Document:

exhibit101.htm

    EXHIBIT
      10.1

    
      

    

     

     

     

    

    
      

    

     

    Credit
      Agreement

     

    Among

     

    Champion
      Industries, Inc., a West Virginia corporation, as Borrower

     

    Various
      Lenders

    From
      Time
      to Time Party Hereto

     

    and

     

    Fifth
      Third Bank, an Ohio banking corporation,

    as
      Administrative Agent and L/C Issuer

     

    Dated
      as
      of September 14, 2007

    
      

       

      

    

     

    Fifth
      Third Bank, as Lead Arranger and Sole Book Runner

     

    

    
      

    

    

    

    
      
        
                

                  
      

                        

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Table
      of Contents

     

    
      
        	 	 Section        	 Heading	Pg 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 Section 1.	
                Definitions;
                  Interpretation

              	
                1

              	 
	 	 	
                Section 1.1.

              	
                Definitions

              	
                1

              	 
	 	 	
                Section 1.2.

              	
                Interpretation

              	
                23

              	 
	 	 	
                Section 1.3.

              	
                Change
                  in Accounting Principles

              	
                23

              	 
	 	 	 	 	 	 
	 	 Section 2.	
                The
                  Credit Facilities

              	
                24

              	 
	 	 	
                Section 2.1.

              	
                Term
                  Loan Commitments

              	
                24

              	 
	 	 	
                Section 2.2.

              	
                Revolving
                  Credit Commitments

              	
                24

              	 
	 	 	
                Section 2.3.

              	
                Letters
                  of Credit

              	
                24

              	 
	 	 	
                Section 2.4.

              	
                Applicable
                  Interest Rates

              	
                27

              	 
	 	 	
                Section 2.5.

              	
                Manner
                  of Borrowing Loans and Designating Applicable Interest
                  Rates

              	
                28

              	 
	 	 	
                Section 2.6.

              	
                Minimum
                  Borrowing Amounts; Maximum Eurodollar Loans

              	
                30

              	 
	 	 	
                Section 2.7.

              	
                Maturity
                  of Loans

              	
                30

              	 
	 	 	
                Section 2.8.

              	
                Prepayments

              	
                30

              	 
	 	 	
                Section 2.9.

              	
                Place
                  and Application of Payments

              	
                33

              	 
	 	 	
                Section 2.10.

              	
                Commitment
                  Terminations

              	
                34

              	 
	 	 	
                Section 2.11.

              	
                Swing
                  Loans

              	
                34

              	 
	 	 	
                Section 2.12.

              	
                Evidence
                  of Indebtedness

              	
                36

              	 
	 	 	
                Section 2.13.

              	
                Fees

              	
                37

              	 
	 	 	
                Section 2.14.

              	
                Account
                  Debit

              	
                38

              	 
	 	 	 	 	 	 
	 	 Section 3.	
                Conditions
                  Precedent

              	
                38

              	 
	 	 	
                Section 3.1.

              	
                All
                  Credit Events

              	
                38

              	 
	 	 	
                Section
                  3.2.

              	
                Initial
                  Credit Event

              	
                39

              	 
	 	 	 	 	 	 
	 	 Section 4.	
                The
                  Collateral and Guaranties

              	
                43

              	 
	 	 	
                Section 4.1.

              	
                Collateral

              	
                43

              	 
	 	 	
                Section 4.2.

              	
                Liens
                  on Real Property

              	
                43

              	 
	 	 	
                Section 4.3.

              	
                Guaranties

              	
                44

              	 
	 	 	
                Section 4.4.

              	
                Further
                  Assurances

              	
                44

              	 
	 	 	 	 	 	 
	 	 Section 5.	
                Representations
                  and Warranties

              	
                44

              	 
	 	 	
                Section 5.1.

              	
                Organization
                  and Qualification

              	
                44

              	 
	 	 	
                Section 5.2.

              	
                Authority
                  and Enforceability

              	
                45

              	 
	 	 	
                Section 5.3.

              	
                Financial
                  Reports

              	
                45

              	 
	 	 	
                Section 5.4.

              	
                No
                  Material Adverse Change

              	
                45

              	 
	 	 	
                Section 5.5.

              	
                Litigation
                  and Other Controversies

              	
                46

              	 
	 	 	
                Section 5.6.

              	
                True
                  and Complete Disclosure

              	
                46

              	 
	 	 	
                Section 5.7.

              	
                Use
                  of Proceeds; Margin Stock

              	
                46

              	 
	 	 	
                Section 5.8.

              	
                Taxes

              	
                46

              	 
	 	 	
                Section 5.9.

              	
                ERISA

              	
                46

              	 
	 	 	
                Section 5.10.

              	
                Subsidiaries

              	
                47

              	 
	 	 	
                Section 5.11.

              	
                Compliance
                  with Laws

              	
                47

              	 
	 	 	
                Section 5.12.

              	
                Environmental
                  Matters

              	
                47

              	 
	 	 	
                Section 5.13.

              	
                Investment
                  Company

              	
                47

              	 
	 	 	
                Section 5.14.

              	
                Intellectual
                  Property

              	
                48

              	 
	 	 	
                Section 5.15.

              	
                Good
                  Title

              	
                48

              	 

      

      

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

      
        	 	 	
                Section 5.16.

              	
                Labor
                  Relations

              	
                48

              	 
	 	 	
                Section
                  5.17.

              	
                Capitalization

              	
                48

              	 
	 	 	
                Section 5.18.

              	
                Other
                  Agreements

              	
                48

              	 
	 	 	
                Section 5.19.

              	
                Governmental
                  Authority and Licensing

              	
                48

              	 
	 	 	
                Section 5.20.

              	
                Approvals

              	
                49

              	 
	 	 	
                Section 5.21.

              	
                Affiliate
                  Transactions

              	
                49

              	 
	 	 	
                Section
                  5.22.

              	
                Solvency

              	
                49

              	 
	 	 	
                Section 5.23.

              	
                No
                  Broker Fees

              	
                49

              	 
	 	 	
                Section
                  5.24.

              	
                Foreign
                  Assets Control Regulations and Anti-Money Laundering

              	
                49

              	 
	 	 	
                Section 5.25.

              	
                Purchase
                  Agreement

              	
                49

              	 
	 	 	 	 	 	 
	 	 Section 6.	
                Covenants

              	
                50

              	 
	 	 	
                Section 6.1.

              	
                Information
                  Covenants

              	
                50

              	 
	 	 	
                Section 6.2.

              	
                Inspections

              	
                53

              	 
	 	 	
                Section 6.3.

              	
                Maintenance
                  of Property, Insurance, Environmental Matters, etc

              	
                53

              	 
	 	 	
                Section 6.4.

              	
                Preservation
                  of Existence

              	
                54

              	 
	 	 	
                Section 6.5.

              	
                Compliance
                  with Laws

              	
                54

              	 
	 	 	
                Section 6.6.

              	
                ERISA

              	
                54

              	 
	 	 	
                Section 6.7.

              	
                Payment
                  of Taxes

              	
                54

              	 
	 	 	
                Section 6.8.

              	
                Contracts
                  with Affiliates

              	
                54

              	 
	 	 	
                Section 6.9.

              	
                No
                  Changes in Fiscal Year

              	
                54

              	 
	 	 	
                Section 6.10.

              	
                Change
                  in the Nature of Business

              	
                54

              	 
	 	 	
                Section 6.11.

              	
                Indebtedness

              	
                55

              	 
	 	 	
                Section 6.12.

              	
                Liens

              	
                55

              	 
	 	 	
                Section 6.13.

              	
                Consolidation,
                  Merger, Sale of Assets, etc

              	
                56

              	 
	 	 	
                Section 6.14.

              	
                Advances,
                  Investments and Loans

              	
                57

              	 
	 	 	
                Section 6.15.

              	
                Dividends
                  and certain other Restricted Payments

              	
                57

              	 
	 	 	
                Section 6.16.

              	
                Limitation
                  on Restrictions

              	
                58

              	 
	 	 	
                Section 6.17.

              	
                Limitation
                  on the Creation of Subsidiaries

              	
                58

              	 
	 	 	
                Section
                  6.18.

              	
                OFAC

              	
                58

              	 
	 	 	
                Section 6.19.

              	
                Operating
                  Accounts

              	
                58

              	 
	 	 	
                Section 6.20.

              	
                Financial
                  Covenants

              	
                59

              	 
	 	 	
                Section
                  6.21.

              	
                Interest
                  Rate Protection

              	
                61

              	 

      

      

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

      
        	 	 	
                Section 6.22.

              	
                Integrated
                  Cash Management System

              	
                61

              	 
	 	 	
                Section 6.23.

              	
                U.S.
                  Tag & Ticket Company, Inc.

              	
                61

              	 
	 	 	
                Section 6.24.

              	
                Lead
                  Management Program

              	
                61

              	 
	 	 	
                Section 6.25.

              	
                Post-Closing
                  Matters

              	
                61

              	 
	 	 	 	 	 	 
	 	 Section 7.	
                Events
                  of Default and Remedies

              	
                63

              	 
	 	 	
                Section 7.1.

              	
                Events
                  of Default

              	
                63

              	 
	 	 	
                Section 7.2.

              	
                Non‐Bankruptcy
                  Defaults

              	
                65

              	 
	 	 	
                Section 7.3.

              	
                Bankruptcy
                  Defaults

              	
                65

              	 
	 	 	
                Section 7.4.

              	
                Collateral
                  for Undrawn Letters of Credit

              	
                65

              	 
	 	 	
                Section 7.5.

              	
                Notice
                  of Default

              	
                66

              	 
	 	 	
                Section 7.6.

              	
                Expenses

              	
                66

              	 
	 	 	 	 	 	 
	 	 Section 8.	
                Change
                  in Circumstances and Contingencies

              	
                66

              	 
	 	 	
                Section 8.1.

              	
                Funding
                  Indemnity

              	
                66

              	 
	 	 	
                Section 8.2.

              	
                Illegality

              	
                67

              	 
	 	 	
                Section 8.3.

              	
                Unavailability
                  of Deposits or Inability to Ascertain, or Inadequacy of,
                  LIBOR

              	
                67

              	 
	 	 	
                Section 8.4.

              	
                Yield
                  Protection

              	
                68

              	 
	 	 	
                Section 8.5.

              	
                Substitution
                  of Lenders

              	
                69

              	 
	 	 	
                Section 8.6.

              	
                Lending
                  Offices

              	
                69

              	 
	 	 	
                Section 8.7.

              	
                Discretion
                  of Lender as to Manner of Funding

              	
                70

              	 
	 	 	 	 	 	 
	 	 Section 9.	
                The
                  Administrative Agent

              	
                70

              	 
	 	 	
                Section 9.1.

              	
                Appointment
                  and Authorization of Administrative Agent

              	
                70

              	 
	 	 	
                Section 9.2.

              	
                Administrative
                  Agent and its Affiliates

              	
                70

              	 
	 	 	
                Section 9.3.

              	
                Action
                  by Administrative Agent

              	
                70

              	 
	 	 	
                Section 9.4.

              	
                Consultation
                  with Experts

              	
                71

              	 
	 	 	
                Section 9.5.

              	
                Liability
                  of Administrative Agent; Credit Decision

              	
                71

              	 
	 	 	
                Section 9.6.

              	
                Indemnity

              	
                72

              	 
	 	 	
                Section 9.7.

              	
                Resignation
                  of Administrative Agent and Successor Administrative Agent

              	
                72

              	 
	 	 	
                Section 9.8.

              	
                L/C
                  Issuer.

              	
                72

              	 
	 	 	
                Section 9.9.

              	
                Hedging
                  Liability and Funds Transfer and Deposit Account Liability
                  Arrangements

              	
                73

              	 
	 	 	
                Section 9.10.

              	
                Designation
                  of Additional Administrative Agents

              	
                73

              	 
	 	 	
                Section 9.11.

              	
                Authorization
                  to Enter into, and Enforcement of, the Collateral
                  Documents

              	
                73

              	 
	 	 	
                Section 9.12.

              	
                Authorization
                  to Release Liens and Limit Amount of Certain Claims

              	
                74

              	 
	 	 	 	 	 	 
	 	 Section 10.	
                Miscellaneous

              	
                74

              	 
	 	 	
                Section 10.1.

              	
                Withholding
                  Taxes

              	
                74

              	 
	 	 	
                Section 10.2.

              	
                No
                  Waiver, Cumulative Remedies

              	
                75

              	 

      

      

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

      
        	 	 	
                Section 10.3.

              	
                Non‐Business
                  Days

              	
                75

              	 
	 	 	
                Section 10.4.

              	
                Documentary
                  Taxes

              	
                75

              	 
	 	 	
                Section 10.5.

              	
                Survival
                  of Representations

              	
                75

              	 
	 	 	
                Section 10.6.

              	
                Survival
                  of Indemnities

              	
                76

              	 
	 	 	
                Section 10.7.

              	
                Sharing
                  of Set‐Off

              	
                76

              	 
	 	 	
                Section 10.8.

              	
                Notices

              	
                76

              	 
	 	 	
                Section 10.9.

              	
                Counterparts

              	
                77

              	 
	 	 	
                Section 10.10.

              	
                Successors
                  and Assigns; Assignments and Participations

              	
                77

              	 
	 	 	
                Section 10.11.

              	
                Amendments

              	
                80

              	 
	 	 	
                Section 10.12.

              	
                Heading

              	
                80

              	 
	 	 	
                Section 10.13.

              	
                Costs
                  and Expenses; Indemnification

              	
                81

              	 
	 	 	
                Section 10.14.

              	
                Set‐off

              	
                82

              	 
	 	 	
                Section 10.15.

              	
                Entire
                  Agreement

              	
                82

              	 
	 	 	
                Section 10.16.

              	
                Governing
                  Law

              	
                82

              	 
	 	 	
                Section 10.17.

              	
                Severability
                  of Provisions

              	
                82

              	 
	 	 	
                Section 10.18.

              	
                Excess
                  Interest

              	
                82

              	 
	 	 	
                Section 10.19.

              	
                Construction

              	
                83

              	 
	 	 	
                Section 10.20.

              	
                Lender’s
                  Obligations Several

              	
                83

              	 
	 	 	
                Section
                  10.21.

              	
                USA
                  Patriot Act

              	
                83

              	 
	 	 	
                Section 10.22.

              	
                Submission
                  to Jurisdiction; Waiver of Jury Trial

              	
                83

              	 
	 	 	
                Section
                  10.23.

              	
                Treatment
                  of Certain Information; Confidentiality

              	
                84

              	 
	 	 	 	 	 	 
	 	 Signature
                Page 	 	S-1 	 
	 	 	 	 	 
	 	
                Exhibit A—Notice
                  of Payment Request

                Exhibit B—Notice
                  of Borrowing

                Exhibit C—Notice
                  of Continuation/Conversion

                Exhibit D-1—Term
                  Note

                Exhibit D-2—Revolving
                  Note

                Exhibit D-3—Swing
                  Note

                Exhibit E—Compliance
                  Certificate

                Exhibit F—Assignment
                  and Assumption

                Exhibit G—Borrowing
                  Base Certificate

                Schedule
                  1—Commitments

                Schedule 5.10—Subsidiaries

                Schedule 5.25—Purchase
                  Agreement 

              	 	 

      

    
      
        
          
          

        

        
          iv

          
            

          

        

        
          
          

        

      

    

    

    Credit
      Agreement

     

    This
      Credit Agreement is entered into as of September 14, 2007, by and among
      Champion Industries, Inc., a West Virginia corporation (the
“Borrower”), the various institutions from time to time party to this
      Agreement, as Lenders, and Fifth Third Bank, an Ohio banking corporation, as
      Administrative Agent and L/C Issuer.

     

    The
      Borrower has requested, and the Lenders have agreed to extend, certain credit
      facilities on the terms and conditions of this Agreement.  In
      consideration of the mutual agreements set forth in this Agreement, the parties
      to this Agreement agree as follows:

     

    
      	
               

            	
              Section 1.Definitions;
                Interpretation.

            

    

     

    Section 1.1.Definitions.  The
      following terms when used herein shall have the following meanings:

     

    “Account
      Debtor” means any Person obligated to make payment on any
      Receivable.

     

    “Acquired
      Business” means the entity or assets acquired by the Borrower or a
      Subsidiary in an Acquisition, whether before or after the date
      hereof.

     

    “Acquisition”
      means any transaction or series of related transactions for the purpose of
      or
      resulting, directly or indirectly, in (a) the acquisition of all or
      substantially all of the assets of a Person, or of any business or division
      of a
      Person, (b) the acquisition of in excess of 50% of the capital stock,
      partnership interests, membership interests or equity of any Person (other
      than
      a Person that is a Subsidiary), or otherwise causing any Person to become a
      Subsidiary, or (c) a merger or consolidation or any other combination with
      another Person (other than a Person that is a Subsidiary), provided
      that the Borrower or the Subsidiary is the surviving entity.

     

    “Adjusted
      LIBOR” means, for any Borrowing of Eurodollar Loans, a rate per annum equal
      to the quotient of (i) LIBOR, divided by (ii) one minus the Reserve
      Percentage.

     

    “Administrative
      Agent” means Fifth Third Bank, an Ohio banking corporation, as contractual
      representative for itself and the other Lenders and any successor pursuant
      to
      Section 9.7 hereof.

     

    “Administrative
      Agent’s Quoted Rate” is defined in Section 2.11(c)
      hereof.

     

    “Administrative
      Questionnaire” means, with respect to each Lender, an Administrative
      Questionnaire in a form supplied by the Administrative Agent and duly completed
      by such Lender.

     

    “Affiliate”
      means any Person directly or indirectly controlling or controlled by, or under
      direct or indirect common control with, another Person.  A Person
      shall be deemed to control another Person for the purposes of this definition
      if
      such Person possesses, directly or indirectly, the power to direct, or cause
      the
      direction of, the management and policies of the other Person, whether through
      the ownership of voting securities, common directors, trustees or officers,
      by
      contract or otherwise; provided that, in any event for purposes of this
      definition, any Person that owns, directly or indirectly, 5% or more of the
      securities having the ordinary voting power for the election of directors or
      governing body of a corporation or 5% or more of the partnership or other
      ownership interest of any other Person (other than as a limited partner of
      such
      other Person) will be deemed to control such corporation or other
      Person.  

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

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

     

    “Applicable
      Margin” means, with respect to Loans, Reimbursement Obligations, and the
      commitment fees and letter of credit fees payable under Section 2.13
      hereof, until the first Pricing Date, the rates per annum shown opposite
      Level IV below, and thereafter from one Pricing Date to the next the
      Applicable Margin means the rates per annum determined in accordance with the
      following schedule:

    
      	
              Level

            	
              Leverage
                Ratio for

              such
                Pricing Date

            	
              Applicable
                Margin for Base Rate Loans shall be:

            	
              Applicable
                Margin for Eurodollar Loans and Letter of Credit Fees shall
                be:

            	
              Applicable
                Margin for Commitment Fee shall be:

            
	
              IV

            	
              Greater
                than or equal to 3.75 to 1.0

            	
              0.75%

            	
              2.75%

            	
              0.450%

            
	
              III

            	
              Less
                than 3.75 to 1.0, but greater than or equal to 3.25 to 1.0

            	
              0.50%

            	
              2.50%

            	
              0.375%

            
	
              II

            	
              Less
                than 3.25 to 1.0, but greater than or equal to 2.75 to 1.0

            	
              .25%

            	
              2.25%

            	
              0.325%

            
	
              I

            	
              Less
                than 2.75 to 1.0

            	
              0.00%

            	
              2.00%

            	
              0.275%

            

    

     

    For
      purposes hereof, the term “Pricing Date” means, for any fiscal quarter
      of the Borrower ending on or after October 31, 2007, the date on which the
      Administrative Agent is in receipt of the Borrower’s most recent financial
      statements (and, in the case of the year-end financial statements, audit report)
      for the fiscal quarter then ended, pursuant to Section 6.1
      hereof.  The Applicable Margin shall be established based on the
      Leverage Ratio for the most recently completed fiscal quarter and the Applicable
      Margin established on a Pricing Date shall remain in effect until the next
      Pricing Date.  If the Borrower has not delivered its financial
      statements by the date such financial statements (and, in the case of the
      year-end financial statements, audit report) are required to be delivered under
      Section 6.1 hereof, until such financial statements and audit report are
      delivered, the Applicable Margin shall be the highest Applicable Margin
      (i.e., the Leverage Ratio shall be deemed to be greater than or equal
      to 3.75 to 1.0).  If the Borrower subsequently delivers such financial
      statements before the next Pricing Date, the Applicable Margin established
      by
      such late delivered financial statements shall take effect from the date of
      delivery until the next Pricing Date.  In all other circumstances, the
      Applicable Margin established by such financial statements shall be in effect
      from the Pricing Date that occurs immediately after the end of the fiscal
      quarter covered by such financial statements until the next Pricing
      Date.  Each determination of the Applicable Margin made by the
      Administrative Agent in accordance with the foregoing shall be conclusive and
      binding on the Borrower and the Lenders absent manifest error.

     

    “Application”
      is defined in Section 2.3(b) hereof.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Approved
      Fund” means any Person (other than a natural person) that is (or will be)
      engaged in making, purchasing, holding or otherwise investing in commercial
      loans and similar extensions of credit in the ordinary course of its business
      and that is administered or managed by (a) a Lender, (b) an Affiliate
      of a Lender or (c) an entity or an Affiliate of an entity that administers
      or manages a Lender.

     

    “Assignment
      and Assumption” means an assignment and assumption entered into by a Lender
      and an Eligible Assignee (with the consent of any party whose consent is
      required by Section 10.10), and accepted by the Administrative Agent, in
      substantially the form of Exhibit F or any other form approved by the
      Administrative Agent.

     

    “Authorized
      Representative” means those persons shown on the list of officers provided
      by the Borrower pursuant to Section 3.2 hereof or on any update of any such
      list provided by the Borrower to the Administrative Agent, or any further or
      different officers of the Borrower so named by any Authorized Representative
      of
      the Borrower in a written notice to the Administrative Agent.

     

    “Base
      Rate” means for any day the greater of:  (i) the rate of
      interest announced by the Administrative Agent from time to time as its “prime
      rate” as in effect on such day, with any change in the Base Rate resulting from
      a change in said prime rate to be effective as of the date of the relevant
      change in said prime rate (it being acknowledged that such rate may not be
      the
      Administrative Agent’s best or lowest rate) and (ii) the sum of
      (x) the Federal Funds Rate, plus (y) 1/2 of 1%.

     

    “Base
      Rate Loan” means a Loan bearing interest at a rate specified in
      Section 2.4(a) hereof.

     

    “Borrower”
      is defined in the introductory paragraph of this Agreement.

     

    “Borrowing”
      means the total of Loans of a single type advanced, continued for an additional
      Interest Period, or converted from a different type into such type by the
      Lenders under a Credit on a single date and, in the case of Eurodollar Loans,
      for a single Interest Period.  Borrowings of Loans are made and
      maintained ratably from each of the Lenders under a Credit according to their
      Percentages of such Credit.  A Borrowing is “advanced” on the
      day Lenders advance funds comprising such Borrowing to the Borrower, is
“continued” on the date a new Interest Period for the same type of
      Loans commences for such Borrowing, and is “converted” when such
      Borrowing is changed from one type of Loans to the other, all as requested
      by
      the Borrower pursuant to Section 2.5(a) hereof.  Borrowings of
      Swing Loans are made by the Administrative Agent in accordance with the
      procedures set forth in Section 2.11 hereof.

     

    
      
        
        

      

      
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    “Borrowing
      Base” means, as of any time it is to be determined, the sum
      of:

     

    (a)85%
      (or such lesser percentage as the Administrative Agent may determine from time
      to time pursuant to Section 2.2 hereof) of the
      remainder of the then outstanding unpaid amount of Eligible Receivables less
      any
      and all returns, rebates, discounts (which may, at the Administrative Agent’s
      option, be calculated on the shortest terms), credits, allowances, finance
      charges, and/or taxes of any nature at any time issued, owing, available to
      or
      claimed by Account Debtors, granted, outstanding or payable in connection with
      such Eligible Receivables at such time; plus

     

    (b)the
      lesser of (i) $6,000,000 and (ii) 50% (or such lesser percentage as
      the Administrative Agent may determine from time to time pursuant to
      Section 2.2 hereof) of the value (computed at the lower of market or cost
      using the first-in/first-out method of inventory valuation applied in accordance
      with GAAP) of Eligible Inventory; provided that Eligible Inventory
      consisting of work-in-process shall account for no more than $2,000,000 of
      the
      value of the Borrowing Base;

     

    provided
      further that the Borrowing Base shall be computed only as against and on so
      much of such Collateral as is included on the Borrowing Base Certificates
      furnished from time to time by the Borrower pursuant to this Agreement and,
      if
      required by the Administrative Agent pursuant to any of the terms hereof or
      any
      Collateral Document, as verified by such other evidence required to be furnished
      to the Administrative Agent pursuant hereto or pursuant to any such Collateral
      Document.  

     

    “Borrowing
      Base Certificate” means the certificate in the form of Exhibit G
      hereto, or in such other form acceptable to the Administrative Agent, to be
      delivered to the Administrative Agent and the Lenders pursuant to
      Sections 3.2 and 6.1 hereof.

     

    “Business
      Day” means any day (other than a Saturday or Sunday) on which banks are not
      authorized or required to close in Cincinnati, Ohio and, if the applicable
      Business Day relates to the advance or continuation of, or conversion into,
      or
      payment of a Eurodollar Loan, on which banks are dealing in U.S. Dollar deposits
      in the interbank eurodollar market in London, England.

     

    “Capital
      Expenditures” means, with respect to any Person for any period, the
      aggregate amount of all expenditures (whether paid in cash or accrued as a
      liability) by such Person during that period for the acquisition or leasing
      (pursuant to a Capital Lease) of fixed or capital assets or additions to
      property, plant, or equipment (including replacements, capitalized repairs,
      and
      improvements) which should be capitalized on the balance sheet of such Person
      in
      accordance with GAAP; provided, that in the event that Syscan
      Corporation (“Syscan”) purchases that property commonly known as 3000
      West Washington Street, Charleston, West Virginia, and the improvements located
      thereon, for a purchase price equal to $1,500,000 pursuant to the option granted
      to Syscan in that certain Assignment of Lease dated as of
      September 1, 2004 between Williams Land Corporation and Syscan, as the
      same may be amended, supplemented or otherwise modified from time to time,
      such
      consideration shall not constitute a Capital Expenditure hereunder.

     

    
      
        
        

      

      
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    “Capital
      Lease” means any lease of Property which in accordance with GAAP is
      required to be capitalized on the balance sheet of the lessee.

     

    “Capitalized
      Lease Obligation” means, for any Person, the amount of the liability shown
      on the balance sheet of such Person in respect of a Capital Lease determined
      in
      accordance with GAAP.

     

    “Cash
      Equivalents” shall mean, as to any Person:  (a) investments
      in direct obligations of the United States of America or of any agency or
      instrumentality thereof whose obligations constitute full faith and credit
      obligations of the United States of America, provided that any such obligations
      shall mature within one year of the date of issuance thereof;
      (b) investments in commercial paper rated at least P-1 by Moody’s and at
      least A-1 by S&P maturing within one year of the date of issuance thereof;
      (c) investments in certificates of deposit issued by any Lender or by any
      United States commercial bank having capital and surplus of not less than
      $100,000,000 which have a maturity of one year or less; (d) investments in
      repurchase obligations with a term of not more than 7 days for underlying
      securities of the types described in clause (a) above entered into with any
      bank meeting the qualifications specified in clause (c) above, provided all
      such agreements require physical delivery of the securities securing such
      repurchase agreement, except those delivered through the Federal Reserve Book
      Entry System; and (e) investments in money market funds that invest solely,
      and which are restricted by their respective charters to invest solely, in
      investments of the type described in the immediately preceding
      subsections (a), (b), (c), and (d) above.

     

    “CERCLA”
      means the Comprehensive Environmental Response, Compensation and Liability
      Act of 1980, as amended by the Superfund Amendments and Reauthorization Act
      of
      1986, 42 U.S.C. §§9601 et seq., and any future
      amendments.

     

    “Change
      of Control” means any of (a) the acquisition by any “person”
      or “group” (as such terms are used in sections 13(d) and 14(d) of
      the Securities Exchange Act of 1934, as amended) at any time of beneficial
      ownership of 50% or more of the outstanding equity interests of the Borrower
      on
      a fully-diluted basis, other than acquisitions of such interests by Marshall
      Reynolds, any estate planning trust established for the benefit of Marshall
      Reynolds and his family, and any partnership, limited liability company,
      corporation or other legal entity established for estate planning purposes
      for
      the benefit of Marshall Reynolds, and his family (collectively, the
“Existing Shareholders”) (provided that, notwithstanding
      anything in this definition to the contrary, “group” shall not include
      any group that includes the Existing Shareholders if such Existing Shareholders
      have beneficial ownership of more than 50% of all outstanding equity interests
      of the Borrower on a fully-diluted basis), or (b) the failure of natural
      persons who are members of the board of directors (or similar governing body)
      of
      the Borrower on the Closing Date (together with any new or replacement directors
      whose initial nomination for election was approved by a majority of the
      directors who were either directors on the Closing Date or previously so
      approved) to constitute a majority of the board of directors (or similar
      governing body) of the Borrower. 

     

    
      
        
        

      

      
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    “Closing
      Date” means the date of this Agreement or such later Business Day upon
      which each condition described in Section 3.2 shall be satisfied or waived
      in a manner acceptable to the Administrative Agent in its
      discretion.

     

    “Code”
      means the Internal Revenue Code of 1986, as amended, and any successor statute
      thereto.

     

    “Collateral”
      means all properties, rights, interests, and privileges from time to time
      subject to the Liens granted to the Administrative Agent, or any security
      trustee therefor, by the Collateral Documents.

     

    “Collateral
      Account” is defined in Section 7.4 hereof.

     

    “Collateral
      Documents” means the Mortgages, the Leasehold Mortgages, the Security
      Agreement, and all other mortgages, deeds of trust, security agreements, pledge
      agreements, account control agreements, assignments, financing statements and
      other documents as shall from time to time secure or relate to the Obligations,
      the Hedging Liability, and the Funds Transfer and Deposit Account Liability,
      or
      any part thereof, other than Hedge Agreements.

     

    “Commitments”
      means the Revolving Credit Commitments and the Term Loan
      Commitments.

     

    “Contingent
      Obligation” shall mean as to any Person, any obligation of such Person
      guaranteeing or intended to guarantee any Indebtedness (“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, (i) to purchase any
      such primary obligation or any Property constituting direct or indirect security
      therefor, (ii) to advance or supply funds (x) for the purchase or
      payment of any such primary obligation or (y) to maintain working capital
      or equity capital of the primary obligor or otherwise to maintain the net worth
      or solvency of the primary obligor, (iii) to purchase property, securities
      or services primarily for the purpose of assuring the owner of any such primary
      obligation of the ability of the primary obligor to make payment of such primary
      obligation or (iv) otherwise to assure or hold harmless the holder of such
      primary obligation against loss in respect thereof; provided, however,
      that the term Contingent Obligation shall not include endorsements of
      instruments for deposit or collection in the ordinary course of
      business.  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.

     

    “Controlled
      Group” means all members of a controlled group of corporations and all
      trades or businesses (whether or not incorporated) under common control which,
      together with the Borrower, are treated as a single employer under
      Section 414 of the Code.

     

    “Credit”
      means any of the Revolving Credit and the Term Credit. 

     

    
      
        
        

      

      
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    “Credit
      Event” means the advancing of any Loan, the continuation of or conversion
      into a Eurodollar Loan, or the issuance of, or extension of the expiration
      date
      or increase in the amount of, any Letter of Credit.

     

    “Damages”
      means all damages including, without limitation, punitive damages, liabilities,
      costs, expenses, losses, judgments, diminutions in value, fines, penalties,
      demands, claims, cost recovery actions, lawsuits, administrative proceedings,
      orders, response action, removal and remedial costs, compliance costs,
      investigation expenses, consultant fees, attorneys’ and paralegals’ fees and
      litigation expenses.

     

    “Default”
      means any event or condition the occurrence of which would, with the passage
      of
      time or the giving of notice, or both, constitute an Event of
      Default.

     

    “Disposition”
      means the sale, lease, conveyance or other disposition of Property, other than
      sales or other dispositions expressly permitted under Sections 6.13(a), 6.13(b)
      or 6.13(c) hereof.

     

    “Dollars”
      and “$” each means the lawful currency of the United States of
      America.

     

    “EBITDA”
      means, with reference to any period, Net Income for such period
plus  the sum of all amounts deducted in arriving at such Net
      Income amount in respect of (a) Interest Expense for such period,
      (b) federal, state, and local income taxes for such period, and
      (c) depreciation of fixed assets and amortization of intangible assets for
      such period; provided, however, that notwithstanding anything in this
      definition to the contrary, EBITDA for the following periods shall be deemed
      by
      the parties hereto to be: $6,244,194 for the fiscal quarter of the Borrower
      ending October 31, 2006, $5,577,522 for the fiscal quarter of the Borrower
      ending January 31, 2007, $5,168,966 for the fiscal quarter of the Borrower
      ending April 30, 2007 and $4,468,226 for the fiscal quarter of the Borrower
      ending July 31, 2007.

     

    “Eligible
      Assignee” means (a) a Lender, (b) an Affiliate of a Lender,
      (c) an Approved Fund, and (d) any other Person (other than a natural
      person) approved by (i) the Administrative Agent, (ii) in the case of
      any assignment of a Revolving Credit Commitment, the L/C Issuer, and
      (iii) unless an Event of Default has occurred and is continuing, the
      Borrower (each such approval not to be unreasonably withheld or delayed);
provided that notwithstanding the foregoing, “Eligible Assignee” shall
      not include the Borrower or any of the Borrower’s Affiliates or
      Subsidiaries.

     

    “Eligible
      Inventory” means all Inventory of the Borrower and its Subsidiaries which
      the Administrative Agent, in its reasonable judgment, deems to be Eligible
      Inventory; provided that in no event shall inventory be deemed Eligible
      Inventory unless all representations and warranties set forth in the Collateral
      Documents with respect to such inventory are true and correct and such
      inventory:

     

    (a)is
      an
      asset of such Person to which it has good and marketable title, is freely
      assignable, and is subject to a perfected, first priority Lien in favor of
      the
      Administrative Agent free and clear of any other Liens (other than Liens
      permitted by Section 6.12(a) or (b) hereof arising by operation of law
      which are subordinate to the Liens in favor of the Administrative
      Agent);

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (b)is
      located in the United States of America at a Permitted Collateral Location
      as
      set forth in the Security Agreement and, in the case of any location not owned
      by such Person, which is at all times subject to a lien waiver agreement from
      such landlord or other third party to the extent required by, and in form and
      substance satisfactory to, the Administrative Agent;

     

    (c)is
      not
      so identified to a contract to sell that it constitutes a
      Receivable;

     

    (d)is
      not
      obsolete or slow moving, and is of good and merchantable quality free from
      any
      defects which might adversely affect the market value thereof;

     

    (e)is
      not
      covered by a warehouse receipt or similar document; and

     

    (f)in
      the
      case of finished goods inventory, was produced pursuant to binding and existing
      purchase orders therefor to which the Borrower or such Subsidiary has
      title.

     

    “Eligible
      Receivables” means all Receivables of the Borrower and its Subsidiaries
      which the Administrative Agent, in its reasonable judgment, deem to be Eligible
      Receivables; provided that in no event shall a Receivable be deemed an
      Eligible Receivable unless all representations and warranties set forth in
      the
      Collateral Documents with respect to such Receivable are true and correct and
      such Receivable:

     

    (a)arises
      out of the sale of finished goods inventory delivered to and accepted by, or
      out
      of the rendition of services fully performed and accepted by, the Account Debtor
      on such Receivable, and such Receivable does not represent a pre-billed
      Receivable or a progress billing;

     

    (b)is
      payable in Dollars and the Account Debtor on such Receivable is located within
      the United States of America or, if such right has arisen out of the sale of
      such goods shipped to, or out of the rendition of services to, an Account Debtor
      located in any other country, such right is either (i) secured by a valid
      and irrevocable transferable letter of credit issued by a lender reasonably
      acceptable to the Administrative Agent for the full amount thereof or
      (ii) secured by an insurance policy issued by EXIM Bank or any other
      insurer satisfactory to the Administrative Agent (which in any event shall
      insure not less than 90% of the face amount of such Receivable and shall be
      subject to such deductions as are acceptable to the Administrative Agent),
      and
      in each case which has been assigned or transferred to the Administrative Agent
      in a manner acceptable to the Administrative Agent;

     

    (c)is
      the
      valid, binding and legally enforceable obligation of the Account Debtor
      obligated thereon and such Account Debtor is not (i) a Subsidiary of the
      Borrower, (ii) a shareholder, director, officer, or employee of the
      Borrower or any Subsidiary, (iii) the United States of America, or any
      state or political subdivision thereof, or any department, agency or
      instrumentality of any of the foregoing, unless the Assignment of Claims Act
      or
      any similar state or local statute, as the case may be (if any such similar
      state or local statute exists and is applicable), is complied with to the
      satisfaction of the Administrative Agent, (iv) a debtor under any
      proceeding under the United States Bankruptcy Code, as amended, or any other
      comparable bankruptcy or insolvency law, or (v) an assignor for the benefit
      of creditors;

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (d)is
      not
      evidenced by an instrument or chattel paper unless the same has been endorsed
      and delivered to the Administrative Agent;

     

    (e)is
      an
      asset of such Person to which it has good and marketable title, is freely
      assignable, and is subject to a perfected, first priority Lien in favor of
      the
      Administrative Agent free and clear of any other Liens (other than Liens
      permitted by Section 6.12(a) or (b) hereof arising by operation of law
      which are subordinate to the Liens in favor of the Administrative
      Agent);

     

    (f)is
      not
      subject to any counterclaim or defense asserted by the Account Debtor or subject
      to any offset or contra account payable to the Account Debtor (unless the amount
      of such Receivable is net of such contra account established to the reasonable
      satisfaction of the Administrative Agent);

     

    (g)no
      surety bond was required or given in connection with said Receivable or the
      contract or purchase order out of which the same arose;

     

    (h)is
      not
      unpaid more than 120 days, except as otherwise agreed to in writing by the
      Administrative Agent, after the original invoice date;

     

    (i)is
      not
      owed by an Account Debtor who is obligated on Receivables more than 25% of
      the
      aggregate unpaid balance of which have been past due for longer than the
      relevant period specified in subsection (h) above unless the Administrative
      Agent has approved the continued eligibility thereof;

     

    (k)would
      not cause the total Receivables owing from any one Account Debtor and its
      Affiliates to exceed 10% of all Eligible Receivables;

     

    (l)would
      not cause the total Receivables owing from any one Account Debtor and its
      Affiliate to exceed any credit limit established for purposes of determining
      eligibility hereunder by the Administrative Agent in its reasonable judgment
      for
      such Account Debtor and for which the Administrative Agent has given the
      Borrower at least 5 Business Days prior notice of the establishment of any
      such credit limit; and

     

    (m)does
      not arise from a guaranteed sale, sale-or-return, sale-on-approval, consignment,
      sale on a bill-and-hold not made in accordance with standard industry terms,
      or
      any other repurchase or return basis.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    “Environmental
      Claim” means any investigation, notice, violation, demand, allegation,
      action, suit, injunction, judgment, order, consent decree, penalty, fine, lien,
      pro­ceeding or claim (whether administrative, judicial or private in nature)
      arising (a) pursuant to, or in connection with an actual or alleged
      violation of, any Environmental Law, (b) in connection with any Hazardous
      Material, (c) from any abatement, removal, remedial, cor­rective or
      response action in connection with a Hazardous Material, Environmental Law
      or
      order of a Governmental Authority or (d) from any actual or alleged damage,
      injury, threat or harm to health, safety, natural resources or the
      environment.

     

    “Environmental
      Law” means any current or future Legal Requirement pertaining to
      (a) the protection of health, safety and the indoor or outdoor environment,
      (b) the conservation, management or use of natural resources and wildlife,
      (c)
      the protection or use of surface water or groundwater, (d) the management,
      manufacture, possession, presence, use, generation, transportation, treatment,
      storage, disposal, Release, threatened Release, abatement, removal, remediation
      or handling of, or exposure to, any Hazardous Material or (e) pollution
      (including any Release to air, land, surface water or groundwater), and any
      amendment, rule, regulation, order or directive issued thereunder.

     

    “ERISA”
      means the Employee Retirement Income Security Act of 1974, as amended, or any
      successor statute thereto.

     

    “Eurodollar
      Loan” means a Loan bearing interest at the rate specified in
      Section 2.4(b) hereof.

     

    “Event
      of Default” means any event or condition identified as such in
      Section 7.1 hereof.

     

    “Event
      of Loss” means, with respect to any Property, any of the
      following:  (a) any loss, destruction or damage of such Property
      or (b) any condemnation, seizure, or taking, by exercise of the power of
      eminent domain or otherwise, of such Property, or confiscation of such Property
      or the requisition of the use of such Property.

     

    “Excess
      Availability” means, as of any time the same is to be determined, the
      amount (if any) by which (a) the lesser of the Borrowing Base as then
      determined and computed or the Revolving Credit Commitment as then in effect
      exceeds (b) the aggregate principal amount of Revolving Loans and
      L/C Obligations then outstanding.

     

    “Excess
      Cash Flow” means, with respect to any period, the difference (if any)
      between (a) EBITDA for such period and (b) federal, state and local
      income taxes paid in cash during such period plus Capital Expenditures
      during such period not financed with Indebtedness plus Interest Expense
      paid in cash during such period plus the aggregate amount of scheduled
      payments made by the Borrower and its Subsidiaries during such period in respect
      of all principal on all Indebtedness (whether at maturity, as a result of
      mandatory sinking fund redemption, or otherwise), plus Restricted
      Payments paid in cash by the Borrower during such period in compliance with
      Section 6.15 hereof.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    “Federal
      Funds Rate” means for any day the rate determined by the Administrative
      Agent to be the average (rounded upward, if necessary, to the next higher 1/100
      of 1%) of the rates per annum quoted to the Administrative Agent at
      approximately 10:00 a.m. (Cincinnati time) (or as soon thereafter as is
      practicable) on such day (or, if such day is not a Business Day, on the
      immediately preceding Business Day) by two or more Federal funds brokers
      selected by the Administrative Agent for sale to the Administrative Agent at
      face value of Federal funds in the secondary market in an amount equal or
      comparable to the principal amount owed to the Administrative Agent for which
      such rate is being determined.

     

    “Fixed
      Charges A” means, with reference to any period, the sum of
      (a) all scheduled payments of principal made or to be made during such
      period with respect to Indebtedness (“Principal Payments”) of the
      Borrower and its Subsidiaries (for purposes of clarity, Excess Cash Flow
      payments made pursuant to Section 2.8(b)(iii) hereof do not constitute Principal
      Payments), plus (b) the cash portion of any Interest Expense for such
      period, plus (c) federal, state, and local income taxes paid in cash by the
      Borrower and its Subsidiaries during such period; provided,
however, that notwithstanding anything in this definition to the
      contrary, for purposes of calculating Fixed Charges A for each quarter ending
      on
      or before July 31, 2008:

     

    (i)Principal
      Payments during the period of calculation shall be deemed to be the product
      of
      (x) a fraction, the numerator of which is 365 and the denominator of which
      is
      the number of days during the period from and including
      November 1, 2007 through and including the last day of such period of
      calculation (the “Post-Closing Period”) and (y) actual Principal
      Payments during the Post-Closing Period; 

     

    (ii)cash
      Interest Expense during the period of calculation shall be deemed to be equal
      to
      the product of (x) a fraction, the numerator of which is 365 and the denominator
      of which is the Post-Closing Period and (y) actual cash Interest Expense during
      the Post-Closing Period; and

     

    (iii)federal,
      state and local income taxes paid in cash by the Borrower and its Subsidiaries
      during the period of calculation shall be deemed equal to the product of (x)
      a
      fraction, the numerator of which is 365 and the denominator of which is the
      Post-Closing Period and (y) actual federal, state and local income taxes paid
      in
      cash by the Borrower and its Subsidiaries during the Post-Closing
      Period.

     

    “Fixed
      Charges B” means, with reference to any period, the sum of
      (a) all scheduled payments of principal made or to be made during such
      period with respect to Indebtedness (“Principal Payments”) of the
      Borrower and its Subsidiaries (for purposes of clarity, Excess Cash Flow
      payments made pursuant to Section 2.8(b)(iii) hereof do not constitute Principal
      Payments), plus (b) the cash portion of any Interest Expense for such
      period, plus (c) federal, state, and local income taxes paid in cash by the
      Borrower and its Subsidiaries during such period, plus (d) Restricted
      Payments made by the Borrower during such period; provided,
however, that notwithstanding anything in this definition to the
      contrary, for purposes of calculating Fixed Charges B before each quarter ending
      on or before July 31, 2008:

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (i)Principal
      Payments during the period of calculation shall be deemed to be the product
      of
      (x) a fraction, the numerator of which is 365 and the denominator of which
      is
      the number of days during the period from and including
      November 1, 2007 through and including the last day of such period of
      calculation (the “Post-Closing Period”) and (y) actual Principal
      Payments during the Post-Closing Period; 

     

    (ii)cash
      Interest Expense during the period of calculation shall be deemed to be equal
      to
      the product of (x) a fraction, the numerator of which is 365 and the denominator
      of which is the Post-Closing Period and (y) actual cash Interest Expense during
      the Post-Closing Period;

     

    (iii)federal,
      state and local income taxes paid in cash by the Borrower and its Subsidiaries
      during the period of calculation shall be deemed equal to the product of (x)
      a
      fraction, the numerator of which is 365 and the denominator of which is the
      Post-Closing Period and (y) actual federal, state and local income taxes paid
      in
      cash by the Parent, the Borrower and the Subsidiaries during the Post-Closing
      Period; and

     

    (iv)Restricted
      Payments made by the Borrower during the period of calculation shall be deemed
      to be equal to the product of (x) a fraction, the numerator of which is 365
      and
      the denominator of which is the Post-Closing Period and (y) actual Restricted
      Payments made by the Borrower during the Post-Closing Period.

     

    “Funds
      Transfer and Deposit Account Liability” means the liability of the Borrower
      or any of its Subsidiaries owing to any of the Lenders, or any Affiliates of
      such Lenders, arising out of (a) the execution or processing of electronic
      transfers of funds by automatic clearing house transfer, wire transfer or
      otherwise to or from the deposit accounts of the Borrower and/or any Subsidiary
      now or hereafter maintained with any of the Lenders or their Affiliates,
      (b) the acceptance for deposit or the honoring for payment of any check,
      draft or other item with respect to any such deposit accounts, and (c) any
      other deposit, disbursement, and cash management services afforded to the
      Borrower or any such Subsidiary by any of such Lenders or their
      Affiliates.

     

    “GAAP”
      means generally accepted accounting principles set forth from time to time
      in
      the opinions and pronouncements of the Accounting Principles Board and the
      American Institute of Certified Public Accountants and statements and
      pronouncements of the Financial Accounting Standards Board (or agencies with
      similar functions of comparable stature and authority within the U.S. accounting
      profession), which are applicable to the circumstances as of the date of
      determination.

     

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

     

    “Guaranty”
      and “Guaranties” each is defined in Section 4.3
      hereof.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    “Hazardous
      Material” means any substance, chemical, compound, product, solid, gas,
      liquid, waste, byproduct, pollutant, contaminant or material which is hazardous
      or toxic, and includes, without limitation, (a) asbestos, polychlorinated
      biphenyls and petroleum (including crude oil or any fraction thereof) and (b)
      any material classified or regulated as “hazardous” or “toxic” or words of like
      import pursuant to an Environmental Law.

     

    “Hedge
      Agreement” means any interest rate, currency or commodity swap agreements,
      cap agreements, collar agreements, floor agreements, exchange agreements,
      forward contracts, option contracts or similar interest rate or currency or
      commodity hedging arrangements.  

     

    “Hedging
      Liability” means the liability of the Borrower or any Subsidiary to any of
      the Lenders, or any Affiliates of such Lenders, in respect of any Hedge
      Agreement as the Borrower or such Subsidiary, as the case may be, may from
      time
      to time enter into with any one or more of the Lenders party to this Agreement
      or their Affiliates.

     

    “HHD
      Purchase” means that acquisition by the Purchaser from the Sellers of all
      or substantially all of the assets of Target, all pursuant to, and as described
      in, the Purchase Agreement. 

     

    “Hostile
      Acquisition” means the acquisition of the capital stock or other equity
      interests of a Person through a tender offer or similar solicitation of the
      owners of such capital stock or other equity interests which has not been
      approved (prior to such acquisition) by resolutions of the Board of Directors
      of
      such Person or by similar action if such Person is not a corporation, and,
      if
      such acquisition has been so approved, as to which such approval has not been
      withdrawn.

     

    “Indebtedness”
      means for any Person (without duplication) (a) all indebtedness of such
      Person for borrowed money, whether current or funded, or secured or unsecured,
      (b) all indebtedness for the deferred purchase price of Property or
      services, (c) all indebtedness created or arising under any conditional
      sale or other title retention agreement with respect to Property acquired by
      such Person (even though the rights and remedies of the seller or lender under
      such agreement in the event of a default are limited to repossession or sale
      of
      such Property), (d) all indebtedness secured by a purchase money mortgage
      or other Lien to secure all or part of the purchase price of Property subject
      to
      such mortgage or Lien, (e) all obligations under leases which shall have
      been or must be, in accordance with GAAP, recorded as Capital Leases in respect
      of which such Person is liable as lessee, (f) any liability in respect of
      banker’s acceptances or letters of credit, (g) any indebtedness, whether or
      not assumed, secured by Liens on Property acquired by such Person at the time
      of
      acquisition thereof, (h) all obligations under any so-called “synthetic
      lease” transaction entered into by such Person, (i) all obligations under
      any so-called “asset securitization” transaction entered into by such Person,
      and (j) all Contingent Obligations, it being understood that the term
“Indebtedness” shall not include trade payables, accrued payroll and
      commissions, taxes accrued and withheld, accrued and deferred income taxes
      and
      other accrued expenses arising in the ordinary course of business.

     

    “Indiana
      Street Property” is defined in Section 6.25(e) hereof.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    “Interest
      Expense” means, with reference to any period, the sum of all interest
      charges (including imputed interest charges with respect to Capitalized Lease
      Obligations and all amortization of debt discount and expense) of the Borrower
      and its Subsidiaries for such period determined on a consolidated basis in
      accordance with GAAP.  

     

    “Interest
      Period” means, with respect to Eurodollar Loans and Swing Loans, the period
      commencing on the date a Borrowing of Loans is advanced, continued or created
      by
      conversion and ending:  (a) in the case of a Eurodollar Loan, 1,
      2 or 3 months thereafter, and (b) in the case of a
      Swing Loan, on the date 1 to 5 days thereafter as mutually agreed to by the
      Borrower and the Administrative Agent; provided, however,
that:

     

    (i)no
      Interest Period with respect to any Swing Loan shall extend beyond the Revolving
      Credit Termination Date and no Interest Period with respect to any portion
      of
      the Term Loans shall extend beyond the final maturity date of the Term
      Loans;

     

    (ii)no
      Interest Period with respect to any portion of the Term Loans consisting of
      Eurodollar Loans shall extend beyond a date on which the Borrower is required
      to
      make a scheduled payment of principal on the Term Loans, unless the sum of
      (a) the aggregate principal amount of Term Loans that are Base Rate Loans
      plus (b) the aggregate principal amount of Term Loans that are Eurodollar
      Loans with Interest Periods expiring on or before such date equals or exceeds
      the principal amount to be paid on the Term Loans on such payment
      date;

     

    (iii)whenever
      the last day of any Interest Period would otherwise be a day that is not a
      Business Day, the last day of such Interest Period shall be extended to the
      next
      succeeding Business Day, provided that, if such extension would cause
      the last day of an Interest Period for a Borrowing of Eurodollar Loans to occur
      in the following calendar month, the last day of such Interest Period shall
      be
      the immediately preceding Business Day; and

     

    (iv)for
      purposes of determining an Interest Period for a Borrowing of Eurodollar Loans,
      a month means a period starting on one day in a calendar month and ending on
      the
      numerically corresponding day in the next calendar month; provided,
      however, that if there is no numerically corresponding day in the month in
      which such an Interest Period is to end or if such an Interest Period begins
      on
      the last Business Day of a calendar month, then such Interest Period shall
      end
      on the last Business Day of the calendar month in which such Interest Period
      is
      to end.

     

    “Inventory”
      means all raw materials, finished goods and work-in-process (other than
      packaging, crating, and supplies inventory; provided that this exclusion shall
      apply only to such items that are not held for sale in the ordinary course
      of
      business of the Borrower and its Subsidiaries and shall not include office
      supplies inventory that is held for sale in the ordinary course of business
      of
      the Borrower and its Subsidiaries) held for sale in which the Borrower or the
      relevant Subsidiary now has or hereafter acquires title to.

     

    “L/C
      Issuer” means Fifth Third Bank, an Ohio banking corporation.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    “L/C
      Obligations” means the aggregate undrawn face amounts of all outstanding
      Letters of Credit and all unpaid Reimbursement Obligations.

     

    “L/C
      Sublimit” means $5,000,000, as reduced pursuant to the terms
      hereof.

     

    “Landlord’s
      Agreement” shall mean any agreement relating to the real property of the
      Borrower and its Subsidiaries that is subject to a Leasehold Mortgage, between
      the Administrative Agent and the owner/lessor of such property, such agreement
      to provide, among other things, that such owner/lessor consents to the Leasehold
      Mortgage and recognizes the Administrative Agent’s rights under the Leasehold
      Mortgage for such property.

     

    “Leasehold
      Mortgages” means, collectively, each Credit Line Leasehold Deed of Trust
      and Security Agreement with Assignment of Rents, Leasehold Mortgage and Security
      Agreement with Assignment of Rents and Open-End Leasehold Mortgage and Security
      Agreement with Assignment of Rents between the Borrower or any of its
      Subsidiaries and the Administrative Agent relating to the Borrower’s or such
      Subsidiary’s real property, fixtures and interests in real property leased as of
      the Closing Date and commonly known as (i) 2450 1st Avenue, Huntington,
      West Virginia, (ii) 405 Ann Street, Parkersburg, West Virginia,
      (iii) 890 Russell Cave Road, Lexington, Kentucky, (iv) 1901 Mayview
      Road, Bridgeville, Pennsylvania, (v) 1515 Central Parkway, Cincinnati, Ohio
      and (vi) 120 Hills Plaza, Charleston, West Virginia, and any other
      leasehold mortgages delivered to the Administrative Agent pursuant to
      Section 4.2 hereof, as the same may be amended, modified, supplemented or
      restated from time to time. 

     

    “Legal
      Requirement” means any treaty, convention, statute, law, regulation,
      ordinance, license, permit, governmental approval, injunction, judgment, order,
      consent decree or other requirement of any Governmental Authority.

     

    “Lenders”
      means and includes Fifth Third Bank, an Ohio banking corporation, and the other
      banks, financial institutions and other lenders from time to time party to
      this
      Agreement, including each assignee Lender pursuant to Section 10.10
      hereof.

     

    “Lending
      Office” is defined in Section 8.6 hereof.

     

    “Letter
      of Credit” is defined in Section 2.3(a) hereof.

     

    “Leverage
      Ratio” means, as of the date of determination thereof, the ratio of Total
      Funded Debt of the Borrower and its Subsidiaries as of such date to EBITDA
      for
      the period of four fiscal quarters then ended. 

     

    “LIBOR”
      means, for an Interest Period for a Borrowing of Eurodollar Loans, (a) the
      LIBOR Index Rate for such Interest Period, if such rate is available, and
      (b) if the LIBOR Index Rate cannot be determined, the arithmetic average of
      the rates of interest per annum (rounded upwards, if necessary, to the nearest
      1/100 of 1%) at which deposits in Dollars in immediately available funds are
      offered to the Administrative Agent at 11:00 a.m. (London, England time)
      2 Business Days before the beginning of such Interest Period by 3 or
      more major banks in the interbank eurodollar market selected by the
      Administrative Agent for delivery on the first day of and for a period equal
      to
      such Interest Period and in an amount equal or comparable to the principal
      amount of the Eurodollar Loan scheduled to be made by the Administrative Agent
      as part of such Borrowing.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    “LIBOR
      Index Rate” means, for any Interest Period, the rate per annum (rounded
      upwards, if necessary, to the next higher one hundred-thousandth of a percentage
      point) for deposits in Dollars for a period equal to such Interest Period,
      which
      appears on the Reuters Screen LIBOR01 Page as of 11:00 a.m. (London, England
      time) on the day 2 Business Days before the commencement of such Interest
      Period.

     

    “Lien”
      means any deed of trust, mortgage, lien, security interest, pledge, charge
      or encumbrance of any kind in respect of any Property, including the interests
      of a vendor or lessor under any conditional sale, Capital Lease or other title
      retention arrangement.

     

    “Loan”
      means any Revolving Loan, Term Loan or Swing Loan, whether outstanding as a
      Base
      Rate Loan or Eurodollar Loan or otherwise as permitted hereunder, each of which
      is a “type” of Loan hereunder.

     

    “Loan
      Documents” means this Agreement, the Notes, the Applications, the
      Collateral Documents, the Guaranties, and each other agreement, instrument
      or
      document to be delivered hereunder or thereunder or otherwise in connection
      therewith, other than Hedge Agreements.

     

    “Material
      Adverse Effect” means (a) a material adverse change in, or material adverse
      effect upon, the operations, business, Property, or condition (financial or
      otherwise) or prospects of the Borrower or of the Borrower and its Subsidiaries
      taken as a whole, (b) a material impairment of the ability of the Borrower
      or any Subsidiary to perform its material obligations under any Loan Document
      or
      (c) a material adverse effect upon (i) the legality, validity, binding
      effect or enforceability against the Borrower or any Subsidiary of any Loan
      Document or the rights and remedies of the Administrative Agent and the Lenders
      thereunder or (ii) the perfection or priority of any Lien granted under any
      Collateral Document.

     

    “Moody’s”
      means Moody’s Investors Service, Inc.

     

    “Mortgages”
      means, collectively, each Credit Line Deed of Trust and Security Agreement
      with
      Assignment of Rents, Deed of Trust and Security Agreement with Assignment of
      Rents, Mortgage and Security Agreement with Assignment of Rents and Open-End
      Mortgage and Security Agreement with Assignment of Rents between the Borrower
      or
      any of its Subsidiaries and the Administrative Agent relating to the Borrower’s
      and each Subsidiary’s real property, fixtures and
      interests in real property owned as of the Closing Date and commonly known
      as  (i) 1563 Hansford Street, Charleston, West Virginia,
      (ii) 811 Virginia Street, Charleston, West Virginia, (iii) 10848
      Airline Highway, Baton Rouge, Louisiana, (iv) 13112 South Choctaw, Baton
      Rouge, Louisiana, (v) 323 Hamilton, Jackson, Mississippi, (vi) 766
      Brookside Dr., Kingsport, Tennessee, (vii) 544 Haywood Rd., Asheville,
      North Carolina, (viii) 700 N. Fourth St., Clarksburg, West Virginia,
      (ix) 711 Indiana Avenue, Charleston, West Virginia, and (x) 946 5th
      Avenue, Huntington, West Virginia, and any other mortgages or deeds of trust
      delivered to the Administrative Agent pursuant to Section 4.2 hereof, as
      the same may be amended, modified, supplemented or restated from time to
      time.

     

    
      
        
        

      

      
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    “Net
      Cash Proceeds” means, as applicable, (a) with respect to any
      Disposition by a Person, cash and cash equivalent proceeds received by or for
      such Person’s account, net of (i) reasonable direct costs relating to such
      Disposition and (ii) sale, use or other transactional taxes paid or payable
      by such Person as a direct result of such Disposition, (b) with respect to
      any Event of Loss of a Person,  cash and cash equivalent proceeds
      received by or for such Person’s account (whether as a result of payments made
      under any applicable insurance policy therefor or in connection with
      condemnation proceedings or otherwise), net of reasonable direct costs incurred
      in connection with the collection of such proceeds, awards or other payments,
      and (c) with respect to any offering of equity securities of a Person or
      the issuance of any Indebtedness by a Person,  cash and cash
      equivalent proceeds received by or for such Person’s account, net of reasonable
      legal, underwriting, and other fees and expenses incurred as a direct result
      thereof.

     

    “Net
      Income” means, with reference to any period, the net income (or net loss)
      of the Borrower and its Subsidiaries for such period computed on a consolidated
      basis in accordance with GAAP; provided that, there shall be excluded
      from Net Income (a) the net income (or net loss) of any Person accrued
      prior to the date it becomes a Subsidiary of, or has merged into or consolidated
      with, the Borrower or another Subsidiary, except to the extent that the Borrower
      has delivered the financial statements of the Acquired Business for such period,
      which financial statements shall have been audited by an independent accounting
      firm reasonably satisfactory to the Administrative Agent, and the Administrative
      Agent agrees to the inclusion of such net income (or net loss) of such Person
      and (b) the net income (or net loss) of any Person (other than a
      Subsidiary) in which the Borrower or any of its Subsidiaries has a equity
      interest in, except to the extent of the amount of dividends or other
      distributions actually paid to the Borrower or any of its Subsidiaries during
      such period.  

     

    “Net
      Worth” means, at any time the same is to be determined, total shareholder’s
      equity (including capital stock, additional paid-in capital and retained
      earnings after deducting treasury stock) that would appear on the balance sheet
      of the Borrower and its Subsidiaries determined on a consolidated basis in
      accordance with GAAP.

     

    “Notes”
      means and includes the Revolving Notes, the Term Notes and the Swing
      Note.

     

    “Obligations”
      means all obligations of the Borrower to pay principal and interest on the
      Loans, all Reimbursement Obligations owing under the Applications, all fees
      and
      charges payable hereunder, and all other payment obligations of the Borrower
      or
      any of its Subsidiaries arising under or in relation to any Loan Document,
      in
      each case whether now existing or hereafter arising, due or to become due,
      direct or indirect, absolute or contingent, and howsoever evidenced, held or
      acquired.

     

    “Participant”
      is defined in Section 10.10(d) hereof.

     

    “Participating
      Interest” is defined in Section 2.3(d) hereof.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    “Participating
      Lender” is defined in Section 2.3(d) hereof.

     

    “Patriot
      Act” is defined in Section 5.24(b) hereof.

     

    “PBGC”
      means the Pension Benefit Guaranty Corporation or any Person succeeding to
      any
      or all of its functions under ERISA.

     

    “Percentage”
      means for any Lender its Revolver Percentage or Term Loan Percentage, as
      applicable; and where the term “Percentage” is applied on an aggregate
      basis (including, without limitation, Section 9.6 hereof), such aggregate
      percentage shall be calculated by aggregating the separate components of the
      Revolver Percentage and Term Loan Percentage, and expressing such components
      on
      a single percentage basis.

     

    “Permitted
      Acquisition” means any Acquisition with respect to which all of the
      following conditions shall have been satisfied:

     

    (a)the
      Acquired Business is in the same or a similar line of business engaged in as
      of
      the date of this Agreement by the Borrower and any of its Subsidiaries and
      has
      its primary operations in the United States of America;

     

    (b)the
      Acquisition shall not be a Hostile Acquisition;

     

    (c)the
      Total Consideration for the Acquired Business shall not exceed $2,500,000,
      net
      of working capital received, with any earnouts paid as part of such Total
      Consideration for the Acquired Business not to exceed $500,000, and, when taken
      together with the Total Consideration for all Acquired Businesses acquired
      after
      the Closing Date, excluding the consideration for the HHD Purchase, such
      aggregate Total Consideration does not exceed $5,000,000, net of working capital
      received;

     

    (d)the
      Borrower shall have notified the Administrative Agent and Lenders not less
      than
      10 days (or such shorter time period as may be agreed to by the Administrative
      Agent) prior to any such Permitted Acquisition;

     

    (e)if
      a
      new Subsidiary is formed or acquired as a result of or in connection with the
      Acquisition, such Subsidiary shall be a Subsidiary organized under the laws
      of a
      jurisdiction in the United States and the Borrower shall have complied with
      the
      requirements of Section 4 hereof in connection therewith; and

     

    (f)after
      giving effect to the Acquisition, no Default or Event of Default shall exist,
      including with respect to the covenants contained in
      Section 6.20 on a pro forma basis, and the
      Borrower shall have delivered to the Administrative Agent a compliance
      certificate in the form of Exhibit E attached hereto evidencing such
      compliance with Section 6.20.

     

    “Permitted
      Lien” is defined in Section 6.12 hereof.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    “Person”
      means any natural person, partnership, corporation, limited liability company,
      association, trust, unincorporated organization or any other entity or
      organization, including a government or agency or political subdivision
      thereof.

     

    “Plan”
      means any employee pension benefit plan covered by Title IV of ERISA or
      subject to the minimum funding standards under Section 412 of the Code that
      either (a) is maintained by a member of the Controlled Group for employees
      of a member of the Controlled Group or (b) is maintained pursuant to a
      collective bargaining agreement or any other arrangement under which more than
      one employer makes contributions and to which a member of the Controlled Group
      is then making or accruing an obligation to make contributions or has within
      the
      preceding five plan years made contributions.

     

    “Premises”
      means the real property owned or leased by the Borrower or any Subsidiary,
      including, without limitation, the real property and improvements thereon owned
      by the Borrower or any Subsidiary subject to the Lien of the Mortgages or any
      other Collateral Documents.

     

    “Property”
      means, as to any Person, all types of real, personal, tangible, intangible
      or
      mixed property owned by such Person whether or not included in the most recent
      balance sheet of such Person and its Subsidiaries under GAAP.

     

    “Purchase
      Agreement” means that certain Asset Purchase Agreement dated as of
      June 28, 2007, by and among the Borrower, Purchaser and the
      Sellers.  

     

    “Purchaser”
      means Champion Publishing, Inc., a West Virginia corporation and direct
      Wholly-owned Subsidiary of the Borrower.

     

    “RCRA”
      means the Solid Waste Disposal Act, as amended by the Resource Conservation
      and
      Recovery Act of 1976 and Hazardous and Solid Waste Amendments of 1984,
      42 U.S.C. §§6901 et seq., and any future
      amendments.

     

    “Receivables”
      means all rights to the payment of a monetary obligation now or hereafter owing
      to the Borrower or any Subsidiary, evidenced by accounts, instruments, chattel
      paper or general intangibles.

     

    “Reimbursement
      Obligation” is defined in Section 2.3(c) hereof.

     

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

     

    “Release”
      shall mean any spilling, leaking, pumping, pouring, emitting, emptying,
      discharging, injecting, escaping, leaching, dumping, disposing or migration
      into
      the environment.

     

    “Required
      Lenders” means, as of the date of determination thereof, Lenders whose
      outstanding Loans and interests in Letters of Credit and Unused Revolving Credit
      Commitments constitute more than 50% of the sum of the total outstanding Loans,
      interests in Letters of Credit and Unused Revolving Credit
      Commitments.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    “Reserve
      Percentage” means, for any Borrowing of Eurodollar Loans, the daily average
      for the applicable Interest Period of the maximum rate, expressed as a decimal,
      at which reserves (including, without limitation, any supplemental, marginal,
      and emergency reserves) are imposed during such Interest Period by the Board
      of
      Governors of the Federal Reserve System (or any successor) on “eurocurrency
      liabilities”, as defined in such Board’s Regulation D (or in respect
      of any other category of liabilities that includes deposits by reference to
      which the interest rate on Eurodollar Loans is determined or any category of
      extensions of credit or other assets that include loans by non-United States
      offices of any Lender to United States residents), subject to any amendments
      of
      such reserve requirement by such Board or its successor, taking into account
      any
      transitional adjustments thereto.  For purposes of this definition,
      the Eurodollar Loans shall be deemed to be “eurocurrency liabilities”
      as defined in Regulation D without benefit or credit for any prorations,
      exemptions or offsets under Regulation D.

     

    “Restricted
      Payment” is defined Section 6.15 hereof.

     

    “Reuters
      Screen LIBOR01 Page” means the display designated as the “LIBOR01
      Page” on the Reuters Service (or such other page as may replace the LIBOR01
      Page on that service or such other service as may be nominated by the British
      Bankers’ Association as the information vendor for the purpose of displaying
      British Bankers’ Association Interest Settlement Rates for U.S. Dollar
      deposits).

     

    “Revolver
      Percentage” means, for each Lender, the percentage of the aggregate
      Revolving Credit Commitments represented by such Lender’s Revolving Credit
      Commitment or, if the Revolving Credit Commitments have been terminated, the
      percentage held by such Lender (including through participation interests in
      Reimbursement Obligations) of the aggregate principal amount of all Revolving
      Loans and L/C Obligations then outstanding.

     

    “Revolving
      Credit” means the credit facility for making Revolving Loans and Swing
      Loans and issuing Letters of Credit described in Sections 2.2, 2.3 and 2.10
      hereof. 

     

    “Revolving
      Credit Commitment” means, as to any Lender, the obligation of such Lender
      to make Revolving Loans and to participate in Swing Loans and Letters of Credit
      issued for the account of the Borrower hereunder in an aggregate principal
      or
      face amount at any one time outstanding not to exceed the amount set forth
      opposite such Lender’s name on Schedule 1 attached hereto and made a part
      hereof, as the same may be reduced or modified at any time or from time to
      time
      pursuant to the terms hereof.  The Borrower and the Lenders
      acknowledge and agree that the Revolving Credit Commitments of the Lenders
      aggregate $30,000,000 on the date hereof. 

     

    “Revolving
      Credit Termination Date” means September 14, 2012 or such earlier date
      on which the Revolving Credit Commitments are terminated in whole pursuant
      to
      Section 2.10, 7.2 or 7.3 hereof.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    “Revolving
      Loan” is defined in Section 2.2 hereof and, as so defined, includes a
      Base Rate Loan or a Eurodollar Loan, each of which is a “type” of
      Revolving Loan hereunder.

     

    “Revolving
      Note” is defined in Section 2.12 hereof.

     

    “S&P”
      means Standard & Poor’s Ratings Services Group, a division of The
      McGraw-Hill Companies, Inc.

     

    “SEC”
      is defined in Section 6.1(g) hereof.

     

    “Security
      Agreement” means that certain Security Agreement dated the date of this
      Agreement by and among the Borrower and its Subsidiaries and the Administrative
      Agent, as the same may be amended, modified, supplemented or restated from
      time
      to time.

     

    “Sellers”
      means GateHouse Media, Inc., a Delaware corporation, GateHouse Media Illinois
      Holdings, Inc., a Delaware corporation, and GateHouse Media West Virginia
      Holdings, Inc., a Delaware corporation.

     

    “Stockholder
      Distribution” is defined in Section 6.15 hereof.

     

    “Subsidiary”
      means, as to any particular parent corporation or organization, any other
      corporation or organization more than 50% of the outstanding Voting Stock of
      which is at the time directly or indirectly owned by such parent corporation
      or
      organization or by any one or more other entities which are themselves
      subsidiaries of such parent corporation or organization.  Unless
      otherwise expressly noted herein, the term “Subsidiary” means a
      Subsidiary of the Borrower or of any of its direct or indirect Subsidiaries;
      provided that, notwithstanding the foregoing, U.S. Tag & Ticket
      Company, Inc. shall not be considered a Subsidiary of the Borrower.

     

    “Swing
      Line” means the credit facility for making one or more Swing Loans
      described in Section 2.11 hereof.

     

    “Swing
      Line Sublimit” means $5,000,000, as reduced pursuant to the terms
      hereof.

     

    “Swing
      Loan” and “Swing Loans” each is defined in Section 2.11
      hereof.

     

    “Swing
      Note” is defined in Section 2.12 hereof.

     

    “Target”
      means, collectively, the The Herald-Dispatch, a daily newspaper
      distributed in and around Huntington, West Virginia, together with all related
      publications and services and assets and facilities, all related web sites
      and
      all of Sellers’ rights to prepare, publish, sell and distribute any of the
      foregoing in all languages (collectively, the “Newspaper”), the
      mastheads and certain other intellectual property associated with the Newspaper,
      and all other assets to be acquired by the Borrower pursuant to the Purchase
      Agreement.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    “Term
      Credit” means the credit facility for the Term Loans described in
      Section 2.1 hereof.

     

    “Term
      Loan” is defined in Section 2.1 hereof and, as so defined, includes a
      Base Rate Loan or a Eurodollar Loan, each of which is a “type” of Term
      Loan hereunder.

     

    “Term
      Loan Commitment” means, as to any Lender, the obligation of such Lender to
      make its Term Loan on the Closing Date in the principal amount not to exceed
      the
      amount set forth opposite such Lender’s name on Schedule 1 attached hereto
      and made a part hereof.  The Term Loan Commitments of the Lenders
      aggregate $70,000,000 on the date hereof.  

     

    “Term
      Loan Percentage” means, for each Lender, the percentage of the Term Loan
      Commitments represented by such Lender’s Term Loan Commitment or, if the Term
      Loan Commitments have been terminated or have expired, the percentage held
      by
      such Lender of the aggregate principal amount of all Term Loans then
      outstanding.

     

    “Term
      Note” is defined in Section 2.12 hereof.  

     

    “Total
      Consideration” means the total amount (but without duplication) of
      (a) cash paid in connection with any Acquisition, including without
      limitation any earnout payments paid after the closing date for the Acquisition,
      plus (b) indebtedness payable to the seller in connection with such
      Acquisition, plus (c) the fair market value of any equity securities,
      including any warrants or options therefor, delivered in connection with any
      Acquisition, plus (d) the present value of covenants not to compete entered
      into in connection with such Acquisition or other future payments which are
      required to be made over a period of time and are not contingent upon the
      Borrower or its Subsidiary meeting financial performance objectives (exclusive
      of salaries paid in the ordinary course of business) (discounted at the Base
      Rate), but only to the extent not included in clause (a), (b) or (c) above,
      plus (e) the amount of indebtedness assumed in connection with such
      Acquisition.

     

    “Total
      Funded Debt” means, at any time the same is to be determined, the aggregate
      of all Indebtedness of the Borrower and its Subsidiaries at such time determined
      on a consolidated basis in accordance with GAAP.

     

    “Unfunded
      Vested Liabilities” means, for any Plan at any time, the amount (if any) by
      which the present value of all vested nonforfeitable accrued benefits under
      such
      Plan exceeds the fair market value of all Plan assets allocable to such
      benefits, all determined as of the then most recent valuation date for such
      Plan, but only to the extent that such excess represents a potential liability
      of a member of the Controlled Group to the PBGC or the Plan under Title IV
      of ERISA.

     

    “Unused
      Revolving Credit Commitments” means, at any time, the difference between
      the Revolving Credit Commitments then in effect and the aggregate outstanding
      principal amount of Revolving Loans and L/C Obligations; provided
      that Swing Loans outstanding from time to time shall be deemed to reduce the
      Unused Revolving Credit Commitment of the Administrative Agent for purposes
      of
      computing the commitment fee under Section 2.13(a) hereof.

     

    
      
        
        

      

      
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    “Voting
      Stock” of any Person means capital stock or other equity interests of any
      class or classes (however designated) having ordinary power for the election
      of
      directors or other similar governing body of such Person, other than stock
      or
      other equity interests having such power only by reason of the happening of
      a
      contingency.

     

    “Welfare
      Plan” means a “welfare plan” as defined in Section 3(1) of
      ERISA.

     

    “Wholly-owned
      Subsidiary” means, at any time, any Subsidiary of which all of the issued
      and outstanding shares of capital stock (other than directors’ qualifying shares
      as required by law) or other equity interests are owned by any one or more
      of
      the Borrower and the Borrower’s other Wholly-owned Subsidiaries at such
      time.

     

    Section 1.2.Interpretation.  The
      foregoing definitions are equally applicable to both the singular and plural
      forms of the terms defined.  The words “hereof”,
“herein”, and “hereunder” and words of like import when used
      in this Agreement shall refer to this Agreement as a whole and not to any
      particular provision of this Agreement.  All references to time of day
      herein are references to Cincinnati, Ohio, time unless otherwise specifically
      provided.  Where the character or amount of any asset or liability or
      item of income or expense is required to be determined or any consolidation
      or
      other accounting computation is required to be made for the purposes of this
      Agreement, it shall be done in accordance with GAAP except where such principles
      are inconsistent with the specific provisions of this Agreement.  All
      terms that are used in this Agreement which are defined in the Uniform
      Commercial Code of the State of Ohio as in effect from time to time
      (“UCC”) shall have the same meanings herein as such terms are defined
      in the UCC, unless this Agreement shall otherwise specifically
      provide.

     

    Section 1.3.Change
      in Accounting Principles.  If, after the date of this Agreement,
      there shall occur any change in GAAP from those used in the preparation of
      the
      financial statements referred to in Section 5.3 hereof and such change
      shall result in a change in the method of calculation of any financial covenant,
      standard or term found in this Agreement, either the Borrower or the Required
      Lenders may by notice to the Lenders and the Borrower, respectively, require
      that the Lenders and the Borrower negotiate in good faith to amend such
      covenants, standards, and term so as equitably to reflect such change in
      accounting principles, with the desired result being that the criteria for
      evaluating the financial condition of the Borrower and its Subsidiaries shall
      be
      the same as if such change had not been made.  No delay by the
      Borrower or the Required Lenders in requiring such negotiation shall limit
      their
      right to so require such a negotiation at any time after such a change in
      accounting principles.  Until any such covenant, standard, or term is
      amended in accordance with this Section 1.3, financial covenants shall be
      computed and determined in accordance with GAAP in effect prior to such change
      in accounting principles.  Without limiting the generality of the
      foregoing, the Borrower shall neither be deemed to be in compliance with any
      financial covenant hereunder nor out of compliance with any financial covenant
      hereunder if such state of compliance or noncompliance, as the case may be,
      would not exist but for the occurrence of a change in accounting principles
      after the date hereof.

     

    
      
        
        

      

      
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              Section 2.The
                Credit Facilities.

            

    

     

    Section 2.1.Term
      Loan Commitments.  Each Lender severally and not jointly agrees,
      subject to the terms and conditions hereof, to make a loan (each individually
      a
“Term Loan” and, collectively, the “Term Loans”) in Dollars to
      the Borrower in the amount of such Lender’s Term Loan Commitment.  The
      Term Loans shall be advanced in a single Borrowing on the Closing
      Date.  As provided in Section 2.5(a), and subject to the terms
      hereof, the Borrower may elect that all or any part of the Term Loans be
      outstanding as Base Rate Loans or Eurodollar Loans.  No amount of any
      Term Loan may be reborrowed once it is repaid.  

     

    Section 2.2.Revolving
      Credit Commitments.  Prior to the Revolving Credit Termination
      Date, each Lender severally and not jointly agrees, subject to the terms and
      conditions hereof, to make revolving loans (each individually a “Revolving
      Loan” and, collectively, the “Revolving Loans”) in Dollars to the
      Borrower from time to time up to the amount of such Lender’s Revolving Credit
      Commitment in effect at such time; provided, however, the sum of the
      aggregate principal amount of Revolving Loans, Swing Loans and
      L/C Obligations at any time outstanding shall not exceed lesser of
      (i) the sum of all Revolving Credit Commitments in effect at such time and
      (ii) the Borrowing Base as then computed and determined.  Each
      Borrowing of Revolving Loans shall be made ratably by the Lenders in proportion
      to their respective Revolver Percentages.  As provided in
      Section 2.5(a), and subject to the terms hereof, the Borrower may elect
      that each Borrowing of Revolving Loans be either Base Rate Loans or Eurodollar
      Loans.  Revolving Loans may be repaid and reborrowed before the
      Revolving Credit Termination Date, subject to the terms and conditions
      hereof.  Notwithstanding any other provision of this Agreement to the
      contrary, the Administrative Agent shall have the right
      from time to time to establish reserves against the amount of Revolving Credit
      which the Borrower may otherwise request hereunder in such amounts and with
      respect to such matters (including, without limitation, reserves with respect
      to
      the Funds Transfer and Deposit Account Liability and Hedging Liability) as
      the
      Administrative Agent shall deem necessary or appropriate in its reasonable
      judgment.  The amount of such reserves shall be subtracted from the
      Borrowing Base when calculating the amount of availability
      under the Revolving Credit and shall be deemed usage of the Revolving Credit
      Commitment, in each case when calculating the amount of availability under
      the
      Revolving Credit for purposes of Sections 2 and 3
      hereof.  Additionally, the Administrative Agent may from time to time
      reduce the percentages applicable to Eligible Receivables and Eligible Inventory
      as they relate to the Borrowing Base if the Administrative Agent determines
      in
      its reasonable judgment that there has been a material adverse change in
      circumstances relating to any or all of the Collateral from those circumstances
      in existence on the date of this Agreement or in the condition (financial or
      otherwise) of the Borrower or any Subsidiary.  So long as
      no Default or Event of Default exists, the Administrative Agent agrees to give
      the Borrower three (3) Business Days’ prior notice of the establishment of
      any such reserve (other than reserves relating to the Funds Transfer and Deposit
      Account Liability and the Hedging Liability, as to which no such notice need
      be
      given) or the reduction of any such percentage.

     

    Section 2.3.Letters
      of Credit.  (a) General Terms.  Subject
      to the terms and conditions hereof, as part of the Revolving Credit, the
      L/C Issuer shall issue standby letters of credit (each a “Letter of
      Credit”) for the Borrower’s account in an aggregate undrawn face amount up
      to the L/C Sublimit; provided, however, the sum of the aggregate
      principal amount of Revolving Loans, Swing Loans and
      L/C Obligations at any time outstanding shall not exceed the lesser of (i)
      the sum of all Revolving Credit Commitments in effect at such time and (ii)
      the
      Borrowing Base as then computed and determined.  Each Lender shall be
      obligated to reimburse the L/C Issuer for such Lender’s Revolver Percentage
      of the amount of each drawing under a Letter of Credit and, accordingly, each
      Letter of Credit shall constitute usage of the Revolving Credit Commitment
      of
      each Lender pro rata in an amount equal to its Revolver Percentage of the
      L/C Obligations then outstanding.

     

    
      
        
        

      

      
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    (b)Applications.  At
      any time before the Revolving Credit Termination Date, the L/C Issuer
      shall, at the request of the Borrower, issue one or more Letters of Credit
      in
      Dollars, in form and substance acceptable to the L/C Issuer, with
      expiration dates no later than the earlier of 12 months from the date of
      issuance (or which are cancelable not later than 12 months from the date of
      issuance and each renewal) or 30 days prior to the Revolving Credit
      Termination Date, in an aggregate face amount as set forth above, upon the
      receipt of a duly executed application for the relevant Letter of Credit in
      the
      form then customarily prescribed by the L/C Issuer for the Letter of Credit
      requested (each an “Application”).  Notwithstanding anything
      contained in any Application to the contrary:  (i) the Borrower
      shall pay fees in connection with each Letter of Credit as set forth in
      Section 2.13(b) hereof, and (ii) if the L/C Issuer is not timely
      reimbursed for the amount of any drawing under a Letter of Credit on the date
      such drawing is paid, the Borrower’s obligation to reimburse the L/C Issuer
      for the amount of such drawing shall bear interest (which the Borrower hereby
      promises to pay) from and after the date such drawing is paid at a rate per
      annum equal to the sum of 3.0% plus the Applicable Margin plus the Base Rate
      from time to time in effect (computed on the basis of a year of 365 or
      366 days, as the case may be, and the actual number of days
      elapsed).  Without limiting the foregoing, the L/C Issuer’s
      obligation to issue, amend or extend the expiration date of a Letter of Credit
      is subject to the terms or conditions of this Agreement (including the
      conditions set forth in Section 3.1 and the other terms of this
      Section 2.3).

     

    (c)The
      Reimbursement Obligations.  Subject to Section 2.3(b)
      hereof, the obligation of the Borrower to reimburse the L/C Issuer for all
      drawings under a Letter of Credit (a “Reimbursement Obligation”) shall
      be governed by the Application related to such Letter of Credit and this
      Agreement, except that reimbursement shall be made by no later than
      12:00 Noon (Cincinnati time) on the date when each drawing is to be paid if
      the Borrower has been informed of such drawing by the L/C Issuer on or
      before 11:30 a.m. (Cincinnati time) on the date when such drawing is to be
      paid or, if notice of such drawing is given to the Borrower after
      11:30 a.m. (Cincinnati time) on the date when such drawing is to be paid,
      by the end of such day, in immediately available funds at the Administrative
      Agent’s principal office in Cincinnati, Ohio or such other office as the
      Administrative Agent may designate in writing to the Borrower, and the
      Administrative Agent shall thereafter cause to be distributed to the
      L/C Issuer such amount(s) in like funds.  If the Borrower does
      not make any such reimbursement payment on the date due and the Participating
      Lenders fund their participations in the manner set forth in Section 2.3(d)
      below, then all payments thereafter received by the Administrative Agent in
      discharge of any of the relevant Reimbursement Obligations shall be distributed
      in accordance with Section 2.3(d) below.  In addition, for the
      benefit of the Administrative Agent, the L/C Issuer and each Lender, the
      Borrower agrees that, notwithstanding any provision of any Application, its
      obligations under this Section 2.3(c)

     

    
      
        
        

      

      
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    and
      each
      Application shall be absolute, unconditional and irrevocable, and shall be
      performed strictly in accordance with the terms of this Agreement and the
      Applications, under all circumstances whatsoever, including without limitation
      (i) any lack of validity or enforceability of any Loan Document;
      (ii) any amendment or waiver of or any consent to departure from all or any
      of the provisions of any Loan Document; (iii) the existence of any claim,
      set-off, defense or other right the Borrower may have at any time against a
      beneficiary of a Letter of Credit (or any Person for whom a beneficiary may
      be
      acting), the Administrative Agent, the L/C Issuer, any Lender or any other
      Person, whether in connection with this Agreement, another Loan Document, the
      transaction related to the Loan Document or any unrelated transaction;
      (iv) any statement or any other document presented under a 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; (v) payment by
      the Administrative Agent or a L/C Issuer under a Letter of Credit against
      presentation to the Administrative Agent or a L/C Issuer of a draft or
      certificate that does not comply with the terms of the Letter of Credit,
provided that the Administrative Agent’s or L/C Issuer’s
      determination that documents presented under the Letter of Credit comply with
      the terms thereof did not constitute gross negligence or willful misconduct
      of
      the Administrative Agent or L/C Issuer; or (vi) any other act or omission
      to act or delay of any kind by the Administrative Agent or a L/C Issuer,
      any Lender or any other Person or any other event or circumstance whatsoever
      that might, but for the provisions of this Section 2.3(c), constitute a
      legal or equitable discharge of the Borrower’s obligations hereunder or under an
      Application.

     

    (d)The
      Participating Interests.  Each Lender (other than the Lender
      acting as L/C Issuer) severally and not jointly agrees to purchase from the
      L/C Issuer, and the L/C Issuer hereby agrees to sell to each such
      Lender (a “Participating Lender”), an undivided participating interest
      (a “Participating Interest”) to the extent of its Revolver Percentage
      in each Letter of Credit issued by, and each Reimbursement Obligation owed
      to,
      the L/C Issuer.  Upon Borrower’s failure to pay any Reimbursement
      Obligation on the date and at the time required, or if the L/C Issuer is
      required at any time to return to the Borrower or to a trustee, receiver,
      liquidator, custodian or other Person any portion of any payment of any
      Reimbursement Obligation, each Participating Lender shall, not later than the
      Business Day it receives a certificate in the form of Exhibit A hereto from
      the L/C Issuer (with a copy to the Administrative Agent) to such effect, if
      such certificate is received before 1:00 p.m. (Cincinnati time), or not
      later than 1:00 p.m. (Cincinnati time) the following Business Day, if such
      certificate is received after such time, pay to the Administrative Agent for
      the
      account of the L/C Issuer an amount equal to such Participating Lender’s
      Revolver Percentage of such unpaid Reimbursement Obligation together with
      interest on such amount accrued from the date the L/C Issuer made the
      related payment to the date of such payment by such Participating Lender at
      a
      rate per annum equal to:  (i) from the date the L/C Issuer
      made the related payment to the date 2 Business Days after payment by such
      Participating Lender is due hereunder, the Federal Funds Rate for each such
      day
      and (ii) from the date 2 Business Days after the date such payment is
      due from such Participating Lender to the date such payment is made by such
      Participating Lender, the Base Rate in effect for each such day.  Each
      such Participating Lender shall, after making its appropriate payment, be
      entitled to receive its Revolver Percentage of each payment received in respect
      of the relevant Reimbursement Obligation and of interest paid thereon, with
      the
      L/C Issuer retaining its Revolver Percentage thereof as a Lender
      hereunder.  

     

    
      
        
        

      

      
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    The
      several obligations of the Participating Lenders to the L/C Issuer under
      this Section 2.3 shall be absolute, irrevocable and unconditional under any
      and all circumstances and shall not be subject to any set-off, counterclaim
      or
      defense to payment which any Participating Lender may have or has had against
      the Borrower, the L/C Issuer, the Administrative Agent, any Lender or any
      other Person.  Without limiting the generality of the foregoing, such
      obligations shall not be affected by any Default or Event of Default or by
      any
      reduction or termination of the Revolving Credit Commitment of any Lender,
      and
      each payment by a Participating Lender under this Section 2.3 shall be made
      without any offset, abatement, withholding or reduction whatsoever.

     

    (e)Indemnification.  The
      Participating Lenders shall, to the extent of their respective Revolver
      Percentages, indemnify the L/C Issuer (to the extent not reimbursed by the
      Borrower) against any cost, expense (including reasonable counsel fees and
      disbursements), claim, demand, action, loss or liability (except such as result
      from the L/C Issuer’s gross negligence or willful misconduct) that the
      L/C Issuer may suffer or incur in connection with any Letter of Credit
      issued by it.  The obligations of the Participating Lenders under this
      Section 2.3(e) and all other parts of this Section 2.3 shall survive
      termination of this Agreement and of all Applications, Letters of Credit, and
      all drafts and other documents presented in connection with drawings
      thereunder.

     

    (f)Manner
      of Requesting a Letter of Credit.  The Borrower shall provide at
      least three (3) Business Days’ advance written notice to the Administrative
      Agent (or such lesser notice as the Administrative Agent and the L/C Issuer
      may agree in their sole discretion) of each request for the issuance of a Letter
      of Credit, each such notice to be accompanied by a properly completed and
      executed Application for the requested Letter of Credit and, in the case of
      an
      extension or amendment or an increase in the amount of a Letter of Credit,
      a
      written request therefor, in a form acceptable to the Administrative Agent
      and
      the L/C Issuer, in each case, together with the fees called for by this
      Agreement.  The Administrative Agent shall promptly notify the
      L/C Issuer of the Administrative Agent’s receipt of each such notice and
      the L/C Issuer shall promptly notify the Administrative Agent and the
      Lenders of the issuance of a Letter of Credit.

     

    Section 2.4.Applicable
      Interest Rates.  (a) Base Rate
      Loans.  Each Base Rate Loan made or maintained by a Lender shall
      bear interest (computed on the basis of a year of 365 or 366 days, as the
      case may be, and the actual days elapsed) on the unpaid principal amount thereof
      from the date such Loan is advanced or created by conversion from a Eurodollar
      Loan until maturity (whether by acceleration or otherwise) at a rate per annum
      equal to the sum of the Applicable Margin plus the Base Rate from time to time
      in effect, payable in arrears on the last Business Day of each month and at
      maturity (whether by acceleration or otherwise).

     

    (b)Eurodollar
      Loans.  Each Eurodollar Loan made or maintained by a Lender shall
      bear interest during each Interest Period it is outstanding (computed on the
      basis of a year of 360 days and actual days elapsed) on the unpaid
      principal amount thereof from the date such Loan is advanced, continued or
      created by conversion from a Base Rate Loan until maturity (whether by
      acceleration or otherwise) at a rate per annum equal to the sum of the
      Applicable Margin plus the Adjusted LIBOR applicable for such Interest Period,
      payable in arrears on the last day of the Interest Period and at maturity
      (whether by acceleration or otherwise), and, if the applicable Interest Period
      is longer than three months, on each day occurring every three months after
      the
      commencement of such Interest Period.

     

    
      
        
        

      

      
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    (c)Default
      Rate.  While any Event of Default exists or after acceleration,
      the Borrower shall pay interest (after as well as before entry of judgment
      thereon to the extent permitted by law) on the principal amount of all Loans
      owing by it at a rate per annum equal to:

     

    (i)for
      any Base Rate Loan and any Swing Loan bearing interest at the Base Rate, the
      sum
      of 3.0% per annum plus the Applicable Margin plus the Base Rate from time to
      time in effect; and

     

    (ii)for
      any Eurodollar Loan and any Swing Loan bearing interest at the Administrative
      Agent’s Quoted Rate, the sum of 3.0% per annum plus the rate of interest in
      effect thereon at the time of such default until the end of the Interest Period
      applicable thereto and, thereafter, at a rate per annum equal to the sum of
      3.0%
      plus the Applicable Margin for Base Rate Loans plus the Base Rate from time
      to
      time in effect;

     

    provided,
      however, that in the absence of acceleration, any increase in interest
      rates pursuant to this Section shall be made at the election of the
      Administrative Agent, acting at the request or with the consent of the Required
      Lenders, with written notice to the Borrower.  While any Event of
      Default exists or after acceleration, accrued interest shall be paid on demand
      of the Administrative Agent at the request or with the consent of the Required
      Lenders.

     

    (d)Rate
      Determinations. The Administrative Agent shall determine each interest rate
      applicable to the Loans and the Reimbursement Obligations hereunder, and its
      determination thereof shall be conclusive and binding except in the case of
      manifest error.

     

    Section 2.5.Manner
      of Borrowing Loans and Designating Applicable Interest
      Rates.  (a) Notice to the Administrative
      Agent.  The Borrower shall give notice to the Administrative
      Agent by no later than 10:00 a.m. (Cincinnati time):  (i) at
      least 3 Business Days before the date on which the Borrower requests the Lenders
      to advance a Borrowing of Eurodollar Loans and (ii) on the date the
      Borrower requests the Lenders to advance a Borrowing of Base Rate
      Loans.  The Loans included in each Borrowing shall bear interest
      initially at the type of rate specified in such notice.  Thereafter,
      the Borrower may from time to time elect to change or continue the type of
      interest rate borne by each Borrowing or, subject to Section 2.6 hereof, a
      portion thereof, as follows:  (i) if such Borrowing is of
      Eurodollar Loans, on the last day of the Interest Period applicable thereto,
      the
      Borrower may continue part or all of such Borrowing as Eurodollar Loans or
      convert part or all of such Borrowing into Base Rate Loans or (ii) if such
      Borrowing is of Base Rate Loans, on any Business Day, the Borrower may convert
      all or part of such Borrowing into Eurodollar Loans for an Interest Period
      or
      Interest Periods specified by the Borrower.  The Borrower shall give
      all such notices requesting the advance, continuation or conversion of a
      Borrowing to the Administrative Agent by telephone or telecopy (which notice
      shall be irrevocable once given and, if by telephone, shall be promptly
      confirmed in writing), substantially in the form attached hereto as
      Exhibit B (Notice of Borrowing) or Exhibit C (Notice of
      Continuation/Conversion), as applicable, or in such other form acceptable to
      the
      Administrative Agent.  Notice of the continuation of a Borrowing of
      Eurodollar Loans for an additional Interest Period or of the conversion of
      part
      or all of a Borrowing of Base Rate Loans into Eurodollar Loans must be given
      by
      no later than 10:00 a.m. (Cincinnati time) at least 3 Business Days
      before the date of the requested continuation or conversion.  All
      notices concerning the advance, continuation or conversion of a Borrowing shall
      specify the date of the requested advance, continuation or conversion of a
      Borrowing (which shall be a Business Day), the amount of the requested Borrowing
      to be advanced, continued or converted, the type of Loans to comprise such
      new,
      continued or converted Borrowing and, if such Borrowing is to be comprised
      of
      Eurodollar Loans, the Interest Period applicable thereto.  The
      Borrower agrees that the Administrative Agent may rely on any such telephonic
      or
      telecopy notice given by any person the Administrative Agent in good faith
      believes is an Authorized Representative without the necessity of independent
      investigation (the Borrower hereby indemnifies the Administrative Agent from
      any
      liability or loss ensuing from such reliance) and, in the event any such notice
      by telephone conflicts with any written confirmation, such telephonic notice
      shall govern if the Administrative Agent has acted in reliance
      thereon.

     

    
      
        
        

      

      
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    (b)Notice
      to the Lenders.  The Administrative Agent shall give prompt
      telephonic or telecopy notice to each Lender of any notice from the Borrower
      received pursuant to Section 2.5(a) above and, if such notice requests the
      Lenders to make Eurodollar Loans, the Administrative Agent shall give notice
      to
      the Borrower and each Lender of the interest rate applicable thereto promptly
      after the Administrative Agent has made such determination.

     

    (c)Borrower’s
      Failure to Notify; Automatic Continuations and Conversions.  If
      the Borrower fails to give proper notice of the continuation or conversion
      of
      any outstanding Borrowing of Eurodollar Loans before the last day of its then
      current Interest Period within the period required by Section 2.5(a) or,
      whether or not such notice has been given, one or more of the conditions set
      forth in Section 3.1 for the continuation or conversion of a Borrowing of
      Eurodollar Loans would not be satisfied, and such Borrowing is not prepaid
      in
      accordance with Section 2.8(a), such Borrowing shall automatically be
      converted into a Borrowing of Base Rate Loans.  In the event the
      Borrower fails to give notice pursuant to Section 2.5(a) of a Borrowing
      equal to the amount of a Reimbursement Obligation and has not notified the
      Administrative Agent by 1:00 p.m. (Cincinnati time) on the day such
      Reimbursement Obligation becomes due that it intends to repay such Reimbursement
      Obligation through funds not borrowed under this Agreement, the Borrower shall
      be deemed to have requested a Borrowing of Base Rate Loans (or, at the option
      of
      the Administrative Agent, under the Swing Line) under the Revolving Credit
      on
      such day in the amount of the Reimbursement Obligation then due, which Borrowing
      shall be applied to pay the Reimbursement Obligation then due.

     

    (d)Disbursement
      of Loans.  Not later than 1:00 p.m. (Cincinnati time) on the
      date of any requested advance of a new Borrowing, subject to Section 3
      hereof, each Lender shall make available its Loan comprising part of such
      Borrowing in funds immediately available at the principal office of the
      Administrative Agent in Cincinnati, Ohio.  The Administrative Agent
      shall make the proceeds of each new Borrowing available to the Borrower at
      the
      Administrative Agent’s principal office in Cincinnati, Ohio.

     

    
      
        
        

      

      
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    (e)Administrative
      Agent Reliance on Lender Funding.  Unless the Administrative
      Agent shall have been notified by a Lender prior to (or, in the case of a
      Borrowing of Base Rate Loans, by 1:00 p.m. (Cincinnati time) on the date on
      which such Lender is scheduled to make payment to the Administrative Agent
      of
      the proceeds of a Loan (which notice shall be effective upon receipt) that
      such
      Lender does not intend to make such payment, the Administrative Agent may assume
      that such Lender has made such payment when due and the Administrative Agent,
      in
      reliance upon such assumption may (but shall not be required to) make available
      to the Borrower the proceeds of the Loan to be made by such Lender and, if
      any
      Lender has not in fact made such payment to the Administrative Agent, such
      Lender shall, on demand, pay to the Administrative Agent the amount made
      available to the Borrower attributable to such Lender together with interest
      thereon in respect of each day during the period commencing on the date such
      amount was made available to the Borrower and ending on (but excluding) the
      date
      such Lender pays such amount to the Administrative Agent at a rate per annum
      equal to:  (i) from the date the related advance was made by the
      Administrative Agent to the date 2 Business Days after payment by such
      Lender is due hereunder, the Federal Funds Rate for each such day and
      (ii) from the date 2 Business Days after the date such payment is due
      from such Lender to the date such payment is made by such Lender, the Base
      Rate
      in effect for each such day.  If such amount is not received from such
      Lender by the Administrative Agent immediately upon demand, the Borrower will,
      on demand, repay to the Administrative Agent the proceeds of the Loan
      attributable to such Lender with interest thereon at a rate per annum equal
      to
      the interest rate applicable to the relevant Loan, but without such payment
      being considered a payment or prepayment of a Loan under Section 8.1 hereof
      so that the Borrower will have no liability under such Section with respect
      to
      such payment.

     

    Section 2.6.Minimum
      Borrowing Amounts; Maximum Eurodollar Loans.  Each Borrowing of
      Base Rate Loans advanced under a Credit shall be in an amount not less than
      $500,000 or such greater amount that is an integral multiple of
      $100,000.  Each Borrowing of Eurodollar Loans advanced, continued or
      converted under a Credit shall be in an amount equal to $1,000,000 or such
      greater amount that is an integral multiple of $100,000.  Without the
      Administrative Agent’s consent, there shall not be more than five Borrowings of
      Eurodollar Loans outstanding at any one time.

     

    Section 2.7.Maturity
      of Loans.  (a) Scheduled Payments of Term
      Loans.  The Borrower shall make principal payments on the Term
      Loans in equal installments on the last day of each January, April, July and
      October in each year, commencing with the calendar quarter ending
      October 31, 2007, with the amount of each such principal installment equal
      to $1,225,000; it being further agreed that a final payment comprised of all
      principal and interest not sooner paid on the Term Loans, shall be due and
      payable on September14, 2013, the final maturity thereof.  Each
      principal payment on the Term Loans shall be applied to the Lenders holding
      the
      Term Loans pro rata based upon their Term Loan Percentages.

     

    (b)Revolving
      Loans.  Each Revolving Loan, both for principal and interest,
      shall mature and become due and payable by the Borrower on the Revolving Credit
      Termination Date.

     

    Section 2.8.Prepayments.  (a) Voluntary.  The
      Borrower may prepay without premium or penalty (except as set forth in
      Section 8.1 below) and in whole or in part any Borrowing of Eurodollar
      Loans at any time upon 3 Business Days prior notice by the Borrower to the
      Administrative Agent or, in the case of a Borrowing of Base Rate Loans, notice
      delivered by the Borrower to the Administrative Agent no later than
      10:00 a.m. (Cincinnati time) on the date of prepayment, such prepayment to
      be made by the payment of the principal amount to be prepaid and, in the case
      of
      any Term Loans, Eurodollar Loans or Swing Loans, accrued interest thereon to
      the
      date fixed for prepayment plus any amounts due the Lenders under
      Section 8.1; provided, however, the Borrower may not partially
      repay a Borrowing (i) if such Borrowing is of Base Rate Loans, in a
      principal amount less than $500,000, (ii) if such Borrowing is of
      Eurodollar Loans, in a principal amount less than $1,000,000, and (iii) in
      each case, unless it is in an amount such that the minimum amount required
      for a
      Borrowing pursuant to Section 2.6 remains outstanding.

     

    
      
        
        

      

      
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    (b)Mandatory.  (i) If
      the Borrower or any Subsidiary shall at any time or from time to time make
      or
      agree to make a Disposition or shall suffer an Event of Loss resulting in Net
      Cash Proceeds in excess of $1,000,000 individually or on a cumulative basis
      in
      any fiscal year of the Borrower, then (x) the Borrower shall promptly
      notify the Administrative Agent of such proposed Disposition or Event of Loss
      (including the amount of the estimated Net Cash Proceeds to be received by
      the
      Borrower or such Subsidiary in respect thereof) and (y) promptly upon
      receipt by the Borrower or the Subsidiary of the Net Cash Proceeds of such
      Disposition or such Event of Loss, the Borrower shall prepay the Obligations
      in
      an aggregate amount equal to 100% of the amount of all such Net Cash Proceeds
      in
      excess of $1,000,000; provided that in the case of each Disposition and
      Event of Loss, if the Borrower states in its notice of such event that the
      Borrower or the applicable Subsidiary intends to invest or reinvest, as
      applicable, within 90 days of the applicable Disposition or receipt of Net
      Cash Proceeds from an Event of Loss, the Net Cash Proceeds thereof in similar
      like-kind assets, then so long as no Default or Event of Default then exists,
      the Borrower shall not be required to make a mandatory prepayment under this
      Section in respect of such Net Cash Proceeds to the extent such Net Cash
      Proceeds are actually invested or reinvested as described in the Borrower’s
      notice with such 90-day period.  Promptly after the end of such 90-day
      period, the Borrower shall notify the Administrative Agent whether the Borrower
      or such Subsidiary has invested or reinvested such Net Cash Proceeds as
      described in the Borrower’s notice, and to the extent such Net Cash Proceeds
      have not been so invested or reinvested, the Borrower shall promptly prepay
      the
      Obligations in the amount of such Net Cash Proceeds in excess of $1,000,000
      not
      so invested or reinvested.  The amount of each such prepayment shall
      be applied first to the outstanding Term Loans until paid in full and then
      to
      the Revolving Loans until paid in full and then to the Swing
      Loans.  If the Administrative Agent or the Required Lenders so
      request, all proceeds of such Disposition or Event of Loss shall be deposited
      with the Administrative Agent and held by it in the Collateral
      Account.  So long as no Default or Event of Default exists, the
      Administrative Agent is authorized to disburse amounts representing such
      proceeds from the Collateral Account to or at the Borrower’s direction for
      application to or reimbursement for the costs of replacing, rebuilding or
      restoring such Property.

     

    (ii)If
      after the Closing Date the Borrower or any Subsidiary shall issue any new equity
      securities (other than equity securities issued in connection with the exercise
      of employee stock options, equity securities issued to the seller of an Acquired
      Business in connection with an Acquisition permitted by the terms hereof, if
      any) or incur or assume any Indebtedness other than that permitted by Sections
      6.11(a), (b) or (c) hereof, the Borrower shall promptly notify the
      Administrative Agent of the estimated Net Cash Proceeds of such issuance,
      incurrence or assumption to be received by or for the account of the Borrower
      or
      such Subsidiary in respect thereof.  Promptly upon receipt by the
      Borrower or such Subsidiary of Net Cash Proceeds of such issuance, incurrence
      or
      assumption the Borrower shall prepay the Obligations in the amount of such
      Net
      Cash Proceeds.  The amount of each such prepayment shall be applied
      first to the outstanding Term Loans until paid in full and then to the Revolving
      Loans until paid in full and then to the Swing Loans.  The Borrower
      acknowledges that its performance hereunder shall not limit the rights and
      remedies of the Lenders for any breach of
      Section 6.11 or any other terms of this
      Agreement.

     

    
      
        
        

      

      
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    (iii)On
      or before January 31 of each year, beginning January 31, 2009, the
      Borrower shall prepay the then-outstanding Loans by an amount equal to 75%
      of
      Excess Cash Flow of Borrower and its Subsidiaries for the most recently
      completed fiscal year of the Borrower.  The amount of each such
      prepayment shall be applied first to the outstanding Term Loans until paid
      in
      full and then to the Revolving Loans until paid in full and then to the Swing
      Loans.  Any voluntary prepayments of principal of the Term Loans made
      during any year shall reduce, by the amount of such voluntary prepayments,
      the
      amount required to be paid by the Borrower under this Section 2.8(b)(iii)
      during the year immediately subsequent to the year such voluntary prepayments
      were made; provided that, the amount required to be paid under this
      Section 2.8(b)(iii) shall not in any event be reduced to less than zero,
      and no such voluntary prepayments shall reduce payments required to be made
      under this Section 2.8(b)(iii) in any year following the year immediately
      subsequent to the year such voluntary payments were made.

     

    (iv)The
      Borrower shall, on each date the Revolving Credit Commitments are reduced
      pursuant to Section 2.10, prepay the Revolving Loans and Swing Loans and,
      if necessary, prefund the L/C Obligations by the amount, if any, necessary
      to reduce the sum of the aggregate principal amount of Revolving Loans, Swing
      Loans and L/C Obligations then outstanding to the amount to which the
      Revolving Credit Commitments have been so reduced.

     

    (v)Unless
      the Borrower otherwise directs, prepayments of Loans under this
      Section 2.8(b) shall be applied first to Borrowings of Base Rate Loans
      until payment in full thereof with any balance applied to Borrowings of
      Eurodollar Loans in the order in which their Interest Periods
      expire.  Each prepayment of Loans under this Section 2.8(b) shall
      be made by the payment of the principal amount to be prepaid and, in the case
      of
      any Term Loans, Swing Loans or Eurodollar Loans, accrued interest thereon to
      the
      date of prepayment together with any amounts due the Lenders under
      Section 8.1.  Each prefunding of L/C Obligations shall be
      made in accordance with Section 7.4.

     

    (vi)If
      at
      any time the sum of the unpaid principal balance of the Revolving Loans and
      the
      L/C Obligations then outstanding shall be in excess of the Borrowing Base
      as then determined and computed, the Borrower shall immediately and without
      notice or demand pay over the amount of the excess to the Administrative Agent
      for the account of the Lenders as and for a mandatory prepayment on such
      Obligations, with each such prepayment first to be applied to the Revolving
      Loans until payment in full thereof with any remaining balance to be held by
      the
      Administrative Agent in the Collateral Account as security for the Obligations
      owing with respect to the Letters of Credit.

     

    
      
        
        

      

      
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    (c)The
      Administrative Agent will promptly advise each Lender of any notice of
      prepayment it receives from the Borrower, and in the case of any partial
      prepayment, such prepayment shall be applied to the remaining amortization
      payments on the relevant Loans in the inverse order of maturity.

     

    Section 2.9.Place
      and Application of Payments.  All payments of principal of and
      interest on the Loans and the Reimbursement Obligations, and of all other
      Obligations payable by the Borrower under this Agreement and the other Loan
      Documents, shall be made by the Borrower to the Administrative Agent by no
      later
      than 12:00 Noon (Cincinnati time) on the due date thereof at the office of
      the Administrative Agent in Cincinnati, Ohio (or such other location as the
      Administrative Agent may designate to the Borrower) for the benefit of the
      Lender or Lenders entitled thereto.  Any payments received after such
      time shall be deemed to have been received by the Administrative Agent on the
      next Business Day.  All such payments shall be made in Dollars, in
      immediately available funds at the place of payment, in each case without
      set-off or counterclaim.  The Administrative Agent will promptly
      thereafter cause to be distributed like funds relating to the payment of
      principal or interest on Loans and on Reimbursement Obligations in which the
      Lenders have purchased Participating Interests ratably to the Lenders and like
      funds relating to the payment of any other amount payable to any Lender to
      such
      Lender, in each case to be applied in accordance with the terms of this
      Agreement.

     

    Anything
      contained herein to the contrary notwithstanding, (x) pursuant to the
      exercise of remedies under Sections 7.2 and 7.3 hereof or (y) after
      written instruction by the Required Lenders after the occurrence and during
      the
      continuation of an Event of Default, all payments and collections received
      in
      respect of the Obligations and all proceeds of the Collateral received, in
      each
      instance, by the Administrative Agent or any of the Lenders shall be remitted
      to
      the Administrative Agent and distributed as follows:

     

    (a)first,
      to the payment of any outstanding costs and expenses incurred by the
      Administrative Agent, and any security trustee therefor, in monitoring,
      verifying, protecting, preserving or enforcing the Liens on the Collateral,
      in
      protecting, preserving or enforcing rights under the Loan Documents, and in
      any
      event all costs and expenses of a character which the Borrower has agreed to
      pay
      the Administrative Agent under Section 10.13 hereof (such funds to be
      retained by the Administrative Agent for its own account unless it has
      previously been reimbursed for such costs and expenses by the Lenders, in which
      event such amounts shall be remitted to the Lenders to reimburse them for
      payments theretofore made to the Administrative Agent);

     

    (b)second,
      to the payment of principal and interest on the Swing Loans until paid in
      full;

     

    (c)third,
      to the payment of any outstanding interest and fees due under the Loan Documents
      to be allocated pro rata in accordance with the aggregate unpaid amounts owing
      to each holder thereof;

     

    (d)fourth,
      to the payment of principal on the Loans (other than Swing Loans), unpaid
      Reimbursement Obligations, together with amounts to be held by the
      Administrative Agent as collateral security for any outstanding
      L/C Obligations pursuant to Section 7.4 hereof (until the
      Administrative Agent is holding an amount of cash equal to the then outstanding
      amount of all such L/C Obligations), and Hedging Liability, the aggregate
      amount paid to, or held as collateral security for, the Lenders and, in the
      case
      of Hedging Liability, their Affiliates to be allocated pro rata in accordance
      with the aggregate unpaid amounts owing to each holder thereof; 

     

    
      
        
        

      

      
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    (e)fifth,
      to the payment of all other unpaid Obligations and all other indebtedness,
      obligations, and liabilities of the Borrower and its Subsidiaries secured by
      the
      Collateral Documents (including, without limitation, Funds Transfer and Deposit
      Account Liability) to be allocated pro rata in accordance with the aggregate
      unpaid amounts owing to each holder thereof; and

     

    (f)sixth,
      to the Borrower or whoever else may be lawfully entitled thereto.

     

    Section 2.10.Commitment
      Terminations.  Voluntary.  The Borrower shall
      have the right at any time and from time to time, upon 3 Business Days
      prior written notice to the Administrative Agent, to terminate the Revolving
      Credit Commitments in whole or in part, any partial termination to be
      (i) in an amount not less than $1,000,000 or any greater amount that is an
      integral multiple of $100,000 and (ii) allocated ratably among the Lenders
      in proportion to their respective Revolver Percentages, provided that
      the sum of all Revolving Credit Commitments may not be reduced to an amount
      less
      than the sum of the aggregate principal amount of Revolving Loans, Swing Loans
      and of L/C Obligations then outstanding.  Any termination of the
      Revolving Credit Commitments below the L/C Sublimit then in effect shall
      reduce the L/C Sublimit by a like amount.  Any termination of the
      Commitments below the Swing Line Sublimit then in effect shall reduce the Swing
      Line Sublimit by a like amount.  The Administrative Agent shall give
      prompt notice to each Lender of any such termination of the Revolving Credit
      Commitments.  Any termination of the Commitments pursuant to this
      Section 2.10 may not be reinstated without the written consent of the
      Administrative Agent.

     

    Section 2.11.Swing
      Loans.  (a) Generally.  Subject to the
      terms and conditions hereof, as part of the Revolving Credit, the Administrative
      Agent agrees to make loans in Dollars to the Borrower under the Swing Line
      (individually a “Swing Loan” and collectively the “Swing
      Loans”) which shall not in the aggregate at any time outstanding exceed the
      Swing Line Sublimit; provided, however, the sum of the aggregate
      principal amount of Revolving Loans, Swing Loans and
      L/C Obligations at any time outstanding shall not exceed the lesser of (i)
      the sum of all Revolving Credit Commitments in effect at such time and (ii)
      the
      Borrowing Base as then computed and determined.  The Swing Loans may
      be availed of by the Borrower from time to time and borrowings thereunder may
      be
      repaid and used again during the period ending on the Revolving Credit
      Termination Date; provided that each Swing Loan must be repaid on the
      last day of the Interest Period applicable thereto.  Each Swing Loan
      shall be in a minimum amount of $250,000 or such greater amount which is an
      integral multiple of $100,000.

     

    (b)Interest
      on Swing Loans.  Each Swing Loan shall bear interest until
      maturity (whether by acceleration or otherwise) at a rate per annum equal to,
      at
      the option of the Borrower, (i) the sum of the Base Rate plus the
      Applicable Margin for Base Rate Loans under the Revolving Credit as from time
      to
      time in effect (computed on the basis of a year of 365 or 366 days, as the
      case may be, for the actual number of days elapsed) or (ii) the
      Administrative Agent’s Quoted Rate (computed on the basis of a year of
      360 days for the actual number of days elapsed).  Interest on
      each Swing Loan shall be due and payable prior to such maturity on the last
      day
      of each Interest Period applicable thereto.

     

    
      
        
        

      

      
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    (c)Requests
      for Swing Loans.  The Borrower shall give the Administrative
      Agent prior notice (which may be written or oral), no later than 10:00 a.m.
      (Cincinnati time) on the date upon which the Borrower requests that any Swing
      Loan be made, of the amount and date of such Swing Loan, and the Interest Period
      requested therefor.  Within 30 minutes after receiving such
      notice, the Administrative Agent shall in its discretion quote an interest
      rate
      to the Borrower at which the Administrative Agent would be willing to make
      such
      Swing Loan available to the Borrower for the Interest Period so requested (the
      rate so quoted for a given Interest Period being herein referred to as
“Administrative Agent’s Quoted Rate”).  The Borrower
      acknowledges and agrees that the interest rate quote is given for immediate
      and
      irrevocable acceptance.  If the Borrower does not so immediately
      accept the Administrative Agent’s Quoted Rate for the full amount requested by
      the Borrower for such Swing Loan, the Administrative Agent’s Quoted Rate shall
      be deemed immediately withdrawn and such Swing Loan shall
      bear interest at the rate per annum determined by adding the Applicable Margin
      for Base Rate Loans under the Revolving Credit to the Base Rate as from time
      to
      time in effect.  Subject to the terms and conditions hereof, the
      proceeds of such Swing Loan shall be made available to the Borrower on the
      date
      so requested at the offices of the Administrative Agent in Cincinnati,
      Ohio.  Anything contained in the foregoing to the contrary
      notwithstanding (i) the obligation of the Administrative Agent to make
      Swing Loans shall be subject to all of the terms and conditions of this
      Agreement and (ii) the Administrative Agent shall not be obligated to make
      more than one Swing Loan during any one day.  

     

    (d)Refunding
      of Swing Loans.  In its sole and absolute discretion, the
      Administrative Agent may at any time, on behalf of the Borrower (which the
      Borrower hereby irrevocably authorizes the Administrative Agent to act on its
      behalf for such purpose) and with notice to the Borrower, request each Lender
      to
      make a Revolving Loan in the form of a Base Rate Loan in an amount equal to
      such
      Lender’s Revolver Percentage of the amount of the Swing Loans outstanding on the
      date such notice is given.  Unless an Event of Default described in
      Section 7.1(j) or 7.1(k) exists with respect to the Borrower, regardless of
      the existence of any other Event of Default, each Lender shall make the proceeds
      of its requested Revolving Loan available to the Administrative Agent, in
      immediately available funds, at the Administrative Agent’s principal office in
      Cincinnati, Ohio, before 12:00 Noon (Cincinnati time) on the Business Day
      following the day such notice is given.  The proceeds of such
      Borrowing of Revolving Loans shall be immediately applied to repay the
      outstanding Swing Loans.

     

    (e)Participations.  If
      any Lender refuses or otherwise fails to make a Revolving Loan when requested
      by
      the Administrative Agent pursuant to Section 2.11(d) above (because an
      Event of Default described in Section 7.1(j) or 7.1(k) exists with respect
      to the Borrower or otherwise), such Lender will, by the time and in the manner
      such Revolving Loan was to have been funded to the Administrative Agent,
      purchase from the Administrative Agent an undivided participating interest
      in
      the outstanding Swing Loans in an amount equal to its Revolver Percentage of
      the
      aggregate principal amount of Swing Loans that were to have been repaid with
      such Revolving Loans; provided that the foregoing purchases shall be
      deemed made hereunder without any further action by such Lender or the
      Administrative Agent.  Each Lender that so purchases a participation
      in a Swing Loan shall thereafter be entitled to receive its Revolver Percentage
      of each payment of principal received on the Swing Loan and of interest received
      thereon accruing from the date such Lender funded to the Administrative Agent
      its participation in such Loan.  The several obligations of the
      Lenders under this Section shall be absolute, irrevocable and unconditional
      under any and all circumstances whatsoever and shall not be subject to any
      set-off, counterclaim or defense to payment which any Lender may have or have
      had against the Borrower, any other Lender or any other Person
      whatever.  Without limiting the generality of the foregoing, such
      obligations shall not be affected by any Default or Event of Default or by
      any
      reduction or termination of the Commitments of any Lender, and each payment
      made
      by a Lender under this Section shall be made without any offset, abatement,
      withholding or reduction whatsoever.

     

    
      
        
        

      

      
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    Section 2.12.Evidence
      of Indebtedness.  (a) Each Lender shall maintain in
      accordance with its usual practice an account or accounts evidencing the
      indebtedness of the Borrower to such Lender resulting from each Loan made by
      such Lender from time to time, including the amounts of principal and interest
      payable and paid to such Lender from time to time hereunder.

     

    (b)The
      Administrative Agent shall also maintain accounts in which it will record
      (i) the amount of each Loan made hereunder, the type thereof and, with
      respect to Eurodollar Loans and Swing Loans, the Interest Period with respect
      thereto, (ii) the amount of any principal or interest due and payable or to
      become due and payable from the Borrower to each Lender hereunder and
      (iii) the amount of any sum received by the Administrative Agent hereunder
      from the Borrower and each Lender’s share thereof.

     

    (c)The
      entries maintained in the accounts maintained pursuant to paragraphs (a)
      and (b) above shall be prima facie evidence of the existence and
      amounts of the Obligations therein recorded; provided, however, that
      the failure of the Administrative Agent or any Lender to maintain such accounts
      or any error therein shall not in any manner affect the obligation of the
      Borrower to repay the Obligations in accordance with their terms.

     

    (d)Any
      Lender may request that its Loans be evidenced by a promissory note or notes
      in
      the forms of Exhibit D-1 (in the case of its Term Loan and referred to herein
      as
      a “Term Note”), D-2 (in the case of its Revolving Loans and referred to
      herein as a “Revolving Note”), or D-3 (in the case of its Swing Loans
      and referred to herein as a “Swing Note”), as applicable (the Term
      Notes, Revolving Notes and Swing Note being hereinafter referred to collectively
      as the “Notes” and individually as a “Note”).  In
      such event, the Borrower shall prepare, execute and deliver to such Lender
      a
      Note payable to the order of such Lender in the amount of the Term Loan,
      Revolving Credit Commitment, or Swing Line Sublimit, as
      applicable.  Thereafter, the Loans evidenced by such Note or Notes and
      interest thereon shall at all times (including after any assignment pursuant
      to
      Section 10.10) be represented by one or more Notes payable to the order of
      the payee named therein or any assignee pursuant to Section 13.12, except
      to the extent that any such Lender or assignee subsequently returns any such
      Note for cancellation and requests that such Loans once again be evidenced
      as
      described in subsections (a) and (b) above.

     

    
      
        
        

      

      
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    Section 2.13.Fees.  (a) Revolving
      Credit Commitment Fee.  The Borrower shall pay to the
      Administrative Agent for the ratable account of the Lenders according to their
      Revolver Percentages a commitment fee at the rate per annum equal to the
      Applicable Margin (computed on the basis of a year of 360 days and the
      actual number of days elapsed) on the average daily Unused Revolving Credit
      Commitments.  Such commitment fee shall be payable quarterly in
      arrears on the last day of each March, June, September, and December in each
      year (commencing on the first such date occurring after the date hereof) and
      on
      the Revolving Credit Termination Date, unless the Revolving Credit Commitments
      are terminated in whole on an earlier date, in which event the commitment fee
      for the period to the date of such termination in whole shall be paid on the
      date of such termination.

     

    (b)Letter
      of Credit Fees.  On the date of issuance or extension, or
      increase in the amount, of any Letter of Credit pursuant to Section 2.3
      hereof, the Borrower shall pay to the L/C Issuer for its own account a
      fronting fee equal to .125% of the face amount of (or of the increase in the
      face amount of) such Letter of Credit.  Quarterly in arrears, on the
      last day of each March, June, September, and December, commencing on the first
      such date occurring after the date hereof, the Borrower shall pay to the
      Administrative Agent, for the ratable benefit of the Lenders according to their
      Revolver Percentages, a letter of credit fee at a rate per annum equal to the
      Applicable Margin (computed on the basis of a year of 360 days and the
      actual number of days elapsed) in effect during each day of such quarter applied
      to the daily average face amount of Letters of Credit outstanding during such
      quarter; provided that, while any Event of Default exists or after
      acceleration, such rate shall increase by 3% over the rate otherwise payable
      and
      such fee shall be paid on demand of the Administrative Agent at the request
      or
      with the consent of the Required Lenders; provided,however,
that in the absence of acceleration, any rate increase
      pursuant to the
      foregoing proviso shall be made at the direction of the Administrative Agent,
      acting at the request or with the consent of the Required Lenders.  In
      addition, the Borrower shall pay to the L/C Issuer for its own account the
      L/C Issuer’s standard drawing, negotiation, amendment, transfer and other
      administrative fees for each Letter of Credit.  Such standard fees
      referred to in the preceding sentence may be established by the L/C Issuer
      from time to time. 

     

    (c)Administrative
      Agent Fees.  The Administrative Agent shall receive, for its own
      use and benefit, the fees agreed to between the Administrative Agent and
      Borrower in that certain fee letter dated August 13, 2007, or as otherwise
      agreed to in writing between the Borrower and the Administrative
      Agent.

     

    (d)Audit
      Fees.  The Borrower shall pay to the Administrative Agent for its
      own use and benefit reasonable charges for audits and field examinations of
      the
      Collateral performed by the Administrative Agent or its agents or
      representatives in such amounts as the Administrative Agent may from time to
      time request (the Administrative Agent acknowledging and agreeing that such
      charges shall be computed in the same manner as it at the time customarily
      uses
      for the assessment of charges for similar collateral audits and field
      examinations); provided, however, that in the absence of any Default
      and Event of Default, the Administrative Agent may not conduct more than two
      such audits and field examinations per calendar year and the Borrower shall
      not
      be required to pay the Administrative Agent for more than two such audits and
      field examinations per calendar year.

     

    
      
        
        

      

      
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    Section 2.14.Account
      Debit.  The Borrower hereby irrevocably authorizes the
      Administrative Agent to charge any of the Borrower’s deposit accounts maintained
      with the Administrative Agent for the amounts from time to time necessary to
      pay
      any then due Obligations; provided that the Borrower
      acknowledges and agrees that the Administrative Agent shall not be under an
      obligation to do so and the Administrative Agent shall not incur any liability
      to the Borrower or any other Person for the Administrative Agent’s failure to do
      so.

     

    
      	
               

            	
              Section 3.Conditions
                Precedent.

            

    

     

    The
      obligation of each Lender to advance, continue or convert any Loan (other than
      the continuation of, or conversion into, a Base Rate Loan) or of the
      L/C Issuer to issue, extend the expiration date (including by not giving
      notice of non-renewal) of or increase the amount of any Letter of Credit under
      this Agreement, shall be subject to the following conditions
      precedent:

     

    Section 3.1.All
      Credit Events.  At the time of each Credit Event
      hereunder:

     

    (a)each
      of the representations and warranties set forth herein and in the other Loan
      Documents shall be and remain true and correct in all material respects as
      of
      said time, except to the extent the same expressly relate to an earlier
      date;

     

    (b)the
      Borrower and each Subsidiary shall be in compliance with all of the terms and
      conditions hereof and of the other Loan Documents, and no Default or Event
      of
      Default shall have occurred and be continuing or would occur as a result of
      such
      Credit Event;

     

    (c)in
      the
      case of any request for an extension of credit under the Revolving Credit,
      after
      giving effect to such extension of credit the aggregate principal amount of
      all
      Revolving Loans, Swing Loans and L/C Obligations outstanding under this
      Agreement shall not exceed the lesser of (i) the sum of all Revolving
      Credit Commitments and (ii) the Borrowing Base as then determined and
      computed;

     

    (d)in
      the
      case of a Borrowing the Administrative Agent shall have received the notice
      required by Section 2.5 hereof, in the case of the issuance of any Letter
      of Credit the L/C Issuer shall have received a duly completed Application
      together with any fees called for by Section 2.13 hereof, and, in the case
      of an extension or increase in the amount of a Letter of Credit, a written
      request therefor in a form reasonably acceptable to the L/C Issuer together
      with fees called for by Section 2.13 hereof; and

     

    (e)such
      Credit Event shall not violate any order, judgment or decree of any court or
      other authority or any provision of law or regulation applicable to the
      Administrative Agent or any Lender (including, without limitation,
      Regulation U of the Board of Governors of the Federal Reserve System) as
      then in effect; provided that, any such order, judgment, decree, law or
      regulation shall not entitle any Lender that is not affected thereby to not
      honor its obligation hereunder to advance, continue or convert any Loan or,
      in
      the case of the L/C Issuer, to extend the expiration date of or increase
      the amount of any Letter of Credit hereunder.

     

    
      
        
        

      

      
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    Each
      request for a Borrowing hereunder and each request for the issuance of, increase
      in the amount of, or extension of the expiration date of, a Letter of Credit
      shall be deemed to be a representation and warranty by the Borrower on the
      date
      of such Credit Event as to the facts specified in subsections (a) through
      (d), both inclusive, of this Section; provided, however, that the
      Lenders (including, for purposes hereof, the Administrative Agent in connection
      with advances made by it on behalf of the Lenders under Section 2.5 hereof)
      may continue to make advances under the Revolving Credit, in their sole
      discretion, notwithstanding the failure of the Borrower to satisfy one or more
      of the conditions set forth above and any such advances so made shall not be
      deemed a waiver of any Default or Event of Default or other condition set forth
      above that may then exist (each Lender hereby acknowledging and agreeing that
      the Administrative Agent may, in its sole discretion, without conferring with
      the Lenders, but on their behalf, elect to make additional advances hereunder
      notwithstanding the failure of the Borrower to satisfy one or more of the
      conditions set forth in Section 3.1 until the Administrative Agent is
      provided a written notice from the Required Lenders advising the Administrative
      Agent of such Lenders’ decision not to extend further credit as a result of the
      Borrower’s failure to satisfy the conditions set forth above, provided that the
      Administrative Agent shall not knowingly make an advance hereunder if, after
      giving effect thereto, the sum of the aggregate principal amount of Revolving
      Loans, Swing Loans and L/C Obligations then outstanding would exceed the
      lesser of (i) the sum of all Revolving Credit Commitments and
      (ii) Borrowing Base as then computed and determined.

     

    Section
      3.2.Initial Credit Event.  Before or concurrently with
      the initial Credit Event:

     

    (a)the
      Administrative Agent shall have received the Mortgages duly executed by the
      Borrower and its Subsidiaries, as appropriate, the Leasehold Mortgages duly
      executed by the Borrower and its Subsidiaries, as appropriate, and the Security
      Agreement duly executed by the Borrower, together with (i) original stock
      certificates or other similar instruments or securities representing all of
      the
      issued and outstanding equity interests in each Subsidiary as of the Closing
      Date, (ii) stock powers for the Collateral consisting of the stock or other
      equity interests in each Subsidiary executed in blank and undated,
      (iii) UCC financing statements to be filed against the Borrower and its
      Subsidiaries, as debtors, in favor of the Administrative Agent, as secured
      party, (iv) patent, trademark, and copyright collateral agreements, to the
      extent requested by the Administrative Agent, and (v) deposit account,
      securities account and commodities account control agreements to the extent
      requested by the Administrative Agent;

     

    (b)the
      Administrative Agent shall have received the Guaranties, duly executed by each
      of the Subsidiaries;

     

    (c)the
      Administrative Agent shall have received evidence of insurance required to
      be
      maintained under the Loan Documents, naming the Administrative Agent as
      additional insured and mortgagee and lender loss payee;

     

    (d)the
      Administrative Agent shall have received copies of the Borrower’s and each
      Subsidiary’s certificate of formation, certificate of organization, operating
      agreement, articles of incorporation and bylaws, as applicable (or comparable
      organizational documents) and any amendments thereto, certified in each instance
      by its Secretary, Assistant Secretary or Chief Financial Officer and, with
      respect to organizational documents filed with a Governmental Authority, by
      the
      applicable Governmental Authority;

     

    
      
        
        

      

      
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    (e)the
      Administrative Agent shall have received (i) copies of resolutions of the
      Borrower’s Board of Directors (or similar governing body) authorizing the
      execution, delivery and performance of this Agreement and the other Loan
      Documents to which it is a party and the consummation of the transactions
      contemplated hereby and thereby, together with specimen signatures of the
      persons authorized to execute such documents on the Borrower’s behalf, all
      certified in each instance by its Secretary, Assistant Secretary or Chief
      Financial Officer and (ii) copies of resolutions of each Subsidiary’s Board
      of Directors (or similar governing body) authorizing the execution, delivery
      and
      performance of the Guaranty and the other Loan Documents to which it is a party
      and the consummation of the transactions contemplated hereby and thereby,
      together with specimen signatures of the persons authorized to execute such
      documents on each Subsidiary’s behalf, all certified in each instance by its
      Secretary, Assistant Secretary or Chief Financial Officer;

     

    (f)the
      Administrative Agent shall have received copies of the certificates of good
      standing, or nearest equivalent in the relevant jurisdiction, for the Borrower
      and each Subsidiary (dated no earlier than 30 days prior to the date hereof)
      from the office of the secretary of state or other appropriate governmental
      department or agency of the state of its formation, incorporation or
      organization, as applicable, and of each state in which it is qualified to
      do
      business as a foreign corporation or organization;

     

    (g)the
      Administrative Agent shall have received a list of the Borrower’s Authorized
      Representatives;

     

    (h)the
      Administrative Agent shall have received for itself and for the Lenders the
      initial fees called for by Section 2.13 hereof;

     

    (i)the
      Administrative Agent shall have received mortgagee’s title insurance policies
      (or binding commitments therefore) in form and substance acceptable to the
      Administrative Agent in an aggregate amount equal to
      $7,990,940 insuring the Liens of the Mortgages to be valid
      first priority Liens subject to no defects or objections that are acceptable
      to
      the Administrative Agent, together with such endorsements as the Administrative
      Agent may require;

     

    (j)the
      Administrative Agent shall have received a survey in form and substance
      acceptable to the Administrative Agent prepared by a licensed surveyor on each
      parcel of real property subject to the Lien of the Mortgages (other than the
      Mortgage for the Indiana Street Property), which survey shall also state whether
      or not any portion of such property is in a federally designated flood hazard
      area;

     

    
      
        
        

      

      
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    (k)the
      Administrative Agent shall have received reports of independent firms of
      environmental engineers acceptable to the Administrative Agent concerning the
      environmental hazards and matters with respect to the parcels of real property
      subject to the Lien of the Mortgages, together with reliance letters thereon
      acceptable to the Administrative Agent;

     

    (l)the
      Administrative Agent shall have received a flood determination report for each
      parcel of real property subject to the Lien of the Mortgages prepared for the
      Agent by a flood determination company selected by the Administrative Agent
      stating whether or not any portion of such property is in a federally designated
      flood hazard area;

     

    (m)The
      Administrative Agent shall have received the following (i) with respect to
      each
      parcel of real property subject to the Lien of the Leasehold Mortgages, each
      form and substance acceptable to the Administrative
      Agent:  (A) evidence that the term of the lease for such property
      has been extended (or that the Borrower or Subsidiary leasing such property
      has
      the option, without the consent of the lessor of such real property, to extend
      such lease) until at least September 14, 2013; provided that, the lease
      for that property commonly known as 1515 Central Parkway, Cincinnati, Ohio
      need
      not extend past August, 2011; (B) a landlord waiver allowing the
      Administrative Agent access to the Collateral on such property during the
      existence and continuance of an Event of Default; (C) a one owner lien
      search for such property; (D) a consent of the lessor to the Leasehold
      Mortgage for such property; (E) a Landlord’s Agreement; and (F) a
      mortgagee’s waiver executed by the current mortgagor (if any) of such property
      and (ii) with respect to each parcel of real property leased by the Borrower
      and
      its Subsidiaries but not subject to the Lien of the Leasehold Mortgages: a
      landlord waiver allowing the Administrative Agent access to the Collateral
      on
      such property during the existence and continuance of an Event of
      Default;

     

    (n)any
      changes to the Purchase Agreement from the executed copy thereof dated
      June 28, 2007 delivered to the Administrative Agent by the Borrower, or
      waivers of any terms of the Purchase Agreement, that, in any instance, are
      materially adverse to any Lender, and all documents to be executed and delivered
      in connection with the Purchase Agreement, shall be acceptable to the
      Administrative Agent in form and substance; provided that, in no way
      limiting the discretion of the Administrative Agent, (i) the Total
      Consideration paid by the Borrower and its Subsidiaries under the terms of
      the
      Purchase Agreement shall not exceed $77,500,000 plus the cost of
      working capital of the Target acquired by the Borrower and (ii) the
      representations and warranties of the Borrower, the Purchaser and, to the
      knowledge of the Borrower, the Sellers under the Purchase Agreement shall be
      true and correct as of the Closing Date;

     

    (o)the
      HHD Purchase shall have been approved by each Seller’s Board of Directors and
      (if necessary) shareholders and shall close prior to or concurrently with the
      initial Credit Event on the terms set forth in the Purchase Agreement and
      without the waiver by the Borrower or the Purchaser of any
      material conditions to closing set forth therein;

     

    
      
        
        

      

      
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    (p)on
      the
      Closing Date, both before and after giving effect to the HHD Purchase, no
      injunction, temporary restraining order or other legal action that would
      prohibit or seek to unwind the HHD Purchase or any component thereof, or would
      prohibit the initial Credit Event, or other litigation which could reasonably
      be
      expected to have a Material Adverse Effect, shall be pending or, to the
      knowledge of the Borrower, threatened;

     

    (q)the
      Borrower and the Purchaser shall have received any regulatory approval necessary
      for the consummation of the HHD Purchase in accordance with all applicable
      laws,
      and all applicable waiting periods under the Hart-Scott-Rodino Antitrust
      Improvements Act of 1976, as amended, and all applicable rules and regulations
      thereunder shall have expired or been terminated;

     

    (r)the
      Administrative Agent shall have received such evaluations and certifications
      as
      it may reasonably require (including a Borrowing Base Certificate and compliance
      certificate in the forms attached hereto as Exhibits G and E containing
      calculations of the Borrowing Base and compliance calculations of the financial
      covenants set forth in Section 6.20(f) hereof as of the date of this Agreement
      and Sections 6.20(a) and 6.20(d) hereof based on the consolidated financial
      position of the Borrower, its Subsidiaries and the Target as of
      July 31, 2007 but, in all instances, after (i) giving effect to the
      initial Credit Event and (ii) the HHD Purchase) in order to satisfy itself
      as to
      the value of the Collateral, the financial condition of the Borrower and its
      Subsidiaries, and the lack of material contingent liabilities of the Borrower
      and its Subsidiaries, including, among other things, a third-party due diligence
      report, an industry review, and a  report of customer and supplier
      confirmations, each performed by firms acceptable to the Administrative Agent,
      and projected financial statements for the Borrower and its Subsidiaries after
      giving effect to the HHD Purchase satisfactory to the Administrative Agent
      in
      form and substance;

     

    (s)the
      Administrative Agent shall have received financing statement and, as
      appropriate, tax and judgment lien search results against the Property of the
      Borrower, each Subsidiary, and the Sellers evidencing the absence of Liens
      on
      its Property except for Permitted Liens and Liens to be removed pursuant to
      Section 3.2(t) hereof;

     

    (t)the
      Administrative Agent shall have received pay-off and lien release letters from
      secured creditors of the Borrower, each Subsidiary, and the Sellers setting
      forth, among other things, with respect to the Borrower and each Subsidiary,
      the
      total amount of indebtedness outstanding and owing to them (or outstanding
      letters of credit issued for the account of the Borrower any Subsidiary) and,
      with respect to the Borrower, each Subsidiary and the Sellers, containing an
      undertaking to cause to be delivered to the Administrative Agent UCC termination
      statements, mortgage releases and any other lien release instruments necessary
      to release Liens on the assets of the Borrower, the Subsidiaries and the Target,
      which pay-off and lien release letters shall be in form and substance acceptable
      to the Administrative Agent;

     

    
      
        
        

      

      
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    (u)the
      Borrower’s accounts payable shall be acceptable to the Administrative Agent, in
      its sole but reasonable discretion, and contain no rights or offset or other
      unusual arrangements;

     

    (v)the
      Administrative Agent shall have received the favorable written opinions of
      counsel to the Borrower and its Subsidiaries, in form and substance satisfactory
      to the Administrative Agent; and

     

    (w)the
      Administrative Agent shall have received such other agreements, instruments,
      documents, certificates, and opinions as the Administrative Agent may reasonably
      request.

     

    
      	
               

            	
              Section 4.The
                Collateral and Guaranties.

            

    

     

    Section 4.1.Collateral.  The
      Obligations, Hedging Liability, and Funds Transfer and Deposit Account Liability
      shall be secured by (a) valid, perfected, and enforceable Liens on all
      right, title, and interest of the Borrower and each Subsidiary in all capital
      stock and other equity interests held by such Person in each of its
      Subsidiaries, whether now owned or hereafter formed or acquired, and all
      proceeds thereof, and (b) valid, perfected, and enforceable Liens on all
      right, title, and interest of the Borrower and each Subsidiary in all personal
      property, fixtures, and real estate, whether now owned or hereafter acquired
      or
      arising, and all proceeds thereof; provided, however,
that:  (i) the Lien of the Administrative Agent on Property
      subject to a Capital Lease or conditional sale agreement or subject to a
      purchase money lien, in each instance to the extent permitted hereby, shall
      be
      subject to the rights of the lessor or lender thereunder, (ii) until a
      Default or Event of Default has occurred and is continuing and thereafter until
      otherwise required by the Administrative Agent or the Required Lenders, Liens
      on
      local petty cash deposit accounts maintained by the Borrower and its
      Subsidiaries in proximity to their operations need not be perfected
provided the total amount on deposit at any one time not so perfected
      shall not exceed $50,000 in the aggregate and Liens on payroll accounts
      maintained by the Borrower and its Subsidiaries need not be perfected provided
      the total amount on deposit at any time does not exceed the current amount
      of
      their payroll obligation, and (iii) until a Default or Event of Default has
      occurred and is continuing and thereafter until otherwise required by the
      Administrative Agent or the Required Lenders, Liens on vehicles which are
      subject to a certificate of title law need not be perfected provided
      that the total value of such property at any one time not so perfected shall
      not
      exceed $2,000,000 in the aggregate.  

     

    Section 4.2.Liens
      on Real Property.  In the event that the Borrower or any
      Subsidiary owns or hereafter acquires any real property, the Borrower shall,
      or
      shall cause such Subsidiary to, execute and deliver to the Administrative Agent
      (or a security trustee therefor) a mortgage or deed of trust acceptable in
      form
      and substance to the Administrative Agent for the purpose of granting to the
      Administrative Agent a Lien on such real property to secure the Obligations,
      Hedging Liability, and Funds Transfer and Deposit Account Liability, shall
      pay
      all taxes, costs, and expenses incurred by the Administrative Agent in recording
      such mortgage or deed of trust, and shall supply to the Administrative Agent
      at
      the Borrower’s cost and expense a survey, environmental report, hazard insurance
      policy, appraisal report, and a mortgagee’s policy of title insurance from a
      title insurer acceptable to the Administrative Agent insuring the validity
      of
      such mortgage or deed of trust and its status as a first Lien (subject to
      Permitted Liens) on the real property encumbered thereby and such other
      instrument, documents, certificates, and opinions reasonably required by the
      Administrative Agent in connection therewith.  In the event that the
      Borrower or any Subsidiary presently leases or hereafter leases real property,
      the Borrower shall, or shall cause such Subsidiary, to the extent requested
      by
      the Administrative Agent:  (i) to execute and deliver to the
      Administrative Agent (or a security trustee therefor) a leasehold mortgage
      or
      leasehold deed of trust acceptable in form and substance to the Administrative
      Agent for the purpose of granting to the Administrative Agent a Lien on such
      real property to secure the Obligations, Hedging Liability, and Funds Transfer
      and Deposit Account Liability, (ii) to pay all taxes, costs, and expenses
      incurred by the Administrative Agent in recording such leasehold mortgage or
      leasehold deed of trust, (iii) to deliver to the Administrative Agent such
      lessor and mortgagor consent, waivers, and other agreements as required by
      the
      Administrative Agent to ensure its access to the Collateral and its rights
      under
      such leasehold mortgage or leasehold deed of trust for such property,
      (iv) and to deliver to the Administrative Agent such other instrument,
      documents, certificates, and opinions reasonably required by the Administrative
      Agent in connection therewith.

     

    
      
        
        

      

      
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    Section 4.3.Guaranties.  The
      payment and performance of the Obligations, Hedging Liability, and Funds
      Transfer and Deposit Account Liability shall at all times be jointly and
      severally guaranteed by each direct and indirect Subsidiary of the Borrower
      pursuant to one or more guaranty agreements in form and substance acceptable
      to
      the Administrative Agent, as the same may be amended, modified or supplemented
      from time to time (individually a “Guaranty” and collectively the
“Guaranties”).

     

    Section 4.4.Further
      Assurances.  The Borrower agrees that it shall, and shall cause
      each Subsidiary to, from time to time at the request of the Administrative
      Agent
      or the Required Lenders, execute and deliver such documents and do such acts
      and
      things as the Administrative Agent or the Required Lenders may reasonably
      request in order to provide for or perfect or protect such Liens on the
      Collateral.  In the event the Borrower or any Subsidiary forms or
      acquires any other Subsidiary after the date hereof, the Borrower shall promptly
      upon such formation or acquisition cause such newly formed or acquired
      Subsidiary to execute a Guaranty and such Collateral Documents as the
      Administrative Agent may then require, and the Borrower shall also deliver
      to
      the Administrative Agent, or cause such Subsidiary to deliver to the
      Administrative Agent, at the Borrower’s cost and expense, such other
      instruments, documents, certificates, and opinions reasonably required by the
      Administrative Agent in connection therewith.

     

    
      	
               

            	
              Section 5.Representations
                and Warranties.

            

    

     

    The
      Borrower represents and warrants to each Lender and the Administrative Agent,
      and agrees, that:

     

    
      
        
        

      

      
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    Section 5.1.Organization
      and Qualification.  The Borrower and each of its Subsidiaries
      (i) is duly organized, validly existing and in good standing under the laws
      of the jurisdiction of its organization, (ii) has the power and authority
      to own its property and to transact the business in which it is engaged and
      proposes to engage and (iii) is duly qualified and in good standing in each
      jurisdiction where the ownership, leasing or operation of property or the
      conduct of its business requires such qualification, except where the failure
      to
      be so qualified and in good standing could not be reasonably expected to have,
      either individually or in the aggregate, a Material Adverse Effect.

     

    Section 5.2.Authority
      and Enforceability.  The Borrower has full right and authority to
      enter into this Agreement and the other Loan Documents executed by it, to make
      the borrowings herein provided for, to issue its Notes, to grant to the
      Administrative Agent the Liens described in the Collateral Documents executed
      by
      the Borrower, and to perform all of its obligations hereunder and under the
      other Loan Documents executed by it.  Each Subsidiary, if any, has
      full right and authority to enter into the Loan Documents executed by it, to
      guarantee the Obligations, Hedging Liability, and Funds Transfer and Deposit
      Account Liability, to grant to the Administrative Agent the Liens described
      in
      the Collateral Documents executed by such Person, and to perform all of its
      obligations under the Loan Documents executed by it.  The Loan
      Documents delivered by the Borrower and by each Subsidiary, if any, have been
      duly authorized, executed, and delivered by such Person and constitute valid
      and
      binding obligations of such Person enforceable against it in accordance with
      their terms, except as enforceability may be limited by bankruptcy, insolvency,
      fraudulent conveyance or similar laws affecting creditors’ rights generally and
      general principles of equity (regardless of whether the application of such
      principles is considered in a proceeding in equity or at law); and this
      Agreement and the other Loan Documents do not, nor does the performance or
      observance by the Borrower or any Subsidiary, if any, of any of the matters
      and
      things herein or therein provided for, (a) contravene or constitute a
      default under any provision of law or any judgment, injunction, order or decree
      binding upon the Borrower or any Subsidiary, if any, or any provision of the
      organizational documents (e.g., charter, articles of incorporation,
      by-laws, articles of association, operating agreement, partnership agreement
      or
      other similar document) of the Borrower or any Subsidiary, (b) contravene
      or constitute a default under any covenant, indenture or agreement of or
      affecting the Borrower or any Subsidiary or any of its Property, in each case
      where such contravention or default, individually or in the aggregate, could
      reasonably be expected to have a Material Adverse Effect or (c) result in
      the creation or imposition of any Lien on any Property of the Borrower or any
      Subsidiary other than the Liens granted in favor of the Administrative Agent
      pursuant to the Collateral Documents.

     

    Section 5.3.Financial
      Reports.  The audited consolidated financial statements of
      Borrower and its Subsidiaries as at October 31, 2006, and the
      unaudited interim consolidated financial statements of Borrower and its
      Subsidiaries as at July 31, 2007, for the nine months then
      ended, heretofore furnished to the Administrative Agent, fairly and adequately
      present the consolidated financial condition of Borrower and its Subsidiaries
      as
      at said dates and the consolidated results of their operations and cash flows
      for the periods then ended in conformity with GAAP applied on a consistent
      basis.  Neither the Borrower nor any Subsidiary has
      contingent liabilities or judgments, orders or injunctions against it that
      are
      material to it other than as indicated on such financial statements or, with
      respect to future periods, on the financial statements furnished pursuant to
      Section 6.1 hereof.

     

    Section 5.4.No
      Material Adverse Change. Since October 31, 2006,
      there has been no change in the financial condition or operations of the
      Borrower and the Subsidiaries taken as a whole, except those occurring in the
      ordinary course of business, none of which individually or in the aggregate
      could reasonably be expected to have a Material Adverse Effect.

     

    
      
        
        

      

      
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    Section 5.5.Litigation
      and Other Controversies.  There is no litigation, arbitration or
      governmental proceeding pending or, to the knowledge of the Borrower and its
      Subsidiaries, threatened against the Borrower or any of its Subsidiaries that
      could reasonably be expected to have a Material Adverse Effect.

     

    Section 5.6.True
      and Complete Disclosure.  All information furnished by or on
      behalf of the Borrower or any of its Subsidiaries in writing to the
      Administrative Agent or any Lender for purposes of or in connection with this
      Agreement, or any transaction contemplated herein, is true and accurate in
      all
      material respects and not incomplete by omitting to state any fact necessary
      to
      make such information (taken as a whole) not misleading in light of the
      circumstances under which such information was provided; provided that,
      with respect to projected financial information furnished by or on behalf of
      the
      Borrower or any of its Subsidiaries, the Borrower only represents and warrants
      that such information is prepared in good faith based upon assumptions believed
      to be reasonable at the time.

     

    Section 5.7.Use
      of Proceeds; Margin Stock.  All proceeds of the Term Loans shall
      be used by the Borrower to pay a portion of the purchase price for the HHD
      Purchase and for expenses incurred in connection with such acquisition; all
      proceeds of the Revolving Loans and Swing Loans shall be used by the Borrower
      for working capital purposes, to refinance existing Indebtedness, and for other
      general corporate purposes (excluding Acquisitions other than the HHD Purchase
      and Permitted Acquisitions) of the Borrower and its Subsidiaries.  No
      part of the proceeds of any Loan or other extension of credit hereunder will
      be
      used by the Borrower or any Subsidiary thereof to purchase or carry any margin
      stock (within the meaning of Regulation U of the Board of Governors of the
      Federal Reserve System) or to extend credit to others for the purpose of
      purchasing or carrying any margin stock.  Neither the making of any
      Loan or other extension of credit hereunder nor the use of the proceeds thereof
      will violate or be inconsistent with the provisions of Regulations T, U or
      X of the Board of Governors of the Federal Reserve System and any successor
      to
      all or any portion of such regulations.  Margin stock (as defined
      above) constitutes less than 25% of the value of those assets of the Borrower
      and its Subsidiaries that are subject to any limitation on sale, pledge or
      other
      restriction hereunder.

     

    Section 5.8.Taxes.  The
      Borrower and each of its Subsidiaries has timely filed or caused to be timely
      filed all tax returns required to be filed by the Borrower and/or any of its
      Subsidiaries, except where failure to so file could not be reasonably expected
      to have, either individually or in the aggregate, a Material Adverse
      Effect.  The Borrower and each of its Subsidiaries has paid all taxes,
      assessments and other governmental charges payable by them other than taxes,
      assessments and other governmental charges which are not delinquent, except
      those that are being contested in good faith and by proper legal proceedings
      and
      as to which appropriate reserves have been provided for in accordance with
      GAAP
      and no Lien resulting therefrom attaches to any of its Property. 

     

    Section 5.9.ERISA.  The
      Borrower and each other member of its Controlled Group has fulfilled its
      obligations under the minimum funding standards of, and is in compliance in
      all
      material respects with, ERISA and the Code to the extent applicable to it and,
      other than a liability for premiums under Section 4007 of ERISA, has not
      incurred any liability to the PBGC or a Plan under Title IV of
      ERISA.  The Borrower and its Subsidiaries have no contingent
      liabilities with respect to any post-retirement benefits under a welfare plan,
      as defined in Section 3(1) of ERISA, other than liability for continuation
      coverage described in article 6 of Title 1 of ERISA.

     

    
      
        
        

      

      
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    Section 5.10.Subsidiaries.  Schedule 5.10
      correctly sets forth, as of the Closing Date, each Subsidiary of the Borrower,
      its respective jurisdiction of organization and the percentage ownership (direct
      and indirect) of the Borrower in each class of capital stock or other equity
      interests of each of its Subsidiaries and also identifies the direct owner
      thereof.

     

    Section 5.11.Compliance
      with Laws.  The Borrower and each of its Subsidiaries is in
      compliance with all applicable statutes, regulations and orders of, and all
      applicable restrictions imposed by, all Governmental Authority in respect of
      the
      conduct of their businesses and the ownership of their property, except such
      noncompliances as could not reasonably be expected to have, either individually
      or in the aggregate, a Material Adverse Effect.

     

    Section 5.12.Environmental
      Matters.  The Borrower and each of its Subsidiaries is in
      compliance with all applicable Environmental Laws and the requirements of any
      permits issued under such Environmental Laws, except to the extent that the
      aggregate effect of all noncompliances could not reasonably be expected to
      have
      a Material Adverse Effect.  There are no pending or, to the best
      knowledge of the Borrower and its Subsidiaries after due inquiry, threatened
      Environmental Claims, including any such claims (regardless of materiality)
      for
      liabilities under CERCLA relating to the disposal of Hazardous Materials,
      against the Borrower or any of its Subsidiaries or any real property, including
      leaseholds, owned or operated by the Borrower or any of its Subsidiaries, except
      such claims as could not reasonably be expected to have, either individually
      or
      in the aggregate, a Material Adverse Effect.  Except as could not
      reasonably be expected to have, either individually or in the aggregate, a
      Material Adverse Effect, there are no facts, circumstances, conditions or
      occurrences on any real property, including leaseholds, owned or operated by
      the
      Borrower or any of its Subsidiaries that, to the best knowledge of the Borrower
      and its Subsidiaries after due inquiry, could reasonably be expected (i) to
      form the basis of an Environmental Claim against the Borrower or any of its
      Subsidiaries or any such real property, or (ii) to cause any such real
      property to be subject to any restrictions on the ownership, occupancy, use
      or
      transferability of such real property by the Borrower or any of its Subsidiaries
      under any applicable Environmental Law.  Hazardous Materials have not
      been Released on or from any real property, including leaseholds, owned or
      operated by the Borrower or any of its Subsidiaries where such Release,
      individually, or when combined with other Releases, in the aggregate, may
      reasonably be expected to have a Material Adverse Effect.

     

    
      
        
        

      

      
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    Section 5.13.Investment
      Company.  Neither the Borrower nor any Subsidiary is an
“investment company” or a company “controlled” by an “investment company” within
      the meaning of the Investment Company Act of 1940, as amended.

     

    Section 5.14.Intellectual
      Property.  The Borrower and each of its Subsidiaries owns all the
      patents, trademarks, permits, service marks, trade names, copyrights, franchises
      and formulas, or rights with respect to the foregoing, or each has obtained
      licenses of all other rights of whatever nature necessary for the present
      conduct of its businesses, in each case without any known conflict with the
      rights of others which, or the failure to obtain which, as the case may be,
      could reasonably be expected to result in a Material Adverse
      Effect.

     

    Section 5.15.Good
      Title.  The Borrower and its Subsidiaries have good and
      marketable title, or valid leasehold interests, to their assets as reflected
      on
      the Borrower’s most recent consolidated balance sheet provided to the
      Administrative Agent (except for sales of assets in the ordinary course of
      business, and such defects in title that could not reasonably be expected to
      have, either individually or in the aggregate, a Material Adverse Effect) and
      is
      subject to no Liens, other than Permitted Liens.

     

    Section 5.16.Labor
      Relations.  Neither the Borrower nor any of its Subsidiaries is
      engaged in any unfair labor practice that could reasonably be expected to have
      a
      Material Adverse Effect.  There is (i) no strike, labor dispute,
      slowdown or stoppage pending against the Borrower or any of its Subsidiaries
      or,
      to the best knowledge of the Borrower and its Subsidiaries, threatened against
      the Borrower or any of its Subsidiaries and (ii) to the best knowledge of
      the Borrower and its Subsidiaries, no union representation proceeding is pending
      with respect to the employees of the Borrower or any of its Subsidiaries and
      no
      union organizing activities are taking place, except (with respect to any matter
      specified in clause (i) or (ii) above, either individually or in the
      aggregate) such as could not reasonably be expected to have a Material Adverse
      Effect.

     

    Section 5.17.Capitalization.  All
      outstanding equity interests of the Borrower and the Subsidiaries have been
      duly
      authorized and validly issued, and are fully paid and nonassessable, and there
      are no outstanding commitments or other obligations of the Borrower or any
      Subsidiary to issue, and no rights of any Person to acquire, any equity
      interests in the Borrower or any Subsidiary.

     

    Section 5.18.Other
      Agreements.  Neither the Borrower nor any Subsidiary is in
      default under the terms of any covenant, indenture or agreement of or affecting
      the Borrower, any Subsidiary or any of their Property, which default if uncured
      could reasonably be expected to have a Material Adverse Effect.

     

    Section 5.19.Governmental
      Authority and Licensing.  The Borrower and its Subsidiaries have
      received all licenses, permits, and approvals of each Governmental Authority
      necessary to conduct their businesses, in each case where the failure to obtain
      or maintain the same could reasonably be expected to have a Material Adverse
      Effect.  No investigation or proceeding that, if adversely determined,
      could reasonably be expected to result in revocation or denial of any license,
      permit or approval is pending or, to the knowledge of the Borrower, threatened,
      except where such revocation or denial could not reasonably be expected to
      have,
      either individually or in the aggregate, a Material Adverse Effect.

     

    
      
        
        

      

      
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    Section 5.20.Approvals.  No
      authorization, consent, license or exemption from, or filing or registration
      with, any Governmental Authority, nor any approval or consent of any other
      Person, is or will be necessary to the valid execution, delivery or performance
      by the Borrower or any Subsidiary of any Loan Document, except for such
      approvals which have been obtained prior to the date of this Agreement and
      remain in full force and effect.

     

    Section 5.21.Affiliate
      Transactions.  Neither the Borrower nor any Subsidiary is a party
      to any contracts or agreements with any of its Affiliates (other than with
      Wholly-owned Subsidiaries) on terms and conditions which are less favorable
      to
      the Borrower or such Subsidiary than would be usual and customary in similar
      contracts or agreements between Persons not affiliated with each
      other.

     

    Section
      5.22.Solvency.  After giving effect to the
      HHD Purchase, the Borrower and its Subsidiaries are collectively solvent,
      able to pay their debts as they become due, and have sufficient capital to
      carry
      on their business and all businesses in which they are about to
      engage.

     

    Section 5.23.No
      Broker Fees. No broker’s or finder’s fee or commission will be payable with
      respect hereto or any of the transactions contemplated thereby; and the Borrower
      hereby agrees to indemnify the Administrative Agent and the Lenders against,
      and
      agree that they will hold the Administrative Agent and the Lenders harmless
      from, any claim, demand, or liability for any such broker’s or finder’s fees
      alleged to have been incurred in connection herewith or therewith and any
      expenses (including reasonable attorneys’ fees) arising in connection with any
      such claim, demand, or liability.

     

    Section 5.24.Foreign
      Assets Control Regulations and Anti-Money
      Laundering.  (a) OFAC.  Neither Borrower
      nor any of its Subsidiaries is (i) a person whose property or interest in
      property is blocked or subject to blocking pursuant to Section 1 of Executive
      Order 13224 of September 23, 2001 Blocking Party and Prohibiting
      Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism
      (66 Fed. Reg. 49079 (2001)), (ii) a person who engages in any dealings or
      transactions prohibited by Section 2 of such executive order, or is
      otherwise associated with any such person in any manner violative of
      Section 2, or (iii) a person on the list of Specially Designated
      Nationals and Blocked Persons or subject to the limitations or prohibitions
      under any other U.S. Department of Treasury’s Office of Foreign Assets Control
      regulation or executive order. 

     

    (b)PatriotAct.  The
      Borrower and its Subsidiaries are in compliance, in all material respects,
      with
      the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
      2001)) (the “Patriot Act”).  No part of the proceeds of the
      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.

     

    Section 5.25.Purchase
      Agreement.  The Borrower has provided to the Administrative Agent
      a true and correct copy of the Purchase Agreement.  The Purchase
      Agreement is in full force and effect and has not, except as reflected in
      amendments provided to the Administrative Agent, been amended or modified in
      any
      material respect from the version so delivered to the Administrative Agent,
      no
      material condition to the effectiveness thereof has been waived and no material
      obligations of the Sellers thereunder have been waived, except to the extent
      approved in writing by the Administrative Agent, and the Borrower is not aware
      of any default thereunder.  No authorization, consent, license, or
      exemption from, or filing or registration with, any Governmental Authority,
      nor
      any material approval or consent of any other Person, is or will be necessary
      to
      the valid execution, delivery, or material performance by the Sellers, the
      Purchaser, or the Borrower of the Purchase Agreement or of any other instrument
      or document executed and delivered in connection therewith, except for
      (a) such thereof that have heretofore been obtained and remain in full
      force and effect and (b) such thereof identified on Schedule
      5.25 hereof.  As of the Closing Date, all
      representations and warranties of the Borrower, the Purchaser and, to the best
      of the Borrower’s knowledge, the Seller in the Purchase Agreement are true and
      correct.

     

    
      
        
        

      

      
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              Section 6.Covenants.

            

    

     

    The
      Borrower covenants and agrees that, so long as any Credit is available to the
      Borrower hereunder and until all Obligations are paid in full:

     

    Section 6.1.Information
      Covenants.  The Borrower will furnish to the Administrative
      Agent, with sufficient copies for each Lender:

     

    (a)Monthly
      Reports.  Within 20 days after the end of each fiscal month of
      the Borrower, commencing with the fiscal month of the Borrower ending
      August 31, 2007, (i) the Borrower’s consolidated and
      consolidating balance sheet as at the end of such fiscal month and the related
      consolidated and consolidating statements of income and retained earnings and
      of
      cash flows for such fiscal month and for the elapsed portion of the fiscal
      year-to-date period then ended, each in reasonable detail, prepared by the
      Borrower in accordance with GAAP, setting forth comparative figures for the
      corresponding fiscal month in the prior fiscal year and comparable budgeted
      figures for such fiscal month, all of which shall be certified by the chief
      financial officer or other officer of the Borrower acceptable to the
      Administrative Agent that they fairly present in all material respects in
      accordance with GAAP the financial condition of the Borrower and its
      Subsidiaries as of the dates indicated and the results of their operations
      and
      changes in their cash flows for the periods indicated, subject to normal
      year-end audit adjustments and the absence of footnotes and (ii) a
      Borrowing Base Certificate showing the computation of the Borrowing Base in
      reasonable detail as of the close of business on the last day of the immediately
      preceding month, together with such other information as therein required,
      prepared by the Borrower and certified to by its chief financial officer or
      another officer of the Borrower acceptable to the Administrative Agent and
      an
      accounts receivable aging, an accounts payable aging, a cash reconciliation,
      and
      an inventory stock status report, each in reasonable detail prepared by the
      Borrower and certified to by its chief financial officer or another officer
      of
      the Borrower acceptable to the Administrative Agent.

     

    (b)Annual
      Statements.  Within 120 days after the close of each fiscal year
      of the Borrower, a copy of the Borrower’s consolidated and consolidating balance
      sheet as of the last day of the fiscal year then ended and the Borrower’s
      consolidated and consolidating statements of income, retained earnings, and
      cash
      flows for the fiscal year then ended, and accompanying notes thereto, each
      in
      reasonable detail showing in comparative form the figures for the previous
      fiscal year, accompanied by an unqualified opinion of Arnett & Foster,
      P.L.L.C. or a different firm of independent public accountants of recognized
      national standing, selected by the Borrower and acceptable to the Administrative
      Agent, to the effect that the consolidated financial statements have been
      prepared in accordance with GAAP and present fairly in accordance with GAAP
      the
      consolidated financial condition of the Borrower and its Subsidiaries as of
      the
      close of such fiscal year and the results of their operations and cash flows
      for
      the fiscal year then ended and that an examination of such accounts in
      connection with such financial statements has been made in accordance with
      generally accepted auditing standards.

     

    
      
        
        

      

      
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    (c)Officer’s
      Certificates.  Within 45 days after the end of each fiscal
      quarter of the Borrower and at the time of the delivery of the financial
      statements provided for in Section 6.1(b), commencing with the fiscal
      quarter of the Borrower ending October 31, 2007, (i) a
      certificate of the chief financial officer or other officer of the Borrower
      acceptable to Administrative Agent in the form of Exhibit E
      (x) stating no Default or Event of Default has occurred during the period
      covered by such statements of, if a Default or Event of Default exists, a
      detailed description of the Default or Event of Default and all actions the
      Borrower is taking with respect to such Default or Event of Default,
      (y) confirming that the representations and warranties stated in
      Section 5 remain true and correct in all material respects (except to the
      extent such representations and warranties relate to an earlier date, in which
      case they are true and correct of such date), and (z) showing the
      Borrower’s compliance with the covenants set forth in 6.20, (ii) a
      comparison of the current year to date financial results (other than in respect
      of the balance sheets included therein) against the budgets required to be
      submitted pursuant to clause 6.1(d) and, at all times after the first
      anniversary of the Closing Date, showing a comparison of the current year to
      date financial results against the financial results of the prior year for
      the
      same period, and (iii) an accounts receivable aging and an inventory stock
      status report each in reasonable detail prepared by the Borrower and certified
      to by its Chief Financial Officer or another officer of the Borrower acceptable
      to the Administrative Agent.

     

    (d)Budgets.  As
      soon as available, but in any event at least 30 days prior to the first day
      of
      each fiscal year of the Borrower, a budget in form satisfactory to the
      Administrative Agent (including, without limitation, a breakdown of the
      projected results of each line of business of the Borrower and its Subsidiaries,
      and budgeted consolidated and consolidating statements of income, and sources
      and uses of cash and balance sheets for the Borrower and its Subsidiaries)
      of
      the Borrower and its Subsidiaries in reasonable detail satisfactory to the
      Administrative Agent for each fiscal month and the four fiscal quarters of
      the
      immediately succeeding fiscal year and, with appropriate discussion, the
      principal assumptions upon which such budget is based. 

     

    (e)Notice
      of Default or Litigation.  Promptly, and in any event within two
      Business Days after any officer of the Borrower obtains knowledge thereof,
      notice of (i) the occurrence of any event which constitutes a Default or an
      Event of Default or any other event which could reasonably be expected to have
      a
      Material Adverse Effect, which notice shall specify the nature thereof, the
      period of existence thereof and what action the Borrower proposes to take with
      respect thereto, (ii) the commencement of, or threat of, or any significant
      development in, any litigation, labor controversy, arbitration or governmental
      proceeding pending against the Borrower or any of its Subsidiaries which, if
      adversely determined, could reasonably be expected to have a Material Adverse
      Effect.

     

    
      
        
        

      

      
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    (f)Management
      Letters.  Promptly after the Borrower’s receipt thereof, a copy
      of each report or any “management letter” submitted to the Borrower or any of
      its Subsidiaries by its certified public accountants and the management’s
      responses thereto.

     

    (g)Other
      Reports and Filings.  Promptly, copies of all financial
      information, proxy materials and other material information, certificates,
      reports, statements and completed forms, if any, which the Borrower or any
      of
      its Subsidiaries (x) has filed with the United States Securities and
      Exchange Commission or any governmental agencies substituted therefor (the
      “SEC”) furnished to the shareholders of the Borrower, or (y) has
      delivered to holders of, or to any agent or trustee with respect to,
      Indebtedness of the Borrower or any of its Subsidiaries in their capacity as
      such a holder, agent or trustee to the extent that the aggregate principal
      amount of such Indebtedness exceeds (or upon the utilization of any unused
      commitments may exceed) $1,000,000.

     

    (h)Environmental
      Matters.  Promptly upon, and in any event within five Business
      Days after any officer of the Borrower obtains knowledge thereof, notice of
      one
      or more of the following environmental matters which individually, or in the
      aggregate, may reasonably be expected to have a Material Adverse
      Effect:  (i) any notice of Environmental Claim against the
      Borrower or any of its Subsidiaries or any real property owned or operated
      by
      the Borrower or any of its Subsidiaries; (ii) any condition or occurrence
      on or arising from any real property owned or operated by the Borrower or any
      of
      its Subsidiaries that (a) results in noncompliance by the Borrower or any
      of its Subsidiaries with any applicable Environmental Law or (b) could
      reasonably be expected to form the basis of an Environmental Claim against
      the
      Borrower or any of its Subsidiaries or any such real property; (iii) any
      condition or occurrence on any real property owned or operated by the Borrower
      or any of its Subsidiaries that could reasonably be expected to cause such
      real
      property to be subject to any restrictions on the ownership, occupancy, use
      or
      transferability by the Borrower or any of its Subsidiaries of such real property
      under any Environmental Law; and (iv) any removal or remedial actions to be
      taken in response to the actual or alleged presence of any Hazardous Material
      on
      any real property owned or operated by the Borrower or any of its Subsidiaries
      as required by any Environmental Law or any Governmental
      Authority.  All such notices shall describe in reasonable detail the
      nature of the claim, investigation, condition, occurrence or removal or remedial
      action and the Borrower’s or such Subsidiary’s response thereto.  In
      addition, the Borrower agrees to provide the Lenders with copies of all material
      written communications by the Borrower or any of its Subsidiaries with any
      Person or Governmental Authority relating to any of the matters set forth in
      clauses (i)-(iv) above, and such detailed reports relating to any of the
      matters set forth in clauses (i)-(iv) above as may reasonably be requested
      by the Administrative Agent or the Required Lenders.

     

    
      
        
        

      

      
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    (i)Other
      Information.  From time to time, such other information or
      documents (financial or otherwise) as the Administrative Agent or any Lender
      may
      reasonably request.

     

    Section 6.2.Inspections.  The
      Borrower will, and will cause each Subsidiary to, permit officers,
      representatives and agents of the Administrative Agent or any Lender, to visit
      and inspect any Property of the Borrower or such Subsidiary, and to examine
      the
      books of account of the Borrower or such Subsidiary and discuss the affairs,
      finances and accounts of the Borrower or such Subsidiary with its and their
      officers and independent accountants, all at such reasonable times as the
      Administrative Agent or any Lender may request. 

     

    Section 6.3.Maintenance
      of Property, Insurance, Environmental Matters, etc.  (a) The
      Borrower will, and will cause each of its Subsidiaries to, (i) keep its
      property, plant and equipment in good repair, working order and condition,
      normal wear and tear excepted, and shall from time to time make all needful
      and
      proper repairs, renewals, replacements, extensions, additions, betterments
      and
      improvements thereto so that at all times such property, plant and equipment
      are
      reasonably preserved and maintained and (ii) maintain in full force and
      effect with financially sound and reputable insurance companies insurance which
      provides substantially the same (or greater) coverage and against at least
      such
      risks as is in accordance with industry practice, and shall furnish to the
      Administrative Agent upon request full information as to the insurance so
      carried.  In any event, the Borrower shall, and shall cause each of
      its Subsidiaries to, maintain insurance on the Collateral to the extent required
      by the Collateral Documents.

     

    (b)Without
      limiting the generality of Section 6.3(a), the Borrower and its
      Subsidiaries: (i) shall comply with, and maintain all real property in
      compliance with, any applicable Environmental Laws, except to the extent that
      the aggregate effect of all noncompliance could not reasonably be expected
      to
      have a Material Adverse Effect; (ii) shall obtain and maintain in full
      force and effect all governmental approvals required for its operations at
      or on
      its properties by any applicable Environmental Laws; (iii) shall cure as
      soon as reasonably practicable any violation of applicable Environmental Laws
      with respect to any of its properties which individually or in the aggregate
      may
      reasonably be expected to have a Material Adverse Effect; (iv) shall not,
      and shall not permit any other Person to, own or operate on any of its
      properties any landfill or dump or hazardous waste treatment, storage or
      disposal facility as defined pursuant to the RCRA, or any comparable state
      law;
      and (v) shall not use, generate, treat, store, release or dispose of
      Hazardous Materials at or on any of the real property except in the ordinary
      course of its business and in compliance with all Environmental
      Laws.  With respect to any Release of Hazardous Materials, the
      Borrower and its Subsidiaries shall conduct any necessary or required
      investigation, study, sampling and testing, and undertake any cleanup, removal,
      remedial or other response action necessary to remove, cleanup or abate any
      material quantity of Hazardous Materials released at or on any of its properties
      as required by any applicable Environmental Law.

     

    
      
        
        

      

      
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    Section 6.4.Preservation
      of Existence.  The Borrower will, and will cause each of its
      Subsidiaries to, do or cause to be done, all things necessary to preserve and
      keep in full force and effect its existence and, except where the failure to
      do
      so would not reasonably be expected to have a Material Adverse Effect, its
      franchises, authority to do business, licenses, patents, trademarks, copyrights
      and other proprietary rights; provided, however, that nothing in this
      Section 6.4 shall prevent, to the extent permitted by Section 6.13,
      sales of assets by the Borrower or any of its Subsidiaries, the dissolution
      or
      liquidation of any Subsidiary of the Borrower, or the merger or consolidation
      between or among the Subsidiaries of the Borrower.

     

    Section 6.5.Compliance
      with Laws.  The Borrower shall, and shall cause each Subsidiary
      to, comply in all respects with the requirements of all laws, rules,
      regulations, ordinances and orders applicable to its property or business
      operations of any Governmental Authority, where any such non-compliance,
      individually or in the aggregate, could reasonably be expected to have a
      Material Adverse Effect or result in a Lien upon any of its
      Property.

     

    Section 6.6.ERISA.  The
      Borrower shall, and shall cause each Subsidiary to, promptly pay and discharge
      all obligations and liabilities arising under ERISA of a character which if
      unpaid or unperformed could reasonably be expected to have a Material Adverse
      Effect or result in a Lien upon any of its Property.  The Borrower
      shall, and shall cause each Subsidiary to, promptly notify the Administrative
      Agent and each Lender of:  (a) the occurrence of any reportable
      event (as defined in ERISA) with respect to a Plan, (b) receipt of any
      notice from the PBGC of its intention to seek termination of any Plan or
      appointment of a trustee therefor, (c) its intention to terminate or
      withdraw from any Plan, and (d) the occurrence of any event with respect to
      any Plan which would result in the incurrence by the Borrower or any Subsidiary
      of any material liability, fine or penalty, or any material increase in the
      contingent liability of the Borrower or any Subsidiary with respect to any
      post-retirement Welfare Plan benefit.

     

    Section 6.7.Payment
      of Taxes.  The Borrower will, and will cause each of its
      Subsidiaries to, pay and discharge, all taxes, assessments, fees and other
      governmental charges imposed upon it or any of its Property, before becoming
      delinquent and before any penalties accrue thereon, unless and to the extent
      that the same are being contested in good faith and by proper proceedings and
      as
      to which appropriate reserves are provided therefor, unless and until any Lien
      resulting therefrom attaches to any of its Property.

     

    Section 6.8.Contracts
      with Affiliates.  The Borrower shall not, nor shall it permit
      any Subsidiary to, enter into any contract, agreement or business arrangement
      with any of its Affiliates (other than Wholly-owned Subsidiaries) on terms
      and
      conditions which are less favorable to the Borrower or such Subsidiary than
      would be usual and customary in similar contracts, agreements or business
      arrangements between Persons not affiliated with each other.

     

    Section 6.9.No
      Changes in Fiscal Year.  The Borrower shall not, nor shall it
      permit any Subsidiary to, change its fiscal year from its present
      basis.

     

    Section 6.10.Change
      in the Nature of Business. The Borrower shall not, nor shall
      it permit any Subsidiary to, engage in any business or activity if as a result
      the general nature of the business of the Borrower or any Subsidiary would
      be
      changed in any material respect from the general nature of the business engaged
      in by it as of the Closing Date.

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

    Section 6.11.Indebtedness.  The
      Borrower will not, and will not permit any of its Subsidiaries to, contract,
      create, incur, assume or suffer to exist any Indebtedness, except;

     

    (a)the
      Obligations, Hedging Liability, and Funds Transfer and Deposit Account Liability
      of the Borrower and its Subsidiaries owing to the Administrative Agent and
      the
      Lenders (and their Affiliates);

     

    (b)Indebtedness
      owed pursuant to Hedge Agreements entered into in the ordinary course of
      business and not for speculative purposes with Persons other than Lenders (or
      their Affiliates);

     

    (c)intercompany
      Indebtedness among the Borrower and its Subsidiaries to the extent permitted
      by
      Section 6.14;

     

    (d)purchase
      money Indebtedness and Capitalized Lease Obligations of the Borrower and its
      Subsidiaries in an amount not to exceed $1,000,000 in the aggregate outstanding
      at any time prior to the first anniversary of the Closing Date, $2,000,000
      in
      the aggregate outstanding at any time on or after the first anniversary of
      the
      Closing Date but before the second anniversary of the Closing Date and
      $3,000,000 in the aggregate outstanding at any time thereafter; and

     

    (e)unsecured
      Indebtedness of the Borrower and its Subsidiaries not otherwise permitted by
      this Section in an amount not to exceed $1,000,000 in the aggregate at any
      one
      time outstanding.

     

    Section 6.12.Liens.  The
      Borrower will not, and will not permit any of its Subsidiaries to, create,
      incur
      or suffer to exist any Lien on any of its Property; provided that the
      foregoing shall not prevent the following (the Liens described below, the
“Permitted Liens”):

     

    (a)inchoate
      Liens for the payment of taxes which are not yet due and payable or the payment
      of which is not required by Section 6.7;

     

    (b)Liens
      arising by statute in connection with worker’s compensation, unemployment
      insurance, old age benefits, social security obligations, taxes, assessments,
      statutory obligations or other similar charges (other than Liens arising under
      ERISA), good faith cash deposits in connection with tenders, contracts or leases
      to which the Borrower or any Subsidiary is a party or other cash deposits
      required to be made in the ordinary course of business, provided in each case
      that the obligation is not for borrowed money and that the obligation secured
      is
      not overdue or, if overdue, is being contested in good faith by appropriate
      proceedings which prevent enforcement of the matter under contest and adequate
      reserves have been established therefor;

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

    (c)mechanics’,
      workmen’s, materialmen’s, landlords’, carriers’ or other similar Liens arising
      in the ordinary course of business with respect to obligations which are not
      due
      or which are being contested in good faith by appropriate proceedings which
      prevent enforcement of the matter under contest;

     

    (d)Liens
      created by or pursuant to this Agreement and the Collateral
      Documents;

     

    (e)Liens
      on property of the Borrower or any Subsidiary created solely for the purpose
      of
      securing indebtedness permitted by Section 6.11(d) hereof, representing or
      incurred to finance the purchase price of Property, provided that no such Lien
      shall extend to or cover other Property of the Borrower or such Subsidiary
      other
      than the respective Property so acquired, and the principal amount of
      indebtedness secured by any such Lien shall at no time exceed the purchase
      price
      of such Property, as reduced by repayments of principal thereon;
      and

     

    (f)easements,
      rights-of-way, restrictions, and other similar encumbrances against real
      property incurred in the ordinary course of business which, in the aggregate,
      are not substantial in amount and which do not materially detract from the
      value
      of the Property subject thereto or materially interfere with the ordinary
      conduct of the business of the Borrower or any Subsidiary.

     

    Section 6.13.Consolidation,
      Merger, Sale of Assets, etc.  The Borrower will not, and will not
      permit any of its Subsidiaries to, wind up, liquidate or dissolve its affairs
      or
      agree to any merger or consolidation, or convey, sell, lease or otherwise
      dispose of all or any part of its property, including any disposition as part
      of
      any sale-leaseback transactions except that this Section shall not
      prevent:

     

    (a)the
      sale and lease of inventory in the ordinary course of business;

     

    (b)the
      sale, transfer or other disposition of any tangible personal property that,
      in
      the reasonable judgment of the Borrower or its Subsidiaries, has become
      uneconomic, obsolete or worn out;

     

    (c)the
      sale, transfer, lease, or other disposition of Property of the Borrower and
      its
      Subsidiaries to one another;

     

    (d)the
      merger of any Subsidiary with and into the Borrower or any other Subsidiary,
      provided that, in the case of any merger involving the Borrower, the
      Borrower is the legal entity surviving the merger; 

     

    (e)the
      disposition or sale of Cash Equivalents on consideration for cash;
      and

     

    (f)the
      sale, transfer, lease, or other disposition of Property of the Borrower or
      any
      Subsidiary (including any disposition of Property as part of a sale and
      leaseback transaction) aggregating for the Borrower and its Subsidiaries not
      more than $1,000,000 during any fiscal year of the Borrower.

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

    So
      long
      as no Default or Event of Default has occurred and is continuing or would arise
      as a result thereof, upon the written request of the Borrower, the
      Administrative Agent shall release its Lien on any Property sold pursuant to
      the
      foregoing provisions.

     

    Section 6.14.Advances,
      Investments and Loans.  The Borrower will not, and will not
      permit any of its Subsidiaries to, directly or indirectly, make loans or
      advances to or make, retain or have outstanding any investments (whether through
      purchase of equity interests or obligations or otherwise) in, any Person or
      enter into any partnerships or joint ventures, 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 in the nature of a futures contract, except
      that this Section shall not prevent:

     

    (a)receivables
      created in the ordinary course of business and payable or dischargeable in
      accordance with customary trade terms;

     

    (b)investments
      in Cash Equivalents;

     

    (c)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;

     

    (d)the
      Borrower’s investments existing on the date of this Agreement in its
      Subsidiaries;

     

    (e)intercompany
      advances made from time to time from the Borrower to any one or more of its
      Subsidiaries in the ordinary course of business;

     

    (f)Permitted
      Acquisitions; and

     

    (g)other
      investments, loans and advances in addition to those otherwise permitted by
      this
      Section in an amount not to exceed $1,000,000 in the aggregate at any one time
      outstanding.

     

    Section 6.15.Dividends
      and Certain Other Restricted Payments.  The Borrower shall not,
      nor shall it permit any of its Subsidiaries to, (i) declare or pay any
      dividends on or make any other distributions in respect of any class or series
      of its capital stock or other equity interests, (ii) directly or indirectly
      purchase, redeem, or otherwise acquire or retire any of its capital stock or
      other equity interests or any warrants, options, or similar instruments to
      acquire the same (collectively, referred to herein as “Restricted
      Payments”); provided, however, that the foregoing shall not
      operate to prevent (i) the making of dividends or distributions by any
      Wholly-owned Subsidiary of the Borrower to its parent corporation and (ii) 
dividends or other distributions by the Borrower in respect of any class or
      series of its equity interests (each, a “Stockholder Distribution”)
      during each fiscal year of the Borrower ending after October 31, 2007, so long
      as, with respect to each Stockholder Distribution, no Default or Event of
      Default shall exist, or shall exist after giving effect to the proposed
      Stockholder Distribution, including with respect to the covenants contained
      in
      Section 6.20 on a pro forma basis and the Borrower shall have delivered
      to the Administrative Agent prior to the proposed Stockholder Distribution
      a
      compliance certificate in the form of Exhibit E attached hereto evidencing
      such
pro forma compliance with Section 6.20. 

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

    Section 6.16.Limitation
      on Restrictions.  The Borrower will not, and it will not permit
      any of its Subsidiaries to, directly or indirectly, create or otherwise cause
      or
      suffer to exist or become effective any restriction on the ability of any such
      Subsidiary to (a) pay dividends or make any other distributions on its
      capital stock or other equity interests owned by the Borrower or any other
      Subsidiary, (b) pay or repay any Indebtedness owed to the Borrower or any
      other Subsidiary, (c) make loans or advances to the Borrower or any other
      Subsidiary, (d) transfer any of its Property to the Borrower or any other
      Subsidiary, (e) encumber or pledge any of its assets to or for the benefit
      of the Administrative Agent or (f) guaranty the Obligations, Hedging
      Liability and Funds Transfer and Deposit Account Liability.

     

    Section 6.17.Limitation
      on the Creation of Subsidiaries.  Notwithstanding anything to the
      contrary contained in this Agreement, the Borrower will not, and will not permit
      any of its Subsidiaries to, establish, create or acquire after the Closing
      Date
      any Subsidiary; provided that the Borrower and its Wholly-owned
      Subsidiaries shall be permitted to establish or create Wholly-owned Subsidiaries
      so long as at least 30 days prior written notice thereof is given to the
      Administrative Agent, and the Borrower and its Subsidiaries timely comply with
      the requirements of Section 4 (at which time Section 5.10 shall be
      deemed to include a reference to such Subsidiary).

     

    Section
      6.18.OFAC.  The Borrower will not, and will not permit
      any of its Subsidiaries to, (i) become a person whose property or interests
      in property are blocked or subject to blocking pursuant to Section 1 of
      Executive Order 13224 of September 23, 2001 Blocking Party and
      Prohibiting Transactions With Persons Who Commit, Threaten to Commit or Support
      Terrorism (66 Fed. Reg. 49079(2001)), (ii) engage in any dealings or
      transactions prohibited by Section 2 of such executive order, or be
      otherwise associated with any such person in any manner violative of
      Section 2, and (iii) become a person on the list of Specially
      Designated Nationals and Blocked Persons or subject to the limitations or
      prohibitions under any other U.S. Department of Treasury’s Office of
      Foreign Assets Control regulation or executive order. 

     

    Section 6.19.Operating
      Accounts.  Except with respect to deposit and operating accounts
      with other financial institutions that are subject to account control agreements
      in favor of the Administrative Agent perfecting the Administrative Agent’s Lien
      on such accounts, and local petty cash accounts and payroll accounts for which
      such a Lien is not required pursuant to Section 4.1 hereof, each of the
      operating accounts of the Borrower and its Subsidiaries shall be at all times
      maintained with the Administrative Agent.

    

    
      
        
          
          

        

        
          58

          
            

          

        

        
          
          

        

      

    

    

     

    Section 6.20.Financial
      Covenants.  (a) Leverage Ratio.  The
      Borrower shall not, as of the last day of each fiscal quarter of the Borrower
      ending during the periods specified below, permit the Leverage Ratio to be
      greater than:

    
      	
               

              From
                and Including

            	
               

              To
                and Including

            	
              The
                Leverage Ratio Shall Not Be Greater Than:

            
	
              the
                Closing Date

            	
              October
                31, 2008

            	
              4.25:
                1.00

            
	
              November
                1, 2008

            	
              October
                31, 2009

            	
              4.00:
                1.00

            
	
              November
                1, 2009

            	
              October
                31, 2010

            	
              3.75:
                1.00

            
	
              November
                1, 2010

            	
              at
                all times thereafter

            	
              3.50:
                1.00

            

    

     

    (b)First
      Fixed Charge Coverage Ratio.  As of the last day of each fiscal
      quarter of the Borrower ending during the periods specified below, the Borrower
      shall maintain a ratio of (i) EBITDA for the four fiscal quarters of the
      Borrower then ended minus Capital Expenditures during such period not
      financed with Indebtedness to (ii) Fixed Charges A for the same four
      fiscal quarters then ended of greater than:

    
      	
              From
                and Including

            	
              To
                and Including

            	
              Ratio
                of EBITDA to Fixed Charges A shall be greater
                than:

            
	
              January
                31, 2008

            	
              October
                31, 2008

            	
              1.15:
                1.00

            
	
              November
                1, 2008

            	
              October
                31, 2009

            	
              1.20:
                1.00

            
	
              November
                1, 2009

            	
              at
                all times thereafter

            	
              1.25:
                1.00

            

    

     

    ;
      provided, however, that notwithstanding anything in this
      Section to the contrary, for purposes of calculating Capital Expenditures not
      financed with Indebtedness for each quarter ending on or before
      July 31, 2008, Capital Expenditures not financed with Indebtedness
      during the period of calculation shall be deemed to be the product of (x) a
      fraction, the numerator of which is 365 and the denominator of which is the
      number of days during the period from and including November 1, 2007 through
      and
      including the last day of such period of calculation (the “Post-Closing
      Period”) and (y) actual Capital Expenditures not financed with Indebtedness
      during the Post-Closing Period. 

     

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

    (c)Second
      Fixed Charge Coverage
      Ratio.  As of the last day of each fiscal quarter of the Borrower
      ending during the periods specified below the Borrower shall maintain, and
      prior
      to making any Restricted Payment the Borrower shall show that it will maintain
      on a pro forma basis, a ratio of (i) EBITDA for the four fiscal
      quarters of the Borrower then ended minus Capital Expenditures during
      such period not financed with Indebtedness to (ii) Fixed Charges B for the
      same four fiscal quarters then ended of greater than:

    
      	
              From
                and Including

            	
              To
                and Including

            	
              Ratio
                of EBITDA to Fixed Charges B shall be greater
                than:

            
	
              January
                31, 2008

            	
              October
                31, 2008

            	
              1.10:
                1.00

            
	
              November
                1, 2008

            	
              October
                31, 2009

            	
              1.15:
                1.00

            
	
              November
                1, 2009

            	
              at
                all times thereafter

            	
              1.20:
                1.00

            

    

     

    ;
      provided, however, that notwithstanding anything in this
      Section to the contrary, for purposes of calculating Capital Expenditures not
      financed with Indebtedness for each quarter ending on or before
      July 31, 2008, Capital Expenditures not financed with Indebtedness
      during the period of calculation shall be deemed to be the product of (x) a
      fraction, the numerator of which is 365 and the denominator of which is the
      number of days during the period from and including November 1, 2007 through
      and
      including the last day of such period of calculation (the “Post-Closing
      Period”) and (y) actual Capital Expenditures not financed with Indebtedness
      during the Post-Closing Period.

     

    (d)Minimum
      EBITDA.  The Borrower shall not as of the last day of each fiscal
      quarter beginning with that quarter ending October 31, 2007, through
      and including that quarter ending October 31, 2009, permit the EBITDA for
      the twelve months then ended to be less than $18,000,000.

     

    (e)Maximum
      Capital Expenditures.

     

    (i)For
      each fiscal year of the Borrower beginning with that fiscal year ending October
      31, 2008, the Borrower shall not, nor shall it permit any Subsidiary to, expend
      or become obligated for Capital Expenditures in an aggregate amount in excess
      of
      $3,000,000 during any fiscal year of the Borrower; provided that to the
      extent that Capital Expenditures in the previous fiscal year were less than
      $3,000,000, the limit for Capital Expenditures in the succeeding fiscal year
      shall be increased by the difference between $3,000,000 and the amount of
      Capital Expenditures for the previous fiscal year; provided,
however, that notwithstanding anything in this Section to the
      contrary,
      for purposes of calculating Capital Expenditures for each quarter ending on
      or
      before July 31, 2008, Capital Expenditures during the period of
      calculation shall be deemed to be the product of (x) a fraction, the numerator
      of which is 365 and the denominator of which is the number of days during the
      period from and including November 1, 2007 through and including the last day
      of
      such period of calculation (the “Post-Closing Period”) and (y) actual
      Capital Expenditures during the Post-Closing Period.  

     

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

    (ii)The
      Borrower shall not, nor shall it permit any Subsidiary to, expend or become
      obligated for Capital Expenditures in an aggregate amount in excess of
      $1,100,000 during that fiscal quarter of the Borrower ending October 31,
      2007.

     

    (f)Minimum
      Revolving Loan Availability.  On the Closing Date and on the last
      day of each fiscal month of the Borrower, the Borrower shall have Excess
      Availability plus cash of the Borrower plus Cash Equivalents
      of the Borrower equal to or greater than $3,000,000.

     

    Section 6.21.Interest
      Rate Protection.  No later than 90 days after the Closing Date,
      the Borrower shall hedge its interest rate risk on not less than $25,000,000
      of
      the principal amount of the Term Loans (the “Notional Amount”) through
      the use of one or more interest rate Hedge Agreements with counter-parties
      reasonably acceptable to the Administrative Agent to effectively limit the
      amount of interest that the Borrower must pay on the Notional Amount to not
      more
      than a rate reasonably acceptable to the Administrative Agent, which agreements
      shall remain outstanding for a period of not less than
      3 years.

     

    Section 6.22.Integrated
      Cash Management System.  The Borrower shall maintain an
      integrated cash management system with the Administrative Agent, including
      a
      concentration account maintained with the Administrative Agent with a balance
      of
      at least $750,000 to be maintained at all times; provided that, if, to
      the Borrower’s knowledge, the cash balance in the concentration account is at
      any time less than $750,000, Borrower shall cause such balance to be in
      compliance with this Section 6.22 within 3 Business Days of acquiring such
      knowledge.

     

    Section 6.23.U.S.
      Tag & Ticket Company, Inc..  The Borrower shall not permit
      U.S. Tag & Ticket Company, Inc. to own, at any time, assets with an
      aggregate fair market value in excess of $5,000.

     

    Section 6.24.Lead
      Management Program.  The Borrower shall, and shall cause Champion
      Publishing, Inc. to, comply with, and perform all actions required by, the
      Lead
      Management Plan dated February 2007 for The Herald-Dispatch, 946 Fifth
      Avenue, Huntington, West Virginia  25701.

     

    Section 6.25.Post-Closing
      Matters.  Within 30 days of the Closing Date, the Borrower shall
      deliver to the Administrative Agent:

     

    (a)a
      machinery and equipment appraisal report prepared by an appraiser acceptable to
      the Administrative Agent, which appraisal report shall describe the net orderly
      liquidation value of the machinery and equipment of the Borrower and each
      Subsidiary;

     

    (b)appraisal
      reports prepared for the Administrative Agent by state certified appraisers
      selected by the Administrative Agent, which appraisals reports describe the
      fair
      market value of the real property subject to the Liens of the Mortgages and
      otherwise meet the requirements of the Administrative Agent;

     

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

    

    (c)The
      audited consolidated financial statements (including an income statement, a
      balance sheet, and a cash flow statement) of the Target for the fiscal years
      ending October 31, 2006, October 31, 2005, and
      October 31, 2004; (ii) a projection model depicting five years of
      income statements, balance sheets and cash flow statements for the Borrower
      on a
pro forma basis after giving effect to the HHD Purchase which model
      shall be acceptable to the Administrative Agent in form and substance; and
      (iii)
      a consolidated balance sheet of the Borrower as of the Closing Date adjusted
      to
      give effect to the HHD Purchase, in form and substance acceptable to the
      Administrative Agent; 

     

    (d)An
      amendment to any title insurance policy issued pursuant to Section 3.2(i)
      hereof, to increase the coverage provided in such policy, for any of the
      properties subject to the Mortgages where the value of the property as
      determined by the appraisal required by Section 6.25(b) hereof is greater than
      the assessed valuation of the property used to calculate the original coverage
      amount of the title insurance for such property, with the amendment to the
      title
      policy delivered pursuant to this Section 6.25(d) to cause the insured amount
      to
      be equal to the amount of the greater, appraised value of the
      property;

     

    (e)An
      amendment to the title insurance policy for that property commonly known as
      711
      Indiana Street, West Virginia (the “Indiana Street Property”) issued
      pursuant to Section 3.2(i) hereof to remove the standard survey exceptions
      provided for in Schedule B of such Indiana Street Policy and a survey
      endorsement to the Indiana Street Property;

     

    (f)A
      survey for the Indiana Street Property prepared by a licensed surveyor in form
      and substance acceptable to the Administrative Agent;

     

    (g)A
      Landlord’s Agreement, in form and substance acceptable to the Administrative
      Agent, executed by the landlord for that property commonly known as 1901 Mayview
      Road, Bridgeville, Pennsylvania; provided that, notwithstanding
      anything to the contrary herein, any Inventory at such location shall be
      considered Eligible Inventory hereunder for the 30 days following the Closing
      Date; and

     

    (h)Deposit
      Account Control Agreements, in form and substance acceptable to the
      Administrative Agent, with respect to deposit accounts maintained by the
      Borrower or any of its Subsidiaries at Regions Bank, First
      Tennessee Bank and Branch Banking & Trust; provided that,
      notwithstanding anything to the contrary herein, such deposit accounts may
      be
      maintained at such depository institutions without such control agreements
      for
      the 30 days following the Closing Date. 

     

    
      
        
        

      

      
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              Section 7.Events
                of Default and Remedies.

            

    

     

    Section 7.1.Events
      of Default.  Any one or more of the following shall constitute an
“Event of Default” hereunder:  

     

    (a)default
      in the payment when due (whether at the stated maturity thereof or at any other
      time provided for in this Agreement) of all or any part of the principal of
      or
      interest on any Loan or any other Obligation payable hereunder or under any
      other Loan Document;

     

    (b)default
      in the observance or performance of any covenant set forth in Sections 6.1,
      6.4, 6.11, 6.12, 6.13, 6.14, 6.15, 6.20, 6.21, 6.22, 6.23 or 6.25 hereof or
      of
      any provision in any Loan Document dealing with the use, disposition or
      remittance of the proceeds of Collateral or requiring the maintenance of
      insurance thereon;

     

    (c)default
      in the observance or performance of any other provision hereof or of any other
      Loan Document which is not remedied within 30 days after the earlier of
      (i) the date on which such default shall first become known to any officer
      of the Borrower or (ii) written notice of such default is given to the
      Borrower by the Administrative Agent;

     

    (d)any
      representation or warranty made herein or in any other Loan Document or in
      any
      certificate delivered to the Administrative Agent or the Lenders pursuant hereto
      or thereto or in connection with any transaction contemplated hereby or thereby
      proves untrue in any material respect as of the date of the issuance or making
      or deemed making thereof;

     

    (e)any
      event occurs or condition exists (other than those described in
      subsections (a) through (d) above) which is specified as an event of
      default under any of the other Loan Documents, or any of the Loan Documents
      shall for any reason not be or shall cease to be in full force and effect or
      is
      declared to be null and void, or any of the Collateral Documents shall for
      any
      reason fail to create a valid and perfected first priority Lien in favor of
      the
      Administrative Agent in any Collateral purported to be covered thereby except
      as
      expressly permitted by the terms thereof, or any Subsidiary takes any action
      for
      the purpose of terminating, repudiating or rescinding any Loan Document executed
      by it or any of its obligations thereunder;

     

    (f)default
      shall occur under any (i) Indebtedness of the Borrower or any of its
      Subsidiaries aggregating in excess of $1,000,000, or under any indenture,
      agreement or other instrument under which the same may be issued, and such
      default shall continue for a period of time sufficient to permit the
      acceleration of the maturity of any such Indebtedness (whether or not such
      maturity is in fact accelerated), or any such Indebtedness shall not be paid
      when due (whether by demand, lapse of time, acceleration or otherwise) after
      giving effect to applicable grace or cure periods, if any, or (ii) any
      Hedge Agreement of the Borrower or any of its Subsidiaries with any Lender
      or
      any Affiliate of a Lender;

     

    
      
        
        

      

      
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    (g)any
      final judgment or judgments, writ or writs or warrant or warrants of attachment,
      or any similar process or processes, shall be entered or filed against the
      Borrower or any of its Subsidiaries, or against any of its Property, in an
      aggregate amount in excess of $1,000,000 (except to the extent fully and
      unconditionally covered by insurance pursuant to which the insurer has accepted
      liability therefor in writing and except to the extent fully and unconditionally
      covered by an appeal bond, for which the Borrower or such Subsidiary has
      established in accordance with GAAP a cash or Cash Equivalent reserve in the
      amount of such judgment, writ or warrant), and which remains undischarged,
      unvacated, unbonded or unstayed for a period of 30 days;

     

    (h)the
      Borrower or any of its Subsidiaries, or any member of its Controlled Group,
      shall fail to pay when due an amount or amounts aggregating in excess of
      $1,000,000 which it shall have become liable to pay to the PBGC or to a Plan
      under Title IV of ERISA; or notice of intent to terminate a Plan or Plans
      having aggregate Unfunded Vested Liabilities in excess of $1,000,000
      (collectively, a “Material Plan”) shall be filed under Title IV of
      ERISA by the Borrower or any of its Subsidiaries, or any other member of its
      Controlled Group, any plan administrator or any combination of the foregoing;
      or
      the PBGC shall institute proceedings under Title IV of ERISA to terminate
      or to cause a trustee to be appointed to administer any Material Plan or a
      proceeding shall be instituted by a fiduciary of any Material Plan against
      the
      Borrower or any of its Subsidiaries, or any member of its Controlled Group,
      to
      enforce Section 515 or 4219(c)(5) of ERISA and such proceeding shall not
      have been dismissed within 30 days thereafter; or a condition shall exist by
      reason of which the PBGC would be entitled to obtain a decree adjudicating
      that
      any Material Plan must be terminated; 

     

    (i)any
      Change of Control shall occur;

     

    (j)the
      Borrower or any of its Subsidiaries shall (i) have entered involuntarily
      against it an order for relief under the United States Bankruptcy Code, as
      amended, (ii) not pay, or admit in writing its inability to pay, its debts
      generally as they become due, (iii) make an assignment for the benefit of
      creditors, (iv) apply for, seek, consent to or acquiesce in, the
      appointment of a receiver, custodian, trustee, examiner, liquidator or similar
      official for it or any substantial part of its Property, (v) institute any
      proceeding seeking to have entered against it an order for relief under the
      United States Bankruptcy Code, as amended, to adjudicate it insolvent, or
      seeking dissolution, winding up, liquidation, reorganization, arrangement,
      adjustment or composition of it or its debts under any law relating to
      bankruptcy, insolvency or reorganization or relief of debtors or fail to file
      an
      answer or other pleading denying the material allegations of any such proceeding
      filed against it, (vi) take any action in furtherance of any matter
      described in parts (i) through (v) above, or (vii) fail to contest in
      good faith any appointment or proceeding described in Section 7.1(k)
      hereof; or

     

    (k)a
      custodian, receiver, trustee, examiner, liquidator or similar official shall
      be
      appointed for the Borrower or any of its Subsidiaries, or any substantial part
      of any of its Property, or a proceeding described in Section 7.1(j)(v)
      shall be instituted against the Borrower or any Subsidiary, and such appointment
      continues undischarged or such proceeding continues undismissed or unstayed
      for
      a period of 60 days.

     

    
      
        
        

      

      
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    Section 7.2.Non-Bankruptcy
      Defaults.  When any Event of Default other than those described
      in subsection (j) or (k) of Section 7.1 hereof has occurred and is
      continuing, the Administrative Agent shall, by written notice to the
      Borrower:  (a) if so directed by the Required Lenders, terminate
      the remaining Commitments and all other obligations of the Lenders hereunder
      on
      the date stated in such notice (which may be the date thereof); (b) if so
      directed by the Required Lenders, declare the principal of and the accrued
      interest on all outstanding Loans to be forthwith due and payable and thereupon
      all outstanding Loans, including both principal and interest thereon, shall
      be
      and become immediately due and payable together with all other amounts payable
      under the Loan Documents without further demand, presentment, protest or notice
      of any kind; and (c) if so directed by the Required Lenders, demand that
      the Borrower immediately pay to the Administrative Agent the full amount then
      available for drawing under each or any Letter of Credit, and the Borrower
      agrees to immediately make such payment and acknowledges and agrees that the
      Lenders would not have an adequate remedy at law for failure by the Borrower
      to
      honor any such demand and that the Administrative Agent, for the benefit of
      the
      Lenders, shall have the right to require the Borrower to specifically perform
      such undertaking whether or not any drawings or other demands for payment have
      been made under any Letter of Credit.  The Administrative Agent, after
      giving notice to the Borrower pursuant to Section 7.1(c) or this
      Section 7.2, shall also promptly send a copy of such notice to the other
      Lenders, but the failure to do so shall not impair or annul the effect of such
      notice.

     

    Section 7.3.Bankruptcy
      Defaults.  When any Event of Default described in
      subsections (j) or (k) of Section 7.1 hereof has occurred and is
      continuing, then all outstanding Loans shall immediately become due and payable
      together with all other amounts payable under the Loan Documents without
      presentment, demand, protest or notice of any kind, the Commitments and any
      and
      all other obligations of the Lenders to extend further credit pursuant to any
      of
      the terms hereof shall immediately terminate and the Borrower shall immediately
      pay to the Administrative Agent the full amount then available for drawing
      under
      all outstanding Letters of Credit, the Borrower acknowledging and agreeing
      that
      the Lenders would not have an adequate remedy at law for failure by the Borrower
      to honor any such demand and that the Lenders, and the Administrative Agent
      on
      their behalf, shall have the right to require the Borrower to specifically
      perform such undertaking whether or not any draws or other demands for payment
      have been made under any of the Letters of Credit.

     

    Section 7.4.Collateral
      for Undrawn Letters of Credit.  (a) If the prepayment of the
      amount available for drawing under any or all outstanding Letters of Credit
      is
      required under Section 2.8(b) or under Section 7.2 or 7.3 above, the
      Borrower shall forthwith pay the amount required to be so prepaid, to be held
      by
      the Administrative Agent as provided in subsection (b) below.

     

    (b)All
      amounts prepaid pursuant to subsection (a) above shall be held by the
      Administrative Agent in one or more separate collateral accounts (each such
      account, and the credit balances, properties, and any investments from time
      to
      time held therein, and any substitutions for such account, any certificate
      of
      deposit or other instrument evidencing any of the foregoing and all proceeds
      of
      and earnings on any of the foregoing being collectively called the
“Collateral Account”) as security for, and for application by the
      Administrative Agent (to the extent available) to, the reimbursement of any
      payment under any Letter of Credit then or thereafter made by the
      L/C Issuer, and to the payment of the unpaid balance of any other
      Obligations.  The Collateral Account shall be held in the name of and
      subject to the exclusive dominion and control of the Administrative Agent for
      the benefit of the Administrative Agent, the Lenders, and the
      L/C Issuer.  If and when requested by the Borrower, the
      Administrative Agent shall invest funds held in the Collateral Account from
      time
      to time in direct obligations of, or obligations the principal of and interest
      on which are unconditionally guaranteed by, the United States of America with
      a
      remaining maturity of one year or less, provided that the
      Administrative Agent is irrevocably authorized to sell investments held in
      the
      Collateral Account when and as required to make payments out of the Collateral
      Account for application to amounts due and owing from the Borrower to the
      L/C Issuer, the Administrative Agent or the Lenders; provided,
      however, that if (i) the Borrower shall have made payment of all such
      obligations referred to in subsection (a) above, (ii) all relevant
      preference or other disgorgement periods relating to the receipt of such
      payments have passed, and (iii) no Letters of Credit, Commitments, Loans or
      other Obligations remain outstanding hereunder, then the Administrative Agent
      shall release to the Borrower any remaining amounts held in the Collateral
      Account.

     

    
      
        
        

      

      
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    Section 7.5.Notice
      of Default.  The Administrative Agent shall give notice to the
      Borrower under Section 7.1(c) hereof promptly upon being requested to do so
      by any Lender and shall at such time also notify all the Lenders
      thereof.

     

    Section 7.6.Expenses.  The
      Borrower agrees to pay to the Administrative Agent and each Lender, and any
      other holder of any Note outstanding hereunder, all costs and expenses
      reasonably incurred or paid by the Administrative Agent and such Lender or
      any
      such holder, including reasonable attorneys’ fees and court costs, in connection
      with any Default or Event of Default by the Borrower hereunder or in connection
      with the enforcement of any of the Loan Documents (including all such costs
      and
      expenses incurred in connection with any proceeding under the United States
      Bankruptcy Code involving the Borrower or any of its Subsidiaries as a debtor
      thereunder).

     

    
      	
               

            	
              Section 8.Change
                in Circumstances and Contingencies.

            

    

     

    Section 8.1.Funding
      Indemnity.  If any Lender shall incur any loss, cost or expense
      (including, without limitation, any loss of profit, and any loss, cost or
      expense incurred by reason of the liquidation or re-employment of deposits
      or
      other funds acquired by such Lender to fund or maintain any Eurodollar Loan
      or
      Swing Loan or the relending or reinvesting of such deposits or amounts paid
      or
      prepaid to such Lender or by reason of breakage of interest rate swap agreements
      or the liquidation of other hedging contracts or agreements) as a result
      of:

     

    (a)any
      payment, prepayment or conversion of a Eurodollar Loan or Swing Loan on a date
      other than the last day of its Interest Period,

     

    
      
        
        

      

      
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    (b)any
      failure (because of a failure to meet the conditions of Section 3 or
      otherwise) by the Borrower to borrow or continue a Eurodollar Loan or Swing
      Loan, or to convert a Base Rate Loan into a Eurodollar Loan or Swing Loan,
      on
      the date specified in a notice given pursuant to Section 2.5(a)
      hereof,

     

    (c)any
      failure by the Borrower to make any payment of principal on any Eurodollar
      Loan
      or Swing Loan when due (whether by acceleration or otherwise), or

     

    (d)any
      acceleration of the maturity of a Eurodollar Loan or Swing Loan as a result
      of
      the occurrence of any Event of Default hereunder,

     

    then,
      upon the demand of such Lender, the Borrower shall pay to such Lender such
      amount as will reimburse such Lender for such loss, cost or
      expense.  If any Lender makes such a claim for compensation, it shall
      provide to the Borrower, with a copy to the Administrative Agent, a certificate
      setting forth the amount of such loss, cost or expense in reasonable detail
      (including an explanation of the basis for and the computation of such loss,
      cost or expense) and the amounts shown on such certificate shall be conclusive
      absent manifest error.

     

    Section 8.2.Illegality.  Notwithstanding
      any other provisions of this Agreement or any other Loan Document, if at any
      time any change in applicable law, rule or regulation or in the interpretation
      thereof makes it unlawful for any Lender to make or continue to maintain any
      Eurodollar Loans or to perform its obligations as contemplated hereby, such
      Lender shall promptly give notice thereof to the Borrower and the Administrative
      Agent and such Lender’s obligations to make or maintain Eurodollar Loans under
      this Agreement shall be suspended until it is no longer unlawful for such Lender
      to make or maintain Eurodollar Loans.  The Borrower shall prepay on
      demand the outstanding principal amount of any such affected Eurodollar Loans,
      together with all interest accrued thereon and all other amounts then due and
      payable to such Lender under this Agreement; provided, however, subject
      to all of the terms and conditions of this Agreement, the Borrower may then
      elect to borrow the principal amount of the affected Eurodollar Loans from
      such
      Lender by means of Base Rate Loans from such Lender, which Base Rate Loans
      shall
      not be made ratably by the Lenders but only from such affected
      Lender.

     

    Section 8.3.Unavailability
      of Deposits or Inability to Ascertain, or Inadequacy of,
      LIBOR.  If on or prior to the first day of any Interest Period
      for any Borrowing of Eurodollar Loans:

     

    (a)the
      Administrative Agent determines that deposits in Dollars (in the applicable
      amounts) are not being offered to it in the interbank eurodollar market for
      such
      Interest Period, or that by reason of circumstances affecting the interbank
      eurodollar market adequate and reasonable means do not exist for ascertaining
      the applicable LIBOR, or

     

    (b)the
      Required Lenders advise the Administrative Agent that (i) LIBOR as determined
      by
      the Administrative Agent will not adequately and fairly reflect the cost to
      such
      Lenders of funding their Eurodollar Loans for such Interest Period or (ii)
      that
      the making or funding of Eurodollar Loans become impracticable,

     

    
      
        
        

      

      
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    then
      the
      Administrative Agent shall forthwith give notice thereof to the Borrower and
      the
      Lenders, whereupon until the Administrative Agent notifies the Borrower that
      the
      circumstances giving rise to such suspension no longer exist, the obligations
      of
      the Lenders to make Eurodollar Loans shall be suspended.

     

    Section 8.4.Yield
      Protection.  (a) If, on or after the date hereof, the
      adoption of any applicable law, rule or regulation, or any change therein,
      or
      any change in the interpretation or administration thereof by any Governmental
      Authority charged with the interpretation or administration thereof, or
      compliance by any Lender (or its Lending Office) with any request or directive
      (whether or not having the force of law) of any such Governmental
      Authority:

     

    (i)shall
      subject any Lender (or its Lending Office) to any tax, duty or other charge
      with
      respect to its Eurodollar Loans, its Notes, its Letter(s) of Credit, or its
      participation in any thereof, any Reimbursement Obligations owed to it or its
      obligation to make Eurodollar Loans, issue a Letter of Credit, or to participate
      therein, or shall change the basis of taxation of payments to any Lender (or
      its
      Lending Office) of the principal of or interest on its Eurodollar Loans,
      Letter(s) of Credit, or participations therein or any other amounts due under
      this Agreement or any other Loan Document in respect of its Eurodollar Loans,
      Letter(s) of Credit, any participation therein, any Reimbursement Obligations
      owed to it, or its obligation to make Eurodollar Loans, or issue a Letter of
      Credit, or acquire participations therein (except for changes in the rate of
      tax
      on the overall net income of such Lender or its Lending Office imposed by the
      jurisdiction in which such Lender’s principal executive office or Lending Office
      is located); or

     

    (ii)shall
      impose, modify or deem applicable any reserve, special deposit or similar
      requirement (including, without limitation, any such requirement imposed by
      the
      Board of Governors of the Federal Reserve System, but excluding with respect
      to
      any Eurodollar Loans any such requirement included in an applicable Reserve
      Percentage) against assets of, deposits with or for the account of, or credit
      extended by, any Lender (or its Lending Office) or shall impose on any Lender
      (or its Lending Office) or on the interbank market any other condition affecting
      its Eurodollar Loans, its Notes, its Letter(s) of Credit, or its participation
      in any thereof, any Reimbursement Obligation owed to it, or its obligation
      to
      make Eurodollar Loans, or to issue a Letter of Credit, or to participate
      therein;

     

    and
      the
      result of any of the foregoing is to increase the cost to such Lender (or its
      Lending Office) of making or maintaining any Eurodollar Loan, issuing or
      maintaining a Letter of Credit, or participating therein, or to reduce the
      amount of any sum received or receivable by such Lender (or its Lending Office)
      under this Agreement or under any other Loan Document with respect thereto,
      by
      an amount deemed by such Lender to be material, then, within 15 days after
      demand by such Lender (with a copy to the Administrative Agent), the Borrower
      shall be obligated to pay to such Lender such additional amount or amounts
      as
      will compensate such Lender for such increased cost or reduction.

     

    
      
        
        

      

      
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    (b)If,
      after the date hereof, any Lender or the Administrative Agent shall have
      determined 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 charged with the
      interpretation or administration thereof, or compliance by any Lender (or its
      Lending Office) or any corporation controlling such Lender with any request
      or
      directive regarding capital adequacy (whether or not having the force of law)
      of
      any such Governmental Authority has had the effect of reducing the rate of
      return on such Lender’s or such corporation’s capital as a consequence of its
      obligations hereunder to a level below that which such Lender or such
      corporation could have achieved but for such adoption, change or compliance
      (taking into consideration such Lender’s or such corporation’s policies with
      respect to capital adequacy) by an amount deemed by such Lender to be material,
      then from time to time, within 15 days after demand by such Lender (with a
      copy to the Administrative Agent), the Borrower shall pay to such Lender such
      additional amount or amounts as will compensate such Lender for such
      reduction.

     

    (c)A
      certificate of a Lender claiming compensation under this Section 8.4 and
      setting forth the additional amount or amounts to be paid to it hereunder shall
      be conclusive absent manifest error.  In determining such amount, such
      Lender may use any reasonable averaging and attribution methods.

     

    Section 8.5.Substitution
      of Lenders.  Upon the receipt by the Borrower of (a) a claim
      from any Lender for compensation under Section 8.4 or 10.1 hereof,
      (b) notice by any Lender to the Borrower of any illegality pursuant to
      Section 8.2 hereof or (c) in the event any Lender is in default in any
      material respect with respect to its obligations under the Loan Documents (any
      such Lender referred to in clause (a), (b) or (c) above being hereinafter
      referred to as an “Affected Lender”), the Borrower may, in addition to
      any other rights the Borrower may have hereunder or under applicable law,
      require, at its expense, any such Affected Lender to assign, at par plus accrued
      interest and fees, without recourse, all of its interest, rights, and
      obligations hereunder (including all of its Commitments and the Loans and
      participation interests in Letters of Credit and other amounts at any time
      owing
      to it hereunder and the other Loan Documents) to an Eligible Assignee specified
      by the Borrower, provided that (i) such assignment shall not
      conflict with or violate any law, rule or regulation or order of any
      Governmental Authority, (ii) if the assignment to a Person other than a
      Lender, the Borrower shall have received the written consent of the
      Administrative Agent and the L/C Issuer, which consents shall not be
      unreasonably withheld, to such assignment, (iii) the Borrower shall have
      paid to the Affected Lender all monies (together with amounts due such Affected
      Lender under Section 8.1 hereof as if the Loans owing to it were prepaid
      rather than assigned) other than principal owing to it hereunder, and
      (iv) the assignment is entered into in accordance with the other
      requirements of Section 10.10 hereof.

     

    Section 8.6.Lending
      Offices.  Each Lender may, at its option, elect to make its Loans
      hereunder at the branch, office or affiliate specified on the appropriate
      signature page hereof (each a “Lending Office”) for each type of Loan
      available hereunder or at such other of its branches, offices or affiliates
      as
      it may from time to time elect and designate in a written notice to the Borrower
      and the Administrative Agent.  To the extent reasonably possible, a
      Lender shall designate an alternative branch or funding office with respect
      to
      its Eurodollar Loans to reduce any liability of the Borrower to such Lender
      under Section 8.4 hereof or to avoid the unavailability of Eurodollar Loans
      under Section 8.3 hereof, so long as such designation is not
      disadvantageous to the Lender.

     

    
      
        
        

      

      
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    Section 8.7.Discretion
      of Lender as to Manner of Funding.  Notwithstanding any other
      provision of this Agreement, each Lender shall be entitled to fund and maintain
      its funding of all or any part of its Loans in any manner it sees fit, it being
      understood, however, that for the purposes of this Agreement all determinations
      hereunder with respect to Eurodollar Loans shall be made as if each Lender
      had
      actually funded and maintained each Eurodollar Loan through the purchase of
      deposits in the interbank eurodollar market having a maturity corresponding
      to
      such Loan’s Interest Period, and bearing an interest rate equal to LIBOR for
      such Interest Period.

     

    
      	
               

            	
              Section 9.The
                Administrative Agent.

            

    

     

    Section 9.1.Appointment
      and Authorization of Administrative Agent.  Each Lender hereby
      appoints Fifth Third Bank, an Ohio banking corporation, as the Administrative
      Agent under the Loan Documents and hereby authorizes the Administrative Agent
      to
      take such action as Administrative Agent on its behalf and to exercise such
      powers under the Loan Documents as are delegated to the Administrative Agent
      by
      the terms thereof, together with such powers as are reasonably incidental
      thereto.  Notwithstanding the use of the word “Administrative Agent”
as a defined term, the Lenders expressly agree that the Administrative Agent
      is
      not acting as a fiduciary of any Lender in respect of the Loan Documents, the
      Borrower or otherwise, and nothing herein or in any of the other Loan Documents
      shall result in any duties or obligations on the Administrative Agent or any
      of
      the Lenders except as expressly set forth herein.  

     

    Section 9.2.Administrative
      Agent and its Affiliates.  The Administrative Agent shall have
      the same rights and powers under this Agreement and the other Loan Documents
      as
      any other Lender and may exercise or refrain from exercising such rights and
      power as though it were not the Administrative Agent, and the Administrative
      Agent and its affiliates may accept deposits from, lend money to, and generally
      engage in any kind of business with the Borrower or any Affiliate of the
      Borrower as if it were not the Administrative Agent under the Loan
      Documents.  The term “Lender” as used herein and in all other
      Loan Documents, unless the context otherwise clearly requires, includes the
      Administrative Agent in its individual capacity as a
      Lender.  References in Section 2 hereof to the Administrative
      Agent’s Loans, or to the amount owing to the Administrative Agent for which an
      interest rate is being determined, refer to the Administrative Agent in its
      individual capacity as a Lender.

     

    Section 9.3.Action
      by Administrative Agent.  If the Administrative Agent receives
      from the Borrower a written notice of an Event of Default pursuant to
      Section 6.1 hereof, the Administrative Agent shall promptly give each of
      the Lenders written notice thereof.  Without limiting the generality
      of the foregoing, the Administrative Agent shall not be required to take any
      action hereunder with respect to any Default or Event of Default, except as
      expressly provided in the Loan Documents.  Upon the occurrence of an
      Event of Default, the Administrative Agent shall take such action to enforce
      its
      Lien on the Collateral and to preserve and protect the Collateral as may be
      directed by the Required Lenders.  Unless and until the Required
      Lenders give such direction, the Administrative Agent may (but shall not be
      obligated to) take or refrain from taking such actions as it deems appropriate
      and in the best interest of all the Lenders.  In no event, however,
      shall the Administrative Agent be required to take any action in violation
      of
      applicable law or of any provision of any Loan Document, and the Administrative
      Agent shall in all cases be fully justified in failing or refusing to act
      hereunder or under any other Loan Document unless it first receives any further
      assurances of its indemnification from the Lenders that it may require,
      including prepayment of any related expenses and any other protection it
      requires against any and all costs, expense, and liability which may be incurred
      by it by reason of taking or continuing to take any such action.  The
      Administrative Agent shall be entitled to assume that no Default or Event of
      Default exists unless notified in writing to the contrary by a Lender or the
      Borrower.  In all cases in which the Loan Documents do not require the
      Administrative Agent to take specific action, the Administrative Agent shall
      be
      fully justified in using its discretion in failing to take or in taking any
      action thereunder.  Any instructions of the Required Lenders, or of
      any other group of Lenders called for under the specific provisions of the
      Loan
      Documents, shall be binding upon all the Lenders and the holders of the
      Obligations.  

     

    
      
        
        

      

      
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    Section 9.4.Consultation
      with Experts.  The Administrative Agent may consult with legal
      counsel, 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.

     

    Section 9.5.Liability
      of Administrative Agent; Credit Decision.  Neither the
      Administrative Agent nor any of its directors, officers, agents or employees
      shall be liable for any action taken or not taken by it in connection with
      the
      Loan Documents:  (i) with the consent or at the request of the
      Required Lenders or (ii) in the absence of its own bad faith, gross
      negligence or willful misconduct.  Neither the Administrative Agent
      nor any of its directors, officers, agents or employees shall be responsible
      for
      or have any duty to ascertain, inquire into or verify:  (i) any
      statement, warranty or representation made in connection with this Agreement,
      any other Loan Document or any Credit Event; (ii) the performance or
      observance of any of the covenants or agreements of the Borrower or any
      Subsidiary contained herein or in any other Loan Document; (iii) the
      satisfaction of any condition specified in Section 3 hereof, except receipt
      of items required to be delivered to the Administrative Agent; or (iv) the
      validity, effectiveness, genuineness, enforceability, perfection, value, worth
      or collectibility hereof or of any other Loan Document or of any other documents
      or writing furnished in connection with any Loan Document or of any Collateral;
      and the Administrative Agent makes no representation of any kind or character
      with respect to any such matter mentioned in this sentence.  The
      Administrative Agent may execute any of its duties under any of the Loan
      Documents by or through employees, agents, and attorneys-in-fact and shall
      not
      be answerable to the Lenders, the Borrower, or any other Person for the default
      or misconduct of any such agents or attorneys-in-fact selected with reasonable
      care.  The Administrative Agent shall not incur any liability by
      acting in reliance upon any notice, consent, certificate, other document or
      statement (whether written or oral) believed by it to be genuine or to be sent
      by the proper party or parties.  In particular and without limiting
      any of the foregoing, the Administrative Agent shall have no responsibility
      for
      confirming the accuracy of any compliance certificate or other document or
      instrument received by it under the Loan Documents.  The
      Administrative Agent may treat the payee of any Note as the holder thereof
      until
      written notice of transfer shall have been filed with the Administrative Agent
      signed by such payee in form satisfactory to the Administrative
      Agent.  Each Lender acknowledges that it has independently and without
      reliance on the Administrative Agent or any other Lender, and based upon such
      information, investigations and inquiries as it deems appropriate, made its
      own
      credit analysis and decision to extend credit to the Borrower in the manner
      set
      forth in the Loan Documents.  It shall be the responsibility of each
      Lender to keep itself informed as to the creditworthiness of the Borrower and
      its Subsidiaries, and the Administrative Agent shall have no liability to any
      Lender with respect thereto.

     

    
      
        
        

      

      
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    Section 9.6.Indemnity.  The
      Lenders shall ratably, in accordance with their respective Percentages,
      indemnify and hold the Administrative Agent, and its directors, officers,
      employees, agents, and representatives harmless from and against any
      liabilities, losses, costs or expenses suffered or incurred by it under any
      Loan
      Document or in connection with the transactions contemplated thereby, regardless
      of when asserted or arising, except to the extent they are promptly reimbursed
      for the same by the Borrower and except to the extent that any event giving
      rise
      to a claim was caused by the bad faith, gross negligence or willful misconduct
      of the party seeking to be indemnified.  The obligations of the
      Lenders under this Section shall survive termination of this
      Agreement.  The Administrative Agent shall be entitled to offset
      amounts received for the account of a Lender under this Agreement against unpaid
      amounts due from such Lender to the Administrative Agent hereunder (whether
      as
      fundings of participations, indemnities or otherwise), but shall not be entitled
      to offset against amounts owed to the Administrative Agent by any Lender arising
      outside of this Agreement and the other Loan Documents.

     

    Section 9.7.Resignation
      of Administrative Agent and Successor Administrative Agent.  The
      Administrative Agent may resign at any time by giving written notice thereof
      to
      the Lenders and the Borrower.  Upon any such resignation of the
      Administrative Agent, the Required Lenders shall have the right to appoint
      a
      successor Administrative Agent.  If no successor Administrative Agent
      shall have been so appointed by the Required Lenders, and shall have accepted
      such appointment, within 30 days after the retiring Administrative Agent’s
      giving of notice of resignation then the retiring Administrative Agent may,
      on
      behalf of the Lenders, appoint a successor Administrative Agent, which may
      be
      any Lender hereunder or any commercial bank organized under the laws of the
      United States of America or of any State thereof and having a combined capital
      and surplus of at least $200,000,000.  Upon the acceptance of its
      appointment as the Administrative Agent hereunder, such successor Administrative
      Agent shall thereupon succeed to and become vested with all the rights and
      duties of the retiring Administrative Agent under the Loan Documents, and the
      retiring Administrative Agent shall be discharged from its duties and
      obligations thereunder.  After any retiring Administrative Agent’s
      resignation hereunder as Administrative Agent, the provisions of this
      Section 9 and all protective provisions of the other Loan Documents shall
      inure to its benefit as to any actions taken or omitted to be taken by it while
      it was Administrative Agent, but no successor Administrative Agent shall in
      any
      event be liable or responsible for any actions of its
      predecessor.  

     

    Section 9.8.L/C
      Issuer.  The L/C Issuer shall act on behalf of the Lenders
      with respect to any Letters of Credit issued by it and the documents associated
      therewith.  The L/C Issuer shall have all of the benefits and
      immunities (i) provided to the Administrative Agent in this Section 9
      with respect to any acts taken or omissions suffered by the L/C Issuer in
      connection with Letters of Credit issued by it or proposed to be issued by
      it
      and the Applications pertaining to such Letters of Credit as fully as if the
      term “Administrative Agent”, as used in this Section 9, included the
      L/C Issuer with respect to such acts or omissions and (ii) as
      additionally provided in this Agreement with respect to such
      L/C Issuer.

     

    
      
        
        

      

      
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    Section 9.9.Hedging
      Liability and Funds Transfer and Deposit Account Liability
      Arrangements.  By virtue of a Lender’s execution of this
      Agreement or an assignment agreement pursuant to Section 10.10 hereof, as
      the case may be, any Affiliate of such Lender with whom the Borrower or any
      Subsidiary has entered into an agreement creating Hedging Liability or Funds
      Transfer and Deposit Account Liability shall be deemed a Lender party hereto
      for
      purposes of any reference in a Loan Document to the parties for whom the
      Administrative Agent is acting, it being understood and agreed that the rights
      and benefits of such Affiliate under the Loan Documents consist exclusively
      of
      such Affiliate’s right to share in payments and collections out of the
      Collateral and the Guaranties as more fully set forth in Section 2.9 and
      Section 4 hereof.  In connection with any such distribution of
      payments and collections, the Administrative Agent shall be entitled to assume
      no amounts are due to any Lender or its Affiliate with respect to Hedging
      Liability or Funds Transfer and Deposit Account Liability unless such Lender
      has
      notified the Administrative Agent in writing of the amount of any such liability
      owed to it or its Affiliate prior to such distribution.

     

    Section 9.10.Designation
      of Additional Administrative Agents.  The Administrative Agent
      shall have the continuing right, for purposes hereof, at any time and from
      time
      to time to designate one or more of the Lenders (and/or its or their Affiliates)
      as “syndication agents,” “documentation agents,” “arrangers” or other
      designations for purposes hereto, but such designation shall have no substantive
      effect, and such Lenders and their Affiliates shall have no additional powers,
      duties or responsibilities as a result thereof.

     

    Section 9.11.Authorization
      to Enter into, and Enforcement of, the Collateral Documents.  The
      Administrative Agent is hereby irrevocably authorized by each of the Lenders
      to
      execute and deliver the Collateral Documents on behalf of each of the Lenders
      and their Affiliates and to take such action and exercise such powers under
      the
      Collateral Documents as the Administrative Agent considers appropriate,
provided the Administrative Agent shall not amend the Collateral
      Documents unless such amendment is agreed to in writing by the Required
      Lenders.  Each Lender acknowledges and agrees that it will be bound by
      the terms and conditions of the Collateral Documents upon the execution and
      delivery thereof by the Administrative Agent.  Except as otherwise
      specifically provided for herein, no Lender (or its Affiliates) other than
      the
      Administrative Agent shall have the right to institute any suit, action or
      proceeding in equity or at law for the foreclosure or other realization upon
      any
      Collateral or for the execution of any trust or power in respect of the
      Collateral or for the appointment of a receiver or for the enforcement of any
      other remedy under the Collateral Documents; it being understood and intended
      that no one or more of the Lenders (or their Affiliates) shall have any right
      in
      any manner whatsoever to affect, disturb or prejudice the Lien of the
      Administrative Agent (or any security trustee therefor) under the Collateral
      Documents by its or their action or to enforce any right thereunder, and that
      all proceedings at law or in equity shall be instituted, had, and maintained
      by
      the Administrative Agent (or its security trustee) in the manner provided for
      in
      the relevant Collateral Documents for the benefit of the Lenders and their
      Affiliates.

     

    Section 9.12.Authorization
      to Release Liens and Limit Amount of Certain Claims.  The
      Administrative Agent is hereby irrevocably authorized by each of the Lenders
      to
      release any Lien covering any Property of the Borrower or its Subsidiaries
      that
      is the subject of a disposition that is permitted by this Agreement or that
      has
      been consented to in accordance with Section 10.13. 

     

    
      	
               

            	
              Section 10.Miscellaneous.

            

    

     

    
      
        
        

      

      
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    Section 10.1.Withholding
      Taxes.  (a) Payments Free of
      Withholding.  Except as otherwise required by law and subject to
      Section 10.1(b) hereof, each payment by the Borrower under this Agreement
      or the other Loan Documents shall be made without withholding or deduction
      for
      or on account of any present or future taxes (other than overall net income
      taxes on the recipient imposed by the jurisdiction in which its principal
      executive office or Lending Office is located) imposed by or within the
      jurisdiction in which the Borrower is domiciled, any jurisdiction from which
      the
      Borrower or any other Person on behalf of the Borrower makes any payment, or
      (in
      each case) any political subdivision or taxing authority thereof or
      therein.  If any such withholding is so required, the Borrower shall
      make the withholding or deduction, pay the amount withheld to the appropriate
      Governmental Authority before penalties attach thereto or interest accrues
      thereon and forthwith pay such additional amount as may be necessary to ensure
      that the net amount actually received by each Lender and the Administrative
      Agent free and clear of such taxes (including such taxes on such additional
      amount) is equal to the amount which that Lender or the Administrative Agent
      (as
      the case may be) would have received had such withholding not been
      made.  If the Administrative Agent or any Lender pays any amount in
      respect of any such taxes, penalties or interest, the Borrower shall reimburse
      the Administrative Agent or such Lender for that payment on demand in the
      currency in which such payment was made.  If the Borrower pays any
      such taxes, penalties or interest, it shall deliver official tax receipts
      evidencing that payment or certified copies thereof to the Lender or
      Administrative Agent on whose account such withholding was made (with a copy
      to
      the Administrative Agent if not the recipient of the original) on or before
      the
      thirtieth day after payment.

     

    (b)U.S.
      Withholding Tax Exemptions.  Each Lender that is not a United
      States person (as such term is defined in Section 7701(a)(30) of the Code)
      shall submit to the Borrower and the Administrative Agent on or before the
      date
      the initial Credit Event is made hereunder or, if later, the date such financial
      institution becomes a Lender hereunder, two duly completed and signed copies
      of
      (i) either Form W-8 BEN (relating to such Lender and entitling it to a
      complete exemption from withholding under the Code on all amounts to be received
      by such Lender, including fees, pursuant to the Loan Documents and the
      Obligations) or Form W-8 ECI (relating to all amounts to be received by
      such Lender, including fees, pursuant to the Loan Documents and the Obligations)
      of the United States Internal Revenue Service or (ii) solely if such Lender
      is
      claiming exemption from United States withholding tax under Section 871(h)
      or 881(c) of the Code with respect to payments of “portfolio interest”, a Form
      W-8 BEN, or any successor form prescribed by the Internal Revenue Service,
      and a certificate representing that such Lender is not a bank for purposes
      of
      Section 881(c) of the Code, is not a 10-percent shareholder (within the
      meaning of Section 871(h)(3)(B) of the Code) of the Borrower and is not a
      controlled foreign corporation related to the Borrower (within the meaning
      of
      Section 864(d)(4) of the Code).  Thereafter and from time to
      time, each such Lender shall submit to the Borrower and the Administrative
      Agent
      such additional duly completed and signed copies of one or the other of such
      Forms (or such successor forms as shall be adopted from time to time by the
      relevant United States taxing authorities) and such other certificates as
      may be (i) requested by the Borrower in a written notice, directly or
      through the Administrative Agent, to such Lender and (ii) required under
      then-current United States law or regulations to avoid or reduce United States
      withholding taxes on payments in respect of all amounts to be received by such
      Lender, including fees, pursuant to the Loan Documents or the
      Obligations.  Upon the request of the Borrower or the Administrative
      Agent, each Lender that is a United States person (as such term is defined
      in
      Section 7701(a)(30) of the Code) shall submit to the Borrower and the
      Administrative Agent a certificate to the effect that it is such a United States
      person.

     

    
      
        
        

      

      
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    (c)Inability
      of Lender to Submit Forms.  If any Lender determines, as a result
      of any change in applicable law, regulation or treaty, or in any official
      application or interpretation thereof, that it is unable to submit to the
      Borrower or the Administrative Agent any form or certificate that such Lender
      is
      obligated to submit pursuant to subsection (b) of this Section 10.1 or
      that such Lender is required to withdraw or cancel any such form or certificate
      previously submitted or any such form or certificate otherwise becomes
      ineffective or inaccurate, such Lender shall promptly notify the Borrower and
      Administrative Agent of such fact and the Lender shall to that extent not be
      obligated to provide any such form or certificate and will be entitled to
      withdraw or cancel any affected form or certificate, as applicable.

     

    Section 10.2.No
      Waiver, Cumulative Remedies.  No delay or failure on the part of
      the Administrative Agent or any Lender or on the part of the holder or holders
      of any of the Obligations in the exercise of any power or right under any Loan
      Document shall operate as a waiver thereof or as an acquiescence in any default,
      nor shall any single or partial exercise of any power or right preclude any
      other or further exercise thereof or the exercise of any other power or
      right.  The rights and remedies hereunder of the Administrative Agent,
      the Lenders and of the holder or holders of any of the Obligations are
      cumulative to, and not exclusive of, any rights or remedies which any of them
      would otherwise have.

     

    Section 10.3.Non-Business
      Days.  If any payment hereunder becomes due and payable on a day
      which is not a Business Day, the due date of such payment shall be extended
      to
      the next succeeding Business Day on which date such payment shall be due and
      payable.  In the case of any payment of principal falling due on a day
      which is not a Business Day, interest on such principal amount shall continue
      to
      accrue during such extension at the rate per annum then in effect, which accrued
      amount shall be due and payable on the next scheduled date for the payment
      of
      interest.

     

    Section 10.4.Documentary
      Taxes.  The Borrower agrees to pay on demand any documentary,
      stamp or similar taxes payable in respect of this Agreement or any other Loan
      Document, including interest and penalties, in the event any such taxes are
      assessed, irrespective of when such assessment is made and whether or not any
      credit is then in use or available hereunder.

     

    Section 10.5.Survival
      of Representations.  All representations and warranties made
      herein or in any other Loan Document or in certificates given pursuant hereto
      or
      thereto shall survive the execution and delivery of this Agreement and the
      other
      Loan Documents, and shall continue in full force and effect with respect to
      the
      date as of which they were made as long as any Lender or the L/C Issuer has
      any Commitment hereunder or any Obligations remain unpaid
      hereunder.

     

    
      
        
        

      

      
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    Section 10.6.Survival
      of Indemnities.  All indemnities and other provisions relative to
      reimbursement to the Lenders of amounts sufficient to protect the yield of
      the
      Lenders with respect to the Loans and Letters of Credit, including, but not
      limited to, Sections 8.1, 8.4, 10.4 and 10.13 hereof, shall survive the
      termination of this Agreement and the other Loan Documents and the payment
      of
      the Obligations.

     

    Section 10.7.Sharing
      of Set-Off.  Each Lender agrees with each other Lender a party
      hereto that if such Lender shall receive and retain any payment, whether by
      set-off or application of deposit balances or otherwise, on any of the Loans
      or
      Reimbursement Obligations in excess of its ratable share of payments on all
      such
      Obligations then outstanding to the Lenders, then such Lender shall purchase
      for
      cash at face value, but without recourse, ratably from each of the other Lenders
      such amount of the Loans or Reimbursement Obligations, or participations
      therein, held by each such other Lenders (or interest therein) as shall be
      necessary to cause such Lender to share such excess payment ratably with all
      the
      other Lenders; provided, however, that if any such purchase is made by
      any Lender, and if such excess payment or part thereof is thereafter recovered
      from such purchasing Lender, the related purchases from the other Lenders shall
      be rescinded ratably and the purchase price restored as to the portion of such
      excess payment so recovered, but without interest.  For purposes of
      this Section, amounts owed to or recovered by the L/C Issuer in connection
      with Reimbursement Obligations in which Lenders have been required to fund
      their
      participation shall be treated as amounts owed to or recovered by the
      L/C Issuer as a Lender hereunder.

     

    Section 10.8.Notices.  Except
      as otherwise specified herein, all notices hereunder and under the other Loan
      Documents shall be in writing (including, without limitation, notice by
      telecopy) and shall be given to the relevant party at its address or telecopier
      number set forth below, or such other address or telecopier number as such
      party
      may hereafter specify by notice to the Administrative Agent and the Borrower
      given by courier, by United States certified or registered mail, by telecopy
      or
      by other telecommunication device capable of creating a written record of such
      notice and its receipt.  Notices under the Loan Documents to any
      Lender shall be addressed to its address or telecopier number set forth on
      its
      Administrative Questionnaire; and notices under the Loans Documents to the
      Borrower or the Administrative Agent shall be addressed to their respective
      addresses or telecopier numbers set forth below:

    
      	
              to
                the Borrower:

              Champion
                Industries, Inc.

              2450
                First Avenue

              Huntington,
                West Virginia  25728

              Attention:Chief
                Financial Officer/Todd Fry

              Telephone:(304)
                528-5492

              Telecopy:(304)
                528-6765

            	
              to
                the Administrative Agent:

              Fifth
                Third Bank

              38
                Fountain Square Plaza

              Cincinnati,
                Ohio  45263

              Attention:Loan
                Syndications/Judy Huls

              Telephone:(513)
                579-4224

              Telecopy:(513)
                534-0875

            
	
              With
                a copy of any notice of any Default or Event of Default (which shall
                not
                constitute notice to the Borrower) to:

              Huddleston
                Bolen LLP

              611
                Third Avenue

              P.O.
                Box 2185

              Huntington,
                West Virginia  25722-2185

              Attention:Tom
                Murray

              Telephone:(304)
                691-8398

              Telecopy:(304)
                522-4312

            	
              and

              Fifth
                Third Bank

              600
                Superior Avenue East, 4th Floor

              MD
                A6514C

              Cleveland,
                Ohio  44114

              Attention:
                Structured Finance/Paul Schubert

              Telephone:(216)
                274-5484

              Telecopy:(216)
                274-5553

            

    

     

    
      
        
        

      

      
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    Each
      such
      notice, request or other communication shall be effective (i) if given by
      telecopier, when such telecopy is transmitted to the telecopier number specified
      in this Section or in the relevant Administrative Questionnaire and a
      confirmation of such telecopy has been received by the sender, (ii) if
      given by mail, 5 days after such communication is deposited in the mail,
      certified or registered with return receipt requested, addressed as aforesaid
      or
      (iii) if given by any other means, when delivered at the addresses
      specified in this Section or in the relevant Administrative Questionnaire;
      provided that any notice given pursuant to Section 2
      hereof shall be effective only upon receipt.

     

    (b)Electronic
      mail and internet and intranet websites may be used only to distribute routine
      communications, such as financial statements, and to distribute Loan Documents
      for execution by the parties thereto, and may not be used for any other
      purpose.

     

    Section 10.9.Counterparts.  This
      Agreement may be executed in any number of counterparts, and by the different
      parties hereto on separate counterpart signature pages, and all such
      counterparts taken together shall be deemed to constitute one and the same
      instrument.

     

    Section 10.10.Successors
      and Assigns; Assignments and
      Participations.  (a)  Successors and Assigns
      Generally.  The provisions of this Agreement shall be binding
      upon and inure to the benefit of the parties hereto and their respective
      successors and assigns permitted hereby, except that the Borrower may not assign
      or otherwise transfer any of its rights or obligations under any Loan Document
      without the prior written consent of the Administrative Agent and each Lender,
      and no Lender may assign or otherwise transfer any of its rights or obligations
      hereunder except (i) to an Eligible Assignee in accordance with the
      provisions of paragraph (b) of this Section, (ii) by way of
      participation in accordance with the provisions of paragraph (d) of this
      Section or (iii) by way of pledge or assignment of a security interest
      subject to the restrictions of paragraph (f) of this Section (and any other
      attempted assignment or transfer by any party hereto shall be null and
      void).  Nothing in this Agreement, expressed or implied, shall be
      construed to confer upon any Person (other than the parties hereto, their
      respective successors and assigns permitted hereby, Participants to the extent
      provided in paragraph (d) of this Section and, to the extent expressly
      contemplated hereby, the Related Parties of each of the Administrative Agent
      and
      the Lenders) any legal or equitable right, remedy or claim under or by reason
      of
      this Agreement.

     

    
      
        
        

      

      
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    (b)Assignments
      by Lenders.  Any Lender may at any time assign to one or more
      Eligible Assignees all or a portion of its rights and obligations under this
      Agreement (including all or a portion of its Commitment(s) and the Loans at
      the
      time owing to it); provided that

     

    (i)except
      in the case of an assignment of the entire remaining amount of the assigning
      Lender’s Commitment(s) and the Loans at the time owing to it or in the case of
      an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with
      respect to a Lender, the aggregate amount of the Commitment(s) (which for this
      purpose includes Loans outstanding thereunder) or, if the applicable Commitment
      is not then in effect, the principal outstanding balance of the Loans of the
      assigning Lender subject to each such assignment (determined as of the date
      the
      Assignment and Assumption with respect to such assignment is delivered to the
      Administrative Agent or, if “Trade Date” is specified in the Assignment
      and Assumption, as of the Trade Date) shall not be less than $5,000,000, in
      the
      case of any assignment in respect of the Revolving Credit, or $1,000,000, in
      the
      case of any assignment in respect of the Term Credit, unless each of the
      Administrative Agent and, so long as no Event of Default has occurred and is
      continuing, the Borrower otherwise consent (each such consent not to be
      unreasonably withheld or delayed);

     

    (ii)each
      partial assignment shall be made as an assignment of a proportionate part of
      all
      the assigning Lender’s rights and obligations under this Agreement with respect
      to the Credit or the Commitment assigned, except that this clause (ii)
      shall not prohibit any Lender from assigning all or a portion of its rights
      and
      obligations among separate Credit on a non-pro rata basis;

     

    (iii)any
      assignment of a Revolving Credit Commitment must be approved by the
      Administrative Agent, the L/C Issuer and (so long as no Event of Default
      has occurred and is continuing, the Borrower (each such approval not to be
      unreasonably withheld or delayed)) unless the Person that is the proposed
      assignee is itself a Lender with a Revolving Credit Commitment (whether or
      not
      the proposed assignee would otherwise qualify as an Eligible Assignee);
      and

     

    (iv)the
      parties to each assignment shall execute and deliver to the Administrative
      Agent
      an Assignment and Assumption, together with a processing and recordation fee
      of
      $3,500, and the Eligible Assignee, if it shall not be a Lender, shall deliver
      to
      the Administrative Agent an Administrative Questionnaire.

     

    Subject
      to acceptance and recording thereof by the Administrative Agent pursuant to
      paragraph (c) of this Section, from and after the effective date specified
      in each Assignment and Assumption, the Eligible Assignee thereunder shall be
      a
      party to this Agreement and, to the extent of the interest assigned by such
      Assignment and Assumption, have the rights and obligations of a Lender under
      this Agreement, and the assigning Lender thereunder shall, to the extent of
      the
      interest assigned by such Assignment and Assumption, be released from its
      obligations under this Agreement (and, in the case of an Assignment and
      Assumption covering all of the assigning Lender’s rights and obligations under
      this Agreement, such Lender shall cease to be a party hereto) but shall continue
      to be entitled to the benefits of Sections 8.4 and 10.11 with respect to
      facts and circumstances occurring prior to the effective date of such
      assignment.  Any assignment or transfer by a Lender of rights or
      obligations under this Agreement that does not comply with this paragraph shall
      be treated for purposes of this Agreement as a sale by such Lender of a
      participation in such rights and obligations in accordance with
      paragraph (d) of this Section.

     

    
      
        
        

      

      
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    (c)Register.  The
      Administrative Agent, acting solely for this purpose as an agent of the
      Borrower, shall maintain a copy of each Assignment and Assumption delivered
      to
      it and a register for the recordation of the names and addresses of the Lenders,
      and the Commitment(s) of, and principal amounts of the Loans owing to, each
      Lender pursuant to the terms hereof from time to time (the
“Register”).  The entries in the Register shall be
      conclusive, and the Borrower, the Administrative Agent and the Lenders may
      treat
      each Person whose name is recorded in the Register pursuant to the terms hereof
      as a Lender hereunder for all purposes of this Agreement, notwithstanding notice
      to the contrary.  The Register shall be available for inspection by
      the Borrower and any Lender, at any reasonable time and from time to time upon
      reasonable prior notice.

     

    (d)Participations.  Any
      Lender may at any time, without the consent of, or notice to, the Borrower
      or
      the Administrative Agent, sell participations to any Person (other than a
      natural person or the Borrower or any of the Borrower’s Affiliates or
      Subsidiaries) (each, a “Participant”) in all or a portion of such
      Lender’s rights and/or obligations under this Agreement (including all or a
      portion of its Commitment(s) and/or the Loans owing to it); provided
      that (i) such Lender’s obligations under this Agreement shall remain
      unchanged, (ii) such Lender shall remain solely responsible to the other
      parties hereto for the performance of such obligations and (iii) the
      Borrower, the Administrative Agent and the Lenders and L/C Issuer shall
      continue to deal solely and directly with such Lender in connection with such
      Lender’s rights and obligations under this Agreement.

     

    Any
      agreement or instrument pursuant to which a Lender sells such a participation
      shall provide that such Lender shall retain the sole right to enforce this
      Agreement and to approve any amendment, modification or waiver of any provision
      of this Agreement; provided that such agreement or instrument may
      provide that such Lender will not, without the consent of the Participant,
      agree
      to any amendment or waiver described in Section 10.11(i) and (ii) that
      affects such Participant.  Subject to paragraph (e) of this
      Section, the Borrower agrees that each Participant shall be entitled to the
      benefits of Sections 8.1 and 8.4(b) to the same extent as if it were a
      Lender and had acquired its interest by assignment pursuant to
      paragraph (b) of this Section.  To the extent permitted by law,
      each Participant also shall be entitled to the benefits of Section 10.14 as
      though it were a Lender, provided such Participant agrees to be subject to
      Section 10.7 as though it were a Lender.

     

    (e)Limitations
      upon Participant Rights.  A Participant shall not be entitled to
      receive any greater payment under Section 8.4(a) than the applicable Lender
      would have been entitled to receive with respect to the participation sold
      to
      such Participant, unless the sale of the participation to such Participant
      is
      made with the Borrower’s prior written consent.  A Participant that is
      not a United States person (as such term is defined in Section 7701(a)(30)
      of the Code) if it were a Lender shall not be entitled to the benefits of
      Section 10.1(a) unless the Borrower is notified of the participation sold
      to such Participant and such Participant agrees, for the benefit of the
      Borrower, to comply with Section 10.1(b) as though it were a
      Lender.

     

    
      
        
        

      

      
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    (f)Certain
      Pledges.  Any Lender may at any time pledge or assign a security
      interest in all or any portion of its rights under this Agreement to secure
      obligations of such Lender, including any pledge or assignment to secure
      obligations to a Federal Reserve Bank; provided that no such pledge or
      assignment shall release such Lender from any of its obligations hereunder
      or
      substitute any such pledgee or assignee for such Lender as a party
      hereto.

     

    (g)Electronic
      Execution of Assignments.  The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be
      deemed to include electronic signatures or the keeping of records in electronic
      form, each of which shall be of the same legal effect, validity or
      enforceability as a manually executed signature or the use of a paper-based
      recordkeeping system, as the case may be, to the extent and as provided for
      in
      any applicable law, including the Federal Electronic Signatures in Global and
      National Commerce Act, the New York State Electronic Signatures and Records
      Act,
      or any other similar state laws based on the Uniform Electronic Transactions
      Act.

     

    Section 10.11.Amendments. 
      Any provision of this Agreement or the other Loan Documents may be amended
      or
      waived if, but only if, such amendment or waiver is in writing and is signed
      by
      (a) the Borrower, (b) the Required Lenders, (c) if the rights or duties of
      the
      Administrative Agent are affected thereby, the Administrative Agent, and (d)
      if
      the rights or duties of the L/C Issuer are affected thereby, the
      L/C Issuer; provided that:

     

    (i)no
      amendment or waiver pursuant to this Section 10.11 shall (A) increase
      any Commitment of any Lender without the consent of such Lender, (B) reduce
      the amount of or postpone the date for any scheduled payment of any principal
      of
      or interest on any Loan or of any Reimbursement Obligation or of any fee payable
      hereunder without the consent of the Lender to which such payment is owing
      or
      which has committed to make such Loan or Letter of Credit (or participate
      therein) hereunder or (C) change the application of payments set forth in
      Section 2.9 hereof without the consent of any Lender adversely affected
      thereby; and

     

    (ii)no
      amendment or waiver pursuant to this Section 10.11 shall, unless signed by
      each Lender, increase the aggregate Commitments of the Lenders, change the
      definitions of Revolving Credit Termination Date or Required Lenders, change
      the
      provisions of this Section 10.11, release any material guarantor or all or
      substantially all of the Collateral (except as otherwise provided for in the
      Loan Documents), extend the stated expiration date of any Letter of Credit
      beyond the Revolving Credit Termination Date, affect the number of Lenders
      required to take any action hereunder or under any other Loan Document, or
      change or waive any provision of any Loan Document that provides for the pro
      rata nature of disbursements or payments to Lenders.

     

    Section 10.12.Heading. Section
      headings used in this Agreement are for reference only and shall not affect
      the
      construction of this Agreement.

     

    
      
        
        

      

      
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    Section 10.13.Costs
      and Expenses; Indemnification.  (a) The Borrower agrees to pay
      all reasonable costs and expenses of the Administrative Agent in connection
      with
      the preparation, negotiation, syndication, and administration of the Loan
      Documents, including, without limitation, the reasonable fees and disbursements
      of counsel to the Administrative Agent, in connection with the preparation
      and
      execution of the Loan Documents, and any amendment, waiver or consent related
      thereto, whether or not the transactions contemplated herein are consummated,
      together with any fees and charges suffered or incurred by the Administrative
      Agent in connection with periodic environmental audits, fixed asset appraisals,
      title insurance policies, collateral filing fees and lien
      searches.  The Borrower further agrees to indemnify the Administrative
      Agent, each Lender, and their respective directors, officers, employees, agents,
      financial advisors, and consultants against all Damages (including, without
      limitation, all reasonable attorney’s fees and other expenses of litigation or
      preparation therefor, whether or not the indemnified Person is a party thereto,
      or any settlement arrangement arising from or relating to any such litigation)
      which any of them may pay or incur arising out of or relating to any Loan
      Document or any of the transactions contemplated thereby or the direct or
      indirect application or proposed application of the proceeds of any Loan or
      Letter of Credit, other than those which arise from the gross negligence,
      willful misconduct or bad faith of the party claiming
      indemnification.  The Borrower, upon demand by the Administrative
      Agent or a Lender at any time, shall reimburse the Administrative Agent or
      such
      Lender for any reasonable legal or other expenses incurred in connection with
      investigating or defending against any of the foregoing (including any
      settlement costs relating to the foregoing) except if the same is directly
      due
      to the gross negligence or willful misconduct of the party to be
      indemnified.  The obligations of the Borrower under this Section shall
      survive the termination of this Agreement.

     

    (b)The
      Borrower unconditionally agrees to forever indemnify, defend and hold harmless,
      and covenants not to sue for any claim for contribution against, the
      Administrative Agent and the Lenders for any Damages, costs, loss or expense,
      including without limitation, response, remedial or removal costs, arising
      out
      of any of the following:  (i) any presence, release, threatened
      release or disposal of any hazardous or toxic substance or petroleum by the
      Borrower or any Subsidiary or otherwise occurring on or with respect to its
      Property (whether owned or leased), (ii) the operation or violation of any
      Environmental Law, whether federal, state, or local, and any regulations
      promulgated thereunder, by the Borrower or any Subsidiary or otherwise occurring
      on or with respect to its Property (whether owned or leased), (iii) any
      claim for personal injury or property damage in connection with the Borrower
      or
      any Subsidiary or otherwise occurring on or with respect to its Property
      (whether owned or leased), and (iv) the inaccuracy or breach of any
      environmental representation, warranty or covenant by the Borrower or any
      Subsidiary made herein or in any other Loan Document evidencing or securing
      any
      Obligations or setting forth terms and conditions applicable thereto or
      otherwise relating thereto, except for Damages arising from the willful
      misconduct or gross negligence of the party claiming
      indemnification.  This indemnification shall survive the payment and
      satisfaction of all Obligations and the termination of this Agreement, and
      shall
      remain in force beyond the expiration of any applicable statute of limitations
      and payment or satisfaction in full of any single claim under this
      indemnification.  This indemnification shall be binding upon the
      successors and assigns of the Borrower and shall inure to the benefit of
      Administrative Agent and the Lenders directors, officers, employees, agents,
      and
      collateral trustees, and their successors and assigns.

     

    
      
        
        

      

      
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    Section 10.14.Set-off.  In
      addition to any rights now or hereafter granted under applicable law and not
      by
      way of limitation of any such rights, upon the occurrence of any Event of
      Default, each Lender and each subsequent holder of any Obligation is hereby
      authorized by the Borrower at any time or from time to time, without notice
      to
      the Borrower or to any other Person, any such notice being hereby expressly
      waived, to set-off and to appropriate and to apply any and all deposits (general
      or special, including, but not limited to, indebtedness evidenced by
      certificates of deposit, whether matured or unmatured, but not including trust
      accounts, and in whatever currency denominated) and any other indebtedness
      at
      any time held or owing by that Lender or that subsequent holder to or for the
      credit or the account of the Borrower, whether or not matured, against and
      on
      account of the Obligations of the Borrower to that Lender or that subsequent
      holder under the Loan Documents, including, but not limited to, all claims
      of
      any nature or description arising out of or connected with the Loan Documents,
      irrespective of whether or not (a) that Lender or that subsequent holder
      shall have made any demand hereunder or (b) the principal of or the
      interest on the Loans and other amounts due hereunder shall have become due
      and
      payable pursuant to Section 7 and although said obligations and
      liabilities, or any of them, may be contingent or unmatured.

     

    Section 10.15.Entire
      Agreement.  The Loan Documents constitute the entire
      understanding of the parties thereto with respect to the subject matter thereof
      and any prior agreements, whether written or oral, with respect thereto are
      superseded hereby.

     

    Section 10.16.Governing
      Law.  This Agreement and the other Loan Documents, and the rights
      and duties of the parties hereto, shall be construed and determined in
      accordance with the internal laws of the State of Ohio.

     

    Section 10.17.Severability
      of Provisions.  Any provision of any Loan Document which is
      unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
      to the extent of such unenforceability without invalidating the remaining
      provisions hereof or affecting the validity or enforceability of such provision
      in any other jurisdiction.  All rights, remedies and powers provided
      in this Agreement and the other Loan Documents may be exercised only to the
      extent that the exercise thereof does not violate any applicable mandatory
      provisions of law, and all the provisions of this Agreement and other Loan
      Documents are intended to be subject to all applicable mandatory provisions
      of
      law which may be controlling and to be limited to the extent necessary so that
      they will not render this Agreement or the other Loan Documents invalid or
      unenforceable.

     

    Section 10.18.Excess
      Interest.  Notwithstanding any provision to the contrary
      contained herein or in any other Loan Document, no such provision shall require
      the payment or permit the collection of any amount of interest in excess of
      the
      maximum amount of interest permitted by applicable law to be charged for the
      use
      or detention, or the forbearance in the collection, of all or any portion of
      the
      Loans or other obligations outstanding under this Agreement or any other Loan
      Document (“Excess Interest”).  If any Excess Interest is
      provided for, or is adjudicated to be provided for, herein or in any other
      Loan
      Document, then in such event (a) the provisions of this Section shall
      govern and control, (b) neither the Borrower nor any guarantor or endorser
      shall be obligated to pay any Excess Interest, (c) any Excess Interest that
      the Administrative Agent or any Lender may have received hereunder shall, at
      the
      option of the Administrative Agent, be (i) applied as a credit against the
      then outstanding principal amount of Obligations hereunder and accrued and
      unpaid interest thereon (not to exceed the maximum amount permitted by
      applicable law), (ii) refunded to the Borrower, or (iii) any
      combination of the foregoing, (d) the interest rate payable hereunder or
      under any other Loan Document shall be automatically subject to reduction to
      the
      maximum lawful contract rate allowed under applicable usury laws (the
“Maximum Rate”), and this Agreement and the other Loan Documents shall
      be deemed to have been, and shall be, reformed and modified to reflect such
      reduction in the relevant interest rate, and (e) neither the Borrower nor
      any guarantor or endorser shall have any action against the Administrative
      Agent
      or any Lender for any Damages whatsoever arising out of the payment or
      collection of any Excess Interest.  Notwithstanding the foregoing, if
      for any period of time interest on any of Borrower’s Obligations is calculated
      at the Maximum Rate rather than the applicable rate under this Agreement, and
      thereafter such applicable rate becomes less than the Maximum Rate, the rate
      of
      interest payable on the Borrower’s Obligations shall remain at the Maximum Rate
      until the Lenders have received the amount of interest which such Lenders would
      have received during such period on the Borrower’s Obligations had the rate of
      interest not been limited to the Maximum Rate during such period.

     

    
      
        
        

      

      
        82

        
          

        

      

      
        
        

      

    

    Section 10.19.Construction.  The
      parties acknowledge and agree that the Loan Documents shall not be construed
      more favorably in favor of any party hereto based upon which party drafted
      the
      same, it being acknowledged that all parties hereto contributed substantially
      to
      the negotiation of the Loan Documents.  The provisions of this
      Agreement relating to Subsidiaries shall apply only during such times as the
      Borrower has one or more Subsidiaries.  Nothing contained herein shall
      be deemed or construed to permit any act or omission which is prohibited by
      the
      terms of any Collateral Document, the covenants and agreements contained herein
      being in addition to and not in substitution for the covenants and agreements
      contained in the Collateral Documents.

     

    Section 10.20.Lender’s
      Obligations Several.  The obligations of the Lenders hereunder
      are several and not joint.  Nothing contained in this Agreement and no
      action taken by the Lenders pursuant hereto shall be deemed to constitute the
      Lenders a partnership, association, joint venture or other entity.

     

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

     

    Section 10.22.Submission
      to Jurisdiction; Waiver of Jury Trial.  The Borrower hereby
      submits to the nonexclusive jurisdiction of the United States District Court
      for
      the Southern District of Ohio and of any Ohio State court sitting in the City
      of
      Cincinnati for purposes of all legal proceedings arising out of or relating
      to
      this Agreement, the other Loan Documents or the transactions contemplated hereby
      or thereby.  The Borrower irrevocably waives, to the fullest extent
      permitted by law, any objection which it may now or hereafter have to the laying
      of the venue of any such proceeding brought in such a court and any claim that
      any such proceeding brought in such a court has been brought in an inconvenient
      forum.  The Borrower, the Administrative Agent, the L/C Issuer and the
      Lenders hereby irrevocably waive any and all right to trial by jury in any
      legal
      proceeding arising out of or relating to any Loan Document or the transactions
      contemplated thereby.

     

    
      
        
        

      

      
        83

        
          

        

      

      
        
        

      

    

    Section
      10.23.Treatment of Certain Information;
      Confidentiality.  Each of the Administrative Agent, the Lenders
      and the L/C Issuer agrees to maintain the confidentiality of the
      Information (as defined below), except that Information may be disclosed
      (a) to its Affiliates and to its and its Affiliates’ respective partners,
      directors, officers, employees, agents, advisors and other representatives
      (it
      being understood that the Persons to whom such disclosure is made will be
      informed of the confidential nature of such Information and instructed to keep
      such Information confidential), (b) to the extent requested by any
      regulatory authority purporting to have jurisdiction over it (including any
      self-regulatory authority, such as the National Association of Insurance
      Commissioners), (c) to the extent required by applicable laws or
      regulations or by any subpoena or similar legal process, (d) to any other
      party hereto, (e) in connection with the exercise of any remedies hereunder
      or under any other Loan Document or any action or proceeding relating to this
      Agreement or any other Loan Document or the enforcement of rights hereunder
      or
      thereunder, (f) subject to an agreement containing provisions substantially
      the same as those of this Section, to (i) any assignee of or Participant
      in, or any prospective assignee of or Participant in, any of its rights or
      obligations under this Agreement or (ii) any actual or prospective
      counterparty (or its advisors) to any Hedge Agreement relating to the Borrower
      and its obligations, (g) with the consent of the Borrower or (h) to
      the extent such Information (x) becomes publicly available other than as a
      result of a breach of this Section or (y) becomes available to the
      Administrative Agent, any Lender, the L/C Issuer or any of their respective
      Affiliates on a nonconfidential basis from a source other than the
      Borrower.  For purposes of this Section, “Information” means
      all information received from the Borrower or any of its Subsidiaries relating
      to the Borrower or any of its Subsidiaries or any of their respective
      businesses, other than any such information that is available to the
      Administrative Agent, any Lender or the L/C Issuer on a nonconfidential
      basis prior to disclosure by the Borrower or any of its Subsidiaries,
provided that, in the case of information received from the Borrower or
      any of its Subsidiaries after the date hereof, such information is clearly
      identified at the time of delivery as confidential.  Any Person
      required to maintain the confidentiality of Information as provided in this
      Section shall be considered to have complied with its obligation to do so if
      such Person has exercised the same degree of care to maintain the
      confidentiality of such Information as such Person would accord to its own
      confidential information.

     

    [Signature
      Pages to Follow]

    

    

    
      
        
          
          

        

        
          84

          
            

          

        

        
          
          

        

      

    

    

    

     

    This
      Agreement is entered into between us for the uses and purposes hereinabove
      set
      forth as of the date first above written.

     

    
      	
               

            	
              “Borrower”

            

    

     

    
      	
               

            	
              Champion
                Industries, Inc.

            

    

     

     

    
      	
               By
                : 

            	/s/
              Todd R.
              Fry                            
               

      	
               

            	
              Name:
                Todd R. Fry

            

    

    
      	
               

            	
              Title:
                Senior Vice President and

            

    

    
      	
               

            	
              Chief
                Financial Officer

            

    

    

    
      
        
                

             

             
    

          
          

        

        
          S-1

          
            

          

        

        
          
          

        

      

    

    

    
      	
               

            	
              “Lenders”

            

    

     

    
      	
               

            	
              Fifth
                Third Bank, an Ohio banking corporation, as a Lender, as L/C Issuer,
                and as Administrative Agent

            

    

     

     

    
      	
               By: 
                

            	/s/
              Gregory
              Amoroso          
               

      	
               

            	
              Name:
                Gregory Amoroso

            

    

    
      	
               

            	
              Title:   Vice
                President

            

    

    

    

    
      
        
                

                         

             
    

          
          

        

        
          S-2

          
            

          

        

        
          
          

        

      

    

    

    Exhibit A

     

    Notice
      of Payment Request

     

    [Date]

     

    [Name
      of
      Lender]

    [Address]

     

    Attention:

     

    Reference
      is made to the Credit Agreement, dated as of September 14, 2007, among
      Champion Industries, Inc., the Lenders party thereto, and Fifth Third Bank,
      an
      Ohio Banking corporation, as Administrative Agent (the “Credit
      Agreement”).  Capitalized terms used herein and not defined
      herein have the meanings assigned to them in the Credit
      Agreement.  [The Borrower has failed to pay its Reimbursement
      Obligation in the amount of $__________.  Your Revolver Percentage of
      the unpaid Reimbursement Obligation is $_____________] or
      [__________________________ has been required to return a payment by the
      Borrower of a Reimbursement Obligation in the amount of
      $_______________.  Your Revolver Percentage of the returned
      Reimbursement Obligation is $_______________.]

     

    
      	
               

            	
              Very
                truly yours,

            

    

     

    Fifth
      Third Bank, as L/C Issuer

     

    By

    
      	
               

            	
              Name

            

    

    
      	
               

            	
              Title

            

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Exhibit B

     

    Notice
      of Borrowing

     

    Date:  __________,
      ____

     

    
      	
               

            	
              To:Fifth
                Third Bank, an Ohio banking corporation, as Administrative Agent
                for the
                Lenders parties to the Credit Agreement dated as of September 14,
                2007 (as
                extended, renewed, amended or restated from time to time, the “Credit
                Agreement”), among Champion Industries, Inc., certain Lenders which
                are signatories thereto, and Fifth Third Bank, an Ohio banking
                corporation, as Administrative
                Agent

            

    

     

    Ladies
      and Gentlemen:

     

    The
      undersigned, Champion Industries, Inc. (the “Borrower”), refers to
      the Credit Agreement, the terms defined therein being used herein as therein
      defined, and hereby gives you notice irrevocably, pursuant to Section 2.5
      of the Credit Agreement, of the Borrowing specified below:

     

    1.The
      Business Day of the proposed Borrowing is ___________, ____.

     

    2.The
      aggregate amount of the proposed Borrowing is $______________.

     

    3.The
      Borrowing is being advanced under the [Revolving] [Term]
Credit.

     

    4.The
      Borrowing is to be comprised of $___________ of [Base Rate]
      [Eurodollar] Loans.

     

    [5.The
      duration of the Interest Period for the Eurodollar Loans included in the
      Borrowing shall be ____________ months.]

     

    The
      undersigned hereby certifies that the following statements are true on the
      date
      hereof, and will be true on the date of the proposed Borrowing, before and
      after
      giving effect thereto and to the application of the proceeds
      therefrom:

     

    (a)the
      representations and warranties of the Borrower contained in Section 5 of
      the Credit Agreement are true and correct in all material respects as though
      made on and as of such date (except to the extent such representations and
      warranties relate to an earlier date, in which case they are true and correct
      as
      of such date); and

    

    
      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

    

    

     

    (b)no
      Default or Event of Default has occurred and is continuing or would result
      from
      such proposed Borrowing.

     

    
      	
               

            	
              Champion
                Industries, Inc.

            

    

     

    By

    
      	
               

            	
              Name

            

    

    
      	
               

            	
              Title

            

    

    

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    Exhibit C

     

    Notice
      of Continuation/Conversion

     

     

    Date:  ____________,
      ____

     

     

    
      	
               

            	
              To:Fifth
                Third Bank, as Administrative Agent for the Lenders parties to the
                Credit
                Agreement dated as of September 14, 2007 (as extended, renewed, amended
                or
                restated from time to time, the “Credit Agreement”) among
                Champion Industries, Inc., certain Lenders which are signatories
                thereto,
                and Fifth Third Bank, as Administrative
                Agent

            

    

     

    Ladies
      and Gentlemen:

     

    The
      undersigned, Champion Industries, Inc. (the “Borrower”), refers to
      the Credit Agreement, the terms defined therein being used herein as therein
      defined, and hereby gives you notice irrevocably, pursuant to Section 2.5
      of the Credit Agreement, of the [conversion] [continuation] of
      the Loans specified herein, that:

     

    1.The
      conversion/continuation Date is __________, ____.

     

    2.The
      aggregate amount of the [Revolving] [Term] Loans to be
[converted] [continued] is $______________.

     

    3.The
      Loans are to be [converted into] [continued as] [Eurodollar] [Base
      Rate] Loans.

     

    4.[If
      applicable:]  The duration of the Interest Period for the
[Revolving] [Term] Loans included in the [conversion]
      [continuation] shall be _________ months.

     

    The
      undersigned hereby certifies that the following statements are true on the
      date
      hereof, and will be true on the proposed conversion/continuation date, before
      and after giving effect thereto and to the application of the proceeds
      therefrom:

     

    (a)the
      representations and warranties of the Borrower contained in Section 5 of
      the Credit Agreement are true and correct in all material respects as though
      made on and as of such date (except to the extent such representations and
      warranties relate to an earlier date, in which case they are true and correct
      as
      of such date); provided, however, that this condition shall not apply
      to the conversion of an outstanding Eurodollar Loan to a Base Rate Loan;
      and

    

    
      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

    

    

     

    (b)no
      Default or Event of Default has occurred and is continuing, or would result
      from
      such proposed [conversion] [continuation].

     

    
      	
               

            	
              Champion
                Industries, Inc.

            

    

     

    By

    
      	
               

            	
              Name

            

    

    
      	
               

            	
              Title

            

    

    

    

    
      
        
                

                    --      

             
    

          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    Exhibit D-1

     

    Term
      Note

     

     

    $___________________________ ___,
      ____

     

     

    ForValueReceived,
      the undersigned, Champion Industries, Inc., a West Virginia corporation (the
      “Borrower”), hereby promises to pay to ______________________ (the
“Lender”) at the principal office of Fifth Third Bank, an Ohio
      banking
      corporation, as Administrative Agent, in Cincinnati, Ohio, in immediately
      available funds, the principal sum of ___________________ Dollars ($__________)
      or, if less, the aggregate unpaid principal amount of the Term Loan made or
      maintained by the Lender to the Borrower pursuant to the Credit Agreement,
      in
      installments in the amounts called for by Section 2.7 of the Credit
      Agreement, commencing on October 31, 2007, together with interest on the
      principal amount of such Term Loan from time to time outstanding hereunder
      at
      the rates, and payable in the manner and on the dates, specified in the Credit
      Agreement.  

     

    This
      Note
      is one of the Term Notes referred to in the Credit Agreement dated as of
      September 14, 2007 among the Borrower, Fifth Third Bank, an Ohio banking
      corporation, as Administrative Agent and the Lenders party thereto (as amended,
      modified, supplemented or restated from time to time, the “Credit
      Agreement”), and this Note and the holder hereof are entitled to all the
      benefits and security provided for thereby or referred to therein, to which
      Credit Agreement reference is hereby made for a statement
      thereof.  All defined terms used in this Note, except terms otherwise
      defined herein, shall have the same meaning as in the Credit
      Agreement.  This Note shall be governed by and construed in accordance
      with the internal laws of the State of Ohio.

     

    Voluntary
      prepayments may be made hereon, certain prepayments are required to be made
      hereon, and this Note may be declared due prior to the expressed maturity
      hereof, all in the events, on the terms and in the manner as provided for in
      the
      Credit Agreement.

     

    The
      Borrower hereby waives demand, presentment, protest or notice of any kind
      hereunder.

     

    
      	
               

            	
              Champion
                Industries, Inc.

            

    

     

    By

    
      	
               

            	
              Name

            

    

    
      	
               

            	
              Title

            

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Exhibit D-2

     

    Revolving
      Note

     

     

    $___________________________ ___,
      ____

     

     

    ForValueReceived,
      the undersigned, Champion Industries, Inc., a West Virginia corporation (the
      “Borrower”), hereby promises to pay ______________________ (the
“Lender”) on the Revolving Credit Termination Date of the hereinafter
      defined Credit Agreement, at the principal office of Fifth Third Bank, an Ohio
      banking corporation, as Administrative Agent, in Cincinnati, Ohio, in
      immediately available funds, the principal sum of ___________________ Dollars
      ($__________) or, if less, the aggregate unpaid principal amount of all
      Revolving Loans made by the Lender to the Borrower pursuant to the Credit
      Agreement, together with interest on the principal amount of each Revolving
      Loan
      from time to time outstanding hereunder at the rates, and payable in the manner
      and on the dates, specified in the Credit Agreement.

     

    This
      Note
      is one of the Revolving Notes referred to in the Credit Agreement dated as
      of
      September 14, 2007 among the Borrower, Fifth Third Bank, an Ohio banking
      corporation, as Administrative Agent and the Lenders party thereto (as amended,
      modified, supplemented or restated from time to time, the “Credit
      Agreement”), and this Note and the holder hereof are entitled to all the
      benefits and security provided for thereby or referred to therein, to which
      Credit Agreement reference is hereby made for a statement
      thereof.  All defined terms used in this Note, except terms otherwise
      defined herein, shall have the same meaning as in the Credit
      Agreement.  This Note shall be governed by and construed in accordance
      with the internal laws of the State of Ohio.

     

    Voluntary
      prepayments may be made hereon, certain prepayments are required to be made
      hereon, and this Note may be declared due prior to the expressed maturity
      hereof, all in the events, on the terms and in the manner as provided for in
      the
      Credit Agreement.

     

    The
      Borrower hereby waives demand, presentment, protest or notice of any kind
      hereunder.

     

    Champion
      Industries, Inc.

     

    By

    
      	
               

            	
              Name

            

    

    
      	
               

            	
              Title

            

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Exhibit D-3

     

    Swing
      Note

     

     

    $5,000,000____________ ___,
      ____

     

     

    ForValueReceived,
      the undersigned, Champion Industries, Inc., a West Virginia corporation
      (the “Borrower”), hereby promises to pay to Fifth Third Bank, an Ohio
      banking corporation (the “Lender”) on the Revolving Credit Termination
      Date of the hereinafter defined Credit Agreement, at the principal office of
      Fifth Third Bank, an Ohio banking corporation, as Administrative Agent, in
      Cincinnati, Ohio, in immediately available funds, the principal sum of Five
      Million Dollars ($5,000,000) or, if less, the aggregate unpaid principal amount
      of all Swing Loans made by the Lender to the Borrower pursuant to the Credit
      Agreement, together with interest on the principal amount of each Swing Loan
      from time to time outstanding hereunder at the rates, and payable in the manner
      and on the dates, specified in the Credit Agreement.

     

    This
      Note
      is the Swing Note referred to in the Credit Agreement dated as of
      September 14, 2007 among the Borrower, the Lenders party thereto, and
      Fifth Third Bank, an Ohio banking corporation, as Administrative Agent and
      L/C Issuer (as amended, modified, restated or supplemented from time to
      time the “Credit Agreement”), and this Note and the holder hereof are
      entitled to all the benefits and security provided for thereby or referred
      to
      therein, to which Credit Agreement reference is hereby made for a statement
      thereof.  All defined terms used in this Note, except terms otherwise
      defined herein, shall have the same meaning as in the Credit
      Agreement.  This Note shall be governed by and construed in accordance
      with the internal laws of the State of Ohio.

     

    Voluntary
      prepayments may be made hereon, certain prepayments are required to be made
      hereon, and this Note may be declared due prior to the expressed maturity
      hereof, all in the events, on the terms and in the manner as provided for in
      the
      Credit Agreement.

     

    The
      Borrower hereby waives demand, presentment, protest or notice of any kind
      hereunder.

     

    Champion
      Industries, Inc.

     

    By

    
      	
               

            	
              Name

            

    

    
      	
               

            	
              Title

            

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Exhibit E

     

    ___________________________________________________

     

    Compliance
      Certificate

     

    
      	
               

            	
              To:Fifth
                Third Bank, as Administrative Agent under, and the Lenders party
                to, the
                Credit Agreement described below

            

    

     

    This
      Compliance Certificate is furnished to the Administrative Agent and the Lenders
      pursuant to that certain Credit Agreement dated as of September 14, 2007 among
      us (the “Credit Agreement”).  Unless otherwise defined
      herein, the terms used in this Compliance Certificate have the meanings ascribed
      thereto in the Credit Agreement.

     

    The
      Undersigned hereby certifies that:

     

    1.I
      am
      the duly appointed ____________ of Champion Industries, Inc.;

     

    2.I
      have
      reviewed the terms of the Credit Agreement and I have made, or have caused
      to be
      made under my supervision, a detailed review of the transactions and conditions
      of the Borrower and its Subsidiaries during the accounting period covered by
      the
      attached financial statements;

     

    3.The
      examinations described in paragraph 2 did not disclose, and I have no
      knowledge of, the existence of any condition or the occurrence of any event
      which constitutes a Default or Event of Default during or at the end of the
      accounting period covered by the attached financial statements or as of the
      date
      of this Compliance Certificate, except as set forth below;

     

    4.The
      financial statements required by Section 6.1 of the Credit Agreement and
      being furnished to you concurrently with this Compliance Certificate are true,
      correct and complete as of the date and for the periods covered thereby;
      and

     

    5.The
      representations and warranties of the Borrower contained in Section 5 of
      the Credit Agreement are true and correct as though made on and as of the date
      hereof (except to the extent such representations and warranties relate to
      an
      earlier date, in which case they are true and correct as of such
      date).

     

    6.The
      Schedule I hereto sets forth financial data and computations evidencing the
      Borrower’s compliance with certain covenants of the Credit Agreement, all of
      which data and computations are, to the best of my knowledge, true, complete
      and
      correct and have been made in accordance with the relevant Sections of the
      Credit Agreement.

     

    7.The
      Schedule II hereto sets forth a comparison of current financials against
      the budget for such period as required by Section 6.1(d) of the Credit
      Agreement.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    Described
      below are the exceptions, if any, to paragraph 3 by listing, in detail, the
      nature of the condition or event, the period during which it has existed and
      the
      action which the Borrower has taken, is taking, or proposes to take with respect
      to each such condition or event:

     

    
      	 
	 
	 
	 

    

     

     

    The
      foregoing certifications, together with the computations set forth in
      Schedule I hereto and the financial statements delivered with this
      Certificate in support hereof, are made and delivered this ______ day of
      __________________ 20___.

     

    Champion
      Industries, Inc.

     

    By

    
      	
               

            	
              Name

            

    

    
      	
               

            	
              Title

            

    

    

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    Schedule I

    to
      Compliance Certificate

     

    Champion
      Industries, Inc.

     

    Compliance
      Calculations

    for
      Credit Agreement dated as of September 14, 2007

     

    Calculations
      as of _____________, _______

    
      

       

      

    

    
      	 	
              The
                following sections set forth the financial covenants established
                in
                Section 6.20 of the Credit Agreement along with the primary definitions
                from Section 1.1 of the Credit Agreement used in such
                covenants.

            
	 	
              A
                worksheet for calculating covenant compliance is set forth at the
                end of
                each respective section.  Over time, these worksheets will need
                to be updated to reflect the new applicable fiscal years, as
                appropriate:

            
	 	
              A.Leverage
                Ratio (Section 6.20(a))

            	 
	 	
              The
                Borrower shall not, as of the last day of each fiscal quarter of
                the
                Borrower ending during the periods specified below, permit the Leverage
                Ratio to be greater than:

            
	
              From
                and Including

            	
              To
                and Including

            	
              The
                Leverage Ratio Shall Not Be Greater Than:

            
	
              the
                Closing Date

            	
              October
                31, 2008

            	
              4.25:
                1.00

            
	
              November
                1, 2008

            	
              October
                31, 2009

            	
              4.00:
                1.00

            
	
              November
                1, 2009

            	
              October
                31, 2010

            	
              3.75:
                1.00

            
	
              November
                1, 2010

            	
              at
                all times thereafter

            	
              3.50:
                1.00

            

    

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	 	
              “Leverage
                Ratio” means, as of the date of determination thereof, the ratio of
                Total Funded Debt of the Borrower and its Subsidiaries as of such
                date to
                EBITDA for the period of four fiscal quarters then
                ended.

            
	 	
              “Total
                Funded Debt” means, at any time the same is to be determined, the
                aggregate of all Indebtedness of the Borrower and its Subsidiaries
                at such
                time determined on a consolidated basis in accordance with
                GAAP.

            
	 	
              “Indebtedness”
                means for any Person (without duplication) (a) all indebtedness of
                such Person for borrowed money, whether current or funded, or secured
                or
                unsecured, (b) all indebtedness for the deferred purchase price of
                Property or services, (c) all indebtedness created or arising under
                any conditional sale or other title retention agreement with respect
                to
                Property acquired by such Person (even though the rights and remedies
                of
                the seller or lender under such agreement in the event of a default
                are
                limited to repossession or sale of such Property), (d) all
                indebtedness secured by a purchase money mortgage or other Lien to
                secure
                all or part of the purchase price of Property subject to such mortgage
                or
                Lien, (e) all obligations under leases which shall have been or must
                be, in accordance with GAAP, recorded as Capital Leases in respect
                of
                which such Person is liable as lessee, (f) any liability in respect
                of banker’s acceptances or letters of credit, (g) any indebtedness,
                whether or not assumed, secured by Liens on Property acquired by
                such
                Person at the time of acquisition thereof, (h) all obligations under
                any so-called “synthetic lease” transaction entered into by such Person,
                (i) all obligations under any so-called “asset securitization”
                transaction entered into by such Person, and (j) all Contingent
                Obligations, it being understood that the term “Indebtedness” shall not
                include trade payables, accrued payroll and commissions, taxes accrued
                and
                withheld, accrued and deferred income taxes and other acquired expenses
                arising in the ordinary course of business.

            
	 	
              “Net
                Income” means, with reference to any period, the net income (or net
                loss) of the Borrower and its Subsidiaries for such period computed
                on a
                consolidated basis in accordance with GAAP; provided that, there
                shall be excluded from Net Income (a) the net income (or net loss) of
                any Person accrued prior to the date it becomes a Subsidiary of,
                or has
                merged into or consolidated with, the Borrower or another Subsidiary,
                except to the extent that the Borrower has delivered the financial
                statements of the Acquired Business for such period, which financial
                statements shall have been audited by an independent accounting firm
                reasonably satisfactory to the Administrative Agent, and the
                Administrative Agent agrees to the inclusion of such net income (or
                net
                loss) of such Person and (b) the net income (or net loss) of any
                Person (other than a Subsidiary) in which the Borrower or any of
                its
                Subsidiaries has a equity interest in, except to the extent of the
                amount
                of dividends or other distributions actually paid to the Borrower
                or any
                of its Subsidiaries during such period.

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	 	
              “EBITDA”
                means, with reference to any period, Net Income for such period
                plus  the sum of all amounts deducted in arriving at
                such Net Income amount in respect of (a) Interest Expense for such
                period, (b) federal, state, and local income taxes for such period,
                and (c) depreciation of fixed assets and amortization of intangible
                assets for such period; provided, however, that notwithstanding
                anything in this definition to the contrary, EBITDA for the following
                periods shall be deemed by the parties hereto to be: $6,244,194 for
                the
                fiscal quarter of the Borrower ending October 31, 2006, $5,577,522
                for the
                fiscal quarter of the Borrower ending January 31, 2007, $5,168,966
                for the fiscal quarter of the Borrower ending April 30, 2007 and
                $4,468,226 for the fiscal quarter of the Borrower ending July 31,
                2007.

            

    

    

    
      	
              Leverage
                Ratio Covenant Compliance Calculation:

            	 
	 	
              October
                31, 2006

            	
              October
                31,
                2007

            	 
	 	
              1st
                Quarter

            	
              2nd
                Quarter

            	
              3rd
                Quarter

            	
              4th
                Quarter

            	
              1st
                Quarter

            	
              2nd
                Quarter

            	
              3rd
                Quarter

            	
              4th
                Quarter

            	
              Aggregate
                for past 4 quarters

            	
              Current

            
	
              1.
                Total Funded Debt

            	 	 	 	 	 	 	 	 	 	
              $___________

            
	
              2.
                Net Income for past 4 quarters

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              3.
                Interest Expense for past 4 quarters

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              4.
                Income taxes for past 4 quarters

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              5.
                Depreciation and amortization expense for past 4 quarters

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              6.
                Sum of Lines A2, A3, A4 and A5 (“EBITDA”)

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              7.
                Ratio of Line A1 to A6

            	 	 	 	 	 	 	 	 	
              ___:
                1.0

            	 
	
              8.
                Line A7 ratio must not exceed

            	 	 	 	 	 	 	 	 	
              ___:
                1.0

            	 
	
              9.
                The Borrower is in compliance (circle yes or no)

            	 	 	 	 	 	 	 	 	
              yes/no

            	 

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
              B.First
                Fixed Charge Coverage Ratio
                (Section 6.20(b))

            	 
	
              As
                of the last day of each fiscal quarter of the Borrower ending during
                the
                periods specified below, the Borrower shall maintain a ratio of
                (i) EBITDA for the four fiscal quarters of the Borrower then ended
                minus Capital Expenditures during such period not financed with
                Indebtedness to (ii) Fixed Charges A for the same four fiscal
                quarters then ended of greater than:

            
	
              From
                and Including

            	
              To
                and Including

            	
              Ratio
                of EBITDA to Fixed Charges A shall be greater
                than:

            
	
              January
                31, 2008

            	
              October
                31, 2008

            	
              1.15:
                1.00

            
	
              November
                1, 2008

            	
              October
                31, 2009

            	
              1.20:
                1.00

            
	
              November
                1, 2009

            	
              at
                all times thereafter

            	
              1.25:
                1.00

            
	 	
              ;
                provided, however, that notwithstanding anything in this
                Section to the contrary, for purposes of calculating Capital Expenditures
                not financed with Indebtedness for each quarter ending on or before
                July 31, 2008, Capital Expenditures not financed with
                Indebtedness during the period of calculation shall be deemed to
                be the
                product of (x) a fraction, the numerator of which is 365 and the
                denominator of which is the number of days during the period from
                and
                including November 1, 2007 through and including the last day of
                such
                period of calculation (the “Post-Closing Period”) and (y) actual
                Capital Expenditures not financed with Indebtedness during the
                Post-Closing Period.

            
	 	
              “EBITDA”
                definition is set forth in Section A
                above.

            

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	 	
              “Capital
                Expenditures” means, with respect to any Person for any period, the
                aggregate amount of all expenditures (whether paid in cash or accrued
                as a
                liability) by such Person during that period for the acquisition
                or
                leasing (pursuant to a Capital Lease) of fixed or capital assets
                or
                additions to property, plant, or equipment (including replacements,
                capitalized repairs, and improvements) which should be capitalized
                on the
                balance sheet of such Person in accordance with GAAP; provided,
                that in the event that Syscan Corporation (“Syscan”)
                purchases that property commonly known as 3000 West Washington Street,
                Charleston, West Virginia, and the improvements located thereon,
                for a
                purchase price equal to $1,500,000 pursuant to the option granted
                to
                Syscan in that certain Assignment of Lease dated as of
                September 1, 2004 between Williams Land Corporation and Syscan,
                as the same may be amended, supplemented or otherwise modified from
                time
                to time, such consideration shall not constitute a Capital Expenditure
                hereunder.

            
	 	
              “Fixed
                Charges A” means, with reference to any period, the sum of
                (a) all scheduled payments of principal made or to be made during
                such period with respect to Indebtedness (“Principal Payments”)
                of the Borrower and its Subsidiaries (for purposes of clarity, Excess
                Cash
                Flow payments made pursuant to Section 2.8(b)(iii) hereof do not
                constitute Principal Payments), plus (b) the cash portion of any
                Interest Expense for such period, plus (c) federal, state, and local
                income taxes paid in cash by the Borrower and its Subsidiaries during
                such
                period; provided, however, that notwithstanding anything
                in this definition to the contrary, for purposes of calculating Fixed
                Charges A for each quarter ending on or before July 31,
                2008:

            
	 	
              (i)Principal
                Payments during the period of calculation shall be deemed to be the
                product of (x) a fraction, the numerator of which is 365 and the
                denominator of which is the number of days during the period from
                and
                including November 1, 2007 through and including the last day of
                such
                period of calculation (the “Post-Closing Period”) and (y) actual
                Principal Payments during the Post-Closing Period;

            
	 	
              (ii)cash
                Interest Expense during the period of calculation shall be deemed
                to be
                equal to the product of (x) a fraction, the numerator of which is
                365 and
                the denominator of which is the Post-Closing Period and (y) actual
                cash
                Interest Expense during the Post-Closing Period; and

            
	 	
              (iii)federal,
                state and local income taxes paid in cash by the Borrower and its
                Subsidiaries during the period of calculation shall be deemed equal
                to the
                product of (x) a fraction, the numerator of which is 365 and the
                denominator of which is the Post-Closing Period and (y) actual federal,
                state and local income taxes paid in cash by the Borrower and its
                Subsidiaries during the Post-Closing
                Period.

            

    

     

    
      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              First
                Fixed Charge Coverage Ratio Covenant Compliance
                Calculation:

            
	 	
              October
                31, 2006

            	
              October
                31,
                2007

            
	 	
              1st
                Quarter

            	
              2nd
                Quarter

            	
              3rd
                Quarter

            	
              4th
                Quarter

            	
              1st
                Quarter

            	
              2nd
                Quarter

            	
              3rd
                Quarter

            	
              4th
                Quarter

            	
              Aggregate
                for past 4 quarters

            	 
	
              1.
                EBITDA from Line A6

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              2.
                Non-financed Capital Expenditures for past 4 quarters

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              3.
                Line B1 minus Line B2

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              4.
                Principal Payments for past 4 quarters

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              5.
                Cash Interest expense for past 4 quarters

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              6.
                Cash income taxes for past 4 quarters

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              7.
                Sum of Lines B4, B5, and B6 (“Fixed Charges A”)

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              8.
                Ratio of Line B3 to B7

            	 	 	 	 	 	 	 	 	
              ___:
                1.0

            	 
	
              9.
                Line B8 ratio must not be less than

            	 	 	 	 	 	 	 	 	
              ___:
                1.0

            	 
	
              10.
                The Borrower is in compliance (circle yes or no)

            	 	 	 	 	 	 	 	 	
              yes/no

            	 

    

    

    

    
      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              C.Second
                Fixed Charge Coverage Ratio
                (Section 6.20(c))

            	 
	
              As
                of the last day of each fiscal quarter of the Borrower ending during
                the
                periods specified below the Borrower shall maintain, and prior to
                making
                any Restricted Payment, the Borrower shall show that it will maintain
                a
                pro forma basis, a ratio of (i) EBITDA for the four fiscal
                quarters of the Borrower then ended minus Capital Expenditures
                during such period not financed with Indebtedness to (ii) Fixed
                Charges B for the same four fiscal quarters then ended of greater
                than:

            
	
              From
                and Including

            	
              To
                and Including

            	
              Ratio
                of EBITDA to Fixed Charges B shall be greater
                than:

            
	
              January
                31, 2008

            	
              October
                31, 2008

            	
              1.10:
                1.00

            
	
              November
                1, 2008

            	
              October
                31, 2009

            	
              1.15:
                1.00

            
	
              November
                1, 2009

            	
              at
                all times thereafter

            	
              1.20:
                1.00

            
	
              ;
                provided, however, that notwithstanding anything in this
                Section to the contrary, for purposes of calculating Capital Expenditures
                not financed with Indebtedness for each quarter ending on or before
                July 31, 2008, Capital Expenditures not financed with
                Indebtedness during the period of calculation shall be deemed to
                be the
                product of (x) a fraction, the numerator of which is 365 and the
                denominator of which is the number of days during the period from
                and
                including November 1, 2007 through and including the last day of
                such
                period of calculation  (the “Post-Closing Period”) and
                (y) actual Capital Expenditures not financed with Indebtedness during
                the
                Post-Closing Period.

            
	
              “Capital
                Expenditures” definition is set forth in Section B
                above.

            

    

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
      	
              “Fixed
                Charges B” means, with reference to any period, the sum of
                (a) all scheduled payments of principal made or to be made during
                such period with respect to Indebtedness (“Principal Payments”)
                of the Borrower and its Subsidiaries (for purposes of clarity, Excess
                Cash
                Flow payments made pursuant to Section 2.8(b)(iii) hereof do not
                constitute Principal Payments), plus (b) the cash portion of any
                Interest Expense for such period, plus (c) federal, state, and local
                income taxes paid in cash by the Borrower and its Subsidiaries during
                such
                period, plus (d) Restricted Payments made by the Borrower during such
                period; provided, however, that notwithstanding anything
                in this definition to the contrary, for purposes of calculating Fixed
                Charges B before each quarter ending on or before
                July 31, 2008:

            
	
              (i)Principal
                Payments during the period of calculation shall be deemed to be the
                product of (x) a fraction, the numerator of which is 365 and the
                denominator of which is the number of days during the period from
                and
                including November 1, 2007 through and including the last day of
                such
                period of calculation (the “Post-Closing Period”) and (y) actual
                Principal Payments during the Post-Closing Period;

            
	
              (ii)cash
                Interest Expense during the period of calculation shall be deemed
                to be
                equal to the product of (x) a fraction, the numerator of which is
                365 and
                the denominator of which is the Post-Closing Period and (y) actual
                cash
                Interest Expense during the Post-Closing Period;

            
	
              (iii)federal,
                state and local income taxes paid in cash by the Borrower and its
                Subsidiaries during the period of calculation shall be deemed equal
                to the
                product of (x) a fraction, the numerator of which is 365 and the
                denominator of which is the Post-Closing Period and (y) actual federal,
                state and local income taxes paid in cash by the Parent, the Borrower
                and
                the Subsidiaries during the Post-Closing Period; and

            
	
              (iv)Restricted
                Payments made by the Borrower during the period of calculation shall
                be
                deemed to be equal to the product of (x) a fraction, the numerator
                of
                which is 365 and the denominator of which is the Post-Closing Period
                and
                (y) actual Restricted Payments made by the Borrower during the
                Post-Closing Period.

            
	
              “Restricted
                Payments” means dividends on, or any other distributions in respect
                of, any class or series of its capital stock or other equity interests,
                or
                the direct or indirect purchase, redemption, or other acquisition
                or
                retirement of any capital stock or other equity interests, or any
                warrants, options, or similar instruments to acquire the same, made
                by the
                Borrower or any of its Subsidiaries.

            

    

    

    

    
      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Second
                Fixed Charge Coverage Ratio Covenant Compliance
                Calculation:

            
	 	
              October
                31, 2006

            	
              October
                31,
                2007

            
	 	
              1st
                Quarter

            	
              2nd
                Quarter

            	
              3rd
                Quarter

            	
              4th
                Quarter

            	
              1st
                Quarter

            	
              2nd
                Quarter

            	
              3rd
                Quarter

            	
              4th
                Quarter

            	
              Aggregate
                for past 4 quarters

            	 
	
              1.
                Amount from Line B3

            	 	 	 	 	 	 	 	 	
              $_________

            	 
	
              2.
                Amount from Line B7

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              3.
                Restricted Payments for past 4 quarters

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              4.
                Sum of Line C2 and C3 (“Fixed Charges B”)

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              5.
                Ratio of Line C1 to C4

            	 	 	 	 	 	 	 	 	
              __:
                1.0

            	 
	
              6.
                Line C5 must be less than

            	 	 	 	 	 	 	 	 	
              __:
                1.0

            	 
	
              7.
                The Borrower is in compliance (circle yes or no)

            	 	 	 	 	 	 	 	 	
              yes/no

            	 

    

    

    

    
      
        
                

                    --      

             
    

          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              D.Minimum
                EBITDA (Section 6.20(d)) (to be determined for 2 years following the
                Closing Date)

            	 
	
              The
                Borrower shall not as of the last day of each fiscal quarter beginning
                with that quarter ending October 31, 2007, through and including
                that
                quarter ending October 31, 2009, permit the EBITDA for the twelve
                months
                then ended to be less than $18,000,000.

            
	
              “EBITDA”
                definition is set forth in Section A above.

            
	
              Minimum
                EBITDA Covenant Compliance Calculation:

            	 
	
              1.
                Amount from Line A6 (“EBITDA”)

            	 	
              $___________

            	 
	
              2.
                Line D1 must be greater than

            	 	
              $18,000,000

            	 
	
              3.
                The Borrower is in compliance (circle yes or no)

            	 	
              yes/no

            	 

    

    

    
      	
              E.Maximum
                Capital Expenditures

            	 
	
              (i)
                For each fiscal year of the Borrower beginning with that fiscal year
                ending October 31, 2008, the Borrower shall not, nor shall it permit
                any
                Subsidiary to, expend or become obligated for Capital Expenditures
                in an
                aggregate amount in excess of $3,000,000 during any fiscal year of
                the
                Borrower; provided that to the extent that Capital Expenditures
                in the previous fiscal year were less than $3,000,000, the limit
                for
                Capital Expenditures in the succeeding fiscal year shall be increased
                by
                the difference between $3,000,000 and the amount of Capital Expenditures
                for the previous fiscal year; provided, however, that
                notwithstanding anything in this Section to the contrary, for purposes
                of
                calculating Capital Expenditures for each quarter ending on or before
                July 31, 2008, Capital Expenditures during the period of
                calculation shall be deemed to be the product of (x) a fraction,
                the
                numerator of which is 365 and the denominator of which is the number
                of
                days during the period from and including November 1, 2007 through
                and
                including the last day of such period of calculation (the
                “Post-Closing Period”) and (y) actual Capital Expenditures during
                the Post-Closing Period. 

            
	
              “Capital
                Expenditures” definition is set forth in Section B
                above.

            

    

    

    

    
      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Maximum
                Capital Expenditures Covenant (i) Compliance
                Calculation:

            
	 	
              October
                31, 2006

            	
              October
                31,
                2007

            
	 	
              1st
                Quarter

            	
              2nd
                Quarter

            	
              3rd
                Quarter

            	
              4th
                Quarter

            	
              1st
                Quarter

            	
              2nd
                Quarter

            	
              3rd
                Quarter

            	
              4th
                Quarter

            	
              Aggregate
                for past 4 quarters

            	 
	
              1.
                Capital Expenditures for past 4 quarters

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	
              $_________

            	 
	
              2.
                Capital Expenditures carried over from prior fiscal year

            	 	 	 	 	 	 	 	 	
              $_________

            	 
	
              3.
                Line E2 plus $3,000,000

            	 	 	 	 	 	 	 	 	
              $_________

            	 
	
              4.
                Line E1 must be less than Line E3

            	 	 	 	 	 	 	 	 	 	 
	
              7.
                The Borrower is in compliance (circle yes or no)

            	 	 	 	 	 	 	 	 	
              yes/no

            	 

    

    

    
      	
              (ii)
                The Borrower shall not, nor shall it permit any Subsidiary to expend
                or
                become obligated for Capital Expenditures in an aggregate amount
                in excess
                of $1,100,000 during that fiscal quarter of the Borrower ending October
                31, 2007.

            
	
              Capital
                Expenditure Covenant (ii) Compliance Calculation:

            	 
	
              1.Capital
                Expenditures for the fiscal quarter ending October 31,
                2007

            	
              $___________

            	 
	
              2.Such
                Capital Expenditures must be less than

            	
              $1,100,000

            	 
	
              3.The
                Borrower is in compliance (circle yes or no)

            	
              yes/no

            	 

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	
              F.Minimum
                Excess Availability plus Cash plus Cash
                Equivalents

            	 
	
              The
                Borrower shall ensure that at all times Excess Availability plus
                cash of the Borrower plus Cash Equivalents of the Borrower is
                equal to or greater than $3,000,000.

            
	
              “Excess
                Availability” means, as of any time the same is to be determined, the
                amount (if any) by which (a) the lesser of the Borrowing Base as then
                determined and computed or the Revolving Credit Commitment as then
                in
                effect exceeds (b) the aggregate principal amount of Revolving Loans
                and L/C Obligations then outstanding.

            
	
              “Cash
                Equivalents” shall mean, as to any
                Person:  (a) investments in direct obligations of the
                United States of America or of any agency or instrumentality thereof
                whose
                obligations constitute full faith and credit obligations of the United
                States of America, provided that any such obligations shall mature
                within
                one year of the date of issuance thereof; (b) investments in
                commercial paper rated at least P-1 by Moody’s and at least A-1 by S&P
                maturing within one year of the date of issuance thereof;
                (c) investments in certificates of deposit issued by any Lender or by
                any United States commercial bank having capital and surplus of not
                less
                than $100,000,000 which have a maturity of one year or less;
                (d) investments in repurchase obligations with a term of not more
                than 7 days for underlying securities of the types described in
                clause (a) above entered into with any bank meeting the
                qualifications specified in clause (c) above, provided all such
                agreements require physical delivery of the securities securing such
                repurchase agreement, except those delivered through the Federal
                Reserve
                Book Entry System; and (e) investments in money market funds that
                invest solely, and which are restricted by their respective charters
                to
                invest solely, in investments of the type described in the immediately
                preceding subsections (a), (b), (c), and (d)
                above.

            

    

    

    
      	
              Minimum
                Excess Availability plus Cash plus Cash Equivalents
                Calculation:

            
	
              1.Excess
                Availability

            	
              $___________

            
	
              2.Cash
                on hand of the Borrower

            	
              $___________

            
	
              3.Cash
                Equivalents of the Borrower

            	
              $___________

            
	
              4.Line
                F1 plus Line F2 plus Line F3

            	
              $___________

            
	
              5.Line
                F4 must be greater than or equal to

            	
              $3,000,000

            
	
              6.The
                Borrower is in compliance (circle yes or no)

            	
              yes/no

            

    

    

    

    
      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

    

    

    Exhibit F

     

    Assignment
      and Assumption

     

     

    This
      Assignment and Assumption (the “Assignment and Assumption”) is dated as
      of the Effective Date set forth below and is entered into by and between
[Insert name of Assignor] (the “Assignor”) and
[Insert name of Assignee] (the
“Assignee”).  Capitalized terms used
      but not defined herein
      shall have the meanings given to them in the Credit Agreement identified
      below  (as amended, the “Credit Agreement”), receipt of a
      copy of which is hereby acknowledged by the Assignee.  The Standard
      Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed
      to
      and incorporated herein by reference and made a part of this Assignment and
      Assumption as if set forth herein in full.

     

    For
      an
      agreed consideration, the Assignor hereby irrevocably sells and assigns to
      the
      Assignee, and the Assignee hereby irrevocably purchases and assumes from the
      Assignor, subject to and in accordance with the Standard Terms and Conditions
      and the Credit Agreement, as of the Effective Date inserted by the
      Administrative Agent as contemplated below (i) all of the Assignor’s rights
      and obligations in its capacity as a Lender under the Credit Agreement and
      any
      other documents or instruments delivered pursuant thereto to the extent related
      to the amount and percentage interest identified below of all of such
      outstanding rights and obligations of the Assignor under the respective
      facilities identified below (including any letters of credit, guarantees, and
      swingline loans included in such facilities) and (ii) to the extent
      permitted to be assigned under applicable law, all claims, suits, causes of
      action and any other right of the Assignor (in its capacity as a Lender) against
      any Person, whether known or unknown, arising under or in connection with the
      Credit Agreement, any other documents or instruments delivered pursuant thereto
      or the loan transactions governed thereby or in any way based on or related
      to
      any of the foregoing, including, but not limited to, contract claims, tort
      claims, malpractice claims, statutory claims and all other claims at law or
      in
      equity related to the rights and obligations sold and assigned pursuant to
      clause (i) above (the rights and obligations sold and assigned pursuant to
      clauses (i) and (ii) above being referred to herein collectively as, the
“Assigned Interest”).  Such sale and assignment is without
      recourse to the Assignor and, except as expressly provided in this Assignment
      and Assumption, without representation or warranty by the Assignor.

     

    
      	
               

            	
              1.Assignor:

            

    

     

    
      	
               

            	
              2.Assignee:

            

    

    
      	
               

            	
              [and
                is an Affiliate/Approved Fund of [identify Lender]1]

            

    

     

    
      	
               

            	
              3.Borrower:
                Champion Industries, Inc.

            

    

     

    
      	
               

            	
              4.Administrative
                Agent:  Fifth Third Bank, an Ohio banking corporation, as
                the Administrative Agent under the Credit
                Agreement

            

    

     
      
        

      

    

    1
      Select as applicable.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              5.Credit
                Agreement:  The Credit Agreement dated as of September 14,
                2007, among Champion Industries, Inc., the Lenders parties thereto,
                and Fifth Third Bank, as Administrative Agent and
                L/C Issuer.

            

    

     

    
      	
               

            	
              6.Assigned
                Interest:

            

    

    

    
      	
              Facility
                Assigned2

            	
              Aggregate
                Amount of Commitment/Loans for all Lenders3

            	
              Amount
                of Commitment/Loans Assigned3

            	
              Percentage
                Assigned of Commitment/Loans4

            
	 	
              $

            	
              $

            	
              %

            
	 	
              $

            	
              $

            	
              %

            
	 	
              $

            	
              $

            	
              %

            

    

     

    
      	
               

            	
              [7.Trade
                Date:]5

            

    

     

     
      
        

      

    

    
      1.
        Fill
        in the appropriate terminology for the types of facilities under the Credit
        Agreement that are being assigned under this Assignment (e.g. “Revolving
        Credit Commitment,” “Term Credit,” etc.)

    

      
      2 Amount
        to be adjusted by the counterparties to take into account any payments or
        prepayments made between the Trade Date and the Effective
        Date.

    

      
      3 Set
        forth, to at least 9 decimals, as a percentage of the Commitment/Loans of
        all
        Lenders thereunder.

    

    
       

      5. To
        be completed if the Assignor and the Assignee intend that the minimum assignment
        amount is to be determined as of the Trade Date.

      
 

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

     

    Effective
      Date:   _____________ ___, 20___ [To Be
      Inserted By Administrative Agent And Which Shall Be The Effective Date Of
      Recordation Of Transfer In The Register
      Therefor.]

     

    The
      terms
      set forth in this Assignment and Assumption are hereby agreed to:

     

    
      	
               

            	
              Assignor

            

    

     

    
      	
               

            	
              [Name
                of Assignor]

            

    

     

    
      	
               

            	
              By:

            

    

    
      	
               

            	
              Title:

            

    

     

    
      	
               

            	
              Assignee

            

    

     

    
      	
               

            	
              [Name
                of Assignee]

            

    

     

    
      	
               

            	
              By:

            

    

    
      	
               

            	
              Title:

            

    

     

    Consented
      to and Accepted:

     

    
      	
               

            	
              Fifth
                Third Bank, as Administrative Agent and L/C
                Issuer

            

    

     

    By

    
      	
               

            	
              Title:

            

    

     

    [Consented
      to:]6

     

    [Name
      of Relevant Party]

     

    By

    
      	
               

            	
              Title:

            

    

    

      

    

      
      
        	
                 

              	
                6
                  To be added only if the consent of the Borrower and/or other parties
                  is
                  required by the terms of the Credit
                  Agreement.

              

      

    

    

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

    

    Annex
      1

    

    Standard
      Terms and Conditions for

    Assignment
      and Assumption

     

    
      	
               

            	
              Section 1.Representations
                and Warranties.

            

    

     

    Section 1.1.Assignor.  The
      Assignor (a) represents and warrants that (i) it is the legal and
      beneficial owner of the Assigned Interest, (ii) the Assigned Interest is
      free and clear of any lien, encumbrance or other adverse claim and (iii) it
      has full power and authority, and has taken all action necessary, to execute
      and
      deliver this Assignment and Assumption and to consummate the transactions
      contemplated hereby; and (b) assumes no responsibility with respect to
      (i) any statements, warranties or representations made in or in connection
      with the Credit Agreement or any other Loan Document (ii) the execution,
      legality, validity, enforceability, genuineness, sufficiency or value of the
      Loan Documents or any collateral thereunder, (iii) the financial condition
      of the Borrower, any of its Subsidiaries or Affiliates or any other Person
      obligated in respect of any Loan Document or (iv) the performance or
      observance by the Borrower, any of its Subsidiaries or Affiliates or any other
      Person of any of their respective obligations under any Loan
      Document.

     

    Section 1.2.Assignee.  The
      Assignee (a) represents and warrants that (i) it has full power and
      authority, and has taken all action necessary, to execute and deliver this
      Assignment and Assumption and to consummate the transactions contemplated hereby
      and to become a Lender under the Credit Agreement, (ii) it meets all the
      requirements to be an assignee under Section 10.10(b)(iii) and the
      definition of “Eligible Assignee” of the Credit Agreement (subject to such
      consents, if any, as may be required under Section 10.10(b)(iii) of the
      Credit Agreement), (iii) from and after the Effective Date, it shall be
      bound by the provisions of the Credit Agreement as a Lender thereunder and,
      to
      the extent of the Assigned Interest, shall have the obligations of a Lender
      thereunder, (iv) it is sophisticated with respect to decisions to acquire
      assets of the type represented by the Assigned Interest and either it, or the
      person exercising discretion in making its decision to acquire the Assigned
      Interest, is experienced in acquiring assets of such type, (v) it has
      received a copy of the Credit Agreement, and has received or has been accorded
      the opportunity to receive copies of the most recent financial statements
      delivered pursuant to Section 6.1 thereof, as applicable, and such other
      documents and information as it deems appropriate to make its own credit
      analysis and decision to enter into this Assignment and Assumption and to
      purchase the Assigned Interest, (vi) it has, independently and without
      reliance upon the Administrative Agent or any other Lender and based on such
      documents and information as it has deemed appropriate, made its own credit
      analysis and decision to enter into this Assignment and Assumption and to
      purchase the Assigned Interest, and (vii) if it is not a United States
      person (as such term is defined in Section 7701(a)(30) of the Code)
      attached to the Assignment and Assumption is any documentation required to
      be
      delivered by it pursuant to the terms of the Credit Agreement, duly completed
      and executed by the Assignee; and (b) agrees that (i) it will,
      independently and without reliance on the Administrative Agent, the Assignor
      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 decisions in taking
      or
      not taking action under the Loan Documents, and (ii) it will perform in
      accordance with their terms all of the obligations which by the terms of the
      Loan Documents are required to be performed by it as a Lender.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              Section 2.Payments.

            

    

     

    From
      and
      after the Effective Date, the Administrative Agent shall make all payments
      in
      respect of the Assigned Interest (including payments of principal, interest,
      fees and other amounts) to the Assignor for amounts which have accrued to but
      excluding the Effective Date and to the Assignee for amounts which have accrued
      from and after the Effective Date.

     

    
      	
               

            	
              Section 3.General
                Provisions.

            

    

     

    This
      Assignment and Assumption shall be binding upon, and inure to the benefit of,
      the parties hereto and their respective successors and assigns.  This
      Assignment and Assumption may be executed in any number of counterparts, which
      together shall constitute one instrument.  Delivery of an executed
      counterpart of a signature page of this Assignment and Assumption by telecopy
      shall be effective as delivery of a manually executed counterpart of this
      Assignment and Assumption.  This Assignment and Assumption shall be
      governed by, and construed in accordance with, the law of the State of
      Ohio.

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    Exhibit G

     

    _______________________________________

     

    Borrowing
      Base Certificate

     

    
      	
               

            	
              To:Fifth
                Third Bank, as Administrative Agent under, and the Lenders party
                to, the
                Credit Agreement described below.

            

    

     

    Pursuant
      to the terms of the Credit Agreement dated as of September 14, 2007, among
      us (the “Credit Agreement”), we submit this Borrowing Base Certificate
      to you and certify that the information set forth on Schedule 1 attached hereto
      and on any other attachments to this Certificate is true, correct and complete
      as of the date of this Certificate.

     

    Dated
      as
      of this _________ day of __________.

     

    
      	
               

            	
              Champion
                Industries, Inc.

            

    

     

    
      	
               

            	
              By

            

    

    
      	
               

            	
              Name

            

    

    
      	
               

            	
              Title

            

    

     

    

     

    

     

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

                

                    Schedule 1      
      

                    to
              Borrowing Base
              Certificate      
      

             

                    Champion
              Industries,
              Inc.      
      

             

                    Borrowing
              Base
              Calculations      
      

             

                    for
              Credit Agreement dated as of September __,
              2007      
      

                    
      
    

        

      

    

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 Champion
                  Industries

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Borrowing
                  Base Certificate as of mm/dd/yy

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	
                Charleston

              	 	 	
                Bourque/

              	 	 	
                Carolina

              	 	 	 	
                Blue

              	 	 	 	
                Smith
                  &

              	 	 	
                Herald

              	 	 	 
	 	
                Division

              	
                Huntington

              	
                (CHAS)

              	
                Parkersburg

              	
                Lexington

              	
                Transdata

              	
                Upton

              	
                Dallas

              	
                (CCS)

              	
                US
                  Tag

              	
                Donihe

              	
                Merten

              	
                Ridge

              	
                Interform

              	
                CGC

              	
                Stationers

              	
                Butterfield

              	
                Capitol

              	
                Clarksburg

              	
                Dispatch

              	 	
                Consolidated

              	 
	
                Accounts
                  Recievable

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Prior
                  Month's A/R Balance

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	 	
                +
                  Sales

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	 	
                -
                  Credit Memos

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	 	
                -
                  A/R Collections

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	 	
                +/-
                  Other

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                A/R
                  Aging at mm/dd/yy

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                  Less
                  Ineligibles

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                a.

              	
                Past
                  Due A/R> 120

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                b.

              	
                Credits>120

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                c.

              	
                Cross
                  Aged Accounts

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                d.

              	
                Inter-Company
                  A/R

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                e.

              	
                Customer
                  Deposits

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                f.

              	
                Contras

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                g.

              	
                Dilution
                  Reserve

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                h.

              	
                Prebilling
                  Reserve

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                I.

              	
                Other
                  Reserve

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Total
                  Ineligibles

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                Eligible
                  A/R

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	 	
                Advance
                  Rate

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	
                85%

              	 	
                85%

              	 
	
                Available
                  A/R

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Inventory

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                Consolidated

              	 
	 	
                Raw
                  Materials

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	 	
                Finished
                  Goods

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                RM
                  and FG Inventory at mm/dd/yy

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                  Less
                  Ineligibles

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                a.

              	
                 Section
                  263 A

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                b.

              	
                Perpetual
                  to G/L Rec

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                c.

              	
                Ink

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                d.

              	
                Pallets

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                e.

              	
                Offsite
                  Inventory

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                f.

              	
                Cost
                  Test Reserve

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                g.

              	
                Intransit

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                h.

              	
                Obsolete

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                I.

              	
                Consignment
                  Inventory

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                j.

              	
                Other
                  Reserve

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                Total
                  Ineligibles

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                Eligible
                  RM and FG Inventory

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	 	
                Advance
                  Rate

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	 	
                50%

              	 
	
                Available
                  RM and FG Inventory

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
                WIP
                  Inventory at mm/dd/yy

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                Less
                  Ineligibles

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                a.

              	
                Other
                  Reserve

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                Total
                  Ineligibles

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	
                Eligible
                  WIP Inventory

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	 	
                Advance
                  Rate

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	
                50%

              	 	
                50%

              	 
	
                Available
                  WIP Inventory

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	
                $0

              	 	
                $0

              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                WIP
                  Inventory Availability with Effect of $2,000M Cap

              	
                $0

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Recap
                  of Inventory Availability

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Total
                  FG and RM Inventory Availability

              	
                $0

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Total
                  WIP Inventory Availability

              	
                $0

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Subtotal

              	
                $0

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Inventory
                  Availability with Effect of $6,000M Cap

              	
                $0

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Net
                  Availability

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                A/R
                  Availability

              	
                $0

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Inventory
                  Availability

              	
                $0

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Gross
                  Availability

              	
                $0

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Less:  Outstanding
                  Line of Credit Balance

              	
                Outstanding
                  Line of Credit Balance

              	
                 $                 -

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Less:  Outstanding
                  Swingline Draws

              	
                 $                 -

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Less:  Outstanding
                  Letters of Credit

              	
                Outstanding
                  Letters of Credit

              	
                 $                 -

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Net
                  Collateral Availability

              	
                 $                 -

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Minimum
                  Liquidity Requirement ($3,000M)

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
                Net
                  Collateral Availability

              	
                $0

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
                Cash
                  Equivalents-Specify Instruments

              	
                $0

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
                Cash
                  On Hand-Fifth Third Bank Account

              	
                $0

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
                Cash
                  On Hand-United Bank Account

              	
                $0

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
                Cash
                  On Hand-BB&T Account

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
                Cash
                  On Hand-First Tennessee Bank Account

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Liquidity
                  at mm/dd/yy

              	
                $0

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Schedule 1

     

    Commitments

     

    
      	
              Name
                of Lender

            	
              Term
                Loan Commitment

            	
              Revolving
                Credit Commitment

            
	
              Fifth
                Third Bank

            	
              $______________

            	
              $______________

            
	
              Total

            	
              $70,000,000

            	
              $30,000,000

            

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

                

                           
    

        

      

    

    

    Schedule 5.10

    

    Subsidiaries

    
      	
              Name

            	
              Jurisdiction
                of Organization

            	
              Percentage
                Ownership

            	
              Owner

            
	
              The
                Chapman Printing Company, Inc.

            	
              West
                Virginia (qualified in Kentucky)

            	
              100%

            	
              Champion
                Industries, Inc.

            
	 	 	 	 
	
              Stationers,
                Inc.

            	
              West
                Virginia

            	
              100%

            	
              Champion
                Industries, Inc.

            
	 	 	 	 
	
              Bourque
                Printing, Inc.

            	
              Louisiana

            	
              100%

            	
              Champion
                Industries, Inc.

            
	 	 	 	 
	
              Dallas
                Printing Company, Inc.

            	
              Mississippi

            	
              100%

            	
              Champion
                Industries, Inc.

            
	 	 	 	 
	
              Carolina
                Cut Sheets, Inc.

            	
              West
                Virginia

            	
              100%

            	
              Champion
                Industries, Inc.

            
	 	 	 	 
	
              U.S.
                Tag & Ticket Company, Inc.  FN1

            	
              Maryland

            	
              100%

            	
              Champion
                Industries, Inc.

            
	 	 	 	 
	
              Donihe
                Graphics, Inc.

            	
              Tennessee

            	
              100%

            	
              Champion
                Industries, Inc.

            
	 	 	 	 
	
              Smith
                & Butterfield Co., Inc.

            	
              Indiana

            	
              100%

            	
              Champion
                Industries, Inc.

            
	 	 	 	 
	
              The
                Merten Company

            	
              Ohio

            	
              100%

            	
              Champion
                Industries, Inc.

            
	 	 	 	 
	
              Interform
                Corporation

            	
              Pennsylvania

            	
              100%

            	
              Champion
                Industries, Inc.

            
	 	 	 	 
	
              CHMP
                Leasing, Inc.

            	
              West
                Virginia

            	
              100%

            	
              Champion
                Industries, Inc.

            
	 	 	 	 
	
              Blue
                Ridge Printing Co., Inc.

            	
              North
                Carolina

            	
              100%

            	
              Champion
                Industries, Inc.

            
	 	 	 	 
	
              Capitol
                Business Equipment, Inc.

            	
              West
                Virginia

            	
              100%

            	
              Stationers,
                Inc.

            
	 	 	 	 
	
              Thompson’s
                of Morgantown, Inc.

            	
              West
                Virginia

            	
              100%

            	
              Stationers,
                Inc.

            
	 	 	 	 
	
              Independent
                Printing Service, Inc.

            	
              Indiana

            	
              100%

            	
              Smith
                & Butterfield Co., Inc.

            
	 	 	 	 
	
              Diez
                Business Machines, Inc.

            	
              Louisiana

            	
              100%

            	
              Stationers,
                Inc.

            
	 	 	 	 
	
              Transdata
                Systems, Inc.

            	
              Louisiana

            	
              100%

            	
              Bourque
                Printing, Inc.

            
	 	 	 	 
	
              Syscan
                Corporation

            	
              West
                Virginia

            	
              100%

            	
              Champion
                Industries, Inc.

            
	 	 	 	 
	
              Champion
                Publishing, Inc.

            	
              West
                Virginia

            	
              100%

            	
              Champion
                Industries, Inc.

            

    

     

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

                

                           
    

        

      

    

    

    Schedule 5.25

    

    Purchase
      Agreement

     

    None.Exhibit 4.5

 

                                                                

 

ARTICLES OF AMENDMENT

 

to the

 

ARTICLES OF INCORPORATION

 

of

 

ALABAMA POWER COMPANY

 

                                                                

 

 

Pursuant to, and with the effect provided in, Section 10-2B-6.02 of the Code of Alabama, 1975, as amended (the "Code"), the undersigned company adopts the following Articles of Amendment to its Articles of Incorporation:

 

 

FIRST:    The name of the company is "Alabama Power Company" (the "Company").

 

SECOND:  The following resolutions amending the Company's Articles of Incorporation, as amended, providing for, among other things, the issuance and sale of not more than 8,000,000 shares of Preference Stock (Stated Capital $25 Per Share), not in excess of an aggregate $200 million, in one or more series and establishing each series of the new stock (as defined below), was duly adopted in the manner provided by the Code by the Company's Board of Directors at a meeting held on July 27, 2007, and the Company has determined that it desires to subsequently issue 6,000,000 shares of the Preference Stock, for an aggregate amount of $150 million, shareholder approval therefor not being required:

 

RESOLVED, That the relative rights and preferences of not more than 8,000,000 authorized but unissued shares of undesignated Preference Stock (Stated Capital $25 Per Share) (the "new stock") in those respects in which the shares thereof may vary from the shares of other series of Preference Stock which may now or hereafter be authorized or created shall be as follows: 

 

(1)               The officers of the Company be and hereby are authorized to determine the dividend rate or rates of the new stock, not to exceed 7.5% of the stated capital per annum, from and after the date issued, but only when declared by the Board of Directors and the dividend payment dates shall be the first days of January, April, July and October (the “Dividend Payment Date”) in each year commencing on the applicable Dividend Payment Date succeeding the date of issuance of the new stock. If declared, dividends shall be payable to shareholders of record on a date as may be determined by the Board of Directors.  If any Dividend 

 

 

 

Payment Date is not a business day, the related dividend, if declared, will be paid on the next succeeding business day with the same force and effect as though paid on the Dividend Payment Date, without any increase to account for the period from such Dividend Payment Date through the date of actual payment.

 

(2)               Dividends payable on the new stock shall be non-cumulative and, accordingly, if the Board of Directors of the Company does not declare a dividend or declares less than a full dividend on the new stock for a dividend period, holders of the new stock will have no right to receive a dividend or the full dividend, as the case may be, for the dividend period and the Company will have no obligation to pay a dividend for that dividend period, whether or not the Company pays dividends in full or has sufficient funds to pay dividends in the future.  Dividends payable on the new stock for the initial dividend period and any period less than a full dividend period will be computed on the basis of a 360-day year consisting of twelve 30-day months and the actual number of
days elapsed in such period.

 

(3)               (a)The Company may redeem any or all of the new stock, from time to time, at a redemption price equal to:

 

(i)      if the date on which the shares of the new stock are to be redeemed (the “Redemption Date”) is prior to October 1, 2017 (the “Initial Redemption Date”), the greater of (1) $25.00 per share of the new stock to be redeemed or (2) the sum of the present values of the liquidation amount and the remaining scheduled dividend payments on the shares of the new stock to be redeemed to the Initial Redemption Date (for purposes of this calculation, the $25.00 per share liquidation amount of the new stock is deemed payable on the Initial Redemption Date and the remaining scheduled dividend payments are those dividend payments payable on or before the Initial Redemption Date (presuming full dividends are declared for each Dividend Payment Date) for the period from the Dividend Payment Date immediately preceding the
Redemption Date to the Initial Redemption Date (excluding any accrued and unpaid dividends (whether or not declared) to the Redemption Date)) discounted (for purposes of determining present value) to the Redemption Date on a quarterly basis (assuming a 360-day year consisting of twelve 30-

 

 

day months) at a discount rate equal to the Treasury Yield (as defined below) plus 25 basis points; or

 

(ii)     if the Redemption Date is on or after the Initial Redemption Date, $25.00 per share of the new stock to be redeemed,

 

plus in each case, an amount equal to the amount of the accrued and unpaid dividends (whether or not declared) from the Dividend Payment Date immediately preceding the Redemption Date to but excluding the Redemption Date, but without accumulation of unpaid dividends on the new stock for prior dividend periods.

 

 (b)            In the event the Company shall determine to redeem any or all of the new stock as aforesaid, the Company will give notice of any such redemption to holders of record of the new stock not more than 60 nor less than 30 days prior to the date fixed by the Board of Directors for such redemption.  Failure to give notice to any holder of record of the new stock shall not affect the validity of the proceedings for the redemption of shares of any other holder of record of the new stock being redeemed.

 

 (c)            Notice having been given as herein provided, from and after the Redemption Date, dividends on the new stock called for redemption shall cease to accrue and such new stock called for redemption will no longer be deemed outstanding, and all rights of the holders thereof, other than the right to receive the redemption price as herein provided, will cease.

 

 (d)            Holders of the new stock will have no right to require redemption of any shares of the new stock.

 

 (e)            Any shares of the new stock that are redeemed shall thereafter have the status of authorized but unissued shares of preference stock of the Company undesignated as to series, and may thereafter be reissued by the Board of Directors in the same manner as any other authorized and unissued shares of preference stock.

 

 (f)             If the Company shall deposit on or prior to any date fixed for redemption of the new stock, with any bank or trust company having a capital, surplus and undivided profits aggregating at least fifty million dollars ($50,000,000), as a trust fund, a fund sufficient to redeem the shares called for redemption, with irrevocable instructions and authority to such bank or trust company to pay on and after the date fixed for redemption or such 

 

 

 

earlier date as the Board of Directors may determine, to the respective holders of such shares, the redemption price thereof, then from and after the date of such deposit (although prior to the date fixed for redemption) such shares so called shall be deemed to be redeemed and dividends thereon shall cease to accrue after said date fixed for redemption and such deposit shall be deemed to constitute full payment of said shares to the holders thereof and thereafter said shares shall no longer be deemed to be outstanding, and the holders thereof shall cease to be shareholders with respect to such shares, and shall have no rights with respect thereto except only the right to receive from said bank or trust company payment of the redemption price of such shares without interest.

 

 (g)            In case the holder of any such new stock shall not, within six years after said deposit, claim the amount deposited as above stated for the redemption thereof, the bank or trust company shall upon demand pay over to the Company such amounts so deposited and the bank or trust company shall thereupon be relieved from all responsibility to the holder thereof.  No interest on such deposit shall be payable to any such holder.

 

 (h)            Nothing contained in this paragraph (3) shall limit any legal right of the Company to purchase or otherwise acquire any shares of the new stock.

 

(4)               The amount payable in the event of liquidation shall be $25 per share, plus accrued and unpaid dividends (whether or not declared) for the then current quarterly dividend period, accrued to but excluding the date of such liquidation payment, but without accumulation of unpaid dividends for any prior dividend periods.

 

(5)               The shares of such class shall not be, by their terms, convertible or exchangeable.

 

(6)               The shares of such class shall not be, by their terms, entitled to the benefit of any sinking fund.

 

(7)               Upon the issuance of shares of the new stock, there shall be transferred from the Premium on Capital Stock Account to the Preference Stock Account an amount equal to $24 per share, and thereafter the stated capital of each share of the new stock shall be $25 per share.

 

(8)               The following defined terms used herein shall, unless the context otherwise requires, have the meanings specified below.

 

 

 

 

 

(a)               A “business day” means a day other than (i) a Saturday or Sunday or (ii) a day on which banks in New York, New York are authorized or obligated by law or executive order to remain closed.

 

(b)               “Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the new stock to the Initial Redemption Date that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate securities of comparable maturity to the Initial Redemption Date.

 

(c)               “Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Company obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.

 

(d)               “Independent Investment Banker” means an independent investment banking institution of national standing appointed by the Company.

 

(e)               “Reference Treasury Dealer” means a primary United States Government securities dealer in New York City appointed by the Company.

 

(f)                “Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m. on the third business day in New York City preceding such Redemption Date).

 

(g)               “Treasury Yield” means, with respect to any Redemption Date, the rate per annum equal to the quarterly equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

 

 

 

 

THIRD:  The undersigned officers of the Company pursuant to the authority granted them by the Company’s Board of Directors at a meeting held on July 27, 2007 hereby establish and designate, on behalf of the Company, a series of Preference Stock comprising 6,000,000 shares of 6.45% Series Preference Stock, Non-Cumulative, Par Value $1 Per Share (Stated Capital $25 Per Share) (the "6.45% Series Preference Stock").  Dividends shall be payable upon the 6.45% Series Preference Stock at a rate of 6.45% of the stated capital per annum.

 

 

 

 

IN WITNESS WHEREOF, the undersigned officers of the Company do hereby set their hand and the seal of the Company on the 18th day of September, 2007. 

 

 

 

	
            /s/Art P. Beattie
 	
             

	
            Art P. Beattie
 	
             

	
            Executive Vice President, Chief Financial
 
	
            Officer and Treasurer
 	
             

	
            Alabama Power Company
 	
             

					

 

 

 

	
            /s/Ceila H. Shorts
 	
             

	
            Ceila H. Shorts
 	
             

	
            Assistant Secretary
 	
             

	
            Alabama Power Company
 
				

 

This Instrument was prepared by:

Monica W. Sargent

Balch & Bingham LLP

1901 Sixth Avenue North, Suite 2600

Birmingham, AL  35203

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