventory, Rental Equipment, equipment or otherwise) issued for the
account of the Borrower pursuant to Article 3 of this Credit Agreement and
all amendments, renewals, extensions or replacements thereof.

 

Lien(s) shall mean
any lien, charge, pledge, security interest, hypothecation, deed of trust,
mortgage, other encumbrance or other arrangement having the practical effect of
the foregoing or other preferential arrangement of any other kind and shall
include the interest of a

 

29

 

vendor or lessor under any
conditional sale agreement, capital lease or other title retention agreement.

 

Loan shall mean each
Term Loan and each Revolving Loan.

 

Location of any
Person shall mean such Person’s “location” as determined pursuant to
Section 9-307 of the UCC.

 

Majority Lenders of
any Tranche shall mean those Non-Defaulting Lenders which would constitute the
Required Lenders under, and as defined in, this Credit Agreement if all
outstanding obligations of any other Tranches under this Credit Agreement were
repaid in full and all Commitments, if any, with respect thereto were
terminated.

 

Management Agreements
shall have the meaning given to such term in Section 5.1(m).

 

Margin Stock shall
have the meaning provided in Regulation U.

 

Master Lease Agreements
shall have the meaning provided in Section 5.1(m).

 

Material Adverse Effect
shall mean a material adverse effect on (i) the business, operations,
property, assets, liabilities or condition (financial or otherwise) of the
Borrower or of Holdings and its Subsidiaries (other than the Unrestricted
Subsidiaries) taken as a whole or of the Borrower and its Subsidiaries taken as
a whole, (ii) the value of Collateral or the amount which the
Administrative Agent, the Collateral Agent and the Lenders would be likely to
receive (after giving consideration to delays in payment and costs of
enforcement) in the liquidation of such Collateral, (iii) the rights and
remedies of any Agent, the Issuing Lender or the Lenders under any Credit
Document or (iv) on the ability of any Credit Party to perform its obligations
under the Credit Documents.

 

Material Contract
shall mean any contract or other arrangement (other than the Credit Documents),
whether written or oral, to which Holdings, the Borrower or any of their
respective Subsidiaries (other than the Unrestricted Subsidiaries) is a party
as to which the breach, nonperformance, cancellation or failure to renew by any
party thereto could reasonably be expected to have a Material Adverse Effect.

 

Maturity Date shall
mean the fifth anniversary of the Effective Date.

 

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

 

Mortgage Policies
shall mean each of the title insurance policies delivered with respect to one
or more of the Mortgages and Mortgaged Property.

 

Mortgaged Property
shall mean each property at any time subject to a Mortgage, with the Mortgaged
Properties as of the Initial Borrowing Date designated as such on Part B of
Schedule IV.

 

30

 

Mortgages shall mean
a mortgage, leasehold mortgage, deed of trust, leasehold deed of trust, deed to
secure debt, leasehold deed to secure debt or similar security interest granted
as security for any of the Obligations (and in any event shall include each
Mortgage, as defined in the Existing Credit Agreement, assigned to the Collateral
Agent pursuant to the Bank Assignment Agreement) substantially in the form of
Exhibit L.

 

Multiemployer Plan
shall mean a “multiemployer plan” as defined in Section 4001(a)(3) of
ERISA that is or was at any time during the current calendar year or the
immediately preceding six calendar years contributed to by a Credit Party or
any ERISA Affiliate.

 

Net Book Value shall
mean, with respect to Eligible Rental Equipment, the net book value of such
Eligible Rental Equipment determined (i) in accordance with GAAP and
(ii) consistently with the applicable Credit Party’s accounting practices.

 

Net Debt Proceeds
shall mean, with respect to any incurrence of Indebtedness by any Person, the
cash proceeds (net of underwriting discounts and commissions, reasonable legal
fees, investment banking and consulting fees and other reasonable costs and
expenses associated therewith) received by such Person from the respective
incurrence of such Indebtedness.

 

Net Equity Proceeds
shall mean, with respect to each Equity Issuance of or by any Person, the cash
proceeds (net of under­writing discounts and commissions, reasonable legal
fees, investment banking and consulting fees and other reasonable costs and
expenses associated therewith) received by such Person from the respective
Equity Issuance.

 

Net Sale Proceeds
shall mean, with respect to any Asset Sale, the gross cash proceeds (including
any cash received by way of deferred payment pursuant to a promissory note,
receivable or otherwise, but only as and when received) received by Holdings,
the Borrower or any of their respective Subsidiaries from such Asset Sale, net
of (i) transaction costs (including, without limitation, (w) any
federal, state and local income or other taxes paid or estimated to be payable as
a result of such Asset Sale, (x) any underwriting, brokerage or other
customary selling commissions, (y) reasonable legal fees, and
(z) advisory, consulting, accountants’, investment banking and other fees
and expenses, including title and recording expenses and reasonable expenses
incurred for preparing such assets for sale, associated therewith),
(ii) payments of unassumed liabilities relating to the assets sold at the
time of, or within 90 days after, the date of such sale, (iii) the amount
of such gross cash proceeds required to be used to repay any Indebtedness
(other than Indebtedness to the Lenders pursuant to this Credit Agreement)
which is secured by the respective assets which were sold and (iv) in the
case of any Asset Sale consummated by a non-Wholly-Owned Subsidiary of the
Borrower, the amount of proceeds paid to the minority shareholder or
shareholders of such non-Wholly-Owned Subsidiary so long as such amount paid to
any such minority shareholder does not exceed such respective minority
shareholder’s proportionate share of the aggregate proceeds from such Asset
Sale based on its percentage equity interests held in such non-Wholly-Owned
Subsidiary.

 

Net Total Revolving Credit Commitments
shall have the meaning given to such term in Section 2.2(a).

 

31

 

Non-Canadian Foreign Subsidiaries
shall mean each Subsidiary of the Borrower that is not a Domestic Subsidiary or
a Canadian Subsidiary.

 

Non-Certificated Units
shall mean all Units which are not Certificated Units.

 

Non-Defaulting Lender
shall mean and include each Lender other than a Defaulting Lender.

 

Non-Qualified Units
shall at any time mean any Unit which is not a Qualified Certificated Unit at
such time.

 

Notes shall mean,
collectively, the Revolving Notes and Term Notes, and Note means any
Revolving Note or any Term Note.

 

Notice of Borrowing
shall have the meaning given to such term in Section 2.3(a)(i) and shall
include any deemed Notice of Borrowing pursuant to Section 3.5.

 

Notice of Continuation
shall have the meaning given to such term in Section 4.3(a).

 

Notice of Conversion
shall have the meaning given to such term in Section 4.3(b).

 

Obligations shall
mean (a) all present and future loans, advances, liabilities, obligations,
covenants, duties, and debts owing by the Credit Parties, or any of them, to
the Administrative Agent, the Syndication Agent, the Collateral Agent, the
Co-Lead Arrangers, BofA, each Issuing Lender, each Indemnitee, and the Lenders,
or any of them, arising under or pursuant to this Credit Agreement or any of
the other Credit Documents, whether or not evidenced by any note, or other
instrument or document, whether arising from an extension of credit, opening of
a letter of credit, loan, guaranty, indemnification, or otherwise, whether
direct or indirect, absolute or contingent, due or to become due, primary or
secondary, as principal or guarantor, and including all principal, interest,
charges, Expenses, fees, Attorney Costs, filing fees, and any other sums
chargeable to any Credit Party hereunder or under any of the other Credit
Documents, including, without limitation, post-petition interest whether or not
such interest is an allowable claim in a bankruptcy, (b) all debts,
liabilities, and obligations owing by the Credit Parties, or any of them, now
or hereafter arising from or in connection with the Letters of Credit,
including, without limitation, the Existing Letters of Credit, (c) all
debts, liabilities, and obligations owing by the Credit Parties, or any of
them, now or hereafter arising from or in connection with Bank Products and (d)
all debts, liabilities, and obligations now or hereafter owing from the
Borrower under or in connection with all loans made under the Existing Credit
Agreement assigned to BofA and DBTCA under the Bank Assignment Agreement.

 

Odyssey Investor Group
shall mean Odyssey Investment Partners Fund, L.P. and Odyssey Coinvestors, LLC
or any new partnership created to co-invest with Odyssey Investment Partners
Fund, L.P. and Odyssey Coinvestors, LLC, provided that Persons which had
a majority of the equity interests in or otherwise controlled Odyssey
Investment Partners Fund, L.P. and/or Odyssey Coinvestors LLC on the Effective
Date or any of their Permitted Transferees either (x) hold a majority of
the equity interests of such new partnership or entity or (y) control such
new partnership or entity.

 

32

 

Operating Lease
shall mean, as applied to any Person, any lease of any property (whether real,
personal or mixed) by that Person other than a Capital Lease.

 

Operating Lease Payment
shall mean any payment made by Holdings, the Borrower or any of their
respective Subsidiaries under an Operating Lease.

 

Orderly Liquidation Value
shall mean, with respect to the Eligible Rental Equipment owned by the
Qualified Credit Parties, the aggregate orderly liquidation value thereof as
determined by an appraisal (or update thereof) of the Qualified Credit Parties’
Rental Equipment delivered to the Administrative Agent pursuant to this Credit
Agreement.

 

Other Liabilities at
any time shall mean the accounts payable and accrued expenses of Holdings and
its Subsidiaries on a consolidated basis at such time set forth in Holdings’
consolidated balance sheet, but excluding accrued interest to the extent
otherwise reflected therein.

 

Outstandings shall
mean, at any time, the sum of (i) the principal amount of all Loans
outstanding at such time plus (ii) the Letter of Credit Obligations
at such time.

 

Payment Office shall
mean the office of the Administrative Agent located at 335 Madison Avenue, New
York, New York 10017, or any other office within the continental United States
designated by the Administrative Agent to the Borrower from time to time as the
office for payment of all amounts required to be paid by the Borrower under
this Credit Agreement.

 

PATRIOT Act shall
mean the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001 (Pub. L. No. 107-56,
115 Stat. 272 (Oct. 26, 2001)).

 

PBGC shall mean the
Pension Benefit Guaranty Corporation established pursuant to Section 4002
of ERISA, or any successor thereto.

 

Permitted Acquisition
shall mean:

 

(1)           the acquisition by
Holdings directly or through any Unrestricted Subsidiary of (i) the assets
constituting a business, division or product line of any Person not already a
Subsidiary of Holdings or (ii) capital stock or other equity interest of any
Person, provided that (A) all requirements of Section 7.17
applicable to Permitted Acquisitions (as if Section 1.5 were not in
effect) are satisfied and (B) any such acquisition by Holdings or any
Unrestricted Subsidiary shall be only of assets located outside of the United
States and Canada or of equity interests of any Person that (i) is not
incorporated, organized or formed under the laws of (x) the U.S., any
State thereof, the United States Virgin Islands or Puerto Rico or
(y) Canada or any province thereof and (ii) conducts no business,
directly or indirectly, in the U.S. or Canada (other than de minimus business);
and

 

(2)           the acquisition by
the Borrower directly or through any of the Borrower’s Wholly-Owned
Subsidiaries of (i) the assets constituting a business, division or
product line of any Person not already a Subsidiary of the Borrower (excluding
acquisitions by the Borrower, its Domestic Subsidiaries and/or its Canadian
Subsidiaries consisting solely of property and

 

33

 

equipment or Rental Equipment
(and not of capital stock or other equity interests, or any liabilities, of any
other Person) which constitute Capital Expenditures permitted pursuant to the
relevant provisions of Section 8.4) or (ii) 100% of the capital stock
or other equity interest of any Person, which Person shall, as a result of such
acquisition, become a Wholly-Owned Subsidiary of the Borrower (except that less
than 100% of the capital stock or other equity interest of any Person may be
acquired so long as such Person shall, as a result of such acquisition, become
a Non-Canadian Foreign Subsidiary), provided that (A) the
consideration paid by the Borrower or such Wholly-Owned Subsidiary of the
Borrower, as the case may be, consists solely of cash (including proceeds of
Revolving Loans to the extent permitted by Section 7.17) and, to the
extent permitted under Section 8.3(m), the issuance of unsecured
Indebtedness in an aggregate principal amount not to exceed 10% of the purchase
price of such acquisition, (B) such Person shall own no capital stock of
any other Person unless such Person owns 100% of the capital stock of such
other Person (except that less than 100% of the capital stock of such other
Person may be owned by such Person so long as such other Person shall, as a
result of such acquisition, become a Non-Canadian Foreign Subsidiary),
(C) all requirements of Sections 7.16 and 7.17 applicable to
Permitted Acquisitions are satisfied and (D) no such acquisition shall
result in a violation of Section 8.8.

 

Permitted Discretion
shall mean the Administrative Agent’s judgment exercised in good faith based
upon its consideration of any factor which the Administrative Agent believes in
good faith:  (i) will or could
reasonably be expected to adversely affect the value of any of the Collateral,
the enforceability or priority of the Administrative Agent’s or Collateral
Agent’s Liens thereon or the amount which the Agents, the Issuing Lender and
the Lenders would be likely to receive (after giving consideration to delays in
payment and costs of enforcement) in the liquidation of such Collateral;
(ii) suggests that any collateral report or financial information
delivered to the Administrative Agent by any Person on behalf of the Borrower
or any other Credit Party is incomplete, inaccurate or misleading in any material
respect; (iii) materially increases the likelihood of a bankruptcy,
reorganization or other insolvency proceeding involving the Borrower or any of
its Subsidiaries or any of the Collateral; (iv) creates or reasonably
could be expected to create a Default or an Event of Default or (v) has
resulted in a material amount of Eligible Rental Equipment securing any
obligations under or with respect to Surety Bonds.  In exercising such judgment, the
Administrative Agent may consider such factors already included in or tested by
the definition of Eligible Accounts Receivable or Eligible Rental Equipment as
well as any of the following: 
(i) the financial and business climate of the Borrower’s or any
Subsidiary’s industry, (ii) changes in collection history and dilution
with respect to the Accounts, (iii) changes in any concentration of risk
with respect to Accounts and Rental Equipment, (iv) changes in operating
and turnover statistics with respect to Rental Equipment and/or Accounts,
including actual versus historical and projected, and (v) any other
factors that materially change the credit risk of lending to the Borrower on
the security of the Accounts and Rental Equipment.  The burden of establishing lack of good faith
hereunder shall be on the Borrower.

 

Permitted Encumbrance
shall mean, with respect to any Mortgaged Property, such exceptions to title as
are set forth in the Mortgage Policy delivered with respect thereto, all of
which exceptions must be acceptable to the Collateral Agent in its reasonable
discretion.

 

Permitted Liens
shall have the meaning given to such term in Section 8.2.

 

34

 

Permitted Preferred Stock
shall mean any preferred stock of Holdings, so long as the terms of any such
preferred stock of Holdings (i) do not provide any collateral security,
(ii) do not provide any guaranty or other support by the Borrower or any
Subsidiary of the Borrower or Holdings, (iii) do not contain any mandatory
put, redemption, repayment, sinking fund or other similar provision occurring
before the first anniversary of the Maturity Date, (iv) do not require the
cash payment of dividends or interest before the first anniversary of the
Maturity Date, (v) do not grant the holders thereof any voting rights
except for (i) voting rights required to be granted to such holders under
applicable law and (ii) limited customary voting rights on fundamental
matters such as mergers, consolidations, sales of substantial assets, or
liquidations involving Holdings and (vi) are otherwise reasonably
satisfactory to the Administrative Agent.

 

Permitted Transferee
shall mean with respect to any Person who is a natural person, (i) such
individual’s spouse or children (natural or adopted), any trust for such
individual’s benefit or the benefit of such individual’s spouse or children
(natural or adopted), or any corporation or partnership in which the direct and
beneficial owner of all of the equity interest is such Person or such
individual’s spouse or children (natural or adopted) or any trust for the
benefit of such persons; and (ii) the heirs, executors, administrators or
personal representatives upon the death of such Person or upon the incompetency
or disability of such Person for purposes of the protection and management of
such individual’s assets.

 

Person shall mean
any individual, sole proprietorship, partnership, limited liability company,
joint venture, trust, unincorporated organization, association, corporation,
institution, entity, party or Governmental Authority, and, as applicable, the
successors, heirs and assigns of each.

 

Plan shall mean any
pension plan as defined in Section 3(2) of ERISA, which is maintained or
contributed to by (or to which there is an obligation to contribute by) the
Borrower or a Subsidiary of the Borrower or an ERISA Affiliate which is
organized under the laws of the United States and is subject to Title I of
ERISA, and each such plan for the five-year period immediately following the
latest date on which Holdings, the Borrower, any of their respective Subsidiaries
or an ERISA Affiliate maintained, contributed to or had an obligation to
contribute to such plan.

 

Pledgee shall have
the meaning given to such term in the U.S. Pledge Agreement.

 

Proceeds shall mean
all proceeds of any Collateral.

 

Projections shall
have the meaning provided in Section 5.1(o).

 

Proportionate Share
of a Lender shall mean its Term Loan Proportionate Share or its Revolving
Credit Proportionate Share, as the case may be.

 

PPSA shall mean the
Personal Property Security Act of a province or territory of Canada or the
Civil Code of Quebec or such other statute applicable in a Canadian
jurisdiction which, by mandatory provisions of law, governs any or all of the
attachment, perfection, enforcement or priority of security interests in such jurisdiction.

 

35

 

Public Equity Offering
with respect to any Person, means any public offering of equity of such Person
pursuant to an effective registration statement under the Securities Act.

 

Qualified Canadian Jurisdiction
shall mean the provinces of Ontario, Alberta, British Columbia, Manitoba,
Quebec and Saskatchewan, provided that the Borrower may designate additional
provinces of Canada as Qualified Canadian Jurisdictions by written notice
thereof to the Administrative Agent so long as all recordings, filings and
other actions (including, without limitation, the execution and delivery of
guarantees and security documentation) necessary or, in the reasonable opinion
of the Collateral Agent, desirable to perfect and protect the security
interests in all of the assets and property of each Canadian Subsidiary
(including, without limitation, all of its assets of the type described in the
Canadian Security Agreement executed by WSC pursuant to Section 5.1(d)(ii))
which owns (or is to own) assets or property located in (or which operates in)
such additional jurisdiction have been made and taken, and the Administrative
Agent shall have received opinions of counsel in form and substance
satisfactory to the Administrative Agent as to the matters described above.

 

Qualified Certificated Units
shall mean each Unit owned by the Borrower or a Qualified Subsidiary Guarantor
organized under the laws of the United States of America or a State thereof,
whether owned on the Effective Date or acquired thereafter, which at the time
in question is a Certificated Unit with respect to which the requirements set
forth in Section 5.1(d)(C) have been satisfied (with such satisfaction to
be determined on the date of any determination of whether the respective Unit
is a Qualified Certificated Unit).

 

Qualified Credit Parties
shall mean the Borrower and each Qualified Subsidiary Guarantor.

 

Qualified Subsidiary Guarantors
shall mean each Wholly-Owned Subsidiary of the Borrower that (i) is
organized under the laws of (x) the United States of America or a State
thereof or (y) under the laws of Canada or a province thereof which is a
Qualified Canadian Jurisdiction and (ii) in each case is a Subsidiary
Guarantor.

 

RCRA shall mean the
Resources Conservation and Recovery Act, as amended, 42 U.S.C. § 6901 et
seq.

 

Real Property of any
Person shall mean all of the right, title and interest of such Person in and to
land, improvements and fixtures, including leaseholds.

 

Register shall have
the meaning provided in Section 11.6(b)(A).

 

Regulation D
shall mean Regulation D of the Board of Governors of the Federal Reserve
System as from time to time in effect and any successor thereto.

 

Regulation T
shall mean Regulation T of the Board of Governors of the Federal Reserve
System as from time to time in effect and any successor to all or portion
thereto.

 

Regulation U
shall mean Regulation U of the Board of Governors of the Federal Reserve
System as from time to time in effect and any successor thereto.

 

36

 

Regulation X
shall mean Regulation X of the Board of Governors of the Federal Reserve
System as from time to time in effect and any successor to all or portion
thereto.

 

Rental Equipment
shall mean the mobile structures, modular units and containers generally
constructed of steel or using a steel frame and undercarriage with an exterior
of wood or aluminum and similar products which are sold or leased by the
Borrower or its Subsidiaries to third persons in the ordinary course of
business and used to provide office, classroom, storage, commercial or other
space, whether in single units or physically attached to other such units (and
including in such form, modular structures), which structures are capable of being
transported to and assembled on remote sites, and which may be equipped with
air conditioning and heating, electrical outlets, floors, partitions, plumbing,
carpeting, moldings, wall coverings, lighting and other accessories.

 

Rentals shall mean
all fixed rents or rents which are fixed except for adjustments based upon the
Consumer Price Index payable under the Leases in respect of the use of any
Rental Equipment by account debtors as lessees of such Rental Equipment to the
Borrower or its Subsidiaries as the lessor of such Rental Equipment exclusive
of any amounts paid or payable to the Borrower or its Subsidiaries for the sale
of Rental Equipment or other Inventory or on account of the service, site
preparation, installation or removal of Rental Equipment, security deposits,
insurance waivers, warranty service, late charges, delivery fees, moving fees
maintenance charges, taxes, insurance or similar charges.

 

Replaced Lender
shall have the meaning provided in Section 11.6(d).

 

Replacement Lender
shall have the meaning provided in Section 11.6(d).

 

Reportable Event
shall mean an event described in Section 4043(c) of ERISA with respect to
a Plan that is subject to Title IV of ERISA other than those events to the
extent to which the 30-day notice period is waived under subsection .22,
..23, .25, .27 or .28 of PBGC Regulation Section 4043.

 

Required Appraisal
shall have the meaning provided in Section 7.2.

 

Required Lenders
shall mean, at any time, Non-Defaulting Lenders the sum of whose outstanding
Term Loans and Revolving Credit Commitments (or after the termination thereof,
outstanding Revolving Loans and Revolving Credit Proportionate Shares of Letter
of Credit Obligations) represent more than 50% of the sum of (i) all
outstanding Term Loans of Non-Defaulting Lenders, and (ii) the Total
Revolving Credit Commitments less the Revolving Credit Commitments of all
Defaulting Lenders (or after the termination thereof, the sum of the then total
outstanding Revolving Loans of Non-Defaulting Lenders and the aggregate
Revolving Credit Proportionate Shares of all Non-Defaulting Lenders of the
total Letter of Credit Obligations at such time).

 

Requirement of Law
shall mean, as to any Person, the Governing Documents of such Person, and any
law, treaty, rule or regulation or determination of an arbitrator or a court or
other Governmental Authority, in each case applicable to or binding upon such
Person or any of its property or to which such Person or any of its property is
subject.

 

37

 

Responsible Officer
shall mean, with respect to any Credit Party, the chief executive officer, the
chief financial officer, the vice president of finance, the treasurer, the
controller or any other officer having substantially the same authority and
responsibility as any of the foregoing.

 

Revolving Credit Commitment
shall mean, for each Lender, the amount set forth opposite such Lender’s name
in Schedule I hereto directly below the column entitled “Revolving Credit
Commitment” or in the most recent Assignment and Assumption Agreement to which
such Lender is a party, as same may be (x) increased (or, in the case of a
new Lender, established) as a result of such Lender providing Incremental
Revolving Credit Commitment(s) after the Effective Date and/or (y) reduced
from time to time pursuant to the terms of this Credit Agreement.

 

Revolving Credit Lender
shall mean, at any particular time, each Lender which has a Revolving Credit
Commitment at such time or, if the Revolving Credit Commitments have then been
terminated, each Lender which has outstanding Revolving Loans and/or
participations in Letters of Credit (or unreimbursed payments with respect
thereto).

 

Revolving Credit Proportionate Share
of a Revolving Credit Lender shall mean, at any particular time, a fraction,
expressed as a percentage, obtained by dividing its Revolving Credit Commitment
by the aggregate Revolving Credit Commitments of all the Revolving Credit
Lenders or, if the Revolving Credit Commitments have been terminated, by dividing
(i) the sum of (A) the outstanding Revolving Loans made or held by
such Revolving Credit Lender, plus (B) the amount of such Revolving
Credit Lender’s unfunded participations in outstanding Letters of Credit, plus
(C) the amount of all payments made by such Revolving Credit Lender to the
Issuing Lender in respect of its participations in Letters of Credit for which
the Borrower has not reimbursed such Revolving Credit Lender (other than with
respect to outstanding Revolving Loans deemed requested pursuant to
Section 3.5), by (ii) the sum of (A) the aggregate amount of all
Revolving Loans then outstanding, plus (B) the aggregate amount of
all Revolving Credit Lenders’ unfunded participations in outstanding Letters of
Credit, plus (C) the aggregate amount of all payments made by all
Revolving Credit Lenders to the Issuing Lender in respect of their respective
participations in Letters of Credit for which the Borrower has not reimbursed
the Revolving Credit Lenders (other than with respect to outstanding Loans
deemed requested pursuant to Section 3.5).

 

Revolving Credit Termination Date
shall mean the first date upon which all Revolving Credit Commitments and
Letters of Credit have terminated (or with respect to any Letters of Credit
only, cash collateralized in a manner satisfactory to the Administrative
Agent), all Revolving Outstandings have been paid in full in cash, and all
interest, Fees and other amounts relating to the Revolving Credit Commitments,
Revolving Loans and Letters of Credit have been repaid in full (or with respect
to Letters of Credit only, cash collateralized in a manner satisfactory to the
Administrative Agent).

 

Revolving Loans
shall have the meaning given to such term in Section 2.1(c).

 

Revolving Note shall
mean a promissory note of the Borrower payable to the order of a Lender, in the
form of Exhibit A-2, evidencing the aggregate Indebtedness of the

 

38

 

Borrower to such Lender
resulting from the Revolving Loans made by such Lender or acquired by such
Lender pursuant to Section 2.12 or Section 11.6 or otherwise owing to such
Lender pursuant to the Bank Assignment Agreement.

 

Revolving Outstandings
shall mean, at any time, the sum of (i) the principal amount of all
Revolving Loans at such time plus (ii) the Letter of Credit
Obligations.

 

RL Borrowing Date
shall have the meaning given such term in Section 2.4.

 

S&P shall mean
Standard & Poor’s Rating Services.

 

Sales-Type Leases
shall mean a Lease that should be treated as a capital lease in accordance with
Financial Accounting Standards Board Statement No. 13, as amended, from time to
time or if such statement is not then in effect, such other statement of GAAP
as may be applicable.

 

SEC shall have the
meaning given to such term in Section 7.1(i).

 

Section 2.9(b)(ii) Certificate
shall have the meaning provided in Section 2.9(b)(ii).

 

Secured Creditor Grantors
shall have the meaning given to such term in Section 11.21.

 

Secured Creditors
shall have the meaning given to such term in the respective Collateral
Documents.

 

Securities Act shall
mean the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder from time to time.

 

Security Agreements
shall mean each of the U.S. Security Agreement and each Canadian Security
Agreement.

 

Security Bond Obligations
shall have the meaning given to such term in Section 11.21.

 

Senior Secured Debt
shall mean, at any time, Consolidated Debt (other than Consolidated Debt that
is unsecured or the payment of which, by its express terms, is subordinated to
the payment of the Obligations in a manner reasonably satisfactory to the
Administrative Agent) and, in any event, shall include the Loans and all
Indebtedness for borrowed money owing under or in connection with the Senior
Secured Notes.

 

Senior Secured Leverage Ratio
shall mean, for any fiscal period, the ratio of Senior Secured Debt on the last
day of such fiscal period to Consolidated EBITDA for such fiscal period; provided
that for the purposes of calculating the Senior Secured Leverage Ratio only,
Consolidated EBITDA for any such period shall be increased (or decreased) on a pro
forma basis by Consolidated EBITDA attributable to each Significant
Acquisition (or each Significant Divestiture), in each case consummated during
such period in accordance with the terms hereof,

 

39

 

so long as (in the case of any
such increase) the amount of any such increase is the actual Consolidated
EBITDA earned by the Person (or directly attributable to the business, product
line or assets) acquired pursuant to the respective Significant Acquisition and
such actual Consolidated EBITDA is set forth in reasonable detail and with
reasonable supporting documentation in a written certificate that is executed
by a Responsible Officer of the Borrower and is delivered, and is satisfactory,
to the Administrative Agent.

 

Senior Secured Notes
shall mean the Borrower’s senior secured notes due 2008, issued pursuant to the
Senior Secured Notes Indenture, and
all Senior Secured Notes issued upon the exchange offer as contemplated in the
Senior Secured Notes Indenture, as in effect on the Effective Date, as the same
may be amended, modified or supplemented from time to time in accordance with
the terms hereof and thereof.

 

Senior Secured Notes Documents
shall mean the Senior Secured Notes, the Senior Secured Notes Indenture and all
other documents executed and delivered with respect to the Senior Secured Notes
or the Senior Secured Notes Indenture, in each case, as the same may be
amended, modified or supplemented from time to time in accordance with the
terms hereof and thereof.

 

Senior Secured Notes Indenture
shall mean the indenture, dated as of August 18, 2003, among the Borrower, each
Subsidiary of the Borrower and U.S. Bank National Association, as trustee
thereunder, as the same may be amended, modified or supplemented from time to
time in accordance with the terms hereof and thereof.

 

Senior Unsecured Notes
shall mean the 9 7/8% Senior Unsecured Notes due 2007 issued by the Borrower,
and any substantially identical exchange notes issued pursuant to the Senior
Unsecured Notes Indenture.

 

Senior Unsecured Notes Documents
shall mean the Senior Unsecured Notes, the Senior Unsecured Notes Indenture and
all other documentation relating thereto.

 

Senior Unsecured Notes Indenture
shall mean the Indenture, dated as of May 15, 1997, between the Borrower,
the Subsidiary Guarantors (by means of one or more supplemental indentures) and
The Bank of New York as Trustee, as in effect on the Effective Date and as
the same may be amended, modified or supplemented in accordance with the terms
hereof and thereof.

 

Settlement Date
shall have the meaning given to such term in Section 2.4(b)(i).

 

Shareholders’ Agreements
shall have the meaning given to such term in Section 5.1(m)(iv).

 

Significant Acquisition
shall mean any acquisition by the Borrower or any of its Subsidiaries of
another Person (not already a Subsidiary of the Borrower), or the assets
constituting all or a significant portion of a business, division or product
line of any such Person, the fair market value (determined in good faith by the
Borrower) of which exceeds $1,000,000 for any such transaction (or series of
related transactions).

 

40

 

Significant Divestiture
shall mean any sale or other disposition (other than in the ordinary course of
business) of assets by the Borrower or any of its Subsidiaries to any other
Person (other than the Borrower or a Subsidiary thereof), the fair market value
(determined in good faith by the Borrower) of which exceeds $1,000,000 for any
such transaction (or series of related transactions).

 

Subsidiaries Guaranty
shall mean each of the U.S. Subsidiaries Guaranty and each Canadian
Subsidiaries Guaranty.

 

Subsidiary shall
mean, as to any Person, a corporation, partnership or other entity of which
shares of stock or other ownership interests having ordinary voting power
(other than stock or such other ownership interests having such power only by reason
of the happening of a contingency) to elect a majority of the board of
directors or other managers of such corporation, partnership or other entity
are at the time owned, or the management of which is otherwise controlled,
directly or indirectly through one or more intermediaries, or both, by such
Person.  Unless otherwise qualified, all
references to a “Subsidiary” or to “Subsidiaries” in this Credit Agreement
shall refer to a Subsidiary or Subsidiaries of the Borrower.

 

Subsidiary Guarantor
shall mean each U.S. Subsidiary Guarantor and each Canadian Subsidiary
Guarantor.

 

Surety shall have
the meaning given to such term in Section 8.2(o).

 

Surety Bond shall
have the meaning given to such term in Section 8.2(o).

 

Syndication Agent
shall have the meaning given to such term in the preamble to this Credit
Agreement.

 

Syndication Date
shall mean the earlier of (x) the date which is 90 days after the
Effective Date and (y) the date (which may occur prior to, on or after the
Effective Date) upon which the Administrative Agent determines in its sole
discretion (and notifies the Borrower) that the primary syndication of the
Credit Agreement (and the resulting addition of institutions as Lenders
pursuant to Section 11.6) has been completed, notice of which shall be
promptly given to the Borrower.

 

Tax Benefit shall
have the meaning given to such term in Section 2.9(c).

 

Tax Sharing Agreements
shall have the meaning given to such term in Section 5.1(m).

 

Taxes shall have the
meaning given to such term in Section 2.9.

 

Term Loan shall have
the meaning provided in Section 2.1(a).

 

Term Loan Lender
shall mean, at any particular time, each Lender which has any Term Loan
Outstandings owing to it at such time.

 

41

 

Term Loan Outstandings
shall mean, with respect to any Term Loan Lender at any particular time, the
aggregate outstanding principal balance of the Term Loans owing to such Term
Loan Lender.

 

Term Loan Proportionate Share
of a Term Loan Lender shall mean, at any particular time, a fraction, expressed
as a percentage, obtained by dividing (i) the Term Loan Outstandings of
such Term Loan Lender by (ii) the aggregate Term Loan Outstandings of all
Term Loan Lenders.

 

Term Loans shall
have the meaning given to such term in Section 2.1(a).

 

Term Note shall mean
a promissory note of the Borrower payable to the order of a Lender, in the form
of Exhibit A-1, evidencing the aggregate Indebtedness of the Borrower to such
Lender resulting from the Term Loans made by such Lender or acquired by such
Lender pursuant to Section 2.12 or Section 11.6 or otherwise owing to
such Lender pursuant to the Bank Assignment Agreement.

 

Test Period shall
mean, if a Trigger Event shall occur, each period of four consecutive fiscal
quarters of the Borrower (taken as one accounting period) ending on each of
(x) the last day of the fiscal quarter of the Borrower most recently ended
prior to the occurrence of such Trigger Event for which Financial Statements
for the Borrower and its consolidated Subsidiaries have been delivered to the
Administrative Agent pursuant to Section 7.1(a) or 7.1(b) and (y) the last
day of each fiscal quarter of the Borrower after the fiscal quarter referred to
in clause (x) ending prior to or during the Trigger Event Compliance
Period for such Trigger Event.

 

Total Commitments at
any time shall mean the aggregate of the Commitments, as then in effect, of all
the Lenders.

 

Total Revolving Credit Commitments
shall mean at any time the aggregate of the Revolving Credit Commitments of the
Revolving Loan Lenders.

 

Trade Name License Agreement
shall mean that certain Trade Name and Service Mark License Agreement, dated as
of September 1, 1998, by and among Space Master International, Inc., Space
Master Building Systems, LLC, Space Master Manufacturing, Inc., Space Master
Manufacturing of Pennsylvania, Inc., and Raymond A. Wooldridge, as in effect on
the Effective Date (as same may be amended, modified or supplemented from time
to time pursuant to the terms hereof and thereof).

 

Tranche shall mean
the respective facility and commitments utilized in making Loans hereunder,
with there being two separate Tranches, i.e., Term Loans and Revolving
Loans.

 

Trigger Event shall
mean for any reason Excess Availability is less than $75,000,000 for three (3)
consecutive Business Days or is less than $70,000,000 at any time.

 

Trigger Event Compliance Period
shall mean the period commencing on the occurrence of a Trigger Event and
continuing until such time as Excess Availability is greater than $75,000,000
for ten (10) consecutive Business Days.

 

42

 

Type shall mean the
type of Loan determined with regard to the interest option applicable thereto, i.e.,
whether a Base Rate Loan or a Eurodollar Rate Loan.

 

UCC shall mean the
Uniform Commercial Code as in effect from time to time in the relevant
jurisdiction.

 

Undrawn Letter of Credit Outstandings
shall mean, at any time, the aggregate undrawn amount of all Letters of Credit
outstanding at such time (taking the Dollar Equivalent at such time of any such
undrawn amounts under Letters of Credit denominated in an Alternate Currency).

 

Unfunded Current Liability
of any Plan shall mean the amount, if any, by which the actuarial present value
of the accumulated plan benefits under the Plan as of the close of its most
recent plan year, determined in accordance with actuarial assumptions at such
time consistent with Statement of Financial Accounting Standards No. 87,
exceeds the market value of the assets allocable thereto.

 

Unit shall have the
meaning given to such term in the U.S. Security Agreement.

 

Unit Certificates
shall mean certificates of title, certificates of ownership or other
registration certificates issued or required to be issued under the laws of any
State for any of the Rental Equipment owned or leased by the Borrower or any
Guarantor.

 

Unit Subsidiary
shall mean Willscot Equipment, LLC, a Delaware limited liability company.

 

Unit Subsidiary Management Agreement
shall mean the Unit Subsidiary Management Agreement, dated as of May 22,
1997, and as amended and restated as of the Effective Date (as defined in the
Existing Credit Agreement), between the Borrower and the Unit Subsidiary and
shall include any other management agreement entered into by the Borrower with
the Unit Subsidiary so long as all terms and conditions thereof are reasonably
acceptable to the Administrative Agent.

 

United States and U.S.
shall each mean the United States of America.

 

Unrestricted Subsidiary
shall mean each Foreign Subsidiary of Holdings that does not constitute a
Subsidiary of the Borrower or a Canadian Subsidiary.

 

Unused Line Fee
shall have the meaning provided in Section 4.6.

 

U.S. Credit Parties
shall mean each of Holdings, the Borrower and each Domestic Subsidiary that is
a Subsidiary Guarantor.

 

U.S. Pledge Agreement
shall have the meaning provided in Section 5.1(t).

 

U.S. Pledge Agreement Collateral
shall mean all “Collateral” as defined in the U.S. Pledge Agreement.

 

43

 

U.S. Security Agreement
shall have the meaning given to such term in Section 5.1(d)(i).

 

U.S. Subsidiaries Guaranty
shall have the meaning given to such term in Section 5.1(s)(i).

 

U.S. Subsidiary Guarantor
shall mean (i) each Domestic Subsidiary of the Borrower in existence on
the Effective Date and (ii) each Domestic Subsidiary of the Borrower which
executes and delivers a counterpart of the U.S. Subsidiaries Guaranty after the
Effective Date pursuant to the requirements of Section 7.16.

 

Utilization shall
mean for any period the fraction, expressed as a percentage, (x) the
numerator of which is the gross book value of units of Rental Equipment of the
Qualified Credit Parties leased to customers at the end of such period and
(y) the denominator of which is the gross book value of units of Rental
Equipment owned, leased (as lessee) or held for sale or lease (as lessor) by
the Qualified Credit Parties at the end of such period, provided that any such
new Rental Equipment that is classified by any such Qualified Credit Party as
“equipment held for sale” in accordance with past practices shall be excluded
from the calculation of “utilization” under this definition so long as
(i) such Qualified Credit Party has received a firm purchase order or
binding commitment from its customer for such Rental Equipment and
(ii) such Rental Equipment will be sold upon completion of related
delivery and installation to such customer after such Qualified Credit Party’s
purchase thereof.

 

Wholly-Owned Canadian Subsidiary
shall mean, as to any Person, any Wholly-Owned Subsidiary of such Person that
is incorporated under the laws of Canada or any province thereof.  Unless otherwise qualified, all references to
a “Wholly-Owned Canadian Subsidiary” or to “Wholly-Owned Canadian Subsidiaries”
in this Credit Agreement shall refer to a Wholly-Owned Canadian Subsidiary or
Wholly-Owned Canadian Subsidiaries of the Borrower.

 

Wholly-Owned Domestic Subsidiary
shall mean, as to any Person, any Wholly-Owned Subsidiary of such Person that
is incorporated under the laws of the U.S., any State thereof, the United
States Virgin Islands or Puerto Rico. 
Unless otherwise qualified, all references to a “Wholly-Owned Domestic
Subsidiary” or to “Wholly-Owned Domestic Subsidiaries” in this Credit Agreement
shall refer to a Wholly-Owned Domestic Subsidiary or Wholly-Owned Domestic
Subsidiaries of the Borrower.

 

Wholly-Owned Subsidiary
shall mean, as to any Person, (i) any corporation 100% of whose capital
stock (other than director’s qualifying shares) is at the time owned by such
Person and/or one or more Wholly-Owned Subsidiaries of such Person and
(ii) any partnership, association, joint venture or other entity in which
such Person and/or one or more Wholly-Owned Subsidiaries of such Person has a
100% equity interest at such time. Unless otherwise qualified, all references
to a “Wholly-Owned Subsidiary” or to “Wholly-Owned Subsidiaries” in this Credit
Agreement shall refer to a Wholly-Owned Subsidiary or Wholly-Owned Subsidiaries
of the Borrower.

 

WSC shall mean
Williams Scotsman of Canada, Inc., a corporation organized under the laws of
the province of Ontario.

 

44

 

WSC Ontario Assets
shall have the meaning given to such term in Section 11.19(d).

 

WSC Receivables
shall have the meaning given to such term in Section 11.19(d).

 

1.2           Accounting Terms and
Determinations.  Unless otherwise
defined or specified herein, all accounting terms used herein shall have the
meanings customarily given in accordance with GAAP, and all financial
computations to be made under this Credit Agreement shall, unless otherwise
specifically provided herein, be made in accordance with GAAP applied on a
basis consistent in all material respects with the Financial Statements
referred to in Section 6.10(b).  All
accounting determinations for purposes of determining compliance with
Sections 8.4, 8.9, 8.10 and 8.11 (and calculating the financial covenants
set forth in such sections) and calculating the Borrowing Base as set forth in
Section 2.2, the definitions directly or indirectly utilized in such
sections or otherwise used in determining such compliance or making such
calculation and the definitions of “Applicable Margin”, “Eligible Rental
Equipment” and “Eligible Accounts Receivable” shall be made in accordance with
GAAP as in effect on the Effective Date and applied on a basis consistent in
all material respects with the Financial Statements referred to in
Section 6.10(b).  Without limiting
the foregoing, if the Borrower or any of its Subsidiaries changes its
depreciation methodology after the Effective Date, such change shall not be
given effect for purposes of determining compliance with the Sections
referenced in the immediately preceding sentence or for making calculations of
the types described in the immediately preceding sentence.  The Financial Statements required to be
delivered hereunder from and after the Effective Date and all financial records
shall be maintained in accordance with GAAP as in effect as of the date of the
Financial Statements referred to in Section 6.10(b) or, if GAAP shall
change from the basis used in preparing the Financial Statements referred to in
Section 6.10(b), the certificates required to be delivered pursuant to
Section 7.1 demonstrating compliance with the covenants contained herein
shall include calculations setting forth the adjustments necessary to
demonstrate how the Borrower is in compliance with the financial covenants
based upon GAAP as utilized in the Financial Statements referred to in Section 6.10(b).

 

1.3           Interpretive Provisions  (a). 
Terms not otherwise defined herein which are defined in the UCC as in
effect on the date hereof in the State of New York shall have the meanings
given them in such UCC.  The term
“security interest” includes a hypothec.

 

(b)           The words “hereof”,
“herein” and “hereunder” and words of similar import when used in this Credit
Agreement shall refer to this Credit Agreement as a whole and not to any
particular provision of this Credit Agreement, and references to Article,
Section, Schedule, Exhibit and like references are references to this Credit
Agreement unless otherwise specified.  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 mean “to but excluding” and the word “through” means “to and
including.”  The word “or” is not
exclusive.

 

(c)           An Event of Default
shall “continue” or be “continuing” until such Event of Default has been cured
or waived in accordance with Section 11.10 hereof.

 

(d)           Unless otherwise
expressly provided herein, (i) references to agreements (including this Credit
Agreement) and other contractual instruments shall be deemed to include

 

45

 

all subsequent amendments, restatements, and
other modifications thereto, but only to the extent such amendments,
restatements, and other modifications are not prohibited by the terms of any
Credit Document, and (ii) references to any statute or regulation are to be
construed as including all statutory and regulatory provisions consolidating,
amending, replacing, supplementing, or interpreting the statute or regulation.

 

(e)           The captions and
headings of this Credit Agreement and the other Credit Documents are for
convenience of reference only and shall not affect the interpretation of this
Credit Agreement and the other Credit Documents.

 

(f)            This Credit
Agreement and the other Credit Documents may use several different limitations,
tests, or measurements to regulate the same or similar matters.  All such limitations, tests, and measurements
are cumulative and shall each be performed in accordance with their terms.

 

1.4           No Strict Construction.  This Credit Agreement and the other Credit
Documents are the result of negotiations among, and have been reviewed by
counsel to, each Agent, each Lender, each Co-Lead Arranger, and the Credit
Parties and are the products of all parties. 
Accordingly, this Credit Agreement and the other Credit Documents shall
not be construed against the Administrative Agent, the Syndication Agent, the
Collateral Agent, the Issuing Lender, the Lenders, or the Credit Parties merely
because of their respective involvement in their preparation.

 

1.5           Certain Provisions Regarding
Holdings.  (a)  Notwithstanding
anything to the contrary contained in this Credit Agreement or any of the other
Credit Documents, Holdings and the Unrestricted Subsidiaries shall not be
required to comply with any of the covenants or other agreements set forth in
Articles 7 and 8 (such covenants, the “Holdings No-Compliance Covenants”);
provided, that (i) if at any time any of the Holding Company Requirements shall
fail to be satisfied and such failure shall continue for 20 or more consecutive
days after the earlier of (x) the date of the occurrence of such failure
and (y) the date on which the Borrower or Holdings receives written notice
from an Agent of such failure, then Holdings and the Unrestricted Subsidiaries
shall, from and after such 20th day and until all of the Holding
Company Requirements are again satisfied, comply with all of the Holdings
No-Compliance Covenants and (ii) Holdings (but not the Unrestricted
Subsidiaries) shall comply with the covenants contained in Schedule XVIII.

 

(b)           Holdings represents
and warrants to the Agents and the Lenders that on the Effective Date all of
the Holding Company Requirements are satisfied. 
Holdings shall promptly (and in any event within 3 Business Days after
obtaining knowledge thereof) notify the Administrative Agent of each occurrence
of any of the Holding Company Requirements no longer being satisfied.  Further, Holdings agrees that it shall
deliver to the Administrative Agent, not later than 45 days after the end of
each fiscal quarter of Holdings, a certificate of a Responsible Officer of
Holdings certifying that the Holding Company Requirements were satisfied at all
times during the fiscal quarter of the Borrower just ended or, if the Holding
Company Requirements were not so satisfied, certifying the requirements that
were not satisfied in reasonable detail and whether all of the Holding Company
Requirements have been satisfied on the date of such certificate.

 

46

 

(c)           Nothing contained in
this Section 1.5 shall (x) relieve the Borrower or any of its
Subsidiaries from any obligation to timely comply with the covenants set forth
in Articles 7 and 8 or any other provisions applicable to such Persons in
any Credit Document or (y) affect any Default or Event of Default arising
from the failure of the Borrower or any of its Subsidiaries to so timely comply
with any such obligation.

 

ARTICLE 2

 

Amount and Terms of Credit

 

2.1           The Commitments and Loans.  (a)  Pursuant to the Existing
Credit Agreement, certain banks and other financial institutions made term
loans to the Borrower, the aggregate outstanding principal balance of which as
of the Effective Date is $205,776,241.50. 
The Borrower acknowledges and agrees that (i) pursuant to the Bank
Assignment Agreement, on the Effective Date, BofA and DBTCA purchased from the
other banks and other financial institutions party to the Existing Credit
Agreement the outstanding term loans made to the Borrower under the Existing
Credit Agreement held by such banks and other financial institutions, (ii) such
term loans purchased by BofA and DBTCA pursuant to the Bank Assignment
Agreement and the term loans made by BofA and DBTCA to the Borrower under the
Existing Credit Agreement and outstanding on the Effective Date, in an
aggregate outstanding principal amount of $151,974,511.95, shall, subject to
clause (iii) of the last sentence of Section 2.1(c), be deemed to constitute
term loans made under this Credit Agreement on the Effective Date (each, a
“Term Loan” and, collectively, the “Term Loans”), (iii) the Term Loans shall
initially be maintained as a single Borrowing of Base Rate Loans (subject to
the option to convert the Term Loans pursuant to Section 4.3) and (iv) a
portion of the Term Loans shall be assigned by BofA and DBTCA to certain of the
Lenders on the Effective Date pursuant to Section 2.12.  Once repaid, Term Loans may not be
reborrowed.  The Borrower hereby agrees
to execute and deliver to each Lender that requests same a Term Note in the
form of Exhibit A-1 to evidence the Term Loans made by such Lender or otherwise
owing to such Lender pursuant to the Bank Assignment Agreement or as provided
in Section 11.6 of this Credit Agreement.

 

(b)           [intentionally
omitted].

 

(c)           Subject to the terms
and conditions set forth in this Credit Agreement, on and after the Initial
Borrowing Date and to and excluding the Maturity Date, each Revolving Credit
Lender severally agrees to make revolving loans and advances to the Borrower
hereunder (the “Revolving Loans”). 
Subject to the provisions of this Credit Agreement, the Borrower may
borrow, repay (without penalty, except for breakage costs under
Section 4.5(b)) and re-borrow Revolving Loans, all in accordance with the
terms and conditions hereof.  On and
immediately after the occurrence of the Effective Date, the Revolving Credit
Commitment for each Lender shall be the amount set forth opposite such Lender’s
name in Schedule I hereto directly below the column entitled “Revolving Credit
Commitment” (as same may be (x) increased from time to time as a result of
the respective Lender furnishing Incremental Revolving Credit Commitment(s)
after the Effective Date and/or (y) reduced from time to time pursuant to
the terms of this Credit Agreement).  If
any Incremental Revolving Credit Commitments are provided after the Effective
Date, the Administrative Agent is authorized to make such changes to Schedule I
as are appropriate to reflect the revised Revolving Credit Commitments of the

 

47

 

various Lenders.  The Borrower hereby agrees to execute and
deliver to each Lender that requests same a Revolving Note in the form of
Exhibit A-2 to evidence the Revolving Loans made by each such Lender or
otherwise owing to such Lender pursuant to the Bank Assignment Agreement or
Sections 2.12 or 11.6 of this Credit Agreement.  The Borrower acknowledges and agrees that
(i) the portion of the payment made on the Effective Date pursuant to
Section 3(a) of the Bank Assignment Agreement by BofA and DBTCA to or for
the account of certain of the other banks and other financial institutions
party to the Existing Credit Agreement with respect to the purchase of the
outstanding revolving loans made to the Borrower under the Existing Credit
Agreement held by such banks and other financial institutions shall be deemed
to constitute a Revolving Loan requested by and made to the Borrower on the
Effective Date in the amount of $101,828,278.82, (ii) the revolving loans
made by BofA and DBTCA under the Existing Credit Agreement outstanding on the
Effective Date shall be deemed to constitute a Revolving Loan requested by and
made to the Borrower on the Effective Date in the amount of the aggregate
outstanding principal balance of such revolving loans on the Effective Date,
(iii) the excess, if any, of (1) the aggregate of (x) the
portion of the payment made on the Effective Date pursuant to Section 3(a)
of the Bank Assignment Agreement by BofA and DBTCA to certain of the other
banks and other financial institutions party to the Existing Credit Agreement
with respect to the purchase of the outstanding term loans made to the Borrower
under the Existing Credit Agreement held by such banks and other financial
institutions and (y) the term loans made by BofA and DBTCA under the
Existing Credit Agreement outstanding on the Effective Date over
(2) $150,000,000, shall be deemed to constitute a Revolving Loan requested
by and made to the Borrower on the Effective Date in the amount of such excess
(and such excess portion shall no longer constitute term loans or Term Loans
hereunder), (iv) the Revolving Loans deemed requested and made on the
Effective Date pursuant to the foregoing clauses (i) through (iii) shall
initially be maintained as a single Borrowing of Base Rate Loans (subject to
the option to convert such Revolving Loans pursuant to Section 4.3) and
(v) a portion of the Revolving Loans deemed requested and made on the
Effective Date pursuant to the foregoing clauses (i) through (iii) shall
be assigned by BofA and DBTCA to the other Revolving Credit Lenders on the
Effective Date pursuant to Section 2.12.

 

(d)           So long as no
Default or Event of Default then exists or would result therefrom, the
Borrower, in consultation with the Administrative Agent, shall have the right
to request from time to time after the Syndication Date (for this purpose,
determined as if clause (x) contained in the definition of Syndication
Date were deleted) and prior to the Maturity Date that one or more Lenders
(and/or one or more other Persons which will become Lenders as provided below)
provide Incremental Revolving Credit Commitments and, subject to the terms and
conditions contained in this Credit Agreement, make Incremental Revolving
Loans, as the case may be, pursuant thereto; it being understood and agreed,
however, that:

 

(i)            no Lender shall be
obligated to provide an Incremental Revolving Credit Commitment as a result of
any such request by the Borrower, and until such time, if any, as such Lender
has agreed in its sole discretion to provide an Incremental Revolving Credit
Commitment and executed and delivered to the Administrative Agent an
Incremental Commitment Agreement as provided in clause (e)(i) of this
Section 2.1, such Lender shall not be obligated to fund any Incremental
Revolving Loans;

 

48

 

(ii)           any Lender (or, in
the circumstances contemplated by clause (v) below, any other Person which
will qualify as an Eligible Transferee) may so provide an Incremental Revolving
Credit Commitment without the consent of any other Lender;

 

(iii)          the Incremental
Revolving Credit Commitments provided pursuant to this clause (d) shall be
in a minimum aggregate amount (for all Lenders (including in the circumstances
contemplated by clause (v) below, Eligible Transferees who will become Lenders))
of at least $5,000,000 and in integral multiples of $1,000,000 in excess
thereof,

 

(iv)          the aggregate amount
of all Incremental Revolving Credit Commit­ments permitted to be provided
pursuant to this Section 2.1 shall not exceed $150,000,000;

 

(v)           if, after the
Borrower has requested the then existing Lenders (other than Defaulting
Lenders) to provide Incremental Revolving Credit Commitments pursuant to this
clause (d), the Borrower has not received Incremental Revolving Credit
Commitments in an aggregate amount equal to that amount of Incremental
Revolving Credit Commitments which the Borrower desires to obtain pursuant to
such request (as set forth in the notice provided by the Borrower as provided
below), then the Borrower may request Incremental Revolving Credit Commitments
from Persons which would qualify as Eligible Transferees hereunder in an
aggregate amount equal to such defici­ency, provided that (x) any
such Incremental Revolving Credit Commitment provided by any such Eligible
Transferee shall be in a minimum amount (for such Eligible Transferee) of at
least $1,000,000, (y) the fees to be paid to such Eligible Transferee
shall be no greater than those paid (or which were offered) to the then
existing Lenders providing (or which were requested to provide) the respective
requested Incremental Revolving Credit Commitments and (z) the consent of
the Administrative Agent shall be required with respect to each Person (not an
existing Lender) which provides any Incremental Revolving Credit Commitment,
such consent not to be unreasonably withheld;

 

(vi)          the consent of each
Issuing Lender to each Lender providing an Incremental Revolving Credit
Commitment (whether an existing or new Lender) shall be required, which
consents shall not be unreasonably withheld;

 

(vii)         each Lender agreeing
to provide an Incremental Revolving Credit Commitment pursu­ant to an
Incremental Commitment Agreement shall, subject to the satisfaction of the
relevant conditions set forth in this Agreement, make revolving loans and
advances (each, an “Incremental Revolving Loan” and, collectively, the “Incremental
Revolving Loans”) to the Borrower as specified in such Incremental
Commitment Agreement and such Incremental Revolving Loans shall thereafter be
deemed to be Revolving Loans for all purposes of this Credit Agreement and the
other Credit Documents;

 

(viii)        Incremental
Revolving Loans to be made pursuant to such Incremental Commitment Agreement
shall mature on the Maturity Date and shall bear interest at the same rates (i.e.,
have the same Applicable Margins) applicable to other Revolving Loans; and

 

49

 

(ix)           all actions by the
Borrower pursuant to this clause (d) shall be taken in coordination with
the Administrative Agent.

 

(e)           In connection with
the Incremental Revolving Credit Commitments to be provided pur­suant to
preceding clause (d):

 

(i)            the Borrower, the
Administrative Agent and each such Lender or other Eligible Transferee which
agrees to provide an Incremental Revolving Credit Commitment (each such Lender
or Eligible Transferee, an “Incremental Revolving Credit Lender”) shall
execute and deliver to the Administrative Agent (with a copy to the Borrower)
an Incremental Commitment Agreement substantially in the form of Exhibit R
(appropriately completed), with the effectiveness of such Incremental Revolving
Credit Lender’s Incremental Revolving Credit Commitment to occur upon the
delivery of such Incremental Commitment Agreement to the Administrative Agent,
the obtaining of the consents required by Section 2.1(d) (v) and/or (vi),
if and to the extent required pursuant to said clauses, the payment of any fees
required in connection therewith (including, without limitation, any fees
payable pursuant to clause (ii) below) and the satisfaction of any other
conditions precedent that may be set forth in such Incremental Commitment
Agreement;

 

(ii)           Holdings, the
Borrower and its Subsidiaries shall have delivered such amendments,
modifications and/or supplements to the Collateral Documents as are necessary
or, in the reasonable opinion of the Administrative Agent, desirable to ensure
that the additional Obligations to be incurred pursuant to the Incremental
Revolving Credit Commitments are secured by, and entitled to the benefits of, the
Collateral Documents;

 

(iii)          the Administrative
Agent shall receive an acknowl­edgment from the Credit Parties that the
Incremental Revolving Loans to be incurred pursuant to such Incremental
Revolving Credit Commitments are entitled to the benefits of the Guaranties and
the Collateral Documents, together with resolu­tions executed by (x) the
Borrower, authorizing the incurrence of such Incremental Revolving Loans
pursuant to such Incremental Revolving Credit Commitments and (y) each
other Credit Party, stating that the Incremental Revolving Loans to be incurred
pursuant to such Incremental Revolving Credit Commitments are entitled to
benefits of the Guaranties and the Collateral Documents;

 

(iv)          the Borrower shall
deliver to the Administrative Agent an opinion or opinions, in form and
substance reasonably satisfactory to the Administrative Agent, from counsel to
the Borrower reasonably satisfactory to the Administrative Agent and dated the
date of such Incremental Commitment Agreement, covering such of the matters set
forth in the opinions of counsel delivered to the Administrative Agent on the
Initial Borrowing Date pursuant to Section 5.1(c) and such other matters
as the Administrative Agent may reasonably request, including non-contravention
of the Senior Secured Notes Documents and the Senior Unsecured Notes Documents;

 

50

 

(v)           on the date of the
making of such Incremental Revolving Loans, same shall be added to (and form
part of) each Borrowing of outstanding Revolving Loans on a pro  rata
basis (based on the relative sizes of the various outstanding Borrowings), so
that each Lender will participate proportionately in each then outstanding
Borrowing of Revolving Loans, and so that the existing Lenders continue to have
the same participation (by amount) in each Borrowing as they had before the
making of the new Incremental Revolving Loans; and

 

(vi)          the Administra­tive
Agent shall promptly notify each Lender as to the effectiveness of each
Incremental Commitment Agreement, and shall deliver to each Lender a copy of
same, and (i) at such time Schedule I shall be deemed modified to reflect
the Incremental Revolving Credit Commitments of such Incremental Revolving
Lenders and (ii) to the extent requested by such Incremental Revolving
Lenders, Revolving Notes will be issued, at the Borrower’s expense, to such
Incremental Revolving Lenders, to reflect the Incremental Revolving Loans made
by such Incremental Revolving Lenders or such Incremental Revolving Lender, as
the case may be.

 

To the extent the provisions above contained in clause (e) (v)
above require that Lenders making Incremental Revolving Loans add same to then
outstanding Borrowings of Eurodollar Rate Loans, it is acknowledged that the
effect thereof may result in such new Incremental Revolving Loans having short
Interest Periods (i.e., an Interest Period that began during an Interest
Period then applicable to outstanding Eurodollar Rate Loans and which will end
on the last day of such Interest Period). 
In connection therewith, the Borrower may agree, in the respective
Incremental Commitment Agreement, to compensate the Lenders making the new
Incremental Revolving Loans for funding Eurodollar Rate Loans during an
existing Interest Period on such basis as may be agreed by the Borrower and
such respective Lender or Lenders.

 

2.2           Determination of Borrowing Base
for Revolving Loans; etc. 
(a)  Subject to Section 2.2(c) and Section 2.3(c),
Revolving Loans shall not in aggregate principal amount at any time outstanding
exceed, when added to the Letter of Credit Obligations at such time, the least
of:

 

(i)            the Total Revolving
Credit Commitments as then in effect minus reserves established pursuant
to the second sentence of clause (b) below; or

 

(ii)           the amount then
equal to:

 

(A)          the
Adjusted Net Book Value Percentage of all Eligible Rental Equipment. plus

 

(B)           85%
of Eligible Accounts Receivable, minus

 

(C)           the
aggregate principal amount of Term Loans outstanding at such time, minus

 

(D)          the
aggregate principal amount of Senior Secured Notes then outstanding, minus

 

51

 

(E)           reserves
established pursuant to the first sentence of clause (b) below; or

 

(iii)          the maximum amount
of Revolving Outstandings that are permitted to be outstanding at such time
pursuant to the Senior Secured Notes Indenture and the Senior Unsecured Notes
Indenture.

 

The amount calculated in accordance with clause (i) above is
hereinafter referred to as the “Net Total Revolving Credit Commitments”.
 The amount calculated in accordance with
clause (ii) above is hereinafter referred to as the “Borrowing Base”.

 

(b)           The Administrative
Agent shall in the exercise of its Permitted Discretion (x) at any time be
entitled to (i) establish and increase or decrease reserves against
Eligible Accounts Receivable and Eligible Rental Equipment and (ii) impose
additional restrictions (or eliminate the same) to the standards of “Eligible
Accounts Receivable” and “Eligible Rental Equipment” and (y) at any time
after the Effective Date be entitled to reduce the advance rates under
Section 2.2(a)(ii)(A) or (B) or restore such advance rates to any level
equal to or below the advance rates stated in Section 2.2(a)(ii)(A) or
(B).  In addition, the Administrative
Agent shall at any time be entitled to establish and increase or decrease
reserves against the Total Revolving Credit Commitments that represent amounts
the Administrative Agent in its reasonable judgment believes any of the
Administrative Agent or the Collateral Agent may be required to expend or may
deem advisable to expend (x) in connection with the preservation,
protection, collection or realization of Collateral or (y) in connection
with any obligation, agreement or undertaking of any Credit Party set forth in
this Credit Agreement or any of the other Credit Documents.  The Administrative Agent shall provide the
Borrower with not less than five (5) Business Days written notice prior to
adding any new type of reserve against the Total Revolving Credit Commitments; provided,
that no such notice shall be required if a new type of reserve is added during
the continuance of an Event of Default. 
The Administrative Agent may, but shall not be required to, rely on each
Borrowing Base Certificate and any other schedules or reports delivered to it
in connection herewith in determining the then eligibility of Accounts and
Rental Equipment.  Reliance thereon by
the Administrative Agent from time to time shall not be deemed to limit the right
of the Administrative Agent to revise advance rates or standards of eligibility
as provided in this Section 2.2(b).

 

(c)           The Borrowing Base
will be computed monthly and a Borrowing Base Certificate presenting the
computation thereof will be delivered promptly to the Administrative Agent as set
forth in Section 7.1(e). 
Notwithstanding anything to the contrary contained herein, the
Administrative Agent shall be satisfied that on the Effective Date and after
giving effect to all Credit Events on such date and after giving effect to the
effectiveness of the assignments and transfers contemplated by the Bank
Assignment Agreement, the Borrower shall be able to incur additional Revolving
Outstandings, after giving effect to all Credit Events on the Effective Date,
of $100,000,000 in compliance with the applicable restrictions contained in
Section 2.2(a).

 

2.3           Borrowing Mechanics.  (a)  Except as provided in
Section 2.3(b) or (c), Borrowings shall be made on notice from the
Borrower to the Administrative Agent, given not later than 1:00 P.M.
(New York City time) on the date on which the proposed Borrowing
consisting of Base Rate Loans is requested to be made and on the third Business
Day prior to the

 

52

 

date on which any proposed
Borrowing consisting of Eurodollar Rate Loans is requested to be made.

 

(i)            Each Notice of
Borrowing shall be given by either telephone, telecopy, telex, facsimile or
cable, and, if by telephone, confirmed in writing, substantially in the form of
Exhibit B-1 (the “Notice of Borrowing”), appropriately completed to
specify the aggregate principal amount of the Revolving Loans to be made
pursuant to such Borrowing, the date of such Borrowing (which shall be a
Business Day) and whether the Revolving Loans being made pursuant to such
Borrowing are to be initially maintained as Base Rate Loans or Eurodollar Rate
Loans and, if Eurodollar Rate Loans, the initial Interest Period to be
applicable thereto.  The Administrative
Agent shall promptly give each Revolving Credit Lender notice of such proposed
Borrowing, of such Lender’s proportionate share thereof and of the other
matters required by the second immediately preceding sentence to be specified
in the Notice of Borrowing.  Each Notice
of Borrowing shall be irrevocable by and binding on the Borrower.

 

(ii)           The Borrower shall
notify the Administrative Agent in writing of the names of the officers
authorized to request Revolving Loans on behalf of the Borrower, and shall
provide the Administrative Agent with a specimen signature of each such
officer.  The Administrative Agent shall
be entitled to rely conclusively on such officers’ authority to request
Revolving Loans on behalf of the Borrower until the Administrative Agent
receives written notice to the contrary. The Administrative Agent shall have no
duty to verify the authenticity of the signature appearing on any Notice of
Borrowing or other writing delivered pursuant to this Section 2.3(a) and,
with respect to an oral request for Revolving Loans, the Administrative Agent
shall have no duty to verify the identity of any individual representing
himself as one of the officers authorized to make such request on behalf of the
Borrower.  Neither the Administrative
Agent nor any of the Lenders shall incur any liability to the Borrower as a result
of acting upon any telephonic notice referred to in this Section 2.3(a)
which notice the Administrative Agent believes in good faith to have been given
by a duly authorized officer or other individual authorized to request
Revolving Loans on behalf of the Borrower or for otherwise acting reasonably
and in good faith under this Section 2.3(a) and, upon the funding of
Revolving Loans by the Lenders in accordance with this Credit Agreement,
pursuant to any such telephonic notice, the Borrower shall be deemed to have
made a Borrowing of such Revolving Loans hereunder.

 

(iii)          In a Notice of
Borrowing, the Borrower may request one or more Borrowings on a single
day.  Each such Borrowing shall be in an
aggregate amount for all Lenders of not less than $1,000,000 in the case of
Eurodollar Rate Loans.  Unless otherwise
requested in the applicable Notice of Borrowing, all Revolving Loans shall be
Base Rate Loans.  All Term Loans and
Revolving Loans made (or deemed made) on the Effective Date shall initially be
Base Rate Loans and thereafter may be continued as Base Rate Loans or converted
into Eurodollar Rate Loans, in the manner provided in Section 4.3(b).  The right of the Borrower to choose
Eurodollar Rate Loans is subject to the provisions of Section 2.3(a)(v) and
4.3(c).

 

53

 

(iv)          Upon the
Administrative Agent’s receipt of one or more Notices of Borrowing with respect
to the Revolving Loans to be made on any given date, the Administrative Agent
shall give each Lender prompt notice by telephone or facsimile transmission of
such Notice of Borrowing.  Subject to the
reasonable determination by the Administrative Agent that the applicable
conditions for borrowing contained in Article 5 are satisfied, each
Revolving Credit Lender shall make available to the Administrative Agent at the
Payment Office its Revolving Credit Proportionate Share of the aggregate amount
of Revolving Loans to be made on such date, in immediately available funds no
later than 3:00 P.M. New York City time on such date.  Notwithstanding the foregoing, Incremental
Revolving Loans to be made on any date shall be made in accordance with the
relevant provisions of Section 2.1. 
Unless the Administrative Agent receives contrary written notice prior
to (unless the Initial Borrowing Date is the date of such Borrowing, in which
case no later than 11:00 A.M. (New York City time) on the Initial
Borrowing Date) the date of any Borrowing, it is entitled to assume that each
Revolving Credit Lender will make available the amounts specified above and, in
reliance upon such assumption, but without any obligation to do so, the
Administrative Agent may advance such amounts on behalf of the Revolving Credit
Lenders (with the Revolving Credit Lenders being obligated to the
Administrative Agent for any such advances in accordance with the provisions of
Section 2.4).

 

(v)           Notwithstanding the
foregoing, prior to the Syndication Date, Loans may only be incurred and
maintained as, and/or Converted into, Eurodollar Rate Loans as long as such
Loans, together with all other outstanding Eurodollar Rate Loans, are subject
to a one-month Interest Period which, in each case, begins and ends on the same
day, with the first of such Interest Periods not to begin prior to the third
Business Day following the Initial Borrowing Date.

 

(b)           The Borrower has
informed the Administrative Agent that it has a checking account (such checking
account, together with any other checking accounts established as contemplated
in the last sentence of this clause (b) collectively, the “Disbursement
Account”) with BofA for general corporate purposes, including the purpose
of paying trade payables and other operating expenses.  The Lenders hereby authorize the
Administrative Agent and, so long as the conditions for Borrowing in
Article 5 remain satisfied, the Administrative Agent on behalf of the
Lenders may but shall not be obligated to make Revolving Loans to cover the
amount of checks presented for payment and other disbursements from the
Disbursement Account.  Such Borrowings
shall be of Base Rate Loans only and will at no time exceed the amount
available for the Borrowing of Revolving Loans under Section 2.2 (as
determined in good faith by the Administrative Agent).  The Borrower may open additional checking accounts
with financial institutions satisfactory to the Administrative Agent so long as
each such checking account constitutes a Deposit Account (as defined in the
U.S. Security Agreement) and is subject to a Control Agreement as provided in
the U.S. Security Agreement.

 

(c)           In the event the
Borrower is unable to comply with (i) the Borrowing Base limitations set
forth in Section 2.2(a)(ii) or (ii) the conditions precedent to the
making of a Revolving Loan or the issuance of a Letter of Credit set forth in
Section 5.2, the Lenders authorize the Administrative Agent, for the
account of the Lenders, to make Revolving Loans (the “Agent Advances”)
to the Borrower for a period commencing on the date the Administrative

 

54

 

Agent first receives a Notice of Borrowing
requesting an Agent Advance until the earlier of (i) the date the Borrower
is again able to comply with the Borrowing Base limitations and the conditions
precedent to the making of Revolving Loans and issuance of Letters of Credit,
or obtains an amendment or waiver with respect thereto or (ii) the date
the Required Lenders instruct the Administrative Agent to cease making Agent
Advances (in each case, the “Agent Advance Period”).  The Administrative Agent shall not make any
Agent Advance (i) to the extent that at such time the amount of such Agent
Advance when added to the aggregate outstanding amount of other Agent Advances
would exceed the lesser of (x) the remainder of the Total Revolving Credit
Commitments at such time less the Revolving Outstandings at such time
and (y) 5% of the Revolving Outstandings at the time of the first request
for an Agent Advance during the related Agent Advance Period or (ii) if
the Administrative Agent believes that the making of the respective Agent
Advance may cause a violation of the relevant provisions of the Senior
Unsecured Notes Indenture or the Senior Secured Notes Indenture (it being
understood and agreed that the Administrative Agent may, but shall not be
required to, require such officer’s certificates and/or opinions of counsel
from the Borrower to the effect that no such violation of the Senior Unsecured
Notes Indenture or the Senior Secured Notes Indenture shall occur as a result
of the making of the respective Agent Advance). 
It is understood and agreed that, subject to the requirements set forth
above, Agent Advances may be made by the Administrative Agent in its discretion
and that the Borrower shall have no right to require that any Agent Advances be
made.  Agent Advances will be subject to
periodic settlement with the Lenders under Section 2.4.

 

2.4           Settlements Among the
Administrative Agent and the Lenders. 
(a)  Except as provided in Section 2.4(b), the
Administrative Agent shall give to each Revolving Credit Lender prompt notice
of each Notice of Borrowing by telecopy, telex, facsimile or cable.  No later than 3:00 P.M. (New York City
time) on the date of each Borrowing representing the incurrence of Revolving
Loans (each, a “RL Borrowing Date”), each Lender with a Revolving Credit
Commitment will make available, from the account of its Applicable Lending
Office, to the Administrative Agent at its Payment Office, in immediately
available funds, for the account of the Borrower, its Revolving Credit
Proportionate Share of such Borrowing. 
To the extent the Lenders have made such amounts available to the
Administrative Agent as provided above, the Administrative Agent will make the
aggregate of such amounts available to the Borrower by 4:00 P.M., New York
time, on the respective RL Borrowing Date in accordance with this
Section 2.4 and in like funds received by the Administrative Agent.  Unless the Administrative Agent shall have
been notified by any Lender prior to the date of such Borrowing that such
Lender does not intend to make available to the Administrative Agent its
portion of such Borrowing to be made on such date, the Administrative Agent may
assume that such Lender will make such amount available to the Administrative
Agent at its Payment Office on such date of Borrowing, or, if applicable, the
Settlement Date and the Administrative Agent, in reliance upon such assumption,
may but shall not be obligated to make available the amount of the Borrowing to
be provided by such Lender.  Except as
provided in Section 2.4(b) and subject to Section 2.4(e), promptly
after its receipt of payments from or on behalf of the Borrower (other than
amounts payable to the Administrative Agent to reimburse the Administrative
Agent, the Collateral Agent and the Issuing Lender for fees and expenses
payable solely to them), the Administrative Agent will cause such payments to
be distributed ratably to the applicable Lenders.

 

55

 

(b)           Unless the Required
Lenders have instructed the Administrative Agent to the contrary, the
Administrative Agent on behalf of the Lenders may but shall not be obligated to
make Base Rate Loans under Section 2.3 without prior notice of the
proposed Borrowing to the Lenders, as follows:

 

(i)            The amount of each
Revolving Credit Lender’s Revolving Credit Propor­tionate Share of outstanding
Revolving Loans shall be computed weekly (or more frequently in the
Administrative Agent’s discretion) and shall be adjusted upward or downward on
the basis of the amount of outstanding Revolving Loans as of 5:00 P.M.
(New York City time) on the last Business Day of the period specified by
the Administrative Agent (such date, the “Settlement Date”).  The Administrative Agent shall deliver to
each of the Revolving Credit Lenders promptly after the Settlement Date a
summary statement of the amount of outstanding Revolving Loans for such
period.  The Revolving Credit Lenders
shall transfer to the Administrative Agent, or, subject to Section 2.4(e),
the Administrative Agent shall transfer to the Revolving Credit Lenders, such
amounts as are necessary so that (after giving effect to all such transfers)
the amount of Revolving Loans made by each Revolving Credit Lender shall be
equal to such Revolving Credit Lender’s Revolving Credit Proportionate Share of
the aggregate amount of Revolving Loans outstanding as of such Settlement
Date.  If the summary statement is
received by the Revolving Credit Lenders prior to 12:00 Noon (New York
City time) on any Business Day, each Revolving Credit Lender shall make the
transfers described above in immediately available funds no later than 3:00
P.M. (New York City time) on the day such summary statement was received;
and if such summary statement is received by the Lenders after 12:00 Noon (New York
City time) on such day, each Revolving Credit Lender shall make such transfers
no later than 3:00 P.M. (New York City time) on the next succeeding
Business Day.  The obligation of each of
the Revolving Credit Lenders to transfer such funds shall be irrevocable and
unconditional and without recourse to or warranty by the Administrative
Agent.  Each of the Administrative Agent
and the Revolving Credit Lenders agree to mark their respective books and
records on the Settlement Date to show at all times the dollar amount of their
respective Revolving Credit Proportionate Shares of the outstanding Revolving
Loans.

 

(ii)           To the extent that
the settlement described above shall not yet have occurred, upon any repayment
of Revolving Loans by the Borrower, the Administrative Agent may apply such
amounts repaid directly to the amounts made available by the Administrative
Agent pursuant to this Section 2.4(b).

 

(iii)          Because the
Administrative Agent on behalf of the Revolving Credit Lenders may be advancing
and/or may be repaid Revolving Loans prior to the time when the Revolving
Credit Lenders will actually advance and/or be repaid Revolving Loans, interest
with respect to Revolving Loans shall be allocated by the Administrative Agent
to each Revolving Credit Lender and the Administrative Agent in accordance with
the amount of Revolving Loans actually advanced by and repaid to each Revolving
Credit Lender and the Administrative Agent and shall accrue from and including
the date such Revolving Loans are so advanced to but excluding the date such
Revolving Loans are either repaid by the Borrower in accordance with
Section 2.5 or actually settled by the applicable Lender as described in
this Section 2.4(b).

 

56

 

(c)           If a Lender (such a
Lender, a “Defaulting Lender”) fails to make available to the
Administrative Agent its Proportionate Share of any Loans (including Agent
Advances) made available by the Administrative Agent on such Lender’s behalf,
or fails to make available any other amount owing by it to the Administrative
Agent and the Administrative Agent has made such amount available to the
Borrower, the Administrative Agent shall be entitled to recover such amount on
demand from such Defaulting Lender.  If
such Defaulting Lender does not pay such amount forthwith upon the
Administrative Agent’s demand therefor, the Administrative Agent shall promptly
notify the Borrower and the Borrower shall promptly (but in any event no later
than five Business Days after such demand) pay such amount (to the extent not
paid by the Defaulting Lender) to the Administrative Agent.  The Administrative Agent shall also be
entitled to recover from such Defaulting Lender or the Borrower, as the case
may be, (x) interest on such amount in respect of each day from the date
such corresponding amount was made available by the Administrative Agent to the
Borrower to the date such amount is recovered by the Administrative Agent, at a
rate per  annum equal to either (i) if paid by such
Defaulting Lender, the overnight Federal Funds Rate for the first three days
and at the interest rate otherwise applicable to such Loans for each day
thereafter or (ii) if paid by the Borrower, the then applicable rate of
interest, calculated in accordance with Section 4.1 or Section 4.2
hereof, plus (y) in each case, an amount equal to any costs
(including reasonable legal expenses) and losses incurred as a result of the
failure of such Defaulting Lender to provide such amount as provided in this
Credit Agreement; provided, however, that the Administrative
Agent shall not be entitled to demand payment by the Borrower of any amount
under clause (y) above unless demand therefor has been made of the
Defaulting Lender and not paid within five Business Days of such demand.  Nothing herein shall be deemed to relieve any
Lender from its duty to fulfill its obligations hereunder or to prejudice any
rights which the Borrower may have against any Lender as a result of any
default by such Lender hereunder, including, without limitation, the right of
the Borrower to seek reimbursement from any Defaulting Lender for any amounts
paid by the Borrower under clause (y) above on account of such Defaulting
Lender’s default.

 

(d)           The failure of any
Lender to fund its Proportionate Share of any Loan (including Agent Advances)
required to be made by it as part of any Borrowing shall not relieve any other
Lender of its obligation, if any, hereunder to fund its Proportionate Share of
such Loan on the date of such Borrowing, or relieve the Lender who failed to
make such amount available to subsequently repay such amount, or relieve any
Lender (including the Lender that failed to make such amount available) of its
obligation hereunder to make its ratable portion of any Borrowing available as
part of any subsequent Loans, but no Lender shall be responsible for the
failure of any other Lender to fund its Proportionate Share of a Loan.

 

(e)           Notwithstanding
anything contained herein to the contrary, so long as any Revolving Credit
Lender is a Defaulting Lender or has rejected or repudiated its Revolving
Credit Commitment, the Administrative Agent shall not be obligated to transfer
to such Lender any payments made by the Borrower to the Administrative Agent
for the benefit of such Lender (excluding such payments made in respect of the
Term Loans); and such Lender shall not be entitled to the sharing of any
payments (excluding such payments made in respect of the Term Loans) pursuant
to Section 2.10.  Amounts which
would have been payable to such Lender in the absence of the immediately
preceding sentence shall instead be paid to the Administrative Agent.  The Administrative Agent may hold and, in its
discretion, re-lend to the Borrower the amount of all such payments received by
it for such Lender.  For purposes of voting
or consenting to

 

57

 

matters with respect to the Credit Documents,
each Defaulting Lender shall be deemed not to be a “Lender” and such Lender’s
Revolving Credit Commitment (and related Outstandings) and Term Loan
Outstandings, as applicable, shall be deemed to be zero.  This Section 2.4(e) shall remain
effective with respect to such Defaulting Lender until (x) the Obligations
under this Credit Agreement shall have been paid in full to the Administrative
Agent and/or the Lenders other than the Defaulting Lender or (y) the
Required Lenders, the Administrative Agent and the Borrower shall have waived
such Defaulting Lender’s default in writing. 
No Commitment of any Lender shall be increased or otherwise affected,
and performance by the Borrower shall not be excused, by the operation of this
Section 2.4(e).

 

2.5           Mandatory and Voluntary Payments:
Mandatory and Voluntary Reduction of Commitments.

 

(a)           Maturity of Term
Loans.  The Borrower shall repay the
outstanding principal balance of the Term Loans, together with all accrued and
unpaid interest thereon, on the Maturity Date or earlier as herein provided
(including, without limitation, pursuant to this Section 2.5).

 

(b)           Voluntary
Prepayment of Term Loans.  Subject to
Section 2.5(c) and the last sentence of this Section 2.5(b), the
Borrower may, without premium or penalty, prepay Term Loans by giving the
Administrative Agent at least (x) one Business Day’s prior written notice
in the case of Term Loans constituting Base Rate Loans and (y) at least
three Business Days’ notice in the case of Term Loans constituting Eurodollar
Loans (which notice the Administrative Agent shall promptly transmit to each
Term Loan Lender), provided that, in the case of Term Loans constituting
Eurodollar Rate Loans, any payment required to be made pursuant to
Section 4.5(b) as a result of such prepayments shall have been, or shall
concurrently therewith be, made.  Unless
the aggregate Term Loan Outstandings are to be prepaid in full, voluntary
prepayments of the Term Loans shall be in an aggregate minimum amount of
$1,000,000 and in increments of $500,000 in excess of such amount.  Each voluntary prepayment shall permanently
reduce the Term Loan Outstandings of each Term Loan Lender ratably in
accordance with its Term Loan Proportionate Share.  Any notice of prepayment given to the
Administrative Agent under this Section 2.5(b) shall specify the date
(which shall be a Business Day) of prepayment, the aggregate principal amount
of the prepayment and the Types of Term Loans to be prepaid, and in the case of
Eurodollar Loans, the specific Borrowing or Borrowings pursuant to which
made.  When notice of prepayment is
delivered as provided herein, the principal amount of the Term Loans specified
in the notice shall become due and payable on the prepayment date specified in
such notice.  Notwithstanding anything to
the contrary contained above, unless the Required Lenders otherwise
specifically consent in writing thereto (or the Revolving Credit Termination
Date has occurred or will occur concurrently with such prepayment), no
voluntary prepayment of Term Loans may be made pursuant to this
Section 2.5(b) unless, after giving effect thereto, Excess Availability is
at least $50,000,000.

 

(c)           No Readvance of
Term Loans.  Any repayment or
prepayment of all or any portion of the principal amount of the Term Loans
shall constitute a permanent reduction in the Term Loan Outstandings and may
not be readvanced to the Borrower.

 

58

 

(d)           Mandatory Payment
of Revolving Loans.  Revolving Loans
shall be due and payable without any demand at any time that the aggregate
balance of Revolving Loans and all Letter of Credit Obligations outstanding at
such time exceeds the lesser of the Borrowing Base then in effect and the Net
Total Revolving Credit Commitments then in effect, in the amount of such
excess, provided that (i) no such payment shall be required
pursuant to the foregoing clause as a result of a Borrowing Base Deficiency
during an Agent Advance Period (although to the extent the amount of Revolving
Outstandings exceeds the amount permitted to be outstanding pursuant to the
Senior Unsecured Notes Indenture or the Senior Secured Notes Indenture or to
the extent there exists an excess over the Net Total Revolving Credit
Commitments then in effect, each such payment shall be required to be made
immediately and whether or not an Agent Advance Period is in existence),
(ii) if the then aggregate outstanding principal amount of Revolving Loans
is less than such excess (it being understood and agreed that such excess shall
be calculated after giving effect to the foregoing clause (i)), Letters of
Credit will be required to be cash collateralized (to the satisfaction of the
Collateral Agent) in the amount of such difference and (iii) if the sum of
the aggregate outstanding principal amount of Revolving Loans and the cash
collateralized Letters of Credit is less than such excess, Term Loans will be
required to be repaid in the amount of such difference.

 

(e)           Termination and
Reductions of Commitments.

 

(i)            The Total
Commitments (and the Commitment of each Lender) shall terminate on
July 15, 2005, unless the Initial Borrowing Date shall have occurred on or
before such date.

 

(ii)           [intentionally
omitted].

 

(iii)          [intentionally
omitted].

 

(iv)          On the earlier of
(x) the Maturity Date and (y) unless the Required Lenders otherwise
consent in writing, the date on which a Change of Control occurs, the Total
Revolving Credit Commitments (and the Revolving Credit Commitment of each
Revolving Credit Lender) shall terminate.

 

(v)           On each date upon
which a mandatory repayment of Term Loans pursuant to Section 2.5(i), (j), (k)
or (l) is required (and exceeds in amount the aggregate principal amount of
Term Loans then outstanding) or would be required if Term Loans were then
outstanding, the Total Revolving Credit Commitments shall be permanently
reduced by the amount, if any, by which the amount required to be applied
pursuant to said Sections (determined as if an unlimited amount of Term Loans
were actually outstanding) exceeds the aggregate principal amount of Term Loans
then outstanding.

 

(f)            Voluntary
Prepayment of Revolving Loans.  In
addition to the transfers and distributions of funds required pursuant to
Section 2.6, the Borrower shall have the right to prepay the Revolving
Loans, without premium or penalty, in whole or in part at any time and from
time to time on the following terms and conditions:  (i) the Borrower shall give the Administrative
Agent prior to 12:00 Noon (New York City time) (x) at least one
Business Day’s prior written notice (or telephonic notice promptly confirmed in
writing) of its intent to prepay

 

59

 

Base Rate Loans and (y) at least three
Business Days’ prior written notice (or telephonic notice promptly confirmed in
writing) of its intent to prepay Eurodollar Rate Loans, the amount of such
prepayment and the Types of Loans to be prepaid and, in the case of Eurodollar
Rate Loans, the specific Borrowing or Borrowings pursuant to which made, which
notice the Administrative Agent shall promptly transmit to each of the Lenders;
and (ii) prepayments of Eurodollar Rate Loans made on a day other than the
last day of an Interest Period applicable thereto shall be accompanied by any
amounts owing pursuant to Section 4.5(b).

 

(g)           Apportionment and
Application of Payments and Reductions to Total Commitments.

 

(i)            With respect to
each repayment of Loans pursuant to this Section 2.5, the Borrower may
designate the Types of Loans which are to be repaid and the specific
Borrowing(s) pursuant to which made; provided that (i) if
Eurodollar Rate Loans are repaid on a day that is other than the last day of an
Interest Period applicable thereto, such repayment shall be accompanied by any
amounts owing pursuant to Section 4.5(b); (ii) if any partial
prepayment of Eurodollar Rate Loans made pursuant to any Borrowing shall reduce
the outstanding Eurodollar Rate Loans made pursuant to such Borrowing to an
amount less than $1,000,000, then such Borrowing may not be continued as a
Borrowing of Eurodollar Rate Loans and any election of an Interest Period with
respect thereto given by the Borrower shall have no force or effect; and
(iii) each repayment of any Loans made pursuant to a Borrowing shall,
except as provided in Section 2.4(e) and (in the case of Term Loans)
subject to the provisions of Section 2.5(n), be applied pro  rata
among the Lenders that made such Loans. 
If the Borrower is required to repay any Eurodollar Rate Loans as a
result of the application of Section 2.5(i), (j), (k) or (l) and such
prepayment will result in the Borrower being required to pay breakage costs
under Section 4.5(b) (any such Eurodollar Rate Loans, “Affected Loans”),
the Borrower may elect, by written notice to the Administrative Agent, to have
the provisions of the following sentence be applicable.  At the time any Affected Loans are otherwise
required to be prepaid the Borrower may elect to deposit 100% (or such lesser
percentage elected by the Borrower as not being immediately repaid) of the
principal amounts that otherwise would have been paid in respect of the
Affected Loans with the Administrative Agent to be held as security for the
obligations of the Borrower hereunder for a period not to exceed 60 days
pursuant to a cash collateral agreement to be entered into in form and
substance satisfactory to the Administrative Agent, with such cash collateral
to be released from such cash collateral account (and applied to repay the
principal amount of such Eurodollar Rate Loans) upon each occurrence thereafter
of the last day of an Interest Period applicable to Eurodollar Rate Loans of
the respective Tranche (or such earlier date or dates as shall be requested by
the Borrower), with the amount to be so released and applied on the last day of
each Interest Period to be the amount of such Eurodollar Rate Loans (excluding
any such Eurodollar Rate Loans which are Term Loans to the extent the
respective Term Loan Lenders have waived their rights to receive such payment
in accordance with the provisions of Section 2.5(n)) to which such
Interest Period applies (or, if less, the amount remaining in such cash
collateral account); provided that on the 90th day after the deposit
thereof, any amount remaining from the respective deposit pursuant to the cash
collateral account shall be applied to repay outstanding Loans which would
otherwise have been repaid in the absence of this sentence.  In the absence of a

 

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designation by the Borrower as described in the first sentence of this
clause (g)(i), each repayment of Loans pursuant to Section 2.5 shall
be applied first to the payment of Base Rate Loans and second to the payment of
Eurodollar Rate Loans in the order of the Interest Periods applicable thereto
soonest to end.  If there is more than
one Eurodollar Rate Loan maturing on any one date, then, in the absence of
contrary instructions from the Borrower, (i) if such Eurodollar Rate Loans
bear interest at different rates, payment shall be applied to the Eurodollar
Rate Loans bearing the higher rate of interest and (ii) if such Eurodollar
Rate Loans bear interest at the same interest rate, payment shall be applied to
whichever Eurodollar Rate Loan the Administrative Agent shall select in its
sole discretion.

 

(ii)           Any reduction to
the Total Revolving Credit Commitments pursuant to this Section 2.5 shall
reduce the Revolving Credit Commitment of each of the Revolving Credit Lenders pro
rata (based on each Revolving Credit Lender’s Revolving Credit
Proportionate Share).

 

(iii)          Any prepayment of
Term Loans pursuant to this Section 2.5 and Section 7.10 shall
permanently reduce the Term Loan Outstandings of each Term Loan Lender ratably
in accordance with its Term Loan Proportionate Share.

 

(h)           Voluntary
Reduction of Revolving Credit Commitments. 
The Borrower may permanently reduce or terminate the unutilized Total
Revolving Credit Commitments at any time and from time to time in whole or in
part upon at least three Business Days’ prior written notice to the
Administrative Agent; provided, however, that each such reduction must be in an
amount not less than $250,000 (and in increments of $50,000 if in excess
thereof); and provided further, that (i) if the Borrower seeks to reduce
the Total Revolving Credit Commitments to an amount less than $10,000,000, then
the Total Revolving Credit Commitments shall be reduced to zero and
(ii) once reduced, the amount of any such reductions in the Total Revolving
Credit Commitments may not be reinstated.

 

(i)            Mandatory
Commitment Reductions and Prepayments Relating to Issuances of Debt.  In addition to any other mandatory repayments
or commitment reductions pursuant to this Section 2.5, but subject to
Section 2.5(o), on the date of the receipt of any cash proceeds by
Holdings, the Borrower or any of their respective Subsidiaries from the
incurrence of Indebtedness by Holdings, the Borrower or any of their respective
direct or indirect Subsidiaries (other than Indebtedness permitted to be
incurred under Section 8.3 as in effect on the Effective Date), an amount
equal to 100% of the Net Debt Proceeds therefrom shall be applied to repay
outstanding Term Loans in accordance with the requirements of Section 2.5(g)(iii).

 

(j)            Mandatory
Prepayments Relating to Asset Sales. 
In addition to any other mandatory repayments or commitment reductions
pursuant to this Section 2.5, but subject to Section 2.5(o), on each
date after the Effective Date upon which Holdings, the Borrower or any of their
respective Subsidiaries receives any cash proceeds from any Asset Sale
(including capital stock and securities held by any such Person, but excluding
(i) Asset Sales so long as, and to the extent that, the aggregate amount
of Net Sale Proceeds from all Asset Sales excluded pursuant to this
clause (i) during the respective fiscal year of the Borrower in which the
Net Sale

 

61

 

Proceeds are received does not exceed
$7,500,000, (ii) sales of Rental Equipment in the ordinary course of
business and consistent with past practices, (iii) sales or other
dispositions of assets which do not constitute Collateral, and (iv) sales
of Real Property under Section 8.1(k), to the extent that the Borrower has
delivered a certificate to the Administrative Agent on or prior to such date
stating that it intends to reinvest the Net Sale Proceeds therefrom in
Inventory, replacement equipment, Rental Equipment, or property and equipment
as the case may be, within 180 days after the respective date of sale or
disposition or, in lieu thereof, commit to so invest such Net Sale Proceeds
within 180 days after such date of sale and actually expend the funds pursuant
to such commitment within 365 days after such date of sale or disposition), an
amount equal to 100% of the Net Sale Proceeds from such Asset Sale shall be
applied to repay outstanding Term Loans in accordance with the requirements of
Section 2.5(g)(iii); provided that to the extent any Net Sale Proceeds are
not required to be applied pursuant to this Section 2.5(j) as a result of
clause (iv) contained in the parenthetical above, then (x) on the
180th day after the date of the respective sale or disposition, the Net Sale
Proceeds of the respective sale or disposition shall be applied as otherwise
required by this Section 2.5(j) to the extent not actually used or
committed to be used as contemplated by said clause (iv) by such 180th day
and (y) on the 365th day after the date of the respective sale or
disposition, any Net Sale Proceeds of the respective sale or disposition shall
be applied as otherwise required by this Section 2.5(j) to the extent same
were committed to be used within 180 days after the respective date of sale or
other disposition but were not in fact used by such 365th day as contemplated
by said clause (iv).

 

(k)           Mandatory
Prepayments Relating to Equity Issuances. 
In addition to any other mandatory repayments or commitment reductions
pursuant to this Section 2.5, but subject to Section 2.5(o), on each
date after the Effective Date upon which (x) Holdings receives any cash
proceeds from any Public Equity Offering or (y) the Borrower or any
Subsidiary of Holdings or the Borrower receives any cash proceeds from any
Equity Issuance by the Borrower or any Subsidiary of Holdings or the Borrower,
an amount equal to the Applicable Equity Recapture Percentage of the Net Equity
Proceeds therefrom shall be applied to repay outstanding Term Loans in
accordance with the requirements of Section 2.5(g)(iii).

 

(l)            Mandatory
Prepayments Relating to Casualty Losses. 
In addition to any other mandatory repayments pursuant to this
Section 2.5, but subject to Section 2.5(o), to the extent Holdings,
the Borrower or their respective Subsidiaries receives proceeds from a Casualty
Loss, such proceeds shall, to the extent provided in Section 7.10, be
applied to repay Term Loans in accordance with the requirements of Section
2.5(g)(iii).

 

(m)          Maturity Date;
Change of Control.  Upon the earlier
of (i) the Maturity Date and (ii) unless the Required Lenders
otherwise consent in writing, the date on which a Change of Control occurs, all
then outstanding Loans shall be repaid in full.

 

(n)           Special
Application Provisions Regarding Term Loans.  So long as any Term Loans remain outstanding
and so long as (and to the extent that) the Total Revolving Credit Commitments
remain in effect, any amounts required to be applied as mandatory repayments to
the Term Loans pursuant to Sections 2.5(i), (j), (k) and (l) shall be
deposited with the Administrative Agent on the date the respective payment is
otherwise required to be made and, unless the Borrower has already furnished
the Administrative Agent at least three Business Days’ prior written notice of
the respective prepayment and amount thereof, the Administrative

 

62

 

Agent shall not apply such amount to repay
outstanding Term Loans until the third Business Day after its receipt of such
amounts.  Prior thereto, the
Administrative Agent shall give each Term Loan Lender notice of the amount of
the respective repayment to be made to its Term Loans pursuant to the
provisions of said Section 2.5(i), (j), (k) or (l), as the case may
be.  Such amount shall be applied to
repay the outstanding Term Loans of the various Term Loan Lenders in accordance
with the provisions of this Section 2.5 on the date of receipt of such
payment (if at least three Business Days’ notice had previously been given to
the Term Loan Lenders of such prepayment by the Borrower) or on the third
Business Day after the Administrative Agent’s receipt thereof; provided that,
by written notice of any Term Loan Lender delivered to the Administrative Agent
at least one Business Day before the date the respective repayment is actually
applied to outstanding Term Loans, any Term Loan Lender may decline to receive
its share of the amount which would otherwise have been applied to its
outstanding Term Loans, in which case such declined amount shall instead be
applied to the repayment of Revolving Loans and as a mandatory reduction of the
Total Revolving Credit Commitments in the amount of such repayment of Revolving
Loans in accordance with the requirements of Section 2.5(g)(ii).

 

(o)           Certain Payment
Provisions Not Applicable to Holdings. 
The provisions of Sections 2.5(i), (j), (k) and (l) shall not be
applicable to Holdings or any of its Subsidiaries (other than the Borrower and
Subsidiaries of the Borrower) at any time (and only during such time) that the
Holding Company Requirements (as defined in Section 1.5) are satisfied.

 

2.6           Payments and Computations.  (a)  The Borrower shall make each
payment hereunder and under the Notes not later than 1:00 P.M.
New York City time on the day when due in Dollars to the Administrative
Agent at its Payment Office in immediately available funds.  The Borrower’s obligations to the Lenders
with respect to such payments shall be discharged by making such payments to
the Administrative Agent pursuant to this Section 2.6.

 

(b)           (i)  The
Borrower and each of its Subsidiaries that is a U.S. Credit Party shall each,
along with the Collateral Agent and financial institutions selected by the
Borrower and acceptable to the Administrative Agent (the “Collection Banks”),
enter into and maintain an agreement substantially in the form of Exhibit C-1
(if the relevant Collection Bank is the Collateral Agent in its individual
capacity) or, for any Collection Bank which is not the Collateral Agent in its
individual capacity, such other form as may be acceptable to the Collateral Agent
(each such agreement, with such changes as may be agreed to by the Collateral
Agent and as modified, amended or supplemented from time to time, a “Collection
Bank Agreement” and, collectively, the “Collection Bank Agreements”).  The Borrower and each of its Subsidiaries
that is a U.S. Credit Party shall instruct all account debtors on the Accounts
of the Borrower or such Subsidiary, as the case may be, to remit all payments
to the applicable “P.O. Boxes” or “Lockbox Addresses” (as defined in the
applicable Collection Bank Agreement) which remittances shall be collected by
the applicable Collection Bank and deposited in the applicable Collection
Account.  All amounts received by the
Borrower and each of its Subsidiaries that is a U.S. Credit Party from any account
debtor, in addition to all other cash received from any other source, shall,
subject to the requirements of Sections 8.16 and 8.17, upon receipt be
deposited into a Collection Account.

 

(ii)           The Borrower and
its relevant Subsidiaries may close Collection Accounts and/or open new
Collection Accounts with the prior written consent of the Administrative Agent

 

63

 

and subject to prior execution and delivery
to the Administrative Agent of Collection Bank Agreements consistent with the
provisions of this Section 2.6 and in form and substance satisfactory to
the Administrative Agent.

 

(c)           Upon the terms and
subject to the conditions set forth in the Collection Bank Agreements, all
available amounts held in the Collection Accounts shall be wired by the close
of each Business Day into an account maintained by BofA (the “Concentration
Account”) established pursuant to a concentration account agreement entered
into between the Borrower and the Collateral Agent in such form as may be
acceptable to the Collateral Agent (the “Concentration Account Agreement”).

 

(d)           All available
amounts held in the Concentration Account shall be distributed and applied on a
daily basis in the following order (in each case, to the extent the
Administrative Agent has actual knowledge of the amounts owing or outstanding
as described below):  (1) first,
to pay outstanding Expenses (including any amounts relating to any Bank
Products (other than Hedge Agreements)) actually due and payable to the
Administrative Agent and/or the Collateral Agent under any of the Credit
Documents (provided that, in the case of Expenses attributable to
services provided by third party accountants, consultants, advisors and other
professionals retained by the Administrative Agent, the Collateral Agent or any
of their respective Affiliates, same are invoiced to the Borrower or to the
Administrative Agent, the Collateral Agent or the respective Affiliate, with a
copy of said invoice provided to the Borrower), to pay indemnities (including
any amounts relating to any Bank Products (other than Hedge Agreements))
actually due and payable to the Administrative Agent and/or the Collateral
Agent under any Credit Document and to repay or prepay outstanding Revolving
Loans advanced by the Administrative Agent on behalf of the Lenders pursuant to
Sections 2.3 and 2.4(b); (2) second, to the extent all amounts
referred to in preceding clause (1) have been paid in full, to pay all
outstanding Expenses and indemnities actually due and payable to the Issuing
Lender under any of the Credit Documents; (3) third, to the extent
all amounts referred to in preceding clauses (1) and (2) have been paid in
full, to pay (on a ratable basis) all accrued and unpaid interest actually due
and payable on the Loans and all accrued and unpaid Fees actually due and
payable to the Administrative Agent, the Collateral Agent, the Issuing Lenders
and the Lenders under any of the Credit Documents; (4) fourth, to
the extent all amounts referred to in preceding clauses (1) through (3),
inclusive, have been paid in full, to prepay (on a ratable basis) all
outstanding principal on the Revolving Loans (whether or not then due and
payable and with such application to be made, first, to outstanding Base Rate
Loans and, second, to outstanding Eurodollar Rate Loans); and (5) fifth,
to the extent all amounts referred to in preceding clauses (1) through
(4), inclusive, have been paid in full, to pay (on a ratable basis) all other
outstanding Obligations (including payment of any other Obligations relating to
Bank Products) due and payable under any of the Credit Documents.

 

(e)           Each of the Canadian
Subsidiaries shall, along with the Collateral Agent and one or more financial
institutions selected by such Canadian Subsidiaries and acceptable to the
Administrative Agent, enter into and maintain an agreement (or agreements)
substantially in the form of Exhibit C-3 or such other form as Canadian counsel
for the Collateral Agent may suggest with respect to any Canadian Subsidiary or
as may otherwise be acceptable to the Collateral Agent (each such agreement,
with such changes as may be agreed to by the Collateral

 

64

 

Agent and as modified, amended
or supplemented from time to time, the “Canadian Bank Control Agreement”
and, collectively, the “Canadian Bank Control Agreements”).

 

2.7           Maintenance of Account.  The Administrative Agent shall maintain an
account on its books in the name of the Borrower in which the Borrower will be
charged with all loans and advances made by the Lenders to the Borrower
pursuant to the Commitments or otherwise owing by the Borrower under this
Credit Agreement or any Notes as a result of the Bank Assignment Agreement or
Sections 2.12 or 11.6 of this Credit Agreement or for the Borrower’s
account, including the Loans, the Letter of Credit Obligations, and the Fees,
Expenses and any other Obligations relating thereto.  The Borrower will be credited, in accordance
with Section 2.6 above, with all amounts received by the Lenders from the
Borrower or from others for the Borrower’s account, including, as set forth
above, all amounts received by the Administrative Agent in payment of Accounts
and applied to the Obligations.  In no
event shall prior recourse to any Accounts or other Collateral be a
prerequisite to the Administrative Agent’s right to demand payment of any
Obligation upon its maturity.  Further,
the Administrative Agent shall have no obligation whatsoever to perform in any
respect any of the Borrower’s or any of its Subsidiaries contracts or
obligations relating to the Accounts.

 

2.8           Statement of Account.  After the end of each month the
Administrative Agent shall send the Borrower a statement accounting for the
charges, loans, advances and other transactions occurring among and between the
Administrative Agent, the Revolving Credit Lenders, the Issuing Lender and the
Borrower during that month.  The monthly
statements shall, absent manifest error, be an account stated, which is final,
conclusive and binding on the Borrower.

 

2.9           Taxes.  (a)  All payments made by the
Borrower hereunder, under any Note, or under any other Credit Document will be
made without setoff, counterclaim or other defense.  Except as provided in Section 2.9(c),
all such payments 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 the
second succeeding sentence, any tax imposed on or measured by the net income or
net profits (or any branch profits taxes or franchise taxes imposed in lieu of
net income taxes) of the Administrative Agent or a Lender pursuant to the laws
of the jurisdiction in which the Administrative Agent or such Lender, as the
case may be, is organized or the jurisdiction in which the principal office of
such Lender or the Administrative Agent or the Applicable Lending Office of
such Lender is located or any subdivision or taxing authority thereof or
therein) and all interest, penalties or similar liabilities with respect
thereto (all such non-excluded taxes, levies, imposts, duties, fees,
deductions, withholdings, charges, assessments or other liabilities being
referred to collectively as “Taxes”). 
If any Taxes are so levied or imposed, the Borrower agrees to pay the
full amount of such Taxes, and such additional amounts as may be necessary so
that every payment of all amounts due hereunder, under any Note, or under any
other Credit 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
such other Credit Document.  If any
amounts are payable in respect of Taxes pursuant to the preceding sentence, the
Borrower agrees to reimburse each Lender, upon the written request of such
Lender, for taxes imposed on or measured by the net income or net profits (or
any branch profits taxes or franchise 

 

65

 

taxes imposed in lieu of net
income taxes) of such Lender pursuant to the laws of the jurisdiction in which
the Administrative Agent or such Lender is organized or incorporated or in
which the principal office or Applicable Lending Office of such Lender is
located or of any political subdivision or taxing authority thereof or therein
and for any withholding of income or similar taxes as such Lender shall
determine are payable by, or withheld from, such Lender in respect of such
amounts so paid to or on behalf of such Lender pursuant to this or the
preceding sentence.  The Borrower 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 copies of tax receipts evidencing such
payment by the Borrower.  The Borrower
will indemnify and hold harmless the Administrative Agent and each Lender, and
reimburse the Administrative Agent or such Lender upon its written request, on
an after-tax basis (as described in the second preceding sentence), for the
amount of any Taxes so levied or imposed and paid or withheld by the
Administrative Agent or such Lender.  A
certificate prepared in good faith as to the amount of such payment by such
Lender or the Administrative Agent shall, absent manifest error, be prima facie
evidence of such amount.

 

(b)           Each Lender that is
not a United States person (as such term is defined in Section 7701(a)(30)
of the Code) for U.S. Federal income tax purposes agrees to deliver to the
Borrower and the Administrative Agent on or prior to the Effective Date, or in
the case of a Lender that is an assignee or transferee of an interest under
this Credit Agreement pursuant to Section 11.6 or an Incremental Revolving
Credit Lender pursuant to Section 2.1 (unless the respective Lender was already
a Lender hereunder immediately prior to such assignment or transfer or becoming
an Incremental Revolving Credit Lender, as the case may be), on the date of
such assignment or transfer to such Lender or the date such Lender becomes an
Incremental Revolving Credit Lender, as the case may be, (i) two accurate
and complete original signed copies of Internal Revenue Service Form W-8ECI or
Form W-8BEN (with respect to a complete exemption under an income tax treaty)
(or successor forms) certifying to such Lender’s entitlement as of such date to
a complete exemption from United States withholding tax with respect to
payments to be made under this Credit Agreement and under any Note or
(ii) if the Lender is not a “bank” within the meaning of
Section 881(c)(3)(A) of the Code and cannot deliver either Internal Revenue
Service Form W-8ECI or Form W-8BEN (with respect to a complete exemption under
an income tax treaty) pursuant to clause (i) above, (x) a certificate
substantially in the form of Exhibit D (any such certificate, a “Section 2.9(b)(ii)
Certificate”) and (y) two accurate and complete original signed copies
of Internal Revenue Service Form W-8BEN (with respect to the portfolio interest
exemption) (or successor form) certifying to such Lender’s entitlement as of
such date to a complete exemption from United States withholding tax with
respect to payments of interest to be made under this Credit Agreement and
under any Note.  In addition, each Lender
agrees that from time to time after the Effective Date, when a lapse in time or
change in circumstances renders the previous certification obsolete or
inaccurate in any material respect, it will, if then permitted under applicable
law, deliver to the Borrower and the Administrative Agent two new accurate and
complete original signed copies of Internal Revenue Service Form W-8ECI, Form
W-8BEN (with respect to the benefits of any income tax treaty), or Form W-8BEN
(with respect to the portfolio interest exemption) and a
Section 2.9(b)(ii) Certificate, as the case may be, and such other forms
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 with respect to payments under this Credit Agreement and any Note, or it
shall immediately notify the Borrower and the Administrative Agent of its
inability to deliver

 

66

 

any such Form or Certificate, in which case
such Lender shall not be required to deliver any such Form or Certificate
pursuant to this Section 2.9(b). 
Notwithstanding anything to the contrary contained in
Section 2.9(a), but subject to Section 11.6 and the immediately
succeeding sentence, (x) the Borrower shall be entitled, to the extent it
is required to do so by law, to deduct or withhold income or similar taxes
imposed by the United States (or any political subdivision or taxing authority
thereof or therein) from interest, fees or other amounts payable hereunder for
the account of any Lender which is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code) for U.S. Federal income tax
purposes to the extent that such Lender has not provided to the Borrower U.S.
Internal Revenue Service Forms that establish a complete exemption from, or
reduced rate of, such deduction or withholding and (y) the Borrower shall
not be obligated pursuant to Section 2.9(a) to make any additional
payments to a Lender pursuant to the third and fourth sentences of
Section 2.9(a) (the “Gross-Up Payments”) (i) if such Lender
has not provided to the Borrower the Internal Revenue Service Forms required to
be provided to the Borrower pursuant to this Section 2.9(b) or
(ii) in the case of a payment, other than interest, to a Lender described
in clause (ii) above, to the extent that such Forms do not establish a
complete exemption from, or reduced rate of, withholding of such taxes.  Notwithstanding anything to the contrary
contained in the preceding sentence or elsewhere in this Section 2.9 and
except as set forth in Section 11.6, the Borrower agrees to pay additional
amounts and to indemnify each Lender in the manner set forth in
Section 2.9(a) (without regard to the identity of the jurisdiction
requiring the deduction or withholding) in respect of any Taxes deducted or
withheld by it as described in the immediately preceding sentence as a result
of any changes after the Effective Date in any applicable law, treaty,
governmental rule, regulation, guideline or order, or in the interpretation
thereof, relating to the deducting or withholding of such Taxes.

 

(c)           If the Borrower pays
any additional amount under this Section 2.9 to a Lender and such Lender
determines in its sole discretion that it has actually received or realized in
connection therewith any refund or any reduction of, or credit against, its Tax
liabilities in or with respect to the taxable year in which the additional
amount is paid (a “Tax Benefit”), such Lender shall pay to the Borrower
an amount that the Lender shall, in its sole discretion, determine is equal to
the net benefit, after tax, which was obtained by the Lender in such year as a
consequence of such refund, reduction or credit, provided that (i) any
Lender may determine, in its sole discretion consistent with the policies of
such Lender, whether to seek a Tax Benefit; (ii) any Taxes that are imposed
on a Lender as a result of a disallowance or reduction (including through the
expiration of any tax credit carryover or carryback of such Lender that
otherwise would not have expired) of any Tax Benefit with respect to which such
Lender has made a payment to the Borrower pursuant to this Section 2.9(c)
shall be treated as a Tax for which the Borrower is obligated to indemnify such
Lender pursuant to this Section 2.9 without any exclusions or defenses;
(iii) nothing in this Section 2.9(c) shall require the Lender to
disclose any confidential information to the Borrower (including, without
limitation, its tax returns); and (iv) no such refund, reduction or credit
shall be made at any time when an Event of Default exists and is continuing.

 

2.10         Sharing of Payments.  If any Lender shall obtain any payment
(whether voluntary, involuntary, through the exercise of any right of set-off
or otherwise) on account (x) of the Revolving Loans made by it or its
participation in Letters of Credit in excess of its Revolving Credit
Proportionate Share of payments on account of the Revolving Loans or Letters

 

67

 

of Credit obtained by all the Lenders (other
than any Lender that has waived its share in writing), or interest thereon, such
Lender shall forthwith purchase from the other Revolving Credit Lenders, such
participation in the Revolving Loans made by them or in their participation in
Letters of Credit as shall be necessary to cause such purchasing Lender to
share the excess payment ratably with each of them, or (y) the Term Loans
made by it in excess of its Term Loan Proportionate Share of payments on
account of the Term Loans obtained by all the Lenders (other than any Lender
that has waived its share in writing or pursuant to Section 2.5(n)), or
interest thereon, such Lender shall forthwith purchase from the other Term Loan
Lenders such participation in the Term Loans made by them as shall be necessary
to cause such purchasing Lender to share the excess payment ratably with each
of them; provided, however, that if all or any portion of such
excess payment is thereafter recovered from such purchasing Lender, such
purchase from each Lender with Obligations of the respective Tranche shall be
rescinded and each such Lender shall repay to the purchasing Lender the
purchase price to the extent of such recovery together with an amount equal to
such Lender’s ratable share (according to the proportion of (i) the amount
of such Lender’s required repayment to (ii) the total amount so recovered
from the purchasing Lender) of any interest or other amount paid or payable by
the purchasing Lender in respect to the total amount so recovered.  The Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this Section 2.10
may, to the fullest extent permitted by law, exercise all of its rights of
payment (including the right of set-off) with respect to such participation as
fully as if such Lender were the direct creditor of the Borrower in the amount
of such participation.

 

2.11         Bank Products.  Any Credit Party (other than Holdings) may
obtain Bank Products from BofA or any of BofA’s Affiliates or, subject to the
definition of Bank Products, another Lender or any of such Lender’s Affiliates,
although no Credit Party is required to do so. 
To the extent Bank Products are provided by an Affiliate of BofA or of
another Lender, the Borrower agrees, and the relevant Credit Party (if other
than the Borrower) shall agree, to indemnify and hold the Administrative Agent,
BofA and the other Lenders harmless from any and all costs and obligations now
or hereafter incurred by any of the Lenders or Agents which arise from any
indemnity given by BofA or another Lender to its Affiliates related to such
Bank Products; provided, however, nothing contained herein is
intended to limit any Credit Party’s rights, with respect to BofA, another
Lender or their respective Affiliates, if any, that arise as a result of the
execution of documents by and between such Credit Party and BofA, another
Lender or their respective Affiliates that relate to Bank Products.  The agreement contained in this
Section 2.11 shall survive termination of this Credit Agreement.  The Borrower acknowledges and agrees that the
obtaining of Bank Products from BofA, another Lender or any of their respective
Affiliates (a) is in the sole and absolute discretion of BofA, such other
Lender or the applicable Affiliate, as the case may be, and (b) is subject
to all rules and regulations of BofA, such other Lender or such Affiliate.

 

2.12         Assignment and Assumption on
Effective Date. 
(a)  Effective upon the effectiveness of the amendment and
restatement of the Existing Credit Agreement as contemplated hereby (but prior
to the making of any financial accommodations on the Initial Borrowing Date
other than those deemed made pursuant to Section 2.1(a) and the last
sentence of Section 2.1(c) (the time of such effectiveness under this
Section 2.12(a), the “Assignment Effective Time”), each of BofA and
DBTCA (each an “Assignor”) hereby sells, transfers and assigns to each
of the other Lenders party to this Credit Agreement on the Initial Borrowing
Date

 

68

 

(each an “Assignee”),
and each Assignee hereby purchases, assumes and undertakes from each Assignor,
without recourse and without representation or warranty (except as provided in
this Section 2.12), (1) such Assignee’s Revolver Percentage (as
defined below) of (A) the revolving credit commitment of such Assignor
under the Existing Credit Agreement immediately after giving effect to the
transactions contemplated by the Bank Assignment Agreement, each of the
Revolving Loans of such Assignor, the obligations of such Assignor relating to
Letters of Credit (including, without limitation, any obligation to participate
in Letters of Credit) with respect to such revolving credit commitment of such
Assignor and all other obligations of such Assignor as a Revolving Credit
Lender with respect to such revolving credit commitment of such Assignor, in
each instance, under this Credit Agreement as in effect immediately prior to
the assignments and assumptions contemplated by this Section 2.12 and
(B) all related rights, benefits, obligations, liabilities and indemnities
of such Assignor under and in connection with this Credit Agreement as in
effect immediately prior to the assignments and assumptions contemplated by
this Section 2.12 (for each Assignor, the foregoing with respect to all
Assignees collectively, its “Assigned Revolver Interest” and collectively
for both Assignors, the “Assigned Revolver Interests”) and (2) such
Assignee’s Term Loan Percentage (as defined below) of (A) the Term Loans
of such Assignor and all other obligations of such Assignor as a Term Loan
Lender, in each instance, under this Credit Agreement as in effect immediately
prior to the assignments and assumptions contemplated by this Section 2.12
and (B) all related rights, benefits, obligations, liabilities and
indemnities of such Assignor under and in connection with this Credit Agreement
as in effect immediately prior to the assignments and assumptions contemplated
by this Section 2.12 (for each Assignor, the foregoing with respect to all
Assignees collectively, its “Assigned Term Loan Interest” and
collectively for both Assignors, the “Assigned Term Loan Interests” and
for each Assignor, together with its Assigned Revolver Interest, its “Assigned
Interest” and collectively for both Assignors, together with the Assigned
Revolver Interests, the “Assigned Interests”); it being the intention of
the parties hereto that immediately after giving effect to the assignments and
assumptions contemplated by this Section 2.12 (together with the
agreement, if any, of any Lender to provide any additional revolving credit
commitments hereunder on the Initial Borrowing Date) each Lender shall have the
Revolving Credit Commitment and Term Loan Outstandings as set forth on
Schedule I hereto.  “Revolver
Percentage” of any Assignee with respect to a particular Assignor shall
mean such percentage of the revolving credit commitment of such Assignor under
the Existing Credit Agreement immediately after giving effect to the
transactions contemplated by the Bank Assignment Agreement such that
immediately after giving effect to the above assignments and assumptions
(together with the agreement, if any, of any Lender to provide any additional
revolving credit commitments hereunder on the Initial Borrowing Date) each of
the Lenders has the Revolving Credit Commitment set forth on Schedule I hereto.  “Term Loan Percentage” of any Assignee
with respect to a particular Assignor shall mean such percentage of the Term
Loans held by such Assignor pursuant to Section 2.1(a) immediately prior
to the assignments and assumptions contemplated by this Section 2.12 such
that immediately after giving effect to the above assignments and assumptions
each of the Lenders has the Term Loan Outstandings set forth on Schedule I
hereto.  The Administrative Agent shall
determine the Revolver Percentage and Term Loan Percentage of each Assignee
with respect to a particular Assignor.

 

(b)           With effect on and
after such assignments and assumptions, each Assignee shall be a party to this
Credit Agreement and shall succeed to all of the rights and be obligated to
perform all of the obligations of a Lender under this Agreement, including the
requirements

 

69

 

concerning confidentiality and the payment of
indemnification, with a Revolving Credit Commitment and Term Loan Outstandings
in the respective amounts set forth on Schedule I hereto.  Each Assignee agrees that it will perform in
accordance with their terms all of the obligations which by the terms of this
Credit Agreement are required to be performed by it as a Lender.  It is the intent of the parties hereto that
the Revolving Credit Commitment of each Assignor in effect immediately prior to
the assignments and assumptions contemplated by this Section 2.12 shall,
as of the Assignment Effective Time, be reduced such that its Revolving Credit
Commitment hereunder (after giving effect to the agreement, if any, of such
Assignor to provide any additional revolving credit commitments hereunder on
the Initial Borrowing Date) shall be as set forth on Schedule I hereto and
each Assignor shall relinquish its rights and be released from its obligations
under this Credit Agreement in effect immediately prior to the assignments and
assumptions contemplated by this Section 2.12 to the extent such
obligations have been assumed by the Assignees under this Section 2.12;
provided, however, neither Assignor shall relinquish its rights under any
indemnities in its favor under this Credit Agreement or the Existing Credit
Agreement to the extent such rights relate to the time prior to the Assignment
Effective Time.

 

(c)           Immediately after
giving effect to the assignments and assumptions set forth in this
Section 2.12 (together with the agreement, if any, of any Lender to
provide any additional revolving credit commitments hereunder on the Initial
Borrowing Date), the Revolving Credit Commitment and Term Loan Outstandings of
each Lender will be as set forth on Schedule I hereto.  Each Lender hereby acknowledges and agrees
that its Revolving Credit Commitment, immediately after giving effect to the
assignments and assumptions set forth in this Section 2.12 and the
agreement, if any, of such Lender to provide any additional revolving credit
commitments hereunder on the Initial Borrowing Date, is as set forth on
Schedule I hereto.

 

(d)           As consideration for
the sales, assignments and transfers contemplated in this Section 2.12,
each Assignee shall on the Initial Borrowing Date pay to the Administrative
Agent for the account of each Assignor (which shall promptly distribute such
payment to such Assignor) in immediately available funds an amount equal to the
aggregate amount of Loans assigned by such Assignor to such Assignee pursuant
to this Section 2.12.  The
Administrative Agent shall notify each Assignee of the amount of such payment
to be made to the Administrative Agent.

 

(e)           Any interest, fees
and other payments accrued prior to the Initial Borrowing Date with respect to
each Assigned Interest shall be for the account of the respective
Assignor.  Any interest, fees and other
payments accrued on and after the Initial Borrowing Date with respect to each
Assigned Interest shall be for the account of the respective Assignee.  Each Assignor and Assignee agrees that it
will hold in trust for the other party any interest, fees and other amounts
which it may receive to which the other party is entitled pursuant to the
preceding two sentences and pay to the other party any such amounts which it
may receive promptly upon receipt.

 

(f)            Each Assignee (i)
acknowledges that it has received a copy of this Credit Agreement and the
Schedules and Exhibits hereto, together with copies of the most recent
financial statements of Holdings and its Subsidiaries and of the Borrower and
its Subsidiaries, and such other documents and information as it has deemed appropriate
to make its own credit

 

70

 

and legal analysis and decision
to enter into this Credit Agreement and the assignments and assumptions
contemplated by this Section 2.12; and (ii) agrees that it will, independently
and without reliance upon either Assignor, any Agent or any other Lender and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit and legal decisions in taking or not
taking action under this Credit Agreement.

 

(g)           Each Assignor
represents and warrants to each Assignee that (i) it is the legal and
beneficial owner of the portion of its Assigned Interest being assigned by it
to such Assignee under this Section 2.12 and that such portion of its Assigned
Interest is free and clear of any Lien or other adverse claim created by or
through it; (ii) it is duly organized and existing and it has the full
power and authority to take, and has taken, all action necessary to execute and
deliver this Credit Agreement and to fulfill its obligations hereunder
(including, without limitation, those in this Section 2.12); (iii) no
notices to, or consents, authorizations or approvals of, any Person are
required (other than any already given or obtained) for its due execution,
delivery and performance of this Credit Agreement, and no further action by, or
notice to, or filing with, any Person is required of it for such execution,
delivery or performance; and (iv) this Credit Agreement has been duly
executed and delivered by it and constitutes its legal, valid and binding
obligation enforceable against it in accordance with the terms hereof, subject,
as to enforcement, to bankruptcy, insolvency, moratorium, reorganization and
other laws of general application relating to or affecting creditors’ rights
and to general equitable principles.

 

(h)           Neither Assignor
makes any representation or warranty or assumes any responsibility with respect
to any statements, warranties or representations made in or in connection with
the Existing Credit Agreement, this Credit Agreement or any other Credit
Document or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Existing Credit Agreement, this Credit Agreement or
any other instrument or document furnished pursuant hereto or thereto.  Neither Assignor makes any representation or
warranty in connection with, or assumes any responsibility with respect to, the
solvency, financial condition or statements of Holdings, the Borrower, any of
their respective Subsidiaries or any Affiliates of any of the foregoing, or the
performance or observance by any Credit Party or any other Person of any of its
respective obligations under the Existing Credit Agreement, this Credit
Agreement or any other instrument or document furnished in connection herewith
or therewith.

 

(i)            Each Assignee
represents and warrants to each Assignor, Holdings and the Borrower that
(i) it is duly organized and existing and it has full power and authority
to take, and has taken, all action necessary to execute and deliver this Credit
Agreement and to fulfill its obligations hereunder (including, without
limitation, those in this Section 2.12); (ii) no notices to, or
consents, authorizations or approvals of, any Person are required (other than
any already given or obtained) for its due execution, delivery and performance
of this Credit Agreement; and no further action by, or notice to, or filing
with, any Person is required of it for such execution, delivery or performance;
(iii) this Credit Agreement has been duly executed and delivered by it and
constitutes its legal, valid and binding obligation enforceable against it in
accordance with the terms hereof, subject, as to enforcement, to bankruptcy,
insolvency, moratorium, reorganization and other laws of general application
relating to or affecting creditors’ rights and to general equitable principles;
and (iv) it is an Eligible Transferee.

 

71

 

(j)            Each of the parties
hereto hereby consents to the assignments and assumptions contemplated by this
Section 2.12, notwithstanding any failure to comply with (and each of the
parties hereto hereby waives) the requirements of Section 11.6(b) of this
Credit Agreement in order to make such assignments and assumptions effective.

 

ARTICLE 3

 

Letters of Credit

 

3.1           Issuance of Letters of Credit.  Subject to the terms and conditions of this
Credit Agreement and in reliance upon the representations and warranties of the
Borrower set forth herein, upon the request of the Borrower pursuant to Section 3.4,
the Issuing Lender shall issue Letters of Credit hereunder and for the
Borrower’s account, as more specifically described below.   It
is acknowledged and agreed by each party to this Credit Agreement that each of
the letters of credit which were issued under the Existing Credit Agreement
prior to the Initial Borrowing Date and which remain outstanding on the Initial
Borrowing Date and are set forth on Schedule V (each such letter of credit, an
“Existing Letter of Credit” and, collectively, the “Existing Letters
of Credit”) shall, from and after the Initial Borrowing Date, constitute a
Letter of Credit for all purposes of this Agreement and shall, for purposes of
Sections 3.3 and 4.7, be deemed issued on the Initial Borrowing Date.  The Issuing Lender shall be entitled to all
of the benefits as the Issuing Lender and to all of the obligations of the
Borrower and the Lender with respect to the Existing Letters of Credit under
this Credit Agreement.  The stated amount
of each Existing Letter of Credit and the expiry date therefor is set forth on
Schedule V.  The Issuing Lender
shall not be obligated to issue any Letter of Credit for the account of the
Borrower if at the time of such requested issuance:

 

(a)           the face amount of
such requested Letter of Credit (taking the Dollar Equivalent thereof in the
case of any Letter of Credit denominated in an Alternate Currency) when added
to the Letter of Credit Obligations then outstanding, would (i) cause the
Letter of Credit Obligations to exceed $80,000,000, or (ii) when added to
the aggregate amount of Revolving Loans (including Agent Advances) then
outstanding would exceed the least of (A) the Net Total Revolving Credit
Commitments then in effect, (B) the Borrowing Base then in effect and (C) the
maximum amount of Revolving Outstandings that are permitted to be outstanding
at such time pursuant to the Senior Secured Notes Indenture and the Senior
Unsecured Notes Indenture;

 

(b)           any order, judgment
or decree of any Governmental Authority or arbitrator shall purport by its
terms to enjoin or restrain the Issuing Lender from issuing such Letter of
Credit or any Requirement of Law applicable to the Issuing Lender or any
request or directive (whether or not having the force of law) from any
Governmental Authority with jurisdiction over the Issuing Lender shall
prohibit, or request the Issuing Lender to refrain from, the issuance of
letters of credit generally or such Letter of Credit in particular or shall
impose upon the Issuing Lender with respect to such Letter of Credit any
restriction or reserve or capital requirement (for which the Issuing Lender is
not otherwise compensated) not in effect as of the Effective Date, or any
unreimbursed loss, cost or expense which was not applicable, in effect or known
to the Issuing Lender as of the Effective Date and which the Issuing Lender
deems in good faith to be material to it; or

 

72

 

(c)           a default of any
Revolving Credit Lender’s obligations to fund under Section 3.6 exists, or
such Revolving Credit Lender is a Defaulting Lender under Section 2.4(c),
or any Revolving Credit Lender has rejected or repudiated its obligations in
respect of Letters of Credit, unless the Administrative Agent and the Issuing
Lender have entered into satisfactory arrangements with the Borrower to
eliminate the Issuing Lender’s risk with respect to such Revolving Credit
Lender, including cash collateralization of such Revolving Credit Lender’s
Revolving Credit Proportionate Share of the Letter of Credit Obligations.

 

3.2           Terms of Letters of Credit.  The Letters of Credit shall be in a form
customarily issued by the Issuing Lender or in such other form as has been
approved by the Issuing Lender.  Each
Letter of Credit shall be denominated in Dollars (or, if agreed by the
Administrative Agent and the respective Issuing Lender in their sole
discretion, such Alternate Currency or Alternate Currencies as may be approved
by them for the respective Letter of Credit) and shall be issued on a sight
basis only.  At the time of issuance, the
amount and the terms and conditions of each Letter of Credit, and the form of
any drawings thereunder, shall be subject to approval by the Administrative
Agent, the Issuing Lender and the Borrower. 
In no event may the term of any stand-by Letter of Credit issued
hereunder exceed 12 months (except that such Letters of Credit may provide for
annual renewal) nor the term of any trade Letter of Credit exceed 180 days, and
all Letters of Credit issued hereunder shall expire no later than the date that
is (x) in the case of standby Letters of Credit, ten Business Days prior
to the Maturity Date and (y) in the case of any trade Letters of Credit,
30 Business Days prior to the Maturity Date.

 

3.3           Revolving Credit Lenders’
Participation.  Immediately upon the
issuance or amendment by the Issuing Lender of any Letter of Credit in
accordance with the procedures set forth in Section 3.1, each Revolving
Credit Lender shall be deemed to have irrevocably and unconditionally purchased
and received from the Issuing Lender, without recourse or warranty, an
undivided interest and participation to the extent of such Revolving Credit
Lender’s Revolving Credit Proportionate Share (based upon its Revolving Credit
Commitment) of the liability with respect to such Letter of Credit (including,
without limitation, all obligations of the Borrower with respect thereto, other
than amounts owing to the Issuing Lender consisting of Issuing Lender Fees) and
any security therefor or guaranty pertaining thereto.

 

3.4           Notice of Issuance.  Whenever the Borrower desires the issuance of
a Letter of Credit, the Borrower shall deliver to the Administrative Agent and
the Issuing Lender a written notice no later than 1:00 P.M. New York City
time at least three Business Days (or such shorter period as may be agreed to
by the Issuing Lender) in advance of the proposed date of issuance of a letter
of credit request in the form attached as Exhibit B-2 (a “Letter of Credit
Request”).  The transmittal by the
Borrower of each Letter of Credit Request shall be deemed to be a
representation and warranty by the Borrower that the Letter of Credit may be
issued in accordance with and will not violate any of the requirements of
Section 3.1 or 5.2.  A Letter of
Credit Request may be given in writing or by facsimile.  Promptly after the issuance of or amendment
to any standby Letter of Credit, the Issuing Lender shall notify the
Administrative Agent and the Borrower of such issuance or amendment in writing,
and such notice shall be accompanied by a copy of such Letter of Credit or
amendment thereto.  Upon receipt of such
notice, the Administrative Agent shall promptly notify each Revolving Credit
Lender, in writing, of such issuance or amendment.  If requested by a Revolving Credit Lender, the
Administrative

 

73

 

Agent shall provide such
Revolving Credit Lender with copies of such Letter of Credit or amendment.  On the first Business Day of each week, the
Issuing Lender shall provide the Administrative Agent with a report showing the
daily aggregate outstandings for trade Letters of Credit for the previous week.

 

3.5           Payment of Amounts Drawn Under
Letters of Credit.  In the event of a
drawing under a Letter of Credit, the respective Issuing Lender shall notify
the Administrative Agent, who shall notify each Revolving Credit Lender, of
such drawing and, subject to satisfaction or waiver of the conditions specified
in Section 5.2 hereof and the other terms and conditions of Borrowings
contained herein, the Revolving Credit Lenders shall, on the date of such
drawing (or if the Administrative Agent’s notice contemplated above is
delivered after 12:00 Noon (New York City time) on the date of such drawing,
the Business Day after such drawing), make Revolving Loans (constituting Base
Rate Loans) in the amount of such drawing (or the Dollar Equivalent thereof in
the case of any drawing under a Letter of Credit denominated in a currency
other than Dollars), the proceeds of which shall be applied directly by the
Administrative Agent to reimburse the Issuing Lender for the amount of such
drawing or payment.  Borrowings of Base
Rate Loans pursuant to this Section 3.5 shall not be subject to the
minimum amount requirement of Section 2.3(a)(iii).  If for any reason, proceeds of Revolving
Loans are not received by the Issuing Lender on such date in an amount equal to
the amount of such drawing (or the Dollar Equivalent thereof in the case of any
drawing under a Letter of Credit denominated in a currency other than Dollars),
the Borrower shall be obligated to and shall reimburse the Issuing Lender, on
the Business Day immediately following such date, in Dollars in an amount in
same day funds equal to the excess of the amount of such drawing (or the Dollar
Equivalent thereof in the case of any drawing under a Letter of Credit
denominated in a currency other than Dollars) over the amount of such Revolving
Loans, if any, which are so received, plus accrued interest on such amount
until paid in full at the rate set forth in Section 4.2 or 4.4, as
applicable; provided, however, that any such payments shall not
prejudice any rights that the Borrower may have against any Revolving Credit
Lender as a result of any default by such Revolving Credit Lender in funding
such Revolving Loans, as provided in the final sentence of Section 2.4(c).

 

3.6           Payment by Revolving Credit
Lenders.  (a)  In the event
that the Borrower does not reimburse the Issuing Lender for the amount of any
drawing pursuant to Section 3.5 (in the case of any drawing under a Letter
of Credit denominated in a currency other than Dollars, taking the Dollar
Equivalent thereof on the date of the respective drawing) and the proceeds of
Revolving Loans incurred for such purpose are insufficient for such purpose,
the Administrative Agent shall promptly notify each Revolving Credit Lender of
the unreimbursed amount (expressed in Dollars) and of such Revolving Credit
Lender’s respective participation therein. 
Each Revolving Credit Lender shall make available to the Issuing Lender
in Dollars an amount equal to its respective participation in same day funds,
at the office of such Issuing Lender specified in such notice, not later than
1:00 P.M. New York City time on the Business Day after the date notified
by the Administrative Agent.  In the
event that any Revolving Credit Lender fails to make available to the Issuing
Lender the amount of such Revolving Credit Lender’s participation in such
Letter of Credit as provided in this Section 3.6, the Issuing Lender shall
be entitled to recover such amount on demand from such Revolving Credit Lender,
together with interest at the Federal Funds Rate for the first three days and
at the interest rate applicable to Revolving Loans maintained as Base Rate
Loans for each day thereafter.

 

74

 

(b)           The Administrative
Agent or the Issuing Lender, as the case may be, shall distribute to each
Lender which has paid all amounts payable by it under this Section 3.6
with respect to any Letter of Credit, such Lender’s Revolving Credit
Proportionate Share of all payments subsequently received by the Administrative
Agent or the Issuing Lender, as the case may be, from the Borrower in
reimbursement of drawings honored under such Letter of Credit when such payments
are received.

 

3.7           Nature of Issuing Lender’s Duties.  In determining whether to pay under any
Letter of Credit, the Issuing Lender shall be responsible only to determine
that the documents and certificates required to be delivered under that Letter
of Credit have been delivered and that they substantially comply on their face
with the requirements of that Letter of Credit. 
As between the Borrower, the Issuing Lender and each other Lender, the
Borrower assumes all risks of the acts and omissions of, or misuse of the
Letter of Credit issued by the Issuing Lender by, the respective beneficiaries
of such Letter of Credit; provided, however, that nothing in this
sentence shall relieve the Issuing Lender of liability for its gross negligence
or willful misconduct (as determined by a court of competent jurisdiction in a
final and unappealable decision).  In
furtherance and not in limitation of the foregoing, neither the Issuing Lender
nor any of the other Lenders shall be responsible (i) for the form,
validity, sufficiency, accuracy, genuineness or legal effects of any document
submitted by any party in connection with the application for and issuance of
or any drawing honored under such Letter of Credit even if it should in fact
prove to be in any or all respects invalid, insufficient, inaccurate,
fraudulent or forged, (ii) for the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign such
Letter of Credit, or the rights or benefits thereunder or proceeds thereof, in
whole or in part, which may prove to be invalid or ineffective for any reason,
(iii) for failure of the beneficiary of such Letter of Credit to comply
fully with conditions required in order to draw upon such Letter of Credit,
(iv) for errors, omissions, interruptions or delays in transmission or
delivery of any messages, by mail, cable, telegraph, telex, telecopy, facsimile
or otherwise, whether or not they be in cipher, (v) for errors in
interpretation of technical terms, (vi) for any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under any such Letter of Credit, or of the proceeds thereof, (vii) for the
misapplication by the beneficiary of such Letter of Credit of the proceeds of
any drawing honored under such Letter of Credit, or (viii) for any
consequences arising from actions or omissions taken or omitted in good faith
or from causes beyond the control of the Issuing Lender or the other Lenders; provided,
however, that nothing in this sentence shall relieve the Issuing Lender
of liability for its own gross negligence or willful misconduct (as determined
by a court of competent jurisdiction in a final and unappealable decision).

 

3.8           Obligations Absolute.  The obligations of the Borrower to reimburse
the Issuing Lender (in Dollars) for drawings honored under a Letter of Credit
issued by it and the obligations of the Revolving Credit Lenders under
Section 3.6 shall be unconditional and irrevocable and shall be performed
strictly in accordance with the terms of this Credit Agreement under all
circumstances including, without limitation, the following circumstances:

 

(a)           any lack of validity
or enforceability of any Letter of Credit;

 

(b)           the existence of any
claim, set-off, defense or other right which the Borrower or any Affiliate of
the Borrower may have at any time against a beneficiary or any

 

75

 

transferee of any Letter of Credit (or any
Persons or entities for whom any such beneficiary or transferee may be acting),
the Issuing Lender, any Lender or any other Person, whether in connection with
this Credit Agreement, the transactions contemplated herein or any unrelated
transaction (other than the defense that the amount owed has already been paid
in accordance with the terms of this Credit Agreement); provided, however,
that nothing contained herein shall preclude the Borrower from asserting any
such claim, defense or counterclaim in a separate judicial proceeding or by
compulsory counterclaim;

 

(c)           any draft, demand,
certificate or any other documents presented under any 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 Credit Documents;

 

(e)           payment by the
Issuing Lender under any Letter of Credit against presentation of a demand,
draft or certificate or other document which does not comply with the terms of
such Letter of Credit;

 

(f)            failure of any
drawing under a Letter of Credit or any non-application or misapplication by
the beneficiary of the proceeds of any drawing; or

 

(g)           the fact that a
Default or Event of Default shall have occurred and be continuing;

 

provided, however, that the Borrower
shall have no obligation to reimburse the Issuing Lender and the Lenders shall
have no obligation under Section 3.6 in the event of the Issuing Lender’s
willful misconduct or gross negligence (as determined by a court of competent
jurisdiction in a final and unappealable decision) in determining whether
documents presented under the Letter of Credit comply with the terms of such
Letter of Credit or with respect to any other express obligation the Issuing
Lender may have under this Credit Agreement in making any payment pursuant to
any Letter of Credit.

 

ARTICLE 4

 

Interest, Fees and Expenses

 

4.1           Interest on Eurodollar Rate Loans.  Subject to the provisions of Section 4.4
hereof, interest on Eurodollar Rate Loans shall be payable in arrears
(i) on the last day of each Interest Period with respect to such
Eurodollar Rate Loans (and, in the case of any Interest Period in excess of
three months, on each date which occurs at three month intervals after the
first day of the respective Interest Period), (ii) at the date of any
Conversion thereof (or portion thereof) to a Base Rate Loan, (iii) upon
any prepayment, except pursuant to Section 2.6(d), (on the amount prepaid)
and (iv) at maturity (whether by acceleration or otherwise) and, after
such maturity, on demand, in each case at an interest rate per  annum
equal during each Interest Period for such Eurodollar Rate Loan to the
Eurodollar Rate in effect for such Interest Period plus the relevant Applicable
Margin.  The Administrative Agent upon
determining the Eurodollar Rate for any Interest Period shall promptly notify
the Borrower and the Lenders thereof. 
Each

 

76

 

determination by the
Administrative Agent of an interest rate hereunder shall be conclusive and
binding for all purposes, absent manifest error.

 

4.2           Interest on Base Rate Loans.  Subject to the provisions of Section 4.4
hereof, interest on Base Rate Loans shall be payable quarterly in arrears
(i) on the last Business Day of each calendar quarter, (ii) upon any
prepayment, except pursuant to Section 2.6(d), (on the amount prepaid) and
(iii) at maturity (whether by acceleration or otherwise) and, after such
maturity, on demand, in each case at an interest rate per  annum
equal to the Base Rate plus the relevant Applicable Margin.  Each determination by the Administrative
Agent of an interest rate hereunder shall be conclusive and binding for all
purposes, absent manifest error.

 

4.3           Notice of Continuation and Notice
of Conversion.  (a)  With
respect to any Borrowing consisting of Eurodollar Rate Loans, the Borrower may,
subject to the provisions of Section 4.3(c) and the condition that no
Default or Event of Default then exists, elect to maintain such Borrowing or
any portion thereof equal to at least $1,000,000 as Eurodollar Rate Loans by
selecting a new Interest Period for such Borrowing (or portion thereof), which
new Interest Period shall commence on the last day of the immediately preceding
Interest Period.  Each selection of a new
Interest Period (a “Continuation”) shall be made by notice given by the
Borrower to the Administrative Agent not later than 12:00 Noon New York
City time on the third Business Day prior to the date of any such Continuation.  Such notice (a “Notice of Continuation”)
shall be by telephone, telecopy, telex, facsimile or cable, confirmed
immediately in writing if by telephone, in substantially the form of Exhibit
B-3, which shall be completed in such manner as is necessary to comply with all
limitations on the Loans outstanding hereunder. 
If the Borrower shall fail to, or does not have the right to, select a
new Interest Period for any Borrowing consisting of Eurodollar Rate Loans in
accordance with this Section 4.3(a), such Loans will automatically, on the
last day of the then existing Interest Period therefor, Convert into Base Rate
Loans.

 

(b)           The Borrower may on
any Business Day, upon notice (each such notice, a “Notice of Conversion”)
given to the Administrative Agent, and subject to the provisions of
Section 4.3(c) and the condition that no Default or Event of Default then
exists, Convert the entire amount of or a portion of any Loans of one Type into
a Borrowing of such Loans of the other Type; provided, however,
(i) that any Conversion of any Eurodollar Rate Loans into Base Rate Loans
shall only be made on the last day of an Interest Period for such Eurodollar
Rate Loans and (ii) prior to the Syndication Date, Base Rate Loans
Converted into Eurodollar Loans shall be subject to the provisions of
Section 2.3(a)(v).  Each such Notice
of Conversion shall be given not later than 12:00 Noon New York City time
on the Business Day prior to the date of any proposed Conversion into Base Rate
Loans and on the third Business Day prior to the date of any proposed
Conversion into Eurodollar Rate Loans (it being understood and agreed that any
Notice of Conversion with respect to a proposed Conversion into Eurodollar
Loans on or after the Effective Date may be given by the Borrower to the
Administrative Agent prior to the Effective Date (subject to the preceding
provisions of this Section 4.3(b)). 
Subject to the restrictions specified above, each Notice of Conversion
shall be by telephone, telecopy, telex, facsimile or cable, confirmed
immediately in writing if by telephone, in substantially the form of Exhibit
B-4.  Each Conversion of Eurodollar Rate
Loans of any Tranche into Base Rate Loans of such Tranche shall be in an
aggregate amount for all applicable Lenders of not less than $250,000.  Each Conversion of Base Rate Loans of any
Tranche into Eurodollar Rate Loans of

 

77

 

such Tranche shall be in an aggregate amount
for all applicable Lenders of not less than $1,000,000.

 

(c)           Notwithstanding
anything contained in Section 2.3 or Sections 4.3(a) and (b) above to
the contrary:

 

(i)            if, on or prior to
the first day of any Interest Period, the Administrative Agent is unable to
determine the Eurodollar Rate for Eurodollar Rate Loans comprising any
requested Borrowing, Continuation or Conversion, the right of the Borrower to
select or maintain Eurodollar Rate Loans for such Borrowing or any subsequent
Borrowing shall be suspended until the Administrative Agent shall notify the
Borrower and the Lenders that the circumstances causing such suspension no
longer exist, and each Loan comprising such Borrowing shall be made as, or
Converted into, a Base Rate Loan; provided that, promptly after the
Administrative Agent reasonably determines that the circumstances giving rise
to such suspension no longer exist, the Administrative Agent shall notify the
Borrower and the Lenders, and the obligation of the Lenders to make, Convert
and Continue Eurodollar Rate Loans shall be reinstated;

 

(ii)           if the Required
Lenders shall, at least one Business Day before the date of any requested
Borrowing, Continuation or Conversion, notify the Administrative Agent that the
Eurodollar Rate for Loans comprising such Borrowing will not adequately reflect
the cost to such Lenders of making or funding their respective Loans for such
Borrowing, the right of the Borrower to select Eurodollar Rate Loans for such
Borrowing shall be suspended until the Administrative Agent shall notify the
Borrower and the Lenders that the circumstances causing such suspension no
longer exist, and each Loan comprising such Borrowing shall be made as, or
Converted into, a Base Rate Loan; provided that, promptly after the
Administrative Agent and the Required Lenders reasonably determine that the circumstances
giving rise to such suspension no longer exist, the Administrative Agent shall
notify the Borrower and the Lenders, and the obligation of the Lenders to make,
Convert and Continue Eurodollar Rate Loans shall be reinstated; and

 

(iii)          there shall not be
at any one time more than twelve Interest Periods in effect with respect to
Eurodollar Rate Loans.

 

(d)           Each Notice of
Continuation and Notice of Conversion shall be irrevocable by and binding on
the Borrower.  In the case of any
Borrowing, Continuation or Conversion that the related Notice of Borrowing,
Notice of Continuation or Notice of Conversion specifies is to be comprised of
Eurodollar Rate Loans, the Borrower shall indemnify each Lender against any
loss, cost or expense incurred by such Lender as a result of any failure to
fulfill, on or before the date for such Borrowing, Continuation or Conversion
specified in such Notice of Borrowing, Notice of Continuation or Notice of
Conversion, the applicable conditions set forth in Article 5, including,
without limitation, any loss (excluding loss of anticipated profits), cost or
expense incurred by reason of the liquidation or re-employment of deposits or
other funds acquired by such Lender to fund the Eurodollar Rate Loan to be made
by such Lender as part of such Borrowing, Continuation or Conversion.

 

78

 

4.4           Interest After Default.  Interest on any amount of matured principal
of the Loans, and interest on the amount of principal of the Loans outstanding
as of the date a Default or an Event of Default occurs, and at all times
thereafter until the earlier of the date upon which (i) all Obligations
have been paid and satisfied in full or (ii) such Default or Event of
Default shall have been cured or waived, shall be payable on demand at a rate
equal to 2% in excess of the rate then borne by such Loans, or, if higher, the
Base Rate in effect from time to time plus the sum of (x) the Applicable
Margin for Base Rate Loans then in effect and (y) 2%.

 

4.5           Reimbursement of Expenses.  (a)  From and after the Effective
Date, the Borrower shall promptly reimburse each of the Administrative Agent
and the Collateral Agent for all Expenses of such Agent as the same are paid or
incurred by such Agent and upon receipt of invoices therefor and, if requested
by the Borrower, such reasonable backup materials and information (other than
backup materials and information relating to the calculation of breakage costs)
as the Borrower shall reasonably request.

 

(b)           If any payment of
principal of, or any Conversion of, any Eurodollar Rate Loan is made other than
on the last day of an Interest Period applicable thereto for any reason or the
day the Borrower has notified the Administrative Agent such payment or
Conversions shall occur, the Borrower shall, upon demand by any Lender (with a
copy of such demand to the Administrative Agent), pay to the Administrative
Agent for the account of such Lender any amounts required to compensate such
Lender for any additional losses, costs or expenses which it may reasonably
incur as a result of such payment, including, without limitation, any loss
(excluding loss of anticipated profits), cost or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by any
Lender to fund or maintain such Eurodollar Rate Loan.

 

4.6           Unused Line Fee.  The Borrower shall pay to the Administrative
Agent for the benefit of each of the Lenders (other than a Defaulting Lender
for so long as such Lender is a Defaulting Lender) a non-refundable fee (the “Unused
Line Fee”) at a per  annum rate equal to the Applicable Unused
Line Fee Percentage of the daily unused portion of such Lender’s Revolving
Credit Commitment, which Unused Line Fee shall (i) accrue from the
Effective Date until the Maturity Date or any earlier date on which the Total
Revolving Credit Commitments are terminated and (ii) be due and payable
quarterly in arrears on the last Business Day of each calendar quarter and on
the Maturity Date or any earlier date on which the Total Revolving Credit
Commitments are terminated.

 

4.7           Letter of Credit Fees.  (a)  The Administrative Agent shall
be entitled to charge to the account of the Borrower (i) for the ratable
benefit of the Revolving Credit Lenders in accordance with their respective
Revolving Credit Proportionate Shares, a fee (the “Letter of Credit Fee”),
in an amount equal to the Applicable Margin then in effect for Revolving Loans
maintained as Eurodollar Rate Loans per  annum of the daily amount
of Undrawn Letter of Credit Outstandings during the immediately preceding
month, due and payable monthly in arrears on the last Business Day of each
calendar month, and on the Maturity Date or any earlier date on or after the
termination of the Total Revolving Credit Commitments when no Letters of Credit
are outstanding and (ii) as and when incurred by the Administrative Agent
or any Lender, any administrative charges, fees, costs and expenses charged to
the Administrative Agent or any Lender for the Borrower’s account by the Issuing
Lender (other than any fees charged to the

 

79

 

Administrative Agent or any
Lender which would be duplicative of the Letter of Credit Fee paid to the
Administrative Agent for the benefit of the Lenders) (the “Issuing Lender
Fees”) in connection with the issuance of any Letters of Credit by the
Issuing Lender.  Each determination by
the Administrative Agent of Letter of Credit Fees hereunder shall be conclusive
and binding for all purposes, absent manifest error.  In addition, the Borrower agrees to pay to
the Issuing Lender, for its own account, a facing fee in respect of each Letter
of Credit issued by it (the “Facing Fee”) for the period from and
including the date of issuance of such Letter of Credit to and including the
date of termination or expiration of such Letter of Credit, computed at a rate
per annum equal to 0.25% on the daily amount of Undrawn Letter of Credit
Outstandings, provided that in any event the minimum amount of Facing
Fees payable in any twelve-month period for each Letter of Credit shall be not
less than $500, it being agreed that, on the day of issuance of any Letter of
Credit and on each anniversary thereof prior to the termination or expiration
of such Letter of Credit, if $500 will exceed the amount of Facing Fees that
will accrue with respect to such Letter of Credit for the immediately
succeeding twelve-month period, the full $500 shall be payable on the date of
issuance of such Letter of Credit and on each such anniversary thereof.  Except as otherwise provided in the proviso
to the immediately preceding sentence, accrued Facing Fees shall be due and
payable monthly in arrears on the last Business Day of each calendar month and
on the Maturity Date or any earlier date on or after the termination of the
Total Revolving Credit Commitments when no Letters of Credit are outstanding.

 

(b)           Letter of Credit
Fees payable in respect of Undrawn Letter of Credit Outstandings as of the date
a Default or an Event of Default occurs, and at all times thereafter until the
earlier of the date upon which (i) all Obligations have been paid and satisfied
in full or (ii) such Default or Event of Default shall have been cured or
waived, shall be payable on demand at a rate equal to the rate at which the
Letter of Credit Fees are charged pursuant to Section 4.7(a) above, plus
2% per  annum.

 

4.8           Incremental Revolving Credit
Commitments.  The Borrower may agree
to pay to any Incremental Revolving Lender such up-front fees, and amounts as
contemplated by the last paragraph of Section 2.1, as are specified in the
Incremental Commitment Agreement pursuant to which such Incremental Revolving
Credit Commitment has been provided, with such amounts to be payable at the
times set forth in such Incremental Commitment Agreement.  It is understood that the interest and
regularly accruing fees with respect to the extensions of credit provided
pursuant to any Incremental Revolving Credit Commitment, as well as the
regularly accruing fees with respect to any Revolving Credit Commitment
provided pursuant to any Incremental Commitment Agreements, shall be as
provided in this Credit Agreement.

 

4.9           Other Fees and Expenses.  The Borrower agrees to pay (without
duplication) fees to the Administrative Agent, the Syndication Agent, the
Collateral Agent and the Co-Lead Arrangers (or their respective affiliates as
specified therein) in the amounts and at the times set forth in the Fee Letter.

 

4.10         Authorization to Charge Account.  The Borrower hereby authorizes the
Administrative Agent, subject to prior notice to the Borrower, to charge the
Borrower’s Revolving Loan account with the amount of all Fees, Expenses and
other payments to be paid hereunder, under the Fee Letter and under the other
Credit Documents as and when such

 

80

 

payments become due, provided
that any such Expenses attributable to services provided by third party
accountants, consultants, advisors and other professionals retained by the
Administrative Agent or any of its affiliates shall have been invoiced to the
Borrower or the Administrative Agent or its respective affiliate, with a copy
of said invoice provided to the Borrower. 
The Borrower confirms that any charges which the Administrative Agent
may so make to the Borrower’s Revolving Loan account as herein provided will be
made as an accommodation to the Borrower and solely at the Administrative
Agent’s discretion.

 

4.11         Indemnification in Certain Events.  (a)  If after the Effective Date,
either (i) any change in or in the interpretation of any law or regulation
is introduced, including, without limitation, with respect to reserve
requirements, applicable to any Agent, the Issuing Lender or any of the Lenders
(or, in the case of a Lender which is not a banking institution, any Affiliate
of such Lender funding such Lender (any such Affiliate, a “Funding Affiliate”)),
or (ii) any Agent, the Issuing Lender, or any of the Lenders (or, in the
case of a Lender which is not a banking institution, any Funding Affiliate)
complies with any future guideline or request from any central bank or other
Governmental Authority or (iii) any Agent, the Issuing Lender, or any of
the Lenders (or, in the case of a Lender which is not a banking institution,
any Funding Affiliate) reasonably determines that 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 with the
interpretation or administration thereof has or would have the effect described
below, or any Agent, the Issuing Lender, or any of the Lenders (or, in the case
of a Lender which is not a banking institution, any Funding Affiliate) complies
with any future request or directive regarding capital adequacy (whether or not
having the force of law) of any such authority, central bank or comparable
agency, and in the case of any event set forth in this clause (iii), such
adoption, change or compliance has or would have the direct or indirect effect
of reducing the rate of return on any of such Person’s (or any Funding
Affiliate’s) capital as a consequence of its obligations hereunder to a level
below that which such Person could have achieved but for such adoption, change
or compliance (taking into consideration such Person’s (or any Funding Affiliate’s)
policies with respect to capital adequacy) by an amount deemed by such Person
to be material, and any of the foregoing events described in clauses (i),
(ii) or (iii) increases the cost or reduces the rate of return to any
Agent, the Issuing Lender, or any of the Lenders of (A) (i) with
respect to an event described in clauses (i) and (ii), making or
maintaining its Eurodollar Rate Loans, and (ii) with respect to an event
described in clause (iii), funding or maintaining its Commitment or Loans
or (B) issuing, making or maintaining any Letter of Credit or of
purchasing or maintaining any participation therein, or reduces the amount
receivable in respect thereof by any Agent, the Issuing Lender or any Lender,
then the Borrower shall within 15 days after demand by the Administrative
Agent, pay to the Administrative Agent, for the account of each applicable
Agent or Lender or the Issuing Lender, as the case may be, additional amounts
sufficient to indemnify the applicable Agent, the Lenders or the Issuing Lender
against such increase in cost or reduction in amount receivable allocable to
such Agent’s, such Lenders’ or the Issuing Lender’s, as the case may be,
funding or maintaining its Commitment or Loans or issuing, making or
maintaining any Letter of Credit or purchasing or maintaining any participation
therein.  A certificate as to the amount
of such increased cost and setting forth in reasonable detail the calculation
thereof shall be submitted to the Borrower by the applicable Agent or the
applicable Lender or the Issuing Lender, as the case may be, and shall be
conclusive absent manifest error.

 

81

 

(b)           Each Lender, the
Issuing Lender or each Agent will notify the Borrower and the Administrative
Agent of any event occurring after the Effective Date which will entitle such
Lender, the Issuing Lender or such Agent to payment pursuant to
Section 4.11(a) as promptly as practicable after it obtains knowledge
thereof, specifying the event giving rise to such claim and setting out in
reasonable detail an estimate of the basis and computation of such claim.  Upon receipt of such notice, the Borrower
shall compensate such Lender, the Issuing Lender or Agent in accordance with
Section 4.11(a) from the date such costs are incurred (including, without
limitation, where such costs are retroactively applied); provided, however,
that the Borrower shall not be required to compensate a Lender, the Issuing
Lender or Agent for costs incurred earlier than 90 days prior to the date of
the notice required to be delivered to the Borrower pursuant to this
Section 4.11(b).

 

4.12         Calculations.  All calculations of (i) interest
hereunder and (ii) Fees, including, without limitation, Unused Line Fees
and Letter of Credit Fees, shall be made by the Administrative Agent on the
basis of a year of 360 days, or, if such computation would cause the interest
and Fees chargeable hereunder to exceed the Highest Lawful Rate, 365/366 days,
in each case for the actual number of days elapsed (including the first day but
excluding the last day) occurring in the period for which such interest or Fees
are payable.  Each determination by the
Administrative Agent of an interest rate or payment hereunder shall be conclusive
and binding for all purposes, absent manifest error.

 

4.13         Change of Applicable Lending Office.  Each Lender agrees that on the occurrence of
any event giving rise to the operation of Sections 2.9, 4.3(c) or 4.11
with respect to such Lender, it will, if requested by the Borrower, use reasonable
efforts (subject to overall policy considerations of such Lender) to designate
another lending office for any Loans or Letters of Credit affected by such
event, provided that such designation is made on such terms that such
Lender and its 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 such Sections. 
Nothing in this Section 4.13 shall affect or postpone any of the
obligations of the Borrower or the right of any Lender provided in
Sections 2.9, 4.3 or 4.11.

 

ARTICLE 5

 

Conditions Precedent

 

5.1           Conditions to Initial Loans and
Letters of Credit.  The obligation of
each Lender to make Loans hereunder and the obligation of the Issuing Lender to
issue Letters of Credit, in each case on the Initial Borrowing Date, is subject
to the satisfaction of, or waiver of, immediately prior to or concurrently with
the making of such Loans or the issuance of such Letters of Credit on the
Initial Borrowing Date, the following conditions precedent:

 

(a)           Execution of
Agreement; Notes.  On or prior to the
Initial Borrowing Date, the Effective Date shall have occurred and there shall
have been delivered to the Administrative Agent for the account of each Lender
that has requested same the appropriate Revolving Note and/or Term Note in the
amount, maturity and as otherwise provided herein.

 

82

 

(b)           Officer’s
Certificate.  On the Initial
Borrowing Date, the Administrative Agent shall have received a certificate from
the Borrower dated such date signed by an appropriate officer of the Borrower
stating that all of the applicable conditions set forth in
Section 5.1(d)(C), (h), (i), (j), (k), (l) and (w) and Section 5.2
exist as of such date, provided the certificate shall not be required to
certify as to the acceptability of any items to the Administrative Agent and/or
the Required Lenders or as to whether the Administrative Agent and/or the
Required Lenders are satisfied with any of the matters described in said
Sections.

 

(c)           Opinions of
Counsel.  On the Initial Borrowing
Date, the Administrative Agent shall have received opinions, addressed to each
Agent and each of the Lenders and dated the Initial Borrowing Date,
(i) from Paul, Weiss, Rifkind, Wharton & Garrison LLP, special
counsel to Holdings and the Borrower, which opinion shall cover the matters
contained in Exhibit E-1 and such other matters incident to the transactions
contemplated herein as the Administrative Agent may reasonably request,
(ii) from Davies Ward Phillips & Vineberg LLP, Canadian counsel
to WSC, which opinion shall cover the matters contained in Exhibit E-2 and such
other matters incident to the transactions contemplated herein as the Administrative
Agent may reasonably request and (iii) from local counsel reasonably
satisfactory to the Administrative Agent, opinions each of which shall be in
form and substance reasonably satisfactory to the Administrative Agent and
shall cover the perfection of the security interest granted pursuant to the
Security Agreements and such other matters incident to the transaction
contemplated herein as the Administrative Agent may reasonably request.

 

(d)           Security
Agreements.  (i)  On the
Initial Borrowing Date, each U.S. Credit Party shall have duly authorized,
executed and delivered the U.S. Security Agreement in the form of Exhibit F-1
(as amended, modified or supplemented from time to time in accordance with the
terms hereof and thereof, the “U.S. Security Agreement”) together with:

 

(A)          proper
Financing Statements (Form UCC-1 or the equivalent) fully executed for filing
under the UCC or other appropriate filing offices of each jurisdiction as may
be necessary or, in the reasonable opinion of the Collateral Agent, desirable,
to perfect the security interests purported to be created by the U.S. Security
Agreement;

 

(B)           certified
copies of Requests for Information or Copies (Form UCC-11), or equivalent
reports as of a recent date, listing all effective financing statements that
name Holdings, the Borrower or any of their respective Subsidiaries as debtor
and that are filed in the jurisdictions referred to in clause (A) above
and in such other jurisdictions in which Collateral is located on the Initial
Borrowing Date or which may result in the existence of perfected security
interests against Holdings, the Borrower or any of their respective
Subsidiaries, together with copies of such other financing statements that name
Holdings, the Borrower or any of their respective Subsidiaries as debtor (none
of which shall cover any of the Collateral except (x) to the extent
evidencing Permitted Liens or (y) those in respect of which the Collateral
Agent shall have received termination statements (Form UCC-3) or such other
termination statements as shall be required by local law fully executed for
filing);

 

(C)           evidence
that, with respect to all Certificated Units of the Borrower and its
Subsidiaries on the Initial Borrowing Date, a notation of the security interest
of DBTCA or BTCC, as a Collateral Agent, has been made on the certificate of
title with respect thereto (or 

 

83

 

that the
Borrower has deposited (or will substantially currently with the Initial
Borrowing Date deposit) an application for such notation with the applicable
Governmental Authority, together with any necessary fee in connection
therewith) which notation shall, under applicable state law, perfect the
Collateral Agent’s security interest therein (except to the extent the UCC is
controlling, in which case the Financing Statements filed pursuant to preceding
clause (A) shall perfect such security interests);

 

(D)          subject
to Section 11.19, evidence of the completion of all other recordings and
filings of, or with respect to, the U.S. Security Agreement as may be necessary
or, in the opinion of the Collateral Agent, desirable, to perfect the security
interests intended to be created by the U.S. Security Agreement; and

 

(E)           subject
to Section 11.19, evidence that all other actions necessary or, in the
reasonable opinion of the Collateral Agent, desirable to perfect and protect
the security interests purported to be created by the U.S. Security Agreement
have been taken, and the U.S. Security Agreement shall be in full force and effect.

 

(ii)           On the Initial
Borrowing Date, WSC shall have duly authorized, executed and delivered a
Canadian Security Agreement together with:

 

(A)          evidence
of registration of such Canadian Security Agreement in such jurisdictions as
may be necessary or, in the opinion of the Collateral Agent, desirable to
perfect and protect the security interest intended to be created by such
Canadian Security Agreement; and

 

(B)           all
discharges, subordination agreements, waivers and confirmations as may be
necessary or, in the opinion of the Collateral Agent, desirable to ensure that
all obligations purported to be secured by such Canadian Security Agreement are
secured by first priority liens on the property and assets of WSC with such
exceptions as are permitted herein.

 

(e)           Collateral Access
Agreements.  To the extent available
on the Initial Borrowing Date, the Administrative Agent shall have received
Collateral Access Agreements substantially in the form of Exhibit G (as
modified, amended, or supplemented from time to time in accordance with the
terms hereof and thereof, the “Collateral Access Agreements”) with
respect to Rental Equipment locations as may be requested by the Administrative
Agent, which Collateral Access Agreements shall be in full force and effect; provided
that, notwithstanding the foregoing, the Borrower, in obtaining the Collateral
Access Agreements required under this Section 5.1(e), shall not be
obligated to make significant payments to landlords or alter the respective
lease terms with respect to any Rental Equipment locations in any way which is
materially adverse to the Borrower.

 

(f)            Collection Bank
Agreements; Concentration Account Agreement.  On the Initial Borrowing Date, the
Administrative Agent shall have received fully executed copies of the
Collection Bank Agreement and the Concentration Account Agreement, each of
which shall be in full force and effect.

 

(g)           Borrowing Base
Certificate.  On the Initial
Borrowing Date, the Borrower shall have delivered to the Administrative Agent a
Borrowing Base Certificate meeting the 

 

84

 

requirements of Section 7.1(e) and which
Borrowing Base Certificate shall indicate (in a manner satisfactory to the
Administrative Agent) that on such date and after giving effect to all Credit
Events on such date and after giving effect to the effectiveness of the
assignment and transfers contemplated by the Bank Assignment Agreement, the
Borrower shall be able to incur additional Revolving Outstandings of
$100,000,000 or more in compliance with the restrictions of
Section 2.2(a).

 

(h)           Indebtedness.  On the Initial Borrowing Date, Holdings, the
Borrower and their respective Subsidiaries shall have no outstanding
Indebtedness except (i) pursuant to this Credit Agreement, (ii) the
Senior Unsecured Notes, (iii) the Senior Secured Notes, and
(iv) other Existing Indebtedness, if any, as shall be permitted to remain
outstanding by the Administrative Agent and which is listed on Schedule III
hereto.  With respect to each issue of Indebtedness
which is to remain outstanding as described in clauses (i) through (iv) of
the immediately preceding sentence there shall exist no default or event of
default, change of control or similar event which would require any offers to
repurchase same, and no uncured breach thereof.

 

(i)            Approvals.  All necessary material governmental (domestic
and foreign) and third party approvals and/or consents in connection with the
transactions contemplated hereby shall have been obtained and remain in full
force and effect.  There shall not have
been any statute, rule, regulation, injunction or order applicable to the
transaction as contemplated hereby, or the financing thereof, promulgated,
enacted, entered or enforced by any state or federal government or governmental
or regulatory authority or agency or by any federal or state court or tribunal,
nor shall there be pending any action or proceeding by or before any such
authority, court or tribunal, involving a substantial likelihood of an order,
that would prohibit, restrict, delay or otherwise materially adversely affect
the transactions contemplated hereby.

 

(j)            Material Adverse
Change, etc.  Since March 31,
2005, nothing shall have occurred (and neither the Administrative Agent nor the
Lenders shall have become aware of any facts, conditions or other information
not previously known to them) which has had or could reasonably be expected to
have a Material Adverse Effect.

 

(k)           Litigation.  On the Initial Borrowing Date, there shall be
no actions, suits, investigations or proceedings pending or threatened
(a) with respect to this Credit Agreement, any other Credit Document or
any document executed in connection therewith, or (b) which the
Administrative Agent shall determine has had or could reasonably be expected to
have a Material Adverse Effect.

 

(l)            Corporate
Proceedings.  (i)  On the
Initial Borrowing Date, the Administrative Agent shall have received
certificates from each Credit Party dated the Effective Date and in the form of
Exhibit H with appropriate insertions, together with copies of the Governing
Documents of such Credit Party and the resolutions of such Credit Party
referred to in such certificate, and each of the foregoing shall be in form and
substance reasonably acceptable to the Administrative Agent.

 

(ii)           On the Initial
Borrowing Date, all corporate and legal proceedings and all instruments and
agreements in connection with the transactions contemplated by this Credit
Agreement shall be reasonably satisfactory in form and substance to the
Administrative Agent,

 

85

 

and the Administrative Agent shall have
received all information and copies of all certificates, documents and papers,
including good standing certificates and any other records of corporate
proceedings and governmental approvals, if any, which the Administrative Agent
reasonably may have requested in connection therewith, such documents and
papers, where appropriate, to be certified by proper corporate or governmental
authorities.

 

(m)          Plans; Collective
Bargaining Agreements; Existing Indebtedness Agreements; Shareholders’
Agreements; Management Agreements; Employment Agreements; Tax Sharing
Agreements; Material Contracts.  On
or prior to the Initial Borrowing Date, there shall have been delivered or made
available to the Administrative Agent true and correct copies, of the following
documents, in each case as same will be in effect on the Initial Borrowing
Date:

 

(i)            all Plans (and for
each Plan that is required to file an annual report on Internal Revenue Service
Form 5500-series, a copy of the most recent such report (including, to the
extent required, the related financial and actuarial statements and opinions,
certifications, and schedules), and for each Plan that is a “single-employer plan”,
as defined in Section 4001(a)(15) of ERISA, the most recently prepared
actuarial valuation therefor) and, other than Employment Agreements provided in
Section 5.1(m)(vi), any other material agreements, plans or arrangements,
with or for the benefit of current or former employees of Holdings, the
Borrower or any of their respective Subsidiaries or any ERISA Affiliate
(provided that the foregoing shall apply in the case of any “multiemployer
plan”, as defined in 4001(a)(3) of ERISA, only to the extent that any document
described therein is in the possession of Holdings, the Borrower or any of
their respective Subsidiaries or any ERISA Affiliate or reasonably available
thereto from the sponsor or trustee of any such plan);

 

(ii)           all collective
bargaining agreements or any other similar agreement or arrangements covering
the employees of Holdings, the Borrower or any of their respective Subsidiaries
(collectively, the “Collective Bargaining Agreements”);

 

(iii)          each agreement
evidencing or relating to Existing Indebtedness in an aggregate amount in
excess of $1,000,000 (collectively, the “Existing Indebtedness Agreements”);

 

(iv)          all agreements
entered into by Holdings, the Borrower or any of their respective Subsidiaries
(other than the Unrestricted Subsidiaries) (x) governing the terms and
relative rights of such entity’s capital stock or other equity interests or
(y) with any shareholders or other equity holders relating to any such
entity with respect to such entity’s capital stock or other equity interests
(collectively, the “Shareholders’ Agreements”);

 

(v)           any material
agreements (or the forms thereof) with members of, or with respect to, the
management of Holdings, the Borrower or any of their respective Subsidiaries
(collectively, the “Management Agreements”);

 

86

 

(vi)          any employment
agreements (or the forms thereof together with a list of employees who are
parties to such agreements) entered into by Holdings, the Borrower or any of
their respective Subsidiaries (collectively, the “Employment Agreements”);

 

(vii)         any tax sharing, tax
allocation and other similar agreement entered into by Holdings, the Borrower
or any of their respective Subsidiaries (collectively, the “Tax Sharing
Agreements”);

 

(viii)        any lease agreement
between the Borrower or one or more of its Subsidiaries, on the one hand, and
the Unit Subsidiary, on the other hand, pursuant to which Non-Qualified Units
from time to time held by the Unit Subsidiary are leased to the Borrower and
its Subsidiaries (collectively, the “Master Lease Agreements”); and

 

(ix)           any other Material
Contracts;

 

all of which documents relating to the Plans, Foreign Pension Plans,
Collective Bargaining Agreements, Existing Indebtedness Agreements,
Shareholders’ Agreements, Management Agreements, Employment Agreements, Tax
Sharing Agreements, Master Lease Agreements and Material Contracts shall be in
the form and substance reasonably satisfactory to the Administrative Agent and
shall, except as contemplated by the Credit Documents, be in full force and
effect on the Initial Borrowing Date.

 

(n)           Solvency
Certificate.  On or prior to the
Initial Borrowing Date, the Lenders shall have received a solvency certificate
from the chief financial officer of the Borrower in the form of Exhibit I.

 

(o)           Financial
Statements; Projections; etc.  On or
prior to the Initial Borrowing Date, the Lenders shall have received
(i) true and correct copies of the Financial Statements referred to in
Section 6.10(b), which Financial Statements shall be in form and substance
reasonably satisfactory to the Administrative Agent and (ii) detailed
annual five-year financial projections (setting forth yearly projections for
each fiscal year during such five-year period) (including details as to rental
rates, utilization rates, fleet capital expenditures and corresponding balance
sheets, statements of operations and cash flow) of Holdings and its
Subsidiaries in form and substance reasonably satisfactory to the
Administrative Agent (together with those projections heretofore provided to
the Lenders, the “Projections”).

 

(p)           Insurance
Policies.  On or prior to the Initial
Borrowing Date, the Administrative Agent shall have received (i) evidence
of insurance coverage (including, without limitation, certificates of
insurance) for the business and properties of Holdings, the Borrower and their
respective Subsidiaries showing compliance with the requirements of
Section 7.10 and (ii) endorsements, (x) naming the Collateral
Agent as loss payee with respect to all casualty coverages and containing other
customary loss payable provisions and (y) naming the Collateral Agent as
additional insured for all general liability coverages, all in form and
substance reasonably satisfactory to the Administrative Agent.

 

(q)           Payment of Fees.  On the Initial Borrowing Date, all costs,
fees and expenses, and all other compensation contemplated by this Credit
Agreement or the Fee Letter due to the Administrative Agent, the Syndication
Agent, the Collateral Agent, the Co-Lead 

 

87

 

Arrangers or the Lenders (including, without
limitation, reasonable legal fees and expenses) shall have been paid to the
extent invoiced and due.

 

(r)            Collateral
Examination.  On or prior to the
Initial Borrowing Date, the Lenders shall have received a collateral
examination report concerning all Rental Equipment of Holdings, the Borrower
and their respective Subsidiaries, which collateral examination shall be
prepared by a third party, and shall be in form and substance, reasonably
satisfactory to the Administrative Agent.

 

(s)           Subsidiaries
Guaranty.  (i)  On the
Initial Borrowing Date, each U.S. Subsidiary Guarantor shall have duly
authorized, executed and delivered a U.S. Subsidiaries Guaranty in the form of
Exhibit J-1 (as modified, amended or supplemented from time to time in
accordance with the terms thereof and hereof, the “U.S. Subsidiaries
Guaranty”) and the U.S. Subsidiaries Guaranty shall be in full force and
effect.

 

(ii)           On the Initial
Borrowing Date, WSC shall have duly authorized, executed and delivered a
Canadian Subsidiaries Guaranty and such Canadian Subsidiaries Guaranty shall be
in full force and effect.

 

(t)            Pledge
Agreements.  On the Initial Borrowing
Date, each U.S. Credit Party shall have duly authorized, executed and delivered
a U.S. Pledge Agreement in the form of Exhibit K-1 (as modified, amended or
supplemented from time to time in accordance with the terms thereof and hereof,
the “U.S. Pledge Agreement”), and shall have delivered to the Collateral
Agent, as Pledgee thereunder, all of the U.S. Pledge Agreement Collateral
referred to therein and then owned by such Credit Party, (x) endorsed in
blank in the case of promissory notes constituting U.S. Pledge Agreement
Collateral and (y) together with executed and undated endorsements for
transfer in the case of equity interests constituting certificated U.S. Pledge
Agreement Collateral, along with evidence that all other actions necessary or,
in the reasonable opinion of the Collateral Agent, desirable, to perfect the
security interests purported to be created by the U.S. Pledge Agreement have
been taken, and the U.S. Pledge Agreement shall be in full force and effect.

 

(u)           Mortgages.  On or prior to the Initial Borrowing Date (or
such later date to which the Collateral Agent shall agree), the Collateral
Agent shall have received:

 

(i)            fully executed
counterparts of Mortgages (or assignments and amendments satisfactory to the
Collateral Agent to the Mortgages granted pursuant to the Existing Credit
Agreement), in the form of Exhibit L, which Mortgages shall cover such of the
Real Property owned by the Credit Parties and listed on Part B of Schedule IV,
together with evidence that counterparts of each of the Mortgages (and the
aforesaid assignments and amendments, if any) have been delivered to the title
company insuring the Lien of the Mortgages for recording in all places to the
extent necessary or desirable, in the judgment of the Collateral Agent, to
effectively create a valid and enforceable first priority mortgage lien
(subject to Permitted Encumbrances relating thereto) on the Mortgaged
Properties in favor of the Collateral Agent (or such other trustee as may be
required or desired under local law) for the benefit of the Secured Creditors;
and

 

88

 

(ii)           Mortgage Policies
on the Mortgages for the Mortgaged Properties issued by a title insurance
company reasonably satisfactory to the Collateral Agent and in amounts
satisfactory to the Collateral Agent and assuring the Collateral Agent that
each of the Mortgages on such Mortgaged Properties is a valid and enforceable
first priority mortgage lien on such Mortgaged Properties, free and clear of
all defects and encumbrances except Permitted Encumbrances, and such Mortgage
Policies shall otherwise be in form and substance reasonably satisfactory to
the Collateral Agent and shall include, as appropriate, an endorsement for
future advances under this Credit Agreement and the Notes and for any other
matter that the Collateral Agent in its discretion may reasonably request,
shall not include an exception for mechanics’ liens, and shall provide for
affirmative insurance and such reinsurance as the Collateral Agent in its
discretion may reasonably request.

 

(v)           Custodian
Agreement.  On the Initial Borrowing
Date, each Credit Party and Maynard Becker and Donna Finnerty, as Custodians
shall have executed and delivered a Custodian Agreement in the form of Exhibit
M (as modified, amended or supplemented from time to time in accordance with
the terms thereof and hereof, the “Custodian Agreement”), and the
Custodian Agreement shall be in full force and effect.

 

(w)          Existing Credit
Agreement.  (i)  On the
Initial Borrowing Date, the Administrative Agent shall have received fully
executed counterparts to the Bank Assignment Agreement in the form of Exhibit
S, and all conditions to the effectiveness of the assignments and transfers
contemplated thereby shall have been satisfied.

 

(ii)           On the Initial
Borrowing Date, all transactions contemplated under the Bank Assignment
Agreement shall have been consummated, and all amounts owing under the Existing
Credit Agreement and related documents through and including the Effective Date
shall have been paid in full (other than principal on loans and the Existing
Letters of Credit).

 

(iii)          On or prior to the
Initial Borrowing Date, the Administrative Agent shall have received fully
executed counterparts to an acknowledgment and agreement to the Intercreditor
Agreement in the form of Exhibit T, acknowledging, among other things, the
Collateral Agent as the “Collateral Agent” under and as defined in the
Intercreditor Agreement, and all conditions to the effectiveness of such
agreement shall have been satisfied.

 

5.2           Conditions to All Credit Events.  On the date of the making of any Loan or the
issuance of any Letter of Credit, both at the time of making thereof and after
giving effect thereto and to the application of the proceeds therefrom, the
following statements shall be true to the satisfaction of the Administrative
Agent (and each delivery or deemed delivery of each Notice of Borrowing and a
Letter of Credit Request, and the acceptance by the Borrower of the proceeds of
such Loan or the issuance of such Letter of Credit, shall constitute a
representation and warranty by each of Holdings and the Borrower that on the
date of such Loan or issuance of such Letter of Credit at the time of making
thereof and after giving effect thereto and to the application of the proceeds
therefrom, such statements are true):

 

(a)           the representations
and warranties contained in this Credit Agreement and in each other Credit
Document are true and correct in all material respects on and as of the date 

 

89

 

of such Loan or issuance of such Letter of
Credit as though made on and as of such date, except to the extent that such
representations and warranties expressly relate to an earlier date (in which
case such representations and warranties shall have been true and accurate on
and as of such earlier date);

 

(b)           no event has
occurred and is continuing, or would result from such Loan or the issuance of
any Letter of Credit or the application of the proceeds thereof, which would
constitute a Default or an Event of Default;

 

(c)           with respect to the
issuance of any Letter of Credit, none of the events set forth in
Section 3.1 has occurred and is continuing or would result from the
issuance of such Letter of Credit; and

 

(d)           there shall be no
requirement to make a mandatory payment of Revolving Loans pursuant to Section
2.5(d) that has not been satisfied.

 

The acceptance of the benefits of each Credit Event shall constitute a
representation and warranty by each Credit Party to each of the Lenders that
all of the applicable conditions specified above exist as of the date of such
Credit Event.  All of the certificates,
legal opinions and other documents and papers referred to in this
Section 5, unless otherwise specified, shall be delivered to the
Administrative Agent at the location where the closing occurs for the account
of each of the Lenders and, except for the Notes, in sufficient counterparts or
copies for each of the Lenders and shall be in form and substance as specified
herein or otherwise satisfactory to the Administrative Agent.

 

ARTICLE 6

 

Representations and Warranties

 

To induce the Lenders to enter into this Credit Agreement and to make
the Loans and issue and/or participate in the Letters of Credit provided for
herein, each of Holdings and the Borrower makes the following representations,
warranties and agreements, as to itself and as to each of its respective
Subsidiaries (other than the Unrestricted Subsidiaries), all of which shall
survive the execution and delivery of this Credit Agreement, the making of the
Loans and the issuance of the Letters of Credit (with the occurrence of each
Credit Event being deemed to constitute a representation and warranty that the
matters specified in this Article 6 are true and correct in all material
respects on and as of the date of each such Credit Event, unless stated to
relate to a specific earlier date, in which case they will be true and correct
as of such earlier date):

 

6.1           Corporate Status.  Each Credit Party (i) is a duly
organized and validly existing corporation, limited liability company or
partnership, as the case may be, in good standing under the laws of the
jurisdiction of its organization and has the corporate, limited liability
company or partnership power and authority, as the case may be, 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 and is in good standing in all jurisdictions 

 

90

 

where it is required to be so
qualified and where the failure to be so qualified could reasonably be expected
to have a Material Adverse Effect.

 

6.2           Corporate Power and Authority.  Each Credit Party has the corporate, limited
liability company or partnership, as the case may be, power and authority to
execute, deliver and carry out the terms and provisions of the Credit Documents
to which it is a party and has taken all necessary corporate, limited liability
company or partnership, as the case may be, action to authorize the execution,
delivery and performance of the Credit Documents to which it is a party. Each
Credit Party has duly executed and delivered each Credit Document to which it
is a party and each such Credit Document constitutes the legal, valid and
binding obligation of such Credit Party enforceable in accordance with its
terms, except that such enforceability may be limited by (i) applicable
bankruptcy, insolvency, reorganization, moratorium and similar laws of general
application relating to or affecting the rights and remedies of creditors and
general equitable principles (regardless of whether enforcement is sought in
equity or at law) and (ii) federal securities or other laws or regulations
or public policy insofar as they may restrict the enforceability of rights to
indemnification.

 

6.3           No Violation.  Neither the execution, delivery and
performance by any Credit Party of any of the Credit Documents to which it is a
party nor compliance with the terms and provisions thereof, nor the consummation
of any of the transactions contemplated therein (i) will contravene any
applicable provision of any law, statute, rule, regulation, order, writ,
injunction or decree of any court or governmental instrumentality,
(ii) will conflict or be inconsistent with or violate or result in any
breach of any of the terms, covenants, conditions or provisions of, or
constitute a default under, or (other than pursuant to the Collateral
Documents) result in the creation or imposition of (or the obligation to create
or impose) any Lien upon any of the property or assets of such Credit Party or
any of its Subsidiaries pursuant to the terms of any indenture, mortgage, deed
of trust, agreement or other instrument to which such Credit Party or any of
its Subsidiaries is a party or by which it or any of its property or assets are
bound or to which it may be subject or (iii) will violate any provision of
any Governing Document of Holdings, the Borrower or any of their respective
Subsidiaries, except, in the case of clauses (i) and (ii), any
contraventions, conflicts, inconsistencies, breaches and defaults which are not
reasonably likely to adversely affect any Lender or to have a Material Adverse
Effect.  In no event shall any Credit
Event hereunder conflict or be inconsistent with or violate or result in any
breach of any of the terms, covenants, conditions or provisions of, or
constitute a default under, the Senior Unsecured Notes Indenture or the Senior
Secured Notes Indenture.

 

6.4           Litigation.  There are no actions, suits or proceedings
pending or threatened with respect to (i) any Credit Document or
(ii) Holdings, the Borrower or any of their respective Subsidiaries that,
after giving effect to expected insurance proceeds and indemnity payments, are
reasonably likely, either individually or in the aggregate, to have a Material
Adverse Effect.

 

6.5           Use of Proceeds.  (a)  [Intentionally Omitted].

 

(b)           All proceeds of
Revolving Loans shall be utilized by the Borrower (i) to finance, in part,
the repayment of Existing Indebtedness of the Borrower (including the Senior
Unsecured Notes and the Senior Secured Notes) and (ii) for general
corporate purposes 

 

91

 

(including distributions permitted by Section
8.6(h)), Capital Expenditures and working capital of the Borrower and its
Subsidiaries, including acquisitions permitted hereunder.

 

(c)           No part of the
proceeds of any Loan and no Letter of Credit will be used to purchase or carry
any Margin Stock or to extend credit for the purpose of purchasing or carrying
any Margin Stock.  Neither the making of
any Loan nor the use of the proceeds thereof nor the occurrence of any other
Credit Event will violate or be inconsistent with the provisions of Regulations
T, U, or X of the Board of Governors of the Federal Reserve System.

 

6.6           Governmental Approvals.  Except for the filing of the Mortgages and
the filing of the financing statements and for any other filings, registrations
or recordings required under the Collateral Documents (all of which have been
made or will be made as required) and any consents to assignments of any
Government Lease, no order, consent, approval, license, authorization, or
validation of, or filing, recording or registration with, or exemption by, any
foreign or domestic governmental or public body or authority, or any
subdivision thereof, is required to authorize or is required in connection with
(i) the execution, delivery and performance by the Credit Parties of the
Credit Documents or (ii) the legality, validity, binding effect or
enforceability of any Credit Document as against each Credit Party which is a
party thereto.

 

6.7           Investment Company Act.  None of Holdings, the Borrower or any of
their respective Subsidiaries is registered, or required to register, as an
“investment company” or a company “controlled” by an “investment company”,
within the meaning of the Investment Company Act of 1940, as amended.

 

6.8           Public Utility Holding Company Act.  None of Holdings, the Borrower or any of
their respective Subsidiaries is a “holding company”, or a “subsidiary company”
of a “holding company”, or an “affiliate” of a “holding company” or of a
“subsidiary company” of a “holding company”, within the meaning of the Public
Utility Holding Company Act of 1935, as amended.

 

6.9           True and Complete Disclosure.  All factual information (taken as a whole)
heretofore or contemporaneously furnished by or on behalf of Holdings or the
Borrower in writing to any Agent or any Lender for purposes of or in connection
with this Credit Agreement or any other Credit Document or any transaction
contemplated herein or therein does not, and all other such factual information
(taken as a whole) hereafter furnished by or on behalf of Holdings or the
Borrower in writing to any Agent or any Lender will not, as of the date as of
which such information is dated or certified, contain any untrue statement of a
material fact or omit to state any material fact necessary to make such
information (taken as a whole) not misleading as of such time, in each case in
light of the circumstances under which such information was provided, it being
understood and agreed that for purposes of this Section 6.9, such factual
information shall not include the Latest Projections or pro  forma
financial information.

 

6.10         Financial Condition; Financial
Statements.  (a)  On and as
of the Initial Borrowing Date after giving effect to all Indebtedness incurred,
and to be incurred, and Liens created and to be created, and the use of the
proceeds thereof, by each Credit Party in connection with this Credit
Agreement, (x) the sum of the assets, at a fair valuation, of the Borrower
and its Subsidiaries, taken as a whole, will exceed their debts, (y) the
Borrower and its Subsidiaries, 

 

92

 

taken as a whole, will not have
incurred nor intend to, or believe that they will, incur debts beyond their
ability to pay such debts as such debts mature and (z) the Borrower does
not have unreasonably small capital with which to conduct its businesses. For
purposes of this Section 6.10(a), “debt” means any reasonably expected
liability on a claim, and “claim” means (i) 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 (ii) 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.

 

(b)           The (i) audited
consolidated balance sheets of Holdings and its Subsidiaries and of the
Borrower and its Subsidiaries as of, and audited statements of operations,
shareholder’s equity and cash flows for the fiscal year ended,
December 31, 2004 and (ii) unaudited consolidated balance sheets of
Holdings and its Subsidiaries and of the Borrower and its Subsidiaries as of,
and unaudited statements of operations, shareholder’s equity and cash flows for
the fiscal quarter ended, March 31, 2005 furnished to the Administrative
Agent and the Lenders prior to the Initial Borrowing Date, present fairly in
all material respects the financial condition at such dates of such balance
sheets and results of operations for the fiscal periods then ended.  Since March 31, 2005, nothing has
occurred which has had or would be reasonably likely to result in a Material
Adverse Effect.

 

(c)           The Latest
Projections have been prepared by the Borrower in good faith and were based on
assumptions that the Borrower believed, at the time of delivery thereof to the
Administrative Agent, to be reasonable. 
The Borrower believed, at the time of delivery thereof to the
Administrative Agent, that the Latest Projections were reasonable and
attainable, it being recognized by the Agents and the Lenders, however, that
projections as to future events are not to be viewed as facts and that the
actual results during any period or periods covered by such projections may
differ materially from the projected results.

 

6.11         Locations of Offices, Records,
Inventory and Rental Equipment.  The
address of the principal place of business and chief executive office of each
Credit Party as of the Initial Borrowing Date is set forth on Schedule VI.  The books and records of each Credit Party,
and all its chattel paper and records of Accounts and Unit Certificates, are,
as of the Initial Borrowing Date, maintained exclusively at the respective
locations listed on Schedule VI.  As of
the Initial Borrowing Date, there is no jurisdiction (or, with respect to the
Rental Equipment, State) in which any Credit Party has any chattel paper,
records of Account, Rental Equipment (except for Rental Equipment in transit)
or Unit Certificates other than those jurisdictions (or States) identified on
Schedule VI.  Schedule VI also contains a
complete list of the legal names and addresses of each facility or warehouse at
which Rental Equipment is stored as of the Initial Borrowing Date.  None of the receipts received by the Borrower
from any warehouseman states that the goods covered thereby are to be delivered
to bearer or to the order of a named Person other than the Borrower or to a
named Person and such named Person’s assigns.

 

6.12         Security Interests.  Subject to Section 11.19 and any
effective restriction on the assignment of any Government Lease contained
therein (or in any applicable governmental rule or regulation related thereto),
on and after the Initial Borrowing Date, each of the Collateral Documents
create, as security for the Obligations, a valid and enforceable 

 

93

 

perfected security interest in
and Lien on all of the Collateral, superior to and prior to the rights of all
third persons and subject to no other Liens other than Liens permitted by
Section 8.2.  At all times on or
after the Initial Borrowing Date, the respective grantor under each Collateral
Document shall have good and marketable title to all the Collateral subject
thereto free and clear of all Liens other than Permitted Liens.  No filings or recordings are required in
order to perfect the security interests created under any Collateral Document
except for filings or recordings required pursuant to the terms of any such
Collateral Document.

 

6.13         Tax Returns and Payments.  Each of Holdings, the Borrower and each of
their respective Subsidiaries has timely filed or caused to be timely filed
with the appropriate taxing authority, all federal returns and all other
material returns, statements, forms and reports for taxes required to be filed
by or with respect to the income, properties or operations of Holdings, the
Borrower and any of their respective Subsidiaries.  Such returns accurately reflect all liability
for taxes of Holdings, the Borrower and their respective Subsidiaries for the
periods covered thereby.  Each of
Holdings, the Borrower and each of their respective Subsidiaries has paid all
material taxes payable by it other than taxes which are not due, and other than
those contested in good faith by proper proceedings diligently pursued and for
which adequate reserves have been established in accordance with GAAP and, if
any Lien secures any such taxes, which proceedings have the effect of
preventing the forfeiture or sale of the property or asset subject to such
Lien.  Except as set forth on
Schedule VII, there is no material action, suit, proceeding,
investigation, audit or claim now pending or, to the knowledge of Holdings or
the Borrower, threatened by any authority regarding any taxes relating to Holdings,
the Borrower or any of their respective Subsidiaries.  As of the Initial Borrowing Date, none of
Holdings, the Borrower or any of their respective Subsidiaries has entered into
an agreement or waiver or been requested to enter into an agreement or waiver
extending any statute of limitations relating to the payment or collection of
material taxes of Holdings, the Borrower or any of their respective
Subsidiaries, or is aware of any circumstances that would cause the taxable
years or other taxable periods of Holdings, the Borrower or any of their
respective Subsidiaries not to be subject to the normally applicable statute of
limitations with respect to any material taxes.

 

6.14         Compliance with ERISA.  (i)  Schedule VIII identifies each
Plan; each Plan (and each related trust, insurance contract or fund) is in
substantial compliance with its terms and with all applicable laws, including,
without limitation, ERISA and the Code; each Plan (and each related trust, if
any) which is intended to be qualified under Section 401(a) of the Code
has received a determination letter from the Internal Revenue Service to the
effect that it meets the requirements of Sections 401(a) and 501(a) of the
Code, as appropriate; no Reportable Event has occurred; no Plan which is a
Multiemployer Plan is insolvent or in reorganization; no Plan subject to
Title IV of ERISA has an Unfunded Current Liability which, when added to
the aggregate amount of Unfunded Current Liabilities with respect to all other
Plans subject to Title IV of ERISA, exceeds $1,000,000; no Plan which is
subject to Section 412 of the Code or Section 302 of ERISA has an
accumulated funding deficiency, within the meaning of such sections of the Code
or ERISA, or has applied for or received a waiver of an accumulated funding
deficiency or an extension of any amortization period, within the meaning of
Section 412 of the Code or Section 303 or 304 of ERISA; all
contributions required to be made with respect to a Plan subject to Title IV of
ERISA have been timely made; neither Holdings nor any Subsidiary of Holdings
nor any ERISA Affiliate has incurred any material liability (including any
indirect, contingent or secondary liability) to or on account of a Plan
pursuant to 

 

94

 

Section 409, 502(i),
502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or
Section 401(a)(29), 4971 or 4975 of the Code or expects to incur any such
liability under any of the foregoing sections with respect to any Plan; no
condition exists which presents a material risk to Holdings or any Subsidiary
of Holdings or any ERISA Affiliate of incurring a liability to or on account of
a Plan pursuant to the foregoing provisions of ERISA and the Code; no
proceedings have been instituted to terminate or appoint a trustee to
administer any Plan which is subject to Title IV of ERISA; no action, suit,
proceeding, hearing, audit or investigation with respect to the administration,
operation or the investment of assets of any Plan (other than routine claims
for benefits) is pending, expected or, to the best knowledge of Holdings, any
Subsidiary of Holdings or any ERISA Affiliate, threatened; using actuarial
assumptions and computation methods consistent with Part 1 of subtitle E of
Title IV of ERISA, the aggregate liabilities of Holdings and its Subsidiaries
and its ERISA Affiliates to all Plans which are multiemployer plans (as defined
in Section 4001(a)(3) of ERISA) in the event of a complete withdrawal
therefrom, as of the close of the most recent fiscal year of each such Plan
ended prior to the date of the most recent Credit Event, would not exceed
$1,000,000; each group health plan (as defined in Section 607(1) of ERISA
or Section 4980B(g)(2) of the Code) which covers or has covered employees
or former employees of the Borrower, any Subsidiary of the Borrower, or any
ERISA Affiliate has at all times been operated in material compliance with the
provisions of Part 6 of subtitle B of Title I of ERISA and Section 4980B
of the Code; no lien imposed under the Code or ERISA on the assets of Holdings
or any Subsidiary of Holdings or any ERISA Affiliate exists or is likely to
arise on account of any Plan, and none of Holdings, the Borrower or any of
their respective Subsidiaries maintains any Plan the obligations with respect
to which, individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect.

 

(ii)           Neither Holdings
nor the Borrower nor any of their respective Subsidiaries maintains or has
maintained any Foreign Pension Plans that has or could reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect.  None of Holdings, the Borrower or any of
their respective Subsidiaries has incurred any obligation in connection with
the termination of or withdrawal from any Foreign Pension Plan.

 

6.15         Subsidiaries.  Schedule IX hereto lists each Subsidiary of
the Borrower, and the direct and indirect ownership interest of the Borrower
therein, in each case existing on the Initial Borrowing Date.  Holdings is the record and beneficial owner
of 100% of the capital stock of the Borrower, and the Borrower is the record
and beneficial owner of 100% of the capital stock of the Unit Subsidiary.  On the Initial Borrowing Date, Holdings has
no significant assets or liabilities other than its ownership of the capital
stock of the Borrower and any liabilities directly related thereto, and on such
date Holdings owns no other capital stock of any other Person.

 

6.16         Intellectual Property; etc.  Holdings, the Borrower and each of their
respective Subsidiaries have obtained all material patents, trademarks,
servicemarks, trade names, copyrights, licenses and other rights, free from
burdensome restrictions (other than Permitted Liens), that are necessary for
the operation of their respective businesses as presently conducted and as
proposed to be conducted.

 

6.17         Compliance with Statutes, etc.  (a)  Each of Holdings, the Borrower
and their respective Subsidiaries is in compliance with all applicable
statutes, regulations and orders 

 

95

 

of, and all applicable
restrictions imposed by, all governmental bodies, domestic or foreign, in
respect of the conduct of its business and the ownership of its property,
except such instances of noncompliance as could not, either individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(b)           Each of Holdings,
the Borrower and their respective Subsidiaries is in compliance with all
applicable Environmental Laws governing its business for which failure to
comply could reasonably be expected to have a Material Adverse Effect and none
of Holdings, the Borrower or any of their respective Subsidiaries is liable for
any material penalties, fines or forfeitures for failure to comply with such
Environmental Laws in the manner set forth above.  All licenses, permits, registrations or
approvals required for the business of Holdings, the Borrower and each of their
respective Subsidiaries, as conducted as of the Initial Borrowing Date, under
any Environmental Law have been secured and each of Holdings, the Borrower and
their respective Subsidiaries is in substantial compliance therewith, except
such licenses, permits, registrations or approvals, the failure to secure or to
comply therewith could not reasonably be expected to have a Material Adverse
Effect.  None of Holdings, the Borrower
or any of their respective Subsidiaries is in any material respect in
noncompliance with, breach of or default under any applicable writ, order,
judgment, injunction, or decree to which Holdings, the Borrower or any such
Subsidiary is a party and which would materially and adversely affect the
ability of Holdings, the Borrower or any such Subsidiary to operate its
business or Real Property and no event has occurred and is continuing which,
with the passage of time or the giving of notice or both, would constitute
material noncompliance, breach of or default thereunder, except in each such
case, such noncompliances, breaches and/or defaults as could not, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.  There are as of the
Initial Borrowing Date no Environmental Claims pending or, to the best
knowledge of the Borrower, threatened, which question the validity, term or
entitlement of Holdings, the Borrower or any of their respective Subsidiaries
for any permit, license, order or registration required for the operation of
any facility which Holdings, the Borrower or any of their respective
Subsidiaries currently operates.  There
are no facts, circumstances, conditions or occurrences concerning the business
or operations of Holdings, the Borrower or any of their respective
Subsidiaries, or any Real Property at any time owned or operated by Holdings,
the Borrower or any of their respective Subsidiaries, or, to the best of their
knowledge, on any property adjoining or adjacent to any such Real Property,
that are reasonably expected (i) to form the basis of a material
Environmental Claim against Holdings, the Borrower or any of their respective
Subsidiaries or any currently owned Real Property of Holdings, the Borrower or
any of their respective Subsidiaries, or (ii) to cause such currently
owned Real Property to be subject to any material 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.

 

(c)           Hazardous Materials
have not at any time been (i) generated, used, treated or stored on, or
transported to or from, by Holdings, the Borrower or any of their respective
Subsidiaries, any Real Property of Holdings, the Borrower or any of their
respective Subsidiaries or (ii) released or disposed of on any such Real
Property, except Hazardous Materials generated, used, treated or stored on, or
transported to or from, any Real Property of Holdings, the Borrower 

 

96

 

or any of their respective Subsidiaries in
the ordinary course of business and in material compliance with Environmental
Laws.

 

6.18         Properties.  Each of Holdings, the Borrower and their
respective Subsidiaries has good title to all material properties (excluding
intellectual property which is covered in Section 6.16) owned by it free
and clear of all Liens, other than Permitted Liens.  Part A of Schedule IV contains a true
and complete list of each Real Property owned and leased by Holdings, the
Borrower or their respective Subsidiaries on the Initial Borrowing Date and the
type of interest therein held by Holdings, the Borrower or such Subsidiary.

 

6.19         Labor Relations; Collective
Bargaining Agreements. 
(a)  Set forth on Schedule X hereto is a list (including dates
of termination) of all Collective Bargaining Agreements in effect on the
Initial Borrowing Date.

 

(b)           None of Holdings,
the Borrower nor any of their respective Subsidiaries is engaged in any unfair
labor practice that could reasonably be expected to have a Material Adverse
Effect.  There is (i) no significant
unfair labor practice complaint pending against Holdings, the Borrower or any
of their respective Subsidiaries or, to the best knowledge of Holdings and the
Borrower, threatened against any of them, before the National Labor Relations
Board, and no significant grievance or significant arbitration proceeding
arising out of or under any collective bargaining agreement is pending against
Holdings, the Borrower or any of their respective Subsidiaries or, to the best
knowledge of Holdings and the Borrower, threatened against any of them and
(ii) no significant strike, labor dispute, slowdown or stoppage is pending
against Holdings, the Borrower or any of their respective Subsidiaries or, to
the best knowledge of Holdings and the Borrower, threatened against any of them
except (with respect to any matter specified in clause (i) and (ii) above,
either individually or in the aggregate) such as is not reasonably likely to
have a Material Adverse Effect.

 

6.20         Restrictions on Subsidiaries.  Except for restrictions contained in the
Credit Documents, the Senior Unsecured Notes Documents, the Senior Secured
Notes Documents and in agreements with respect to other Existing Indebtedness,
as of the Initial Borrowing Date there are no effective contractual or
consensual restrictions on the Borrower or any of its Subsidiaries which
prohibit or otherwise restrict (i) the transfer of cash or other assets
(x) between Holdings and any of its Subsidiaries or (y) between any
Subsidiaries of Holdings or (ii) the ability of Holdings or any of its
Subsidiaries to grant security interests to the Lenders in the Collateral
(except that certain Government Leases may have restrictions on the assignment
thereof).

 

6.21         Status of Accounts.  Each Account is based on an actual and bona
fide lease or sale and delivery of goods (including Rental Equipment) or
rendition of services to customers, made by the Borrower and its Subsidiaries
in the ordinary course of its business; the goods, Inventory and Rental
Equipment being sold or leased and the Accounts created are its property and
are not and shall not be subject to any Lien, consignment arrangement,
encumbrance, security interest or financing statement whatsoever other than the
Liens created pursuant to the Collateral Documents and Permitted Liens, and,
except as otherwise reported or reserved against on the Borrower’s or its
Subsidiaries’ books and records or to the extent excluded from the Borrowing
Base, the Borrower’s and its Subsidiaries’ customers have 

 

97

 

accepted the goods or services,
owe and are obligated to pay the full amounts stated in the invoices according
to their terms, without any dispute, offset, defense, or counterclaim.

 

6.22         Material Contracts.  None of Holdings, the Borrower, or any of
their respective Subsidiaries is in breach of or in default under any Material
Contract.

 

6.23         Existing Indebtedness and Operating
Leases.  (a)  Part A of
Schedule III sets forth a true and complete list of all Existing Indebtedness
(excluding any existing Indebtedness with an aggregate principal amount then
outstanding of less than $1,000,000, so long as the aggregate principal amount
of outstanding Existing Indebtedness excluded pursuant to this parenthetical
does not exceed $4,000,000) of Holdings, the Borrower and their respective
Subsidiaries as of the Initial Borrowing Date, in each case showing the
aggregate principal amount thereof and the name of the respective borrower and
any other entity which directly or indirectly guaranteed such debt.

 

(b)           Part B of Schedule
III sets forth a true and complete list of all Operating Leases of Real
Property leased by Holdings, the Borrower and their respective Subsidiaries as
of the Initial Borrowing Date, in each case showing the aggregate annual lease
payments with respect to each such Operating Lease, the respective lessee
thereunder and any other entity which has directly or indirectly guaranteed any
obligations of the lessee thereunder.

 

6.24         Guarantee of Certain Notes;
Subordinated Guarantor Senior Indebtedness; Credit Agreement; etc.  (a)  No Subsidiary of Holdings has
guaranteed the Senior Unsecured Notes or the Senior Secured Notes, other than
the Subsidiary Guarantors.

 

(b)           Except as set forth
on Schedule XX, all obligations of the Unit Subsidiary as a Subsidiary
Guarantor (including, without limitation, its guarantee of the principal of,
interest on, and other amounts relating to, the Outstandings) under the Subsidiaries
Guaranty constitute “Subordinated Guarantor Senior Indebtedness” under, and as
defined in, each of the Senior Unsecured Notes Indenture and the Senior Secured
Notes Indenture.

 

(c)           This Credit
Agreement constitutes the “Credit Agreement” under, and as defined in, the
Senior Unsecured Notes Indenture.

 

6.25         Unit Subsidiary.  Unit Subsidiary is a direct Wholly-Owned
Domestic Subsidiary of the Borrower (all of the equity interests in which are
pledged to the U.S. Pledgee pursuant to the Pledge Agreement).  All Non-Qualified Units owned by Holdings or
any of its Subsidiaries which are located in the United States of America or
any State or territory thereof are owned by the Unit Subsidiary or, if acquired
by the Borrower or any of its Subsidiaries after the Effective Date, shall
within five Business Days after the month in which such acquisition occurred,
be contributed to the equity of the Unit Subsidiary.

 

6.26         Rental Equipment; Business of the
Credit Parties.  (a)  Each
U.S. Credit Party that owns Rental Equipment holds such Rental Equipment for
sale or lease and is in the business of selling goods of that kind.

 

(b)           Each Canadian
Subsidiary Guarantor that owns Rental Equipment (i) holds such Rental
Equipment for sale or lease, or has leased such Rental Equipment, or
(ii) is 

 

98

 

to furnish such Rental Equipment, or has
furnished such Rental Equipment, under a contract of service.

 

(c)           No Certificate of
Title is required under applicable law to be issued with respect to any Rental
Equipment constituting a storage container.

 

6.27         Legal Names; Type of Organization
(and Whether a Registered Organization); Jurisdiction of Organization; etc.  Schedule XI attached hereto contains
(i) the exact legal name of Holdings, the Borrower and each Subsidiary
Guarantor, (ii) the type of organization of Holdings, the Borrower and
each Subsidiary Guarantor, (iii) whether or not Holdings, the Borrower and
each Subsidiary Guarantor is a registered organization, (iv) the jurisdiction
of organization of Holdings, the Borrower and each Subsidiary Guarantor,
(v) the Borrower’s and each Subsidiary Guarantor’s Location (or, in the
case of a Canadian Subsidiary, such Canadian Subsidiary’s registered head
office and principal place of business) and (vi) the organizational
identification number (if any) of Holdings, the Borrower and each Subsidiary
Guarantor.  To the extent that Holdings,
the Borrower or any Subsidiary Guarantor does not have an organizational
identification number on the date hereof and later obtains one, Holdings, the
Borrower or such Subsidiary Guarantor shall promptly thereafter notify the
Collateral Agent of such organizational identification number and shall take
all actions reasonably satisfactory to the Collateral Agent to the extent
necessary to maintain the security interest of the Collateral Agent in the
Collateral intended to be granted pursuant to the Collateral Documents fully
perfected and in full force and effect.

 

6.28         Insurance.  Schedule XII hereto set forth a true and
complete listing of all insurance maintained by Holdings, the Borrower and each
of their respective Subsidiaries as of the Effective Date.

 

6.29         Ownership of Rental Equipment.  All Rental Equipment (x) located in the
United States or any State thereof is owned by the Borrower or a US Subsidiary
Guarantor organized under the laws of a State of the United States and
(y) all Rental Equipment located in Canada is owned by a Canadian
Subsidiary Guarantor organized under the laws of a Qualified Canadian
Jurisdiction.

 

6.30         No Permitted Units Financing or
Attributable Debt.  None of Holdings,
the Borrower, or any of their respective Subsidiaries have incurred or will
incur any Permitted Units Financing (as defined in the Senior Unsecured Notes
Indenture) under Section 4.09(b)(13)(i) or any Attributable Debt (as
defined in the Senior Unsecured Notes Indenture) under Section 4.09(b)(12)
of the Senior Unsecured Notes Indenture.

 

6.31         Intercreditor Agreement.  The intercreditor provisions contained in the
Intercreditor Agreement are enforceable against the holders of the Senior
Secured Notes and the trustee under the Senior Secured Notes Indenture and,
except as set forth on Schedule XXI, all Obligations hereunder are within the
definition of “First Lien Obligations” included in such provisions.

 

99

 

6.32         Foreign Assets Control Regulations,
Etc.

 

(a)           None of the
execution, delivery or performance of the Credit Documents by the Credit
Parties nor the use of the proceeds of the Loans hereunder will violate (i) the
United States Trading with the Enemy Act, as amended, (ii) any of the foreign
assets control regulations of the United States Treasury Department (31 CFR,
Subtitle B, Chapter V, as amended) or any enabling legislation or executive
order relating thereto, (iii) Executive Order No. 13,224, 66 Fed Reg 49,079
(2001), issued by the President of the United States (Executive Order Blocking
Property and Prohibiting Transactions with Persons Who Commit, Threaten to
Commit or Support Terrorism) (the “Terrorism Order”) or (iv) the PATRIOT
Act.  No part of the proceeds from the
Revolving Loans will be used, directly or indirectly, for any payments to any
governmental official or employee, political party, official of a political
party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper
advantage, in violation of the United States Foreign Corrupt Practices Act of
1977, as amended.

 

(b)           No Credit Party is
or will become a “blocked person” as described in Section 1 of the Terrorism
Order.

 

Notwithstanding anything to the contrary set forth in this Article 6,
none of the representations, warranties or agreements contained in this Article
6 shall apply to any Unrestricted Subsidiary.

 

ARTICLE 7

 

Affirmative Covenants

 

Subject to Section 1.5 and Section 11.19, each of Holdings and the
Borrower hereby covenants and agrees that on the Effective Date and thereafter,
for so long as this Credit Agreement is in effect and until the Total
Commitments have terminated, no Letters of Credit or Notes are outstanding and
all Loans and Letter of Credit Obligations, together with interest, Fees,
Expenses and all other Obligations then due and payable, are paid in full:

 

7.1           Financial Information.  The Borrower shall furnish to the
Administrative Agent (who shall then make available to the Lenders) the
following information within the following time periods:

 

(a)           as soon as available
and in any event within 90 days (or 120 days in the case of the item described
in clause (B) below only) after the end of each fiscal year of Holdings,
(i) audited Financial Statements of Holdings as of the close of such
fiscal year and for such fiscal year, together with a comparison to the
Financial Statements for the prior year, in each case accompanied by (A) a
report thereon of the Auditors thereof unqualified as to scope, which report
shall state that such consolidated financial statements fairly present the consolidated
financial position of Holdings and its consolidated Subsidiaries as at the date
indicated and the results of their operations and cash flows for the periods
indicated in conformity with GAAP (except as otherwise stated therein) and that
the examination by such Auditors has been made in accordance with the standards
of the Public Company Accounting Oversight Board (United States), (B) such
Auditors’ management letter to Holdings, and (C) a written statement
signed by the Auditors stating that in the course of the annual audit of the
consolidated Financial 

 

100

 

Statements of Holdings and its consolidated
Subsidiaries, which audit was conducted by the Auditors in accordance with the
standards of the Public Company Accounting Oversight Board (United States),
such Auditors have not obtained any knowledge of the existence of any Default
or Event of Default under any provision of, if applicable, Sections 8.9,
8.10 or 8.11 of, this Credit Agreement, or, if such Auditors shall have
obtained from such examination any such knowledge, they shall disclose in such
written statement the existence of the Default or Event of Default and the
nature thereof, it being understood that such Auditors shall not be required
hereunder to perform any special audit procedures and (ii) a compliance
certificate signed by a Responsible Officer of the Borrower substantially in
the form of Exhibit O, which certificate shall (A) include a schedule
in form satisfactory to the Administrative Agent of the calculations used in
determining, as of the end of such fiscal year, whether the Borrower was in
compliance with the covenants set forth in Articles 7 and 8 of this Credit
Agreement for such year (it being understood and agreed that if such
certificate is delivered with respect to a fiscal year for which
Sections 8.9, 8.10 and 8.11 are not being tested for a fiscal period
ending on the last day of such fiscal year due to no Trigger Event having
occurred, such certificate shall still provide the calculations for
Sections 8.9, 8.10 and 8.11 as if a Trigger Event had occurred and such
fiscal year were a Test Period or, in the case of Section 8.11, the 13
consecutive fiscal month period tested thereunder ended on the last day of such
fiscal year, but the certificate shall not be required to indicate whether or
not the Borrower was in compliance with such covenants)and (B) either
(x) certify that no changes are required to be made to any of
Schedule VI or XI hereto, Annexes C, F, H, I, J or K of the U.S. Security
Agreement, Annexes A through F of the U.S. Pledge Agreement or Schedules
2.1(1)(f), 2.1(1)(h), 4.1(d) or 4.1(e) (or any analogous Schedules) to any
Canadian Security Agreement, in each case so as to make the information set
forth therein accurate and complete as of the date of such certificate, or
(y) to the extent that any such information is no longer accurate and
complete as of such date, list in reasonable detail all information necessary
to make all such Schedules and Annexes accurate and complete (as which time
such Schedules and/or such Annexes, as the case may be, shall be deemed
modified to reflect such information). 
To the extent that Holdings’ or the Borrower’s, as the case may be,
annual report on Form 10-K contains any of the foregoing items, the Lenders
will accept Holdings’ or the Borrower’s, as the case may be, report on Form 10-K
in lieu of such items;

 

(b)           as soon as available
and in any event within 45 days after the end of each fiscal quarter of
Holdings or the Borrower, as applicable, (except the last fiscal quarter of any
fiscal year) (i) Financial Statements as at the end of such period and for
the fiscal year to date, together with a comparison to the Financial Statements
for the same periods in the prior year, all in reasonable detail and duly
certified by a Responsible Officer of Holdings or the Borrower, as applicable,
as having been prepared substantially in accordance with GAAP (subject to the
absence of footnotes and audit and normal year-end adjustments) and (ii) a
compliance certificate signed by a Responsible Officer of the Borrower
substantially in the form of Exhibit O, which certificate shall
(A) include a schedule in form satisfactory to the Administrative Agent of
the calculations used in determining, as of the end of such fiscal quarter,
whether the Borrower was in compliance with the covenants set forth in Articles
7 and 8 of this Credit Agreement for such quarter (it being understood and
agreed that if such certificate is delivered with respect to a fiscal quarter
for which Sections 8.9, 8.10 and 8.11 are not being tested for a fiscal period
ending on the last day of such fiscal quarter due to no Trigger Event having
occurred, such certificate shall still provide the calculations for Sections
8.9, 8.10 and 8.11 as if a Trigger Event had occurred and such fiscal quarter
were the last fiscal quarter of a 

 

101

 

Test Period or, in the case of Section 8.11,
the 13 consecutive fiscal month period tested thereunder ended on the last day
of such fiscal quarter, but the certificate shall not be required to indicate
whether or not the Borrower was in compliance with such covenants), and
(B) either (x) certify that no changes are required to be made to any
of Schedules VI or XI hereto, Annexes C, F, H, I, J or K of the U.S. Security
Agreement, Annexes A through F of the U.S. Pledge Agreement or Schedules
2.1(1)(f), 2.1(1)(h), 4.1(d) or 4.1(e) (or any analogous Schedules) to any
Canadian Security Agreement, in each case so as to make the information set
forth therein accurate and complete as of the date of such certificate, or
(y) to the extent that such information is no longer accurate and complete
as of such date, list in reasonable detail all information necessary to make
all such Schedules and Annexes accurate and complete (at which time such
Schedules and/or such Annexes, as the case may be, shall be deemed modified to
reflect such information).  To the extent
that Holdings’ or the Borrower’s, as the case may be, quarterly report on Form
10-Q contains any of the foregoing items, the Lenders will accept Holdings’ or
the Borrower’s, as the case may be, report on Form 10-Q in lieu of such items;

 

(c)           as soon as available
and in any event within 30 days after the end of each fiscal month of the
Borrower (except the last fiscal month of any fiscal quarter, with respect to
which such reports shall be delivered within 45 days after the end of the
fiscal month (other than the last quarter of the fiscal year, with respect to which
such reports shall be delivered within 90 days after the end of the fiscal
month)), a consolidated balance sheet for the Borrower and its consolidated
Subsidiaries as at the end of such fiscal month and consolidated statements of
operations and cash flows for the Borrower and its consolidated Subsidiaries
for such fiscal month and for the fiscal year to date, together with a
comparison to the consolidated balance sheet, statement of operations and
statement of cash flows for the Borrower and its consolidated Subsidiaries for
the same periods in the prior year, all in reasonable detail and duly certified
by a Responsible Officer of the Borrower as having been prepared substantially
in accordance with GAAP (subject to the addition of footnotes and audit and
normal year-end adjustments);

 

(d)           not later than 60
days after the end of each fiscal year commencing with the fiscal year ending
December 31, 2005, monthly consolidated projections (in substantially the
same form as the Projections) for Holdings and its Subsidiaries and for the
Borrower and its Subsidiaries for the following fiscal year and annual
projections for each subsequent fiscal year through and including the fiscal
year in which the Maturity Date occurs;

 

(e)           upon request by the
Administrative Agent at any time if a Default or Event of Default shall exist
and in any event within 30 days after the end of each month (or more frequently
if requested by the Administrative Agent in the exercise of its Permitted
Discretion), a Borrowing Base certificate (the “Borrowing Base Certificate”)
in substantially the form of Exhibit P, duly completed, as of the last day of
such month (or such other date as the Administrative Agent may specify in such
request) and certified by a Responsible Officer of the Borrower and subject
only to adjustment upon completion of the normal year-end audit.  In addition, each Borrowing Base Certificate
shall have attached to it such additional schedules and/or other information,
including monthly aging reports, as the Administrative Agent may reasonably
request;

 

(f)            as soon as possible
after the end of each calendar month, but in any event not later than 30 days
after the end of such month (or more frequently as the Administrative 

 

102

 

Agent may reasonably request), (A) a
certificate setting forth the Average Rental Rate as of the end of the
immediately preceding month, (B) a certificate setting forth the Average
Lease Term as of the last day of the immediately preceding fiscal month,
(C) the Utilization as of the end of the immediately preceding month and
the average Utilization for the 13 months then last ended (calculated by taking
the average of the Utilization for each of such 13 months then last ended), and
(D) the average age of all Rental Equipment not constituting storage units
(taken as a whole) and the average age of all Rental Equipment constituting
storage units (taken as a whole), in each case as of the end of the immediately
preceding month;

 

(g)           promptly and in any
event within five Business Days after becoming aware of the occurrence of any
event which constitutes a Default or Event of Default, a certificate of the
chief executive officer or chief financial officer of the Borrower specifying
the nature thereof and the Borrower’s proposed response thereto, each in
reasonable detail;

 

(h)           promptly following
the request of the Administrative Agent, a comparison of consolidated actual
results of operations, cash flow and Capital Expenditures for the Borrower and
its Subsidiaries for the fiscal month most recently ended and for the period
from the beginning of the current fiscal year through the end of such fiscal
month with amounts projected for such fiscal month and for the period from the
beginning of the current fiscal year through the end of such fiscal month
pursuant to the Latest Projections;

 

(i)            promptly upon the
earlier of the delivery, filing or making thereof, written notice to the
Administrative Agent (which notice shall include, where applicable, the
hyperlink thereto) that a 10-K, 10-Q, 8-K, proxy statement, annual report,
quarterly report, registration statement or other filing or communication by
Holdings, the Borrower or any of their respective Subsidiaries to holders of
its publicly traded securities or the Securities and Exchange Commission or any
successor thereto (the “SEC”) from time to time pursuant to the
Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as
amended, has been delivered, filed or made;

 

(j)            promptly and in any
event within five Business Days after becoming aware of the occurrence of any
of the following events, the Borrower will provide the Administrative Agent
with notice of such event (and copies of relevant documents if requested):

 

(i)            any Material
Contract of Holdings, the Borrower or any of their respective Subsidiaries is
terminated or amended or any new Material Contract is entered into which is
reasonably likely to have an adverse effect on the Lenders (in which event the
Borrower shall provide the Administrative Agent with a copy of such Material
Contract); or

 

(ii)           any of the material
terms (other than price) upon which material suppliers of the Borrower or any
of its Subsidiaries do business with the Borrower or such Subsidiary are
changed or amended the results of which are reasonably likely to have a
Material Adverse Effect; or

 

(iii)          any order, judgment
or decree in excess of $2,500,000 (after reasonably expected insurance and
indemnity recovery) shall have been entered against Holdings, 

 

103

 

the Borrower
or any of their respective Subsidiaries or any of their respective properties
or assets; or

 

(iv)          any notification of
violation of any Requirement of Law shall have been received by Holdings, the
Borrower or any of their respective Subsidiaries from any Governmental
Authority the results of which could reasonably be expected to have a Material
Adverse Effect;

 

(k)           (A) within 60
days after the end of each fiscal year of the Borrower a new appraisal (satisfactory
to the Administrative Agent) of the Rental Equipment of the Borrower and the
Subsidiary Guarantors (on a scope substantially similar to the scope of the
appraisal of the Rental Equipment of the Borrower and the Subsidiary Guarantors
conducted by Daley Hodkin delivered to the Administrative Agent in February
2005) performed by a third party and on a valuation basis acceptable to the
Administrative Agent and (B) within 60 days after the occurrence of a
Trigger Event, an update on a desk top basis of the appraisal most recently
delivered pursuant to preceding clause (A), provided that, so long
as no Default or Event of Default exists, the Borrower shall not be required to
provide more than one such update in any calendar year, provided  further
that if a Default or an Event of Default has occurred and is continuing the
Administrative Agent shall be permitted to request an update on a physical
inspection basis at any time;

 

(l)            at the request of
the Administrative Agent (but, so long as no Default or Event of Default has
occurred and is continuing, in no event more frequently than semi-annually), an
update of the collateral examination report delivered to the Lenders pursuant
to Section 5.1(r) in form and substance reasonably satisfactory to the
Administrative Agent;

 

(m)          Environmental
Matters.  Promptly after any officer
of Holdings or the Borrower obtains knowledge thereof, notice of one or more of
the following environmental matters which could reasonably be expected to have
a Material Adverse Effect:

 

(i)            any material
pending or threatened Environmental Claim against Holdings, the Borrower or any
of their respective Subsidiaries or any Real Property owned, leased or operated
by Holdings, the Borrower or any of their respective Subsidiaries;

 

(ii)           any condition or
occurrence on or arising from any Real Property owned, leased or operated by
Holdings, the Borrower or any of their respective Subsidiaries that
(a) results in material noncompliance by Holdings, the Borrower or any of
their respective Subsidiaries with any applicable Environmental Law or
(b) could be expected to form the basis of a material Environmental Claim
against Holdings, the Borrower or any of their respective Subsidiaries or any
such Real Property;

 

(iii)          any condition or
occurrence on any Real Property owned, leased or operated by Holdings, the
Borrower or any of their respective Subsidiaries that could be expected to
cause such Real Property to be subject to any restrictions on the ownership,
lease, occupancy, use or transferability by Holdings, the Borrower or any of
their respective Subsidiaries of such Real Property under any Environmental
Law; and

 

104

 

(iv)          the taking of any
material 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 Holdings, the Borrower or any of their respective Subsidiaries as
required by any Environmental Law or any governmental, regulatory or other
administrative agency; provided, that in any event the Borrower shall
deliver to each Lender all notices received by Holdings, the Borrower or any of
its Subsidiaries from any government or governmental, regulatory or
administrative agency under, or pursuant to, CERCLA or any other Environmental
Law which identify Holdings, the Borrower or any of their respective
Subsidiaries as potentially responsible parties for remediation costs or which
otherwise notify Holdings, the Borrower or any of their respective Subsidiaries
of potential liability under CERCLA or any other Environmental Law.

 

All such notices shall describe in reasonable detail the nature of the
claim, investigation, condition, occurrence or removal or remedial action and
Holdings’ or the Borrower’s response thereto; and

 

(n)           from time to time,
such further information, including customer address lists, regarding the
Collateral, business affairs and financial condition of Holdings, the Borrower
and/or each of their respective Subsidiaries as the Administrative Agent may
reasonably request.

 

Notwithstanding anything to the contrary contained in clause (f)
of this Section 7.1, the information delivered to the Administrative Agent
pursuant to sub-clauses (C) and (D) of Section 7.1(f) shall only be
delivered to those Lenders which have requested same from the Administrative
Agent in writing and delivered a copy of such request to the Borrower.

 

7.2           Real Estate Appraisals.  In the event that the Administrative Agent or
the Required Lenders at any time after the Effective Date determine in its or
their good faith discretion (as a result of events or circumstances affecting
the Administrative Agent or the Required Lenders after the Effective Date) that
real estate appraisals satisfying the requirements set forth in 12 C.F.R., Part
34-Subpart C, or any successor or similar statute, rule, regulation, guideline
or order (any such appraisal a “Required Appraisal”) are or were
required to be obtained, or should be obtained, in connection with any
Mortgaged Property or Mortgaged Properties, then, within 120 days after
receiving written notice thereof from the Administrative Agent or the Required
Lenders, as the case may be, such Required Appraisals shall be delivered, at
the expense of the Borrower, to the Administrative Agent, which Required
Appraisals, and the respective appraiser, shall be satisfactory to the
Administrative Agent.

 

7.3           Corporate Franchises.  Holdings and the Borrower will, and will
cause each of their respective Subsidiaries to, do or cause to be done, all
things necessary to preserve and keep in full force and effect its existence,
material rights and authority to do business, provided that transactions
permitted by Section 8.1 will not constitute a breach of this
Section 7.3, and provided  further that none of Holdings, the
Borrower or any of their respective Subsidiaries shall be required to preserve
any material right or authority to do business if such Person shall reasonably
determine that such preservation is no longer desirable in the ordinary course
of business, and the loss thereof could not reasonably be expected to have a
Material Adverse Effect.

 

105

 

7.4           Compliance with Statutes, etc.  (a)  Holdings and the Borrower
will, and will cause each of their respective Subsidiaries to, comply with all
applicable statutes, regulations and orders of, and all applicable restrictions
imposed by, all governmental bodies, domestic or foreign, in respect of the
conduct of its business and the ownership of its property (including applicable
Environmental Laws) except to the extent non-compliance (individually or in the
aggregate) could not reasonably be expected to have a Material Adverse
Effect.  None of Holdings, the Borrower
or any of their respective 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 of its Real Property, or
transport or permit the transportation of Hazardous Materials to or from any
such Real Property, except to the extent the failure to comply with the
foregoing requirements, either individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.  If required to do so under any applicable
Environmental Law, Holdings and the Borrower agree to undertake, and agree to
cause each of their respective Subsidiaries to undertake, any cleanup, removal,
remedial or other action necessary to remove and clean up any Hazardous
Materials from any Real Property in accordance with, in all material respects,
the requirements of all such applicable Environmental Laws and in accordance
with, in all material respects, all applicable orders and directives of all
governmental authorities; provided that none of Holdings, the Borrower
or any of their respective Subsidiaries shall be required to take any such
action where same is being contested by appropriate legal proceedings in good
faith by Holdings, the Borrower or such Subsidiary.

 

(b)           At the request of
the Administrative Agent or the Required Lenders at any time and from time to
time when an Event of Default has occurred and is continuing, but in any event
no more frequently than once a year with respect to any particular parcel of
Real Property, the Borrower will provide, at the Borrower’s sole cost and
expense, an environmental site assessment report or update concerning any Real
Property of Holdings, the Borrower or any of their respective Subsidiaries,
prepared by an environmental consulting firm reasonably acceptable to the
Administrative Agent, indicating the presence or release of Hazardous Materials
and the potential cost of any removal or remedial action in connection with any
Hazardous Materials on such Real Property; provided, however, no
such request may be made unless the Administrative Agent or the Required
Lenders reasonably believe that (i) Holdings, the Borrower or any of their
respective Subsidiaries is in material noncompliance with any Environmental Law
with respect to such Real Property and such noncompliance is reasonably likely
to result in a liability of Holdings, the Borrower and any of their respective
Subsidiaries in excess of $5,000,000 (after expected insurance and indemnity
recovery) in the aggregate or (ii) an Event of Default is in existence.  If the Borrower fails to provide the same
after 60 days’ written notice, the Administrative Agent may order the same, and
Holdings and/or the Borrower shall grant and hereby grants to the
Administrative Agent and the Lenders and their agents access to such Real
Property at all reasonable times and without unreasonably interfering with the
Borrower’s operations and specifically grants the Administrative Agent and the
Lenders an irrevocable nonexclusive license, subject to the rights of tenants,
to undertake such an assessment all at the Borrower’s sole expense.

 

7.5           ERISA.  As soon as possible and, in any event, within
twenty days after Holdings, the Borrower, any of their respective Subsidiaries
or any ERISA Affiliate knows or has reason to know of the occurrence of any of
the following, the Borrower or its designee will deliver to the Administrative
Agent a certificate of the chief financial officer of the Borrower 

 

106

 

setting forth the full details
as to such occurrence and the action, if any, that Holdings, the Borrower, such
Subsidiary 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
Holdings, the Borrower, the Subsidiary, the ERISA Affiliate, the PBGC, any
other Governmental Authority with respect to Plans or Foreign Pension Plans, a
Plan or Foreign Pension Plan participant or the Plan or Foreign Pension Plan
administrator with respect thereto:  that
a Reportable Event (or similar event with respect to a Foreign Pension Plan)
has occurred (except to the extent that the Borrower has previously delivered
to the Lenders a certificate and notices (if any) concerning such event
pursuant to the next clause hereof); that a contributing sponsor (as defined in
Section 4001(a)(13) of ERISA) of a Plan subject to Title IV of ERISA is
subject to the advance reporting requirement of PBGC Regulation
Section 4043.61 (without regard to subparagraph (b)(1) thereof), and an
event described in subsection .62, .63, .64, .65, .66, .67 or .68 of PBGC
Regulation Section 4043 is reasonably expected to occur with respect to
such Plan within the following thirty days or similar occurrence with respect
to a Foreign Pension Plan; that an accumulated funding deficiency, within the
meaning of Section 412 of the Code or Section 302 of ERISA, has been
incurred or an application may be or has been made for a waiver or modification
of the minimum funding standard (including any required installment payments) or
an extension of any amortization period under Section 412 of the Code or
Section 303 or 304 of ERISA with respect to a Plan or similar occurrence
with respect to a Foreign Pension Plan; that any contribution required to be
made with respect to a Plan or Foreign Pension Plan has not been timely made;
that a Plan or Foreign Pension Plan has been or may be reasonably expected to
be terminated, reorganized, partitioned or declared insolvent under Title IV of
ERISA or a similar provision of applicable law; that a Plan subject to Title IV
of ERISA or a Foreign Pension Plan has an Unfunded Current Liability which,
when added to the aggregate amount of Unfunded Current Liabilities with respect
to all other Plans and Foreign Pension Plans subject to Title IV of ERISA or a
similar provision of applicable law, exceeds the aggregate amount of such
Unfunded Current Liabilities that existed on the Effective Date by $250,000;
that proceedings may be or have been instituted to terminate a Plan or a
Foreign Pension Plan or appoint a trustee to administer a Plan or a Foreign
Pension Plan which is subject to Title IV of ERISA or a similar provision of
applicable law; that a proceeding has been instituted pursuant to
Section 515 of ERISA or a similar provision of applicable law to collect a
delinquent contribution to a Plan or a Foreign Pension Plan; that Holdings, the
Borrower, any of their respective Subsidiaries or any ERISA Affiliate will or
may be reasonably expected to incur any material liability (including any
indirect, contingent, or secondary liability) to or on account of the
termination of or withdrawal from a Plan under Section 4062, 4063, 4064,
4069, 4201, 4204 or 4212 of ERISA or from a Foreign Pension Plan under a
similar provision of applicable law or with respect to a Plan under
Section 401(a)(29), 4971, 4975 or 4980 of the Code or Section 409 or
502(i) or 502(l) of ERISA or from a Foreign Pension Plan under a similar
provision of applicable law or with respect to a group health plan (as defined
in Section 607(1) of ERISA or Section 4980B(g)(2) of the Code or a
similar provision of applicable law) under Section 4980B of the Code or a
similar provision of applicable law; or that Holdings, the Borrower or any of
their respective Subsidiaries may be reasonably expected to incur any material
liability pursuant to any employee welfare benefit plan (as defined in
Section 3(1) of ERISA or a similar provision of applicable law) that
provides benefits to retired employees or other former employees (other than as
required by Section 601 of ERISA or any other applicable continuation of
coverage laws or regulations) or any Plan or any Foreign Pension Plan in
addition to the liability that existed on the Effective Date to any

 

107

 

such plan or plans.  The Borrower will deliver to each of the
Lenders (i) a complete copy of the annual report (on Internal Revenue
Service Form 5500-series or otherwise in the form prescribed by the applicable Governmental
Authority) of each Plan that is a defined benefit plan as defined in
Section 3(35) of ERISA or Foreign Pension Plan under a similar provision
of applicable law (including, to the extent required, the related financial and
actuarial statements and opinions and other schedules) required to be filed
with the Internal Revenue Service or any other applicable Governmental
Authority and (ii) copies of any material records, documents or other
information that must be furnished to the PBGC or any other applicable
Governmental Authority with respect to any Plan pursuant to Section 4010
of ERISA or other applicable under law. 
In addition to any certificates or notices delivered to the Lenders
pursuant to the first sentence hereof, copies of annual reports and any
records, documents or other information required to be furnished to the PBGC or
any other applicable Governmental Authority, and any material notices received
by Holdings, the Borrower, any of their respective Subsidiaries or any ERISA
Affiliate with respect to any defined benefit plan as defined in Section 3(35)
of ERISA shall be delivered to the Lenders no later than ten days after the
date such annual report has been filed with the Internal Revenue Service or any
other applicable Governmental Authority or such records, documents and/or information
has been furnished to the PBGC or any other applicable Governmental Authority
or such notice has been received by Holdings, the Borrower, such Subsidiary or
the ERISA Affiliate, as applicable.

 

7.6           Good Repair.  Each of Holdings and the Borrower will, and
will cause each of their respective Subsidiaries to, use its best efforts to
provide that its material properties and equipment used or useful in its
business (including Rental Equipment) in whomsoever’s possession they may be,
are kept in good repair, working order and condition, normal wear and tear
excepted and, subject to Section 8.4, 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.

 

7.7           Books and Records.  Each of Holdings and the Borrower agrees to
maintain, and to cause each of their respective Subsidiaries to maintain, books
and records pertaining to the Collateral in such detail, form and scope as is consistent
with good business practice, and agrees that such books and records will
reflect the Lenders’ interest in its Accounts. 
Holdings and the Borrower agree that the Collateral Agent or its agents
may enter upon the premises of Holdings, the Borrower or any of their
respective Subsidiaries at any time and from time to time, during normal
business hours and upon reasonable notice under the circumstances, and at any
time at all upon the occurrence and during the continuance of an Event of
Default, for the purposes of (i) inspecting the Collateral,
(ii) inspecting and/or copying (at the Borrower’s expense) any and all
records pertaining thereto, (iii) discussing the affairs, finances and
business of Holdings or the Borrower or any of their respective Subsidiaries
with any officers, employees and directors of Holdings or the Borrower or with
Auditors (it being understood that Holdings or the Borrower shall be entitled
to have a representative present at any such discussions) and
(iv) verifying Eligible Accounts Receivable and/or Eligible Rental
Equipment.  The Borrower shall give the
Collateral Agent fifteen days prior written notice of any change in the
location of any facility owned or leased by Holdings or the Borrower or any of
their respective Subsidiaries where Collateral is located or in the location of
its chief executive office or place of business from the locations specified in
Schedule VI, and to execute in advance of such change, cause to be filed and/or
delivered to the Collateral Agent any financing statements, Collateral Access
Agreements

 

108

 

or other documents required by
the Administrative Agent, all in form and substance reasonably satisfactory to
the Administrative Agent.  The Borrower
agrees to advise the Administrative Agent promptly, in sufficient detail, of
any substantial change relating to the type, quantity or quality of more than
10% (measured by net book value) of the Collateral, or any event (other than a
change in price) which could have a material adverse effect on the value of
more than 10% (measured by net book value) of the Collateral or on the security
interests granted to the Collateral Agent, on behalf of the Lenders therein.

 

7.8           Collateral Records.  Each of Holdings and the Borrower agree to
execute and deliver, and to cause each of their respective Subsidiaries to
execute and deliver, to the Collateral Agent, from time to time, solely for the
Collateral Agent’s convenience in maintaining a record of the Collateral, such
written statements and schedules as the Collateral Agent may reasonably
require, including, without limitation, those described in Section 7.1 of
this Credit Agreement, designating, identifying or describing the Collateral
pledged or granted to the Collateral Agent (for the benefit of the Lenders)
under the Collateral Documents.  The
failure by Holdings, the Borrower or any of their respective Subsidiaries,
however, to promptly give the Collateral Agent such statements or schedules
shall not affect, diminish, modify or otherwise limit the Collateral Agent’s
security interests (for the benefit of the Lenders) in the Collateral.

 

7.9           Security Interests.  Each of Holdings and the Borrower shall, and
shall cause each of their respective Subsidiaries to, defend the Collateral
against all claims and demands of all Persons at any time claiming the same or
any interest therein other than claims or demands pursuant to the Credit
Documents.  Subject to
Section 11.19, Holdings and the Borrower shall comply, and shall cause
each of their respective Subsidiaries to comply, with the requirements of all
state, federal and foreign laws in order to grant to the Collateral Agent (for
the benefit of the Lenders) valid and perfected first priority security
interests in the Collateral, subject to Existing Liens and to any other
Permitted Liens, in each instance, which pursuant to operation of law are prior
to the perfected security interests created under the Collateral
Documents.  The Collateral Agent is
hereby authorized by Holdings and the Borrower to file or register any UCC and
PPSA financing statements or similar instrument and amendments thereto, whether
or not the signatures of Holdings or the Borrower or any of their respective
Subsidiaries appears thereon, that (i) indicate the Collateral (A) as “all
assets” of such Person, or words of similar effect, regardless of whether any
particular asset included in the Collateral falls within the scope of Article 9
of the UCC or the PPSA, or (B) as being of an equal or lesser scope or with
greater detail and (ii) contain any other information required by, inter alia,
Part 5 of Article 9 of the UCC or the PPSA for the sufficiency or filing
office acceptance of any financing statement or similar instrument or
amendment, including (A) whether such Person is an organization, the type of
organization, any organization identification number issued to such Person, and
any employer or taxpayer identification number issued to such Person and (B) in
the case of a financing statement filed or registered as a fixture filing or
indicating any Collateral as as-extracted collateral or timber to be cut, a
sufficient description of real property to which such Collateral relates.  Each of Holdings and the Borrower agrees to
furnish any such information to the Collateral Agent promptly upon
request.  Each of Holdings and the
Borrower also ratifies its authorization for each of the Collateral Agent to
file or register any like financing statements or similar instruments or
amendments thereto if filed prior to the date hereof.

 

109

 

7.10         Insurance; Casualty Loss.  Holdings and the Borrower agree to maintain,
and to cause each of their respective Subsidiaries to maintain, public
liability insurance, flood insurance, third party property damage insurance and
replacement value (or such higher coverage as the Borrower may obtain)
insurance on the Collateral under such policies of insurance, with such
insurance companies, in such amounts and covering such risks in at least such
amounts and against at least such risks as are described on Schedule XII or,
with respect to any lesser coverages (whether as to the amount or scope of
coverage), as are at all times satisfactory to the Administrative Agent in its
commercially reasonable judgment.  All
policies covering the Collateral are to name the Collateral Agent as an
additional insured and the Collateral Agent as loss payee in case of loss, as
its interests may appear, and are to contain such other provisions as the
Administrative Agent may reasonably require to fully protect the Administrative
Agent’s, the Collateral Agent’s and the Lenders’ interest in the Collateral and
to any payments to be made under such policies. 
The Borrower shall provide written notice to the Administrative Agent of
the occurrence of any of the following events within ten Business Days after
the occurrence of such event: any Collateral is (i) damaged or destroyed,
or suffers any other loss, or (ii) condemned, confiscated or otherwise
taken, in whole or in part, or the use thereof is otherwise diminished so as to
render impracticable or unreasonable the use of such Collateral or to
materially diminish its marketability (collectively, a “Casualty Loss”),
and in either case either (x) a Default or an Event of Default has
occurred and is continuing or (y) the amount of the damage, destruction,
loss or diminution in value is in excess of $5,000,000.  With respect to each Casualty Loss, the
Borrower may, in its sole discretion, either apply such amounts (x) to the
payment of the outstanding Term Loans in accordance with the requirements of
Section 2.5(g)(iii) or (y) to repair or replace the assets subject to
the Casualty Loss or to purchase other assets of the same or similar type as
those for which the Borrower or other applicable Credit Party received such
insurance proceeds (although in the event that a Default or an Event of Default
then exists, such amount shall be applied to repay outstanding Term Loans in
accordance with Section 2.5(l) and, if required in accordance with the terms
thereof, to reduce the Total Revolving Credit Commitments in accordance with
Section 2.5(e)(v)).  Holdings, the
Borrower and/or the respective Subsidiary shall diligently file and prosecute
their claim or claims for any award or payment in connection with a Casualty
Loss.  In the event of a Casualty Loss,
if a Default or Event of Default has occurred and is continuing, the Borrower
shall pay to the Collateral Agent, promptly upon receipt thereof, any and all
net insurance proceeds and payments received by Holdings, the Borrower or any
of their respective Subsidiaries on account of damage, destruction, loss,
condemnation or eminent domain proceedings, which proceeds shall be applied as
provided in the last parenthetical of the preceding sentence or as otherwise
determined by the Required Lenders in their sole discretion).  After the occurrence and during the
continuance of an Event of Default, (i) no settlement on account of any
such Casualty Loss shall be made without the consent of the Collateral Agent
and (ii) the Collateral Agent may participate in any such proceedings and
the Borrower shall deliver to the Collateral Agent such documents as may be
requested by the Collateral Agent to permit such participation and shall consult
with the Collateral Agent, its attorneys and agents in the making and
prosecution of such claim or claims. 
Each of Holdings and the Borrower hereby irrevocably authorizes and
appoints the Collateral Agent its attorney-in-fact, after the occurrence and
during the continuance of an Event of Default, to collect and receive for any
such award or payment and to file and prosecute such claim or claims, which
power of attorney shall be irrevocable and shall be deemed to be coupled with
an interest, and each of Holdings and the Borrower shall, upon demand of the 

 

110

 

Collateral Agent, make, execute
and deliver any and all assignments and other instruments sufficient for the
purpose of assigning any such award or payment to the Collateral Agent for the
benefit of the Lenders, free and clear of any encumbrances of any kind or
nature whatsoever, other than the right of Holdings or the Borrower to any
insurance proceeds remaining after application thereof by the Collateral Agent
as provided in this Section 7.10.

 

7.11         Taxes.  Each of Holdings and the Borrower will, and
will cause each of their respective Subsidiaries to, pay and discharge all
federal income and other material taxes, assessments and governmental charges
or levies imposed upon it or upon its income or profits, or upon any properties
belonging to it, or payable by it pursuant to the Tax Sharing Agreements, in
each case on a timely basis, and all lawful claims which, if unpaid, might
become a Lien or charge upon any properties of Holdings, the Borrower or of any
of their respective Subsidiaries; provided, that none of Holdings, the
Borrower or any of their respective Subsidiaries shall be required to pay any
such tax, assessment, charge, levy or claim which is being contested in good
faith and by proper proceedings diligently pursued if it has maintained
adequate reserves (in the good faith judgment of the management of such Person)
with respect thereto in accordance with GAAP and which proceedings have the
effect of preventing the forfeiture or sale of the property or asset subject to
any related Lien (if any).

 

7.12         End of Fiscal Years; Fiscal Quarters.  Each of Holdings and the Borrower will, for
financial reporting purposes, cause (i) each of their, and each of their
respective Subsidiaries’, fiscal years to end on December 31 of each year
and (ii) each of their and each of their respective Subsidiaries’, fiscal
quarters to end on dates consistent therewith.

 

7.13         Further Assurances.  (a)  Holdings and the Borrower
shall take, and shall cause each of their respective Subsidiaries to take, all
such further actions and execute all such further documents and instruments as
the Collateral Agent may at any time reasonably determine to be necessary or
desirable to further carry out and consummate the transactions contemplated by
the Credit Documents, to cause the execution, delivery and performance of the
Credit Documents to be duly authorized and to perfect or protect the Liens (and
the priority status thereof) of the Collateral Agent on the Collateral
including, without limitation, (i) filing or registering notices of liens,
UCC and PPSA financing statements and amendments, renewals and continuations
thereof, (ii) obtaining, providing or making notations of security interests
upon Unit Certificates, (iii) cooperating with the Collateral Agent’s
representatives, keeping stock records, obtaining waivers from landlords and
from warehousemen and their landlords and (iv) paying claims which might,
if unpaid, become a Lien on the Collateral other than a Permitted Lien.  Furthermore, Holdings and the Borrower shall
cause to be delivered to the Collateral Agent such opinions of counsel, title
insurance and other related documents as may be reasonably requested by the
Collateral Agent to assure itself that this Section 7.13 has been complied
with.  Notwithstanding anything to the
contrary contained in this Section 7.13, the Collateral Agent shall not
(except in the circumstances described in the second and third sentences of
Section 11.19) request that the Borrower obtain or provide any Unit
Certificates with respect to any Non-Qualified Units unless an Event of Default
has occurred and is continuing; provided that if any Unit Certificates
are obtained, a notation of the Collateral Agent’s security interest shall be
made thereon as required by Section 7.18(b).  All actions required to be taken pursuant to
this Section 7.13, as well as pursuant to Section 11.19, shall be at
the cost and expense of the Borrower.

 

111

 

(b)           Within 90 days
following the acquisition of any Real Property owned by the Borrower or any
Subsidiary Guarantor, having a fair market value equal to or greater than
$2,000,000, the Borrower will, or cause the respective Subsidiary Guarantor to,
grant to the Collateral Agent for the benefit of the Secured Creditors, a
Mortgage on any such Real Property.  Each
such Mortgage shall be granted pursuant to documentation substantially similar
to the Mortgages (as defined in the Existing Credit Agreement) executed under
the Existing Credit Agreement as amended or to be amended, if applicable, to
reflect the terms of this Credit Agreement (with such modifications as may be
appropriate in consideration of the State in which such Real Property is
located) and shall constitute a valid and enforceable perfected mortgage Lien
on the respective Real Property superior to and prior to the rights of all
third Persons and subject to no other Liens except for Permitted Encumbrances.  Each such Mortgage and all instruments
related thereto shall have been duly recorded or filed in such manner and in
such places as are required by law to establish, perfect, preserve and protect
the Liens in favor of the Collateral Agent required to be granted pursuant to
such Mortgages and all taxes, fees and other charges payable in connection
therewith shall have been paid in full. 
In connection with the delivery of any such Mortgage pursuant to this
Section 7.13(b), the Borrower shall deliver, or cause to be delivered (in each
case within the above-mentioned 90 day period), (i) a Mortgage Policy on
the Mortgage on such Real Property issued by a title insurance company
reasonably satisfactory to the Collateral Agent and assuring the Collateral
Agent that such Mortgage is a valid and enforceable first priority mortgage
lien on such Real Property free and clear of all defects and encumbrances
except Permitted Encumbrances, and such Mortgage Policy shall otherwise be in
form and substance reasonably satisfactory to the Collateral Agent and shall
include, as appropriate, an endorsement for future advances under this Credit
Agreement and the Notes and for any other matter that the Collateral Agent in
its discretion may reasonably request, shall not include an exception for
mechanics’ liens, and shall provide for affirmative insurance and such
reinsurance as the Collateral Agent in its discretion may reasonably request;
(ii) a survey of such Real Property, in form and substance reasonably
satisfactory to the Collateral Agent, certified by a licensed professional
surveyor reasonably satisfactory to the Collateral Agent and of a date
reasonably acceptable to the Collateral Agent, and (iii) opinions of
counsel from counsel, and in form and substance, reasonable satisfactory to the
Administrative Agent.

 

7.14         Maintenance of Separateness.  Each Credit Party will, and will cause each
of its Subsidiaries to, satisfy customary corporate and organizational
formalities, including the holding of regular board of directors’ and shareholders’
meetings or action by directors or shareholders without a meeting and the
maintenance of corporate offices and records. 
The Credit Parties shall take all actions as may be required to maintain
an executive committee for the Unit Subsidiary with at least one member that is
not and, at all times during the one-year period immediately preceding the time
of initial appointment of such member to such executive committee, was not an
employee, officer, director, shareholder, or partner of the Borrower or any of
its Affiliates or any other Person prohibited under the Unit Subsidiary’s
Governing Documents to be such member. 
In dealing with their respective creditors, none of Holdings, the
Borrower or any of their respective Subsidiaries shall act in a manner which
would cause its creditors to believe that any such Person was not a separate
corporate entity from the other such Persons. 
Without limiting the foregoing, the consolidated financial statements of
each of Holdings and the Borrower shall, through appropriate footnote
disclosure, indicate the assets from time to time held by the Unit Subsidiary,
as opposed to Holdings or the Borrower, as the case may be, and their other
Subsidiaries.  Furthermore, no Credit
Party nor any of its 

 

112

 

Subsidiaries shall take any
action, or conduct its affairs in a manner, which would be reasonably likely to
result in the separate existence of the Unit Subsidiary being ignored, or in
the assets and liabilities of the Unit Subsidiary being substantively
consolidated with those of any of Holdings, the Borrower or any of their
respective Subsidiaries (other than the Unit Subsidiary) in a bankruptcy,
reorganization or other insolvency proceeding. 
Finally, the Credit Parties shall not permit the Unit Subsidiary to
voluntarily incur any liabilities other than (i) the Unit Subsidiary’s
Subsidiaries Guaranty, (ii) the guaranty by the Unit Subsidiary of the
Senior Unsecured Notes, the Senior Secured Notes and the Indebtedness permitted
under Section 8.3(n), in each instance, to the extent permitted under Sections
8.3(d), (l) and (n), respectively, and (iii) liabilities under the Unit
Subsidiary Management Agreement, the Master Lease Agreements and the Custodian
Agreement.

 

7.15         Collateral Access Agreements.  The Borrower shall exercise reasonable good
faith efforts to obtain and deliver to the Administrative Agent, such
Collateral Access Agreements with respect to Rental Equipment locations for
which no Collateral Access Agreement was delivered to the Administrative Agent
on or prior to the Initial Borrowing Date and shall exercise reasonable good
faith efforts to obtain and deliver such other Collateral Access Agreements as
may be requested by the Administrative Agent from time to time (such Collateral
Access Agreements to be so delivered to the Administrative Agent promptly upon
request and in any event, within 90 days after the respective request has been
made); provided that, notwithstanding the foregoing, the Borrower, in
obtaining the Collateral Access Agreements required under this
Section 7.15, shall not be obligated to make significant payments to
landlords or alter the respective lease terms with respect to any Rental
Equipment locations in any way which is materially adverse to the Borrower.

 

7.16         New Subsidiaries.  To the extent Holdings, the Borrower or any
of their respective Subsidiaries creates or acquires any Wholly-Owned Domestic
Subsidiary or Wholly-Owned Canadian Subsidiary after the Initial Borrowing Date
in accordance with the other provisions of this Credit Agreement, each such
Wholly-Owned Subsidiary shall be required (i) in the case of any such
Wholly-Owned Domestic Subsidiary, to become a party to the U.S. Subsidiaries
Guaranty, the U.S. Pledge Agreement and the U.S. Security Agreement, in any
such case by executing counterparts of the U.S. Subsidiary Joinder Agreement in
the form of Exhibit N and taking the actions specified therein, and
(ii) in the case of any such Wholly-Owned Canadian Subsidiary, to execute
and deliver a Canadian Subsidiaries Guaranty and a Canadian Security
Agreement.  In connection with the
foregoing, to the extent requested by the Administrative Agent or the
Collateral Agent, the Borrower shall be required to cause to be delivered such
relevant documentation (including opinions of counsel) of the type described in
Section 5.1 as the respective Subsidiary would have delivered if it were a
Credit Party on the Initial Borrowing Date.

 

7.17         Permitted Acquisitions.  (a)  Subject to the provisions of this
Section 7.17 and the requirements contained in the definition of Permitted
Acquisition, Holdings, Unrestricted Subsidiaries, the Borrower and the
Borrower’s Wholly-Owned Subsidiaries (other than the Unit Subsidiary) may from
time to time after the Initial Borrowing Date effect Permitted Acquisitions, so
long as (in each case except to the extent the Required Lenders otherwise
specifically agree in writing in the case of a specific Permitted
Acquisition):  (i) no Default or
Event of Default shall be in existence at the time of the consummation of the
proposed Permitted Acquisition or 

 

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immediately after giving effect
thereto; (ii) the Borrower shall have given the Administrative Agent at
least 10 Business Days’(five (5) Business Days’ in the case of a Permitted
Acquisition by Holdings or an Unrestricted Subsidiary) prior written notice of
any Permitted Acquisition; (iii) the Borrower shall certify, and the
Administrative Agent shall have been satisfied in its reasonable discretion
that, to the best of the Borrower’s knowledge, the proposed Permitted
Acquisition could not reasonably be expected to result in materially increased
tax, ERISA, environmental or other liabilities with respect to Holdings, the Borrower
or any of the Borrower’s Subsidiaries; (iv) all representations and
warranties contained herein and in the other Credit 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
Permitted Acquisition (both before and after giving effect thereto), unless
stated to relate to a specific earlier date, in which case such representations
and warranties shall be true and correct in all material respects as of such
earlier date; (v) the Borrower provides to the Administrative Agent and
the Lenders as soon as available but not later than five Business Days after
the execution thereof, a copy of any executed purchase agreement or similar agreement
with respect to such Permitted Acquisition; (vi) no proceeds of Revolving
Loans may be used to pay the purchase price or any other amounts related to
Permitted Acquisitions (whether by direct acquisition by the Borrower or any of
the Borrower’s Wholly-Owned Subsidiaries (other than the Unit Subsidiary) or by
distributing cash to Holdings to enable Holdings or any of the Unrestricted
Subsidiaries to make such Permitted Acquisition) except that
(A) $100,000,000 in the aggregate of proceeds of Revolving Loans may be
used in any fiscal year of the Borrower for such purpose (including, subject to
Section 8.6, by distributing cash to Holdings for such purpose), but
only  if for each instance of any such use of proceeds of
Revolving Loans (1) (x)  Average Excess Availability for the period
of 60 consecutive days (or such lesser number of consecutive days as may have
elapsed from the Effective Date) ending on (and including) the day on which
such Permitted Acquisition is consummated, on a pro  forma basis
as if such Permitted Acquisition (and any Credit Events to occur in connection
therewith) had occurred on the first day of such 60 (or lesser, as the case may
be) day period, is greater than or equal to $75,000,000 and (y) Excess
Availability is greater than $75,000,000 on the date of consummation of such
Permitted Acquisition after giving effect to such Permitted Acquisition and any
Credit Events in connection therewith and (2) the Senior Secured Leverage
Ratio for the four consecutive fiscal quarter period of the Borrower (taken as
one accounting period) most recently ended prior to the date of the
consummation of such Permitted Acquisition for which Financial Statements were
required to be delivered pursuant to Section 7.1(a) or (b), on a pro  forma
basis as if such Permitted Acquisition and any Credit Events in connection
therewith had occurred on the first day of such period, is less than 3.50:1.00;
and (B) in addition to the amount of proceeds of Revolving Loans permitted
under clause (A) above, an additional $100,000,000 in the aggregate of proceeds
of Revolving Loans may be used during the term of this Credit Agreement for
such purpose (including, subject to Section 8.6, by distributing cash to
Holdings for such purpose) so  long  as the Average Excess
Availability and Excess Availability tests in clauses (A)(1)(x) and (y) above
are satisfied therefore (except that the $75,000,000 amounts referenced in such
clauses shall instead be $65,000,000 amounts); and (vii) the Borrower
shall have delivered to the Administrative Agent an officer’s certificate
executed by a Responsible Officer of the Borrower, certifying to the best of
his knowledge, compliance with the requirements of preceding clauses (i)
through (iv), inclusive, containing the Senior Secured Leverage Ratio calculation
required by the preceding clause (vi)(A)(2) (if applicable) and setting forth
(x) the aggregate 

 

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amount of proceeds of Revolving
Loans to be used to pay the purchase price and any other amounts related to
such Permitted Acquisition, (y) the aggregate amount of proceeds of Revolving
Loans used to pay the purchase price and any other amounts related to all other
Permitted Acquisitions consummated since the Effective Date and (z) the
aggregate amount of proceeds of Revolving Loans used to pay the purchase price
and any other amounts related to all Permitted Acquisitions consummated during
such fiscal year.  Notwithstanding the
foregoing, no greater than $50,000,000 in the aggregate of proceeds of Revolving
Loans may be used pursuant to clause (vi)(A) of the immediately preceding
sentence in any fiscal year of the Borrower to pay the purchase price or any
other amounts related to (x) any Permitted Acquisitions by Holdings or any
Unrestricted Subsidiaries or (y) any Permitted Acquisitions by the
Borrower or any of the Borrower’s Wholly-Owned Subsidiaries with respect to
acquisition of assets located outside the United States and Canada or of any
Person that, as a result of such acquisition, shall become a Non-Canadian
Foreign Subsidiary of the Borrower.

 

(b)           At the time of each
Permitted Acquisition (x) involving the creation or acquisition of a
Subsidiary, or the acquisition of capital stock or other equity interest of any
Person (in each case by a Credit Party, or a Person that is required to be a
Credit Party pursuant to this Credit Agreement), all capital stock or other
equity interests thereof created or acquired in connection with such Permitted
Acquisition shall be pledged to the Collateral Agent for the benefit of the
Secured Creditors pursuant to the respective Pledge Agreement (although in the
case of an acquisition of any Subsidiary or Person which, after giving effect
thereto, becomes a Non-Canadian Foreign Subsidiary, if the granting of a pledge
of more than 66-2/3% of the voting capital stock or voting equity interests of
such Non-Canadian Foreign Subsidiary would give rise to “deemed dividend” tax
consequences under Section 956 of the Code, then not more than 65% of the
outstanding voting capital stock or equity interests (plus 100% of the
non-voting capital stock or equity interests) shall be required to be pledged
to the Collateral Agent pursuant to the relevant Pledge Agreement) and/or
(y) involving the acquisition of any Units, whether directly or by the
acquisition of a Subsidiary which owns such Units (but not in the event such
Units are acquired by, or such acquired Subsidiary constitutes, a Non-Canadian
Foreign Subsidiary), the provisions of Section 7.18 shall be complied with
at the time of the consummation of the respective Permitted Acquisition.

 

(c)           The Borrower shall
cause each Subsidiary (other than a Non-Canadian Foreign Subsidiary) which is
formed to effect, or is acquired pursuant to, a Permitted Acquisition to comply
with, and to execute and deliver, all of the documentation required by,
Section 7.16, to the satisfaction of the Administrative Agent.

 

7.18         Unit Subsidiary; Provisions Relating
to Units; etc. 
(a)  Holdings and the Borrower shall at all times cause the
Unit Subsidiary to be a Wholly-Owned Domestic Subsidiary of the Borrower.  Each of Holdings and the Borrower shall take
all action so that all Non-Qualified Units (other than storage containers) at
any time owned or acquired by Holdings, the Borrower or any of their respective
Domestic Subsidiaries (other than the Unit Subsidiary), or which are owned or
acquired by any Subsidiary of Holdings (other than the Unit Subsidiary) and are
located in the United States of America or any State or territories thereof,
are (or have been) on or prior to the Effective Date (or, if acquired
thereafter, within five Business Days after the end of the month in which such
acquisition occurred) contributed as a capital contribution to the equity of
the Unit Subsidiary.  As a result of the
requirements of the immediately preceding 

 

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sentence, all Non-Qualified
Units (other than storage containers) at any time held by Holdings or the
Borrower and their respective Subsidiaries (other than Units located outside
the United States of America and the States and territories thereof which are
owned by Foreign Subsidiaries), shall be transferred to the Unit Subsidiary,
which shall be the exclusive owner thereof.

 

(b)           With respect to all
Certificated Units at any time acquired by Holdings, the Borrower or any of
their Subsidiaries after the date hereof, Holdings and the Borrower shall take,
or cause to be taken, all action as is necessary so that, in any event within
30 days after any such acquisition of Certificated Units the security interest
of the Collateral Agent therein is noted on the certificate of title issued
with respect to the respective Unit.

 

7.19         Use of Proceeds.  The Borrower will use the proceeds of the
Revolving Loans only as provided in Section 6.5.

 

7.20         Rental Equipment; Business of the
Credit Parties.  (a)  All
Rental Equipment owned by the U.S. Credit Parties shall at all times be held
for sale or lease by the respective U.S. Credit Party that owns such Rental
Equipment and such U.S. Credit Party shall at all times be in the business of
selling goods of that kind.

 

(b)           All Rental Equipment
owned by the Canadian Subsidiary Guarantors shall at all times (i) be held
for sale or lease, or shall have been leased, by the respective Canadian
Subsidiary Guarantor that owns such Rental Equipment or (ii) be furnished
(or held to be furnished) under a contract of service.

 

7.21         Ownership of Rental Equipment.  All Rental Equipment (x) located in the
United States or any State thereof shall at all times be owned by the Borrower
or a U.S. Subsidiary Guarantor organized under the laws of a State of the
United States and (y) all Rental Equipment located in Canada shall at all
times be owned by a Canadian Subsidiary Guarantor organized under the laws of a
Qualified Canadian Jurisdiction.

 

7.22         No Permitted Units Financing or
Attributable Debt.  Holdings and the
Borrower will not, and will not permit any of their respective Subsidiaries to,
incur or have outstanding any Indebtedness of the type described in
Section 6.30.

 

7.23         Repayment of Senior Unsecured Notes.      Holdings and the Borrower shall cause the
Senior Unsecured Notes to be repaid in full at least 90 days prior to their
scheduled maturity with any or a combination of (1) proceeds from the Holdings
IPO or any other equity or debt offering by Holdings not prohibited by this
Credit Agreement, (2) unsecured debt permitted under Section 8.3(n) or (3)
subject to satisfaction of the requirements of Section 8.13(i)(B)(3), proceeds
of Revolving Loans.

 

ARTICLE 8

 

Negative Covenants

 

Subject to Section 1.5 and Section 11.19, each of Holdings and the
Borrower hereby covenants and agrees that as of the Effective Date, and
thereafter, for so long as this Credit Agreement is in effect and until the
Total Commitments have terminated, no Letter of 

 

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Credit or Notes are outstanding
and the Loans and Letter of Credit Obligations, together with interest, Fees,
Expenses and all other Obligations then due and payable are paid in full:

 

8.1           Consolidation, Merger, Sale or
Purchase of Assets, etc.  Holdings
and the Borrower will not, and will not permit any of their respective
Subsidiaries to, wind up, liquidate or dissolve its affairs, or enter into any
transaction of merger or consolidation, sell or otherwise dispose of all or any
part of its property or assets, or enter into any sale-leaseback transactions,
or purchase, lease or otherwise acquire (in one transaction or a series of
related transactions) all or any part of the property or assets of any Person
or agree to do any of the foregoing at any future time pursuant to a binding
agreement, except that the following shall be permitted:

 

(a)           (i) Capital
Expenditures made by the Borrower and its Domestic Subsidiaries and Canadian
Subsidiaries (including the purchase of assets in the form of additional Rental
Equipment) to the extent within the limitations set forth in Section 8.4
and (ii) Capital Expenditures made by the Borrower’s Non-Canadian Foreign
Subsidiaries;

 

(b)           the investments,
acquisitions and transfers or dispositions of properties permitted pursuant to
Section 8.5 and Dividends permitted pursuant to Section 8.6;

 

(c)           (i) any
Domestic Subsidiary of the Borrower (excluding the Unit Subsidiary) may be
merged or consolidated with or into, or be liquidated into, the Borrower or any
Wholly-Owned Domestic Subsidiary of the Borrower (excluding the Unit
Subsidiary) (so long as the Borrower or such Wholly-Owned Domestic Subsidiary
of the Borrower is the surviving corporation), or all or any part of the
business, properties and assets of any Domestic Subsidiary of the Borrower
(excluding the Unit Subsidiary) may be conveyed, leased, sold or transferred to
the Borrower or any Wholly-Owned Domestic Subsidiary of the Borrower (excluding
the Unit Subsidiary except as required by this Credit Agreement), (ii) any
Canadian Subsidiary of the Borrower may be merged or consolidated with or into,
or be liquidated into, any Wholly-Owned Canadian Subsidiary of the Borrower (so
long as such Wholly-Owned Canadian Subsidiary is the surviving corporation), or
all or any part of the business, properties and assets of any Canadian
Subsidiary of the Borrower may be conveyed, leased, sold or transferred to any
Wholly-Owned Canadian Subsidiary of the Borrower or to the Borrower,
(iii) any Non-Canadian Foreign Subsidiary may be merged or consolidated
with or into, or be liquidated into, any Non-Canadian Foreign Subsidiary that
is a Wholly-Owned Subsidiary (so long as such Wholly-Owned Subsidiary is the
surviving corporation), or all or any part of the business, properties and
assets of any Non-Canadian Foreign Subsidiary may be conveyed, leased, sold or
transferred to any Non-Canadian Foreign Subsidiary that is a Wholly-Owned
Subsidiary and (iv) all or any part of the capital stock of, or the
business, property and assets of, any Foreign Subsidiary of the Borrower may be
transferred (by way of Dividend) to the Borrower;

 

(d)           the sale, lease or
disposal to third parties (not Holdings or any Subsidiary thereof) in the
ordinary course of business of Inventory and Rental Equipment and the purchase,
lease or other acquisition from third parties (not Holdings or any Subsidiary
thereof) of equipment, Inventory and Rental Equipment in the ordinary course of
business;

 

117

 

(e)           the sale or other
disposition to third parties (not Holdings or any Subsidiary thereof) of
obsolete or excess equipment in the ordinary course of business;

 

(f)            operating leases
(and other leases or subleases) of property entered into or terminated in the
ordinary course of business; provided that to the extent that any such
lease or sublease, as the case may be, constitutes a Capital Lease, such lease
or sublease, as the case may be, shall be permitted to be entered into under
this Section 8.1(f) only if also permitted to be entered into under
Section 8.3(b);

 

(g)           sales and leases to
the Borrower of Non-Qualified Units from time to time held by the Unit
Subsidiary pursuant to the Master Lease Agreements, provided that in the
case of any such sale the respective Non-Qualified Units are contemporaneously
sold to a third party as provided in Section 8.1(d);

 

(h)           the sale or return
of automobiles and trucks which the Borrower and its Subsidiaries customarily
replace periodically with substitute automobiles and trucks in the ordinary
course of business;

 

(i)            the Borrower or any
Subsidiary may, in the ordinary course of business, enter into licensing
agreements with Persons for the use of intellectual property or other
intangible assets, and settlements, permissions, consents to use, and similar
arrangements concerning intellectual property or other intangible assets,
provided that in the case of any such agreements, settlements, permissions,
consents and similar arrangements to which any Credit Party is a party, such
Credit Party uses reasonable commercial efforts to procure that each such
license or other agreements is permitted to be assigned pursuant to the
respective Security Agreement to which such Credit Party is a party and does
not otherwise prohibit the granting of Lien therein by the respective Credit
Party pursuant to such Security Agreement; provided, further,
that notwithstanding anything to the contrary contained in this
Section 8.1, the Borrower shall be permitted to license trade names and
related intellectual property pursuant to the Trade Name License Agreement;

 

(j)            the abandonment or
other disposition of intellectual property and other property that is, in the
reasonable judgment of the Person owning such intellectual property and other
property, no longer economically practicable to maintain or useful in the
conduct of the business of such Person;

 

(k)           the sale of
(i) approximately 7 acres located at Jackson Road east of Route 73,
Berlin, New Jersey, (ii) approximately 2 acres located at 4015 Hawkins
NE, Albuquerque, New Mexico, and (iii) approximately 6.5 acres located at
1625 Western Drive, West Chicago, Illinois;

 

(l)            in connection with
the sale of any Rental Equipment to a third party as permitted by
clause (d) above, the sale of Leases and conditional sales contracts
relating to such Rental Equipment, in each case, in the ordinary course of
business for fair market value to third parties; provided that in no
event is any such sale with any recourse to the seller of such leases and/or
conditional sales contracts except for (i) usual and customary warranties
in connection with the sale of the respective Rental Equipment or
(ii) guaranties of the residual value of such

 

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Leases so long as the amount of guarantees of
the type described above in this clause (ii) (calculated taking the
maximum potential liability thereunder) at no time outstanding exceeds
$5,000,000 in the aggregate;

 

(m)          any Permitted
Acquisitions (so long as the applicable requirements set forth in the
definition of “Permitted Acquisitions” and in Section 7.17 are satisfied);

 

(n)           sales or other
dispositions of assets to third parties (not Holdings or any Subsidiary
thereof), in addition to the sales or dispositions permitted by the foregoing
clauses (a) through (n), for fair market value not to exceed $5,000,000 in
a fiscal year of the Borrower or $25,000,000 in the aggregate since the
Effective Date; provided, however, that the Net Sale Proceeds
therefrom are applied to the repayment of outstanding Loans to the extent
required by Section 2.5(j);

 

(o)           the
Credit Agreement Parties may enter into agreements to effect transactions which
would result in a Change of Control on the terms and conditions set forth on
Schedule XIII;

 

(p)           the Borrower and its
Subsidiaries may make the following sales and dispositions of Rental Equipment
if in the ordinary course of business: (i) if any Rental Equipment is
being moved in the ordinary course of business from the United States of America
or a State thereof to Canada or a Qualified Canadian Jurisdiction (for use in
said jurisdiction), the Borrower or the respective Qualified Credit Party which
owns such Rental Equipment may sell or transfer the respective Rental Equipment
to a Canadian Subsidiary Guarantor, (ii) if any Rental Equipment is being
moved in the ordinary course of business from Canada or a province thereof to
the United States of America or a State thereof, the respective Canadian
Subsidiary which owns such Rental Equipment may sell or transfer the respective
Rental Equipment to the Borrower (which shall transfer same to the Unit
Subsidiary if, and to the extent, required by Section 7.18) or the Unit
Subsidiary and (iii) Non-Canadian Foreign Subsidiaries may sell or transfer
assets to any other Non-Canadian Foreign Subsidiary which is a Wholly-Owned
Subsidiary; and

 

(q)           sales or
contributions of Rental Equipment by the Borrower or any Domestic Subsidiary of
the Borrower to Williams Scotsman Mexico, S. de R.L. de C.V. or
WS Servicios de Mexico S. de R.L. de C.V. or their respective Subsidiaries
(and contributions to such entities of accounts receivable resulting from such
sales or forgiveness of such accounts receivable) in an aggregate amount not to
exceed $5,000,000 in any fiscal year of the Borrower.

 

Notwithstanding anything to the contrary contained above, (x) in
no event shall Holdings or the Borrower sell or otherwise dispose, or permit
any of their respective Subsidiaries to sell or otherwise dispose, of any of
their interests in any Subsidiary except as expressly permitted pursuant to
preceding Section 8.1(c) and Section 8.6(i), (y) in no event shall
the Unit Subsidiary be merged with or into or consolidated with or into any
other Person or be liquidated and (z) in no event shall the Unit
Subsidiary transfer any Non-Qualified Units or any interest therein (except (i)
for the sale or lease thereof pursuant to the Master Lease Agreements, provided
that in the case of any such sale the respective Non-Qualified Units are
contemporaneously sold to a third party pursuant to Section 8.1(d) or (ii)
pursuant to Section 8.1(q)) to Holdings, the

 

119

 

Borrower or any of their other Subsidiaries or any other Person.  To the extent the Required Lenders waive the
provisions of this Section 8.1 with respect to the sale of any Collateral,
or any Collateral is sold or transferred (by dividend, contribution or
otherwise) as permitted by this Section 8.1, such Collateral in each case
(so long as the Collateral is not being sold or transferred to Holdings (other
than cash distributed to Holdings in accordance with the terms of this Credit
Agreement), the Borrower or any of the Borrower’s Domestic Subsidiaries or
Canadian Subsidiaries and Section 2.5(j), to the extent applicable, is complied
with as to such Collateral) shall be sold or transferred free and clear of the
Liens in favor of the Collateral Agent and the Lenders created by the
Collateral Documents and the Collateral Agent shall take such actions as it
deems appropriate in connection therewith or may be reasonably requested by the
Borrower to evidence such Lien release, in each case at the Borrower’s expense.

 

8.2           Liens.  Holdings and the Borrower will not, and will
not permit any of their respective Subsidiaries to, create, incur, assume or
suffer to exist any Lien upon or with respect to (i) the capital stock of
the Borrower or any of its Subsidiaries or (ii) any property or assets of
any kind (real or personal, tangible or intangible) of Holdings, the Borrower
or any of their respective Subsidiaries, 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 recourse to Holdings, the
Borrower or any of their respective Subsidiaries, but excluding sales of Leases
and conditional sales contracts relating to Rental Equipment, in either case
with residual guarantees to the extent permitted under Section 8.1(l)) or
assign any right to receive income, or file or register or permit the filing or
registration of any financing statement under the UCC or any other similar
notice of Lien under any similar recording or notice statute including the PPSA
(other than precautionary filings covering leases of equipment), except Liens,
sales and assignments described below (herein referred to as “Permitted
Liens”):

 

(a)           Liens for taxes,
assessments or other governmental charges or statutory obligations that are not
delinquent or remain payable without penalty or that are not yet due and
payable or Liens for taxes being contested in good faith and by appropriate
proceedings diligently pursued for which adequate reserves (in the good faith
judgment of the management of the Borrower) have been established and which
proceedings have the effect of preventing the forfeiture or sale of the
property or asset subject to such Lien;

 

(b)           Liens in respect of
property or assets of the Borrower or any of its Subsidiaries imposed by law or
which were incurred in the ordinary course of business, such as carriers’,
warehousemen’s and mechanics’ Liens, statutory landlord’s Liens, Liens in favor
of customs and revenue authorities to secure payment of customs duties in
connection with the importation of goods, and other similar Liens arising in
the ordinary course of business, and (x) which, if any such property or
asset is material, 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 Borrower or such Subsidiary or (y) which are being
contested in good faith by appropriate proceedings diligently pursued, which
proceedings have the effect of preventing the forfeiture or sale of the
property or asset subject to such Lien;

 

(c)           Liens created by or
pursuant to this Credit Agreement or the other Credit Documents;

 

120

 

(d)           Liens existing on
the Effective Date and listed on Schedule XIV hereto and renewals and
extensions thereof so long as the principal amount of the Indebtedness secured
thereby is not increased and no additional assets are encumbered thereby (“Existing
Liens”);

 

(e)           Liens (other than
any Lien imposed by or created under ERISA or any Environmental Law) incurred
or deposits made in the ordinary course of business (x) in connection with
liability insurance, workers’ compensation, unemployment insurance and other
types of social security, or (y) to secure the performance of tenders,
statutory obligations, surety and appeal bonds, bids, leases, government
contracts, performance and return-of-money bonds and other similar obligations
incurred in the ordinary course of business (exclusive of obligations (i) in
respect of borrowed money or (ii) in respect of which a Letter of Credit
has been issued), provided that the aggregate amount (in the case of
this clause (y)) does not exceed $7,500,000;

 

(f)            leases or subleases
granted to third Persons not interfering with the ordinary course of business
of the Borrower or any of its Subsidiaries;

 

(g)           Capital Leases to
the extent permitted under Section 8.3(b);

 

(h)           Liens
(x) arising pursuant to purchase money mortgages securing Indebtedness
representing the purchase price (or financing of the purchase price within 180
days after the respective purchase) of property or other assets acquired by the
Borrower or any Subsidiary, and any extensions, renewals or replacements of
such Liens, provided that (i) any such Liens attach only to the
assets so purchased, (ii) the Indebtedness secured by any such Lien does
not exceed 100% of the purchase price of the assets being purchased and
(iii) the Indebtedness secured thereby or any refinancing thereof is
permitted by Section 8.3(b); or (y) existing on specific tangible
assets at the time acquired by the Borrower or any Subsidiary or on assets of a
Person at the time such Person first becomes a Subsidiary or was merged into
the Borrower or any Subsidiary; provided that (i) any such Liens
were not created at the time of or in contemplation of the acquisition of such
assets or Person by the Borrower or such Subsidiary, (ii) in the case of
any such acquisition of a Person, any such Lien attaches only to specific
tangible assets of such Person and not assets of such Person generally and
(iii) the Indebtedness secured thereby or any refinancing thereof is
permitted by Section 8.3(b);

 

(i)            easements,
servitudes, rights-of-way, restrictions and other similar charges or
encumbrances on Real Property not interfering in any material respect with the
business of the Borrower and its Subsidiaries;

 

(j)            Liens created under
ERISA (or such other applicable law relating to Foreign Pension Plans) and
under Environmental Laws that are being diligently contested in good faith and
as to which adequate reserves have been established to the extent required by
GAAP and secure obligations not in excess of $5,000,000 in the aggregate;

 

(k)           Permitted
Encumbrances;

 

(l)            any attachment or
judgment Lien securing assets with a value less than $2,000,000 not
constituting an Event of Default under Section 9.1(h) that is being
contested in good faith by appropriate proceedings diligently pursued and for
which adequate reserves have been established in accordance with GAAP;

 

121

 

(m)          the leasehold
interests of customers in Rental Equipment, in each case to the extent the
respective lease is entered into by the Borrower or its respective Subsidiary
in the ordinary course of its business and is not pursuant to a sale-leaseback
or similar financing transaction;

 

(n)           Liens on the assets
of Non-Canadian Foreign Subsidiaries securing Indebtedness outstanding under
Section 8.3(i);

 

(o)           Liens granted by
Holdings and/or the Borrower to secure the performance of, and reimbursement
obligations with respect to, bid, performance, payment, surety, indemnity, or
other similar bonds arising in the ordinary course of business (collectively, “Surety
Bonds”) and in favor of the provider of any such Surety Bond (any such
provider, a “Surety”), so long as the obligations so secured are
outstanding under Section 8.3(f) and do not exceed the basket amount
contained in Section 8.3(f) less the aggregate amount of all obligations
secured by Liens permitted under clause (y) of Section 8.2(e); provided,
that (i) such Liens shall extend only to (A) the assets, interests
and other property described in Schedule XV and (ii) nothing herein shall
permit Holdings, the Borrower or any of its Subsidiaries to deposit funds due
or to become due under any contract for which any Surety has issued a Surety
Bond into any account over which the Borrower (or the Collateral Agent) does
not have unilateral control or into any trust account for the benefit of any
Surety and any such action by Holdings, the Borrower or any of its Subsidiaries
shall be deemed to be an immediate Event of Default; and

 

(p)           Liens other than
those described in the preceding clauses (a) through (o) so long as
neither (i) the aggregate amount of obligations at any time secured
thereby, nor (ii) the aggregate fair market value of the assets subject
thereto, exceeds $7,500,000 at any time.

 

8.3           Indebtedness.  Holdings and the Borrower will not, and will
not permit any of their respective Subsidiaries to, contract, create, incur,
assume or suffer to exist any Indebtedness, except:

 

(a)           Indebtedness
incurred pursuant to this Credit Agreement and the other Credit Documents;

 

(b)           Capitalized Lease
Obligations and Indebtedness of the Borrower and its Subsidiaries secured by
Liens permitted by Section 8.2(h) in an aggregate amount not to exceed
$15,000,000 outstanding at any time;

 

(c)           Existing
Indebtedness (other than under the Senior Unsecured Notes or the Senior Secured
Notes);

 

(d)           Indebtedness of the
Borrower evidenced by the Senior Unsecured Notes in an aggregate principal
amount not to exceed $550,000,000 (less the amount of principal repayments
thereof made after the original issuance thereof), and unsecured guarantees
thereof by the Subsidiary Guarantors, so long as the guarantee of the Unit
Subsidiary is subordinated on the terms as provided in the Senior Unsecured
Notes Indenture as in effect on the Effective Date (as defined in the Existing
Credit Agreement);

 

122

 

(e)           (i) Indebtedness
of any Qualified Credit Party or any Wholly-Owned Subsidiary of the Borrower
(in each instance, other than the Unit Subsidiary) owing to another Qualified
Credit Party or Wholly-Owned Subsidiary of the Borrower, in each case to the
extent making such loan is permitted in Section 8.5(i) or (k),
(ii) Indebtedness among Non-Canadian Foreign Subsidiaries,
(iii) Indebtedness of the Borrower owing to Non-Canadian Foreign
Subsidiaries arising from loans and advances made in accordance with
Section 8.5(o)(ii) and (iv) Indebtedness of Non-Canadian Foreign
Subsidiaries owing to the Borrower or its Subsidiaries arising from loans and
advances made in accordance with Section 8.5(q);

 

(f)            Indebtedness of the
Borrower and/or Holdings evidenced by guarantees, performance bonds and surety
bonds (including reimbursement obligations relating thereto) incurred in the
ordinary course of business (and not to support Indebtedness for borrowed
money) for purposes of insuring the performance of the Borrower or any of its
Domestic Subsidiaries or Canadian Subsidiaries in an aggregate principal
amount, without duplication, not to exceed (i) $100,000,000 at any time
outstanding during the fiscal year of the Borrower ending December 31, 2005,
(ii) $125,000,000 at any time outstanding during the fiscal year of the
Borrower ending December 31, 2006, and (iii) $150,000,000 at any time
outstanding during the fiscal year of the Borrower ending December 31, 2007 and
any fiscal year of the Borrower ending thereafter;

 

(g)           Indebtedness under
Interest Rate Agreements determined in good faith by the Borrower to be related
to outstanding Indebtedness permitted to remain outstanding pursuant to this
Section 8.3 and which the Borrower in good faith determines are non-speculative
in nature;

 

(h)           Indebtedness of the
Borrower or any of the Borrower’s Subsidiaries incurred to refinance any
outstanding Indebtedness described in Section 8.3(c), in each case so long
as the principal amount of such Indebtedness outstanding of the time of the
refinancing thereof is not increased as a result of any such refinancing, the
weighted average maturity thereof is not decreased and no greater Liens or
security interests are granted, and no additional guarantees provided, in
connection therewith;

 

(i)            Indebtedness of
Non-Canadian Foreign Subsidiaries, provided that such Indebtedness shall
not be guaranteed by the Borrower, any Domestic Subsidiary or any Canadian
Subsidiary or otherwise supported by any such entity (or any of its assets) in
any manner;

 

(j)            Indebtedness of
Foreign Subsidiaries under Hedge Agreements providing protection against
fluctuations in currency values in connection with such Foreign Subsidiaries’
operations so long as such Foreign Subsidiary has determined that the entering
into of such Hedge Agreements are bona fide hedging activities and not for
speculative purposes;

 

(k)           Indebtedness which
may exist as a result of guarantees expressly permitted under clause (ii)
of the proviso to Section 8.1(l) (subject to compliance with the dollar
limitations contained therein);

 

(l)            Indebtedness of the
Credit Parties evidenced by the Senior Secured Notes and the other Senior
Secured Notes Documents in an aggregate principal amount not to exceed

 

123

 

$150,000,000 (less the amount of any
repayments of principal thereof made after the original issuance thereof),
which Indebtedness may be secured by a second priority Lien on the Collateral
that is subject to the terms of the Intercreditor Agreement, provided
that the Unit Subsidiary’s guarantee of the Senior Secured Notes is
subordinated to the Obligations on terms substantially similar to the
subordination of the Unit Subsidiary’s guarantee of the Senior Unsecured Notes;

 

(m)          Indebtedness of the
Borrower or any of the Borrower’s Subsidiaries, in addition to other
Indebtedness permitted under clauses (a) through (l) above and clause (n)
below, in an aggregate principal amount not to exceed $20,000,000 at any time
outstanding; and

 

(n)           unsecured Indebtedness
of the Borrower having (i) no amortization of principal, (ii) a
scheduled maturity date no earlier than 5 1⁄2 years after the Initial Borrowing
Date, (iii) cash interest not to exceed 12 1⁄2% per annum (in the case of
floating rate Indebtedness, based on the interest rate as of the date of the
original issuance thereof) and (iv) covenants and events of default
customary for public high yield senior unsecured note offerings, the proceeds
of which shall be used to prepay the Senior Secured Notes and/or the Senior
Unsecured Notes or to refinance prior Indebtedness permitted under this clause
(n), in each instance, as provided in Section 8.13(i)(A), (B) or (C), as
appropriate, and unsecured guarantees thereof by Holdings and the Subsidiary
Guarantors, provided that the Unit Subsidiary’s guarantee of any such
Indebtedness is subordinated on terms substantially similar to the
subordination of the Unit Subsidiary’s guarantee of the Senior Unsecured Notes.

 

8.4           Capital Expenditures.  (a)  The Borrower will not, and
will not permit any of its Domestic Subsidiaries or Canadian Subsidiaries to,
make any Capital Expenditures, except that during any fiscal year of the
Borrower set forth below, the Borrower and its Domestic Subsidiaries and
Canadian Subsidiaries may make Capital Expenditures, so long as the aggregate
amount of such Capital Expenditures (less proceeds of sales of Rental Equipment
in the ordinary course of business) does not exceed in any fiscal year of the
Borrower set forth below the amount set forth below opposite such fiscal year:

 

	
  Fiscal Year Ending

  	
   

  	
  Amount

  	
   

  
	
  December 31, 2005

  	
   

  	
  $

  	
  130,000,000

  	
   

  
	
  December 31, 2006

  	
   

  	
  $

  	
  140,000,000

  	
   

  
	
  December 31, 2007

  	
   

  	
  $

  	
  150,000,000

  	
   

  
	
  December 31, 2008

  	
   

  	
  $

  	
  160,000,000

  	
   

  
	
  December 31, 2009

  	
   

  	
  $

  	
  175,000,000

  	
   

  
	
  December 31, 2010

  	
   

  	
  $

  	
  180,000,000

  	
   

  

 

(b)           Notwithstanding the
foregoing, in the event that the amount of Capital Expenditures permitted to be
made by the Borrower and its Domestic Subsidiaries and Canadian Subsidiaries
pursuant to clause (a) above in any fiscal year of the Borrower (before
giving effect to any increase in such permitted expenditure amount pursuant to
this clause (b) and after giving effect to any reduction in such permitted
expenditure amount pursuant to clause (c) below) is greater than the
amount of such Capital Expenditures made by the Borrower and its Domestic
Subsidiaries and Canadian Subsidiaries during such fiscal year, the lesser of
(i) such excess and (ii) 50% of the applicable permitted scheduled
Capital Expenditure amount for such fiscal year

 

124

 

as set forth in such clause (a) above
(such lesser amount, the “CapEx Rollover Amount”) may be carried forward
and utilized to make Capital Expenditures in the immediately succeeding fiscal
year.

 

(c)           In addition to any
amounts set forth in clause (a) or (b) above, in any fiscal year of the
Borrower the Borrower and its Domestic Subsidiaries and Canadian Subsidiaries
may make Capital Expenditures in an amount equal to 20% of the amount set forth
in clause (a) above for such fiscal year; provided, that
(i) no Capital Expenditures were made pursuant to this clause (c)
during the prior fiscal year and (ii) if Capital Expenditures are made
during a fiscal year pursuant to this clause (c), then the amount of Capital
Expenditures permitted for the subsequent fiscal year pursuant to
clause (a) above shall be reduced by the amount of such Capital
Expenditures made during such fiscal year pursuant to this clause (c).

 

(d)           Notwithstanding the
foregoing, the Borrower and its Domestic Subsidiaries and Canadian Subsidiaries
may make Capital Expenditures (which Capital Expenditures will not be included
in any determination under the foregoing clause (a), (b) or (c)) with the
insurance proceeds received by the Borrower or any of its Domestic Subsidiaries
and Canadian Subsidiaries from any Casualty Loss so long as such Capital
Expenditures are to replace or restore any properties or assets in respect of
which such proceeds were paid in accordance with Section 7.10.

 

(e)           To the extent any
Capital Expenditures made pursuant to clauses (a), (b) or (c) above
involve the purchase or lease of real property, such Capital Expenditures may
not be made unless, to the best of the Borrower’s knowledge, such purchase or
lease will not result in any material increase in the contingent liabilities
(including environmental liabilities) of the Borrower or any of its
Subsidiaries.

 

8.5           Investments.  Holdings and the Borrower will not, and will
not permit any of their respective Subsidiaries to, lend money or credit or
make advances to any Person, or purchase or acquire any stock, obligations or
securities issued by, or any other interest in, or make any capital
contribution to, any other Person, or purchase or own a futures contract or
otherwise become liable for the purchase or sale of currency or other
commodities at a future date or in the nature of a futures contract, or hold
any cash or Cash Equivalents (each of the foregoing “Investment” and,
collectively, “Investments”), except:

 

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

 

(b)           loans and advances
to employees, officers and directors in the ordinary course of business in an
aggregate principal amount not to exceed $2,000,000 at any time outstanding
shall be permitted;

 

(c)           subject to continued
compliance with Section 7.18 and the last paragraph of Section 8.1 in
the case of any Investments being made by the Unit Subsidiary, any Investment

 

125

 

by any Qualified Subsidiary Guarantor in the
Borrower or in another Qualified Subsidiary Guarantor (except that loans and
advances to the Unit Subsidiary shall not be permitted);

 

(d)           subject to
Section 8.17, Investments in cash, Cash Equivalents and, in the case of
Foreign Subsidiaries, Foreign Cash Equivalents shall be permitted;

 

(e)           Investments by the
Borrower and its Subsidiaries permitted under Section 8.1 and Capital
Expenditures permitted under Section 8.4 shall be permitted;

 

(f)            Investments
existing on the Effective Date and listed on Schedule XVI hereto, without
giving effect to any additions thereto or replacements thereof, shall be
permitted;

 

(g)           Investments which
may be deemed to exist as a result of the entering into of Interest Rate
Agreements to the extent permitted by Section 8.3(g);

 

(h)           Holdings may
purchase or acquire stock or securities of or make capital contributions to the
Borrower;

 

(i)            the Borrower and
Qualified Subsidiary Guarantors may make intercompany loans and advances to
each other (but loans and advances may not be made to the Unit Subsidiary),
provided that in the case of any such loan or advance made pursuant to this
clause (i) that is evidenced by a promissory note or other instrument,
such promissory note or other instrument shall be in each case pledged pursuant
to the relevant Pledge Agreement;

 

(j)            the Borrower, any
Wholly-Owned Subsidiary of the Borrower (other than the Unit Subsidiary),
Holdings or any Unrestricted Subsidiary may make Permitted Acquisitions in
accordance with the terms of this Credit Agreement;

 

(k)           so long as no
Default or Event of Default is then in existence or would exist immediately
after giving effect thereto, the Borrower and its Wholly-Owned Subsidiaries may
make intercompany loans and advances (but loans and advances may not be made to
the Unit Subsidiary) to pay Dividends to the extent permitted by
Section 8.6, provided that any such loans or advances that are made by a
Non-Canadian Foreign Subsidiary to a Credit Party shall, in each case, be
subordinated to the Obligations on terms satisfactory to the Administrative
Agent;

 

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

 

(m)          the Borrower and the
Qualified Subsidiary Guarantors may purchase or acquire stock or securities of,
or make capital contributions (but not of Eligible Accounts Receivable) to,
their respective Wholly-Owned Subsidiaries which are Qualified Subsidiary
Guarantors so long as any such capital contributions are made in compliance
with Section 7.18 (if applicable);

 

(n)           the Non-Canadian
Foreign Subsidiaries may purchase or acquire stock or securities of, or make
capital contributions to, other Non-Canadian Foreign Subsidiaries;

 

126

 

(o)           the Non-Canadian
Foreign Subsidiaries may make loans and advances to (i) one another and
(ii) the Borrower, provided that any and all such loans and advances made
pursuant to this clause (ii) are (x) in cash constituting funds
repatriated by any such Non-Canadian Foreign Subsidiary to the Borrower and
(y) subordinated to the Obligations on terms satisfactory to the
Administrative Agent;

 

(p)           Investments by
Foreign Subsidiaries which may be deemed to exist as a result of the entering
into of Hedge Agreements to the extent permitted by Section 8.3(j);

 

(q)           so long as no
Default or Event of Default is then in existence or would exist immediately
after giving effect thereto, the Borrower and its Subsidiaries may from time to
time make cash capital contributions, or loans or advances, to any Non-Canadian
Foreign Subsidiary of the Borrower so long as (x) such Non-Canadian
Foreign Subsidiary uses all of the proceeds therefrom within 30 days to either
(I) effect a Permitted Acquisition in accordance with Section 7.17 or
(II) make Capital Expenditures and (y) the amount of all such capital
contributions, loans and advances, (as expended in connection with the
respective Permitted Acquisition or Capital Expenditure, as the case may be)
shall (and shall be deemed to) constitute a utilization of the relevant basket
amounts in Section 7.17(a)(vi) and shall, when added to all other relevant
expenditures pursuant to this clause (q) and Section 7.17, not cause
either of said basket amounts to be exceeded;

 

(r)            Investments
referred to in Section 8.1(q);

 

(s)           loans to Holdings to
the extent permitted by Sections 8.6(c), (f), (h), (j) and (k); and

 

(t)            any Investments in
addition to those contemplated by the foregoing clauses (a) through (s), provided
that all Investments made pursuant to this clause (t) shall be permitted
by the Senior Unsecured Notes Documents and the Senior Secured Notes Documents
and shall not exceed $20,000,000 at any time outstanding.

 

8.6           Dividends, etc.  Holdings and the Borrower will not, and will
not permit any of their respective Subsidiaries to, declare or pay any
dividends (other than dividends payable solely in common stock of the Person
paying such dividend) or return any capital to, its equityholders or authorize
or make any other distribution, payment or delivery of property or cash to its
equityholders as such, or redeem, retire, purchase or otherwise acquire,
directly or indirectly, for a consideration (other than consideration in the
form of common stock of the Person paying such dividend), any shares of any
class of its capital stock or any other of its equity interests now or
hereafter outstanding (or any warrants for or options or stock appreciation
rights in respect of any of such shares or other equity interests), or set
aside any funds for any of the foregoing purposes and Holdings and the Borrower
will not permit any of their respective Subsidiaries to purchase or otherwise
acquire for consideration any shares of any class of the capital stock of or
other equity interests in Holdings, the Borrower or any of their respective
Subsidiaries now or hereafter outstanding (or any warrants for or options or
stock or similar appreciation rights issued by such Person in respect of any
such shares or other equity interests) (all of the foregoing “Dividends”),
except that:

 

127

 

(a)           any Subsidiary of
the Borrower may pay Dividends to the Borrower or any Wholly-Owned Subsidiary
of the Borrower which owns equity interest therein;

 

(b)           Holdings may pay
regularly scheduled Dividends on the Permitted Preferred Stock pursuant to the
terms thereof solely through the issuance of additional preferred shares of
such Permitted Preferred Stock;

 

(c)           the Borrower may pay
Dividends or make loans to Holdings to enable Holdings to (i) pay
reasonable and customary corporate and administrative expenses in the ordinary
course (including those related to Holdings being a public company) and
(ii) make payments expressly permitted pursuant to Section 8.7;

 

(d)           so long as the
payments relate to a period for which the Borrower is a member of the same
consolidated group as Holdings for federal income tax purposes, the Borrower
may make payments required pursuant to the Tax Sharing Agreement as in effect
on the Effective Date and delivered to the Administrative Agent pursuant to
Section 5.1(m) or as amended pursuant to Section 8.13(iii);

 

(e)           Holdings may
repurchase Holdings Common Stock or options to purchase Holdings Common Stock
held by current or former directors, executives, officers, members of
management or employees of Holdings, the Borrower or any of their respective
Subsidiaries (or their spouses or estates), provided that no Default or
Event of Default then exists or would exist immediately after giving effect
thereto;

 

(f)            the Borrower may
pay cash Dividends or make loans to Holdings for the purpose of enabling
Holdings (x) to make the purchases referred to in clause (e) above,
so long as all proceeds thereof are promptly used by Holdings to make such
purchases and (y) to pay fees and expenses related to the Holdings IPO or
any other offering of debt or equity securities by Holdings not prohibited by
this Credit Agreement; provided that, in each case, no Default or Event
of Default then exists or would exist immediately after giving effect thereto;

 

(g)           non-cash repurchases
of capital stock of Holdings which may be deemed to occur upon exercise of
stock options if such capital stock represents a portion of the exercise price
of such options;

 

(h)           the Borrower may pay
cash Dividends or make loans to Holdings for the purpose of enabling Holdings
or any Unrestricted Subsidiary to consummate a Permitted Acquisition, provided
that (1) the applicable requirements set forth in the definition of
“Permitted Acquisition” and in Section 7.17 are satisfied as of the date of the
making of such Dividend or loan (as if Section 1.5 were not in effect),
(2) the aggregate amount of such cash Dividends and loans by the Borrower
to Holdings pursuant to this clause (h) shall not exceed the aggregate amount
of proceeds of Revolving Loans permitted under Section 7.17 to be used in
connection with Permitted Acquisitions, except that not more than $50,000,000
of the $100,000,000 of proceeds of Revolving Loans permitted to be used in
connection with Permitted Acquisitions in any fiscal year of the Borrower under
Section 7.17(a)(vi)(A) (less the amount of proceeds of Revolving Loans
used by the Borrower or any of its Wholly-Owned Subsidiaries under
Section 7.17(a)(vi)(A) in connection with Permitted Acquisitions referred
to in clause (y)

 

128

 

of the last sentence of Section 7.17(a))
shall be permitted to be dividended or lent by the Borrower to Holdings during
such fiscal year of the Borrower, (3) all proceeds thereof are, within 30
days of the making of such Dividend or loan, used by Holdings to make such
Permitted Acquisition (and if not so timely used, shall promptly be paid to the
Borrower as a common stock contribution), and (4) there exists no Default
or Event of Default at the time of such Dividend or loan or after giving effect
thereto;

 

(i)            the Borrower may
distribute to Holdings the capital stock of any of the Existing Non-Canadian
Foreign Subsidiaries; provided that (1) all transfers of assets
from the Borrower or any of its Subsidiaries to any such Existing Non-Canadian
Foreign Subsidiary during the period commencing on May 16, 2005 and ending on
and including the date of such Dividend are made in the ordinary course of
business and consistent with historical practices, (2) neither the
Borrower nor any Guarantor (other than Holdings) is (or at any time after such
Dividend will be) a guarantor of or otherwise liable with respect to any
Indebtedness or other obligations of any Existing Non-Canadian Foreign
Subsidiary, (3) no assets of the Borrower or any Guarantor (other than in the
case of Holdings, the capital stock of the applicable Existing Non-Canadian
Foreign Subsidiary) secure (or at any time after such Dividend will secure) any
Indebtedness of or other obligations of any of the Existing Non-Canadian
Foreign Subsidiaries and (4) no Default or Event of Default exists at the
time of such Dividend or will result from such Dividend;

 

(j)            Holdings may make
repurchases of options to purchase Holdings Common Stock as disclosed in a
writing delivered by the Borrower to the Administrative Agent and the
Syndication Agent (and the Borrower may pay cash Dividends or make loans to
Holdings for the purpose of enabling Holdings to make such repurchases so long
as the proceeds thereof are promptly used by Holdings to make such repurchases),
provided that (i) no Default or Event of Default exists at the time
of any such Dividend, loan or repurchase or would exist immediately after
giving effect thereto and (ii) the aggregate amount of such repurchases
does not exceed $5,500,000; and

 

(k)           the Borrower may pay
Dividends and make loans to Holdings for any other lawful purpose;

 

provided
that the aggregate amount of Dividends and loans by the Borrower to Holdings
pursuant to clauses (c), (f) and (k) above and of repurchases of capital stock
or options by Holdings pursuant to clause (e) above shall not exceed
$10,000,000 in the aggregate in any fiscal year of the Borrower; provided
further that the Borrower and Holdings may make additional Dividends,
loans and repurchases of capital stock or options pursuant to such clauses (c),
(e), (f) and (k) so long as (1) the Consolidated Interest Coverage Ratio
for the four consecutive fiscal quarter period (taken as one accounting period)
of the Borrower most recently ended prior to the date of such Dividend, loan or
repurchase, on a pro  forma basis as if the Dividend, loan or
repurchase had occurred on the first day of such period, is at least 2.00:1.00,
(2) (x) Average Excess Availability for the period of 60 consecutive
days (or such lesser number of consecutive days as may have elapsed from the
Effective Date) ending on (and including) the day on which such Dividend, loan
or repurchase is consummated, on a pro  forma basis as if the
Dividend, loan or repurchase (and any Credit Events to occur in connection therewith)
had occurred on the first day of such 60 (or lesser, as the case may be) day
period, is greater than $75,000,000 and

 

129

 

(y) Excess
Availability is greater than $100,000,000 on the date of consummation of such
Dividend, loan or repurchase after giving effect to such Dividend, loan or
repurchase and any Credit Events in connection therewith, and (3) the
aggregate amount of cash expended by Holdings and the Borrower pursuant to this
proviso shall not exceed $25,000,000 in the aggregate during any fiscal year of
the Borrower.

 

8.7           Transactions with Affiliates.  Holdings and the Borrower will not, and will
not permit any of their respective Subsidiaries to, enter into any transaction
or series of transactions after the Effective Date, whether or not in the
ordinary course of business, with any Affiliate other than on terms and
conditions substantially as favorable to Holdings, the Borrower or such
Subsidiary as would be obtainable by Holdings, the Borrower or such Subsidiary
at the time in a comparable arm’s-length transaction with a Person other than
an Affiliate, provided that the foregoing restrictions shall not apply
to (i) payments by Holdings, the Borrower and any of their respective
Subsidiaries to the Equity Investors and their respective Affiliates made
pursuant to any financial advisory, financing, underwriting or placement
agreement, or in respect of other investment banking activities, in each case
as approved by the board of directors of such Person in good faith, so long as
the amount of any such fees, expenses, or other amounts paid for any such
service provided shall not exceed the usual and customary fees for similar
services rendered by or obtainable from Persons other than the Equity Investors
and their Affiliates to such Credit Party, (ii) employment arrangements
entered into in the ordinary course of business with officers, directors or
similar executives of Holdings, the Borrower, and their respective
Subsidiaries, (iii) customary fees paid to members of the Board of
Directors of Holdings, the Borrower, and their respective Subsidiaries,
(iv) subject to, in the case of the Unit Subsidiary, continued compliance
with the requirements of Section 7.18 and the last paragraph of Section 8.1,
transactions between the Borrower and any of its Wholly-Owned Subsidiaries or
among Wholly-Owned Subsidiaries of the Borrower; (v) transactions
expressly permitted pursuant to Sections 8.5 and 8.6; (vi) any
issuance of securities, or other payments, benefits, awards or grants in cash,
securities or otherwise, pursuant to, or the funding of, employment
arrangements, stock option and stock ownership plans or deferred compensation
plans approved by the Board of Directors of Holdings, the Borrower or the
respective Subsidiary (other than the Unit Subsidiary); (vii) loans or
advances to employees in the ordinary course of business in accordance with
past practices of Holdings, the Borrower or its Subsidiaries (other than the
Unit Subsidiary), but in any event not to exceed $2,000,000 in aggregate amount
at any time outstanding (calculated without regard to any write-downs or
write-offs thereof); (viii) payments pursuant to the Tax Sharing Agreement
as in effect on the Effective Date or as amended pursuant to Section 8.13(iii);
(ix) indemnification agreements with, and the payment of fees and
indemnity to, directors, officers and employees of Holdings, the Borrower or
any Subsidiary of the Borrower (other than the Unit Subsidiary) in each case in
the ordinary course of business; (x) any severance, noncompetition or
confidentiality agreement entered into by Holdings, the Borrower or any
Subsidiary (other than the Unit Subsidiary) with its employees in the ordinary
course of business; (xi) Holdings’ entrance into and, subject to continued
compliance with the terms and conditions set forth herein, Holdings’
performance of its obligations under (a) the Investor Stockholders
Agreement dated as of May 22, 1997 among Holdings, Cypress Merchant
Banking Partners L.P., Cypress Offshore Partners L.P., Scotsman Partners L.P.,
Odyssey Partners, L.P. and BT Investment Partners, Inc. (as same is amended
pursuant to Amendment No. 1 thereto, dated as of September 1, 1998) and
(b) the Second Amended and Restated Management Stockholders’ and
Optionholders’ Agreement dated as of May 22, 1997 among Holdings,

 

130

 

Cypress Merchant Banking
Partners L.P., Cypress Offshore Partners L.P., Scotsman Partners, L.P., the
Management Stockholders (as defined therein) and the Permitted Transferees (as
defined therein) of the Management Stockholders who become parties thereto
pursuant to the terms and provisions contained therein; and (xii) any
transactions described on Schedule XIX attached hereto.

 

Notwithstanding the foregoing, Holdings and the Borrower shall not, and
shall not permit their respective Subsidiaries to, enter into any agreements
with any Affiliates thereof (or any officers or management of such Affiliates),
or any other Person providing for management services (other than the Unit
Subsidiary Management Agreement, any other Management Agreements whereby one or
more Subsidiaries of the Borrower pay fees for management services solely to
the Borrower and any management services agreement described on Schedule XIX
attached hereto).

 

8.8           Changes in Business.  Holdings and the Borrower will not, and will
not permit their respective Subsidiaries to, engage in any business except
(i) all or any part of the business of selling and leasing storage containers,
mobile offices and modular structures and related equipment or any other
equipment sold or leased to a similar customer base and (ii) any business
or services related, ancillary or complementary to such businesses.

 

8.9           Senior Secured Leverage Ratio.  The Borrower will not permit the Senior
Secured Leverage Ratio for (x) any Test Period ended on or prior to
December 31, 2006 to be greater than 3.75:1.00 and (y) any Test Period
ended after December 31, 2006, to be greater than 3.50:1.00.

 

8.10         Consolidated Interest Coverage Ratio.  The Borrower will not permit the Consolidated
Interest Coverage Ratio for (x) any Test Period ended prior to December
31, 2007 to be less than 1.70:1.00 and (y) any Test Period ended on or
after December 31, 2007, to be less than 1.90:1.00; provided that if the
Holdings IPO shall be consummated, such ratio shall become 2.00:1.00 commencing
on the first day of the first fiscal quarter of the Borrower that begins not
earlier than 12 calendar months after the date of the consummation of the
Holdings IPO.

 

8.11         Utilization.  The Borrower will not permit the Utilization
for any period of 13 consecutive fiscal months of the Borrower (calculated by
taking the average of the Utilization for each of the 13 fiscal months in such
period) ending (x) with the fiscal month most recently ended prior to the
occurrence of a Trigger Event or (y) during a Trigger Event Compliance
Period to be less than 73%.

 

8.12         Creation of Subsidiaries.  Holdings and the Borrower will not, and will
not permit any of their respective Subsidiaries to, create or acquire any
Subsidiaries without the written consent of the Required Lenders, except
(i) as permitted in Section 7.17 and (ii) each of Holdings and
the Borrower may create Non-Canadian Foreign Subsidiaries from time to time so
long as (x) to the extent such Non-Canadian Foreign Subsidiary is owned by
a Credit Party, the equity interests of such Non-Canadian Foreign Subsidiary is
pledged to the Collateral Agent pursuant to the relevant Pledge Agreement (although
if the granting of a pledge of more than 66-2/3% of the voting capital stock or
voting equity interests of such Non-Canadian Foreign Subsidiary would give rise
to “deemed dividend” tax consequences under Section 956 of the

 

131

 

Code, then not more than 65% of the
outstanding voting capital stock or equity interests (plus 100% of the
non-voting capital stock or equity interests) shall be required to be pledged
to the Collateral Agent pursuant to the relevant Pledge Agreement) and
(y) all Investments (and any other contribution) made by Holdings or any
of its Subsidiaries in or to any such Non-Canadian Foreign Subsidiary are
permitted under Section 8.5.

 

8.13         Limitation on Voluntary Payments and
Modifications of Indebtedness; Modifications of Governing Documents, Preferred
Stock and Certain Other Agreements; etc. 
Holdings and the Borrower will not, and will not permit any of their
respective Subsidiaries to:

 

(i)            make (or give any
notice in respect of) any voluntary or optional payment or prepayment on or
redemption or acquisition for value of (including, without limitation, by way
of depositing with the trustee with respect thereto or any other Person money
or securities before due for the purpose of paying when due), exchange or
purchase, redeem or acquire for value (whether as a result of a Change of
Control, the consummation of asset sales or otherwise) any Senior Unsecured
Note, any Senior Secured Note or any Indebtedness permitted in
Section 8.3(n), except that (A) the Borrower may make (and give any
notice in respect of) one or more voluntary prepayments, redemptions or
acquisitions for value of Senior Secured Notes up to and including the full
outstanding amount thereof; provided that, (1)(x) Average Excess
Availability for the period of 60 consecutive days (or such lesser number of
consecutive days as may have elapsed from the Effective Date) ending on (and
including) the day on which each such prepayment, redemption or acquisition, as
the case may be, of Senior Secured Notes is made, on a pro  forma
basis as if such prepayment, redemption or acquisition, as the case may be,
(and any Credit Events to occur in connection therewith) had occurred on the
first day of such 60 (or lesser, as the case may be) day period, is greater
than or equal to $75,000,000 (it being agreed that the requirement in this
clause (x) shall not be applicable if such prepayment, redemption or
acquisition, as the case may be, is made solely from proceeds of the Holdings
IPO and/or unsecured debt permitted under Section 8.3(n)) and
(y) Excess Availability is greater than $75,000,000 on the date of each
such prepayment, redemption or acquisition, as the case may be, after giving
effect to such prepayment, redemption or acquisition, as the case may be, and
any Credit Events in connection therewith, (2) with respect to each
prepayment, redemption or acquisition of Senior Secured Notes that results in
the prepayment, redemption and/or acquisition for value on or after the
Effective Date of an aggregate amount greater than $75,001,000 of Senior
Secured Notes, the Senior Secured Leverage Ratio for the four consecutive
fiscal quarter period of the Borrower (taken as one accounting period) most
recently ended prior to the date of such prepayment, redemption or acquisition,
as the case may be, on a pro forma basis as if such prepayment, redemption or
acquisition, as the case may be, had occurred on the first day of such period,
is less than 3.25:1.00 (3.50:1.00 if such prepayment, redemption or acquisition
is made upon or within 60 days following the consummation of the Holdings IPO)
and (3) no Default or Event of Default exists at the time of such
prepayment, redemption or acquisition, as the case may be, or will result from
such prepayment, redemption or acquisition, as the case may be, (B) the
Borrower may (and in any event shall) refinance the Senior Unsecured Notes in
full at least 90 days prior to their scheduled maturity date with any or a
combination of (1) proceeds from the Holdings IPO or any other equity or
debt offering by Holdings not prohibited by this

 

132

 

Credit Agreement, (2) unsecured debt permitted under
Section 8.3(n) or (3) proceeds of Revolving Loans (provided that if
proceeds of Revolving Loans are used, (x) Average Excess Availability for
the period of 60 consecutive days (or such lesser number of consecutive days as
may have elapsed from the Effective Date) ending on (and including) the day on
which such refinancing is consummated, on a pro forma basis as if such
refinancing (and any Credit Events to occur in connection therewith) had
occurred on the first day of such 60 (or lesser, as the case may be) day
period, is greater than or equal to $75,000,000, (y) Excess Availability
is greater than $75,000,000 on the date of such refinancing after giving effect
to such refinancing and any Credit Events in connection therewith and
(z) no Default or Event of Default exists at the time of such refinancing
or would result therefrom) and (C) the Borrower may refinance any
Indebtedness permitted under Section 8.3(n) with other Indebtedness permitted
under Section 8.3(n) or any other equity or debt offering by Holdings not
prohibited by this Credit Agreement; provided that (x) Average Excess Availability
for the period of 60 consecutive days (or such lesser number of consecutive
days as may have elapsed from the Effective Date) ending on (and including) the
day on which such refinancing is consummated, on a pro forma basis as if such
refinancing (and any Credit Events to occur in connection therewith) had
occurred on the first day of such 60 (or lesser, as the case may be) day
period, is greater than or equal to $75,000,000, (y) Excess Availability
is greater than $75,000,000 on the date of such refinancing after giving effect
to such refinancing and any Credit Events in connection therewith and
(z) no Default or Event of Default exists at the time of such refinancing
or would result therefrom;

 

(ii)           amend or modify, or
permit the amendment or modification of, any provision of any Senior Unsecured
Notes Document, any Senior Secured Notes Document or any indenture, note or
other documentation governing or otherwise relating to any Indebtedness
permitted under Section 8.3(n), except any amendment or modification which
is not adverse to the Lenders in any respect (it being understood and agreed
that (i) the Borrower may, in connection with a tender for the redemption
or acquisition for value of, or exercise of a call with respect to, Senior Secured
Notes or Senior Unsecured Notes permitted under clause (i) above, amend
the Senior Secured Notes Documents or the Senior Unsecured Notes Documents, as
the case may be, pursuant to a supplemental indenture in form and substance
reasonably satisfactory to the Administrative Agent, to remove covenants
contained in such documents and (ii) with respect to each of the Senior
Unsecured Notes Documents, the Senior Secured Notes Documents and the
documentation governing or otherwise relating to any Indebtedness permitted
under Section 8.3(n), in no event shall any amendment be permitted which
relates to the Unit Subsidiary’s guaranty of the Senior Unsecured Notes, the
Senior Secured Notes or such other Indebtedness, as the case may be, or the
subordination provisions applicable thereto);

 

(iii)          amend, modify or
change in any way adverse to the interests of the Lenders, any Tax Sharing
Agreement, any Management Agreement, the Master Lease Agreements, the Unit
Subsidiary Management Agreement, the Trade Name License Agreement, any of its
Governing Documents (including, without limitation, by the filing or
modification of any certificate of designation) or any agreement entered into
by it, with respect to its capital stock (including any Shareholders’
Agreement), or enter into

 

133

 

any new Tax Sharing Agreement, Management Agreement or agreement with
respect to its capital stock which could in any way be adverse to the interests
of the Lenders in their capacity as such; or

 

(iv)          amend, modify or
change in any way adverse to the Lenders any preferred stock (or any
certificates of designation relating thereto).

 

8.14         Issuance of Stock.  (a) prior to the Holdings IPO, Holdings
shall not issue any shares of capital stock after the Effective Date, other
than (i) shares of Holdings Common Stock to the extent not resulting in a
Change of Control, (ii) shares of Permitted Preferred Stock on terms and
conditions, and pursuant to documentation, in form and substance satisfactory
to the Administrative Agent and the Required Lenders, and (iii) shares of
Permitted Preferred Stock paid as pay-in-kind Dividends on the Permitted
Preferred Stock and (b) neither Holdings nor the Borrower will permit any
of their respective Subsidiaries directly or indirectly to, issue, sell,
assign, pledge or otherwise encumber or dispose of any shares of its capital
stock or other equity securities (or warrants, rights or options to acquire
shares or other equity securities) of such Subsidiary to any Person other than
Holdings (but only in the case of equity interests in Foreign Subsidiaries not
constituting Canadian Subsidiaries), and, in the case of any Subsidiary of the
Borrower, the Borrower or a Wholly-Owned Subsidiary of the Borrower, except,
(x) to the extent permitted by Sections 7.3, 7.17, 8.1(c), 8.2 and
8.5 and (y) for the issuance of directors’ qualifying shares to the extent
required by applicable law.

 

8.15         Limitation on Restrictions Affecting
Subsidiaries.  Each of Holdings and
the Borrower will not, and will not permit any of their respective Subsidiaries
to, directly or indirectly, create or otherwise cause or suffer to exist any
encumbrance or restriction which prohibits or limits the ability of the
Borrower or any Subsidiary of Holdings or the Borrower to (a) pay
dividends or make other distributions or pay any Indebtedness owed to Holdings,
the Borrower or any of their respective Subsidiaries, (b) make loans or
advances to Holdings, the Borrower or any of their respective Subsidiaries, (c) transfer
any of its properties or assets to Holdings, the Borrower or any of their
respective Subsidiaries or (d) create, incur, assume or suffer to exist
any lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, other than encumbrances and restrictions arising under
(i) applicable law, (ii) this Credit Agreement and the other Credit
Documents, (iii) Indebtedness permitted pursuant to Sections 8.3(c),
(d), (h), (i) (as to the relevant Non-Canadian Foreign Subsidiary only), (l) and
(n), (iv) customary provisions restricting subletting or assignment of any
lease governing a leasehold interest of Holdings, the Borrower or any of their
respective Subsidiaries, (v) customary restrictions on dispositions of
real property interests found in reciprocal easement agreements of Holdings,
the Borrower or any of their respective Subsidiaries, (vi) any agreement
relating to Indebtedness incurred by a Subsidiary of the Borrower prior to the
date on which such Subsidiary was acquired by the Borrower and outstanding on
such acquisition date, (vii) the extension or continuation of contractual
obligations in existence on the date hereof, provided that any such
encumbrances or restrictions contained in such continuation are no less
favorable to the Lenders, than those encumbrances and restrictions under or
pursuant to the contractual obligations continued hereby,
(viii) restrictions imposed under the agreements relating to Indebtedness
permitted under Section 8.3(b), provided that such restrictions
apply only to the property securing such Indebtedness as permitted hereunder
and (ix) restrictions imposed on the transfer of rights under contracts
related to sales of Leases or conditional sales made pursuant to

 

134

 

Section 8.1(l) so long as any
guarantees of such Leases do not exceed the dollar limitations contained in
clause (ii) of the proviso contained in such Section 8.1(l).

 

8.16         No Additional Bank Accounts.  The Borrower will not, and will not permit any
of its Domestic Subsidiaries or Canadian Subsidiaries to, directly or
indirectly, open, maintain or otherwise have any checking, savings, any other
deposit accounts or any other accounts at any bank or other financial
institution where money or any other assets is or may be deposited or
maintained with any Person, other than (A) in the case of the Credit
Agreement Parties and their respective Domestic Subsidiaries (i) the
Concentration Account, the Collection Accounts, the Disbursement Account, any
cash collateral account established pursuant to Section 2.5(g) and the
accounts set forth on Schedule XVII and (ii) local accounts in the
ordinary course of business and in compliance with Section 8.17, it being
understood that in no event shall Holdings, the Borrower or any of their
respective Domestic Subsidiaries be permitted to direct any payments on behalf
of any Accounts or Leases or any other Collateral to such local accounts,
(B) in the case of any Canadian Subsidiary, in an account subject to a Canadian
Bank Control Agreement and (C) in the case of a Domestic Subsidiary or
Canadian Subsidiary of the Borrower acquired by the Borrower after the
Effective Date pursuant to a Permitted Acquisition, accounts of such Subsidiary
so long as within 120 days of the consummation of such Permitted Acquisition,
such Subsidiary is in compliance with this Section 8.16 without giving effect
to this clause (C).

 

8.17         No Excess Cash.  (a)  The Borrower will not, and
will not permit any of its Domestic Subsidiaries to, directly or indirectly,
maintain in the aggregate in all of the checking, savings or other accounts
(other than the Disbursement Accounts, the Collection Accounts, the
Concentration Account, the payroll accounts and the Deferred Compensation
Program Investment Account set forth on Schedule XVII) of the Borrower and its
Domestic Subsidiaries total cash balances and investments (including
Investments in Cash Equivalents) in excess of $500,000 at any time during which
any Revolving Loans are outstanding hereunder.

 

(b)           Holdings and the
Borrower will not permit their respective Canadian Subsidiaries to maintain in
the aggregate in all of the checking, savings or other accounts of such
Canadian Subsidiaries total cash balances and investments (including
Investments in Cash Equivalents and Foreign Cash Equivalents) in excess of
$10,000,000 for fifteen or more consecutive days at any time during which
Revolving Loans are outstanding hereunder.

 

8.18         Account Terms.  The Borrower shall, and shall cause each of
its Subsidiaries to, promptly pay when due, or in conformity with customary
trade terms consistent with past practices, all of their trade accounts
payable, except for late payment in the ordinary course of business, the
lateness of which payment, singly or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.

 

8.19         Permitted Preferred Stock.  At all times prior to the Maturity Date and
thereafter until the payment in full in cash of all Obligations then due and
payable hereunder and under the other Credit Documents, the Borrower shall pay
Dividends on the Permitted Preferred Stock only in additional shares of
Permitted Preferred Stock.

 

135

 

8.20         Unit Subsidiary.  Notwithstanding anything to the contrary
contained elsewhere in this Credit Agreement, in no event shall (i) the
Unit Subsidiary be liquidated and/or dissolved, (ii) the Unit Subsidiary
be merged or consolidated with or into Holdings, the Borrower or any of their
respective other Subsidiaries or any other Person, (iii) the Unit
Subsidiary become a “Guarantor” as opposed to a “Subordinated Guarantor” under
the Senior Unsecured Notes Indenture or the Senior Secured Notes Indenture or
(iv) the Borrower permit the “Subordinated Guaranty” of the Unit
Subsidiary contained in the Senior Unsecured Notes Indenture or the Senior
Secured Notes Indenture to be released.

 

8.21         Change of Legal Names; Type of
Organization (and Whether a Registered Organiza­tion); Jurisdiction of
Organization etc.  Neither Holdings,
the Borrower nor any Subsidiary Guarantor shall change its legal name, its type
of organization, its status as a registered organi­zation (in the case of a
registered organization), its jurisdiction of organization, its Location, or
its organizational identification number (if any), except that any such changes
shall be permitted (so long as not in violation of the applicable requirements
of the Collateral Documents and so long as same do not involve (x) a
registered organization ceasing to constitute same or (y) Holdings, the
Borrower or any Subsidiary Guarantor changing its juris­dic­tion of
organization or location from the United States or a State thereof to a juris­dic­tion
of organization or location, as the case may be, outside the United States or a
State thereof) if (i) it shall have given to the Collateral Agent not less
than 15 days’ prior written notice of each change to the information listed on
Schedule XI (as adjusted for any subsequent changes thereto previously made in
accordance with this sentence), together with a supplement to Schedule XI which
shall correct all information contained therein for Holdings, the Borrower or
the respective Subsidiary Guarantor, and (ii) in connection with the
respective such change or changes, it shall have taken all action reasonably
requested by the Collateral Agent to maintain the security interests of the
Collateral Agent in the Collateral intended to be granted hereby pursuant to
the Collateral Documents at all times fully perfected and in full force and
effect.

 

ARTICLE 9

 

Events of Default and Remedies

 

9.1           Events of Default.  Upon the occurrence of any of the following
specified events (each an “Event of Default”):

 

(a)           Payments.  The Borrower shall (i) default in the
payment when due of any principal of any Loans or (ii) default, and such
default shall continue for five or more days, in the payment when due of any
interest on any Loans or any drawings under Letters of Credit which have not
been reimbursed by the Borrower (including through the incurrence of Revolving
Loans), or (iii) default, and such default shall continue for five or more
days after written demand therefor by the Administrative Agent, in the payment
when due of any Fees, Expenses or any other amounts owing hereunder or under
any other Credit Document; or

 

(b)           Representations,
etc.  Any representation or warranty
made by any Credit Party herein or in any other Credit 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

 

136

 

(c)           Covenants.  Holdings or the Borrower shall
(i) default in the due performance or observance by it of any term,
covenant or agreement contained in Sections 7.1(e), 7.1(g), 7.1(h),
7.1(j)(iii), 7.1(j)(iv), 7.1(m), 7.3, 7.4, 7.8, 7.12, 7.17, 7.18, 7.20, 7.23,
11.19 or Article 8, (ii) default in the due performance or observance
by it of any term, covenant or agreement contained in Section 7.14 (with
respect to the Unit Subsidiary) and such default shall continue unremedied for
a period of at least 10 days, or (iii) default in the due performance or
observance by it of any term, covenant or agreement (other than those referred
to in Section 9.1(a), 9.1(b) or clause (i) or (ii) of this
Section 9.1(c)) contained in this Credit Agreement or the other Credit
Documents and such default shall continue unremedied for a period of at least
30 days after notice to the defaulting party by the Administrative Agent or the
Required Lenders; or

 

(d)           Default Under
Other Agreements.  (i) Holdings,
the Borrower or any of their respective Subsidiaries (other than any
Unrestricted Subsidiaries) shall (x) default in any payment with respect
to any Indebtedness (other than the Obligations) beyond the period of grace, if
any, applicable thereto or (y) default in the observance or performance of
any agreement or condition relating to any such Indebtedness or contained in
any instrument or agreement evidencing, securing or relating thereto, 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 Indebtedness (or a trustee or agent on behalf of such holder or holders)
to cause any such Indebtedness to become due prior to its stated maturity; or
(ii) any such Indebtedness of Holdings, the Borrower or any of their
respective Subsidiaries (other than an Unrestricted Subsidiary) shall be
declared by the holders thereof or a representative therefor to be due and
payable prior to the stated maturity thereof; provided that it shall not
constitute an Event of Default pursuant to this Section 9.1 unless the
aggregate principal amount of all such Indebtedness referred to in
clauses (i) and/or (ii) above exceeds $10,000,000; or

 

(e)           Bankruptcy, etc.  Holdings, the Borrower or any of their
respective Subsidiaries (other than an Unrestricted Subsidiary) shall commence
a voluntary case concerning itself under Title 11 of the United States Code
entitled “Bankruptcy”, as now or hereafter in effect, or any successor thereto
(the “Bankruptcy Code”); or an involuntary case is commenced against
Holdings, the Borrower or any of their respective Subsidiaries (other than an
Unrestricted Subsidiary), and the petition is not controverted within 30 days,
or is not dismissed within 60 days, after commencement of the case; or a
custodian (as defined in the Bankruptcy Code) is appointed for, or takes charge
of, all or substantially all of the property of Holdings, the Borrower or any
of their respective Subsidiaries (other than an Unrestricted Subsidiary); or
Holdings, the Borrower or any of their respective Subsidiaries (other than an
Unrestricted Subsidiary) commences any other proceeding under any
reorganization, arrangement, adjustment of debt, relief of debtors,
dissolution, insolvency or liquidation or similar law of any jurisdiction
whether now or hereafter in effect relating to Holdings, the Borrower or such Subsidiary;
or there is commenced against Holdings, the Borrower or any of their respective
Subsidiaries (other than an Unrestricted Subsidiary), any such proceeding which
remains undismissed for a period of 60 days; or Holdings, the Borrower or any
of their respective Subsidiaries (other than an Unrestricted Subsidiary) is
adjudicated insolvent or bankrupt; or any order of relief or other order
approving any such case or proceeding is entered; or Holdings, the Borrower or
any of their respective Subsidiaries (other than an Unrestricted Subsidiary)
suffers any appointment of any custodian, receiver, trustee or the like for it
or any substantial part of its property to continue

 

137

 

undischarged or unstayed for a period of 60
days; or Holdings, the Borrower or any of their respective Subsidiaries (other
than an Unrestricted Subsidiary) makes a general assignment for the benefit of
creditors; or any corporate action is taken by Holdings, the Borrower or any of
their respective Subsidiaries (other than an Unrestricted Subsidiary) for the
purpose of effecting any of the foregoing; or

 

(f)            ERISA.  (i) Any
Plan shall fail to satisfy the minimum funding standard required for any plan
year or part thereof after the Effective Date under Section 412 of the
Code or Section 302 of ERISA or a waiver of such standard or extension of
any amortization period is sought or granted under Section 412 of the Code
or Section 303 or 304 of ERISA, a Reportable Event shall have occurred, a
contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of a
Plan subject to Title IV of ERISA shall be subject to the advance reporting
requirement of PBGC Regulation Section 4043.61 (without regard to
subparagraph (b)(1) thereof) and an event described in subsection .62,
..63, .64, .65, .66, .67 or .68 of PBGC Regulation Section 4043 shall be
reasonably expected to occur with respect to such Plan within the following 30
days, any Plan which is subject to Title IV of ERISA shall have had or is likely
to have a trustee appointed to administer such Plan, any Plan which is subject
to Title IV of ERISA is, shall have been or is likely to be terminated or to be
the subject of termination proceedings under ERISA, any Plan subject to Title
IV of ERISA shall have an Unfunded Current Liability, a material contribution
required to be made with respect to a Plan or a Foreign Pension Plan has not
been timely made, the Borrower or any Subsidiary of the Borrower or any ERISA
Affiliate has incurred or is likely to incur any liability to or on account of
a Plan under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069,
4201, 4204 or 4212 of ERISA or Section 401(a)(29), 4971 or 4975 of the
Code or on account of a group health plan (as defined in Section 607(1) of
ERISA to one or more employee welfare benefit plans (as defined in
Section 3(1) of ERISA) that provide benefits to retired employees or other
former employees (other than as required by Section 601 of ERISA or any
other applicable continuation of coverage laws) or Plans or Foreign Pension
Plans; (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; and (iii) such Lien, security interest
or liability, individually, and/or in the aggregate, has had, or could
reasonably be expected to have, a Material Adverse Effect; or

 

(g)           Collateral
Documents.  Any Collateral Document
shall cease to be in full force and effect (except in accordance with the terms
thereof), or shall cease to give the Collateral Agent on behalf of the Lenders
the perfected Liens, rights, powers, priorities or privileges purported to be
created thereby in favor of the Collateral Agent, any Credit Party shall
default in any material respect in the due performance or observance of any
term, covenant or agreement on its part to be performed or observed pursuant to
any such Collateral Document and such default shall continue unremedied for a
period of at least 30 days after notice to the Borrower by the Administrative
Agent or the Required Lenders; or

 

(h)           Judgments.  One or more judgments or decrees shall be
entered against Holdings, the Borrower or any of their respective Subsidiaries
(other than an Unrestricted Subsidiary) involving liability of $5,000,000 or
more in the aggregate for all such judgments or decrees (in each case, to the
extent not paid or covered by insurance provided by a carrier that has
acknowledged coverage) and all such judgments or decrees shall not have been
vacated, discharged or stayed pending appeal within 60 days from the entry
thereof; or

 

138

 

(i)            Change of
Control.  A Change of Control shall
occur; or

 

(j)            Guaranty.  Any Guaranty shall cease to be in full force
and effect (except in accordance with the terms thereof), or any Guarantor
shall default in any material respect in the due performance or observance of
any term, covenant or agreement on its part to be performed or observed
pursuant thereto or any Guarantor shall deny or disaffirm any of its
obligations thereunder and such default, denial or disaffirmation shall
continue unremedied for a period of at least 30 days after notice to the
Borrower by the Administrative Agent or the Required Lenders; or

 

(k)           Intercreditor
Agreement.  The Intercreditor
Agreement or any material provision thereof shall cease to be in full force and
effect except in accordance with the terms thereof;

 

then, and in any such event, and at any time thereafter, if any Event
of Default shall then be continuing, the Administrative Agent may, and shall
upon the written request of the Required Lenders, by written notice to the
Borrower, take any or all of the following actions, without prejudice to the
rights of any Agent or any Lender to enforce its claims against the Borrower,
except as otherwise specifically provided for in this Credit Agreement (provided
that, if an Event of Default specified in Section 9.1(e) shall occur with
respect to the Borrower or the Unit Subsidiary, the result which would occur
upon the giving of written notice by the Administrative Agent as specified in
clause (i) below shall occur automatically without the giving of any such
notice):  (i) declare the Total
Commitments terminated, whereupon the Commitments of each Lender shall
forthwith terminate immediately and any accrued and unpaid Unused Line Fee
shall forthwith become due and payable without any other notice of any kind and
declare the principal of and any accrued interest in respect of all Loans and
all other Obligations owing hereunder 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; (ii) direct
the Collateral Agent to enforce any or all of the Liens and security interests
created pursuant to the Collateral Documents; (iii) terminate any Letter
of Credit which may be terminated in accordance with its terms; and/or
(iv) direct the Borrower to pay (and the Borrower hereby agrees upon
receipt of such notice, or upon the occurrence of any Event of Default
specified in Section 9.1(e) in respect of the Borrower, it will pay) to
the Administrative Agent at its Payment Office such additional amounts of cash,
to be held as security for the Borrower’s reimbursement obligations in respect
of Letter of Credit then outstanding equal to 105% of the aggregate of all
Letters of Credit Obligations.

 

If a Default
or an Event of Default resulting from the failure of any of the Credit Parties
to comply with the covenant contained in Section 8.9, 8.10 or 8.11 occurs
during a Trigger Event Compliance Period, the termination of such Trigger Event
Compliance Period shall not result in, or otherwise constitute, the cure or
waiver of such Default or Event of Default.

 

139

 

ARTICLE 10

 

The Agents

 

10.1         Appointment.  (a)  Each Lender hereby designates
BofA as Administrative Agent (for purposes of this Section 10, the term
“Administrative Agent” shall include BofA as Collateral Agent under the
Collateral Documents), in each case to act as specified herein and in the other
Credit Documents.  Each Lender hereby
appoints DBTCA as Syndication Agent, in each case to act as specified herein
and in the other Credit Documents.  Each
Lender hereby appoints Citicorp USA, Inc., Wells Fargo Bank, N.A. and Lehman
Commercial Paper Inc. as Co-Documentation Agents, in each case to act as
specified herein and in the other Credit Documents.  Each Lender hereby irrevocably authorizes,
and each holder of any Note or participation in any Letter of Credit by the
acceptance of a Note or participation shall be deemed irrevocably to authorize,
each Agent to take such action on its behalf under the provisions of this
Credit Agreement and the Notes and any other instruments and agreements
referred to herein and to exercise such powers and to perform such duties
hereunder and thereunder as are specifically delegated to or required of such
Agent by the terms hereof and thereof and such other powers as are reasonably
incidental thereto.  Each Agent may
perform any of its duties herein by or through its respective officers,
directors, agents, employees or affiliates. 
Subject to the various Credit Documents, the Collateral Agent shall hold
all Collateral and the Administrative Agent shall hold all payments of
principal, interest, Fees, charges and Expenses received pursuant to this
Credit Agreement or any other Credit Document for the benefit of the Lenders to
be distributed as provided herein and therein. 
Each Agent may perform any of its duties hereunder by or through its
agents or employees.

 

(b)           The provisions of
this Article 10 are solely for the benefit of the Agents and the Lenders,
and neither Holdings, the Borrower nor any of their respective Subsidiaries
shall have any rights as a third party beneficiary of any of the provisions
hereof (other than Sections 10.9 and 10.10(c)).  In performing its functions and duties under
this Credit Agreement, each Agent shall act solely as agent of the Lenders and
does not assume and shall not be deemed to have assumed any obligation toward
or relationship of agency or trust with or for Holdings, the Borrower or any of
their respective Subsidiaries.

 

10.2         Nature of Duties.  No Agent shall have any duties or
responsibilities except those expressly set forth in this Credit Agreement and
the other Credit Documents.  No Agent nor
any of its officers, directors, employees or agents shall be liable for any
action taken or omitted by it as such hereunder or thereunder or in connection
herewith or therewith, unless caused by its or their gross negligence or
willful misconduct.  The duties of each
Agent shall be mechanical and administrative in nature; no Agent shall have by
reason of this Credit Agreement or any of the other Credit Documents a
fiduciary relationship in respect of any Lender; and nothing in this Credit
Agreement or any of the other Credit Documents, expressed or implied, is
intended to or shall be so construed as to impose upon any Agent any obligations
in respect of this Credit Agreement or any of the other Credit Documents except
as expressly set forth herein or therein.

 

10.3         Lack of Reliance on the Agents.  (a)  Independently and without
reliance upon any Agent, each Lender, to the extent it deems appropriate, has
made and shall continue to

 

140

 

make (i) its own
independent investigation of the financial or other condition and affairs of
Holdings, the Borrower and their respective Subsidiaries in connection with the
taking or not taking of any action in connection herewith and (ii) its own
appraisal of the creditworthiness of Holdings, the Borrower and their
respective Subsidiaries, and, except as expressly provided in this Credit
Agreement, no Agent shall have any duty or responsibility, either initially or
on a continuing basis, to provide any Lender with any credit or other
information with respect thereto, whether coming into its possession before the
making of any Loans or at any time or times thereafter.

 

(b)           No Agent shall be
responsible to any Lender for any recitals, statements, information,
representations or warranties herein or in any document, certificate or other
writing delivered in connection herewith or for the execution, effectiveness,
genuineness, validity, enforceability, collectibility, priority or sufficiency
of this Credit Agreement or any of the other Credit Documents (or for the
validity, perfection or priority of any Liens purported to be created or
granted pursuant thereto) or the financial or other condition of Holdings, the
Borrower or any of their respective Subsidiaries. No Agent shall be required to
make any inquiry concerning either the performance or observance of any of the
terms, provisions or conditions of this Credit Agreement or any of the other
Credit Documents, or the financial condition of Holdings, the Borrower or any
of their respective Subsidiaries, or the existence or possible existence of any
Default or Event of Default.

 

10.4         Certain Rights of the Agents.  Each Agent shall have the right to request
instructions from the Required Lenders at any time.  If any Agent shall request instructions from
the Required Lenders with respect to any act or action (including the failure
to act) in connection with this Credit Agreement or any of the other Credit
Documents, such Agent shall be entitled to refrain from such act or taking such
action unless and until such Agent shall have received instructions from the
Required Lenders and such Agent shall not incur liability to any Person by
reason of so refraining.  Without
limiting the foregoing, no Lender shall have any right of action whatsoever
against any Agent as a result of such Agent acting or refraining from acting
hereunder or under any other Credit Document in accordance with the
instructions of the Required Lenders.

 

10.5         Reliance by the Agents.  Each Agent shall be entitled to rely, and
shall be fully protected in relying, upon any note, writing, resolution,
notice, statement, certificate, telex, teletype or telecopier message,
cablegram, radiogram, order or other documentary, teletransmission or telephone
message believed by it to be genuine and correct and to have been signed, sent
or made by the proper Person.  Each Agent
may consult with legal counsel (including counsel for Holdings and the Borrower
with respect to matters concerning Holdings, the Borrower and their respective
Subsidiaries), independent public accountants and other experts selected by it
and shall not be liable for any action taken or omitted to be taken by it in
good faith in accordance with the advice of such counsel, accountants or
experts.

 

10.6         Indemnification.  To the extent that any Agent is not
reimbursed and indemnified by Holdings or the Borrower, each Lender will
reimburse and indemnify such Agent and any affiliate thereof, in proportion to
its percentage voting interest as in effect from time to time for purposes of
determining the Required Lenders (for this purpose, determined as if there were
no Defaulting Lenders and, from and after any date upon which all Obligations
have been

 

141

 

paid in full, with such
determinations to be made immediately prior to giving effect to such repayment
in full), for and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses (including
counsel fees and disbursements) or disbursements of any kind or nature
whatsoever (including all Expenses) which may be imposed on, incurred by or
asserted against such Agent and any affiliate thereof in performing its duties
hereunder or under any other Credit Document, or in any way relating to or
arising out of this Credit Agreement or any other Credit Document; provided,
that no Lender shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from such Agent’s (or such affiliate’s)
gross negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and unappealable decision).  The agreements contained in this Section
shall survive any termination of this Credit Agreement and the other Credit
Documents and the payment in full of the Obligations.

 

10.7         Each Agent in its Individual
Capacity.  With respect to its
obligation to lend under this Credit Agreement, the Loans made by it and the
Notes issued to it, and its participation in Letters of Credit issued
hereunder, each Agent shall have the same rights and powers hereunder as any
other Lender or holder of a Note or participation interests and may exercise
the same as though it was not performing the duties specified herein; and the
terms “Lenders”, “Required Lenders”, “holders of Revolving Notes”, “holders of
Term Notes” or any similar terms shall, unless the context clearly otherwise
indicates, include each Agent in its individual capacity.  Each Agent may accept deposits from, lend
money to, acquire equity interests in, and generally engage in any kind of
banking, trust, financial advisory or other business with Holdings or Borrower
or any Affiliate thereof as if it were not performing the duties specified
herein, and may accept fees and other consideration from Holdings, the Borrower
or an Affiliate thereof for services in connection with this Credit Agreement
and otherwise without having to account for the same to the Lenders.

 

10.8         Holders of Notes.  The Administrative Agent may deem and treat
the payee of any Note as the owner thereof for all purposes hereof unless and
until a written notice of the assignment or transfer thereof shall have been
filed with the Administrative Agent.  Any
request, authority or consent of any Person who, at the time of making such
request or giving such authority or consent, is the holder of any Note, shall
be conclusive and binding on any subsequent holder, transferee or assignee of
such Note or of any Note or Notes issued in exchange therefor.

 

10.9         Resignation by the Agents; Successor
Agents; etc.  (a)  The
Administrative Agent may, upon five Business Days’ notice to the Lenders and
the Borrower, resign at any time (effective upon the appointment of a successor
Administrative Agent pursuant to the provisions of this Section 10.9) by
giving written notice thereof to the Lenders and the Borrower.  Upon any such resignation, the Required
Lenders shall have the right, upon five days’ notice and written approval by
the Borrower (which approval shall not be unreasonably withheld or be required
at any time while an Event of Default exists), to appoint a successor
Administrative Agent.  If no successor
Administrative Agent (i) shall have been so appointed by the Required
Lenders, and (ii) shall have accepted such appointment, within thirty days
after the retiring Administrative Agent’s giving of notice of resignation,
then, upon five days’ notice, the retiring Administrative Agent may, on behalf
of the Lenders, appoint a successor Administrative

 

142

 

Agent.  In the event that no successor Administrative
Agent is appointed pursuant to the foregoing provisions, the Administrative
Agent’s resignation shall become effective on the date which is forty-five days
after the retiring Administrative Agent’s giving of notice of resignation, and
the Required Lenders shall perform the duties of the Administrative Agent
hereunder.

 

(b)           The Syndication
Agent and each Co-Documentation Agent may, upon five Business Days’ notice to
the Borrower, the Administrative Agent and the Lenders, resign at any time
(effective upon the fifth Business Day after the giving of such notice).

 

(c)           Upon the acceptance
of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations under this Credit Agreement
and the other Credit Documents.

 

(d)           After any retiring Agent’s
resignation hereunder as such, the provisions of this Article 10 shall
inure to its benefit as to any actions taken or omitted to be taken by it while
it was an Agent under this Credit Agreement.

 

10.10       Collateral Matters.  (a)  Each Lender authorizes and
directs the Collateral Agent to enter into the Collateral Documents for the
benefit of the Lenders. Each Lender hereby agrees, and each holder of any Note
or participant in Letters of Credit by the acceptance thereof will be deemed to
agree, that, except as otherwise set forth herein, any action taken by the
Required Lenders in accordance with the provisions of this Credit Agreement or
any of the Collateral Documents, and the exercise by the Required Lenders, of
the powers set forth herein or therein, together with such other powers as are
reasonably incidental thereto, shall be authorized and binding upon all of the
Lenders.  The Collateral Agent is hereby
authorized on behalf of all of the Lenders, without the necessity of any notice
to or further consent from any Lender, from time to time prior to an Event of
Default, to take any action with respect to any Collateral or Collateral
Documents which may be necessary to perfect and maintain perfected the security
interest in and Liens upon the Collateral granted pursuant to the Collateral
Documents.

 

(b)           The Lenders hereby
irrevocably authorize the Collateral Agent, at its option and in its
discretion, upon the direction of the Administrative Agent to release any Lien
granted to or held by the Collateral Agent upon any Collateral (i) upon
termination of the Total Commitments and payment and satisfaction of all of the
Obligations arising under or in respect of this Credit Agreement and the other
Credit Documents, (ii) constituting property being sold or disposed of if
the Credit Party disposing of such property certifies to the Administrative
Agent and the Collateral Agent that the sale or disposition is made in
compliance with Section 8.1 (and the Agents may rely conclusively on any such
certification, without further inquiry), (iii) constituting property in
which no Credit Party owned any interest at the time the Lien was granted or at
any time thereafter or (iv) constituting property leased to a Credit Party
under a lease that has expired or been terminated in a transaction permitted
under this Agreement.  The Collateral
Agent may, in its discretion with the prior written authorization of the
Administrative Agent, release its Liens on Collateral valued in the aggregate
not in excess of $2,000,000 during each Fiscal Year without the prior written
authorization of any Lender.  Upon
request by the

 

143

 

Administrative Agent at any time, the Lenders
will confirm in writing the Collateral Agent’s authority to release particular
types or items of Collateral pursuant to this Section 10.10.

 

(c)           Upon any sale and
transfer (by dividend, contribution or otherwise) of Collateral which is
permitted pursuant to the terms of this Credit Agreement, or consented to in
writing by the Required Lenders, or all of the Lenders, as applicable, and upon
at least five (5) Business Days’ (or such shorter period as is acceptable to
the Collateral Agent) prior written request by the Borrower, the Collateral
Agent shall (and is hereby irrevocably authorized by the Lenders to) execute
such documents as may be necessary to evidence the release of the Liens granted
to the Collateral Agent for the benefit of the Lenders pursuant to the
Collateral Documents upon the Collateral that was sold or transferred; provided
that (i) the Collateral Agent shall not be required to execute any such
document on terms which, in the Collateral Agent’s opinion, would expose the
Collateral Agent to liability or create any obligation or entail any
consequence other than the release of such Liens without recourse,
representation or warranty, (ii) such release shall not in any manner
discharge, affect or impair the Obligations or any Liens upon (or obligations
of Holdings, the Borrower or any of their respective Subsidiaries in respect
of) all interests retained by Holdings, the Borrower or any of their respective
Subsidiaries, including, without limitation, the proceeds of the sale, all of
which shall continue to constitute part of the Collateral and (iii) the
Collateral Agent shall not be required to release any Lien in Collateral sold
or transferred by Holdings, the Borrower or any of their respective
Subsidiaries to any other of Holdings, the Borrower or any of their respective
Subsidiaries except for cash and cash equivalents distributed to Holdings in
accordance with the terms of this Credit Agreement and Collateral transferred
to an Unrestricted Subsidiary in accordance with the terms of this Credit
Agreement.  In the event of any
foreclosure or similar enforcement action with respect to any of the
Collateral, the Collateral Agent shall be authorized to deduct all of the
Expenses reasonably incurred by the Collateral Agent from the proceeds of any
such sale, transfer or foreclosure.

 

(d)           The Collateral Agent
shall have no obligation whatsoever to the Lenders or to any other Person to
assure that the Collateral exists or is owned by Holdings, the Borrower or any
of their respective Subsidiaries or is cared for, protected or insured or that
the Liens granted to the Collateral Agent herein or in any other Credit
Document or pursuant hereto or thereto have been properly or sufficiently or
lawfully created, perfected, protected or enforced or are entitled to any
particular priority, or to exercise or to continue exercising at all or in any
manner or under any duty of care, disclosure or fidelity any of the rights,
authorities and powers granted or available to the Collateral Agent in this
Section 10.10 or in any of the Collateral Documents, it being understood
and agreed that in respect of the Collateral, or any act, omission or event
related thereto, the Collateral Agent may act in any manner it may deem
appropriate, in its sole discretion, given the Collateral Agent’s own interest
in the Collateral as one of the Lenders and that the Collateral Agent shall
have no duty or liability whatsoever to the Lenders, except for its gross
negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision).

 

10.11       Co-Collateral Agents; Separate
Collateral Agents.  (a)  If
at any time or times it shall be necessary or, in the judgment of the
Collateral Agent, desirable, then the Collateral Agent shall be entitled to
appoint one or more separate collateral agents, sub-collateral agents or
co-collateral agents, and in such case the Collateral Agent, the Borrower and
each of

 

144

 

the other Credit Parties having
an interest in the Collateral with respect to which such separate or sub-collateral
agent or co-collateral agent is to act shall execute and deliver all
instruments and agreements necessary or proper to constitute another bank,
trust company or other entity, or one or more individuals approved by the
Collateral Agent, either to act as co-collateral agent or co-collat­eral agents
jointly with the Collateral Agent origin­ally named herein or any successor or
successors, or to act as a separate or sub-collateral agent or agents of the
Collateral Agent and the Secured Creditors in respect of any or all of the
Collateral.  If the Borrower and each of
the other Credit Parties having an interest in the Collateral with respect to
which such separate or sub-collateral agent or co-collateral agent is to act
shall not have joined in the execution of such instruments or agreements within
10 days after the receipt of a written request from the Collateral Agent so to
do, or if a Default or an Event of Default shall be continuing, the Collateral
Agent may act under the foregoing provisions of this Section 10.11 without
the concurrence of the Borrower or any other Credit Party, and the Borrower and
each of the other Credit Parties hereby irrevocably appoint the Collateral
Agent as their agent and attorney to act for them under the foregoing provisions
of this Section 10.11 in either of such con­tingencies.

 

(b)           Every separate or
sub-collateral agent (and all references herein to a “separate collateral
agent” shall be deemed to refer also to a “sub-collateral agent” or a
“collateral sub-agent”) and every co-collateral agent, other than any
collateral agent which may be appointed as successor to any Collateral Agent,
shall, to the extent permitted by applicable law, be appointed and act and be
such, subject to the following provisions and conditions, namely:

 

(i)            all rights,
remedies, powers, duties and obligations conferred upon, reserved to or imposed
upon the Collateral Agent hereunder shall be con­ferred, reserved or imposed
and exercised or performed by the Collateral Agent and such separate collateral
agent or separate collateral agents or co-collateral agent or co-collateral
agents, jointly or severally, as shall be provided in the instrument appointing
such separate collateral agent or separate collateral agents or co-collateral
agent or co-collateral agents, except to the extent that, under any law of any
jurisdiction in which any particular act or acts are to be performed, the
Collateral Agent shall be incompetent or unqualified to perform such act or
acts, in which event such rights, remedies, powers, duties and obligations
shall be exercised and performed by such separate collateral agent or separate
collateral agents or co-collateral agent or co-collateral agents;

 

(ii)           no power given
hereby to, or which it is provided hereby may be exercised by, any such
separate collateral agent or separate collateral agents or co-collateral agent
or co-collateral agents shall be exercised hereunder by such separate
collateral agent or separate collateral agents or co-collateral agent or co-collateral
agents except (subject to applicable law) jointly with, or with the consent or
at the direction in writing of, the Collateral Agent;

 

(iii)          all provisions of
this Credit Agreement and any relevant Collateral Document relating to the
Collateral Agent or to releases of Collateral shall apply to any such separate
collateral agent or separate collateral agents or co-collateral agent or co-collateral
agents;

 

145

 

(iv)          no collateral agent
constituted under this Section 10.11 shall be personally liable by reason
of any act or omission of any other separate or co-collateral agent or the
Collateral Agent hereunder; and

 

(v)           the Collateral Agent
at any time by an instrument in writing, ex­ecuted by it, may accept the
resignation of any such separate collateral agent or co-collateral agent and
the Collateral Agent or the Required Lenders may individually or jointly remove
any such separate collateral agent or co-collateral agent, and in that case, by
an instrument in writing executed by the Collateral Agent or the Required
Lenders, as the case may be, and the Collateral Agent or the Required Lenders,
as the case may be, may appoint a successor to such separate collateral agent
or co-collateral agent, as the case may be, anything herein contained to the
contrary notwithstanding.  If the
Borrower and each of the other Credit Parties shall not have joined in the
execution of any such instrument within 10 days after the receipt of a written
request from the Collateral Agent so to do, or if a Default or an Event of
Default shall be continuing, the Collateral Agent shall have the power to
accept the resignation of or remove any such separate collateral agent or co-collateral
agent and to appoint a successor to such separate collateral agent or co-collateral
agent, as the case may be, and to execute any such instrument without the
concurrence of the Borrower or any other Credit Party, and the Borrower and
each of the other Credit Parties hereby irrevocably appoint the Collateral
Agent their agent and attorney to act for them in such connection in either of
such contingencies. If the Collateral Agent shall have appointed a separate
collateral agent or separate collateral agents or co-collateral agent or co-collateral
agents as above provided, the Collateral Agent may at any time, by an
instrument in writing, accept the resignation of or remove any such separate
collateral agent or co-collateral agent, the successor to any such separate
collateral agent or co-collateral agent to be appointed by the Borrower and
each of the other Credit Parties and the Collateral Agent, or by the Collateral
Agent alone, as hereinabove provided in this Section 10.11.

 

(c)           Without limiting the
foregoing, each of the parties to this Credit Agreement (and each other Credit
Party) hereby agrees to the appointment of each of DBTCA and BTCC, as
sub-collateral agent of the Collateral Agent, for the purposes set forth in
Section 10.15 of the U.S. Security Agreement.

 

10.12       Actions with Respect to Defaults.  In addition to the Administrative Agent’s
right to take actions on its own accord as permitted under this Credit
Agreement, the Administrative Agent shall take such action with respect to an
Event of Default as shall be directed by the Required Lenders; provided
that, (i) 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 Event of
Default as it shall deem advisable and in the best interests of the Lenders and
(ii) the Administrative Agent shall not be required to take any action as
shall be directed by the Required Lenders if doing so would be contrary to any
Credit Document or applicable law or would expose the Administrative Agent to
liability.

 

10.13       Delivery of Information.  No Agent shall be required to deliver to any
Lender originals or copies of any documents, instruments, notices,
communications or other

 

146

 

information received by such
Agent from Holdings, the Borrower, any Subsidiary, the Required Lenders, any
Lender or any other Person under or in connection with this Credit Agreement or
any other Credit Document except (i) as specifically provided in this Credit
Agreement or any other Credit Document and (ii) as specifically requested from
time to time in writing by any Lender with respect to a specific document,
instrument, notice or other written communication received by and in the
possession of the Administrative Agent at the time of receipt of such request
and then only in accordance with such specific request.

 

10.14       The Syndication Agent and the
Co-Documentation Agents. 
Notwithstanding any other provision of this Credit Agreement or any
provision of any other Credit Document, the Syndication Agent and each
Co-Documentation Agent is named as such for recognition purposes only, and in
their respective capacities as such shall have no powers, rights, duties,
responsibilities or liabilities with respect to this Credit Agreement or the
other Credit Documents or the transactions contemplated hereby and
thereby.  Without limitation of the
foregoing, the Syndication Agent shall not, and none of the Co-Documentation
Agents shall, solely by reason of this Credit Agreement or any other Credit
Document, have any fiduciary relationship in respect of any Lender or any other
Person.

 

ARTICLE 11

 

Miscellaneous

 

11.1         Submission to Jurisdiction; Waivers.  Each of Holdings and the Borrower hereby
irrevocably and unconditionally:

 

(a)           submits for itself
and its property in any legal action or proceeding relating to this Credit
Agreement or any of the other Credit Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the non-exclusive
general jurisdiction of the courts of the State of New York located in the
County of New York, the Courts of the United States of America for the
Southern District of New York and appellate courts from any thereof;

 

(b)           consents that any
such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in
an inconvenient court and agrees not to plead or claim the same;

 

(c)           agrees that service
of process in any such action or proceeding may be effected by mailing a copy
thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to Holdings or the Borrower, as applicable, at its
address set forth in Section 11.5 or at such other address for such
Persons which the Administrative Agent shall have been notified pursuant
thereto;

 

(d)           agrees that nothing
herein shall affect the right to effect service of process in any other manner
permitted by law or shall limit the right to sue in any other jurisdiction;

 

(e)           to the extent
permitted by law, waives the right to assert any setoff, counterclaim or cross-claim
in respect of, and all statutes of limitations which may be relevant

 

147

 

to, such action or proceeding (other than
compulsory counterclaims), provided that nothing in this clause (e)
shall preclude a separate action asserting any such claims; and

 

(f)            waives due
diligence, demand, presentment and protest and any notices thereof as well as
notice of nonpayment.

 

11.2         Waiver of Jury Trial.  EACH PARTY HERETO HEREBY WAIVES ANY RIGHT TO
A TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF THIS CREDIT AGREEMENT,
THE OTHER CREDIT DOCUMENTS OR ANY OTHER AGREEMENTS OR TRANSACTIONS RELATED
HERETO OR THERETO.

 

11.3         Governing Law.  THE
VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS CREDIT AGREEMENT SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO CONFLICT
OF LAWS PROVISIONS).

 

11.4         Delays: Partial Exercise of Remedies.  No delay or omission of any Agent, the
Issuing Lender or the Lenders to exercise any right or remedy hereunder,
whether before or after the occurrence of any Event of Default, shall impair
any such right or shall operate as a waiver thereof or as a waiver of any such
Event of Default.  No single or partial
exercise by any Agent, the Issuing Lender or the Lenders of any right or remedy
shall preclude any other or further exercise thereof, or preclude any other
right or remedy.

 

11.5         Notices.  Except as otherwise expressly provided
herein, all notices and other communications provided for hereunder shall be in
writing (including telegraphic, telex, telecopier or cable communication) and
mailed, telegraphed, telexed, telecopied, cabled or delivered:  if to any Credit Party, at the address
specified opposite its signature below or in the other relevant Credit
Documents; if to any Lender, at its address specified on Schedule II; and if to
the Administrative Agent, at the address set forth in the definition of
“Payment Office” contained in this Credit Agreement; or, as to any Credit Party
or the Administrative Agent, at such other address as shall be designated by
such party in a written notice to the other parties hereto and, as to each
Lender, at such other address as shall be designated by such Lender in a
written notice to the Borrower and the Administrative Agent.  All such notices and commun­ications shall,
when mailed, telegraphed, telexed, telecopied, or cabled or sent by overnight
courier, be effective when deposited in the mails, delivered to the telegraph
company, cable company or overnight courier, as the case may be, or sent by
telex or telecopier, except that notices and communications to the
Administrative Agent or any Credit Party shall not be effective until received
by the Administrative Agent or such Credit Party.

 

11.6         Benefit of Agreement.  (a)  This Credit Agreement shall be
binding upon and inure to the benefit of and be enforceable by the parties
hereto and the respective successors and assigns of the parties hereto, provided
that neither Holdings nor the Borrower may assign or transfer any of its
interests or obligations hereunder, without the prior written consent of the
Lenders and provided  further, that the rights of each Lender to
transfer, assign or grant participations in its rights and/or obligations
hereunder shall be limited as set forth below in this Section 11.6, provided
that (i) nothing in this Section 11.6 shall prevent or prohibit any
Lender from pledging its rights under this Credit Agreement and/or its Loans
and/or Notes hereunder to

 

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a Federal Reserve Bank in
support of borrowings made by such Lender from such Federal Reserve Bank and
(ii) with prior notification to the Administrative Agent and the Borrower
(but without the consent of the Administrative Agent or the Borrower), any
Lender which is a fund may pledge all or any portion of its Loans and Notes to
its trustee or to a collateral agent providing credit or credit support to such
Lender in support of its obligations to its trustee or such collateral agent,
as the case may be.  No pledge pursuant
to the last proviso in the immediately preceding sentence shall release the
transferor Lender from any of its obligations hereunder.

 

(b)           Each Lender shall
have the right to transfer, assign or grant participations in all or any part
of its remaining rights and obligations hereunder on the basis set forth below
in this clause (b).

 

(A)          Assignments.  Each Lender may assign pursuant to an
Assignment and Assumption Agreement substantially in the form of Exhibit Q-1
hereto (an “Assignment and Assumption Agreement”) all or a portion of
its rights and obligations hereunder pursuant to this clause (b)(A) to
(x)(i) its parent company and/or any affiliate of such Lender which is at
least 50% owned by such Lender or its parent company, (ii) one or more
Lenders or (iii) any fund that invests in bank loans and is managed or
advised by the same investment advisor of a Lender or by an Affiliate of such
investment advisor or (y) one or more other Eligible Transferees (treating
any fund that invests in loans and any other fund that invests in loans and is
managed or advised by the same investment advisor of such fund or by an
Affiliate of such investment advisor as a single Eligible Transferee), provided
that any assignments of Revolving Credit Commitments pursuant to
clause (x) above shall require the consent of each Issuing Lender, which
consents shall not be unreasonably withheld or delayed; provided further
that any assignments pursuant to clause (y) above shall be not less than
$1,000,000 in the case of such Lender’s Term Loan or $5,000,000 in the case of
such Lender’s Revolving Credit Commitment (or, in each case, if less, the
entire amount of the assigning Lender’s Commitments and outstanding Loans at
such time), and shall require the consents of (i) the Administrative
Agent, (ii) in connection with any assignment of all or any portion of
Total Revolving Credit Commitments, each Issuing Lender and (iii) when no
Default under Section 9.1(a) or 9.1(e) then exists and no Event of Default
then exists, the Borrower, each of which consents shall not be unreasonably
withheld or delayed.  Any assignment to
another Lender pursuant to this clause (b)(A) will become effective upon
the payment to the Administrative Agent by either the assigning or the assignee
Lender of a nonrefundable assignment fee of $3,500 (provided that (i) no
such fee shall be payable in the event of assignments from any Lender to a fund
that invests in loans and is managed or advised by the same investment advisor
as such assigning Lender (or by an Affiliate of such investment advisor) and
(ii) contemporaneous assignments by a Lender to two or more Eligible
Transferees that are funds that invest in loans which are managed or advised by
the same investment advisor (or an Affiliate thereof) shall be treated as one
assignment for the purposes of the aforementioned assignment fee) and the
recording by the Administrative Agent of such assignment, and the resultant
effects thereof on the Loans and Commitments of the assigning Lender and the
assignee Lender, in a register maintained by the Administrative Agent as agent
of the Borrower for this purpose (the “Register”), the Administrative
Agent hereby agreeing to effect such recordation no later

 

149

 

than five Business Days after its receipt of a written notification by
the assigning Lender and the assignee Lender of the proposed assignment.  Assignments pursuant to clause (b)(A)
will only be effective if the Administrative Agent shall have received a
written notice in the form of Exhibit Q-2 hereto from the assigning Lender and
the assignee.  No later than five
Business Days after its receipt of such written notice, the Administrative
Agent will record such assignment, and the resultant effects thereof on the
Loans and Commitments of the assigning Lender, in the Register, at which time
such assignment shall become effective. 
Notwithstanding the foregoing, the Administrative Agent may, but shall
not be required to, record any assignment in the Register on or after the date
on which any proposed amendment, modification or supplement in respect of this
Credit Agreement has been circulated to the Lenders for approval until the
earlier of (x) the effectiveness of such amendment, modification or
supplement in accordance with Section 11.10 or (y) 30 days following
the date on which such proposed amendment, modification or supplement was
circulated to the Lenders.  Upon the
effectiveness of any assignment pursuant to clause (b)(A)(y), (x) the
assignee will become a “Lender” for all purposes of this Credit Agreement and
the other Credit Documents with the Loans and a Commitment as so recorded by
the Administrative Agent in the Register, and to the extent of such assignment,
the assigning Lender shall be relieved of its obligations hereunder with
respect to the portion of its Commitment being assigned and (y) the
Borrower shall issue new Notes (in exchange for the Note or Notes of the
assigning Lender) to the assigning Lender (to the extent such Lender’s
Commitments and outstanding Loans are not reduced to zero as a result of such
assignment) and to the assignee Lender, in each case to the extent requested by
the assigning Lender or assignee Lender, as the case may be, to the extent
needed to reflect the revised Commitments and outstanding Loans of such
Lenders.  The Administrative Agent will
(x) notify the Issuing Lender with respect to outstanding Letters of
Credit within 5 Business Days of the effectiveness of any assignment hereunder
and (y) prepare on the last Business Day of each calendar quarter during
which an assignment has become effective pursuant to this clause (b)(A) a
new Schedule I giving effect to all such assignments effected during such
quarter and will promptly provide same to the Borrower and each of the
Lenders.  To the extent that an
assignment of all or any portion of a Lender’s rights and obligations hereunder
would, at the time of such assignment, result in increased payment obligations
under Section 2.9, 4.5 or 4.11 from those being charged by the respective
assigning Lender prior to such assignment, then the Borrower shall not be
obligated to pay such increased amounts (although the Borrower shall be
obligated to pay any other increased amounts of the type described above
resulting from changes after the date of the respective assignment).  The Borrower agrees to indemnify the
Administrative Agent from and against any and all losses, claims, damages and
liabilities of whatsoever nature which may be imposed on, asserted against or
incurred by the Administrative Agent in performing its duties under this
Section 11.6 other than those resulting from the Administrative Agent’s
willful misconduct or gross negligence (as determined by a court of competent
jurisdiction in a final and unappealable decision).  The Register shall be available for
inspection by the Borrower and any Lender at any reasonable time during normal
business hours of the Administrative Agent upon reasonable prior notice.

 

(B)           Participations.  Each Lender may transfer, grant or assign
participations in all or any part of such Lender’s interests and obligations
hereunder pursuant to this

 

150

 

clause (b)(B) to any Eligible Transferee, provided that
(i) such Lender shall remain a “Lender” for all purposes of this Credit
Agreement and the transferee of such participation shall not constitute a
Lender hereunder, (ii) no participant under any such participation shall
have rights to approve any amendment to or waiver of this Credit Agreement or
any other Credit Document except to the extent such amendment or waiver would
(x) extend the final scheduled maturity of any of the Loans or the
Commitments in which such participant is participating (it being understood
that a waiver of a mandatory reduction in the Total Commitments or the waiver
of the application of any prepayment to the Loans shall not constitute the
extension of the final scheduled maturity of any Loan or Commitment),
(y) reduce the interest rate (other than as a result of waiving the
applicability of any post-default increases in interest rates) or Fees or
postpone the payment or reduce the amount thereof or (z) release all or
substantially all of the Collateral (except as expressly provided in the Credit
Documents) and (iii) the Borrower, the Administrative Agent and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Credit
Agreement.  In the case of any such
participation, the participant shall not have any rights under this Credit
Agreement or any of the other Credit Documents (the participant’s rights
against the granting Lender in respect of such participation to be those set
forth in the agreement with such Lender creating such participation) and all
amounts payable by the Borrower hereunder shall be determined as if such Lender
had not sold such participation, provided that such participant shall be
entitled to receive additional amounts under Sections 2.9 (to the extent
that such participant complies with such Section, including clause (b) thereof,
as if it were a Lender), 2.10, 4.5 and 4.11 on the same basis as if it were a
Lender to the extent that the Lender granting such participation would be
entitled to such benefit if the participation had not been made.  In addition, each agreement creating any
participation must include an agreement by the participant to be bound by the
provisions of Section 11.7 of this Credit Agreement.

 

(c)           Notwithstanding any
other provisions of this Section 11.6, no transfer or assignment of the
interests or obligations of any Lender hereunder or any grant of participations
therein shall be permitted if such transfer, assignment or grant would require
the Borrower to file a registration statement with the SEC or to qualify the
Loans under the “Blue Sky” laws of any State.

 

(d)           (I) If any
Lender becomes a Defaulting Lender, (II) upon the occurrence of any event
giving rise to the operation of Section 2.9, 4.3(c)(ii) or 4.11 with
respect to such Lender (and not other Lenders generally) or (III) in the
case of a refusal by a Lender to consent to certain proposed changes, waivers,
discharges or terminations with respect to this Agreement which have been
approved by the Required Lenders as (and to the extent) provided in
Section 11.10(a), the Borrower shall have the right, with the consents of
the Administrative Agent and each Issuing Lender (which consents shall not be
unreasonably withheld), if no Default or Event of Default then exists to
replace such Lender (the “Replaced Lender”), either in whole or, if such
Lender is both a Revolving Credit Lender and a Term Loan Lender, with respect
to its Revolving Credit Commitment (and related Obligations) only or its Term
Loan Outstandings only, in each case at the option of the Borrower, with one or
more Eligible Transferees (collectively, the “Replacement Lender”), provided
that (i) at the time of any replacement pursuant to this
Section 11.6(d), the Replacement Lender shall enter into one or

 

151

 

more Assignment and Assumption Agreements
pursuant to Section 11.6(b)(A) (and with all fees payable pursuant to said
Section 11.6(b)(A) to be paid by the Replacement Lender) pursuant to which
the Replacement Lender shall acquire (x) the Revolving Credit Commitment
and related outstanding Revolving Loans of, and participations in Letters of
Credit by, the Replaced Lender, in instances where a Revolving Credit Lender is
being replaced, and (y) the outstanding Term Loans of the Replaced Lender,
in instances where a Term Loan Lender is being replaced and, in each case in
connection therewith, shall pay to (x) the Replaced Lender in respect
thereof an amount equal to the sum of (A) an amount equal to the principal
of, and all accrued interest on, all outstanding Loans of the Replaced Lender
(or the Revolving Loans or Term Loans, as the case may be, of the Replaced
Lender if only such Loans are being acquired pursuant to the respective
replacement), (B) in the case of any replacement of a Revolving Credit
Lender, an amount equal to all drawings under Letters of Credit that have been
funded by (and not reimbursed to) such Replaced Lender, together with all then
unpaid interest with respect thereto at such time, (C) an amount equal to
the increased costs incurred by the Borrower and owing to the Replaced Lender
(or, if the respective Replaced Lender is both a Revolving Credit Lender and a
Term Loan Lender, and is only being replaced with respect to a single such
Tranche, the respective increased costs owing with respect thereto) pursuant to
Sections 2.9 and 4.11 and (D) an amount equal to all accrued, but
theretofore unpaid, Fees owing to the Replaced Lender (or, if the respective
Replaced Lender is both a Revolving Credit Lender and a Term Loan Lender, and
is only being replaced with respect to a single such Tranche, the Fees owing
with respect to such Tranche) pursuant to Article 4 and (y) in the
case of any replacement of a Revolving Credit Lender, the Issuing Lender the
amount of all unreimbursed drawings under Letters of Credit attributable to
such Replaced Lender and (ii) all obligations of the Borrower owing to the
Replaced Lender (other than (x) those specifically described in
clause (i) above in respect of which the assignment purchase price has
been, or is concurrently being, paid and (y) if the respective Replaced
Lender is both a Revolving Credit Lender and a Term Loan Lender and is only
being replaced with respect to a single such Tranche, obligations relating to
the Tranche with respect to which such Lender is not being replaced) shall be
paid in full by the Borrower to such Replaced Lender concurrently with such
replacement.  Upon the execution of the
respective Assignment and Assumption Agreements and the payment of amounts
referred to in clauses (i) and (ii) above the Replacement Lender shall
become a Lender hereunder and the Replaced Lender shall cease to constitute a
Lender hereunder (unless such Lender was both a Revolving Credit Lender and a
Term Loan Lender hereunder, and was only replaced with respect to a single such
Tranche), except with respect to indemnification provisions under this Credit
Agreement, which shall survive as to such Replaced Lender.  In no event may the Borrower replace a Lender
which is also an Issuing Lender or whose Affiliate is an Issuing Lender or
replace any such Lender as a Revolving Credit Lender unless (x) all Letters of
Credit issued by such Lender and its Affiliates have expired or have been
terminated or canceled and such Lender and/or Affiliate, as the case may be,
shall have been reimbursed for all payments made by it under the Letters of
Credit issued by it or (y) such Lender and/or Affiliate, as the case may be,
shall have been indemnified in a manner satisfactory to it for any outstanding
Letters of Credit issued by it and other obligations, absolute or contingent, with
respect to Letters of Credit issued by it.

 

(e)           Each Lender party to
this Credit Agreement on the Effective Date hereby represents, and each Person
that becomes a Lender pursuant to an assignment permitted by the preceding
clause (b)(A) will upon its becoming party to this Credit Agreement
represent, that it is an Eligible Transferee which makes or acquires loans in
the ordinary course of its business and

 

152

 

that it will make or acquire the Loans for its
own account in the ordinary course of such business, provided that
subject to the preceding clauses (a) through (d), 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.

 

11.7         Confidentiality.  Subject to Section 11.6, the Lenders
shall hold all non-public information obtained pursuant to the requirements of
this Credit Agreement which has been identified as such by Holdings or the
Borrower in accordance with such Lenders’ customary procedure for handling
confidential information of this nature and in accordance with safe and sound
banking practices and in any event may make disclosure to its Affiliates,
employees, auditors, advisors, or counsel in connection with the evaluation or
administration of the Loans or as reasonably required by any bona  fide
actual or potential transferee or participant in connection with the
contemplated transfer of any Loans or participation therein, or by any direct
or indirect contractual counterparty in swap agreements or such contractual
counterparty’s professional advisor (so long as such transferee or participant,
or such contractual counterparty or professional advisor, as the case may be,
agrees to be bound by the provisions of this Section 11.7), or as required
in connection with the exercise of remedies under any of the Credit Documents,
or as required in connection with any litigation or proceeding (including,
without limitation, bankruptcy proceeding) to which any Lender or any of its
Affiliates may be a party, or as required or requested by any governmental
agency or representative thereof or pursuant to legal process, provided
that, unless specifically prohibited by applicable law or court order, each
Lender shall use its reasonable best efforts (in accordance with customary
banking procedures) to notify Holdings or the Borrower of any disclosure in
connection with any litigation or proceeding, other than any litigation or
proceeding against any Credit Party, or any request by any governmental agency
or representative thereof (other than any such request in connection with an
examination of the financial condition of such Lender by such governmental
agency) for disclosure of any such non-public information prior to disclosure
of such information, and provided  further, that in no event shall
any Lender be obligated or required to return any materials furnished by
Holdings, the Borrower, any of their respective Subsidiaries or any Equity
Investor.

 

11.8         Indemnification.  (a)  Each of Holdings and the
Borrower shall, jointly and severally, and hereby agrees to jointly and
severally, indemnify, defend and hold harmless each Agent, the Issuing Lender
and each of the Lenders and their respective Affiliates, directors, officers,
agents and employees (the “Indemnitees”) from and against (x) any
and all losses, claims, damages, Taxes, liabilities or expenses incurred by any
of them (except to the extent that it is finally judicially determined to have
resulted from the gross negligence or willful misconduct of the respective
Indemnitee (as determined by a court of competent jurisdiction in a final and
unappealable decision)) arising out of or by reason of any litigations,
investigations, claims or proceedings which arise out of or are in any way
related to (i) this Credit Agreement, any of the other Credit Documents or
any of the transactions contemplated hereby or thereby, (ii) the issuance
of Letters of Credit, (iii) any actual or proposed use by the Borrower of
the proceeds of any Loans or (iv) the Agents’ or the Lenders’ entering
into this Credit Agreement, any of the other Credit Documents or any other
agreements and documents relating hereto, including, without limitation,
amounts paid in any settlement agreed to by Holdings or the Borrower, court
costs and the reasonable fees and disbursements of counsel incurred in
connection with any such litigation, investigation, claim or proceeding or any
advice rendered in

 

153

 

connection with any of the
foregoing (whether or not such lender is a party thereto) and (y) any such
losses, claims (including Environmental Claims), damages, liabilities,
deficiencies, judgments, fees and disbursements (including reasonable
attorneys’ and consultants’ fees and disbursements) or expenses incurred in
connection with any removal, remedial or other action under any Environmental
Laws taken by the Borrower, any of its Subsidiaries or any of the Lenders
(except to the extent resulting from the gross negligence or willful misconduct
of the respective Indemnitee (as determined by a court of competent
jurisdiction in a final and unappealable decision)) or in connection with
compliance by Holdings, the Borrower or any of their respective Subsidiaries, or
any of their respective properties, with any Environmental Laws or in
connection with the actual or alleged presence of Hazardous Materials on any
property of the Borrower or any of its Subsidiaries.

 

(b)           If and to the extent
that any of the Obligations of either Holdings or the Borrower under this
Section 11.8 are unenforceable for any reason, each of Holdings and the
Borrower hereby agrees to make the maximum contribution to the payment and
satisfaction of such Obligations which is permissible under applicable
law.  Each of Holdings’ and the
Borrower’s Obligations hereunder shall survive any termination of this Credit
Agreement and the other Credit Documents and the payment in full of the
Obligations, and are in addition to, and not in substitution of, any other of
their Obligations set forth in this Credit Agreement.

 

(c)           In addition, each of
Holdings and the Borrower shall, upon demand, pay to each Agent and any Lender
all costs and expenses (including the reasonable fees and disbursements of
counsel and other professionals) paid or incurred by such Agent or such Lender
in (i) enforcing or defending its rights under or in respect of this
Credit Agreement, the other Credit Documents or any other document or
instrument now or hereafter executed and delivered in connection herewith,
(ii) in collecting the Loans, (iii) in foreclosing or otherwise
collecting upon the Collateral or any part thereof and (iv) obtaining any
legal, accounting or other advice in connection with any of the foregoing.

 

11.9         Entire Agreement; Successors and
Assigns.  This Credit Agreement and
the other Credit Documents constitute the entire agreement among Holdings, the
Borrower, the Administrative Agent and the Lenders, and supersedes any prior
agreements among them (other than the Fee Letter, which remains in effect), and
shall bind and benefit Holdings, the Borrower, the Administrative Agent and the
Lenders and their respective successors and permitted assigns.

 

11.10       Amendment or Waiver.  (a)  Subject to the provisions of
following clause (c), neither this Credit Agreement nor any other Credit
Document nor any terms hereof or thereof may be changed, waived, discharged or
termi­nated unless such change, waiver, discharge or termination is in writing
signed by the respec­tive Credit Parties party hereto or thereto and the
Required Lenders, provided that no such change, waiver, dis­charge or
termination shall, without the consent of each Lender (other than a Defaulting
Lender) (with Obligations owed to such Lender being directly affected in the
case of following clause (i)), (i) extend the final scheduled
maturity of any Loan or Note (it being understood that any waiver of the
application of any prepayment or the method of application of any prepayment to
the Loans or Notes or any mandatory reduction to the commitments shall not
constitute an extension of the final maturity date of such Loan or Note) or
extend the stated expiration date of any Letter of Credit beyond the Maturity
Date, or reduce the rate or extend the time of pay­ment of interest on any Loan
or Note

 

154

 

or of Fees (except in
connection with the waiver of applicability of any post-default increase in
interest rates), or reduce the principal amount of any Loan or Note (it being
understood that any amendment or modification to the financial defini­tions in
this Credit Agreement, other than any amendment or modification to the amounts
or percentages in the pricing grid or the level of the Consolidated Leverage
Ratio, in either instance, contained in the Applicable Margin definition, or to
Section 1.2 shall not constitute a reduction in the rate of interest or
Fees for the purposes of this clause (i)), (ii) release all or
substantially all of the Collateral (except as expressly provided in the Credit
Documents), (iii) amend, modify or waive any provision of this
Section 11.10 (except for technical amendments with respect to additional
extensions of credit permitted in this Credit Agreement which afford the
protections to such additional extensions of credit of the type provided to the
Term Loans and the Revolving Credit Commitments on the Effective Date),
(iv) reduce the respective percentage specified in the definition of
Required Lenders or Aggregate Supermajority Lenders (it being understood that,
with the consent of the Required Lenders, additional extensions of credit
pursuant to this Credit Agreement may be included in the determination of the
Required Lenders or the Aggregate Supermajority Lenders, as the case may be, on
sub­stantially the same basis as the extensions of Term Loans and Revolving
Credit Commitments are included on the Effective Date) or (v) consent to
the assignment or transfer by the Borrower of any of its rights and obligations
under this Credit Agreement; provided, further, that no such
change, waiver, dis­charge or termination shall (1) increase the
Commitments of any Lender over the amount thereof then in effect without the
consent of such Lender (it being understood that waivers or modifications of
conditions precedent, covenants, Defaults or Events of Default or of a
mandatory reduction in the Total Commitments shall not constitute an increase
of the Commitment of any Lender, and that an increase in the available portion
of any Commitment of any Lender shall not constitute an increase of the
Commitment of such Lender), (2) without the consent of the Issuing Lender,
amend, modify or waive any provision of Article 3 or alter its rights or
obli­ga­tions with respect to Letters of Credit, (3) with­out the consent of
Collateral Agent, amend, modify or waive any provision relating to the rights
or obligations of the Collateral Agent, (4) without the consent of the
Administrative Agent, amend, modify or waive any provision of Article 10
or any other provision as same relates to the rights or obligations of the
Administrative Agent, (5) without the consent of the Majority Lenders of
each Tranche which is being allocated a lesser prepayment, repayment or
commitment reduction as a result of the actions described below (or without the
consent of the Majority Lenders of each Tranche in the case of an amendment to
the definition of Majority Lenders), amend the definition of Majority Lenders
or alter the required application of any prepayments or repayments (or
commitment reductions), as between the various Tranches, pursuant to
Section 2.5 (although the Required Lenders may (i) waive in whole or
in part, any such prepayment, repayment or commitment reduction, so long as the
application as amongst the various Tranches of any such prepayment, repayment
or commitment reduction which is still required to be made is not altered and
(ii) agree to inclusion of additional extensions of credit made after the
Initial Borrowing Date (and not pursuant to commitments as in effect on the Initial
Borrowing Date) on substantially the same basis as other similar extensions of
credit, pursuant to Section 2.5), or (6) without the consent of the
Aggregate Supermajority Lenders (i) increase any percentage specified in
the definition of Adjusted Net Book Value Percentage or specified in
Section 2.2(a)(ii)(B), in any such case above the respective percentage
set forth in such definition or such Section, as the case may be, on the
Effective Date, (ii) increase the sum of the aggregate principal amount of
outstanding Term Loans plus the Total Revolving Credit Commitments to an

 

155

 

amount in excess of
$800,000,000 or (iii) release any Subsidiary Guarantor from its respective
Subsidiaries Guaranty (except as expressly provided in Section 8.1(c) or
in the respective Subsidiaries Guaranty).

 

(b)           If, in connection
with any proposed change, waiver, discharge or termina­tion of any of the
provisions of this Credit Agreement as contemplated by clauses (i) through
(v), inclu­sive, of the first proviso to Section 11.10(a), the consent of
the Required Lenders is obtained but the consent of one or more of such other
Lenders whose consent is required is not obtained, then the Borrower shall have
the right, so long as all non-consenting Lenders whose individual con­sent is
required are treated as described in either clauses (A) or (B) below, to
either (A) replace each such non-consenting Lender or Lenders with one or
more Replacement Lenders pursuant to Section 11.6(d) so long as at the
time of such replacement, each such Replacement Lender consents to the proposed
change, waiver, discharge or termination or (B) terminate such
non-consenting Lender’s Commitments and/or repay the respective Tranche or
Tranches of outstanding Loans of such Lender giving rise to such non-consenting
Lender’s right to consent to such proposed change, waiver, discharge or
termination, provided that, unless the Commitments that are terminated,
and Loans repaid, pursuant to preceding clause (B) are immediately
replaced in full at such time through the addition of new Lenders or the
increase of the Commitments and/or outstand­ing Loans of existing Lenders (who
in each case must specifi­cally consent thereto), then in the case of any
action pursuant to preceding clause (B) the Required Lenders (determined
after giving effect to the proposed action) shall specifically consent thereto,
provided further, that in any event the Borrower shall not have the
right to replace a Lender, terminate its Commitments or repay its Loans solely
as a result of the exercise of such Lender’s rights (and the withholding of any
required consent by such Lender) pursuant to the second proviso to
Section 11.10(a).

 

(c)           Notwithstanding
anything to the contrary contained above in this Section 11.10,
(x) additional Subsidiaries may become parties to the various Credit
Documents as contemplated herein and therein (which shall not require the
approval of any other Credit Parties or Lenders) and (y) amendments and
modifications to the Collateral Documents in connection with the provision of
any Incremental Revolving Credit Commitments by Incremental Revolving Credit
Lenders may be made as contemplated in Section 2.1(e)(ii) (with the
consent of the Administrative Agent and/or the Collateral Agent, as
appropriate).

 

11.11       Nonliability of Administrative Agent,
Collateral Agent and Lenders.  The
relationship between Holdings, the Borrower and their respective Subsidiaries,
on the one hand, and the Lenders, the Administrative Agent and the Collateral
Agent, on the other hand, shall be solely that of debtors and creditors.  None of the Administrative Agent, the
Collateral Agent or any Lender shall have any fiduciary responsibilities to
Holdings, the Borrower, or any of their respective Subsidiaries.  None of the Administrative Agent, the
Collateral Agent or any Lender undertakes any responsibility to Holdings, the
Borrower, or any of their respective Subsidiaries to review or inform Holdings,
the Borrower, or any of their respective Subsidiaries of any matter in
connection with any phase of the business or operations of Holdings, the
Borrower, or any of their respective Subsidiaries.

 

156

 

11.12       Independent Nature of Lenders’ Rights.  The amounts payable at any time hereunder to
each Lender under such Lender’s Note or Notes shall be a separate and
independent debt.

 

11.13       Counterparts.  This Credit Agreement may be executed in any
number of counterparts and by the different parties hereto in 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
instrument.

 

11.14       Effectiveness.  This Credit Agreement shall become effective
on the date (the “Effective Date”) on which (i) Holdings, the
Borrower, the Lenders and the Administrative Agent shall have signed a
counterpart hereof (whether the same or different counterparts) and shall have
delivered the same (including by way of facsimile transmission) to the Administrative
Agent and (ii) the conditions contained in Sections 5.1 and 5.2 are
met to the satisfaction of the Administrative Agent and the Required
Lenders.  Unless the Administrative Agent
has received actual notice from any Lender that the conditions contained in
Sections 5.1 and 5.2 have not been met, upon the satisfaction of the
condition described in clause (i) of the immediately preceding sentence
and upon the Administrative Agent’s good faith determination that the
conditions described in clause (ii) of the immediately preceding sentence
have been met, then the Effective Date shall have been deemed to have occurred,
regardless of any subsequent determination that one or more of the conditions
thereto had not been met.  The
Administrative Agent will give the Borrower and each Lender prompt written
notice of the occurrence of the Effective Date.

 

11.15       Headings Descriptive.  The headings of the several sections and
subsections of this Credit Agreement, and the Table of Contents, are inserted
for convenience only and shall not in any way affect the meaning or
construction of any provision of this Credit Agreement.

 

11.16       Maximum Rate.  Notwithstanding anything to the contrary
contained elsewhere in this Credit Agreement or in any other Credit Document,
the Borrower, the Administrative Agent and the Lenders hereby agree that all
agreements among them under this Credit Agreement and the other Credit
Documents, whether now existing or hereafter arising and whether written or
oral, are expressly limited so that in no contingency or event whatsoever shall
the amount paid, or agreed to be paid, to the Administrative Agent or any
Lender for the use, forbearance, or detention of the money loaned to the
Borrower and evidenced hereby or thereby or for the performance or payment of
any covenant or obligation contained herein or therein, exceed the Highest
Lawful Rate.  If due to any circumstance
whatsoever, fulfillment of any provisions of this Credit Agreement or any of
the other Credit Documents at the time performance of such provision shall be
due shall exceed the Highest Lawful Rate, then, automatically, the obligation
to be fulfilled shall be modified or reduced to the extent necessary to limit
such interest to the Highest Lawful Rate, and if from any such circumstance any
Lender should ever receive anything of value deemed interest by applicable law
which would exceed the Highest Lawful Rate, such excessive interest shall be
applied to the reduction of the principal amount then outstanding hereunder or
on account of any other then outstanding Obligations and not to the payment of
interest, or if such excessive interest exceeds the principal unpaid balance
then outstanding hereunder and such other then outstanding Obligations, such
excess shall be refunded to the Borrower. 
All sums paid or agreed to be paid to the Administrative Agent or any

 

157

 

Lender for the use,
forbearance, or detention of the Obligations and other Indebtedness of the
Borrower to the Administrative Agent or any Lender shall, to the extent
permitted by applicable law, be amortized, prorated, allocated and spread
throughout the full term of such Indebtedness until payment in full so that the
actual rate of interest on account of all such Indebtedness does not exceed the
Highest Lawful Rate throughout the entire term of such Indebtedness.  The terms and provisions of this
Section 11.16 shall control every other provision of this Credit Agreement
and all agreements among the Borrower, the Administrative Agent and the
Lenders.

 

11.17       Right of Setoff.  In addition to and not in limitation of all
rights of offset that any Lender or the Issuing Lender may have under
applicable law, each Lender and the Issuing Lender shall, upon the occurrence
of any Event of Default and whether or not such Lender or such Issuing Lender
has made any demand or the Obligations of any Credit Party are matured, have
the right, upon prior notice to Holdings or the Borrower, to appropriate and
apply to the payment of the Obligations of Holdings or the Borrower or any of
their respective Subsidiaries all deposits (general or special, time or demand,
provisional or final) then or thereafter held by and other Indebtedness or
property then or thereafter owing by such Lender or such Issuing Lender,
including, without limitation, any and all amounts in the Concentration Account
or the Disbursement Account. Each Lender or the Issuing Lender exercising such
rights shall notify the Administrative Agent thereof and any amount received as
a result of the exercise of such rights shall be reallocated among the Lenders
and the Issuing Lender as set forth in Section 2.10 hereof; provided,
however, that failure of the Borrower to receive such notice shall not
impair any Lender’s or the Issuing Lender’s rights hereunder.

 

11.18       Other Credit Documents.  The Lenders hereby authorize the Administra­tive
Agent and the Collateral Agent to enter into or otherwise become bound by the
various Credit Documents (or amendments thereto) attached as exhibits to this
Credit Agreement on their behalf.

 

11.19       Certain Provisions Regarding
Perfection of Security Interests. 
(a)  Notwithstanding anything to
the contrary contained in this Credit Agreement or any of the other Credit
Documents, the Lenders acknowledge and agree that, except to the extent that
further actions are required to be taken in accordance with the terms of
Section 7.13 of this Credit Agreement, (i) with respect to
Non-Certificated Units from time to time held by the Unit Subsidiary,
certificates of title have not been issued with respect thereto and,
accordingly, no notation of a security interest has been made under the titling
statutes of any State in connection therewith and (ii) with respect to
Units from time to time leased to customers, “fixture filings” will not be made
under the provisions of the UCC or the PPSA (or other applicable law) as in
effect in the relevant jurisdiction, both because of the administrative
difficulty of ascertaining whether any such Unit is or becomes a fixture and
the inability of the Borrower and its Subsidiaries to provide the relevant
information which would be required to make such filings.  Notwithstanding the penultimate sentence of
Section 7.13, if the Borrower or any of its Subsidiaries becomes aware
that a Certificate of Title is required to be issued with respect to any
Non-Certificated Unit under applicable law, the Borrower shall take all steps
as may be necessary so that a certificate of title is issued with respect
thereto, on which the security interest of the Collateral Agent is noted.  Furthermore, in the event the Administrative
Agent or the Required Lenders reasonably believes that Certificates of Title
may be required to be issued in connection with Non-Certificated Units located
in any jurisdiction, the Borrower shall promptly

 

158

 

(and in any event within 30
days after its receipt of the respective request) following a request by the
Administrative Agent or the Required Lenders, cause special counsel or special
counsels designated by it (who shall be reasonably acceptable to the
Administrative Agent or the Required Lenders) to issue, with respect to the
laws of a requested jurisdiction or jurisdictions, an opinion in form
reasonably satisfactory to the Administrative Agent and the Required Lenders as
to whether Certificates of Title are required to be issued with respect to any
Non-Certificated Units under the laws of such jurisdiction or jurisdictions
and, whether based thereon or upon the advice of their own counsel, if at any
time the Administrative Agent or the Required Lenders inform the Borrower that
they in good faith believe that Certificates of Title are required to be issued
with respect to any Non-Certificated Unit under applicable law and further request
that the actions described in this sentence be taken, then the Borrower shall
take all steps as may be necessary so that, within 90 days from the date of the
respective request, a certificate of title is issued with respect thereto, on
which the security interest of the Collateral Agent is noted; provided
that unless an Event of Default has occurred and is continuing, the
Administrative Agent or the Required Lenders shall not, in any event, request
an opinion with respect to any one jurisdiction more than once in a calendar
year.  So long as Sections 7.18(a)
and 8.12 of this Credit Agreement are complied with, the provisions of this
Credit Agreement and the other Credit Documents shall be deemed modified to the
extent necessary to permit the foregoing (and so that no violation of this
Credit Agreement or the other Credit Documents exists or shall exist as a
result of the actions permitted to be taken (or not taken) in accordance with
the provisions of preceding clauses (i) and (ii) of the first sentence of
this Section 11.19 unless and until (and then to the extent) required to
be taken in accordance with the two preceding sentences) (including, without
limitation, all conditions precedent, representations, warranties, covenants
and other agreements herein and therein).

 

(b)           Automobiles and
Trucks.  The Borrower and its
Subsidiaries were not required to take steps necessary to perfect the security
interests purported to be created by the Security Agreements in automobiles and
trucks.  The Collateral Agent or the
Required Lenders at any time may, but shall not be required to, request that
the Borrower and/or of the Subsidiary Guarantors take any and all actions with
respect to such automobiles and/or trucks necessary to create a first priority
perfected lien of the Collateral Agent on any automobiles or trucks pledged
pursuant to the relevant Security Agreements.

 

(c)           All provisions of
this Credit Agreement and the other Credit Documents (including, without
limitation, all conditions precedent, representations, warranties, covenants
and other agreements herein and therein) shall be deemed modified to the extent
necessary to effect the provisions set forth in preceding clause (b) (and
to permit the taking of the actions to the extent required pursuant to such clause
rather than as otherwise provided in the Credit Documents); provided,
that (x) to the extent any representation and warranty would not be true
because such actions were not taken on the Effective Date, the respective
representation and warranty shall be required to be true and correct in all
material respects at the time the respective action is taken (or was required
to be taken) in accordance with clause (b) of this Section 11.19 and
(y) all representation and warranties relating to the Collateral Documents
shall be required to be true immediately after the actions required to be taken
by clause (b) of this Section 11.19 have been taken (or were required
to be taken).

 

159

 

11.20       Limitation of Liability.  NO CLAIM MAY BE MADE BY ANY CREDIT PARTY, ANY
LENDER OR ANY OTHER PERSON PARTY HERETO AGAINST ANY AGENT, ANY LENDER OR THE
AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES, COUNSEL, REPRESENTATIVES, AGENTS OR
ATTORNEYS-IN-FACT OF ANY OF THEM FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR
PUNITIVE 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 CREDIT AGREEMENT OR ANY OTHER CREDIT DOCUMENT, OR ANY ACT, OMISSION OR
EVENT OCCURRING IN CONNECTION THEREWITH, AND EACH PARTY HERETO WAIVES, RELEASES
AND AGREES NOT TO SUE UPON ANY CLAIM FOR SUCH DAMAGES, WHETHER OR NOT ACCRUED
AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.

 

11.21       Acknowledgements Regarding Security
Bond Obligations.  For greater
certainty, and without limiting the powers of the Collateral Agent hereunder or
under any of the other Credit Documents, the Borrower hereby acknowledges that
the Collateral Agent shall, for purposes of holding any security interest
granted by any Credit Party in any of its property or assets pursuant to the
laws of the Province of Quebec to secure obligations of such Credit Party under
any debenture or bond (any such obligations, “Security Bond Obligations”),
be the holder of an irrevocable power of attorney (fondé de pouvoir) (within the meaning of the Civil Code of Quebec, as amended) for each
Secured Creditor and in particular for all present and future holders of any
debenture or bond (the Secured Creditors and any such holders, collectively,
the “Secured Creditor Grantors”). 
Each Security Creditor Grantor hereby constitutes, to the extent
necessary, the Collateral Agent as the holder of an irrevocable power of
attorney (fondé de pouvoir)
(within the meaning of Article 2692 of the Civil Code of Quebec, as amended) in order to hold security
granted by any Credit Party in the Province of Quebec to secure Security Bond
Obligations.  Each assignee of any
Secured Creditor Grantor shall be deemed to have confirmed and ratified the
constitution of the Collateral Agent as the holder of such irrevocable power of
attorney (fondé de pouvoir) upon
becoming a Lender under this Credit Agreement as contemplated in
Section 11.6(b)(A) and/or by receiving the benefits of the Collateral
Documents.  Notwithstanding the
provisions of Section 32 of An Act
Respecting the Special Powers of Legal Persons (Quebec), the
Collateral Agent may acquire and be the holder of any debenture or bond.  The Borrower hereby acknowledges that such
debenture or bond constitutes a title of indebtedness, as such term is used in
Article 2692 of the Civil Code of
Quebec, as amended.

 

11.22       PATRIOT Act Notice.  Each Lender and the Administrative Agent (for
itself and not on behalf of any Lender) hereby notifies the Credit Parties that
pursuant to the requirements of the PATRIOT Act, such Lender and the
Administrative Agent are required to obtain, verify and record information that
identifies the Credit Parties, which information includes the name and address
of the Credit Parties and other information that will allow such Lender and the
Administrative Agent, as the case may be, to identify the Credit Parties in
accordance with the PATRIOT Act.

 

11.23       Amendment and Restatement.  (a) 
This Credit Agreement is an amendment and restatement of the Existing
Credit Agreement and does not constitute a novation of the Existing Credit
Agreement. All “Obligations” under the Existing Credit Agreement (to the extent
not paid on or prior to the Effective Date), and all security interests, Liens,
and collateral

 

160

 

assignments granted to the
Administrative Agent (as defined in the Existing Credit Agreement) or the
Collateral Agent (as defined in the Existing Credit Agreement) under the
Existing Credit Agreement or any of the other “Credit Documents” defined
therein, hereby are renewed and continued in full force and effect, and
hereafter shall be governed by this Credit Agreement or, to the extent
appropriate, such other Credit Document as further amended or modified from
time to time.  All existing “Credit
Documents” previously executed in connection with the Existing Credit Agreement
shall continue in full force and effect, except to the extent such agreement is
amended, restated or replaced in connection with this Credit Agreement, and any
and all references therein to the Existing Credit Agreement (regardless of
terminology) shall refer to and mean this Credit Agreement.  Without limiting the foregoing, the Credit
Agreement Parties acknowledge and agree that any and all obligations of BofA,
DBTCA and the other lenders under the Existing Credit Agreement (by virtue of
the Bank Assignment Agreement or otherwise) are governed by the terms of this
Credit Agreement (as an amendment and restatement in its entirety of the
Existing Credit Agreement).

 

(b)           The Borrower and
Holdings acknowledge and agree that as of the close of business on June 27,
2005, the aggregate amount of Revolving Outstandings under and as defined in
the Existing Credit Agreement (excluding the undrawn amount of the Existing
Letters of Credit) is $141,770,606.13, and the aggregate amount of Term Loan
Outstandings under and as defined in the Existing Credit Agreement is
$205,776,241.50.  As of the date hereof,
none of the Credit Parties or any of their respective Affiliates has offset
rights, counterclaims or defenses of any kind against any of their obligations,
indebtedness or liabilities under the Existing Credit Agreement.  As of the date hereof immediately prior to
the amendment and restatement of the Existing Credit Agreement contemplated
herein, there exists no Default or Event of Default under and as defined in the
Existing Credit Agreement.

 

ARTICLE 12

 

Holdings Secured Guaranty

 

12.1         The Holdings Secured Guaranty.  In order to induce the Agents, each Issuing
Lender and the Lenders to enter into this Credit Agreement and to extend credit
hereunder, and to induce the other Guaranteed Creditors to enter into Hedge
Agreements, and in recognition of the direct benefits to be received by
Holdings from the proceeds of the Loans, the issuance of the Letters of Credit
and the entering into of such Hedge Agreements, Holdings hereby agrees with the
Guaranteed Creditors as follows:  Holdings
hereby unconditionally and irrevocably guarantees the full and prompt payment
when due, whether upon maturity, by acceleration or otherwise, of any and all
Obligations of the Borrower to the Guaranteed Creditors.  If any or all of the Obligations of the
Borrower to the Guaranteed Creditors becomes due and payable hereunder,
Holdings unconditionally promises to pay such Guaranteed Obligations to the
Guaranteed Creditors, or order, on demand, together with any and all reasonable
expenses which may be incurred by the Agents and the other Guaranteed Creditors
in collecting any of the Obligations. 
This guaranty constitutes a guaranty of payment and not of collection,
and applies to all Obligations of the Borrower arising in connection with this
Credit Agreement and the other Credit Documents, in each case, heretofore, now,
or hereafter made, incurred or created, whether voluntarily or involuntarily,
absolute or contingent, liquidated or unliquidated, determined or undetermined,
whether or not such Guaranteed Obligations are from

 

161

 

time to time reduced, or
extinguished and thereafter increased or incurred, whether the Borrower may be
liable individually or jointly with others, whether or not recovery upon such
Guaranteed Obligations may be or hereafter become barred by any statute of
limitations, and whether or not such Guaranteed Obligations may be or hereafter
become otherwise unenforceable.

 

12.2         Bankruptcy.  Additionally, Holdings unconditionally and
irrevocably guarantees the payment of any and all Guaranteed Obligations of the
Borrower to the Guaranteed Creditors whether or not due or payable by the
Borrower upon the occurrence in respect of the Borrower of any of the events
specified in Section 9.1(e), and unconditionally and irrevocably promises
to pay all such Guaranteed Obligations to the Guaranteed Creditors, or order,
on demand, in lawful money of the United States.

 

12.3         Nature of Liability.  The liability of Holdings hereunder is
exclusive and independent of any security for or other guaranty of any of the
Guaranteed Obligations of the Borrower whether executed by Holdings, any other
guarantor or by any other party, and the liability of Holdings hereunder shall
not be affected or impaired by (a) any direction as to application of
payment by the Borrower or by any other party, or (b) any other continuing
or other guaranty, undertaking or maximum liability of a guarantor or of any
other party as to the Guaranteed Obligations of the Borrower, or (c) any
payment on or in reduction of any such other guaranty or undertaking, or
(d) any dissolution, termination or increase, decrease or change in
personnel by the Borrower, or (e) any payment made to any Guaranteed
Creditor on the Guaranteed Obligations which such Guaranteed Creditors repay to
the Borrower pursuant to court order in any bankruptcy, reorganization,
arrangement, moratorium or other debtor relief proceeding, and Holdings waives
any right to the deferral or modification of its obligations hereunder by
reason of any such proceeding.

 

12.4         Independent Obligation.  The obligations of Holdings hereunder are
independent of the obligations of any other guarantor or the Borrower, and a
separate action or actions may be brought and prosecuted against Holdings
whether or not action is brought against any other guarantor or the Borrower
and whether or not any other guarantor or the Borrower be joined in any such
action or actions.  Holdings waives, to
the fullest extent permitted by law, the benefit of any statute of limitations
affecting its liability hereunder or the enforcement thereof.  Any payment by the Borrower or other
circumstance which operates to toll any statute of limitations as to the
Borrower shall, to the fullest extent permitted by law, operate to toll the
statute of limitations as to Holdings.

 

12.5         Authorization.  Holdings authorizes each Guaranteed Creditor
without notice or demand (except as shall be required by applicable statute and
cannot be waived), and without affecting or impairing its liability hereunder,
from time to time to:

 

(a)           subject to the prior
agreement of the Borrower (to the extent required by the Credit Agreement),
change the manner, place or terms of payment of, and/or change or extend the
time of payment of, renew, increase, accelerate or alter, any of the Guaranteed
Obligations (including any increase or decrease in the rate of interest
thereon), any security therefor, or any liability incurred directly or
indirectly in respect thereof, and the Holdings Secured Guaranty herein made
shall apply to the Guaranteed Obligations as so changed, extended, renewed or
altered;

 

162

 

(b)           take and hold
security for the payment of any of the Guaranteed Obligations and sell,
exchange, release, surrender, realize upon or otherwise deal with in any manner
and in any order any property by whomsoever at any time pledged or mortgaged to
secure, or howsoever securing, any of the Guaranteed Obligations or any
liabilities (including any of those hereunder) incurred directly or indirectly
in respect thereof or hereof, and/or any offset thereagainst;

 

(c)           exercise or refrain
from exercising any rights against the Borrower or others or otherwise act or
refrain from acting;

 

(d)           release or
substitute any one or more endorsers, guarantors, the Borrower or other
obligors;

 

(e)           settle or compromise
any of the Guaranteed Obligations, any security therefor or any liability
(including any of those hereunder) incurred directly or indirectly in respect
thereof or hereof, and may subordinate the payment of all or any part thereof
to the payment of any liability (whether due or not) of the Borrower to its
creditors other than the Guaranteed Creditors;

 

(f)            apply any sums by
whomsoever paid or howsoever realized to any liability or liabilities of the Borrower
to the Guaranteed Creditors regardless of what liability or liabilities of
Holdings or the Borrower remain unpaid; and/or

 

(g)           consent to or waive
any breach of, or any act, omission or default under, this Credit Agreement or
any of the instruments or agreements referred to herein, or, with the agreement
of the Borrower, amend, modify or supplement this Credit Agreement or any of
such other instruments or agreements.

 

12.6         Reliance.  It is not necessary for any Guaranteed
Creditor to inquire into the capacity or powers of the Borrower or its
Subsidiaries or the officers, directors, partners or agents acting or
purporting to act on its behalf, and any Guaranteed Obligations made or created
in reliance upon the professed exercise of such powers shall be guaranteed
hereunder.

 

12.7         Subordination.  Any obligations of the Borrower now or
hereafter owing to Holdings are hereby subordinated in right of payment to the
Guaranteed Obligations of the Borrower owing to the Guaranteed Creditors; provided
that payment may be made by the Borrower on any such obligations owing to
Holdings so long as the same is not prohibited by this Credit Agreement; and provided
further, that if the Administrative Agent so requests at a time when an
Event of Default exists, all such obligations of the Borrower to Holdings shall
be collected, enforced and received by Holdings as trustee for the Guaranteed
Creditors and be paid over to the Guaranteed Creditors on account of the
Guaranteed Obligations of the Borrower to the Guaranteed Creditors, but without
affecting or impairing in any manner the liability of Holdings under the other
provisions of this Holdings Secured Guaranty. 
Prior to the transfer by Holdings of any note or negotiable instrument
evidencing any obligations of the Borrower to Holdings, Holdings shall mark
such note or negotiable instrument with a legend that the same is subject to
this subordination.  Holdings hereby
agrees with the Guaranteed Creditors that it will not exercise any claim or
right of subrogation which it may at any time otherwise have as a result

 

163

 

of this Holdings Secured
Guaranty (whether contractual, under Section 509 of the Bankruptcy Code or
otherwise) until all Guaranteed Obligations have been irrevocably paid in full.

 

12.8         Waiver.  (a)  Holdings waives any right
(except as shall be required by applicable statute and cannot be waived) to
require any Guaranteed Creditor to (i) proceed against the Borrower, any
other guarantor or any other party, (ii) proceed against or exhaust any
security held from the Borrower, any other guarantor or any other party or
(iii) pursue any other remedy in any such Guaranteed Creditor’s power
whatsoever.  Holdings waives any defense
based on or arising out of any defense of the Borrower, any other guarantor or
any other party other than payment in full of the Guaranteed Obligations,
including, without limitation, any defense based on or arising out of the
disability of the Borrower, any other guarantor or any other party, or the
unenforceability of the Guaranteed Obligations or any part thereof from any
cause, or the cessation from any cause of the liability of the Borrower other
than payment in full of the Guaranteed Obligations.  Subject to the terms of the Credit Documents,
any of the Guaranteed Creditors may, at its or their election, foreclose on any
security held by any Agent, any Issuing Lender, the Collateral Agent or any
other Guaranteed Creditor by one or more judicial or nonjudicial sales, whether
or not every aspect of any such sale is commercially reasonable (to the extent
such sale is permitted by applicable law), or exercise any other right or
remedy any of the Guaranteed Creditors may have against the Borrower or any
other party, or any security, without affecting or impairing in any way the
liability of Holdings hereunder except to the extent the Guaranteed Obligations
have been paid.  Holdings waives, to the
fullest extent permitted by law, any defense arising out of any such election
by any of the Guaranteed Creditors, even though such election operates to
impair or extinguish any right of reimbursement or subrogation or other right
or remedy of Holdings against the Borrower or any other party or any security.

 

(b)           Holdings waives all
presentments, demands for performance, protests and notices, including without
limitation notices of nonperformance, notices of protest, notices of dishonor,
notices of acceptance of this Holdings Secured Guaranty, and notices of the
existence, creation or incurring of new or additional Guaranteed
Obligations.  Holdings assumes all
responsibility for being and keeping itself informed of the Borrower’s
financial condition and assets, and of all other circumstances bearing upon the
risk of nonpayment of the Guaranteed Obligations and the nature, scope and
extent of the risks which Holdings assumes and incurs hereunder, and agrees
that no Guaranteed Creditor shall have any duty to advise Holdings of
information known to them regarding such circumstances or risks.

 

12.9         Limitation on Enforcement.  The Guaranteed Creditors agree that this
Holdings Secured Guaranty may be enforced only by the action of the
Administrative Agent, in each case acting upon the instructions of the Required
Lenders, and that no other Guaranteed Creditor shall have any right
individually to seek to enforce or to enforce this Holdings Secured Guaranty,
it being understood and agreed that such rights and remedies may be exercised
by the Administrative Agent for the benefit of the Guaranteed Creditors upon
the terms of this Credit Agreement.  The
Guaranteed Creditors further agree that this Holdings Secured Guaranty may not
be enforced against any Affiliate, director, officer, employee or stockholder
of Holdings.

 

*              *              *

 

164

 

IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized officers to execute and deliver this Credit Agreement as of the date
first above written.

 

 

	
  Address:

  	
   

  
	
  8211 Town Center Drive

  	
  WILLIAMS SCOTSMAN INTERNATIONAL,

  
	
  Baltimore, Maryland 21236

  	
  INC. (f/k/a Scotsman Holdings, Inc.)

  
	
  Attention: John Ross

  	
   

  
	
  Telephone: (410) 931-6000

  	
   

  
	
  Facsimile: (410) 931-6117

  	
  By:

  	
  /s/ Robert C. Singer

  
	
   

  	
  Title: Executive Vice President and Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  WILLIAMS SCOTSMAN, INC.

  
	
  8211 Town Center Drive

  	
   

  
	
  Baltimore, Maryland 21236

  	
   

  
	
  Attention: John Ross

  	
  By:

  	
  /s/ Robert C. Singer

  
	
  Telephone: (410) 931-6000

  	
  Title: Executive Vice President and Chief
  Financial Officer

  
	
  Facsimile: (410) 931-6117

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., Individually and as
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin W. Corcoran

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS, Individually and as Syndication

  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark E. Funk

  
	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank Fazio

  
	
   

  	
  Title: Director

  

 

 

	
   

  	
  CITICORP USA, INC., Individually and as Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sebastien Delasnerie

  	
   

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, N.A., Individually and as Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Reginald Goldsmith

  	
   

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LEHMAN COMMERCIAL PAPER INC., Individually and as Co-Documentation
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ritnam Bhalla

  	
   

  
	
   

  	
  Title: Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James O'Connell

  	
   

  
	
   

  	
  Title: Associate

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE CIT GROUP/BUSINESS CREDIT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Julianne Low

  	
   

  
	
   

  	
  Title: Assistant Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GMAC COMMERCIAL FINANCE LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert McIntyre

  	
   

  
	
   

  	
  Title: Director

  

 

 

	
   

  	
  MERRILL LYNCH CAPITAL, a division of

  
	
   

  	
  Merrill Lynch Business Financial Services Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard Holston

  	
   

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GE CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wafa Shalabi

  	
   

  
	
   

  	
  Title: Duly Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marc H. Lauri

  	
   

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NATIONAL CITY BUSINESS CREDIT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason
  Hanes

  	
   

  
	
   

  	
  Title: Senior Associate

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HSBC BUSINESS CREDIT (USA) INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dan Bueno

  	
   

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James P. Sierakowski

  	
   

  
	
   

  	
  Title: Vice President

  
					

 

 

	
   

  	
  LASALLE BUSINESS CREDIT, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wayne D. Hillock

  	
   

  
	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TEXTRON FINANCIAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ralph J. Infante

  	
   

  
	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SIEMENS FINANCIAL SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank Amodio

  	
   

  
	
   

  	
  Title: Vice President—Credit

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UPS CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Tobin

  	
   

  
	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SUNTRUST BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Benjamin Emmons

  	
   

  
	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WEBSTER BUSINESS CREDIT

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gordon Massave

  	
   

  
	
   

  	
  Title: Assistant Vice President

  

 

 

	
   

  	
  SANDY SPRING BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roy S. Lewis

  	
   

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CIBC, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan Rabinowitz

  	
   

  
	
   

  	
  Title: Executive Director CIBC World
  Markets Corp. as Agent

  
	
   

  	
   

  
	
   

  	
   

  

 

 

	
   

  	
  FIRST DOMINION FUNDING I

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David H. Lerner

  	
   

  
	
   

  	
  Title: Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FIRST DOMINION FUNDING II

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David H. Lerner

  	
   

  
	
   

  	
  Title: Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FIRST DOMINION FUNDING III

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David H. Lerner

  	
   

  
	
   

  	
  Title: Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]