Document:

Exhibit
        10.1

       

      Execution
        Copy

    

    
 

    ASSET
      PURCHASE AGREEMENT

     

    THIS
      ASSET PURCHASE AGREEMENT (this “Agreement”),
      dated
      as of November 7,
      2006,
      is by and between SuperCom Ltd., an Israeli corporation (“Seller”)
      and On
      Track Innovations Ltd., an Israeli corporation (“Buyer”).

     

    WHEREAS,
      Buyer desires to purchase certain assets of Seller and to assume certain
      liabilities of Seller in connection with the Acquired Assets and Seller desires
      to sell such assets and assign such liabilities to Buyer, upon the terms and
      conditions set forth herein (the “Asset
      Purchase”);
      and

     

    WHEREAS,
      and contemporaneous with Closing, Seller and Buyer will enter into the Service
      and Supply Agreement, and Buyer will issue to Seller and Seller will purchase
      from Buyer the Restricted Shares pursuant to the terms of this
      Agreement;

     

    NOW,
      THEREFORE, in consideration of the premises and the representations, warranties,
      covenants and agreements contained herein, and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      and
      intending to be legally bound hereby, the parties hereto hereby agree as
      follows: 

     

    ARTICLE
      I  

     

    Certain
      Definitions

     

    As
      used
      herein, unless the context otherwise requires, the following terms (or any
      variant in the form thereof) have the following respective meanings. Terms
      defined below or otherwise herein in the singular shall have a comparable
      meaning when used in the plural, and vice
      versa,
      and the
      reference to any gender shall be deemed to include all genders. Unless otherwise
      defined or the context otherwise clearly requires, terms for which meanings
      are
      provided herein shall have such meanings when used in any Schedule hereto and
      each collateral document and certificate executed or required to be executed
      pursuant hereto or thereto or otherwise delivered, from time to time, pursuant
      hereto or thereto.

     

    “Acquired
      Assets”
means
      all those properties, rights, interests and other tangible and intangible assets
      of Seller, except for the Excluded Assets (as defined below), whether or not
      required to be reflected on a balance sheet prepared in accordance with
      generally accepted accounting principles of Seller, including without
      limitations:

     

    (a)  the
      inventory scheduled in Part 1.1(a) of the Disclosure Schedule;

     

    (b)  the
      equipment scheduled in Part 1.1(b) of the Disclosure Schedule, together with
      all
      existing documentations, drawings, records, instructions, manuals and other
      information related thereto;

     

    (c)  the
      Software Agreements scheduled in Part 1.1(c) of the Disclosure
      Schedule;

     

    (d)  the
      rights of Seller under the Contracts scheduled in Part 1.1(d) of the Disclosure
      Schedule;

     

    (e)  the
      Governmental Authorizations scheduled in Part 1.1(e) of the Disclosure
      Schedule;

     

    
      
        
        

      

      
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    (f)  the
      SuperCom Intellectual Property as scheduled in Part 1.1(f) of the Disclosure
      Schedule, including SuperCom Software (together with its source code and
      compilation modules);

     

    (g)  all
      claims of Seller (including claims for past infringement of Intellectual
      Property), and causes of action of Seller against other Persons (regardless
      of
      whether or not such claims and causes of action have been asserted by Seller),
      and all rights of indemnity, warranty rights, rights of contribution, rights
      to
      refunds, rights of reimbursement and other rights of recovery possessed by
      Seller (regardless of whether such rights are currently exercisable), scheduled
      in Part 1.1(g) of the Disclosure Schedule;

     

    (h)  all
      advertising and promotional materials relating to the Acquired Business;
      and

     

    (i)  all
      books, records, files and data of Seller relating to the Acquired Business
      and
      necessary to its continuance.

     

    “Acquired
      Business”
means
      the portion of Seller’s business, which is specifically and principally
      dedicated to the development, license, sale, distribution, maintenance, or
      support of the IPS activities (in the meaning used by Seller), smartcards,
      ID
      cards and/or tags, plastic cards, passports, passport components, certificates
      and any similar technology, contact and/or contactless technology and any
      similar technology, except for the activities and rights used (and with regard
      to Intellectual Property rights, exclusively used) in the fields specified
      in
      sub sections (i) and (ii) under the definition of the Excluded
      Assets.

     

    “Action”
means
      any action, suit, arbitration, litigation, inquiry, proceeding or investigation
      by or before any court, governmental or other regulatory or administrative
      agency, commission or tribunal.

     

    “Adverse,”
or
      “Adversely”
when
      used in conjunction with “Affect,” “Change” and “Effect” means, with respect to
      Seller, Buyer or other Person, whichever is the obligor in the context to which
      such term applies, any event which could reasonably be expected to (a) adversely
      affect the enforceability of this Agreement by the obligee, or (b) adversely
      affect the obligor’s properties, financial condition or results of operations,
      or (c) impair the obligor’s ability to fulfill its obligations under the terms
      of this Agreement, or (d) adversely affect the aggregate rights and remedies
      of
      the obligee under this Agreement.

     

    “Affiliate”
means,
      with respect to any Person, any other Person controlling, controlled by or
      under
      common control with, such Person, with “control” for such purpose meaning the
      possession, directly or indirectly, of the power to direct or cause the
      direction of the management and policies of a Person, whether through the
      ownership of voting securities or voting interests, by contract or otherwise.
      

     

    “Assumed
      Liabilities”
means
      those liabilities of Seller scheduled on Part 1.2 of the Disclosure Schedule
      (including the Contingent Liabilities). 

     

    “Bill
      of Sale“
has
      the
      meaning assigned to it in Section 2.2(a) below.

     

    “Buyer’s
      Assumed Employees”
means
      employees of Seller as the date hereof, specified in Schedule
      I.
      

     

    
      
        
        

      

      
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    “Buyer
      SEC Reports“
has
      the
      meaning assigned to it in Section 4.4(a) below.

     

    “Closing”
means
      the consummation of the transactions contemplated by Section 2.1 of this
      Agreement.

     

    “Closing
      Date”
means
      the date on which the conditions set forth in Articles VII and VIII hereof
      shall
      be satisfied or duly waived, or if Seller and Buyer mutually agree on a
      different date for the Closing, the date upon which they have mutually
      agreed.

     

    “Closing
      Documents”
has
      the
      meaning assigned to it in Section 2.2(b) below.

     

    “Contingent
      Liabilities”
means,
      those Liabilities of Seller as of the date of this Agreement to the extent
      not
      satisfied by Seller by the Closing Date (pursuant to their original terms),
      a
      list of which is scheduled in Part 1.2 of the Disclosure Schedule, plus each
      of
      the Liabilities incurred by Seller prior to Closing in the Ordinary Course
      of
      Business. 

     

    “Contract”
means
      any written note, bond, mortgage, indenture, lease, contract, instrument,
      license, agreement, sales order, purchase order, open bid or other obligation
      or
      commitment and all rights therein.

     

    “Disclosure
      Schedule”
means
      the schedule (dated as of the date of the Agreement) delivered to Buyer on
      behalf of Seller, a copy of which is attached hereto and incorporated herein
      by
      reference.

     

    “Entity”
means
      any Person other than a natural Person.

     

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

     

    “Excluded
      Assets”
means,
      all of Seller's and its Affiliate's business activities, assets and rights,
      including IP rights, used in the following fields: (i) Tracking solutions based
      on active RF tags; (ii) IRMS systems (formerly known as SDSMS); and (iii) the
      Existing Projects, as defined herein. For the avoidance of doubt,
      notwithstanding anything to the contrary herein, none of the assets described
      in
      clauses (a) to (i) of the definition of Acquired Assets shall be deemed as
      Excluded Assets.

     

    “Existing
      Projects“
means
      all projects listed in Part 1.3 of the Disclosure Schedule, including inventory
      related thereto, but excluding the Intellectual Property rights related thereto.
      

     

    “Facility”
means
      the premises under lease pursuant to the Lease. 

     

    “Governmental
      Authority”
means
      any nation or government, any state or other political subdivision thereof,
      any
      federal, state, local or foreign Entity exercising executive, legislative,
      judicial, regulatory or administrative functions of or pertaining to government,
      including any government authority, agency, department, board, commission,
      or
      instrumentality of the United States, any state of the United States or
      political subdivision thereof, and any tribunal or arbitral authority of
      competent jurisdiction, and any self-regulatory organization.

     

    
      
        
        

      

      
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    “Governmental
      Authorizations”
means,
      with regard to any Person, all approvals, concessions, consents, franchises,
      licenses, permits, plans, registrations and other authorizations of all
      Governmental Authorities.

     

    “Indemnification
      Period”
has
      the
      meaning assigned to it in Section 9.1(a) below. 

     

    “Intellectual
      Property”
means
      all intellectual property rights, including, without limitation, Patents with
      respect to a design or an invention, including patents and certificates of
      addition, utility models, and patent applications, as well as, any continuation,
      division, extension, renewal, revival, or reissue thereof or substitution
      therefore; Trademarks; Copyrights; Trade Secrets, including any (i) information
      which is currently in Seller’s possession and used, compiled or produced by the
      Seller for its commercial activity,
      such
      as,
      for example, components supply and cost information, marketing plans, customer
      lists, sales leads, competitor analyses, active transaction files, business
      plans, business contacts, files, books, records and instruments, to the extent
      exist, (ii) information which is currently in Seller’s possession that generally
      facilitates its activity, increases its revenues, or provides an advantage
      over
      the competition and is not generally known, to the extent exists, and (iii)
      any
      material currently in Seller’s possession which embodies or describes the Seller
      and its activity; Know-How including, without limitation all factual knowledge
      and information currently in Seller’s possession which is not capable of
      precise, separate description but which, in an accumulated form, after being
      acquired as a result of trial and error, gives to the one acquiring it the
      ability to produce and market something which one otherwise would not have
      known
      how to produce and market with the same accuracy or precision necessary for
      commercial success that Seller owns or is licensed to use or has in it's
      control; Technology including impositions, articles of manufacture, processes,
      apparatus, data, writings and works of authorship (including, without
      limitation, software, protocols, program codes, audio-visual effects created
      by
      program code, and documentation relating thereto); drawings and other tangible
      items (including, without limitation, materials, samples, components, and
      operating devices, e.g., board assemblies, prototypes, and engineering models),
      all of which are in Seller’s possession at the date hereof.

     

    “Key
      Employees”
has
      the
      meaning assigned to it in Section 3.17(a) below. 

     

    “Law”
means
      any statute, regulation, ordinance, rule, edict, resolution, principle of common
      law, treaty, convention, determination or decision and other law promulgated,
      issued, enacted, adopted, passed, approved or otherwise put into effect by
      a
      Governmental Authority.

     

    “Lease”
means
      that certain Lease Agreement, dated as of April 18 2005 by and between Seller
      and Somat Hasharon Ltd. 

     

    “Liability”
means
      any debt, obligation, duty or liability of any nature (including any unknown,
      undisclosed, unmatured, unaccrued, unasserted, contingent, indirect,
      conditional, implied, vicarious, derivative, joint, several or secondary
      liability), regardless of whether such debt, obligation, duty or liability
      would
      be required to be disclosed on a balance sheet prepared in accordance with
      generally accepted accounting principles and regardless of whether such debt,
      obligation, duty or liability is immediately due and payable.

     

    “Lien”
means
      a
      restriction on voting or transfer, or a pledge, lien, mortgage, hypothecation,
      collateral assignment, encumbrance, easement or security interest.

     

    “Lock-Up
      Agreement”
means
      that certain Lock-Up Agreement, dated as of the Closing Date, between Seller
      and
      Buyer, in the form attached hereto as Exhibit A.

     

    
      
        
        

      

      
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    ”Machines”
means
      those machines scheduled in Part 1.4 of the Disclosure Schedule.

     

    “Options”
      has
      the
      meaning assigned to it in Section 4.3(b) below.

     

    “Orders”
means
      judgments, orders, injunctions, decrees, stipulations or awards (whether
      rendered by a court, administrative agency, arbitrator or other tribunal and
      whether imposed or entered by consent).

     

    “Ordinary
      Course of Business” means
      any
      action taken by or on behalf of Seller that is: 

     

    (a)  recurring
      in nature, consistent with the past practices of Seller and taken in the
      ordinary course of the normal day-to-day operations of Seller; 

     

    (b)  not
      required to be authorized or reauthorized by the shareholders of Seller, the
      board of directors of Seller or any committee of the board of directors of
      Seller; and 

     

    (c)  notwithstanding
      the foregoing, with regard to Liabilities incurred by the Seller between the
      date of this Agreement and the Closing Date, such Liabilities shall be deemed
      as
      part of the Ordinary Course of Business, as long as they do not exceed $20,000
      individually and $150,000 in the aggregate until December 31st
      2006,
      and $300,000 for the entire period. 

     

    “Ordinary
      Shares“
means
      Ordinary Shares, par value NIS 0.10 each, of Buyer.

     

    “Other
      Seller Businesses”
means
      all operations, activities and businesses conducted or committed to on or before
      the Closing Date, and all reasonably related activities conducted thereafter,
      by
      Seller, or any of its Affiliates, other than the operations and activities
      of
      Seller in connection with the Acquired Business.

     

    “Person”
means
      an individual, a corporation, a limited liability company, a partnership, an
      association, a trust or any other entity or organization, including a
      Governmental Authority.

    

    “Registration
      Rights Agreement”
means
      that certain Registration Rights Agreement, dated as of the Closing Date,
      between Seller and Buyer, in the form attached hereto as Exhibit B.

    

    “Regulation
      S”
means
      Regulation S under the Securities Act.

    

    “Restricted
      Shares”
means
      2,827,200 Ordinary Shares, par value NIS 0.10 each of Buyer, to be issued to
      Seller at Closing. 

     

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

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended. 

     

    “Service
      and Supply Agreement”
means
      that certain Service and Supply Agreement dated as of the Closing Date between
      Seller and Buyer, in substantially the form attached hereto as Exhibit C.

     

    
      
        
        

      

      
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    “SuperCom
      Contracts”
means
      the Contracts listed as Acquired Assets in Part 1.1(d) of the Disclosure
      Schedule.

     

    “SuperCom
      Intellectual Property”
has
      the
      meaning assigned to it in Section 3.11(a) below.

     

    “SuperCom
      Software”
has
      the
      meaning assigned to it part 1.1(h) to the Disclosure Schedule.

     

    “Taxes”
means
      all taxes (whether federal, state, local or foreign) based upon or measured
      by
      income (whether gross, net, alternative taxable or other) and any other tax
      whatsoever, including, but not limited to, gross receipts, profits, sales,
      use,
      occupation, value added, ad valorem, transfer, franchise, withholding, payroll,
      employment, excise or property taxes, together with any interest, penalties
      or
      additions imposed with respect thereto.

     

    “Transaction
      Documents”
means:
      (a) this Agreement; (b) the Service and Supply Agreement; (c) the Registration
      Rights Agreement; (d) the Bill of Sale; and (e) the other agreements and
      documents contemplated hereby. 

     

    ARTICLE
      II  

     

    Sale
      of Assets; Closing

     

    Section
      2.1  Purchase
      and Sale

     

    (a)  On
      the
      basis of the representations, warranties, covenants and agreements and subject
      to the satisfaction or waiver of the conditions set forth herein, at the
      Closing, against the issuance of the Restricted Shares free and clear of all
      Liens, Buyer will purchase from Seller and Seller will sell, convey, transfer,
      assign and deliver to Buyer, free and clear of all Liens, the Acquired Assets
      at
      Seller’s premises, and Seller will assign and Buyer will assume and agree to
      pay, satisfy and discharge when due in accordance with their terms any and
      all
      Assumed Liabilities. All transactions at the Closing shall be deemed to be
      effective as of the close of business on the Closing Date, and events taking
      place and periods ending thereafter shall be deemed to have taken place or
      ended
      after the Closing Date.

     

    (b)  Seller
      shall retain all rights with respect to the Excluded Assets and Buyer shall
      have
      no rights with respect to the Excluded Assets.

     

    (c)  Seller
      shall retain all rights, liabilities and obligations related to the Acquired
      Assets and the Acquired Business, the due date of which is prior to the Closing
      Date. 

     

    Section
      2.2  Closing
      Documents
      At the
      Closing:

     

    (a)  Seller
      shall assign and transfer to Buyer the Acquired Assets, and Buyer shall assume
      from Seller the due payment, performance and discharge of the Assumed
      Liabilities by delivery of (i) a General Assignment, Assumption and Bill of
      Sale
      in form and substance reasonably satisfactory to Seller and Buyer (the
“Bill
      of Sale”),
      duly
      executed by Seller and Buyer, (ii) all such other good and sufficient
      instruments of conveyance, assignment and transfer, and such affidavits and
      other instruments in form and substance as shall be effective to transfer to
      Buyer the Acquired Assets, and (iii) all such other good and sufficient
      instruments of assumption as shall be effective to cause Buyer to assume the
      Assumed Liabilities.

     

    
      
        
        

      

      
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    Buyer
      shall issue the Restricted Shares to Seller, and shall, in such denominations
      as
      may reasonably be requested by Seller, deliver one or more share certificates
      evidencing the issuance of the Restricted Shares to Seller.

    

    (b)  Seller
      and Buyer shall deliver the certificates and other documents required to be
      delivered under Articles VII and VIII hereof (together with the other documents
      specified in Section 2.2(a), the “Closing
      Documents”).

     

    Section
      2.3  Time
      and Place of Closing
      The
      Closing shall take place on the Closing Date at 10:00 a.m. (Israel time), at
      the
      offices of Zysman, Aharoni, Gayer & Co., Law Offices, 52A Hayarkon St., Tel
      Aviv, or such other place or time as the parties may agree.

     

    Section
      2.4  Nonassignable
      Contracts
      Anything
      in this Agreement to the contrary notwithstanding, this Agreement shall not
      constitute an agreement to assign any claim or obligation imposed by Contract
      or
      Law or Governmental Authorization, or any claim, right or benefit arising
      thereunder or resulting therefrom, if the Asset Purchase would be deemed an
      attempted assignment thereof without the required consent of a third party
      thereto or Governmental Authority, as the case may be, and would constitute
      a
      breach thereof or in any way affect the rights of Seller or Buyer thereunder.
      If
      such consent is not obtained, or if the consummation of the Asset Purchase
      would
      affect the rights of Seller thereunder so that Buyer would not in fact receive
      the benefit of all such rights, Seller shall cooperate with Buyer in any
      arrangement designed to provide for the benefits thereof to Buyer, including
      subcontracting, sublicensing or subleasing to Buyer or enforcement for the
      benefit of Buyer of any and all rights of Seller against a third party thereto
      arising out of the breach or cancellation by such third party or otherwise;
      and
      any assumption by Buyer of obligations thereunder whether by operation of Law
      or
      otherwise in connection with the Asset Purchase which shall require the consent
      or approval of any third party shall be made subject to such consent or approval
      being obtained. 

     

    ARTICLE
      III  

     

    Representations
      and Warranties of Seller

     

    Seller
      hereby represents and warrants to Buyer as follows:

     

    Section
      3.1  Incorporation;
      Authorization; Capitalization; Etc.

     

    (a)  Seller
      is
      an Israeli corporation. Seller is duly organized and validly existing, and
      qualified to transact business in each jurisdiction in which the nature of
      property owned or leased by Seller or the conduct of its business requires
      it to
      be so qualified, except where the failure to be in good standing or to be duly
      qualified to transact business, does not have a material Adverse Affect on
      the
      Acquired Assets.

     

    
      
        
        

      

      
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    (b)  Seller
      has all requisite power and authority (corporate and other) to own the Acquired
      Assets, to execute and deliver this Agreement and to consummate the transactions
      contemplated hereby. The execution and delivery of the Transaction Documents
      and
      the consummation of the transactions contemplated thereby have been duly and
      validly authorized by all necessary corporate proceedings on the part of Seller.
      The execution, delivery and performance of this Agreement and the consummation
      of the transactions contemplated hereby will not (i) violate any provision
      of
      Seller’s Articles of Association, or (ii) violate any provision of, or be an
      event that is (or with the giving of notice or the passage of time will result
      in) a violation of, or result in the acceleration of or entitle any Person
      to
      accelerate (whether after the giving of notice or lapse of time or both) any
      obligation under, or result in the imposition of any Lien upon (except such
      Liens as do not interfere with current use of) any of the Acquired Assets
      pursuant to, any Contract or Order to which Seller is a party or by which it
      is
      bound that, in the case of clause (ii), would, reasonably expected to have
      a
      material Adverse Effect on the Acquired Assets. This Agreement has been duly
      executed and delivered by Seller, and, assuming the due execution hereof by
      Buyer, this Agreement constitutes the legal, valid and binding obligation of
      Seller, enforceable against Seller in accordance with its terms.

     

    Section
      3.2  Title
      to Assets
      Except
      as set forth in Part 3.2 of the Disclosure Schedule, Seller owns and has good
      title to the Acquired Assets, free and clear of all Liens, and Seller will
      deliver the same to Buyer at the Closing, free and clear of all Liens. Except
      as
      set forth in Part 3.2 of the Disclosure Schedule, the Acquired Assets
      collectively constitute all of the properties, rights, Government
      Authorizations, interests and other tangible and intangible assets employed
      or
      relied upon by Seller to conduct the Acquired Business as conducted and as
      proposed to be conducted.

     

    Section
      3.3  Reserved
      

     

    Section
      3.4  Compliance
      with Laws
      (a)
      Except as set forth in Part 3.4 of the Disclosure Schedule and except for
      violations or failures, if any, that do not have a material Adverse Effect:
      (a)
      Seller is in material compliance with each Law that is applicable to the
      Acquired Business or to Seller’s ownership or use of any of the Acquired Assets;
      and (b) Seller has not received any notice in writing or, to its knowledge,
      otherwise from any Governmental Authority regarding any actual or alleged
      violation of, or failure to comply with, any Law that is applicable to the
      Acquired Business or to Seller’s ownership or use of any of the Acquired Assets.
      This Section does not relate to employee benefit matters to which Section 3.17
      is applicable.

     

    Section
      3.5  Consents,
      Approvals, Other Authorizations
      Except
      as set forth in this Agreement, no filing with, notice to or authorization,
      consent or approval of, any Governmental Authority is required to be made,
      filed, given or obtained by Seller or any of its Affiliates, in connection
      with
      the consummation of the Asset Purchase, except as set forth in Part 3.5 of
      the
      Disclosure Schedule and except for those that the failure to make, file, give
      or
      obtain which are not expected to have a material Adverse Effect on the Acquired
      Assets. There is no material Governmental Authorization required of Seller
      that
      is required and that it has not obtained in connection with its conduct of
      the
      Acquired Business as conducted.

     

    Section
      3.6  Insurance
      Seller
      is adequately insured or has been self-insured against all risks and liabilities
      with respect to the Acquired Assets. No insurance policies or benefits
      thereunder are included in the Acquired Assets.

     

    
      
        
        

      

      
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    Section
      3.7  Machines
      Seller
      has provided Buyer with all existing documentations, drawings, records,
      instructions, manuals and other information in writing in connection with the
      Machines, sufficient for the assembly, construction and maintenance of the
      Machines by a third party without prior experience with the assembly,
      construction and maintenance of such machines. 

     

    Section
      3.8  Reserved.

     

    Section
      3.9  Customers;
      Distributors
      Seller
      has not, to its knowledge, received any notice in writing from any customer
      that
      is a party to SuperCom Contract or anyone else who is considered a significant
      customer in connection with the Acquired Assets stating its intent to terminate
      or significantly reduce its use under SuperCom Contract or the Acquired Assets.
      Included in the SuperCom Contracts are all Contracts into which Seller has
      entered providing for the license and distribution of the SuperCom Software
      to
      customers.

     

    For
      purposes of this section 3.9, a "significant" customer means a customer that
      generates to Seller a yearly income that exceeds U.S. $ 150,000.

     

    Section
      3.10  Inventory
      Except
      as scheduled in Part 3.10 of the Disclosure Schedule, the inventory scheduled
      in
      Part 1.1(a) of the Disclosure Schedule is of such quality and quantity as to
      be
      usable and saleable by Seller in the Ordinary Course of Business. 

     

    Section
      3.11  Equipment,
      Etc.
      Except
      as scheduled in Part 3.11 of the Disclosure Schedule, the Equipment scheduled
      in
      Part 1.1(b): (i) is structurally sound, free of material defects and
      deficiencies and in good repair (ordinary wear and tear excepted); and (ii)
      is
      adequate for the uses to which it is being put by Seller. 

     

    Section
      3.12  Real
      Property
      Seller
      does not own or hold under lease any real property or interest therein, except
      for the Facility, the primary use of which is to support the Acquired Business.
      With respect to the Lease: (i) the Lease is in full force and effect; (ii)
      Landlord (as defined in the Lease) is not in default or breach of any of
      Landlord’s material obligations under the Lease and Seller has no claims against
      Landlord under the Lease; (iii) no agreements exist which modify, surrender
      or
      rescind the Lease or affect the premises, by and between Seller and Buyer;
      (iv)
      the Annual Base Rent (as defined in the Lease) and all additional rent due
      until
      the Closing Date have been or shall be paid through and including the Closing
      Date; and (v) Seller has not assigned, encumbered, pledged or mortgaged in
      any
      way whatsoever the leasehold interest of Seller thereby assigned.

     

    Section
      3.13  Intellectual
      Property 

     

    (a)  Part
      3.13
      of the Disclosure Schedule lists all patents, patent applications, registered
      trademarks and applications thereof, registered servicemarks and applications
      therefore registered maskworks and application therefore, and registered
      copyrights and applications therefore that (i) are owned by Seller as of the
      date of this Agreement, and (ii) are used or held for use in the conduct of
      the
      Acquired Business as conducted by Seller as of the date of this Agreement and
      as
      proposed to be conducted (“SuperCom Intellectual Property”).

     

    (b)  Without
      derogating from the foregoing in this Agreement, except as set forth in Part
      3.13(b) of the Disclosure Schedule, there are, as of the date of this Agreement,
      no restrictions on Seller’s right to assign the SuperCom Intellectual Property
      which Seller is required to assign to Buyer pursuant to this Agreement free
      and
      clear of all Liens.

     

    
      
        
        

      

      
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    (c)  Except
      as
      otherwise set forth in Part 3.13(c) of the Disclosure Schedule and except for
      any claims which have been previously resolved and are no longer outstanding
      or
      which were made more than four (4) years prior to the date of this Agreement
      and
      which have not been subsequently pursued, to Seller’s knowledge, as of the date
      hereof, Seller has not received any written claim from any third party alleging
      infringement of said third party’s Intellectual Property which is based on the
      use of the SuperCom Intellectual Property in connection with the conduct of
      the
      Acquired Business and which would reasonably be expected to have a material
      Adverse Effect on the Acquired Business as conducted by Seller as of the date
      hereof and as Seller may be required to conduct pursuant to the Potential
      Projects (as defined in the Service and Supply Agreement). 

     

    (d)  Upon
      Closing, Buyer shall have the same rights as possessed by the Seller as of
      the
      date hereof to use, hold for use or otherwise exploit, to the fullest extent
      permitted by law, all SuperCom Intellectual Property.

     

    (e)  To
      the
      Seller’s knowledge, the use of the SuperCom Intellectual Property in the conduct
      of the Acquired Business as conducted as of the date hereof and as proposed
      to
      be conducted does not infringe any enforceable patent where such infringement
      would reasonably be expected to have an Adverse Effect on the Acquired Business
      and Seller has not received any notice of such infringement.

     

    (f)Except
      as
      set forth on Part 3.13(f) of the Disclosure Schedule and except for claims
      that
      have previously been resolved or that were made more than four (4) years prior
      to the date of this Agreement and were not subsequently pursued during the
      four
      (4) year period prior to the date of this Agreement, Seller has not made any
      written claim to any third party alleging infringement of SuperCom Intellectual
      Property, where such infringement would reasonably be expected to have an
      Adverse Effect on the Acquired Business as conducted by Seller as of the date
      hereof.

     

    (g)Except
      as
      set forth on Part 3.13(f) of the Disclosure Schedule, there is no action, suit
      or proceeding pending and served or, to Seller’s knowledge, threatened in
      writing which challenges the validity, enforceability or ownership of any
      SuperCom Intellectual Property, .

     

    (h)
      No
      portion of SuperCom
      Intellectual Property
      and
      SuperCom Software is subject to any open source license that requires disclosure
      of any source code included in or used in connection with the generation of
      SuperCom
      Intellectual Property
      and the
      SuperCom Software as a result of any distribution thereof. To the extent that
      any portion of SuperCom Software includes software that was licensed from a
      third party pursuant to a certain license, Seller is in compliance with all
      material terms and condition of such license. The execution, delivery and
      performance of this Agreement will not result in the breach of, or create on
      behalf of any third party the right to terminate or modify, any material
      license, sublicense or other agreement relating to any SuperCom Software or
      any
SuperCom
      Intellectual Property.

     

    
      
        
        

      

      
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    (i)To
      Seller’s knowledge, the Intellectual Property assigned to Buyer pursuant to this
      Agreement constitutes all Intellectual Property used in connection with the
      Acquired Business as conducted prior to and until the Closing Date, and as
      proposed to be conducted at the Closing Date that (i) is owned by Seller as
      of the date of this Agreement, (ii) is used or has application in the
      Acquired Business as conducted by Seller as of the date of this Agreement and
      as
      proposed to be conducted, provided, however, that, within two years of the
      Closing Date, if either Seller or Buyer shall discover and identify any
      Intellectual Property owned by Seller at Closing, which has any application
      to
      the Acquired Business as it is conducted on the Closing Date or proposed to
      be
      conducted at such time, then Seller shall amend the list set forth in Part
      3.13
      of the Disclosure Schedule to include such Intellectual Property and shall
      take
      all necessary actions to assign such Intellectual Property. The parties further
      agree that within two years of the Closing Date, if Seller or Buyer shall
      discover and identify any Intellectual Property owned by Seller at Closing,
      which has any application to the Acquired Business as it is conducted on the
      Closing Date or proposed to by conducted at such time and such Intellectual
      Property also has been used within or has application to Other Seller
      Businesses, Seller shall grant to Buyer a non-exclusive, royalty-free license
      with a right to sublicense (and in a case of a merger, consolidation or sale
      of
      substantially all the assets of Buyer, the right to transfer) such Intellectual
      Property solely for use in connection with the Acquired Assets or Acquired
      Business. 

     

    (j)Except
      as
      set forth in Part 3.13(j) of the Disclosure Schedule, to Seller’s knowledge, it
      has not, prior to the date hereof, materially infringed upon any copyrighted
      material or breached any confidentiality obligation to any third party with
      respect to any trade secrets which copyrighted material or trade secret is
      incorporated in the SuperCom Software as of the date hereof exists and where
      such infringement or breach shall have a material Adverse Effect on the Acquired
      Business.

     

    (k)Except
      as
      set forth
      in
Part
      3.13(k) of the Disclosure Schedule,
      (i) the
      source code to SuperCom
      Software has
      not
      been disclosed to any third party and/or (ii) the Seller is not subject to
      any
      obligation to disclose such source code pursuant to any source code escrow
      or
      other agreements.

     

    Section
      3.14  Contracts

     

    (a)  Part
      1.1(d) of the Disclosure Schedule provides an accurate list of each material
      Contract used primarily in support of or furtherance of the Acquired Business.
      Seller has delivered to Buyer accurate and complete copies of all SuperCom
      Contracts identified in Part 1.1(d) of the Disclosure Schedule, including all
      amendments thereto and. Each SuperCom Contract is in full force and effect.
      

     

    (b)  Except
      as
      set forth in Part 3.14(b) of the Disclosure Schedule or as would not result
      in a
      material Adverse Effect: (i) to Seller’s knowledge, no Person has violated or
      breached, or declared or committed any material default under, any SuperCom
      Contract; (ii) no event has occurred, and no circumstance or condition exists
      (including the consummation of the transactions set forth in the Agreement),
      that might (with or without notice or lapse of time) (A) result, to Seller’s
      knowledge, in a material violation or material breach of any of the provisions
      of any SuperCom Contract by either Seller or any other Person who is a party
      to
      such SuperCom Contract, (B) give any obligee under a SuperCom Contract the
      right
      to accelerate the maturity or performance of any SuperCom Contract, or (C)
      give
      any obligee under a SuperCom Contract the right to cancel, terminate or modify
      any SuperCom Contract; (iii) Seller has not received any notice or other
      communication (in writing) regarding any actual, alleged, possible or potential
      violation or breach of, or default under, any SuperCom Contract; and (iv) Seller
      has not waived any material right under any SuperCom Contract.

     

    
      
        
        

      

      
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    (c)  Part
      3.14(c) of the Disclosure Schedule lists all material ongoing support and
      maintenance obligations of Seller, not otherwise reflected in the SuperCom
      Contracts, in connection with the SuperCom Software.

     

    Section
      3.15  Liabilities
      Seller
      has no Liabilities constituting Assumed Liabilities, except those scheduled
      in
      Part 1.2 of the Disclosure Schedule or obligations under the SuperCom Contracts
      that arise after the Closing Date (except for such obligations thereunder that
      are not ascertainable by reference to such Contracts).

     

    Section
      3.16  Reserved

     

    Section
      3.17  Employee
      and Labor Matters

     

    (a)  Part
      3.17
      of the Disclosure Schedule sets forth all employees of Seller engaged directly
      or indirectly in the Acquired Business (the “Key
      Employees”,
      and
      all such Key Employees agreeing to offer of employment from Buyer shall be
      referred to as (“Assumed
      Employees”))
      and
      with respect to each such Key Employee lists: (i) the name and title of such
      employee; (ii) the aggregate NIS amounts of the compensation (including wages,
      salary, commissions, other benefits such as bonuses, car, phone, etc.) received
      by such employee from Seller with respect to services performed in the twelve
      month period prior to the Closing Date. Seller is current on all obligations
      to
      the Key Employees. Except as disclosed on Part 3.17(a) of the Disclosure
      Schedule, the Key Employees constitute substantially all the employees employed
      by Seller for the purpose of conducting the Acquired Business as of the date
      hereof. Except as set forth in Part 3.17 of the Disclosure Schedule, Seller
      is
      not a party to or bound by, any employment contract or any union contract,
      collective bargaining agreement or similar contract related to the Acquired
      Business, other than those with general application to all employees in
      Israel.

     

    (b)  No
      Key
      Employee, to Seller’s knowledge, has received within the six months prior to the
      date hereof, an offer to join a business that may be competitive with the
      Acquired Business. To Seller’s knowledge, no employee of Seller is a party to or
      is bound by any confidentiality agreement, non-competition agreement or other
      Contract (with any Person) that prevents the performance by such Key Employee
      of
      any of his material duties or responsibilities as an employee of Seller related
      to the Acquired Business.

     

    (c)  Part
      3.17(c) of the Disclosure Schedule sets forth the name of, and a general
      description of the services performed by each independent contractor to whom
      Seller has made any payment in excess of $50,000
      since June 30, 2004, for the purpose of conducting the Acquired
      Business.

     

    Section
      3.18  Deleted

     

    Section
      3.19  Sale
      of Products
      Each
      product that has been sold by Seller in connection with the Acquired Business
      to
      any Person conformed and complied in all material respects with the terms and
      requirements of any applicable warranty or other Contract. No product
      manufactured or sold by Seller in connection with the Acquired Business has
      been
      the subject of any recall or other similar action; and no event has occurred,
      and no condition or circumstance exists, that, to Seller’s knowledge, might
      (with or without notice or lapse of time) give rise to or serve as a basis
      for
      any such recall or other similar action relating to any such product.

     

    
      
        
        

      

      
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    Section
      3.20  Performance
      Of Services
      All
      services that have been performed on behalf of Seller for the purpose of
      supporting or furthering the Acquired Business were, to Seller’s knowledge,
      performed in material compliance with the Contracts applicable thereto.

     

    Section
      3.21  Actions;
      Orders
      Except
      as set forth in Part 3.21 of the Disclosure Schedule, there is no pending
      Action, and, to Seller’s knowledge, no Person has threatened (in writing) to
      commence any Action: (i) that involves the Acquired Business or that otherwise
      relates to or would materially Adversely Affect the Acquired Business or the
      Acquired Assets (whether or not Seller is named as a party thereto); or (ii)
      that challenges, or that may have the effect of preventing, delaying, making
      illegal or otherwise interfering with, any of the transactions contemplated
      hereby. Seller has delivered to Buyer accurate and complete copies of all
      pleadings, correspondence and other written materials possessed by Seller that
      relate to the Actions identified in Part 3.21 of the Disclosure Schedule. Except
      as identified in Part 3.21 of the Disclosure Schedule, there is no Order to
      which the Acquired Business, or any of the Acquired Assets owned or used by
      Seller, is subject. To the knowledge of Seller, no Key Employee is subject
      to
      any Order that materially prohibits such Key Employee from engaging in or
      continuing for Buyer any practice, conduct or activity currently engaged in
      for
      Seller. This Section does not relate to Intellectual Property matters, as to
      which Section 3.13 is applicable.

     

    Section
      3.22  Non-Contravention;
      Consents 

     

    (a)
      Except
      as
      set forth in Part 3.22 of the Disclosure Schedule or except as would not result
      in an Adverse Effect, neither the execution and delivery of any of the
      Transaction Documents, nor the consummation or performance of any of the
      transactions contemplated hereby, will directly or indirectly (with or without
      notice or lapse of time):

     

    (i)  give
      any
Governmental
      Authority or other Person the right to prevent or delay the consummation of
      any
      of the transactions contemplated hereby;

     

    (ii)  contravene,
      conflict with or result in a violation of any of the terms or requirements
      of,
      or give any Governmental Authority the right to revoke, withdraw, suspend,
      cancel, terminate or modify, any Governmental Authorization that is to be
      included in the Acquired Assets;

     

    (iii)  constitute
      a material violation or breach of, or result in a material default under, any
      provision of any Contract that is to be included in the Acquired Assets;

     

    (iv)  result
      in
      the imposition or creation of any Lien upon or with respect to any of the
      Acquired Assets; and

     

    (v)  give
      any
      obligee the right to declare a default under, or to cancel, terminate or modify,
      any SuperCom Contract, or to accelerate the maturity or performance
      thereof.

     

    (b)
       Except
      as
      set forth in Part 3.5 or Part 3.22 of the Disclosure Schedule Seller is not
      or
      will not be required, to make any filing with or give any notice to, or to
      obtain any consent from, any Person in connection with the execution and
      delivery of any of the Transaction Documents or the consummation or performance
      of any of the transactions contemplated hereby.

     

    
      
        
        

      

      
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    Section
      3.23  Investment
      Representations
      Seller
      understands that the Restricted Shares have not been registered under the
      Securities Act. Seller also understand that the Restricted Shares are being
      offered and sold pursuant to an exemption from registration contained in the
      Securities Act based in part upon Seller’s representations contained in the
      Agreement. Seller hereby represents and warrants as follows:

     

    (a)  It
      is
      acquiring the Restricted Shares for its own account for investment only, and
      not
      with a view towards their distribution.

     

    (b)  It
      represents that by reason of its, or of its management’s, business or financial
      experience, it has the capacity to protect its own interests in connection
      with
      the transactions contemplated hereunder. Further, it is aware of no publication
      of any advertisement in connection with the transactions contemplated
      hereunder.

     

    (c)  It
      represents that it is an accredited investor within the meaning of Regulation
      D
      under the Securities Act.

     

    (d)  It
      has
      had the opportunity to ask questions of and receive answers from, Buyer and
      its
      management regarding the terms and conditions of its investment in Buyer and
      also conducted an independent due diligence by a representative
      thereof.

     

    (e)  It
      acknowledges and agrees that the Restricted Shares must be held indefinitely
      unless it is subsequently registered under the Securities Act or an exemption
      from such registration is available. It has been advised or is aware of the
      provisions of Rule 144 promulgated under the Securities Act as in effect from
      time to time, which permits limited resale of shares purchased in a private
      placement subject to the satisfaction of certain conditions, including, among
      other things: the availability of certain current public information about
      Buyer, the resale occurring following the required holding period under Rule
      144
      and the number of shares being sold during any three-month period not exceeding
      specified limitations.

     

    (f)  The
      Seller is not a “U.S. person”, as such term is defined in Regulation S, his
      principal address is outside the United States, and it was located outside
      the
      United States at the time any offer to buy the Restricted Shares was made to
      the
      Seller and at the time that this agreement was entered into by the
      Seller.

     

    (g)  At
      no
      time was the Seller presented with or solicited by any leaflet, public
      promotional meeting, newspaper or magazine article, radio or television
      advertisement or any other form of general advertising or general solicitation
      concerning the Restricted Shares.

     

    (h)  The
      Seller represents that it is not a broker or dealer, nor is it an affiliate
      of
      any broker or dealer. For the purpose of this Sub-Section, the term "dealer"
      means any person who engages either for all or part of his time, directly or
      indirectly, as agent, broker, or principal, in the business of offering, buying,
      selling, or otherwise dealing or trading in securities issued by another person;
      and the term "broker" means any person engaged in the business of effecting
      transactions in securities for the account of others. 

     

    (i)  The
      Seller acknowledges and agrees that the certificate representing the Restricted
      Shares shall bear a restrictive legend as the Buyer’s transfer agent may
      determine is necessary or appropriate under applicable securities laws,
      substantially to the effect of the following:

     

    
      
        
        

      

      
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    “The
      securities represented by this certificate have not been registered under the
      Securities Act of 1933 and may not be transferred, sold or otherwise disposed
      of
      in the absence of an effective registration statement with respect to the shares
      evidenced by this certificate, filed and made effective under the Securities
      Act
      of 1933, or an opinion of counsel satisfactory to On Track Innovations Ltd.
      to
      the effect that registration under such Act is not required.”

    

    (j)  The
      Seller will not register any transfer of the Restricted Shares not made in
      accordance with the provisions of Regulation S, pursuant to registration under
      the Securities Act, or pursuant to an available exemption from
      registration.

     

    Section
      3.24  Restrictions
      on Short Sales
      Seller
      represents, warrants and covenants that neither it nor any Affiliate thereof
      is
      engaged in (i) any “short sales” (as such term is defined in Rule 200
      promulgated under the Exchange Act) of the Restricted Shares, including, without
      limitation, the maintaining of any short position with respect to, establishing
      or maintaining a “put equivalent position” (within the meaning of Rule 16a-1(h)
      under the Exchange Act) with respect to, entering into any swap, derivative
      transaction or other arrangement (whether any such transaction is to be settled
      by delivery of Ordinary Shares, other securities, cash or other consideration)
      that transfers to another, in whole or in part, any economic consequences or
      ownership, or otherwise dispose of, any of the Restricted Shares by such
      purchaser or (ii) any hedging transaction which establishes a net short position
      with respect to the Restricted Shares. 

     

    Section
      3.25  Accuracy
      of Information Furnished; Full Disclosure
      All
      representation of Seller herein or in any of the Disclosure Schedules are true,
      correct and complete in all material respects. Such information states all
      material facts required to be stated therein or necessary to make the statements
      therein, in light of the circumstances under which such statements are made,
      true, correct and complete in all material respects. All facts and information
      with regard to the condition of the Acquired Assets, the Assumed Assets and
      Acquired Business that would reasonably be considered as material for disclosure
      in connection with the transactions set forth in this Agreement have been
      disclosed to Buyer. Neither this Agreement nor any ancillary agreement or any
      certificate made or delivered in connection herewith or therewith contains
      any
      untrue statement of a material fact or omits to state a material fact necessary
      to make the statements herein or therein not misleading, in view of the
      circumstances in which they were made.

     

    Section
      3.26  Schedules
      

     

    (a)  Any
      matter set forth in any Part of the Disclosure Schedule shall be deemed to
      be
      referred to all other Parts of the Disclosure Schedule to which such matter
      would relate.

     

    (b)  The
      inclusion of any item on any Part of the Disclosure Schedule shall not be
      construed as an indication that such item is material in any respect or as
      a
      representation or warranty with respect to such item.

     

    ARTICLE
      IV  

     

    Representations
      and Warranties of Buyer

     

    
      
        
        

      

      
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    Buyer
      hereby represents and warrants to Seller as follows:

     

    Section
      4.1  Incorporation;
      Authorization; Etc.
      Buyer is
      a corporation duly organized, and validly existing under the laws of the State
      of Israel. Buyer has full corporate power to execute and deliver this Agreement,
      to perform its obligations hereunder and to consummate the transactions
      contemplated hereby. The execution and delivery of the Transaction Documents,
      the performance of Buyer’s obligations hereunder, including issuance of the
      Restricted Shares to Seller, and thereunder and the consummation of the
      transactions contemplated hereby and thereby at the Closing, shall have been
      duly and validly authorized by Buyer and no other corporate proceedings or
      actions on the part of Buyer, its Board of Directors or its shareholders shall
      be necessary at the Closing. This Agreement has been duly executed and delivered
      by Buyer, and, assuming the due execution hereof by Seller, this Agreement
      constitutes the legal, valid and binding obligation of Buyer, enforceable
      against Buyer in accordance with its terms. An updated and complete copy of
      the
      Memorandum and Articles of Association of Buyer was provided to Seller prior
      to
      the date hereof. 

     

    Buyer
      has
      all requisite corporate power and authority to own, lease and operate its
      properties and to carry on its business as now being conducted, the failure
      of
      which does not have a material Adverse Effect on Buyer. Each of the Buyer and
      its subsidiaries is duly qualified or licensed to carry on its business as
      it is
      now being conducted, and is qualified to do business in each jurisdiction where
      the character of its properties owned or leased or the nature of its activities
      makes such qualification necessary, except for failures to be so qualified
      that
      would not have a material Adverse Effect.

     

    Section
      4.2  Issuance
      of Restricted SharesThe
      Restricted Shares issued to Seller pursuant to this Agreement at the Closing
      against the transfer of the Acquired Assets and the assignment of the Assumed
      Liabilities, shall be duly authorized and validly issued, fully paid,
      nonassessable and free of any preemptive rights, liens, restrictions,
      encumbrances or third party rights (except for restrictions on transfer set
      forth in the Transaction Documents or imposed by applicable securities laws),
      and will have the rights, preferences, privileges, and restrictions set forth
      in
      Buyer’s Articles of Association and this Agreement. 

     

    Section
      4.3  Capitalization 

     

    (a)  The
      authorized share capital of Buyer consists of 50,000,000 Ordinary Shares of
      which 15,556,008 Ordinary Shares are issued and outstanding on the date hereof.
      All of such issued and outstanding shares are validly issued, fully paid and
      nonassessable. No Ordinary Shares are owned by the Buyer or any of its
      subsidiaries.

     

    (b)  As
      of the
      date hereof, Buyer has reserved an adequate number of Ordinary Shares for
      issuance upon exercise of outstanding options or other securities convertible
      or
      exchangeable into Ordinary Shares (together, the “Options”),
      the
      total number of such Options as of the date of this Agreement is set forth
      in
Schedule
      4.3(b).
      Other
      than the 2001 Share Option Plan, the 1995 Share Option Plan and the 2001
      Employees Share Option Plan (collectively, the "Option
      Plans"),
      Buyer
      has no other plan which provides for the grant of options, warrants or rights
      to
      purchase Ordinary Shares, share appreciation or similar rights or share awards.
      Schedule
      4.3(b)
      sets
      forth the following information with respect to each Option outstanding as
      of
      the date of the Agreement: (i) the number of shares subject to such Option;
      (ii)
      the exercise price; Except as set forth above, there are not now, and at the
      Closing there will not be any claims, rights (including without limitation
      any
      share appreciation or similar rights), convertible securities or other
      agreements or commitments of any character obligating the Buyer to issue,
      transfer or sell any additional securities, other than Ordinary Shares issued
      after the date hereof upon the exercise of Options outstanding on the date
      hereof, and options and warrants issued to employees, consultants and service
      providers between the date hereof and the Closing.

     

    
      
        
        

      

      
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    Section
      4.4  Commission
      Filings; Financial Statements

     

    (a)  Buyer
      has
      filed all forms, reports, schedules, statements and other documents required
      to
      be filed by it since January 1, 2005, to the date of this Agreement with the
      SEC
      (all such filings collectively, as supplemented and amended since the time
      of
      the filing, the "Buyer
      SEC Reports")
      all of
      which complied, when filed, in all material respects with all applicable
      requirements of the Exchange Act, and the rules and regulations promulgated
      thereunder, as the case may be. Buyer has made available to Seller a true and
      correct copy of each of the Buyer SEC Reports. The audited consolidated
      financial statements and unaudited consolidated financial statements of Buyer
      included or incorporated by reference in the Buyer SEC Reports, (i) comply
      as to
      form, in all material respects, with the published rules and regulations of
      the
      SEC, (ii) have been prepared in accordance with United States generally accepted
      accounting principles applied on a consistent basis during the periods involved
      (except as may be indicated in the notes thereto) and (iii) present fairly,
      in
      all material respects, the financial position and results of operations and
      cash
      flows of the Buyer and its subsidiaries on a consolidated basis at the
      respective dates and for the respective periods indicated (except, in the case
      of interim financial statements, for normal year-end adjustments and to which
      hereby represented based on Buyer's best knowledge, and the absence of notes).
      Without derogating from the generality of the aforesaid, the Buyer's report
      on
      Form 20-F for the period ended December 31, 2005, a copy of which was made
      available to Seller, (i) has been prepared in compliance in all material
      respects with all applicable requirements of the Exchange Act and (ii) does
      not
      contain any untrue statements of a material fact or omit to state any material
      fact required to be stated therein or necessary in order to make the statements
      therein, in light of the circumstance under which they were made, not
      misleading.

     

    (b)  Since
      December 31, 2005, except as disclosed in the Buyer SEC Reports, there has
      been
      no material Adverse change in the business, operations, properties, prospects,
      assets or condition of Buyer, and to Buyer's knowledge, no event has occurred
      or
      circumstances exist that shall result in a material Adverse Effect.

     

    Section
      4.5  Nasdaq
      Listing Matters
      The
      Ordinary Shares are registered pursuant to Section 12(b) of the Exchange Act
      and
      are listed on the Nasdaq under the ticker symbol “OTIV.” Buyer
      has not
      received any notice that it is not currently in compliance with the listing
      or
      maintenance requirements of the Nasdaq. The issuance and sale of the Restricted
      Shares under this Agreement do not contravene the rules and regulations of
      Nasdaq.
      Buyer
      has taken no action and has no present intent to take any action, designed
      to,
      or likely to have the effect of, terminating the registration of the Ordinary
      Shares under the Exchange Act or de-listing the Ordinary Shares from
      Nasdaq.

     

    
      
        
        

      

      
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    Section
      4.6  No
      Conflict, Breach, Violation or Default; Required Filings and
      Consents
      (a) The
      execution, delivery and performance of the Transaction Documents by Buyer and
      the issuance and transfer of the Restricted Shares will not conflict with or
      result in a material breach or material violation of any of the terms and
      provisions of, or constitute a material default under (i) Buyer’s Articles or
Memorandum
      of
      Association, as in effect on the date hereof (true and complete copies of which
      have been made available to Seller), or (ii)(A) any statute, rule, regulation
      or
      order of any governmental agency or body or any court, domestic or foreign,
      having jurisdiction over Buyer, or any of its assets or properties, or (B)
      any
      agreement or instrument to which Buyer is a party or by which Buyer is bound
      or
      to which any of its assets or properties is subject, where the failure to comply
      under (i) and (ii) in this Section 4.6, shall have a material Adverse Effect
      on
      Buyer.

     

    (b) 
      Except
      as set forth in this Agreement, the execution and delivery of this Agreement
      by
      Buyer does not, and the performance of its obligations hereunder will not,
      require any consent, approval, authorization or permit of, or filing with or
      notification to, any Governmental Authority, except (i) for applicable
      requirements, if any, of the Securities Act, the Exchange Act, and the rules
      and
      regulations thereunder, applicable applications with Nasdaq and appropriate
      documents with the relevant authorities of other jurisdictions in which Buyer
      is
      qualified to do business, and (ii) where the failure to obtain such consents,
      approvals, authorizations or permits, or to make such filings or notifications,
      would not, reasonably be expected to have a material Adverse Effect on Buyer,
      or
      prevent the parties hereto from performing their obligations under the
      Transaction Documents.

     

    Section
      4.7  Compliance.
      Buyer
      is in material compliance with, and is not in material violation of, any
      applicable Laws with respect to the conduct of its business, or the ownership
      or
      operation
      of its
      business, except for failures to comply or violations which, shall not have
      a
      material Adverse Effect on Buyer. Buyer is not in a material default or
      violation of any term, condition or provision
      of its
Articles
      or Memorandum of Association.
      No
      written notice of a material non-compliance with any
      applicable Laws
      has been
      received by Buyer during the 12 month period prior to the date of this
      Agreement.

     

    ARTICLE
      V  

     

    Covenants
      of Seller and Buyer

     

    Section
      5.1  Confidentiality 

     

    (a)  Any
      information provided by Buyer or its representatives to Seller or its
      representatives pursuant to this Agreement and in the conduct of their due
      diligence and other actions related to the preparation of this Agreement shall
      be held by Seller and its representatives in accordance with, and shall be
      subject to the terms of, the Confidentiality Agreement dated August 11, 2006
      by
      and between Seller and Buyer, which is hereby incorporated in this Agreement
      as
      though fully set forth herein. 

     

    (b)  Any
      information provided by Seller or its representatives to Buyer or its
      representatives pursuant to this Agreement and in the conduct of their due
      diligence and other actions related to the preparation of this Agreement and
      is
      not part of the Acquired Assets or the Assumed Liabilities, shall be held by
      Seller and its representatives in accordance with, and shall be subject to
      the
      terms of, the Confidentiality Agreement dated August 11 2006 by and between
      Seller and Buyer, which is hereby incorporated in this Agreement as though
      fully
      set forth herein. 

     

    
      
        
        

      

      
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    Section
      5.2  Best
      Efforts; Obtaining Consents
      In case
      at any time after the date hereof, any further action is necessary or desirable
      (i) to obtain necessary waivers, consents and approvals from other parties
      to
      material Contracts, (ii) to obtain consents, approvals and authorizations that
      are required to be obtained under any Law, (iii) to lift or rescind any Order
      Adversely Affecting the Asset Purchase, or (iv) to effect necessary
      registrations and filings and submissions of information requested by
      Governmental Authorities (it being understood that such efforts shall not
      include any requirement of Seller to expend material sums of money or grant
      any
      material financial or other accommodation), Seller and Buyer shall exercise
      best
      efforts to take all such necessary action.

     

    Section
      5.3  Further
      Assurances 

     

    (a)  Seller
      and Buyer agree that, from time to time, whether before, at or after the Closing
      Date, each of them will execute and deliver such further instruments of
      conveyance and transfer and take such other action as may be reasonably required
      or desirable to carry out the purposes and intent of this Agreement, including
      (i) allocating rights and obligations under Contracts and other arrangements,
      if
      any, relating to the Acquired Assets or the Assumed Liabilities, (ii)
      determining whether to enter into any service or other sharing agreements on
      a
      mutually acceptable arm’s-length basis that may be necessary to assure a smooth
      and orderly transition, and (iii) each
      of
      the parties hereto shall execute such documents and other instruments and take
      such further actions as may be reasonably required to carry out the provisions
      hereof.

     

    (b)  Notwithstanding
      anything to the contrary herein, immediately after the execution of this
      Agreement, Seller shall allow the Buyer access to all customers’ files,
      production files, components files, and all other necessary documentations
      and
      information required by Buyer. 

     

    Section
      5.4  Preservation
      of Acquired Assets 

     

    (a)  From
      the
      date hereof to the Closing Date, subject to the terms and conditions of this
      Agreement, Seller shall use reasonable efforts (i) to preserve the Acquired
      Assets intact, and (ii) to preserve the good will of customers and others having
      material business relations with Seller pursuant to the SuperCom Contracts.
      Notwithstanding the foregoing, nothing in this Section 5.4 or otherwise shall
      be
      construed to make Seller responsible in any respect for the cancellation of
      any
      Contracts or for any customer’s discontinuing its business with Buyer or Seller.
      Notwithstanding the foregoing or any other provision herein, neither Seller
      nor
      Buyer shall be required to enter into any Contract that it has not expressly
      agreed to enter into hereunder; except pursuant to Section 5.3 or Section
      5.8.

     

    (b)  From
      the
      date hereof to the Closing Date, Seller shall not take any action not in the
      Ordinary Course of Business, without Buyer’s prior written consent (which
      consent shall not be unreasonably withheld).

     

    Without
      derogating from the foregoing, Seller shall:

     

    (i)  Maintain
      its corporate existence, pay its debts when due, pay or perform other
      obligations when due, and carry on its business in the usual, regular and
      ordinary course in a manner consistent with past practice and in accordance
      with
      the provisions of this Agreement and in compliance with all applicable Laws,
      Authorizations and Contracts.

     

    
      
        
        

      

      
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    (ii)  Use
      its
      reasonable best efforts consistent with past practices and policies to keep
      available the services of its present employees and preserve its relationships
      with customers,
      suppliers, distributors, licensors, licensees, and others having business
      dealings with it, to the end that its goodwill and ongoing business be
      substantially unimpaired on the Closing Date.

     

    (iii)  Promptly
      notify Buyer of any event or occurrence not in the Ordinary Course of
      Business.

     

    (c)  From
      the
      date hereof to the Closing Date, Seller shall permit Buyer and its
      representatives, to visit and inspect the Buyer’s properties, to examine its
      books of account and records and to discuss the Buyer’s affairs, with its
      officers, all at such reasonable times as may be requested by Buyer and its
      representative.

     

    Section
      5.5  Public
      Announcements
      Seller
      and Buyer will consult with each other before issuing, or permitting any agent
      or Affiliate to issue, any press releases or otherwise making or permitting
      any
      agent or Affiliate to make, and, absent mutual agreement, will not (and will
      not
      permit any agent or Affiliate to) issue any press release or make any public
      statements with respect to this Agreement and the transactions contemplated
      hereby, and, except as may be required by applicable law or any listing
      agreement with any securities exchange, will not issue any such press release
      or
      make any such public statement, unless the text of such statement shall have
      been agreed upon by the parties.

     

    Section
      5.6  At
      any
      time following the Closing Date, upon Buyer’s demand, Seller shall destroy
      copies and any documentation regarding the Acquired Assets. 

     

    Section
      5.7  Insurance
      Buyer
      shall adequately insure the Acquired Assets and maintain such insurance, against
      all risks and liabilities. Without derogating from the aforesaid, Buyer shall
      insure the Acquired Assets in such degree of coverage that is not less than
      the
      coverage obtained by Seller for the Acquired Assets. 

     

    Section
      5.8  Employees,
      Employee Benefits and Other Transitional Matters 

     

    (a)  On
      or
      prior to the Closing, Buyer shall have the right, but not the obligation, to
      offer employment to all the Key Employees, provided that Seller shall terminate,
      immediately prior to Closing, the employment of any employee who accepts such
      offer. Any such offer shall be at such salary or wage and benefit levels and
      on
      such other terms and conditions as Buyer shall in its sole discretion deem
      appropriate. From the date of this Agreement, Buyer may interview and conduct
      background investigations with respect to any Key Employee, and Seller will
      not
      take any action that would impede, hinder, interfere or otherwise compete with
      Buyer’s effort to hire any Key Employees and shall use its best efforts to cause
      such Key Employee to accept the Buyer's offer. From the date of this Agreement,
      Seller shall provide Buyer access to such files, records and other materials
      relating to the Key Employees as is permitted by Law, including, without
      limitation, information relating to compensation and benefits. Buyer shall
      not
      assume responsibility for any Key Employee until such employee commences
      employment with Buyer. From the date of this Agreement, Seller shall not modify,
      amend or otherwise alter any non-competition or other similar restrictions
      with
      any Key Employee without the prior written consent of Buyer, and Seller shall
      not waive, and shall use commercially reasonable efforts to enforce, such
      non-competition or other restrictions in connection with any violation thereof.
      Seller hereby undertakes to release any Key Employee to which Buyer makes an
      offer of employment from the provisions of any non-competition or other similar
      restrictions in order to allow such Key Employee to accept such offer of Buyer.
      On or prior to Closing, Buyer shall have the right, but not the obligation,
      to
      offer to Key Employees bonuses or any other consideration that will be paid
      at
      such time as may be agreed between Buyer and such Key Employees for their
      assistance to Buyer in connection with effecting the transition of the Acquired
      Assets and the Assumed Liabilities to the Buyer.

     

    
      
        
        

      

      
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    The
      same
      provisions and undertakings shall apply, mutatis mutandis, to the members of
      Seller's advisory board.

     

    (b)  Nothing
      in the provision of this Section 5.9 shall create any third party beneficiary
      or
      other rights in any employee (including any beneficiary or dependent thereof)
      of
      Seller (whether or not a Key Employee) with respect to continued employment
      (or
      resumed employment) with Buyer or any of its affiliates, and no provision of
      this Section 5.9 shall create any such rights with respect to any benefits
      that
      may be provided, directly or indirectly, under any employee plan or benefit
      arrangement that may be established by Buyer or any of its affiliates.

     

    Section
      5.9  Non-competition 

     

    (a)  Seller
      agrees that for a period beginning at the Closing and ending on the five (5)
      year anniversary of the Closing, it shall not

     

    (i)  engage,
      either directly or indirectly, as a principal or for its own or another’s
      account, solely or jointly with others, or through any form of ownership in
      another entity or otherwise (other than by holding or having ownership of up
      to
      4.99% of the equity, interest or voting power in any publicly traded company),
      in any business that operates in the field of the Acquired Business, except
      for
      the activity related to the activities specified in sub sections (i) and (ii)
      under the definition of the Excluded Assets, and except for the petroleum
      business which competes with Buyer; 

     

    (ii)  employ
      or
      solicit or offer or induce or receive or accept the performance of services
      by
      any Assumed Employee; and 

     

    In
      addition to the foregoing, Seller will act in good faith and use best efforts,
      whenever required, to prevent an Adverse impact on the business relationship
      between Buyer and any customer, suppliers,
      distributors, licensors, licensees, and others having business dealings with
      Seller
      in
      connection with the Acquired Business prior to the Closing Date. In any event
      where Seller shall be approached by any customer, suppliers,
      distributors, licensors, licensees, and others in connection to the Acquired
      Business, Seller shall advise Buyer of such approach in writing and shall refer
      such Person or Entity to Buyer. 

     

    (b)  Seller
      shall use its best efforts to cause all of its directors, officers and employees
      to execute a similar undertaking set forth in subsection (a) above, towards
      Buyer.

     

    
      
        
        

      

      
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    (c)  Buyer
      agrees that for a period beginning at the Closing and ending on the five (5)
      year anniversary of the Closing, it shall not:

     

    (i)  engage,
      either directly or indirectly, as a principal or for its own or another’s
      account, solely or jointly with others, or through any form of ownership in
      another entity or otherwise (other than by holding or having ownership of up
      to
      4.99% of the equity, interest or voting power in any publicly traded company),
      in any activity related to the activities specified in sub sections (i) and
      (ii)
      under the definition of the Excluded Assets; 

     

    (ii)  employ
      or
      solicit or offer or induce the performance of services by any employees of
      the
      Seller which are not Assumed Employees.

     

    (d)  Buyer
      shall use its best efforts to cause all the Assumed Employees to execute a
      similar undertaking as set forth in subsection (c) above, towards
      Seller.

     

    Section
      5.10  Service
      and Supply Agreement At
      the
      Closing, Seller and Buyer shall execute and deliver the Service and Supply
      Agreement.

     

    Section
      5.11  Registration
      Rights Agreement.
      At the
      Closing, Seller and Buyer shall execute and deliver the Registration Rights
      Agreement.

     

    ARTICLE
      VI  

     

    Tax
      Matters

     

    Section
      6.1  Tax
      Matters 

     

    (a)
      Any
      transfer, documentary, sales, use or other Taxes assessed upon or with respect
      to the transfer of the Acquired Assets to Buyer and the assumption of the
      Assumed Liabilities thereby (except for V.A.T.) shall be the responsibility
      of
      Seller; provided, however, that Buyer shall cooperate with Seller to minimize
      any such Taxes. 

     

    (b)  V.A.T
      levied on the sale of the Acquired Assets shall be paid by Buyer on the date
      due
      to be paid by Seller against a proper receipt (Heshbonit Mas) issued by
      Seller.

     

    ARTICLE
      VII  

     

    Conditions
      of Buyer’s Obligation to Close

     

    Buyer’s
      obligation to consummate the Asset Purchase shall be subject to the satisfaction
      on or prior to the Closing Date of all of the following conditions:

     

    Section
      7.1  Representations,
      Warranties and Covenants of Seller 

     

    (a)  The
      representations and warranties of Seller contained in this Agreement shall
      be
      true and correct on and as of the Closing Date with the same effect as though
      such representations and warranties had been made on and as of such date (except
      for representations and warranties that speak as of a specific date or time,
      which need only be true and correct as of such date or time), in each case,
      whether or not such representations or warranties contain a qualification as
      to
“Adverse Effect,” for such inaccuracies which have not had or would not
      reasonably be expected to have an Adverse Effect on the Acquired
      Assets.

     

    
      
        
        

      

      
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    (b)  Seller
      shall have performed in all material respects each obligation and agreement
      and
      shall have complied in all material respects with each covenant to be performed
      and complied with by it hereunder at or prior to the Closing (other than
      Seller’s covenants pursuant to Section 2.2(a) with respect to delivery of
      documents of transfer of the Acquired Assets at the Closing, which shall be
      performed in all respects).

     

    (c)  Buyer
      shall receive at or prior to the Closing a certificate as to the matters set
      forth in paragraphs (a) and (b), dated the Closing Date, and validly executed
      by
      an authorized officer of Seller on behalf of Seller.

     

    Section
      7.2  Filings;
      Consents; Waiting Periods
      All
      registrations, filings, applications, notices, consents, approvals, orders,
      qualifications and waivers required to be obtained or made as of the Closing
      Date shall have been filed, made or obtained, except for such registrations,
      filings, notices, consents, approvals, orders, qualifications and waivers the
      lack of which would not reasonably be expected to have an Adverse Effect on
      the
      Acquired Assets.

     

    Section
      7.3  No
      Injunction
      At the
      Closing Date, there shall be no Order of any nature of any Governmental
      Authority of competent jurisdiction that is in effect that restrains or
      prohibits the consummation of all or any portion of the Asset Purchase, and
      no
      Law shall have been enacted by any Governmental Authority which prevents
      consummation of the Asset Purchase.

     

    Section
      7.4  Reserved
      

     

    Section
      7.5  Proxy
      Seller
      shall have executed and delivered to Buyer a proxy in the form attached hereto
      as Exhibit D.

     

    Section
      7.6  Lock-Up
      Agreement
      Seller
      shall have executed and delivered to Buyer the Lock-Up Agreement.

     

    Section
      7.7 Termination
      of Confidentiality and Proprietary Agreements with Assumed Employees and
      Employment Agreement

     

    (a)  Seller
      shall have release any Buyer’s Assumed Employees from the provisions of any
      non-competition or other similar restrictions towards Seller. 

     

    (b)  Buyer
      shall have entered into employment agreements with Buyer’s
      Assumed Employees. 

     

    Section
      7.8  Lease
      Agreement/Assignment 
      Buyer
      shall have entered into a sublease or assignment agreement with respect to
      the
      ground floor, on terms back-to-back to the Seller's existing lease agreement.
      The sublease or assignment will be valid until December 31st
      2007.

     

    Section
      7.9  Anti-Trust 
      The
      approval of the anti trust commissioner, if required. 

     

    
      
        
        

      

      
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    Section
      7.10  Legal Opinion Seller
      shall have provided a legal opinion of Yossi Avraham, Arad & Co., Law
      Offices in the form agreed by the parties.

     

    Section
      7.11  Shareholders
      Approval Buyer
      shall have obtained shareholders approval for the transaction contemplated
      herein. 

     

    Section
      7.12  Withholding
      at Source Seller
      shall provide Buyer a certificate of exemption with regard to withholding at
      source of taxes otherwise withheld by Buyer in connection with the payment
      of
      the consideration by Buyer pursuant to the terms of this Agreement. 

     

    ARTICLE
      VIII  

     

    Conditions
      to Seller’s Obligation to Close

     

    Seller’s
      obligation to consummate the Asset Purchase is subject to the satisfaction
      on or
      prior to the Closing Date of all of the following conditions:

     

    Section
      8.1  Representations,
      Warranties and Covenants of Buyer 

     

    (a)  The
      representations and warranties of Buyer contained in this Agreement shall be
      true and correct on and as of the Closing Date with the same effect as though
      such representations and warranties had been made on and as of such date (except
      for representations and warranties that speak as of a specific date or time,
      which need only be true and correct as of such date or time), in each case,
      whether or not such representations or warranties contain a qualification as
      to
“Adverse Effect,” for such inaccuracies which have not had or would not
      reasonably be expected to have an Adverse Effect on Buyer.

     

    (b)  Buyer
      shall have performed in all material respects each obligation and agreement
      and
      shall have complied in all material respects with each covenant to be performed
      and complied with by it hereunder at or prior to the Closing.

     

    (c)  Seller
      shall receive at or prior to the Closing a certificate as to the matters set
      forth in paragraphs (a) and (b), dated the Closing Date, and validly executed
      by
      an executive officer of Buyer on behalf of Buyer.

     

    Section
      8.2  Filings;
      Consents; Waiting Periods
      All
      registrations, filings, applications, notices, consents, approvals, orders,
      qualifications and waivers required to be obtained or made as of the Closing
      Date shall have been filed, made or obtained, except for such registrations,
      filings, notices, consents, approvals, orders, qualifications and waivers the
      lack of which would not reasonably be expected to have an Adverse Effect on
      Buyer.

     

    Section
      8.3  No
      Injunction
      At the
      Closing Date, there shall be no Order of any nature of any Governmental
      Authority of competent jurisdiction that is in effect that restrains or
      prohibits the consummation of all or any portion of the Asset Purchase, and
      no
      Law shall have been enacted by any Governmental Authority which prevents
      consummation of the Asset Purchase.

     

    Section
      8.4  Service
      and Supply Buyer
      shall have executed and delivered to Seller the Service and Supply
      Agreement.

     

    
      
        
        

      

      
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    Section
      8.5  Registration
      Rights Agreement.
      Buyer
      shall have executed and delivered to Seller the Registration Rights
      Agreement.

     

    Section
      8.6  Anti-Trust the
      approval of the anti trust commissioner, if required.

     

    Section
      8.7  Loan Buyer,
      with Seller's cooperation, hereby undertakes to cause a loan in the principal
      amount of U.S.$ 2.5 Million (the "Loan")
      to be
      extended to Seller by a financial institution at the Closing. The terms of
      the
      loan shall be as follows:

     

    (a)
      The
      Loan will carry interest at the common rate for USD loans in Hapoalim Bank,
      Israel, for 18 months.

     

    

     

    (b)
       The
      Loan
      will be secured by all the Restricted Shares and will be repaid (principal
      and
      interest) out of the first proceeds received from each sale of Restricted Shares
      sold by Seller, but not later than 18 months after the Closing
      Date.

     

    ARTICLE
      IX  

     

    Survival;
      Indemnification

     

    Section
      9.1  Survival
      of Representations And Covenants

     

    (a)  The
      representations, warranties, covenants and obligations of each party to this
      Agreement shall survive (without limitation): (i) the Closing and the sale
      of
      the Acquired Assets to Buyer and the assumption of the Assumed Liabilites;
      and
      (ii) the dissolution of either party to this Agreement. All of said
      representations, warranties, covenants and obligations shall remain in full
      force and effect and shall survive for a period of twelve months from the
      Closing Date (“Indemnification
      Period”).

     

    (b)  The
      representations, warranties, covenants and obligations of Seller, and the rights
      and remedies that may be exercised by Buyer, shall not be limited or otherwise
      affected by or as a result of any information furnished to, or any investigation
      made by or any knowledge of Buyer.

     

    (c)  The
      representations, warranties, covenants and obligations of Buyer, and the rights
      and remedies that may be exercised by Seller, shall not be limited or otherwise
      affected by or as a result of any information furnished to, or any investigation
      made by or any knowledge of, Seller or any of its representatives. 

     

     

     

    
      
        
        

      

      
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      Section
        9.2  Indemnification 

       

    

    (a)  Seller
      hereby undertakes to indemnify Buyer against, and agrees to hold it harmless
      from, any and all damages, claims, debts, actions, assessments, judgments,
      losses, fines, fees, penalties and expenses (including, without limitation,
      reasonable expenses of investigation and reasonable attorneys’ fees and expenses
      in connection with any action, suit or proceeding) (collectively, “Losses”)
      incurred or suffered by it during the term of Indemnification Period (or
      attributed to the Indemnification Period) arising out of:

     

    
      	
            	(i)	
              any
                misrepresentation, inaccuracy or breach of representation and warranty,
                covenant or agreement made or to be performed by Seller pursuant
                to this
                Agreement; and

            

      	 	 	 

      	 	(ii)	without limiting sub-section (i) above,
              the
              assertion of any claim based upon the Seller having infringed upon,
              violated or misappropriated, or the Buyer’s use of the SuperCom
              Intellectual Property after the Closing infringing upon, violating
              or
              misappropriating any Intellectual Property of any third
              party.

    

    

    (b)  Seller
      hereby undertakes to indemnify Buyer against, and agrees to hold it harmless
      from, any and all Losses incurred or suffered by it arising out of the failure
      of Seller to assume responsibility for any obligation or liability relating
      to
      the Excluded Assets and failure to pay and discharge when due any liability
      which is not part of the Assumed Liabilities.

     

    (c)  Buyer
      hereby undertakes to indemnify Seller against, and agrees to hold it harmless
      from, any and all Losses incurred or suffered by it during the term of
      Indemnification Period arising out of any breach of representation and warranty,
      covenant or agreement made or to be performed by Buyer pursuant to this
      Agreement.

     

    (d)  Notwithstanding
      the aforesaid in this Article IX, it is hereby agreed that the indemnification
      obligation of Seller and Buyer under Sections 9.2(a), and 9.2(c) hereinabove
      and
      any other damage loss or expense incurred by Seller or Buyer, as the case may
      be, will be limited to and will apply to Losses that (in the aggregate) are
      greater than U.S. $300,000, in which event the indemnitor will indemnify the
      indemnitee from the first dollar. In no such event the indemnitor shall be
      required to indemnify the indemnitee for any Loss or Losses that (in the
      aggregate) are greater than U.S. $3,000,000.

     

    ARTICLE
      X  

     

    Termination

     

    Section
      10.1  Termination
      This
      Agreement may be terminated at any time prior to the Closing by:

     

    (a)  The
      mutual written consent of Seller and Buyer; or

     

    (b)  Either
      Seller or Buyer if the Closing has not occurred by the close of business
      onJanuary 31, 2007, and if the failure to consummate the Asset Purchase on
      or
      before such date did not result from the failure by the party seeking
      termination of this Agreement to fulfill any undertaking or commitment provided
      for herein that is required to be fulfilled prior to Closing; or

     

    
      
        
        

      

      
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          Copy

      

       

    

    (c)  Seller,
      provided it is not then in material breach of any of its obligations hereunder,
      if Buyer fails to perform in any material respect any covenant in this Agreement
      when performance thereof is due or Buyer shall have breached in any material
      respect any of the representations or warranties contained in this Agreement
      and
      does not cure the failure or breach within thirty (30) days after Seller
      delivers written notice thereof; or

     

    (d)  Buyer,
      provided it is not then in material breach of any of its obligations hereunder,
      if Seller fails to perform in any material respect any covenant in this
      Agreement when performance thereof is due or Seller shall have breached in
      any
      material respect any of the representations and warranties contained in this
      Agreement and does not cure the failure or breach within thirty (30) days after
      Buyer delivers written notice thereof.

     

    Section
      10.2  Procedure
      and Effect of Termination
      In the
      event of termination of this Agreement by either or both of Seller and Buyer
      pursuant to Section 10.1, written notice thereof shall forthwith be given by
      the
      terminating party to the other party hereto, and this Agreement shall thereupon
      terminate and become void and have no effect, and the transactions contemplated
      hereby shall be abandoned without further action by the parties hereto, except
      that the provisions of Section 11.4 shall survive the termination of this
      Agreement; provided, however, that such termination shall not relieve any party
      hereto of any liability for any breach of this Agreement. If this Agreement
      is
      terminated as provided herein, all filings, applications and other submissions
      made in anticipation of the transactions contemplated hereby shall, to the
      extent practicable, be withdrawn from the agency or other persons to which
      they
      were made.

     

    ARTICLE
      XI  

     

    Miscellaneous

     

    Section
      11.1  Counterparts
      This
      Agreement may be executed in one or more counterparts, all of which shall be
      considered one and the same agreement, and shall become effective when one
      or
      more counterparts have been signed by each of the parties and delivered to
      the
      other party.

     

    Section
      11.2  Governing
      Law; Consent to Jurisdiction
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Israel without reference to the choice of law principles thereof.
      Buyer
      and Seller consent to and hereby submit to the exclusive jurisdiction of the
      suitable court in Tel-Aviv Jaffa. 

     

    

    Section
      11.3  Entire
      Agreement
      Except
      as provided in , this Agreement (including agreements incorporated by reference
      herein), the Disclosure Schedule and the Exhibits hereto contain the entire
      agreement between the parties with respect to the subject matter hereof and
      there are no agreements, understandings, representations or warranties between
      the parties other than those set forth or referred to herein or
      therein.

     

    Section
      11.4  Expenses
      Each
      party to this Agreement shall bear and pay all fees, costs and expenses
      (including legal fees and accounting fees) that have been incurred or that
      are
      incurred by such party in connection with the transactions contemplated by
      this
      Agreement, including all fees, costs and expenses incurred by such party in
      connection with the negotiation, preparation and review of this Agreement,
      all
      agreements, certificates, opinions and other instruments and documents delivered
      or to be delivered in connection with the transactions contemplated by this
      Agreement and the preparation and submission of any filing or notice required
      to
      be made or given in connection with any of the transactions contemplated by
      this
      Agreement. 

     

    
      
        
        

      

      
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    Section
      11.5  Notices
      All
      notices hereunder shall be sufficiently given for all purposes hereunder if
      in
      writing and delivered personally, sent by documented overnight delivery service
      or, to the extent receipt is confirmed, telecopy, telefax or other electronic
      transmission service to the appropriate address or number as set forth below.
      

     

    Notices
      to Seller shall be addressed to:

     

    SuperCom
      Ltd.

    Hasharon
      Industrial park,

    P.O.B.
      5039, Qadima 60920; Israel.

    Tel.:
      +972-9-8890800

    Fax:
      +972-9-8890820

    Attention:
      CEO

    

    With
      a
      copy to:

    

    Yossi
      Avraham, Arad & Co.

    Tel.:
      +972-3-6086888

    Fax:
      +972-3-6093801

    Attention:
      Yossi Avraham, Adv.

    

    or
      at
      such other address and to the attention of such other Person as Seller may
      designate by written notice to Buyer.

     

    Notices
      to Buyer shall be addressed to:

    On
      Track
      Innovations Ltd.

    Address:
      P.O. Box 32 ZHR IZ, Rosh Pina, Israel 12000

    Fax:
      +972
      4 6938887

    Attention:
      Mr. Oded Bashan

     

    With
      a
      copy to:

    Zysman,
      Aharoni, Gayer and Co., Law Offices

    52A
      Hayarkon St.

    Tel
      Aviv,
      Israel

    Attn.:
      Eran Ben Dor, Adv.

    Fax:
      972-3-7955555

     

    Any
      notice sent in accordance with this Section 11.5 shall be effective (i) if
      mailed, five (5) business days after mailing (if domestic) and ten (10) business
      days (if international), (ii) if sent by express courier, two (2) business
      days
      after mailing (if domestic) and three (3) business days after mailing (if
      international), (iii) if sent by messenger, on the first business day following
      the day of delivery, and (iv) if sent via facsimile, on the first business
      day
      after transmission and electronic confirmation of receipt or (if transmitted
      and
      received on a non-business day) on the second business day following
      transmission and electronic confirmation of receipt.

     

    
      
        
        

      

      
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    Section
      11.6  Successors
      and Assigns
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and assigns; provided, however, that no party
      hereto will assign its rights or delegate its obligations under this Agreement
      without the express prior written consent of each other party hereto, except
      that either party may assign this Agreement to any Entity that succeeds to
      substantially all of such party’s assets and liabilities only after the
      Closing.

     

    Section
      11.7  Headings:
      Definitions
      The
      section and article headings contained in this Agreement are inserted for
      convenience of reference only and will not affect the meaning or interpretation
      of this Agreement. All references to Sections or Articles contained herein
      mean
      Sections or Articles of this Agreement unless otherwise stated.

     

    Section
      11.8  Amendment
      This
      Agreement may not be amended, modified, superseded, canceled, renewed or
      extended except by a written instrument signed by the party to be charged
      therewith.

     

    Section
      11.9  Waiver;
      Effect of Waiver
      No
      provision of this Agreement may be waived except by a written instrument signed
      by the party waiving compliance. No waiver by any party hereto of any of the
      requirements hereof or of any of such party’s rights hereunder shall release the
      other parties from full performance of their remaining obligations stated
      herein. No failure to exercise or delay in exercising on the part of any party
      hereto any right, power or privilege of such party shall operate as a waiver
      thereof, nor shall any single or partial exercise of any right, power or
      privilege preclude any other or further exercise thereof or the exercise of
      any
      other right, power or privilege by such party.

     

    Section
      11.10   Interpretation;
      Absence of Presumption 

     

    (a)  For
      the
      purposes hereof, (i) the terms “hereof,” “herein” and “herewith” and words of
      similar import shall, unless otherwise stated, be construed to refer to this
      Agreement as a whole (including all of the Schedules hereto) and not to any
      particular provision of this Agreement, and Article, Section, paragraph and
      Schedule references are to the Articles, Sections, paragraphs and Schedules
      to
      this Agreement unless otherwise specified, (ii) the word “including” and words
      of similar import when used in this Agreement means “including, without
      limitation,” unless the context otherwise requires or unless otherwise
      specified, (iii) the word “or” shall not be exclusive, (iv) provisions shall
      apply, when appropriate, to successive events and transactions and (v) all
      references to any period of days shall be deemed to be to the relevant number
      of
      calendar days.

     

    (b)  This
      Agreement shall be construed without regard to any presumption or rule requiring
      construction or interpretation against the party drafting or causing any
      instrument to be drafted.

     

    Section
      11.11  Finder’s
      Fees Each
      party shall bear its own finder’s fees obligations in connection with this
      Agreement and the transactions contemplated herein, to the extent such party
      undertook to pay any finder’s fees.

     

    
      
        
        

      

      
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          Copy

      

       

    

    Section
      11.12  Remedies
      No
      remedy under this Agreement or at law or in equity shall include, provide for
      or
      permit the payment of multiple, exemplary, punitive or consequential damages
      or
      any equitable equivalent thereof or substitute therefor, and the burden shall
      be
      on the party claiming loss to show actual loss in the amount claimed. Except
      for
      the right of indemnification according to Article IX above, Seller and Buyer
      shall have no other or further remedy against the other party under this
      Agreement. 

     

    Section
      11.13  Severability
      In the
      event that any provision of this Agreement, or the application of any such
      provision to any Person or set of circumstances, shall be determined to be
      invalid, unlawful, void or unenforceable to any extent, the remainder of this
      Agreement, and the application of such provision to Persons or circumstances
      other than those as to which it is determined to be invalid, unlawful, void
      or
      unenforceable, shall not be impaired or otherwise affected and shall continue
      to
      be valid and enforceable to the fullest extent permitted by law.

     

    [The
      remainder of this page has been intentionally left
      blank.]

     

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed on their behalf as of the date first written above.

     

     

    
      	 	ON TRACK INNOVATIONS
              LTD.
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title
              	 

    

     

    
       

      
        	 	SUPERCOM LTD.
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title
                	 

      

       

    

    
      
         

        
          	 	By:	 
	 	Name:	 
	 	Title
                  	 

        

      

    

    
      

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

    

    

      Exhibit
        A

    

    
 

    On
      Track
      Innovations Ltd.

    Z.H.R.
      Industrial Zone

    P.O.
      Box
      32

    Rosha
      Pina, Israel 12000

    

    Re: Lock-Up
      Agreement

     

    The
      undersigned, a Shareholder of On Track Innovations Ltd. (the “Company”),
      holding 2,827,200 ordinary shares nominal value NIS 0.1 per share, of the
      Company (“Restricted Shares”),
      issued to the Shareholder by the Company pursuant to a certain Asset Purchase
      Agreement by and between the undersigned and the Company dated November 7,
      2006
      (the “APA”),
      on
      the Closing Date, hereby agrees that, without the prior written consent of
      the
      Company, the undersigned will not, for a period as determined under the
Schedule
      A
      attached
      hereto, commencing on the Closing Date (1) offer, pledge, sell, contract to
      sell, sell any option or contract to purchase, purchase any option or contract
      to sell, or otherwise dispose of or transfer, the Restricted Shares or (2)
      enter
      into any swap or other derivative transaction that transfers to another, in
      whole or in part, directly or indirectly, the economic consequence of ownership
      of respective part of the Restricted Shares as determined under Schedule
      A
      hereunder, whether any such transaction or swap described in clause (1) or
      (2)
      above is to be settled by delivery Restricted Shares, in cash or otherwise;
      provided however that the undersigned shall be entitled to pledge the Restricted
      Shares in order to secure financing for the undersigned's (or its Affiliates)
      benefit, including without limitation pursuant to Section 8.6 of the APA,
      subject to the Restricted Shares being locked up pursuant to the terms of this
      Lock-Up Agreement (the “Lock
      Up-Undertaking“).
      Capitalized terms used and not defined herein have the meanings assigned to
      them
      in the APA. 

     

    In
      furtherance of the foregoing, the Company, and any duly appointed transfer
      agent
      for the registration or transfer of the securities described herein, is hereby
      authorized to decline to make any transfer of securities if such transfer would
      constitute a violation or breach of this Lock-Up Agreement.

     

    The
      undersigned hereby represents and warrants that the undersigned has full power
      and authority to enter into this Lock-Up Agreement. All authority herein
      conferred or agreed to be conferred and any obligations of the undersigned
      shall
      be binding upon the successors, assigns, heirs or personal representatives
      of
      the undersigned.

     

    The
      undersigned understands that this Lock-Up Agreement is irrevocable.

     

    This
      Lock-Up Agreement shall be governed by and construed in accordance with the
      laws
      of the State of Israel.

     

     

    
       

      
         

        
          	 	
                  Very truly yours,

                   

                  SuperCom Ltd. 

                
	 	 	 
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title
                  	 

        

      

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    
      Exhibit
        A

    

     

    Schedule
      A

     

    
      	1.  	
              403,885
                Restricted Shares will be free from the Lock-Up Undertaking immediately
                on
                ________ (the "Closing Date").

            

    

     

    
      	2.  	
              Additional
                403,885 Restricted Shares will be free from the Lock-Up Undertaking
                on
                __________ [3 months after the Closing
                Date].

            

    

     

    
      	3.  	
              Additional
                403,885 Restricted Shares will be free from the Lock-Up Undertaking
                on
                __________ [6 months after the Closing
                Date].

            

    

     

    
      	4.  	
              Additional
                403,885 Restricted Shares will be free from the Lock-Up Undertaking
                on
                ___________ [9 months after the Closing
                Date].

            

    

     

    
      	5.  	
              Additional
                403,885 Restricted Shares will be free from the Lock-Up Undertaking
                on
                __________ [12 months after the Closing
                Date].

            

    

     

    
      	6.  	
              Additional
                403,885 Restricted Shares will be free from the Lock-Up Undertaking
                on
                ___________ [15 months after the Closing
                Date].

            

    

     

    
      	7.  	
              Additional
                403,890 Restricted Shares will be free from the Lock-Up Undertaking
                on
                _____________ [18 months after the Closing
                Date].

            

    

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    

    
      Exhibit
        B

    

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (this “Agreement”)
      is
      made and entered into as of ________________, 2006 by and between On Track
      Innovations Ltd., an Israeli corporation (the “Company”),
      and
      SuperCom Ltd., an Israeli corporation (“SuperCom”).

     

    This
      Agreement is made pursuant to the Asset Purchase Agreement, dated as of the
      date
      hereof, between the Company and SuperCom (the “Purchase
      Agreement”.
      All
      capitalized terms used but not defined herein shall bear the meaning ascribed
      to
      them in the Purchase Agreement).

     

    The
      parties hereby agree as follows:

     

     

    1. Certain
      Definitions.

    As
      used
      in this Agreement, the following terms shall have the following
      meanings:

     

    “Affiliate”
means,
      with respect to any person, any other person which directly or indirectly
      controls, is controlled by, or is under common control with, such
      person.

     

    “Business
      Day”
means
      a
      day, other than a Saturday or Sunday, on which banks in Israel are open for
      the
      general transaction of business.

     

    “Filing
      Deadline”
means
      (a) with respect to the initial Registration Statement required to be filed
      under Section 2(a)(i), the later of: (i) ninety (90) days after the Closing
      Date; or (ii) 45 days after receipt of all information required from SuperCom
      to
      file the initial Registration Statement, and (b) with respect to any additional
      Registration Statements that may be required pursuant to Section 2(a)(ii),
      the
      30th
      day
      following (x) if such Registration Statement is required because the SEC shall
      have notified the Company in writing that certain Registrable Securities were
      not eligible for inclusion on a previously filed Registration Statement, the
      date or time on which the SEC shall indicate as being the first date or time
      that such Registrable Securities may then be included in a Registration
      Statement, or (y) if such Registration Statement is required for a reason other
      than as described in (x) above, the date on which the Company first knows,
      or
      reasonably should have known, that such additional Registration Statement(s)
      is
      required; provided,
      however,
      that if
      such Registration Statement under Section 2(a)(ii) is required to be filed
      due
      to SuperCom's failure to provide necessary information requested by the Company
      in connection with the preparation and filing of a Registration Statement
      hereunder, including, without limitation, information required under Regulation
      S-X, then such Registration Statement shall be filed no later than 45 days
      following the receipt of all required information.

     

    “Ordinary
      Shares”
shall
      mean the Company’s Ordinary Shares, par value NIS0.10 per share, and any
      securities into which such Ordinary Shares may hereinafter be
      reclassified.

     

    “Prospectus”
shall
      mean (i) any preliminary or final prospectus included in any Registration
      Statement, as amended or supplemented by any prospectus supplement, with respect
      to the terms of the offering of any portion of the Registrable Securities
      covered by such Registration Statement and by all other amendments and
      supplements to the prospectus, including post-effective amendments and all
      material incorporated by reference in such prospectus, and (ii) any “free
      writing prospectus” as defined in Rule 163 under the 1933 Act.

     

    
      
        
        

      

      
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        Exhibit
          B

      

       

    

    “Register,”
      “registered”
and
      “registration”
refer
      to a registration made by preparing and filing a Registration Statement or
      similar document in compliance with the 1933 Act (as defined below), and the
      declaration or ordering of effectiveness of such Registration Statement or
      document.

     

    “Registrable
      Securities”
shall
      mean (i) the Shares and (ii) any other securities issued or issuable with
      respect to or in exchange for Registrable Securities.

     

    “Registration
      Statement”
shall
      mean any registration statement of the Company filed under the 1933 Act that
      covers the resale of any of the Registrable Securities pursuant to the
      provisions of this Agreement, amendments and supplements to such Registration
      Statement, including post-effective amendments, all exhibits and all material
      incorporated by reference in such Registration Statement.

     

    “SEC”
means
      the U.S. Securities and Exchange Commission.

     

    “Shares”
means
      the Ordinary Shares issued pursuant to the Purchase Agreement.

     

    “1933
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

     

    “1934
      Act”
means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      promulgated thereunder.

     

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

       

      
        Exhibit
          B

         

      

    

    2. Registration.

     

    (a)  Registration
      Statements.

     

    (i)          Promptly
      following the Closing Date (as defined in the Purchase Agreement) but no later
      than the Filing Deadline, the Company shall prepare and file with the SEC a
      Registration Statement on Form F-3 (or, if Form F-3 is not then available to
      the
      Company, on such form of registration statement as is then available to effect
      a
      registration for resale of the Registrable Securities), covering the resale
      of
      the Registrable Securities. Such Registration Statement shall include a plan
      of
      distribution substantially in the form attached hereto as Exhibit
      A
      (subject
      to any comments thereon by the SEC). Such Registration Statement also shall
      cover, to the extent allowable under the 1933 Act and the rules promulgated
      thereunder (including Rule 416), such indeterminate number of additional
      Ordinary Shares resulting from stock splits, stock dividends or similar
      transactions with respect to the Registrable Securities. The Registration
      Statement (and each amendment or supplement thereto, and each request for
      acceleration of effectiveness thereof) shall be provided in accordance with
      Section 3(c) to SuperCom and its counsel prior to its filing or other
      submission. If a Registration Statement covering the Registrable Securities
      is
      not filed with the SEC by the Filing Deadline, the Company will make pro rata
      payments to SuperCom, as liquidated damages and not as a penalty, in an amount
      equal to 0.75% of the fair market value of the aggregate consideration received
      by SuperCom pursuant to the Purchase Agreement (calculated based on the average
      closing price of the Ordinary Share traded on Nasdaq Global Market during the
      ten (10) trading days prior to the date of the Purchase Agreement) of such
      Registrable Securities released from the lock-up undertaking pursuant to the
      Lock-Up Agreement at such time (and in the event such number changes during
      the
      period, the weighted-average number of such Registrable Securities, during
      the
      applicable period) (“Liquidated
      Damages“))
      for
      each 30-day period or pro rata for any portion thereof following the Filing
      Deadline for which no Registration Statement is filed with respect to the
      Registrable Securities payable within 3 Business Days after the end of such
      successive 30-day period (or portion thereof); provided,
      however,
      that in
      no event shall such Liquidated Damages in the aggregate exceed 10% of such
      aggregate consideration received by SuperCom pursuant to the Purchase Agreement.
      Such payments shall be made to SuperCom in cash. In recognition of the
      difficulty of determining SuperCom's damages or loss as a result of the
      Registration Statement not being filed within the time periods described above,
      it is hereby agreed that the foregoing amount of Liquidated Damages is deemed
      to
      represent a reasonable estimate of SuperCom's damages and shall be the sole
      monetary remedy of SuperCom in this regard, but shall not affect the right
      of
      SuperCom to seek injunctive relief.

    

    
      
        
        

      

      
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      Exhibit
        B

    

     

    (ii)           Additional
      Registrable Securities.
      If for
      any reason the SEC does not permit all of the Registrable Securities to be
      included in the Registration Statement filed pursuant to Section 2(a)(i), or
      for
      any other reason any outstanding Registrable Securities are not then covered
      by
      an effective Registration Statement, then the Company shall prepare and file
      with the SEC by the Filing Deadline an additional Registration Statements on
      Form F-3 (or, if Form F-3 is not then available to the Company, on such form
      of
      registration statement as is then available to effect a registration for resale
      of such additional Ordinary Shares (the “Additional Shares”)) covering the
      resale of the Additional Shares. Such Registration Statement also shall cover,
      to the extent allowable under the 1933 Act and the rules promulgated thereunder
      (including Rule 416), such indeterminate number of additional Ordinary Shares
      resulting from stock splits, stock dividends or similar transactions with
      respect to the Additional Shares. The Registration Statement (and each amendment
      or supplement thereto, and each request for acceleration of effectiveness
      thereof) shall be provided in accordance with Section 3(c) to SuperCom and
      its
      counsel prior to its filing or other submission. If a Registration Statement
      covering the Additional Shares is required to be filed under this Section
      2(a)(ii) and is not filed with the SEC by the Filing Deadline, the Company
      will
      make pro rata payments to SuperCom, as liquidated damages and not as a penalty,
      in an amount equal to the Liquidated Damages multiplied by a fraction, the
      numerator of which is the Registrable Securities not included in the
      Registration Statement filed pursuant to Section 2(a)(i) and the denominator
      of
      which is all of the Registrable Securities, and in the same manner such
      Liquidated Damages are being paid under Section 2.1(a)(i) above. Such payments
      shall be made to SuperCom in cash. In recognition of the difficulty of
      determining SuperCom's damages or loss as a result of the Registration Statement
      not being filed within the time periods described above, it is hereby agreed
      that the foregoing amount of Liquidated Damages is deemed to represent a
      reasonable estimate of SuperCom's damages and shall be the sole monetary remedy
      of SuperCom in this regard, but shall not affect the right of SuperCom to seek
      injunctive relief.

     

    (b)  Expenses.
      The
      Company will pay all expenses associated with each registration, including
      filing and printing fees, the Company’s counsel and accounting fees and
      expenses, costs associated with clearing the Registrable Securities for sale
      under applicable state securities laws and listing fees, but excluding
      discounts, commissions, fees of underwriters, selling brokers, dealer managers
      or similar securities industry professionals with respect to the Registrable
      Securities being sold. It is hereby clarified that the Company shall not pay
      any
      fees and expenses of counsel to SuperCom or any other of SuperCom’s expenses in
      connection with the registration.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    
      Exhibit
        B

    

     

    (c)  Effectiveness.
      The
      Company shall use reasonable best efforts to have the Registration Statement
      declared effective as soon as practicable. The Company shall notify SuperCom
      by
      facsimile or e-mail as promptly as practicable, and in any event, within
      twenty-four (24) hours, after any Registration Statement is declared effective
      and shall promptly provide SuperCom with copies of any related Prospectus to
      be
      used in connection with the sale or other disposition of the securities covered
      thereby. If (A)(x) a Registration Statement covering the Registrable Securities
      is not declared effective by the SEC prior to the earlier of (i) ten (10)
      Business Days after the SEC shall have informed the Company that no review
      of
      the Registration Statement will be made or that the SEC has no further comments
      on the Registration Statement or (ii) the 120th
      day
      after the earlier of the Filing Deadline or the filing of the Registration
      Statement (provided that SuperCom did not delay the declaration of the
      Registration Statement as effective), or (y) a Registration Statement covering
      Additional Shares is not declared effective by the SEC within one-hundred and
      twenty (120) days following the time such Registration Statement was required
      to
      be filed pursuant to Section 2(a)(ii); except, in each case, due solely to
      SuperCom's failure to provide the necessary information requested by the Company
      in connection with the preparation and filing of a Registration Statement
      hereunder, including, without limitation, information required under Regulation
      S-X, or
      (B)
      after a Registration Statement has been declared effective by the SEC, sales
      cannot be made pursuant to such Registration Statement for any reason (including
      without limitation by reason of a stop order, or the Company’s failure to update
      the Registration Statement), but excluding the inability of SuperCom to sell
      the
      Registrable Securities covered thereby due to market conditions and except
      as
      excused pursuant to subparagraph (e) below,then
      the
      Company will make pro rata payments to SuperCom, as liquidated damages and
      not
      as a penalty, in an amount equal to the Liquidated Damages for each 30-day
      period or pro rata for any portion thereof following the date by which such
      Registration Statement should have been effective. The amounts payable as
      Liquidated Damages pursuant to this paragraph shall be payable within three
      (3)
      Business Days at the end of such successive 30-day period (or portion thereof);
      provided,
      however,
      that in
      no event shall such Liquidated Damages in the aggregate exceed 10% of such
      aggregate consideration received by SuperCom pursuant to the Purchase Agreement.
      Such payments shall be made to SuperCom in cash. In recognition of the
      difficulty of determining SuperCom's damages or loss as a result of the
      Registration Statement not being declared effective within the time periods
      described above, it is hereby agreed that the foregoing amount of Liquidated
      Damages is deemed to represent a reasonable estimate of SuperCom's damages
      and
      shall be the sole monetary remedy of SuperCom in this regard, but shall not
      affect the right of SuperCom to seek injunctive relief.

     

    (d)  Notwithstanding
      anything herein to the contrary, the Company’s obligations hereunder shall be
      suspended with respect to the Registrable Securities in the event that SuperCom
      fails to provide promptly to the Company such information as the Company may
      reasonably request at any time to enable the Company to comply with any
      applicable law or regulation or to facilitate preparation of a Registration
      Statement.

     

    (e)  Suspension.

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

     

    (i)          In
      addition to any suspension rights under Section 2(e)(ii) below, upon the
      happening of any pending corporate development, public filing with the SEC
      or
      similar event, that, in the reasonable judgment of Company's
      Board
      of
      Directors, renders it advisable to suspend the use of the Prospectus or upon
      the
      request by an underwriter in connection with an underwritten public offering
      of
      the Company's securities, the Company may, on not more than two (2) occasions
      each calendar year and for not more than forty-five (45) days on each such
      occasion, suspend use of the Prospectus, upon written notice to SuperCom (which
      notice will not disclose the content of any material non-public information
      and
      will indicate the date of the beginning and end of the intended period of
      suspension, if known), in which case SuperCom shall discontinue any disposition
      of Registrable Securities by the Registration Statement or Prospectus until
      copies of a supplemented or amended Prospectus are distributed to SuperCom
      or
      until SuperCom is advised in writing by the Company that sales of Registrable
      Securities under the applicable Prospectus may be resumed and have received
      copies of any additional or supplemental filings that are incorporated or deemed
      incorporated by reference in any such Prospectus; provided,
      however,
      that
      the Company may not suspend use of the Prospectus on more than two (2) occasion
      for more than sixty (60) days each time, during each calendar year period
      following the Closing Date and ending on such date that the Registration
      Statement is not effective and can not be used for resale of the Registrable
      Securities. In the event the reason for such Suspension ceased to exist, the
      Company will use its commercially reasonable efforts to cause the use of the
      Prospectus so suspended to be resumed as soon as possible after delivery of
      a
      Suspension Notice (as defined below) to SuperCom. The suspension and notice
      thereof described in the foregoing sentences shall be held by SuperCom in
      strictest confidence and shall not be disclosed by SuperCom.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

     

    (ii)         Subject
      to Section 2(e)(iii) below, in the event of: (1) any request by the SEC or
      any
      other U.S. federal or state governmental authority during the Effectiveness
      Period for amendments or supplements to a Registration Statement or related
      prospectus or for additional information, (2) the issuance by the SEC or any
      other U.S. federal or state governmental authority of any stop order suspending
      the effectiveness of a Registration Statement or the initiation of any
      proceedings for that purpose, (3) the receipt by the Company of any notification
      with respect to the suspension of the qualification or exemption from
      qualification of any of the Registrable Securities for sale in any jurisdiction
      or the initiation of any proceeding for such purpose, or (4) any event or
      circumstance which necessitates the making of any changes in the Registration
      Statement or Prospectus, or any document incorporated or deemed to be
      incorporated therein by reference, so that, in the case of the Registration
      Statement, it will not contain any untrue statement of a material fact or any
      omission to state a material fact required to be stated therein or necessary
      to
      make the statements therein not misleading, and that in the case of the
      Prospectus, it will not contain any untrue statement of a material fact or
      any
      omission to state a material fact required to be stated therein or necessary
      to
      make the statements therein, in the light of the circumstances under which
      they
      were made, not misleading, then the Company shall deliver a certificate in
      writing to SuperCom (“Suspension Notice”) to the effect of the foregoing (which
      notice will not disclose the content of any material non-public information
      and
      will indicate the date of the beginning and end of the intended period of
      suspension, if known), and, upon receipt of such Suspension Notice, SuperCom
      will discontinue disposition of Registrable Securities covered by the
      Registration Statement or Prospectus (“Suspension”) until SuperCom's receipt of
      copies of a supplemented or amended Prospectus prepared and filed by the
      Company, or until SuperCom is advised in writing by the Company that the current
      Prospectus may be used, and have received copies of any additional or
      supplemental filings that are incorporated or deemed incorporated by reference
      in any such prospectus. In the event of any Suspension, the Company will use
      its
      commercially reasonable efforts to cause the use of the Prospectus so suspended
      to be resumed as soon as possible after delivery of a Suspension Notice to
      SuperCom. The Suspension and Suspension Notice described in this Section
      2(e)(ii) shall be held by SuperCom in strictest confidence and shall not be
      disclosed by SuperCom.

     

    (iii)        Provided
      that a Suspension is not then in effect, SuperCom may sell Registrable
      Securities under the Registration Statement, provided that SuperCom arranges
      for
      delivery of a current Prospectus to the transferee of such Registrable
      Securities to the extent such delivery is required by applicable law. In the
      event of a sale of Registrable Securities by SuperCom, SuperCom must also
      deliver to the Company's transfer agent, with a copy to the Company, a
      certificate of subsequent sale reasonably satisfactory to the Company, so that
      ownership of the Registrable Securities may be properly transferred. The Company
      will cooperate to facilitate the timely preparation and delivery of certificates
      (unless otherwise required by applicable law) representing Registrable
      Securities sold.

     

    3. Company
      Obligations.
      The
      Company will use reasonable best efforts to effect the registration of the
      Registrable Securities in accordance with the terms hereof, and pursuant thereto
      the Company will, as expeditiously as possible:

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

       

      Exhibit
        B

       

    

    (a)  use
      reasonable best efforts to cause such Registration Statement to become effective
      and to remain continuously effective for a period that will terminate upon
      the
      earlier of (i) the date on which all Registrable Securities covered by such
      Registration Statement as amended from time to time, have been sold, (ii) the
      date on which all Registrable Securities covered by such Registration Statement
      may be sold by non-Affiliates of the Company immediately without registration
      under the Securities Act and without volume restrictions pursuant to Rule
      144(k), or (iii) 30 months following the date the Registration Statement
      covering all Registrable Securities was declared effective (the “Effectiveness
      Period”), and advise SuperCom in writing when the Effectiveness Period has
      expired;

     

    (b)  prepare
      and file with the SEC such amendments and post-effective amendments to the
      Registration Statement and the Prospectus as may be necessary to keep the
      Registration Statement effective for the Effectiveness Period and to comply
      with
      the provisions of the 1933 Act and the 1934 Act with respect to the distribution
      of all of the Registrable Securities covered thereby;

     

    (c)  provide
      copies of each Registration Statement and all amendments and supplements thereto
      to SuperCom no fewer than four (4) days prior to their filing with the
      SEC;

     

    (d)  furnish
      to SuperCom and its legal counsel (i) promptly after the same is prepared and
      publicly distributed, filed with the SEC, or received by the Company (but not
      later than two (2) Business Days after the filing date, receipt date or sending
      date, as the case may be) one (1) copy of any Registration Statement and any
      amendment thereto, each preliminary prospectus and Prospectus and each amendment
      or supplement thereto, and each letter written by or on behalf of the Company
      to
      the SEC or the staff of the SEC, and each item of correspondence from the SEC
      or
      the staff of the SEC, in each case relating to such Registration Statement
      if
      and to the extent the Company deems such information to be applicable to
      SuperCom (other than any portion of any thereof which contains information
      for
      which the Company has sought confidential treatment), and (ii) such number
      of
      copies of a Prospectus, including a preliminary prospectus, and all amendments
      and supplements thereto and such other documents as SuperCom may reasonably
      request in order to facilitate the disposition of the Registrable Securities
      owned by SuperCom that are covered by the related Registration
      Statement;

     

    (e)  use
      reasonable best efforts to (i) prevent the issuance of any stop order or other
      suspension of effectiveness and, (ii) if such order is issued, obtain the
      withdrawal of any such order at the earliest possible moment;

     

    (f)  prior
      to
      any public offering of Registrable Securities, use reasonable best efforts
      to
      register or qualify or cooperate with SuperCom and its counsel in connection
      with the registration or qualification of such Registrable Securities for offer
      and sale under the securities or blue sky laws of such jurisdictions requested
      by SuperCom and do any and all other commercially reasonable acts or things
      necessary or advisable to enable the distribution in such jurisdictions of
      the
      Registrable Securities covered by the Registration Statement;
      provided, however, that the Company shall not be required in connection
      therewith or as a condition thereto to (i) qualify to do business in any
      jurisdiction where it would not otherwise be required to qualify but for this
      Section 3(f), (ii) subject itself to general taxation in any jurisdiction where
      it would not otherwise be so subject but for this Section 3(f), or (iii) file
      a
      general consent to service of process in any such jurisdiction;

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

     

    (g)  use
      reasonable best efforts to cause all Registrable Securities covered by a
      Registration Statement to be listed on each securities exchange, interdealer
      quotation system or other market on which similar securities issued by the
      Company are then listed;

     

    (h)  immediately
      notify SuperCom, at any time prior to the end of the Effectiveness Period,
      upon
      discovery that, or upon the happening of any event as a result of which, the
      Prospectus includes an untrue statement of a material fact or omits to state
      any
      material fact required to be stated therein or necessary to make the statements
      therein not misleading in light of the circumstances then existing, and promptly
      prepare, file with the SEC and furnish to such holder a reasonable number of
      copies of a supplement to or an amendment of such Prospectus as may be necessary
      so that such Prospectus shall not include an untrue statement of a material
      fact
      or omit to state a material fact required to be stated therein or necessary
      to
      make the statements therein not misleading in light of the circumstances then
      existing.; and

     

    (j)       With
      a
      view to making available to SuperCom the benefits of Rule 144 (or its successor
      rule) and any other rule or regulation of the SEC that may at any time permit
      SuperCom to sell Ordinary Shares to the public without registration, the Company
      covenants and agrees to use its reasonable best efforts to: (i) make and keep
      public information available, as those terms are understood and defined in
      Rule
      144, until the earlier of (A) such date as all of the Registrable Securities
      may
      be resold pursuant to Rule 144(k) or any other rule of similar effect or (B)
      such date as all of the Registrable Securities shall have been resold; (ii)
      file
      with the SEC in a timely manner all reports and other documents required of
      the
      Company under the 1934 Act; and (iii) furnish to SuperCom upon request, as
      long
      as SuperCom owns any Registrable Securities, (A) a copy of the Company’s most
      recent Annual Report on Form 20-F or Statement of a Foreign Private Issuer
      on
      Form 6-K, and (B) such other information as may be reasonably requested in
      order
      to avail SuperCom of any rule or regulation of the SEC that permits the selling
      of any such Registrable Securities without registration.

    

     

    4. Due
      Diligence Review; Information.
      Upon
      reasonable notice and without undue interference of the Company’s business or
      operations, the Company shall make available, during normal business hours,
      for
      inspection and review by SuperCom, advisors to and representatives of SuperCom
      (who may or may not be affiliated with SuperCom and who are reasonably
      acceptable to the Company), all relevant publicly available, non-confidential
      financial and other records, pertinent corporate documents and properties of
      the
      Company as is customary for due diligence examinations in connection with public
      offerings, and cause the Company's officers, directors and employees to supply
      all such relevant publicly available non-confidential information reasonably
      requested by SuperCom, its advisors to and representatives mentioned above.
      

     

    The
      Company shall not disclose material nonpublic information to SuperCom, or to
      advisors to or representatives of SuperCom, unless prior to disclosure of such
      information the Company identifies such information as being material nonpublic
      information and provides SuperCom, such advisors and representatives with the
      opportunity to accept or refuse to accept such material nonpublic information
      for review and SuperCom, if it wishes to obtain such information, enters into
      an
      appropriate confidentiality agreement with the Company with respect
      thereto.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

     

    5. Obligations
      of SuperCom.
      

     

    (a)  SuperCom
      shall furnish in writing to the Company such information regarding itself,
      the
      Registrable Securities held by it and the intended method of disposition of
      the
      Registrable Securities held by it, as shall be reasonably required to effect
      the
      registration of such Registrable Securities and shall execute such documents
      in
      connection with such registration as the Company may reasonably request. At
      least sixty (60) days prior to the first anticipated filing date of any
      Registration Statement, the Company shall notify SuperCom of the information
      the
      Company requires from SuperCom to have any of the Registrable Securities
      included in the Registration Statement. SuperCom shall provide such information
      to the Company at least forty-five (45) days prior to the first anticipated
      filing date of such Registration Statement to have any of the Registrable
      Securities included in the Registration Statement, in order to comply with
      Item
      5(b)(1) of Form F-3 or a successor provision thereof.

     

    (b)  SuperCom,
      by its acceptance of the Registrable Securities, agrees to cooperate with the
      Company as reasonably requested by the Company in connection with the
      preparation and filing of a Registration Statement hereunder.

     

    (c)  SuperCom
      agrees that, upon receipt of any notice from the Company of either (i) the
      commencement of the applicable suspension pursuant to Section 2(e) above, or
      (ii) the happening of an event pursuant to Section 3(h) hereof, SuperCom will
      immediately discontinue disposition of Registrable Securities pursuant to the
      Registration Statement covering such Registrable Securities, until SuperCom
      is
      advised by the Company that such dispositions may again be made.

     

    (d)  SuperCom
      represents, warrants and covenants that neither it nor any affiliate thereof
      is or
      has
      engaged, or will engage, in (i) any "short sales" (as such term is defined
      in
      Rule 200 promulgated under the Exchange Act) of the Registrable Securities,
      including, without limitation, the maintaining of any short position with
      respect to, establishing or maintaining a "put equivalent position" (within
      the
      meaning of Rule 16a-1(h) under the Exchange Act) with respect to, entering
      into
      any swap, derivative transaction or other arrangement (whether any such
      transaction is to be settled by delivery of Ordinary Shares, other securities,
      cash or other consideration) that transfers to another, in whole or in part,
      any
      economic consequences or ownership, or otherwise dispose of, any of the
      Registrable Securities or (ii) any hedging transaction which establishes a
      net
      short position with respect to the Registrable Securities.

     

    6. Indemnification.

     

    (a)  Indemnification
      by the Company.
      The
      Company will indemnify and hold harmless SuperCom and its officers, directors,
      employees and agents, successors and assigns, and each other person, if any,
      who
      controls SuperCom within the meaning of the 1933 Act, against any losses,
      claims, damages or liabilities, joint or several, to which they may become
      subject under the 1933 Act or otherwise, insofar as such losses, claims, damages
      or liabilities (or actions in respect thereof) arise out of or are based upon:
      (i) any untrue statement or alleged untrue statement of any material fact
      contained in any Registration Statement, any preliminary Prospectus or final
      Prospectus, or any amendment or supplement thereof; (ii) any blue sky
      application or other document executed by the Company specifically for that
      purpose or based upon written information furnished by the Company filed in
      any
      state or other jurisdiction in order to qualify any or all of the Registrable
      Securities under the securities laws thereof (any such application, document
      or
      information herein called a “Blue Sky Application”); (iii) the omission or
      alleged omission to state therein a material fact required to be stated therein
      or necessary to make the statements therein not misleading; (iv) any violation
      by the Company or its agents of any rule or regulation promulgated under the
      1933 Act applicable to the Company or its agents and relating to action or
      inaction required of the Company in connection with such registration; or (v)
      any failure to register or qualify the Registrable Securities included in any
      such Registration in any state where the Company or its agents has affirmatively
      undertaken or agreed in writing that the Company will undertake such
      registration or qualification on SuperCom’s behalf and will reimburse SuperCom,
      and each such officer, director or member and each such controlling person
      for
      any legal or other expenses reasonably incurred by them in connection with
      investigating or defending any such loss, claim, damage, liability or action;
      provided,
      however,
      that
      the Company will not be liable in any such case if and to the extent that any
      such loss, claim, damage or liability arises out of or is based upon (i) an
      untrue statement or alleged untrue statement or omission or alleged omission
      so
      made in conformity with information furnished by SuperCom or any such
      controlling person in writing specifically for use in such Registration
      Statement or Prospectus; or (ii) the use of an outdated or defective Prospectus
      after the Company has notified SuperCom in writing that the Prospectus is
      outdated or defective pursuant to Section 2(e) above.

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

       

      Exhibit
        B

       

    

    (b)  Indemnification
      by SuperCom.
      SuperCom agrees to indemnify and hold harmless the Company, its directors,
      officers, employees, agents, successors and assigns, and each person who
      controls the Company (within the meaning of the 1933 Act) against any losses,
      claims, damages, liabilities and expense (including reasonable attorney fees)
      resulting from any untrue statement or alleged untrue statement of a material
      fact or any omission or alleged ommission of a material fact required to be
      stated in the Registration Statement or Prospectus or amendment or supplement
      thereto or necessary to make the statements therein not misleading, to the
      extent, but only to the extent, that such untrue or alleged untrue statement
      or
      omission or alleged omission is contained in information furnished in writing
      by
      SuperCom to the Company specifically for inclusion in such Registration
      Statement or preliminary Prospectus or Prospectus or amendment or supplement
      thereto. In no event shall the liability of SuperCom be greater in amount than
      the dollar amount of the proceeds (net of all expense paid by SuperCom in
      connection with any claim relating to this Section 6 and the amount of any
      damages SuperCom has otherwise been required to pay by reason of such untrue
      statement or omission) received by SuperCom upon the sale of the Registrable
      Securities included in the Registration Statement giving rise to such
      indemnification obligation. For the avoidance of doubt, the provisions of this
      Section 6(b) will remain in full force and effect and survive the sale by
      SuperCom of the Registrable Securities covered by the Registration
      Statement.

     

    (c)  Conduct
      of Indemnification Proceedings.
      Any
      person entitled to indemnification hereunder shall (i) give prompt notice to
      the
      indemnifying party of any claim with respect to which it seeks indemnification
      and (ii) permit such indemnifying party to assume the defense of such claim
      with
      counsel reasonably satisfactory to the indemnified party; provided
      that any
      person entitled to indemnification hereunder shall have the right to employ
      separate counsel and to participate in the defense of such claim, but the fees
      and expenses of such counsel shall be at the expense of such person unless
      (a)
      the indemnifying party has agreed to pay such fees or expenses, or (b) the
      indemnifying party shall have failed to assume the defense of such claim and
      employ counsel reasonably satisfactory to such person or (c) in the reasonable
      judgment of any such person, based upon written advice of its counsel, a
      conflict of interest exists between such person and the indemnifying party
      with
      respect to such claims (in which case, if the person notifies the indemnifying
      party in writing that such person elects to employ separate counsel at the
      expense of the indemnifying party, the indemnifying party shall not have the
      right to assume the defense of such claim on behalf of such person); and
provided,
      further,
      that
      the failure of any indemnified party to give notice as provided herein shall
      not
      relieve the indemnifying party of its obligations hereunder, except to the
      extent that such failure to give notice shall materially adversely affect the
      indemnifying party in the defense of any such claim or litigation. It is
      understood that the indemnifying party shall not, in connection with any
      proceeding in the same jurisdiction, be liable for fees or expenses of more
      than
      one separate firm of attorneys at any time for all such indemnified parties.
      No
      indemnifying party will, except with the consent of the indemnified party,
      consent to entry of any judgment or enter into any settlement that does not
      include as an unconditional term thereof the giving by the claimant or plaintiff
      to such indemnified party of a release from all liability in respect of such
      claim or litigation.

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    Exhibit
      B

     

    (d)  Contribution.
      If for
      any reason the indemnification provided for in the preceding paragraphs (a)
      and
      (b) is unavailable to an indemnified party or insufficient to hold it harmless,
      other than as expressly specified therein, then the indemnifying party shall
      contribute to the amount paid or payable by the indemnified party as a result
      of
      such loss, claim, damage or liability in such proportion as is appropriate
      to
      reflect the relative fault of the indemnified party and the indemnifying party,
      as well as any other relevant equitable considerations. No person guilty of
      fraudulent misrepresentation within the meaning of Section 11(f) of the 1933
      Act
      shall be entitled to contribution from any person not guilty of such fraudulent
      misrepresentation. In no event shall the contribution obligation of a holder
      of
      Registrable Securities be greater in amount than the dollar amount of the
      proceeds (net of all expenses paid by such holder in connection with any claim
      relating to this Section 6 and the amount of any damages such holder has
      otherwise been required to pay by reason of such untrue or alleged untrue
      statement or omission or alleged omission) received by it upon the sale of
      the
      Registrable Securities giving rise to such contribution obligation.

     

    7. Miscellaneous.

     

    (a)  Amendments
      and Waivers.
      This
      Agreement may be amended only by a writing signed by the Company and SuperCom.
      The Company may take any action herein prohibited, or omit to perform any act
      herein required to be performed by it, only if the Company shall have obtained
      the written consent to such amendment, action or omission to act, of
      SuperCom.

     

    (b)  Notices.
      All
      notices and other communications provided for or permitted hereunder shall
      be
      made as set forth in Section 11.5 of the Purchase Agreement.

     

    (c)  Assignments
      and Transfers by SuperCom.
      The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      SuperCom and its successors and assigns. SuperCom may transfer or assign, in
      whole or from time to time in part, to one or more persons its rights hereunder
      in connection with the transfer of Registrable Securities by SuperCom to such
      person, provided that SuperCom complies with all laws applicable thereto and
      provides written notice of assignment to the Company promptly after such
      assignment is effected and provided further that the number of Registrable
      Securities so transferred is not less than 200,000.

     

    (d)  Assignments
      and Transfers by the Company.
      This
      Agreement may not be assigned by the Company (whether by operation of law or
      otherwise) without the prior written consent of SuperCom, provided, however,
      that the Company may assign its rights and delegate its duties hereunder to
      any
      surviving or successor corporation in connection with a merger or consolidation
      of the Company with another corporation, or a sale, transfer or other
      disposition of all or substantially all of the Company’s assets to another
      corporation, without the prior written consent of SuperCom, after notice duly
      given by the Company to SuperCom.

     

    (e)  Benefits
      of the Agreement.
      The
      terms and conditions of this Agreement shall inure to the benefit of and be
      binding upon the respective permitted successors and assigns of the parties.
      Nothing in this Agreement, express or implied, is intended to confer upon any
      party other than the parties hereto or their respective successors and assigns
      any rights, remedies, obligations, or liabilities under or by reason of this
      Agreement, except as expressly provided in this Agreement.

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    Exhibit
      B

     

    (f)  Counterparts;
      Faxes.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument. This Agreement may also be executed via facsimile, which shall
      be
      deemed an original.

     

    (g)  Titles
      and Subtitles.
      The
      titles and subtitles used in this Agreement are used for convenience only and
      are not to be considered in construing or interpreting this
      Agreement.

     

    (h)  Severability.
      Any
      provision of this Agreement that is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof but shall be interpreted as if it were written so as to be
      enforceable to the maximum extent permitted by applicable law, and any such
      prohibition or unenforceability in any jurisdiction shall not invalidate or
      render unenforceable such provision in any other jurisdiction. To the extent
      permitted by applicable law, the parties hereby waive any provision of law
      which
      renders any provisions hereof prohibited or unenforceable in any
      respect.

     

    (i)  Further
      Assurances.
      The
      parties shall execute and deliver all such further instruments and documents
      and
      take all such other actions as may reasonably be required to carry out the
      transactions contemplated hereby and to evidence the fulfillment of the
      agreements herein contained.

     

    (j)  Entire
      Agreement.
      This
      Agreement is intended by the parties as a final expression of their agreement
      and intended to be a complete and exclusive statement of the agreement and
      understanding of the parties hereto in respect of the subject matter contained
      herein. This Agreement supersedes all prior agreements and understandings
      between the parties with respect to such subject matter.

     

    (k)  Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Israel, without reference to the choice of law principles thereof.
      The
      Company and SuperCom consent to and hereby submit to the exclusive jurisdiction
      of the suitable court in Tel-Aviv Jaffa. 

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    
Exhibit
      B

     

    IN
      WITNESS WHEREOF, the parties have executed this Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

     

    

    
      	 	ON TRACK INNOVATIONS LTD.
	 	 
	 	 
	 	
              By:_________________________

              Name:
                

              Title:
                

            
	 	 
	 	 
	 	 
	 	 
	 	SUPERCOM LTD.
	 	 
	 	 
	 	
              By:_________________________

              Name:
                

              Title:
                

            

    

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

     

    Plan
      of Distribution

    

    The
      selling stockholders, which as used herein includes donees, pledgees,
      transferees or other successors-in-interest selling Ordinary Shares or interests
      in Ordinary Shares received after the date of this prospectus from a selling
      stockholder as a gift, pledge, partnership distribution or other transfer,
      may,
      from time to time, sell, transfer or otherwise dispose of any or all of their
      Ordinary Shares or interests in Ordinary Shares on any stock exchange, market
      or
      trading facility on which the Ordinary Shares are traded or in private
      transactions. These dispositions may be at fixed prices, at prevailing market
      prices at the time of sale, at prices related to the prevailing market price,
      at
      varying prices determined at the time of sale, or at negotiated
      prices.

    

    The
      selling stockholders may use any one or more of the following methods when
      disposing of Ordinary Shares or interests therein:

    

    -
      ordinary brokerage transactions and transactions in which the broker-dealer
      solicits purchasers;

    

    -
      block
      trades in which the broker-dealer will attempt to sell the Ordinary Shares
      as
      agent, but may position and resell a portion of the block as principal to
      facilitate the transaction;

    

    -
      purchases by a broker-dealer as principal and resale by the broker-dealer for
      its account;

    

    -
      an
      exchange distribution in accordance with the rules of the applicable
      exchange;

    

    -
      privately negotiated transactions;

    

    through
      the writing or settlement of options or other hedging transactions, whether
      through an options exchange or otherwise;

    

    -
      broker-dealers may agree with the selling stockholders to sell a specified
      number of such Ordinary Shares at a stipulated price per share; and

    

    -
      a
      combination of any such methods of sale.

    

    The
      selling stockholders may, from time to time, pledge or grant a security interest
      in some or all of the Ordinary Shares owned by them and, if they default in
      the
      performance of their secured obligations, the pledgees or secured parties may
      offer and sell the Ordinary Shares, from time to time, under this prospectus,
      or
      under an amendment to this prospectus under Rule 424(b)(3) or other applicable
      provision of the Securities Act amending the list of selling stockholders to
      include the pledgee, transferee or other successors in interest as selling
      stockholders under this prospectus. The selling stockholders also may transfer
      the Ordinary Shares in other circumstances, in which case the transferees,
      pledgees or other successors in interest will be the selling beneficial owners
      for purposes of this prospectus.

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

     

    In
      connection with the sale of our Ordinary Shares or interests therein, the
      selling stockholders may loan or pledge the Ordinary Shares to broker-dealers
      that in turn may sell these securities. The selling stockholders may also enter
      into option or other transactions with broker-dealers or other financial
      institutions or the creation of one or more derivative securities which require
      the delivery to such broker-dealer or other financial institution of Ordinary
      Shares offered by this prospectus, which Ordinary Shares such broker-dealer
      or
      other financial institution may resell pursuant to this prospectus (as
      supplemented or amended to reflect such transaction).

    

    The
      aggregate proceeds to the selling stockholders from the sale of the Ordinary
      Shares offered by them will be the purchase price of the Ordinary Shares less
      discounts or commissions, if any. Each of the selling stockholders reserves
      the
      right to accept and, together with their agents from time to time, to reject,
      in
      whole or in part, any proposed purchase of Ordinary Shares to be made directly
      or through agents. We will not receive any of the proceeds from this
      offering.

    

    The
      selling stockholders also may resell all or a portion of the Ordinary Shares
      in
      open market transactions in reliance upon Rule 144 under the Securities Act
      of
      1933, provided that they meet the criteria and conform to the requirements
      of
      that rule.

    

    The
      selling stockholders and any underwriters, broker-dealers or agents that
      participate in the sale of the Ordinary Shares or interests therein may be
      "underwriters" within the meaning of Section 2(11) of the Securities Act. Any
      discounts, commissions, concessions or profit they earn on any resale of the
      Ordinary Shares may be underwriting discounts and commissions under the
      Securities Act. Selling stockholders who are "underwriters" within the meaning
      of Section 2(11) of the Securities Act will be subject to the prospectus
      delivery requirements of the Securities Act.

    

    To
      the
      extent required, the Ordinary Shares to be sold, the names of the selling
      stockholders, the respective purchase prices and public offering prices, the
      names of any agents, dealer or underwriter, any applicable commissions or
      discounts with respect to a particular offer will be set forth in an
      accompanying prospectus supplement or, if appropriate, a post-effective
      amendment to the registration statement that includes this
      prospectus.

    

    In
      order
      to comply with the securities laws of some states, if applicable, the Ordinary
      Shares may be sold in these jurisdictions only through registered or licensed
      brokers or dealers. In addition, in some states the Ordinary Shares may not
      be
      sold unless they have been registered or qualified for sale or an exemption
      from
      registration or qualification requirements is available and is complied
      with.

    

    We
      have
      advised the selling stockholders that the anti-manipulation rules of Regulation
      M under the Exchange Act may apply to sales of Ordinary Shares in the market
      and
      to the activities of the selling stockholders and their affiliates. In addition,
      to the extent applicable, we will make copies of this prospectus (as it may
      be
      supplemented or amended from time to time) available to the selling stockholders
      for the purpose of satisfying the prospectus delivery requirements of the
      Securities Act. The selling stockholders may indemnify any broker-dealer that
      participates in transactions involving the sale of the Ordinary Shares against
      certain liabilities, including liabilities arising under the Securities
      Act.

    

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    We
      have
      agreed to indemnify the selling stockholders against liabilities, including
      liabilities under the Securities Act and state securities laws, relating to
      the
      registration of the Ordinary Shares offered by this prospectus.

    

    We
      have
      agreed with the selling stockholders to keep the registration statement of
      which
      this prospectus constitutes a part effective until the earlier of (1) such
      time
      as all of the Ordinary Shares covered by this prospectus have been disposed
      of
      pursuant to and in accordance with the registration statement or (2) the date
      on
      which the Ordinary Shares may be sold pursuant to Rule 144(k) of the Securities
      Act.

    

    

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

    
Exhibit
      C

     

    SERVICE
      AND SUPPLY AGREEMENT

     

    THIS
      SERVICE AND SUPPLY AGREEMENT (this “Agreement”),
      dated
      as of ___________ __,
      2006,
      is by and between SuperCom Ltd., an Israeli corporation (“Seller”)
      and On
      Track Innovations Ltd., an Israeli corporation (“Buyer”).

     

    WHEREAS,
      Buyer and Seller entered into an Asset Purchase Agreement of even date (the
      “APA”),
      to
      which this Agreement is attached as a copy; and

     

    WHEREAS,
      as a condition to Closing of the transactions contemplated in the APA, Seller
      and Buyer agreed to enter into this Agreement, that will set forth and define
      the parties' mutual rights and undertakings with respect to the Existing
      Projects, the Potential Projects (as defined hereinafter) and
      otherwise;

     

    NOW,
      THEREFORE, in consideration of the promises and the representations, warranties,
      covenants and agreements contained herein, and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      and
      intending to be legally bound hereby, the parties hereby agree as follows:
      

     

    ARTICLE
      I  

     

    Certain
      Definitions

     

    As
      used
      herein, and unless the context otherwise requires, the following terms (or
      any
      variant in the form thereof) shall have the following respective meanings.
      Without derogating from the aforesaid, and unless otherwise specifically defined
      herein or the context otherwise clearly requires, capitalized terms used in
      this
      Agreement shall have the meaning assigned to such terms in the APA.

     

    "Existing
      Contracts" those
      binding agreements entered into by Seller with respect to the Existing Projects
      or in connection therewith a purchase order has been granted, prior to the
      date
      of the APA and not assigned to Buyer, a list of which is attached hereto as
      Annex
      B1,
      accompanied by the date of their expiration.

     

    "Excluded
      Project"
      means
      that certain project set forth in Annex
      C.
      

     

    “Potential
      Projects”
means
      potential projects listed in Annex
      D
      hereto,
      which are on the date of the APA, in the stage of working leads and not assigned
      to Buyer. For the avoidance of doubt, any project not designated as an Existing
      Project on the date of the APA, shall be deemed as a Potential Project, even
      if
      on the date of this Agreement, the parties to such project have reached an
      agreement regarding the terms thereof, and such project shall be added to Annex
      D (and the respective contracts covering such project shall not be part of
      the
      Existing Contracts). 

     

    ARTICLE
      II  

     

    Existing
      Projects

     

    Section
      2.1  Grant
      of License.
      For the
      avoidance of doubt, it is made clear that the Existing Projects and the Excluded
      Project are not part of the Acquired Assets, and the rights in and to the
      Existing Projects and the Excluded Project are not transferred or assigned
      to
      Buyer. In order to enable Seller to perform and carry out the Existing Projects
      and the Excluded Project, Buyer hereby grants Seller an irrevocable, worldwide,
      non-exclusive, non-assignable and non-transferable license to utilize the
      applicable SuperCom Intellectual Property transferred to Buyer as part of the
      Acquired Assets for the purpose of carrying the Existing Projects and the
      Excluded Project (the "License").
      The
      License will be valid until the completion of each Existing Project and Excluded
      Project, individually, at which time, it will automatically expire with respect
      to that certain Existing Project or Excluded Project (except as otherwise
      provided in Annex
      E);
      provided, however, that in the event of termination of this Agreement for any
      reason (in whole or in part in connection with a specific project), the Buyer
      will be entitled nevertheless to be paid a license fee equal to 15% of the
      Direct Cost plus 15% of the Operational Cost as defined below of the relevant
      project as set forth in Annex
      B
      (which
      obligation shall survive the termination of this Agreement). 

     

    Section
      2.2  Buyer
      Services.
      Buyer
      hereby undertakes as follows:

     

    (a)Buyer
      hereby undertakes to: (i) supply all products and materials as required by
      Seller from time to time (which order shall be provided to Buyer at least 60
      days in advance in writing and in such format agreed by Buyer and Seller),
      and
      (ii) to provide all services as required by Seller from time to time (which
      order shall be provided to Buyer at least 60 days in advance in writing (or
      as
      agreed otherwise in writing) and in such format agreed to by Buyer and Seller).
      It is agreed that Seller will continue to act as the main contractor of all
      Existing Projects, while all duties with respect to performance of the Existing
      Projects required by Seller as aforesaid, will be carried out by Buyer as
      sub-contractor pursuant to this Agreement. Unless Buyer is otherwise requested
      by Seller, Buyer shall be dealing directly with customers in the Existing
      Projects, except for the Excluded Project. Seller shall have no right to use
      the
      services of any third party (including itself), (and as the date hereof has
      no
      agreement with any third party regarding the foregoing), other than the Buyer,
      in rendering and supplying the products, materials and services, Seller is
      required to provide under the Existing Contracts and the Excluded Project,
      provided that and as long as Buyer complies with and fulfills its undertakings
      under this Agreement to supply all products and materials and to provide all
      services. 

     

    Except
      for the services to be provided by Buyer per Seller’s request pursuant to the
      provisions of Section 2.2(a) above, Seller hereby undertakes to duly and timely
      perform its undertakings and/or any of its other duties under the Existing
      Projects.

     

    (b)Annex
      F,
      attached hereto is a frame order of the estimated services, products and
      materials to be provided by Buyer to Seller until December 31st
      2007.
Annex
      G,
      attached hereto is a forecast of the estimated services, products and materials
      to be provided by Buyer to Seller for the year 2008. A frame order for the
      year
      2008 shall be agreed upon by the parties by September 30th
      2008.

     

    (c)
      Deleted
      

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

     

    (d)In
      consideration for the supply of products and materials, and for the services
      to
      be performed by Buyer under this Agreement and in consideration for the License,
      Seller will pay Buyer the fees set forth in Annex
      H. 

     

    (e)Buyer
      will invoice the Seller for the applicable consideration set forth in
      sub-section (d) above upon each performance of the service or shipment of the
      products and/or materials, respectively, and will accompany such invoice with
      a
      written detail of the services performed and/or the products and/or materials
      supplied, and their related costs. Notwithstanding the aforesaid in this
      sub-section (e), it is agreed that until December 31, 2007, Buyer will invoice
      Seller for Direct Cost: Maintenance (as specified in Annex B) and for the
      Operational Cost in accordance with the terms set forth in Annex
      B.

     

    (f)Seller
      will pay each respective invoice within 30 days from the end of each month
      of
      receipt of Buyer's invoice against a proper tax invoice of Buyer. In addition,
      Seller will pay the applicable VAT on the date it is due to be paid by Buyer
      (against a proper tax invoice ('Heshbonit Mas')).

     

    Section
      2.3  Deleted.

     

    Section
      2.4  Expiration
      of and Changes to the Existing Contracts. 

     

    (a)Unless
      otherwise required by Buyer, Seller shall use its best efforts to cause the
      Existing Contracts and the Existing Projects to expire upon the earliest date
      possible according to the terms thereof, except of the Excluded Project. If
      Seller has a right to extend the term of such Existing Contracts and the
      Existing Projects, Seller shall not extend such Existing Contract and Existing
      Projects without Buyer's prior written consent. This sub section shall not
      apply
      to the Excluded Project.

     

    (b)Seller
      shall not make any change to any provision of the Existing Contracts and shall
      not take any actions in connection therewith not in accordance with their terms,
      without the prior written consent of Buyer. This provision shall also apply
      to
      the Excluded Projects, with respect to the period until December 31st
      2007
      within the frame order concluded between Seller and Buyer with respect to this
      period, and when frame order for the year 2008 is concluded between the Seller
      and Buyer, also for the year 2008 within the frame order concluded between
      Seller and Buyer with respect to this period; provided that and only in the
      case
      that such change has a material adverse affect on the interests of Buyer under
      this Agreement. 

     

    Section
      2.5  Renewal
      of Existing Contracts.
      Notwithstanding the foregoing, after termination or expiration of each Existing
      Contract, Seller shall use its best efforts to negotiate the renewal of the
      Existing Contract, unless otherwise instructed by Buyer, and to assign all
      rights in and to the renewal Existing Contract to Buyer, (except as otherwise
      provided in Annex
      E),
      after
      which such Existing Contract shall be the sole property of Buyer.

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

    ARTICLE
      III  

     

    Potential
      Projects 

     

    It
      is
      hereby agreed that the following terms and conditions will apply to the
      Potential Projects:

     

    Section
      3.1  Assignment
      of Rights.
      Seller
      hereby undertakes to use its best efforts in order to assign all rights and
      interest in and to the Potential Projects to Buyer, and subject to the approval
      and consent of all parties to each Potential Project (other than the Seller)
      and
      the Buyer, all rights and interest in and to any Potential Project, the
      assignment of which has been approved and consented to by all parties to said
      Potential Project (other than the Seller) and by the Buyer, will be assigned
      to
      Buyer as of the Closing Date.

     

    Subject
      to Seller's right to be paid certain Seller's Fee (as defined in Section 3.6
      below), Seller will have no rights derived from the Potential Projects, nor
      will
      Seller have any obligation in connection with the Potential Projects
      assigned.

     

    Section
      3.2  Non-assigned
      Potential Projects.
      Potential Projects and all rights related thereto which are not assigned to
      Buyer according to the terms of Section 3.1 hereinabove, will nevertheless
      be
      the sole property of Buyer as of the Closing, where Seller shall formally act
      as
      the main contractor. Seller shall act in accordance with Buyer's instructions
      with regard to all Potential Projects that are not assigned, including without
      limitations, withdraw from such bids as required by Buyer, revoke any Potential
      Project in the event any Potential Project materializes to a binding purchase
      order or contract, sign the binding formal contract as main contractor or
      otherwise, all subject to the instructions of Buyer. Concurrently with the
      execution of any formal contract by Seller with the party ordering the services
      under the Potential Project, Seller and Buyer will enter into a back to back
      agreement according to which Buyer will assume all of Seller's undertakings
      under said formal contract entered into by Seller, and will undertake to perform
      all such undertakings at its own cost and expense. 

     

    Section
      3.3  No
      Guarantee.
      For the
      avoidance of any doubt, it is made clear that no binding contracts have been
      signed with respect to any of the Potential Projects and Seller does not
      guarantee that any Potential Projects, whether assigned or not, will actually
      yield any purchase orders or binding contracts. Buyer will have no claim against
      Seller in case any or all of the Potential Projects do not materialize into
      binding agreement or purchase order.

     

    Section
      3.4  All
      services to be performed by Buyer with respect to each Potential Project will
      be
      provided by Buyer on a "back to back" basis to all obligations of Seller
      according to each Potential Project. 

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    Section
      3.5  Reserved
      

     

    Section
      3.6  In
      consideration of its undertakings under this Agreement with respect to the
      non-assigned Potential Projects, Seller will be entitled to a fee equal to
      all
      income minus the applicable third parties marketing expenses (if any) derived
      from the non-assigned Potential Projects (the "Net
      Consideration")
      multiplied by 7.5% plus VAT against a proper tax invoice ('Heshbonit Mas')
      (the
      "Seller's
      Fee").
      Seller's Fee will be paid by deducting Seller's Fee plus VAT from the net
      consideration. Seller will transfer to Buyer the Net Consideration, after
      deducting Seller’s Fee as aforesaid within five (5) business days following
      receipt of the applicable payment. 

     

    ARTICLE
      IIIA

    Additional
      Services, Products and Materials

     

    Section
      3.1AIt
      is
      hereby agreed that any additional services, products or materials requested
      by
      Seller and not covered by the provisions of Article II and Article III above,
      as
      and if agreed between Buyer and Seller, shall be performed by Buyer upon
      Seller’s request, . In consideration of such services, Buyer will be entitled to
      be paid a fee equal to its costs in performing the additional services, products
      or materials plus 50% of such costs, to be paid within 30 days from the end
      of
      each month of receipt of Buyer's invoice against a proper tax invoice of Buyer.
      In addition, Seller will pay the applicable VAT on Buyer's due date (against
      a
      proper tax invoice ('Heshbonit Mas')).

     

    ARTICLE
      IV

     

    Indemnification

     

    Section
      4.1  Indemnification
      by Buyer. Buyer
      hereby undertakes to indemnify Seller and agrees to hold it harmless from,
      any
      and all damages, claims, debts, actions, assessments, judgments, losses, fines,
      fees, penalties and expenses (including, without limitation, reasonable expenses
      of investigation and reasonable attorneys’ fees and expenses in connection with
      any action, suit or proceeding) (collectively, “Losses”)
      incurred or suffered by Seller arising out of: 

     

    (a)  Buyer's
      failure to duly and timely perform its undertakings and/or any of its other
      duties under any of the Existing Projects which were not assigned to Buyer
      and
      the Excluded Project; Provided that Buyer's obligation to indemnify Seller
      under
      this Section 4.1(a) is limited to and will apply only to its undertakings to
      supply products and materials under the Existing Projects and the Excluded
      Project and to the amount of consideration paid to Buyer under the term of
      Article II of the Agreement and further provided that Buyer's failure does
      not
      result from Seller's failure to comply with its undertakings under the terms
      of
      the APA and this Service and Supply Agreement.; and

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

    (b)  Buyer's
      failure to duly and timely perform its undertakings and/or any of its other
      duties under any non-assigned Potential Project; provided that Buyer's failure
      does not result from Seller's failure to comply with its undertakings under
      the
      terms of the APA and this Service and Supply Agreement. 

     

    (c)  
      Any
      claims or complaints against Seller initiated by any third party with respect
      to
      the performance of any Existing Projects not assigned to Buyer and the Excluded
      Project or the Potential Projects resulting from Buyer's failure as set forth
      in
      sub-sections (a) and (b) above.

     

    (d)  It
      is
      hereby agreed that Seller shall have no remedy against Buyer with regard to
      any
      breach or failure by Buyer and/or any Loss incurred by Seller other than those
      Losses covered by Sections 4.1(a), 4.1(b) and 4.1(c) above.

     

    Section
      4.2  The
      right
      of Seller and others to indemnification under this Section 4 shall lapse upon
      termination of the applicable customer's right to indemnification pursuant
      to
      its agreement with Seller. 

     

    Section
      4.3  Indemnification
      by Seller. Seller
      hereby undertakes to indemnify Buyer and agrees to hold it harmless from, any
      and all Losses incurred or suffered by Buyer arising out of (i) Seller’s failure
      to duly and timely perform its undertakings and/or any of its other duties
      under
      any of the Existing Projects (other than the Excluded Project) which were not
      assigned to Buyer pursuant to the terms of this Agreement; and (b) any claims
      or
      complaints against Buyer initiated by any third party with respect to the
      performance of any Existing Projects (other than the Excluded Project) not
      assigned to Buyer resulting from Seller’s failure to perform its undertakings
      and/or any of its other duties under any of the Existing Projects (other than
      the Excluded Project) not assigned to Buyer pursuant to the terms of this
      Agreement; provided that Seller's failure does not result from Buyer's failure
      to comply with its undertakings under the terms of the APA and this Service
      and
      Supply Agreement. 

     

    ARTICLE
      V

     

    Termination

     

    Section
      5.1  Termination.
      This
      Agreement may be terminated by:

     

    (a)  The
      mutual written consent of Seller and Buyer; or

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

    (b)  Seller,
      with regard to the applicable non-assigned Existing Project (together with
      the
      applicable Existing Contracts) or the applicable non-assigned Potential Project
      (“Applicable
      Terminated Project”),
      provided it is not then in material breach of any of its obligations hereunder,
      if Buyer fails to perform in any material respect any covenant pursuant to
      this
      Agreement with regard to the Applicable Terminated Project when performance
      thereof is due or Buyer shall have breached in material respect its obligations
      with regard to the Applicable Terminated Project and does not cure the failure
      or breach within thirty (30) days after Seller delivers written notice thereof;
      or

     

    (c)  Buyer,
      with regard to the Applicable Terminated Project, provided it is not then in
      material breach of any of its obligations hereunder, if Seller fails to perform
      in any material respect any covenant pursuant to this Agreement with regard
      to
      the Applicable Terminated Project when performance thereof is due or Seller
      shall have breached in material respect its obligations with regard to the
      Applicable Terminated Project and does not cure the failure or breach within
      thirty (30) days after Buyer delivers written notice thereof.

     

    ARTICLE
      VI

     

    Miscellaneous

     

    Section
      6.1  Independent
      Contractors.
      Both
      Buyer and Seller agree that they shall act as independent contractors in the
      performance of their undertakings hereunder and that nothing contained herein
      shall create or be construed to create an employer-employee relationship between
      the parties. 

     

    Section
      6.2  Counterparts.
      This
      Agreement may be executed in one or more counterparts, all of which shall be
      considered one and the same agreement, and shall become effective when one
      or
      more counterparts have been signed by each of the parties and delivered to
      the
      other party.

     

    Section
      6.3  Governing
      Law; Consent to Jurisdiction.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Israel without reference to the choice of law principles thereof.
      Buyer
      and Seller consent to and hereby submit to the exclusive jurisdiction of the
      suitable court in Tel-Aviv Jaffa. 

     

    Section
      6.4  Cooperation.
      In
      performing their undertakings under this Agreement, Buyer and Seller will adhere
      to any reasonable requests of the other party with respect to the performance
      of
      each other's duties. Any and all material written communication provided to
      Seller and sent by Seller in connection with the Existing Projects, Existing
      Contracts and the Potential Projects, shall be sent to Buyer upon receipt or
      delivery thereof.

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

    Section
      6.5  Entire
      Agreement.
      Except
      as provided in the APA, this Agreement (including agreements incorporated by
      reference herein), the Disclosure Schedule and the Exhibits hereto contain
      the
      entire agreement between the parties with respect to the subject matter hereof
      and there are no agreements, understandings, representations or warranties
      between the parties other than those set forth or referred to herein or therein.
      For the avoidance of doubt, the indemnification provision in the APA shall
      not,
      in any way, apply to this Agreement.

     

    Section
      6.6  Notices.
      All
      notices hereunder shall be made in accordance with the provisions of the
      APA.

     

    Section
      6.7  Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and assigns; provided, however, that no party
      hereto will assign its rights or delegate its obligations under this Agreement
      without the express prior written consent of each other party hereto, except
      that either party may assign this Agreement to any Entity that succeeds to
      substantially all of such party’s assets and liabilities, provided, however,
      that if such assignor is the Seller, at the time of such assignment, Seller
      is
      permitted to assign, the Existing Projects, the Existing Contracts and the
      Potential Projects not assigned to Buyer at such time.

     

    Section
      6.8  Headings:
      Definitions.
      The
      section and article headings contained in this Agreement are inserted for
      convenience of reference only and will not affect the meaning or interpretation
      of this Agreement. All references to Sections or Articles contained herein
      mean
      Sections or Articles of this Agreement unless otherwise stated.

     

    Section
      6.9  Amendment.
      This
      Agreement may not be amended, modified, superseded, canceled, renewed or
      extended except by a written instrument signed by the party to be charged
      therewith.

     

    Section
      6.10  Waiver;
      Effect of Waiver.
      No
      provision of this Agreement may be waived except by a written instrument signed
      by the party waiving compliance. No waiver by any party hereto of any of the
      requirements hereof or of any of such party’s rights hereunder shall release the
      other parties from full performance of their remaining obligations stated
      herein. No failure to exercise or delay in exercising on the part of any party
      hereto any right, power or privilege of such party shall operate as a waiver
      thereof, nor shall any single or partial exercise of any right, power or
      privilege preclude any other or further exercise thereof or the exercise of
      any
      other right, power or privilege by such party.

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

      Section
        6.11  Interpretation;
        Absence of Presumption 

       

    

    (a)  For
      the
      purposes hereof, (i) the terms “hereof,” “herein” and “herewith” and words of
      similar import shall, unless otherwise stated, be construed to refer to this
      Agreement as a whole (including all of the Schedules hereto) and not to any
      particular provision of this Agreement, and Article, Section, paragraph and
      Schedule references are to the Articles, Sections, paragraphs and Schedules
      to
      this Agreement unless otherwise specified, (ii) the word “including” and words
      of similar import when used in this Agreement means “including, without
      limitation,” unless the context otherwise requires or unless otherwise
      specified, (iii) the word “or” shall not be exclusive, (iv) provisions shall
      apply, when appropriate, to successive events and transactions and (v) all
      references to any period of days shall be deemed to be to the relevant number
      of
      calendar days.

     

    (b)  This
      Agreement shall be construed without regard to any presumption or rule requiring
      construction or interpretation against the party drafting or causing any
      instrument to be drafted.

     

    Section
      6.12  Remedies.
      No
      remedy under this Agreement or at law or in equity shall provide for or permit
      the payment of multiple, exemplary, punitive or consequential damages or any
      equitable equivalent thereof or substitute therefor, and the burden shall be
      on
      the party claiming loss to show actual loss in the amount claimed. Except for
      the right for indemnification, Seller and Buyer shall have no other or further
      remedy against each other under this Agreement with respect to the subject
      matter hereof. Notwithstanding the foregoing, and in addition thereto, Buyer
      shall have a right for remedy against Seller pursuant to the terms of this
      Agreement which claim is limited to the Excluded Projects only.

     

    Section
      6.13  Severability.
      In the
      event that any provision of this Agreement, or the application of any such
      provision to any Person or set of circumstances, shall be determined to be
      invalid, unlawful, void or unenforceable to any extent, the remainder of this
      Agreement, and the application of such provision to Persons or circumstances
      other than those as to which it is determined to be invalid, unlawful, void
      or
      unenforceable, shall not be impaired or otherwise affected and shall continue
      to
      be valid and enforceable to the fullest extent permitted by law.

     

    [The
      remainder of this page has been intentionally left
      blank.]

     

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed on their behalf as of the date first written above.

     

     

    
      	 	ON TRACK INNOVATIONS LTD.
	 	 
	 	 
	 	
              
                By:_________________________________ 

                Name:

                Title:
                  

              

            
	 	 
	 	 
	 	SUPERCOM LTD.
	 	
            
	 	 
	 	
              By:_________________________________ 

              Name:

              Title:
                

            

    

     

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

     

     

    Exhibit
      D

     

    IRREVOCABLE
      PROXY

     

     

    The
      undersigned, shareholder (“Shareholder”)
      of On
      Track Innovations Ltd., an Israeli company (the “Company”),
      hereby irrevocably (to the fullest extent permitted by law) appoints the
      Company’s Chairman on behalf of the Board of Directors, or whom the Company’s
      Board of Directors will instruct, as the sole attorneys-in-fact and proxies
      of
      the undersigned with full power of substitution and re-substitution, to vote
      and
      put into effect all voting and related rights with respect to, and to grant
      consent or approval in respect of (in each case, to the full extent that the
      undersigned is entitled to do so), 2,827,200 ordinary shares nominal value
      NIS
      0.1 per share, of the Company (each - a "Share", and collectively -
“Shares”)
      issued
      to the undersigned pursuant to a certain Assets Purchase Agreement by and
      between the Company and the undersigned, dated as of November 7 2006 (the
“APA”).
      

     

    Any
      and
      all prior proxies heretofore given by the undersigned with respect to any of
      the
      Shares are hereby revoked and the undersigned hereby covenants and agrees not
      to
      grant any subsequent proxies with respect to any Shares.

     

    This
      Proxy is irrevocable (to the fullest extent permitted by law) and is granted
      as
      part of the APA. 

     

    The
      attorneys-in-fact and proxies named above are hereby authorized and empowered
      by
      the undersigned to act as the undersigned’s attorney-in-fact and proxy to vote
      each Share and to exercise all voting, consent and similar rights of the
      undersigned with respect to the Shares (including, without limitation, the
      power
      to execute and deliver written consents), at every annual, special, adjourned
      or
      postponed meeting of the shareholders of the Company and in every written
      consent in lieu of such meeting until the sale or transfer of such Share to
      a
      third party who is not an Affiliate of the undersigned in an arm's length
      transaction, as such term is defined in the APA (the “Termination
      Date”).
      Immediately following the Termination Date in respect of a Share, the
      attorneys-in-fact and proxies named above may not, with respect to such Share,
      exercise this Proxy with respect to any matter.

     

    Any
      obligation of the undersigned hereunder shall be binding upon the permitted
      successors and assigns of the undersigned until the Termination Date.

     

    In
      the
      event the Shareholder or its Affiliate(s), as such term is defined in the APA,
      is an officer or director of the Company, nothing in this Proxy shall be
      construed as preventing or otherwise affecting any actions taken by the
      Shareholder in its capacity as an officer or director of the Company or in
      any
      of its subsidiaries or from fulfilling the obligations of such office (including
      without limitation, the performance of obligations required by the fiduciary
      obligations of Shareholder acting solely in his or her capacity as an officer
      or
      director). 

     

    This
      Proxy shall terminate, and be of no force or effect, immediately following
      the
      Termination Date.

     

    
      	
               

            	
               

            	
              SuperCom
                Ltd.

               

              By:
                ____________________

              Title:
                ___________________

              Date:
                ___________________

            

    

     

    
      
        
        

      

      
        60Table
          of Contents

         

      

    

    
      

      

    

    SECOND
      AMENDED AND RESTATED

    CREDIT
      AGREEMENT

     

    Dated
      as of
      November 10, 2006

     

    among

     

    BUILDING
      MATERIALS HOLDING CORPORATION,

     

    BMC
      WEST
      CORPORATION

    AND
      OTHER
      SUBSIDIARY GUARANTORS,

     

    WELLS
      FARGO
      BANK, NATIONAL ASSOCIATION,

    as
      Administrative Agent, Joint Lead Arranger, Joint Book Manager Swingline Lender
      and L/C Issuer,

     

    JPMORGAN
      CHASE BANK, N.A.,

    as
      Documentation Agent

     

    SUNTRUST
      BANK,

    as
      Joint
      Lead Arranger and Co-Syndication Agent,

     

    BNP
      PARIBAS

    as
      Joint
      Lead Arranger and Co-Syndication Agent

     

    and

     

    THE
      OTHER
      FINANCIAL INSTITUTIONS PARTY HERETO

     

    J.P.
      MORGAN
      SECURITIES INC.,

    Joint
      Lead
      Arranger and Joint Book Manager

    
      
      

      
        

        

      

    

    
      Table
        of Contents

    

     

    TABLE
      OF CONTENTS

    
       

      Page

    

    
      
        	 	 	 
	
                Article
                  I.

              	
                DEFINITIONS

              	
                2

              
	
                1.01

              	
                Certain
                  Defined Terms

              	
                2

              
	
                1.02

              	
                Other
                  Interpretive Provisions

              	
                28

              
	
                1.03

              	
                Accounting
                  Principles

              	
                29

              
	 	 	 
	
                Article
                  II.

              	
                THE
                  CREDITS

              	
                29

              
	
                2.01

              	
                Amounts
                  and Terms of Commitments and Loans

              	
                29

              
	
                2.02

              	
                Loan
                  Accounts

              	
                33

              
	
                2.03

              	
                Procedure
                  for Borrowing

              	
                33

              
	
                2.04

              	
                Conversion
                  and Continuation Elections

              	
                35

              
	
                2.05

              	
                Voluntary
                  Termination or Reduction of
                  Commitments

              	
                36

              
	
                2.06

              	
                Swingline
                  Loans

              	
                36

              
	
                2.07

              	
                Optional
                  Prepayments

              	
                38

              
	
                2.08

              	
                Mandatory
                  Prepayments of Loans; Mandatory Commitment
                  Reductions

              	
                39

              
	
                2.09

              	
                Repayment

              	
                41

              
	
                2.10

              	
                Interest

              	
                41

              
	
                2.11

              	
                Fees

              	
                42

              
	
                2.12

              	
                Computation
                  of Fees and Interest

              	
                43

              
	
                2.13

              	
                Payments
                  Generally; Administrative Agent’s
                  Clawback

              	
                43

              
	
                2.14

              	
                Sharing
                  of Payments, Etc

              	
                45

              
	
                2.15

              	
                Security
                  and Guaranty

              	
                46

              
	 	 	 
	
                Article
                  III.

              	
                THE
                  LETTERS OF CREDIT

              	
                46

              
	
                3.01

              	
                The
                  Letter of Credit Subfacility

              	
                46

              
	
                3.02

              	
                Issuance,
                  Amendment and Renewal of Letters of
                  Credit

              	
                48

              
	
                3.03

              	
                Risk
                  Participations, Drawings and
                  Reimbursements

              	
                49

              
	
                3.04

              	
                Repayment
                  of Participations

              	
                51

              
	
                3.05

              	
                Role
                  of the L/C Issuer

              	
                52

              
	
                3.06

              	
                Obligations
                  Absolute

              	
                53

              
	
                3.07

              	
                Cash
                  Collateral Pledge

              	
                54

              
	
                3.08

              	
                Letter
                  of Credit Fees

              	
                54

              
	
                3.09

              	
                Applicability
                  of ISP98 and UCP

              	
                55

              
	
                3.10

              	
                Trade
                  Bank as L/C Issuer

              	
                55

              

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          Table
            of Contents

        

      

      
         

        TABLE
          OF
          CONTENTS

        (continued)

        Page

      

      
        	 	 	 
	
                Article
                  IV.

              	
                TAXES,
                  YIELD PROTECTION AND ILLEGALITY

              	
                56

              
	
                4.01

              	
                Taxes

              	
                56

              
	
                4.02

              	
                Illegality

              	
                58

              
	
                4.03

              	
                Increased
                  Costs

              	
                58

              
	
                4.04

              	
                Funding
                  Losses

              	
                60

              
	
                4.05

              	
                Inability
                  to Determine Rates

              	
                61

              
	
                4.06

              	
                Certificates
                  of Lenders

              	
                61

              
	
                4.07

              	
                Mitigation
                  Obligations; Replacement of
                  Lenders

              	
                61

              
	
                4.08

              	
                Survival

              	
                62

              
	 	 	 
	
                Article
                  V.

              	
                CONDITIONS
                  PRECEDENT

              	
                62

              
	
                5.01

              	
                Conditions
                  to Effective Date

              	
                62

              
	
                5.02

              	
                Conditions
                  to each Subsequent Effective
                  Date

              	
                65

              
	
                5.03

              	
                Conditions
                  to All Credit Extensions

              	
                66

              
	 	 	 
	
                Article
                  VI.

              	
                REPRESENTATIONS
                  AND WARRANTIES

              	
                67

              
	
                6.01

              	
                Corporate
                  Existence and Power

              	
                67

              
	
                6.02

              	
                Corporate
                  Authorization; No Contravention

              	
                68

              
	
                6.03

              	
                Governmental
                  Authorization

              	
                68

              
	
                6.04

              	
                Binding
                  Effect

              	
                69

              
	
                6.05

              	
                Litigation

              	
                69

              
	
                6.06

              	
                No
                  Defaults

              	
                69

              
	
                6.07

              	
                ERISA
                  Compliance

              	
                69

              
	
                6.08

              	
                Use
                  of Proceeds; Margin Regulations

              	
                70

              
	
                6.09

              	
                Title
                  to Properties; Liens

              	
                70

              
	
                6.10

              	
                Taxes

              	
                70

              
	
                6.11

              	
                Financial
                  Condition

              	
                70

              
	
                6.12

              	
                Environmental
                  Matters

              	
                71

              
	
                6.13

              	
                Collateral
                  Documents

              	
                72

              
	
                6.14

              	
                Regulated
                  Entities

              	
                72

              
	
                6.15

              	
                No
                  Burdensome Restrictions

              	
                72

              
	
                6.16

              	
                Copyrights,
                  Patents, Trademarks and Licenses,
                  Etc

              	
                72

              
	
                6.17

              	
                Subsidiaries

              	
                73

              

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          Table
            of Contents

        

      

      

        TABLE
          OF
          CONTENTS

        (continued)

        Page

      

      
        	
                6.18

              	
                Insurance

              	
                73

              
	
                6.19

              	
                Swap
                  Obligations

              	
                73

              
	
                6.20

              	
                Full
                  Disclosure

              	
                73

              
	
                6.21

              	
                Internal
                  Controls

              	
                74

              
	 	 	 
	
                Article
                  VII.

              	
                AFFIRMATIVE
                  COVENANTS

              	
                75

              
	
                7.01

              	
                Financial
                  Statements

              	
                75

              
	
                7.02

              	
                Certificates;
                  Other Information

              	
                76

              
	
                7.03

              	
                Notices

              	
                77

              
	
                7.04

              	
                Preservation
                  of Corporate Existence, Etc

              	
                78

              
	
                7.05

              	
                Maintenance
                  of Property

              	
                79

              
	
                7.06

              	
                Insurance

              	
                79

              
	
                7.07

              	
                Payment
                  of Obligations

              	
                79

              
	
                7.08

              	
                Compliance
                  with Laws

              	
                80

              
	
                7.09

              	
                Compliance
                  with ERISA

              	
                80

              
	
                7.10

              	
                Inspection
                  of Property and Books and
                  Records

              	
                80

              
	
                7.11

              	
                Environmental
                  Laws

              	
                80

              
	
                7.12

              	
                Use
                  of Proceeds

              	
                81

              
	
                7.13

              	
                Additional
                  Guarantors

              	
                81

              
	
                7.14

              	
                Additional
                  Stock Pledges

              	
                82

              
	
                7.15

              	
                Further
                  Assurances

              	
                82

              
	 	 	 
	
                Article
                  VIII.

              	
                NEGATIVE
                  COVENANTS

              	
                83

              
	
                8.01

              	
                Limitation
                  on Liens

              	
                83

              
	
                8.02

              	
                Disposition
                  of Assets

              	
                86

              
	
                8.03

              	
                Consolidations
                  and Mergers

              	
                87

              
	
                8.04

              	
                Loans
                  and Investments

              	
                87

              
	
                8.05

              	
                Limitation
                  on Indebtedness

              	
                89

              
	
                8.06

              	
                Transactions
                  with Affiliates

              	
                90

              
	
                8.07

              	
                Use
                  of Proceeds

              	
                90

              
	
                8.08

              	
                Contingent
                  Obligations

              	
                91

              
	
                8.09

              	
                Subsidiaries

              	
                92

              
	
                8.10

              	
                Lease
                  Obligations

              	
                92

              

      

       

      
        
          
          

        

        
          iii

          
            

          

        

        
          Table
            of Contents

        

      

       

      
        TABLE
          OF
          CONTENTS

        (continued)

        Page

      

      
        	
                8.11

              	
                Restricted
                  Payments

              	
                92

              
	
                8.12

              	
                ERISA

              	
                93

              
	
                8.13

              	
                [Intentionally
                  Omitted]

              	
                93

              
	
                8.14

              	
                Sales
                  and Leasebacks

              	
                93

              
	
                8.15

              	
                Certain
                  Payments

              	
                93

              
	
                8.16

              	
                Modification
                  of Subordinated Debt
                  Documents

              	
                93

              
	
                8.17

              	
                Change
                  in Business

              	
                94

              
	
                8.18

              	
                Accounting
                  Changes

              	
                94

              
	
                8.19

              	
                Financial
                  Covenants

              	
                94

              
	
                8.20

              	
                No
                  Restrictions on Subsidiary Dividends

              	
                95

              
	
              	 	 
	
                Article
                  IX.

              	
                EVENTS
                  OF DEFAULT

              	
                95

              
	
                9.01

              	
                Event
                  of Default

              	
                95

              
	
                9.02

              	
                Remedies

              	
                98

              
	
                9.03

              	
                Application
                  of Funds

              	
                99

              
	
                9.04

              	
                Specified
                  Swap Contract Remedies

              	
                100

              
	 	 	 
	
                Article
                  X.

              	
                THE
                  ADMINISTRATIVE AGENT

              	
                100

              
	
                10.01

              	
                Appointment
                  and Authority

              	
                100

              
	
                10.02

              	
                Rights
                  as a Lender

              	
                100

              
	
                10.03

              	
                Exculpatory
                  Provisions

              	
                100

              
	
                10.04

              	
                Reliance
                  by Administrative Agent

              	
                101

              
	
                10.05

              	
                Delegation
                  of Duties

              	
                102

              
	
                10.06

              	
                Resignation
                  of Administrative Agent

              	
                102

              
	
                10.07

              	
                Non-Reliance
                  on Administrative Agent and Other
                  Lenders

              	
                103

              
	
                10.08

              	
                No
                  Other Duties, Etc

              	
                103

              
	
                10.09

              	
                Collateral
                  Matters

              	
                103

              
	
                10.10

              	
                Administrative
                  Agent May File Proofs of
                  Claim

              	
                104

              
	 	 	 
	
                Article
                  XI.

              	
                MISCELLANEOUS

              	
                104

              
	
                11.01

              	
                Amendments
                  and Waivers

              	
                104

              
	
                11.02

              	
                Notices;
                  Effectiveness; Electronic
                  Communication

              	
                107

              
	
                11.03

              	
                No
                  Waiver; Cumulative Remedies

              	
                108

              
	
                11.04

              	
                Expenses;
                  Indemnity; Damage Waiver

              	
                108

              

      

       

      
        
          
          

        

        
          iv

          
            

          

        

        
          Table
            of Contents

        

      

       

      
        TABLE
          OF
          CONTENTS

        (continued)

        Page

      

      
        	
                11.05

              	
                Marshalling;
                  Payments Set Aside

              	
                110

              
	
                11.06

              	
                Successors
                  and Assigns

              	
                111

              
	
                11.07

              	
                Treatment
                  of Certain Information;
                  Confidentiality

              	
                115

              
	
                11.08

              	
                Set
                  off

              	
                116

              
	
                11.09

              	
                USA
                  PATRIOT Act Notice

              	
                116

              
	
                11.10

              	
                Guaranty

              	
                116

              
	
                11.11

              	
                Replacement
                  of Lenders

              	
                123

              
	
                11.12

              	
                Notification
                  of Addresses, Lending Offices,
                  Etc

              	
                123

              
	
                11.13

              	
                Counterparts;
                  Integration; Effectiveness

              	
                123

              
	
                11.14

              	
                Severability

              	
                124

              
	
                11.15

              	
                No
                  Third Parties Benefited

              	
                124

              
	
                11.16

              	
                Governing
                  Law; Jurisdiction, Etc

              	
                124

              
	
                11.17

              	
                Waiver
                  of Jury Trial

              	
                125

              
	
                11.18

              	
                Treatment
                  of Existing Credit Agreement

              	
                125

              

      

       

      
        
          
          

        

        
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                ANNEXES

              	 
	
                Annex
                  I

              	
                Pricing
                  Grid

              
	
              	 
	
                SCHEDULES

              	 
	
                Schedule
                  1.01

              	
                Existing
                  Letters of Credit

              
	
                Schedule
                  2.01(b)

              	
                Revolving
                  Loan Commitments and Proportionate
                  Shares

              
	
                Schedule
                  2.09(a)

              	
                Term
                  B Loan Amortization Schedule

              
	
                Schedule
                  6.05

              	
                Litigation

              
	
                Schedule
                  6.07

              	
                ERISA

              
	
                Schedule
                  6.11

              	
                Permitted
                  Liabilities

              
	
                Schedule
                  6.12

              	
                Environmental
                  Matters

              
	
                Schedule
                  6.15

              	
                Burdensome
                  Restrictions

              
	
                Schedule
                  6.17

              	
                Subsidiaries
                  and Minority Interests

              
	
                Schedule
                  6.18

              	
                Insurance
                  Matters

              
	
                Schedule
                  8.01

              	
                Permitted
                  Liens

              
	
                Schedule
                  8.05

              	
                Permitted
                  Indebtedness

              
	
                Schedule
                  8.08

              	
                Contingent
                  Obligations

              
	
                Schedule
                  11.02

              	
                Payment
                  Offices; Addresses for Notices; Lending
                  Offices

              
	
                Schedule
                  11.06

              	
                Processing
                  Fees

              
	
              	 
	
                EXHIBITS

              	 
	
                Exhibit
                  A
                  1

              	
                Form
                  of Notice of Revolving Borrowing

              
	
                Exhibit
                  A-2

              	
                Form
                  of Notice of Term B Loan
                  Borrowing

              
	
                Exhibit
                  B
                  1

              	
                Form
                  of Notice of Revolving Loan
                  Conversion/Continuation

              
	
                Exhibit
                  B-2

              	
                Form
                  of Notice of Term B Loan
                  Conversion/Continuation

              
	
                Exhibit
                  C

              	
                Form
                  of Compliance Certificate

              
	
                Exhibit
                  D

              	
                Form
                  of Legal Opinion of Counsel to Loan
                  Parties

              
	
                Exhibit
                  E

              	
                Form
                  of Assignment and Assumption

              
	
                Exhibit
                  F
                  1

              	
                Form
                  of Revolving Note

              
	
                Exhibit
                  F
                  2

              	
                Form
                  of Term B Note

              
	
                Exhibit
                  G

              	
                Form
                  of Additional Guarantor Assumption
                  Agreement

              
	
                Exhibit
                  H

              	
                Form
                  of Legal Opinion of Additional Guarantor’s
                  Counsel

              
	
                Exhibit
                  I

              	
                Form
                  of Security Agreement

              
	
                Exhibit
                  J

              	
                Form
                  of Update
                  Certificate

              

      

    

     

    
      
        
        

      

      
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    SECOND
      AMENDED AND RESTATED CREDIT AGREEMENT

     

    This
      SECOND AMENDED
      AND RESTATED CREDIT AGREEMENT (this “Agreement”)
      is entered into
      as of November 10, 2006, by and among (i) BUILDING MATERIALS HOLDING
      CORPORATION, a Delaware corporation (“Holdings”),
      as borrower,
      (ii) BMC WEST CORPORATION, a Delaware corporation (the “Company”),
      and certain
      other affiliates of Holdings, as guarantors, (iii) the several financial
      institutions from time to time party to this Agreement (individually, a
“Lender”
and,
      collectively, the “Lenders”),
      (iv) JPMORGAN CHASE BANK, N.A., as Documentation Agent, (v) SUNTRUST
      BANK, as Joint Lead Arranger and Co-Syndication Agent, (vi) BNP PARIBAS, as
      Joint Lead Arranger and Co-Syndication Agent, and (vii) WELLS FARGO BANK,
      NATIONAL ASSOCIATION (“Wells
      Fargo”),
      as the L/C
      Issuer (as defined herein), the Swingline Lender (as defined herein), the
      administrative agent for the Lenders (in such capacity, the “Administrative
      Agent”),
      Joint Lead
      Arranger and Joint Book Manager for the credit facilities described
      herein.

     

    RECITALS

     

    A. WHEREAS,
      Holdings
      previously entered into that certain Amended and Restated Credit Agreement,
      dated as of June 30, 2005 (as amended, supplemented and otherwise modified
      prior
      to the date hereof, the “Existing
      Credit
      Agreement”),
      by and among
      (i) Holdings, as borrower, (ii) the Company and certain other
      affiliates of Holdings, as guarantors, (iii) the several financial
      institutions party thereto, as lenders (each, an “Existing
      Lender”
and,
      collectively, the “Existing
      Lenders”),
      (iv) Suntrust Bank, as co-lead arranger and syndication agent,
      (v) JPMorgan Chase Bank, N.A., as co-documentation agent, (vi) LaSalle
      Business Credit, LLC, as co-documentation agent, (vii) U.S. Bank National
      Association, as co-documentation agent, and (vii) Wells Fargo, as letter of
      credit issuing bank, swingline bank, and administrative agent for the Existing
      Lenders and as sole book runner and co - lead arranger of the credit facilities
      provided therein.

     

    B. WHEREAS,
      Holdings
      has requested that the Existing Credit Agreement be further amended and restated
      in order to (i) increase the Revolving Commitments initially to
      $500,000,000, which amount may be subsequently increased in accordance with
      the
      terms and conditions hereof, (ii) reduce the Term A Loans to zero,
      (iii) allow for additional Term B Loans to be made on the Effective
      Date and thereafter Additional Term B Loans (as defined herein), in each
      case, in accordance with the terms and conditions hereof, (iv) replace
      certain of the Existing Lenders that do not desire to be party to this Agreement
      with new financial institutions which desire to be party to this Agreement
      as
      Lenders (collectively, the “New
      Lenders”),
      (v) reallocate the outstanding Obligations among the Existing Lenders that
      desire to be party to this Agreement and the New Lenders, and (vi) make
      certain other changes.

     

    C. WHEREAS,
      the
      parties hereto are willing to so amend and restate the Existing Credit Agreement
      upon the terms and subject to the conditions set forth herein.

      
        
          
          

        

        
          
          

          
            

          

        

        
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    AGREEMENT

     

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

     

    ARTICLE
      I.

     

    DEFINITIONS

     

    1.01 Certain
      Defined
      Terms.
      The following
      terms have the following meanings when used herein (including in the Recitals
      hereof):

     

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

     

    “Additional
      Lenders”
means
      the
      financial institutions (if any) which agree to provide Additional Term B
      Loans and/or make Additional Revolving Commitments to Holdings in accordance
      with the terms and conditions set forth herein on any Subsequent Effective
      Date.

     

    “Additional
      Guarantor Accession Date”
has
      the meaning
      specified in Section 7.13.

     

    “Additional
      Guarantor Assumption Agreement”
has
      the meaning
      specified in Section 7.13.

     

    “Additional
      Revolving Commitment”
has
      the meaning
      specified in Section 2.01(d).

     

    “Additional
      Term B Commitment”
has
      the meaning
      specified in Section 2.01(c).

     

    “Additional
      Term B Loan”
has
      the meaning
      specified in Section 2.01(c).

     

    “Administrative
      Agent”
has
      the meaning
      specified in the preamble,
      and any successor
      Administrative Agent arising under Section 10.06.

     

    “Administrative
      Agent Related Persons”
means
      Wells Fargo
      and any successor Administrative Agent arising under Section 10.06
      and any L/C Issuer
      hereunder, together with their respective Affiliates, and the officers,
      directors, employees, agents and attorneys-in-fact of such Persons and
      Affiliates.

     

    “Administrative
      Agent’s Payment Office”
means
      the address
      for payments set forth on Schedule
      11.02
      or such other
      address as the Administrative Agent may from time to time specify.

      
        
          
          

        

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

     

    “Affiliate”
means,
      with
      respect to any Person, another Person that directly, or indirectly through
      one
      or more intermediaries, Controls or is Controlled by or is under common Control
      with the Person specified.

     

    “Aggregate
      Revolving Commitment”
means
      the
      combined Revolving Commitments of the Revolving Lenders, which combined
      Revolving Commitments shall not exceed $500,000,000 as of the Effective Date,
      which amount includes both the L/C Commitment and the Swingline Commitment
      and
      which amount may be increased on any Subsequent Effective Date pursuant to
      Section 2.01(d)
      by no more than an
      amount equal to the difference of (i) $250,000,000 minus
      (ii) the
      total of (x) the amount (if any) by which the Aggregate Revolving
      Commitment has been increased on all Subsequent Effective Dates that shall
      have
      occurred prior to the relevant Subsequent Effective Date pursuant to
Section 2.01(d) plus
      (y) the
      amount (if any) by which the Term B Loans have been increased on all
      Subsequent Effective Dates that shall have occurred prior to, or simultaneous
      with, the relevant Subsequent Effective Date pursuant to Section 2.01(c).

     

    “Aggregate
      Term B Commitment”
means
      the
      combined Term B Commitments of the Term B Lenders, which Term B
      Commitments shall not exceed $350,000,000 as of the Effective Date.

     

    “Agreement”
means
      this Credit
      Agreement.

     

    “Applicable
      Fee
      Amount”
means
      with
      respect to the Commitment Fees and Standby Letter of Credit fees payable
      hereunder, the amount set forth opposite the indicated Level below the heading
      “Commitment Fee” or “Letter of Credit Fee,” as applicable, in the pricing grid
      set forth on Annex I
      in accordance with
      the parameters for calculations of such amount also set forth on Annex I.

     

    “Applicable
      Margin”
means
      (i) with respect to Base Rate Loans and Offshore Rate Loans which are
      Revolving Loans, the amount set forth opposite the indicated Level below the
      heading “Base Rate Spread or “Offshore Rate Spread” in the pricing grid set
      forth on Annex I
      in accordance with
      the parameters for calculations of such amounts also set forth on Annex I,
      and
      (ii) with respect to Term B Loans which are Base Rate Loans, 1.25%,
      and with respect to Term B Loans which are Offshore Rate Loans,
      2.50%.

     

    “Approved
      Fund”
means
      any Fund
      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.

     

    “Assignee
      Group”
means
      two or more
      Eligible Assignees that are Affiliates of one another or two or more Approved
      Funds managed by the same investment advisor.

     

    “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

      
        
          
          

        

        
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    by
      Section 11.06),
      and accepted by
      the Administrative Agent, in substantially the form of Exhibit E
      or any other form
      approved by the Administrative Agent.

     

    “Attorney
      Costs”
means
      and
      includes all fees and disbursements of any law firm or other external counsel,
      the allocated cost of internal legal services and all disbursements of internal
      counsel.

     

    “Available
      Commitment”
has
      the meaning
      specified in Section 2.11(b).

     

    “Bankruptcy
      Code”
means
      the
      Bankruptcy Code of the United States (11 U.S.C. §101, et seq.).

     

    “Base
      Rate”
means,
      for any
      day, the higher of: (i) 0.50% per annum above the latest Federal Funds
      Rate, and (ii) the rate of interest in effect for such day as publicly
      announced from time to time by Wells Fargo at its principal office in San
      Francisco as its prime rate. (The prime rate is a rate set by Wells Fargo based
      upon various factors including Wells Fargo’s costs and desired return, general
      economic conditions and other factors, and is used as a reference point for
      pricing some loans, which may be priced at, above, or below such announced
      rate.) Any change in the prime rate announced by Wells Fargo shall take effect
      at the opening of business on the day specified in the public announcement
      of
      such change.

     

    “Base
      Rate
      Loan”
means
      a Loan that
      bears interest based on the Base Rate.

     

    “Borrowing”
means
      a borrowing
      hereunder consisting of (i) Loans of the same Type made to Holdings on the
      same day by the Lenders under Article
      II,
      and, in the case
      of Offshore Rate Loans, having the same Interest Period, (ii) a Swingline
      Loan (or Swingline Loans) made to Holdings on the same day by the Swingline
      Lender, or (iii) an L/C Borrowing.

     

    “Borrowing
      Date”
means
      any date on
      which a Borrowing occurs.

     

    “Business
      Day”
means
      any day
      other than a Saturday, Sunday or other day on which commercial banks in New
      York
      City or San Francisco are authorized or required by law to close and, if the
      applicable Business Day relates to any Offshore Rate Loan, means such a day
      on
      which dealings are carried on in the London or other applicable offshore Dollar
      interbank market.

     

    “Capital
      Lease”
means,
      for any
      Person, any lease of property (whether real, personal or mixed) which, in
      accordance with GAAP, would, at the time a determination is made, be required
      to
      be recorded as a capital lease in respect of which such Person is liable as
      lessee.

     

    “Cash
      Collateralize”
means
      to pledge
      and deposit with or deliver to the Administrative Agent, for the benefit of
      the
      Administrative Agent, the L/C Issuer and the Revolving Lenders, as additional
      collateral for the Obligations pursuant to the Loan Documents, cash or deposit
      account balances. Derivatives of such term shall have corresponding
      meaning.

     

    “Cash
      Management
      Services”
means
      any
      services provided from time to time by any Lender or any of its Affiliates
      to
      Holdings or any Subsidiary in connection with operating,

      
        
          
          

        

        
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    collections,
      payroll, trust, or other depository or disbursement accounts, including
      automatic clearinghouse, controlled disbursement, depository, electronic funds
      transfer, information reporting, lockbox, stop payment, overdraft and/or wire
      transfer services.

     

    “Change
      in
      Law”
means
      the
      occurrence, after the date of this Agreement, of any of the following:
      (a) the adoption or taking effect of any law, rule, regulation or treaty,
      (b) any change in any law, rule, regulation or treaty or in the
      administration, interpretation or application thereof by any Governmental
      Authority or (c) the making or issuance of any request, guideline or
      directive (whether or not having the force of law) by any Governmental
      Authority. 

     

    “Change
      of
      Control”
means
      an event or
      series of events by which:

     

    (a) any
“person”
or
      “group” (as such terms are used in Sections 13(d) and 14(d) of the
      Securities Exchange Act of 1934, but excluding any employee benefit plan of
      such
      person or its subsidiaries, and any person or entity acting in its capacity
      as
      trustee, agent or other fiduciary or administrator of any such plan) becomes
      the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities
      Exchange Act of 1934, except that a person or group shall be deemed to have
      “beneficial ownership” of all securities that such person or group has the right
      to acquire (such right, an “option
      right”),
      whether such
      right is exercisable immediately or only after the passage of time), directly
      or
      indirectly, of 20% or more of the equity securities of Holdings entitled to
      vote
      for members of the board of directors or equivalent governing body of Holdings
      on a fully-diluted basis (and taking into account all such securities that
      such
      person or group has the right to acquire pursuant to any option
      right);

     

    (b) during
      any period
      of 12 consecutive months, a majority of the members of the board of directors
      or
      other equivalent governing body of Holdings cease to be composed of individuals
      (i) who were members of that board or equivalent governing body on the
      first day of such period, (ii) whose election or nomination to that board
      or equivalent governing body was approved by individuals referred to in
      clause (i) above constituting at the time of such election or nomination at
      least a majority of that board or equivalent governing body or (iii) whose
      election or nomination to that board or other equivalent governing body was
      approved by individuals referred to in clauses (i) and (ii) above
      constituting at the time of such election or nomination at least a majority
      of
      that board or equivalent governing body (excluding, in the case of both
      clause (ii) and clause (iii), any individual whose initial nomination
      for, or assumption of office as, a member of that board or equivalent governing
      body occurs as a result of an actual or threatened solicitation of proxies
      or
      consents for the election or removal of one or more directors by any person
      or
      group other than a solicitation for the election of one or more directors by
      or
      on behalf of the board of directors); or

     

    (c) any
      Person or two
      or more Persons acting in concert shall have acquired by contract or otherwise,
      or shall have entered into a contract that, upon consummation thereof, will
      result in its or their acquisition of the power to exercise, directly or
      indirectly, control over the equity securities of Holdings entitled to vote
      for
      members of the board of directors or equivalent governing body of Holdings
      on a
      fully-diluted basis (and taking into account all such securities that such
      Person or group has the right to acquire pursuant to any option right)
      representing 20% or more of the combined voting power of such
      securities.

      
        
          
          

        

        
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    “Clean-Up
      Day”
has
      the meaning
      specified in Section 2.06(d).

     

    “Code”
means
      the
      Internal Revenue Code of 1986.

     

    “Collateral”
means
      all
      tangible and intangible property and interests in property and proceeds thereof
      now owned or hereafter acquired by Holdings or any Guarantor in or upon which
      a
      Lien (i) existed in favor of the Administrative Agent and the Existing
      Lenders party to the Existing Credit Agreement immediately prior to the
      Effective Date, or (ii) now or hereafter exists in favor of the Lenders, or
      the Administrative Agent on behalf of the Lenders and the other Secured Parties
      (as defined in the Security Agreement), on and after the Effective Date, whether
      under this Agreement or under any other Collateral Document.

     

    “Collateral
      Documents”
mean,
      collectively, (i) the Security Agreement, the Intellectual Property
      Security Agreements and all other security agreements, patent and trademark
      assignments, control agreements and other similar agreements between Holdings
      or
      any Guarantor and the Lenders, or the Administrative Agent for the benefit
      of
      the Lenders and the other Secured Parties (as defined in the Security
      Agreement), now or hereafter delivered to the Lenders or the Administrative
      Agent pursuant to or in connection with the transactions contemplated hereby,
      and all financing statements (or comparable documents now or hereafter filed
      in
      accordance with the Uniform Commercial Code or comparable law) against Holdings
      or any Guarantor as debtor in favor of the Lenders, or the Administrative Agent
      for the benefit of the Lenders and the other Secured Parties (as defined in
      the
      Security Agreement), as secured party, and (ii) any amendments,
      supplements, modifications, renewals, replacements, consolidations,
      substitutions and extensions of any of the foregoing.

     

    “Commercial
      Letter of Credit”
means
      a
      commercial Letter of Credit Issued for the account of Holdings in respect of
      the
      purchase of inventory or other goods and services by Holdings or any of its
      Subsidiaries in the ordinary course of business.

     

    “Commitment”
means,
      as to each
      Lender, the sum of its Revolving Commitment (including its Additional Revolving
      Commitment, if any), Term B Commitment and Additional Term B
      Commitment, if any.

     

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

     

    “Company”
has
      the meaning
      specified in the preamble.

     

    “Compliance
      Certificate”
means
      a
      certificate substantially in the form of Exhibit C.

     

    “Consolidated
      Net
      Worth”
means,
      as of the
      date of determination, the consolidated shareholders’ equity of Holdings and its
      Subsidiaries, exclusive of unrealized gains or losses from non-speculative
      interest rate swaps and marketable securities as of such date of determination,
      as determined in accordance with GAAP.

     

    “Consolidated
      Net
      Income”
means,
      for any
      period, the consolidated net income of Holdings and its Subsidiaries for such
      period, as determined in accordance with GAAP.

      
        
          
          

        

        
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    “Consolidated
      Total Assets”
means,
      as of the
      date of determination, the consolidated total assets of Holdings and its
      Subsidiaries, as determined in accordance with GAAP.

     

    “Contingent
      Obligation”
means
      (without
      duplication), as to any Person, any direct or indirect liability of that Person,
      whether or not contingent, with or without recourse, (i) with respect to
      any Indebtedness, lease, dividend, letter of credit or other obligation (the
      “primary
      obligations”)
      of another
      Person (the “primary
      obligor”),
      including any
      obligation of that Person (a) to purchase, repurchase or otherwise acquire
      such primary obligations or any security therefor, (b) to advance or
      provide funds for the payment or discharge of any such primary obligation,
      or to
      maintain working capital or equity capital of the primary obligor or otherwise
      to maintain the net worth or solvency or any balance sheet item, level of income
      or financial condition of the primary obligor, (c) to purchase property,
      securities or services primarily for the purpose of assuring the owner of any
      such primary obligation of the ability of the primary obligor to make payment
      of
      such primary obligation, (d) in connection with any synthetic lease or
      other similar off balance sheet lease transaction, or (e) otherwise to
      assure or hold harmless the holder of any such primary obligation against loss
      in respect thereof (each a “Guaranty
      Obligation”);
      (ii) with
      respect to any Surety Instrument issued for the account of that Person or as
      to
      which that Person is otherwise liable for reimbursement of drawings or payments;
      (iii) to purchase any materials, supplies or other property from, or to
      obtain the services of, another Person if the relevant contract or other related
      document or obligation requires that payment for such materials, supplies or
      other property, or for such services, shall be made regardless of whether
      delivery of such materials, supplies or other property is ever made or tendered,
      or such services are ever performed or tendered; (iv) in respect of
      Earn-Out Obligations; (v) in respect of any Swap Contract; and (vi) in
      respect of Stock Price Guaranties. The amount of any Contingent Obligation
      shall, in the case of Guaranty Obligations, be deemed equal to the stated or
      determinable amount of the primary obligation in respect of which such Guaranty
      Obligation is made or, if not stated or if indeterminable, the maximum
      reasonably anticipated liability in respect thereof, and in the case of other
      Contingent Obligations other than in respect of Swap Contracts, shall be equal
      to the maximum reasonably anticipated liability in respect thereof and, in
      the
      case of Contingent Obligations in respect of Swap Contracts, shall be equal
      to
      the Swap Termination Value.

     

    “Contractual
      Obligation”
means,
      as to any
      Person, any provision of any security issued by such Person or of any agreement,
      undertaking, contract, indenture, mortgage, deed of trust or other instrument,
      document or agreement to which such Person is a party or by which it or any
      of
      its property is bound.

     

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

     

    “Conversion/Continuation
      Date”
means
      any date on
      which, under Section 2.04,
      Holdings
      (i) converts Loans of one Type to another Type, or (ii) continues as
      Loans of the same Type, but with a new Interest Period, Loans having Interest
      Periods expiring on such date.

      
        
          
          

        

        
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    “Credit
      Extension”
means
      and
      includes (i) the making of any Revolving Loans, Term B Loans or
      Swingline Loans hereunder, and (ii) the Issuance of any Letters of Credit
      hereunder.

     

    “Default”
means
      any Event
      of Default and any event or circumstance which, with the giving of notice,
      the
      lapse of time, or both, would constitute an Event of Default.

     

    “Defaulting
      Lender”
means
      a Lender
      that has failed to fund its portion of any Borrowing that it is required to
      fund
      under this Agreement and has continued in such failure for three (3) Business
      Days after written notice from the Administrative Agent.

     

    “Departing
      Lender”
means
      a Departing
      Revolving Lender or a Departing Term B Lender.

     

    “Departing
      Revolving Lender”
means
      any
      Existing Lender that (i) has a “Revolving Commitment” under the Existing
      Credit Agreement and (ii) does not desire to be party to this
      Agreement.

     

    “Departing
      Term B Lender”
means
      any
      Existing Lender that (i) has made a “Term B Loan” under the Existing
      Credit Agreement and (ii) does not desire to be party to this
      Agreement.

     

    “Disposition”
means
      the sale,
      lease, conveyance or other disposition of property, other than sales or other
      dispositions expressly permitted under Sections 8.02(a)
      through
8.02(f).

     

    “Disposition
      Value”
means
      the
      aggregate net book value of all assets sold, transferred, leased or otherwise
      disposed of in any transaction, determined as of the date of such disposition
      or
      proposed disposition thereof. 

     

    “Dollars,”
“dollars”
and
“$”
each
      mean lawful
      money of the United States.

     

    “Earn-out
      Obligations”
means
      any
      obligations, whether contingent or matured, to pay additional consideration
      in
      connection with the Acquisition by Holdings or any Subsidiary of any capital
      stock or assets of any Person.

     

    “EBITA”
means,
      for any
      period, for Holdings and its Subsidiaries, the sum of Consolidated Net Income
      of
      Holdings and its Subsidiaries for such period (exclusive of extraordinary gains
      and losses and exclusive of earnings from Minority Investments but including
      earnings from Wholly-Owned Subsidiaries and Non-Wholly-Owned Subsidiaries (but
      in the case of Non-Wholly-Owned Subsidiaries, only to the extent of the ratable
      portion of ownership by Holdings or any Wholly-Owned Subsidiaries of Holdings
      in
      such Non-Wholly-Owned Subsidiaries)) plus
      (to the extent
      deducted in determining Consolidated Net Income) (i) Interest Expense for
      such period, (ii) income tax expense for such period,
      (iii) amortization expense and other non-cash expenses (including non-cash
      share-based compensation costs) for such period (other than depreciation
      expense) and (iv) cash distributions in respect of Minority Investments, in
      each case, measured in accordance with GAAP.

      
        
          
          

        

        
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    “EBITDA”
means,
      for any
      period, for Holdings and its Subsidiaries, the sum of Consolidated Net Income
      of
      Holdings and its Subsidiaries for such period (exclusive of extraordinary gains
      and losses and exclusive of earnings from Minority Investments but including
      earnings from Wholly-Owned Subsidiaries and Non-Wholly-Owned Subsidiaries (but
      in the case of Non-Wholly-Owned Subsidiaries, only to the extent of the ratable
      portion of ownership by Holdings or any Wholly-Owned Subsidiaries of Holdings
      in
      such Non-Wholly-Owned Subsidiaries)) plus
      (to the extent
      deducted in determining Consolidated Net Income) (i) Interest Expense for
      such period, (ii) income tax expense for such period,
      (iii) depreciation expense, amortization expense and other non-cash
      expenses (including non-cash share-based compensation costs) for such period
      and
      (iv) cash distributions in respect of Minority Investments, in each case,
      measured in accordance with GAAP. For purposes of determining the consolidated
      EBITDA of Holdings and its Subsidiaries hereunder for purposes of calculating
      the Total EBITDA Ratio hereunder, EBITDA shall be adjusted upon the Permitted
      Acquisition of the equity or all or substantially all of the assets of another
      Person (the “Acquiree”)
      (A) to
      include the historical financial results of such Acquiree for the four fiscal
      quarter period (“Calculation
      Period”)
      for which
      Holdings’ consolidated EBITDA is calculated hereunder, until such time as the
      first day of any Calculation Period falls on or after the date on which the
      Acquisition of such Acquiree is consummated; and (B) to exclude any
      specific, identifiable expense items which are eliminated as a result of the
      Permitted Acquisition of such Acquiree at the closing thereof, provided
      that, if
      available, audited financial statements accompanied by an unqualified opinion
      of
      an Independent Auditor are delivered to the Administrative Agent and the Lenders
      in respect of such Acquiree for the then most recent fiscal year of such
      Acquiree, and provided further
      that Holdings
      shall have delivered a certificate of a Responsible Officer clearly setting
      forth such pro forma
      additions and
      exclusions to consolidated EBITDA resulting from the Permitted Acquisition
      of
      such Acquiree.

     

    “Effective
      Amount”
means
      (i) with respect to any Revolving Loans, Term B Loans and Swingline
      Loans on any date, the aggregate outstanding principal amount thereof after
      giving effect to any Borrowings and prepayments or repayments of Revolving
      Loans, Term B Loans and Swingline Loans occurring on such date; and
      (ii) with respect to any outstanding L/C Obligations on any date, the
      amount of such L/C Obligations on such date after giving effect to any Issuances
      of Letters of Credit occurring on such date and any other changes in the
      aggregate amount of the L/C Obligations as of such date, including as a result
      of any reimbursements of outstanding unpaid drawings under any Letters of Credit
      or any reductions in the maximum amount available for drawing under Letters
      of
      Credit taking effect on such date; provided
      that for purposes
      of Section 2.08,
      the Effective
      Amount shall be determined without giving effect to any mandatory prepayments
      to
      be made under Section 2.08.

     

    “Effective
      Date”
means
      the date on
      which all conditions precedent set forth in Section 5.01
      are satisfied or
      waived by all of the Lenders (or, in the case of Section 5.01(f),
      waived by the
      Person entitled to receive such payment) which date shall not be later than
      December 31, 2006.

     

    “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
      Commitment, the L/C Issuer and the Swingline Lender, and (iii) unless an
      Event of Default has occurred and is

      
        
          
          

        

        
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    continuing,
      Holdings (each such approval not to be unreasonably withheld or delayed);
provided
      that
      notwithstanding the foregoing, “Eligible Assignee” shall not include Holdings or
      any of Holdings’ Affiliates or Subsidiaries.

     

    “Environmental
      Claims”
means
      all claims,
      however asserted, by any Governmental Authority or other Person alleging
      potential liability or responsibility for violation of any Environmental Law,
      or
      for release or injury to the environment or threat to public health, personal
      injury (including sickness, disease or death), property damage, natural
      resources damage, or otherwise alleging liability or responsibility for damages
      (punitive or otherwise), cleanup, removal, remedial or response costs,
      restitution, civil or criminal penalties, injunctive relief, or other type
      of
      relief, resulting from or based upon the presence, placement, discharge,
      emission or release (including intentional and unintentional, negligent and
      non-negligent, sudden or non-sudden, accidental or non-accidental, placement,
      spills, leaks, discharges, emissions or releases) of any Hazardous Material
      at,
      in, or from any property, whether or not owned by Holdings or any
      Subsidiary.

     

    “Environmental
      Laws”
means
      all
      federal, state or local laws, statutes, common law duties, rules, regulations,
      ordinances and codes, together with all administrative orders, directed duties,
      requests, licenses, authorizations and permits of, and agreements with, any
      Governmental Authorities, in each case relating to environmental, health, safety
      and land use matters; including the Comprehensive Environmental Response,
      Compensation and Liability Act of 1980 (“CERCLA”),
      the Clean Air
      Act, the Federal Water Pollution Control Act of 1972, the Solid Waste Disposal
      Act, the Federal Resource Conservation and Recovery Act, the Toxic Substances
      Control Act, the Emergency Planning and Community Right-to-Know Act, the
      California Hazardous Waste Control Law, the California Solid Waste Management,
      Resource, Recovery and Recycling Act, the California Water Code and the
      California Health and Safety Code.

     

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

     

    “ERISA
      Affiliate”
means
      any trade
      or business (whether or not incorporated) under common control with Holdings
      or
      the Company within the meaning of section 414(b) or (c) of the Code (and
      sections 414(m) and (o) of the Code for purposes of provisions relating to
      section 412 of the Code).

     

    “ERISA
      Event”
means
      (i) a
      Reportable Event with respect to a Pension Plan; (ii) a withdrawal by
      Holdings, the Company or any ERISA Affiliate from a Pension Plan subject to
      section 4063 of ERISA during a plan year in which it was a substantial
      employer (as defined in section 4001(a)(2) of ERISA) or a cessation of
      operations which is treated as such a withdrawal under section 4062(e) of
      ERISA; (iii) a complete or partial withdrawal by Holdings, the Company or
      any ERISA Affiliate from a Multiemployer Plan or notification that a
      Multiemployer Plan is in reorganization; (iv) the filing of a notice of
      intent to terminate, the treatment of a Plan amendment as a termination under
      section 4041 or 4041A of ERISA, or the commencement of proceedings by the
      PBGC to terminate a Pension Plan or Multiemployer Plan; (v) an event or
      condition which might reasonably be expected to constitute grounds under
      section 4042 of ERISA for the termination of, or the appointment of a
      trustee to administer, any Pension Plan or Multiemployer Plan; or (vi) the
      imposition of any liability under Title IV

      
        
          
          

        

        
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of
      ERISA, other
      than PBGC premiums due but not delinquent under section 4007 of ERISA, upon
      Holdings, the Company or any ERISA Affiliate.

     

    “Event
      of
      Default”
means
      any of the
      events or circumstances specified in Section 9.01.

     

    “Event
      of
      Loss”
means,
      with
      respect to any property, any of the following: (i) any loss, destruction or
      damage of such property; (ii) any pending or threatened institution of any
      proceedings for the condemnation or seizure of such property or for the exercise
      of any right of eminent domain; or (iii) any actual 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.

     

    “Exchange
      Act”
means
      the
      Securities Exchange Act of 1934.

     

    “Excluded
      Taxes”
means,
      with
      respect to the Administrative Agent, any Lender, the L/C Issuer or any other
      recipient of any payment to be made by or on account of any obligation of
      Holdings hereunder, (a) taxes imposed on or measured by its overall net
      income (however denominated), and franchise taxes imposed on it (in lieu of
      net
      income taxes), by the jurisdiction (or any political subdivision thereof) under
      the laws of which such recipient is organized or in which its principal office
      is located or, in the case of any Lender, in which its applicable Lending Office
      is located, (b) any branch profits taxes imposed by the United States or
      any similar tax imposed by any other jurisdiction in which Holdings is located
      and (c) in the case of a Foreign Lender (other than an assignee pursuant to
      a request by Holdings under Section 4.07),
      any withholding
      tax that is imposed on amounts payable to such Foreign Lender at the time such
      Foreign Lender becomes a party hereto (or designates a new Lending Office)
      or is
      attributable to such Foreign Lender’s failure or inability (other than as a
      result of a Change in Law) to comply with Section 4.01(e),
      except to the
      extent that such Foreign Lender (or its assignor, if any) was entitled, at
      the
      time of designation of a new Lending Office (or assignment), to receive
      additional amounts from Holdings with respect to such withholding tax pursuant
      to Section 4.01(a).

     

    “Existing
      Credit
      Agreement”
has
      the meaning
      specified in Recital A.

     

    “Existing
      Lender”
has
      the meaning
      specified in Recital A.

     

    “Existing
      Letters
      of Credit”
means
      those
      letters of credit issued under the Existing Credit Agreement and set forth
      on
Schedule 1.01.

     

    “Federal
      Funds
      Rate”
means,
      for any
      day, the rate set forth in the weekly statistical release designated as
      H.15(519), or any successor publication, published by the Federal Reserve Bank
      of New York with respect to the preceding Business Day opposite the caption
      “Federal Funds (Effective)”; or, if for any relevant day such rate is not so
      published with respect to any such preceding Business Day, the rate for such
      day
      will be the arithmetic mean as determined by the Administrative Agent of the
      rates for the last transaction in overnight Federal funds arranged prior to
      9:00
      a.m. (New York City time) on that day by each of three leading brokers of
      Federal funds transactions in New York City selected by the Administrative
      Agent.

      
        
          
          

        

        
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    “Fee
      Letters”
has
      the meaning
      specified in Section 2.11(a).

     

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

     

    “FRB”
means
      the Board
      of Governors of the Federal Reserve System, and any Governmental Authority
      succeeding to any of its principal functions.

     

    “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.

     

    “Funded
      Debt”
means,
      as of any
      date of determination, all (x) indebtedness for borrowed money plus
      (y) reimbursement obligations in respect of Surety Instruments plus
      (z) obligations in respect of Capital Leases, in each case of Holdings and
      its Subsidiaries on such date, on a consolidated basis in accordance with GAAP,
      including all Revolving Loans, Term B Loans, Swingline Loans and L/C
      Borrowings, but excluding all L/C Obligations specified in clause (i) of
      the definition thereof.

     

    “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, subject to
      Section 1.03.

     

    “Governmental
      Authority”
means
      the
      government of the United States or any other nation, or of any political
      subdivision thereof, whether state or local, and any agency, authority,
      instrumentality, regulatory body, court, central bank or other entity exercising
      executive, legislative, judicial, taxing, regulatory or administrative powers
      or
      functions of or pertaining to government (including any supra-national bodies
      such as the European Union or the European Central Bank).

     

    “Guarantor”
means
      each direct
      or indirect U.S. Wholly-Owned Subsidiary of Holdings that currently exists
      or is
      hereafter acquired or created and which is a party to a Guaranty in its capacity
      as a guarantor of any of the Obligations, and shall include the Company and
      each
      U.S. Wholly-Owned Subsidiary of Holdings party hereto; provided,
however,
      that in no event
      shall (i) the definition of Guarantor include BMC Insurance, Inc. and
      (ii) any Guarantor be released of its obligations under any Guaranty in the
      event such Guarantor ceases to be a U.S. Wholly-Owned Subsidiary, by operation
      of any disposition of the equity thereof or otherwise, except as permitted
      under
      this Agreement.

     

    “Guaranty”
means
      the
      guaranty of each Guarantor made pursuant to Section 11.10
      and any other
      guaranty under any separate agreement executed by any Guarantor pursuant to
      which it guarantees any of the Obligations.

      
        
          
          

        

        
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    “Guaranty
      Obligation”
has
      the meaning
      specified in the definition of “Contingent Obligation.”

     

    “Hazardous
      Materials”
means
      all those
      substances that are regulated by, or which may form the basis of liability
      under, any Environmental Law, including any substance identified under any
      Environmental Law as a pollutant, contaminant, hazardous waste, hazardous
      constituent, special waste, hazardous substance, hazardous material, or toxic
      substance, or petroleum or petroleum derived substance or waste.

     

    “Holdings”
has
      the meaning
      specified in the preamble.

     

    “Honor
      Date”
has
      the meaning
      specified in Section 3.03(b).

     

    “Indebtedness”
of
      any Person
      means, without duplication, (i) all indebtedness for borrowed money;
      (ii) all obligations issued, undertaken or assumed as the deferred purchase
      price of property or services (other than trade payables entered into in the
      ordinary course of business on ordinary terms and (x) not past due for more
      than 120 days or (y) if past due for more than 120 days, are being
      contested in good faith with any reserves as may be required by GAAP made
      therefor, but including all non-contingent Earn-Out Obligations); (iii) all
      reimbursement or payment obligations with respect to Surety Instruments
      (contingent or otherwise); (iv) all obligations evidenced by notes, bonds,
      debentures or similar instruments, including obligations so evidenced incurred
      in connection with the acquisition of property, assets or businesses;
      (v) all indebtedness created or arising under any conditional sale or other
      title retention agreement, or incurred as financing, in either case with respect
      to property acquired by the Person (even though the rights and remedies of
      the
      seller or lender under such agreement in the event of default are limited to
      repossession or sale of such property); (vi) all obligations with respect
      to Capital Leases; (vii) all indebtedness referred to in clauses (i)
      through (vi) above secured by (or for which the holder of such Indebtedness
      has
      an existing right, contingent or otherwise, to be secured by) any Lien upon
      or
      in property (including accounts and contract rights) owned by such Person,
      even
      though such Person has not assumed or become liable for the payment of such
      Indebtedness; (viii) all Guaranty Obligations in respect of indebtedness or
      obligations of others of the kinds referred to in clauses (i) through (vii)
      above; and (ix) all Stock Price Guaranties having a tenor of six (6) months
      or more or exceeding $2,000,000 in the aggregate for all Stock Price Guaranties
      then outstanding. For all purposes of this Agreement, the Indebtedness of any
      Person shall include all recourse Indebtedness of any partnership or joint
      venture or limited liability company in which such Person is a general partner
      or a joint venturer or a member.

     

    “Indemnified
      Taxes”
means
      Taxes other
      than Excluded Taxes.

     

    “Independent
      Auditor”
has
      the meaning
      specified in Section 7.01(a).

     

    “Insolvency
      Proceeding”
means,
      with
      respect to any Person, (i) any case, action or proceeding with respect to
      such Person before any court or other Governmental Authority relating to
      bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution,
      winding-up or relief of debtors, or (ii) any general assignment for the
      benefit of creditors, composition, marshalling of assets for creditors, or
      other, similar arrangement in respect of its

      
        
          
          

        

        
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    creditors
      generally
      or any substantial portion of its creditors; in either case undertaken under
      U.S. Federal, state or foreign law, including the Bankruptcy
      Code.

     

    “Intellectual
      Property Security Agreement”
has
      the meaning
      specified in the Security Agreement.

     

    “Interest
      Expense”
means,
      for any
      period, for Holdings and its Subsidiaries on a consolidated basis in accordance
      with GAAP, all interest in respect of Indebtedness accrued or capitalized during
      such period (whether or not actually paid during such period).

     

    “Interest
      Payment
      Date”
means,
      (i) as to any Offshore Rate Loan, the last day of each Interest Period
      applicable to such Loan, (ii) as to any Base Rate Loan, the last Business
      Day of each calendar quarter and the Revolving Loan Maturity Date (in the case
      of Revolving Loans), and the Term B Loan Maturity Date (in the case of
      Term B Loans) and (iii) as to any Swingline Loan, each of the last
      Business Day of each calendar quarter and the Revolving Loan Maturity Date;
      provided,
however,
      that if any
      Interest Period for an Offshore Rate Loan exceeds three months, the date that
      falls three months after the beginning of such Interest Period and after each
      Interest Payment Date thereafter is also an Interest Payment Date.

     

    “Interest
      Period”
means,
      as to any
      Offshore Rate Loan, the period commencing on the Borrowing Date of such Loan
      or
      on the Conversion/Continuation Date on which the Loan is converted into or
      continued as an Offshore Rate Loan, and ending on the date one, two, three
      or
      six months thereafter, as selected by Holdings in its Notice of Borrowing or
      Notice of Conversion/Continuation; provided
      that:

     

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

     

    (ii) any
      Interest Period
      pertaining to an Offshore Rate Loan that begins on the last Business Day of
      a
      calendar month (or on a day for which there is no numerically corresponding
      day
      in the calendar month at the end of such Interest Period) shall end on the
      last
      Business Day of the calendar month at the end of such Interest
      Period;

     

    (iii) no
      Interest Period
      for any Term B Loan shall extend beyond the Term B Loan Maturity Date
      and no Interest Period for any Revolving Loan shall extend beyond the Revolving
      Loan Maturity Date; and

     

    (iv) no
      Interest Period
      applicable to a Term B Loan or portion thereof shall extend beyond any date
      upon which is due any scheduled principal payment in respect of such Term B
      Loan unless the aggregate principal amount of such Term B Loans represented
      by Base Rate Loans or Offshore Rate Loans having Interest Periods that will
      expire on or before such date, equals or exceeds the amount of such principal
      payment.

     

    “Internal
      Control
      Event”
means
      a material
      weakness in, or material fraud that involves management or other employees
      who
      have a significant role in, Holdings’ internal

      
        
          
          

        

        
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    controls
      over
      financial reporting, in each case relating to such financial reporting and
      as
      described in the Securities Laws.

     

    “Investment”
has
      the meaning
      specified in Section 8.04.

     

    “IRS”
means
      the
      Internal Revenue Service, and any Governmental Authority succeeding to any
      of
      its principal functions under the Code.

     

    “Issuance
      Date”
has
      the meaning
      specified in Section 3.01(a).

     

    “Issue”
means,
      with
      respect to any Letter of Credit, to issue or to extend the expiry of, or to
      renew or increase the amount of or otherwise amend, such Letter of Credit;
      and
      the terms “Issued,”
“Issuing”
and
“Issuance”
have
      corresponding meanings.

     

    “Joint
      Lead
      Arranger”
means
      each of
      Wells Fargo, J.P. Morgan Securities, Inc., SunTrust Bank and BNP Paribas, each
      in their respective capacity as Joint Lead Arranger.

     

    “L/C
      Advance”
means
      each
      Revolving Lender’s participation in any L/C Borrowing in accordance with its
      Proportionate Share.

     

    “L/C
      Amendment
      Application”
means
      an
      application form for amendment of outstanding Standby or Commercial Letters
      of
      Credit as shall at any time be in use at the L/C Issuer, as the L/C Issuer
      shall
      request.

     

    “L/C
      Application”
means
      an
      application form for issuances of Standby or Commercial Letters of Credit as
      shall at any time be in use at the L/C Issuer, as the L/C Issuer shall
      request.

     

    “L/C
      Borrowing”
means
      an
      extension of credit resulting from a drawing under any Letter of Credit which
      shall not have been reimbursed on the date when made nor converted into a
      Borrowing of Revolving Loans under Section 3.03(c).

     

    “L/C
      Commitment”
means
      the
      commitment of the L/C Issuer to Issue, and the commitment of the Revolving
      Lenders severally to participate in, Letters of Credit from time to time Issued
      or outstanding under Article III,
      in an aggregate
      amount not to exceed on any date the amount of $200,000,000, as the same shall
      be reduced as a result of a reduction in the L/C Commitment pursuant to
Section 2.05
      or Section 2.08;
provided
      that the L/C
      Commitment is a part of the combined Revolving Commitments of the Revolving
      Lenders rather than a separate, independent commitment; and provided further
      that if as a
      result of any Commitment reductions hereunder the L/C Commitment shall exceed
      the combined Revolving Commitments of the Revolving Lenders, the L/C Commitment
      shall automatically reduce by the amount of such excess.

     

    “L/C
      Issuer”
means
      Wells Fargo
      (or Trade Bank, as agent for Wells Fargo) in its capacity as issuer of one
      or
      more Letters of Credit hereunder, together with any replacement letter of credit
      issuer arising under Section 10.06
      or Section 11.06.

      
        
          
          

        

        
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    “L/C
      Obligations”
means
      at any time
      the sum of (i) the aggregate undrawn amount of all Letters of Credit then
      outstanding, plus
      (ii) the
      amount of all unreimbursed drawings under all Letters of Credit, including
      all
      outstanding L/C Borrowings.

     

    “L/C-Related
      Documents”
means
      the Letters
      of Credit, the L/C Applications, the L/C Amendment Applications and any other
      documents relating to any Letter of Credit, including any of the L/C Issuer’s
      standard form documents for letter of credit issuances.

     

    “Lender”
has
      the meaning
      specified in the preamble,
      and includes
      Revolving Lenders and Term B Lenders, provided,
however,
      that from and
      after any Subsequent Effective Date, any Additional Lenders shall also be deemed
      “Lenders”
for
      all purposes
      hereunder. References to the “Lenders”
shall
      include
      Wells Fargo, including in its capacity as L/C Issuer and Swingline Lender;
      for
      purposes of clarification only, to the extent that Wells Fargo may have any
      rights or obligations in addition to those of the Lenders due to its status
      as
      L/C Issuer or Swingline Lender, its status as such will be specifically
      referenced. Unless the context otherwise clearly requires, “Lender”
includes
      any such
      institution in its capacity as Swap Provider. Unless the context otherwise
      clearly requires, references to any such institution as a “Lender”
shall
      also
      include any of such institution’s Affiliates that may at any time of
      determination be Swap Providers.

     

    “Lending
      Office”
means,
      as to any
      Lender, the office or offices of such Lender described as such in such Lender’s
      Administrative Questionnaire, or such other office or offices as a Lender may
      from time to time notify Holdings and the Administrative Agent.

     

    “Letters
      of
      Credit”
means
      any letters
      of credit Issued by the L/C Issuer pursuant to Article III
      (which may be
      Commercial Letters of Credit or Standby Letters of Credit), and shall include
      the Existing Letters of Credit.

     

    “Lien”
means
      any
      security interest, mortgage, deed of trust, pledge, hypothecation, assignment,
      charge or deposit arrangement, encumbrance, lien (statutory or other) or
      preferential arrangement of any kind or nature whatsoever in respect of any
      property (including those created by, arising under or evidenced by any
      conditional sale or other title retention agreement, the interest of a lessor
      under a Capital Lease, any financing lease having substantially the same
      economic effect as any of the foregoing, or the authorized filing of any
      financing statement naming the owner of the asset to which such lien relates
      as
      debtor, under the Uniform Commercial Code or any comparable law) and any
      contingent or other agreement to provide any of the foregoing.

     

    “Loan”
means
      an
      extension of credit by a Lender to Holdings (i) under Article II,
      which may be a
      Base Rate Loan or an Offshore Rate Loan (each a “Type”
of
      Loan) or a
      Swingline Loan, and includes a Revolving Loan or Term B Loan, or
      (ii) under Article III
      in the form of an
      L/C Advance.

     

    “Loan
      Documents”
means
      this
      Agreement, the Notes, each Guaranty, the Collateral Documents, the Fee Letters,
      the L/C Related Documents, any documents evidencing or relating to Specified
      Swap Contracts and all other documents delivered to the Administrative Agent
      or
      any Lender in connection herewith.

      
        
          
          

        

        
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    “Loan
      Party”
means
      Holdings,
      the Company and each other Guarantor.

     

    “Majority
      Lenders”
means
      two or more
      Lenders whose (x) Revolving Commitments (or, if all Revolving Commitments
      have been terminated, whose outstanding Revolving Loans plus
      Revolving
      Proportionate Share, if any, of the Effective Amount of all L/C Obligations
      plus
      Revolving
      Proportionate Share, if any, of the Effective Amount of all Swingline Loans),
      plus
      (y) outstanding Term B Loans exceed 50% of the sum of (xx) the
      Aggregate Revolving Commitment (or, if all Revolving Commitments have been
      terminated, the Effective Amount of all Revolving Loans plus
      the Effective
      Amount of all L/C Obligations plus
      the Effective
      Amount of all Swingline Loans), plus
      (yy) the
      Effective Amount of all Term B Loans; provided,
however,
      that at any time
      any Lender is a Defaulting Lender, all Defaulting Lenders shall be excluded
      in
      determining “Majority Lenders” and such Defaulting Lenders’ Revolving
      Commitments (or Revolving Loans and Revolving Proportionate Share of L/C
      Obligations and Swingline Loans, as the case may be) and Term B Loans shall
      be excluded in such determination, and “Majority Lenders” shall mean two or more
      non-Defaulting Lenders (or if there is only one non-Defaulting Lender, such
      Lender) otherwise meeting the criteria set forth in this
      definition.

     

    “Majority
      Revolving Lenders”
means
      two or more
      Revolving Lenders whose Revolving Proportionate Shares then exceed fifty percent
      (50%); provided,
however,
      that at any time
      any Revolving Lender is a Defaulting Lender, all Defaulting Lenders shall be
      excluded in determining “Majority Revolving Lenders”, and “Majority Revolving
      Lenders” shall mean two or more non-Defaulting Lenders (or if there is only one
      non-Defaulting Lender, such Lender) having total Revolving Proportionate Shares
      exceeding fifty percent (50%) of the total Revolving Proportionate Shares of
      all
      non-Defaulting Lenders.

     

    “Majority
      Term B Lenders”
means
      two or more
      Term B Lenders whose Term B Proportionate Shares then exceed fifty
      percent (50%); provided,
however,
      that at any time
      any Term B Lender is a Defaulting Lender, all Defaulting Lenders shall be
      excluded in determining “Majority Term B Lenders”, and “Majority
      Term B Lenders” shall mean two or more non-Defaulting Lenders (or if there
      is only one non-Defaulting Lender, such Lender) having total Term B
      Proportionate Shares exceeding fifty percent (50%) of the total Term B
      Proportionate Shares of all non-Defaulting Lenders.

     

    “Margin
      Stock”
means
“margin
      stock” as such term is defined in Regulation T, U or X of the FRB.

     

    “Material
      Adverse
      Effect”
means
      (i) a
      material adverse change in, or a material adverse effect upon, the operations,
      business, properties or condition (financial or otherwise) of Holdings or
      Holdings and its Subsidiaries taken as a whole; (ii) a material impairment
      of the ability of any Loan Party to perform under any Loan Document and to
      avoid
      any Event of Default; or (iii) a material adverse effect upon (a) the
      legality, validity, binding effect or enforceability against any Loan Party
      of
      any Loan Document or (b) the perfection or priority of any Lien granted
      under the Collateral Documents.

     

    “Minimum
      Amount”
means
      (i) in
      respect of any Borrowing, conversion or continuation of Loans, (a) in the
      case of Base Rate Loans, an aggregate minimum amount of

      
        
          
          

        

        
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    $5,000,000
      or any
      integral multiple of $1,000,000 in excess thereof, (b) in the case of
      Offshore Rate Loans, an aggregate minimum amount of $5,000,000 or any integral
      multiple of $1,000,000 in excess thereof and (c) in the case of Swingline
      Loans, an aggregate minimum amount of $100,000 or any integral multiple of
      $100,000 in excess thereof (or such other amount as shall be acceptable to
      the
      Swingline Lender), (ii) in the case of any reduction of the Commitments
      under Section 2.05,
      $5,000,000 or any
      multiple of $1,000,000 in excess thereof, and (iii) in the case of any
      optional prepayment of Loans under Section 2.07,
      $5,000,000 or any
      multiple of $1,000,000 in excess thereof (provided
      that any optional
      prepayment of Offshore Rate Loans under Section 2.07
      must also be in a
      minimum amount of $5,000,000 or any multiple of $1,000,000 in excess
      thereof).

     

    “Minority
      Investment”
means
      the direct
      or indirect Investment by Holdings in the equity interests of any Person,
provided
      in each case that
      such Person is not a Subsidiary at the time of such Investment and after giving
      effect thereto.

     

    “Multiemployer
      Plan”
means
      a
“multiemployer plan,” within the meaning of section 4001(a)(3) of ERISA, to
      which Holdings, the Company or any ERISA Affiliate makes, is making, or is
      obligated to make contributions or, during the preceding three calendar years,
      has made, or been obligated to make, contributions.

     

    “Net
      Issuance
      Proceeds”
means,
      as to any
      issuance of debt or equity by any Person, cash proceeds received or receivable
      by such Person in connection therewith, net of costs and expenses paid or
      incurred in connection therewith in favor of any Person not an Affiliate of
      such
      Person.

     

    “Net
      Proceeds”
means,
      as to any
      Disposition by a Person, proceeds in cash, checks or other cash equivalent
      financial instruments as and when received by such Person, net of: (i) the
      direct costs relating to such Disposition excluding amounts payable to such
      Person or any Affiliate of such Person, (ii) sale, use or other transaction
      taxes and capital gains taxes paid or payable by such Person as a direct result
      thereof, and (iii) amounts required to be applied to repay principal,
      interest and prepayment premiums and penalties on Indebtedness secured by a
      purchase money security interest on any asset which is the subject of such
      Disposition. “Net
      Proceeds”
shall
      also
      include proceeds paid on account of any Event of Loss, net of (a) all money
      actually applied to repair or reconstruct the damaged property or property
      affected by the condemnation or taking, (b) all of the direct costs and
      expenses incurred in connection with the collection of such proceeds, award
      or
      other payments, and (c) any amounts retained by or paid to parties having
      superior rights to such proceeds, awards or other payments. For purposes of
      determining the amount of Net Proceeds in respect of any Disposition or Event
      of
      Loss, however, the amount of proceeds calculated as provided above shall be
      reduced by the amount of such proceeds that such Person has used (or intends
      to
      use within 365 days of the date of receipt of such proceeds as certified by
      a
      Responsible Officer of such Person) to acquire tangible assets to be used in
      the
      business of Holdings and its Subsidiaries (which tangible assets must become
      Collateral to the extent that such Net Proceeds are attributable to assets
      that
      were Collateral) or to pay the purchase price in respect of any Permitted
      Acquisition permitted hereunder that directly results in either (A) the
      acquired Person becoming a U.S. Wholly-Owned Subsidiary that becomes a Guarantor
      hereunder pursuant to Section 7.13
      or (B) the
      acquired assets being owned by Holdings, a Guarantor or a U.S. Wholly-Owned
      Subsidiary that becomes a Guarantor

      
        
          
          

        

        
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    hereunder
      pursuant
      to Section 7.13
      in the case of a
      Permitted Acquisition structured as an asset purchase, it being understood
      that
      any portion of such proceeds that has not been so used within 365 days of the
      date of receipt of such proceeds shall be deemed to be Net Proceeds received
      on
      the last day of such 365-day period and that, in any case, all such proceeds
      shall be deemed to be Net Proceeds at any time that an Event of Default exists
      hereunder; provided,
however,
      that if such
      Person only uses a portion of such proceeds for said acquisition of tangible
      assets or Permitted Acquisition within such 365-day period, then the amount
      of
      Net Proceeds calculated as provided above shall be reduced only by the amount
      of
      such proceeds so used. 

     

    “New
      Lenders”
has
      the meaning
      specified in Recital B.

     

    “New
      Revolving
      Lender”
means
      any New
      Lender that is joining this Agreement as a Revolving Lender on the Effective
      Date and that has no “Revolving Commitment” under the Existing Credit
      Agreement.

     

    “New
      Term B
      Lender”
means
      any New
      Lender that is joining this Agreement as a Term B Lender on the Effective
      Date and that holds no “Term B Loans” under the Existing Credit
      Agreement.

     

    “New
      Term B
      Loan”
has
      the meaning
      specified in Section 2.01(a)(ii).

     

    “Non-Wholly-Owned
      Subsidiaries”
means
      all direct
      and indirect Subsidiaries of Holdings which are not Wholly-Owned
      Subsidiaries.

     

    “Notes”
means,
      collectively, the Revolving Notes and the Term B Notes.

     

    “Notice
      of
      Borrowing”
means
      a Notice of
      Revolving Loan Borrowing or a Notice of Term B Loan Borrowing, as
      applicable.

     

    “Notice
      of
      Conversion/Continuation”
means
      a Notice of
      Revolving Loan Conversion/Continuation or a Notice of Term B Loan
      Conversion/Continuation, as applicable.

     

    “Notice
      of
      Revolving Loan Borrowing”
means
      a notice in
      substantially the form of Exhibit A-1.

     

    “Notice
      of
      Revolving Loan Conversion/Continuation”
means
      a notice in
      substantially the form of Exhibit B-1.

     

    “Notice
      of
      Term B Loan Borrowing”
means
      a notice in
      substantially the form of Exhibit A-2.

     

    “Notice
      of
      Term B Loan Conversion/Continuation”
means
      a notice in
      substantially the form of Exhibit
      B-2.

     

    “Obligations”
means
      all
      advances to, and debts and liabilities of, any Loan Party arising under any
      Loan
      Document, or otherwise with respect to any Loan or Letter of Credit, whether
      direct or indirect (including those acquired by assumption), absolute or
      contingent, due

      
        
          
          

        

        
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    or
      to become due, now existing or hereafter arising and including interest and
      fees
      that accrue after the commencement by or against any Loan Party of any
      Insolvency Proceeding naming such Person as the debtor in such proceeding,
      regardless of whether such interest and fees are allowed claims in such
      proceeding.

     

    “Offshore
      Rate”
means,
      for any
      Interest Period with respect to an Offshore Rate Loan, the rate per annum equal
      to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by
      Reuters (or other commercially available source providing quotations of BBA
      LIBOR as designated by the Administrative Agent from time to time) at
      approximately 11:00 a.m., London time, two Business Days prior to the
      commencement of such Interest Period, for Dollar deposits (for delivery on
      the
      first day of such Interest Period) with a term equivalent to such Interest
      Period. If such rate is not available at such time for any reason, then the
      “Offshore Rate” for such Interest Period shall be the rate per annum determined
      by the Administrative Agent to be the rate at which deposits in Dollars for
      delivery on the first day of such Interest Period in same day funds in the
      approximate amount of the Offshore Rate Loan being made, continued or converted
      by Wells Fargo and with a term equivalent to such Interest Period would be
      offered by Wells Fargo to major banks in the London interbank eurodollar market
      at their request at approximately 11:00 a.m. (London time) two Business Days
      prior to the commencement of such Interest Period.

     

    “Offshore
      Rate
      Loan”
means
      a Loan that
      bears interest based on the Offshore Rate.

     

    “Operating
      Lease”
means,
      for any
      Person, any lease of property (whether real, personal or mixed) which, in
      accordance with GAAP, would, at the time a determination is made, be required
      to
      be recorded as an operating lease in respect of which such Person is liable
      as
      lessee.

     

    “Organization
      Documents”
means,
      (a) with respect to any corporation, the certificate or articles of
      incorporation and the bylaws (or equivalent or comparable constitutive documents
      with respect to any non-U.S. jurisdiction); (b) with respect to any limited
      liability company, the certificate or articles of formation or organization
      and
      operating agreement; and (c) with respect to any partnership, joint
      venture, trust or other form of business entity, the partnership, joint venture
      or other applicable agreement of formation or organization and any agreement,
      instrument, filing or notice with respect thereto filed in connection with
      its
      formation or organization with the applicable Governmental Authority in the
      jurisdiction of its formation or organization and, if applicable, any
      certificate or articles of formation or organization of such
      entity.

     

    “Other
      Permitted
      Acquisition”
means
      a Permitted
      Acquisition in respect of which either (i) less than 100% (other than directors’
qualifying shares required by law) of the capital stock or similar equity
      interest of any acquired or newly formed corporation, partnership, limited
      liability company or other business entity is owned directly by Holdings or
      a
      U.S. Wholly-Owned Subsidiary such that such acquired or newly formed entity
      shall not become a Loan Party in accordance with Section
      7.13
      or (ii) in the
      case of an asset acquisition, the acquired assets are not owned directly by
      a
      Loan Party.

      
        
          
          

        

        
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    “Other
      Taxes”
means
      all present
      or future stamp or documentary taxes or any other excise or property taxes,
      charges or similar levies arising from any payment made hereunder or under
      any
      other Loan Document or from the execution, delivery or enforcement of, or
      otherwise with respect to, this Agreement or any other Loan
      Document.

     

    “Participant”
has
      the meaning
      specified in Section 11.06(d).

     

    “PBGC”
means
      the Pension
      Benefit Guaranty Corporation, or any Governmental Authority succeeding to any
      of
      its principal functions under ERISA.

     

    “PCAOB”
means
      the Public
      Company Accounting Oversight Board.

     

    “Pension
      Plan”
means
      a pension
      plan (as defined in section 3(2) of ERISA) subject to Title IV of ERISA
      which Holdings or the Company sponsors, maintains, or to which it makes, is
      making, or is obligated to make contributions, or in the case of a multiple
      employer plan (as described in section 4064(a) of ERISA) has made
      contributions at any time during the immediately preceding five (5) plan
      years.

     

    “Permitted
      Acquisition”
means
      any
      Acquisition that conforms to the following requirements: (i) the assets,
      Person, division or line of business to be acquired is in a substantially
      similar or ancillary line of business as the Company or one of its U.S.
      Wholly-Owned Subsidiaries, (ii) the Administrative Agent and the Lenders
      shall have received promptly, and in any event no less than ten (10) Business
      Days prior to the consummation of such Acquisition, (a) financial
      information regarding the assets, Person, division or business to be acquired,
      including the most recent audited financial statements, if available, but in
      any
      case the most recently prepared balance sheet, statement of income and statement
      of cash flows for the assets, Person, division or business to be acquired and
      pro forma projected consolidated financial statements of Holdings showing the
      effect of the Acquisition of the assets, Person, division or business on
      Holdings and its Subsidiaries, including a pro forma balance sheet for Holdings
      and its Subsidiaries as of the date of the most recent financial statements
      delivered to the Administrative Agent under Section 5.01(c),
      Section 7.01(a) or Section 7.01(b) and projected statements of income
      and cash flows for Holdings and its Subsidiaries through at least the
      Term B Loan Maturity Date, and (b) a completed worksheet in
      substantially the form of Schedule 1 to the Compliance Certificate demonstrating
      Holdings’ pro forma compliance with the financial covenants set forth in
Section 8.19,
      measured as of
      the last day of the most recent fiscal quarter for which Holdings has delivered
      financial statements under Section 5.01(c),
Section 7.01(a)
      or Section 7.01(b),
      after giving
      effect to such Acquisition, (iii) all transactions related to such
      Acquisition shall be consummated in all material respects in accordance with
      applicable Requirements of Law, (iv) such Acquisition shall be non-hostile
      in nature, (v) the prior, effective written consent or approval to such
      Acquisition of the board of directors or equivalent governing body of the
      acquiree is obtained, and (vi) immediately after giving effect to such
      Acquisition: (a) no Default shall have occurred and be continuing or would
      result therefrom, (b) a majority of the capital stock or similar equity
      interest of any acquired or newly formed corporation, partnership, limited
      liability company or other business entity is owned directly by Holdings or
      a
      U.S. Wholly-Owned Subsidiary of Holdings such that such acquired or newly formed
      entity shall be a U.S. Subsidiary, and (c) all actions required to be taken
      with

      
        
          
          

        

        
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    respect
      to such
      acquired or newly formed Subsidiary under Section 7.13
      or as otherwise
      required under Section 7.14
      shall have been
      taken.

     

    “Permitted
      Equity
      Offering”
means
      an offering
      by Holdings of preferred stock or other equity interests of Holdings, if the
      rights, preferences, privileges and use of proceeds of such equity offering
      have
      been approved by the Majority Lenders in writing prior to issuance, provided
      that no such
      securities shall be issued if a Default exists prior to, or immediately after,
      such issuance.

     

    “Permitted
      Liens”
has
      the meaning
      specified in Section 8.01.

     

    “Permitted
      Refinancing Indebtedness”
means,
      in respect
      of any Indebtedness, any refinancings, refundings, renewals or extensions
      thereof; provided
      that (i) the
      amount of such Indebtedness is not increased at the time of such refinancing,
      refunding, renewal or extension except by an amount equal to a premium or other
      amount paid, and fees and expenses reasonably incurred, in connection with
      such
      refinancing and by an amount equal to any existing commitments unutilized and
      available for borrowing thereunder and (ii) the direct or any contingent
      obligor with respect thereto is not changed, as a result of or in connection
      with such refinancing, refunding, renewal or extension; and provided further
      that (i) such
      refinancing, refunding, renewing or extending Indebtedness has a final maturity
      that is no sooner than the final maturity of, and a weighted average life to
      maturity that is no shorter than the remaining weighted average life of, such
      Indebtedness, (ii) if such Indebtedness or any guaranties thereof are
      subordinated to the Obligations, such refinancing, refunding, renewing or
      extending Indebtedness and any guaranties thereof remain so subordinated on
      terms no less favorable to the Lenders, (iii) the material terms taken as a
      whole of any such refinancing, refunding, renewing or extending Indebtedness,
      and of any agreement entered into and of any instrument issued in connection
      therewith, are no less favorable in any material respect to the Loan Parties
      or
      the Lenders than the terms, taken as a whole, of any agreement or instrument
      governing the Indebtedness being refinanced, refunded, renewed or extended
      and
      (iv) the interest rate applicable to any such refinancing, refunding,
      renewing or extending Indebtedness does not exceed the then applicable market
      interest rate.

     

    “Permitted
      Subordinated Debt”
has
      the meaning
      specified in Section 8.05(j).

     

    “Permitted
      Swap
      Obligations”
means
      all
      obligations (contingent or otherwise) of Holdings or any Subsidiary existing
      or
      arising under Swap Contracts, provided
      that each of the
      following criteria is satisfied: (i) such obligations are (or were) entered
      into by such Person in the ordinary course of business for the purpose of
      directly mitigating risks associated with liabilities, commitments or assets
      held or reasonably anticipated by such Person, or changes in the value of
      securities issued by such Person in conjunction with a securities repurchase
      program not otherwise prohibited hereunder, and not for purposes of speculation
      or taking a “market view; and (ii) such Swap Contracts do not contain
      (a) any provision (“walk-away” provision) exonerating the non-defaulting
      party from its obligation to make payments on outstanding transactions to the
      defaulting party, or (b) any provision creating or permitting the
      declaration of an event of default, termination event or similar event upon
      the
      occurrence of an Event of Default hereunder (other than an Event of Default
      under Section 9.01(a)).

      
        
          
          

        

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

     

    “Plan”
means
      an employee
      benefit plan (as defined in section 3(3) of ERISA) which Holdings or the
      Company sponsors or maintains or to which Holdings or the Company makes, is
      making, or is obligated to make contributions and includes any Pension
      Plan.

     

    “Pledged
      Collateral”
means
      the
“Pledged Collateral” as defined in the Security Agreement and shall include all
      products and Proceeds (as defined in the Security Agreement) of the Pledged
      Collateral.

     

    “Proportionate
      Share”
shall
      mean, as to
      any Lender at any time, the percentage equivalent (expressed as a decimal,
      rounded to the ninth decimal place) at such time of:

     

    (a) in
      the case of the
      Revolving Commitments, the Revolving Loans, the Swingline Loans or the L/C
      Obligations, such Lender’s Revolving Commitment divided by the combined
      Revolving Commitments of all Lenders (or, if all Revolving Commitments have
      been
      terminated, (i) the sum of (A) the Effective Amount of such Lender’s
      Revolving Loans, (B) such Lender’s pro rata
      share, if any, of
      the Effective Amount of all L/C Obligations, and (C) such Lender’s
pro rata
      share, if any, of
      the Effective Amount of all Swingline Loans) divided by (ii) the sum of
      (A) the Effective Amount of all Revolving Loans, (B) the Effective
      Amount of all L/C Obligations and (C) the Effective Amount of all Swingline
      Loans) (the “Revolving
      Proportionate Share”);

     

    (b) in
      the case of the
      Term B Commitments or the Term B Loans, such Lender’s Term B
      Commitment divided by the combined Term B Commitments of all Lenders (or,
      if all Term B Commitments have been terminated, the Effective Amount of
      such Lender’s Term B Loans divided by the Effective Amount of all
      Term B Loans) (the “Term B
      Proportionate Share”);
      and

     

    (c) in
      all other cases,
      (i) the sum of (A) such Lender’s Revolving Commitment and
      (B) such Lender’s Term B Commitment divided by (ii) the sum of
      (A) the combined Revolving Commitments of all Lenders and (B) the
      combined Term B Commitments of all Lenders (or, if all Term B
      Commitments have been terminated, (i) the sum of (A) such Lender’s
      Revolving Commitment and (B) the Effective Amount of such Lender’s
      Term B Loans divided by (ii) the sum of (A) the combined
      Revolving Commitments of all Lenders and (B) the Effective Amount of all
      Term B Loans; or, if all Revolving Commitments and Term B Commitments
      have been terminated, (i) the sum of (A) the Effective Amount of such
      Lender’s Revolving Loans and Term B Loans, (B) such Lender’s
pro rata
      share, if any, of
      the Effective Amount of all L/C Obligations, and (C) such Lender’s
pro rata
      share, if any, of
      the Effective Amount of all Swingline Loans divided by (ii) the sum of
      (A) the Effective Amount of all Revolving Loans and Term B Loans,
      (B) the Effective Amount of all L/C Obligations and (C) the Effective
      Amount of all Swingline Loans).

     

    “Put
      Obligations”
mean
      obligations
      of Holdings either directly or indirectly to purchase from any Person such
      Person’s equity interest in Non-Wholly-Owned Subsidiaries or such Person’s
      equity interest in Persons in which Holdings has a Minority
      Investment.

      
        
          
          

        

        
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    “Reimbursement
      Date”
has
      the meaning
      specified in Section 3.03(b).

     

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

     

    “Reportable
      Event”
means
      any of the
      events set forth in section 4043(c) of ERISA or the regulations thereunder,
      other than any such event for which the 30-day notice requirement under ERISA
      has been waived in regulations issued by the PBGC.

     

    “Requirement
      of
      Law”
means,
      as to any
      Person, any law (statutory or common), treaty, rule or regulation or
      determination of an arbitrator or of a Governmental Authority, in each case
      applicable to or binding upon the Person or any of its property or to which
      the
      Person or any of its property is subject.

     

    “Responsible
      Officer”
means
      as to any
      Person, the chief executive officer or the president of such Person, or any
      other officer having substantially the same authority and responsibility; or,
      with respect to compliance with financial covenants, the chief financial officer
      or the treasurer of such Person, or any other officer having substantially
      the
      same authority and responsibility.

     

    “Revolving
      Commitment”
means,
      as to each
      Revolving Lender, its obligation to (a) make Revolving Loans to Holdings
      pursuant to Section 2.01(b),
      (b) purchase
      participations in L/C Obligations, and (c) purchase participations in
      Swingline Loans, in an aggregate principal amount at any one time outstanding
      not to exceed the amount set forth opposite such Revolving Lender’s name on
Schedule 2.01(b)
      or in the
      Assignment and Assumption pursuant to which such Revolving Lender becomes a
      party hereto, as applicable, as such amount may be adjusted from time to time
      in
      accordance with this Agreement.

     

    “Revolving
      Lender”
means
      any Lender
      that has a Revolving Commitment as set forth on Schedule 2.01(b)
      (or, if the
      Revolving Commitments are terminated, any Lender having outstanding Revolving
      Loans or a pro rata
      share of L/C
      Obligations or Swingline Loans as provided herein).

     

    “Revolving
      Loan”
has
      the meaning
      specified in Section 2.01(b).

     

    “Revolving
      Loan
      Maturity Date”
means
      the earlier
      to occur of: (i) November __, 2011; and (ii) the date on which
      the Revolving Commitments terminate in accordance with the provisions of this
      Agreement.

     

    “Revolving
      Note”
means
      a
      promissory note executed by Holdings in favor of a Revolving Lender pursuant
      to
Section 2.02(b),
      in substantially
      the form of Exhibit
      F-1.

     

    “Revolving
      Proportionate Share”
has
      the meaning
      specified in the definition of “Proportionate Share.”

     

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

      
        
          
          

        

        
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    “Securities
      Laws”
means
      the
      Securities Act of 1933, the Securities Exchange Act of 1934, the Sarbanes-Oxley
      Act of 2002, and the applicable accounting and auditing principles, rules,
      standards and practices promulgated, approved or incorporated by the SEC or
      the
      PCAOB.

     

    “Security
      Agreement”
means
      that
      certain Third Amended and Restated Security Agreement, dated as of the Effective
      Date, among Holdings, the Guarantors and the Administrative Agent for the
      benefit of the Lenders and the other Secured Parties (as defined in the Security
      Agreement) in substantially the form of Exhibit I.

     

    “Specified
      Swap
      Contract”
means
      any Swap
      Contract made or entered into at any time, or in effect at any time (whether
      heretofore or hereafter), whether directly or indirectly, and whether as a
      result of assignment or transfer or otherwise, between Holdings and any Swap
      Provider which Swap Contract is or was intended by Holdings to have been entered
      into for purposes of mitigating interest rate or currency exchange risk relating
      to any Loan (which intent shall conclusively be deemed to exist if Holdings
      so
      represents to the Swap Provider in writing), and as to which the final scheduled
      payment by Holdings is not later than the Term B Loan Maturity
      Date.

     

    “Standby
      Letter
      of Credit”
means
      a standby
      Letter of Credit issued for the account of Holdings to support obligations
      of
      Holdings or any Subsidiary, contingent or otherwise (and excluding all
      Commercial Letters of Credit).

     

    “Stock
      Price
      Guaranty”
means
      a guaranty
      that (i) is issued by Holdings or an Affiliate of Holdings in connection
      with the Acquisition of another Person, and (ii) is for the payment of cash
      or issuance of Holdings’ common stock if the common stock issued by Holdings in
      connection with such an Acquisition is sold for less than the price provided
      for
      in the guaranty during its term, provided
      that for purposes
      of determining the amount of any Stock Price Guaranty at any time, the amount
      of
      such guaranty shall be equal to (a) the guaranteed stock price multiplied
      by the number of shares covered by the guaranty, minus
      (b) the
      current fair market value of one share of Holdings’ common stock (which fair
      market value shall be equal to the five day trailing average closing price
      for
      Holdings’ common stock as reported by the Nasdaq National Stock Market)
      multiplied by the number of shares covered by the guaranty, provided further,
      that for purposes
      of determining the amount of any Stock Price Guaranty which is payable solely
      in
      common stock of Holdings, the amount of such Stock Price Guaranty shall equal
      zero.

     

    “Subordinated
      Debt Documents”
means
      any
      documents and instruments evidencing any Permitted Subordinated
      Debt.

     

    “Subsequent
      Effective Date”
means
      any date on
      which all conditions precedent set forth in Section 5.02
      are satisfied or
      waived by the respective Additional Lenders; provided
      that all such
      dates shall occur (if any shall occur) prior to the earlier to occur of
      (i) (A) in the case of any Subsequent Effective Date in respect of any
      increase in the Term B Loans pursuant to Section 2.01(c),
      the Term B
      Loan Maturity Date and (B) in the case of any Subsequent Effective Date in
      respect of any increase in the Revolving Commitments pursuant to Section 2.01(d),
      the Revolving
      Loan Maturity Date, and (ii) the date on which all Commitments terminate in
      accordance with the provisions of this Agreement.

      
        
          
          

        

        
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    “Subsidiary”
of
      a Person means
      any corporation, association, partnership, limited liability company, joint
      venture or other business entity of which more than 50% of the voting stock,
      membership interests or other equity interests, is owned or controlled directly
      or indirectly by the Person, or one or more of the Subsidiaries of the Person,
      or a combination thereof. Unless the context otherwise clearly requires,
      references herein to a “Subsidiary” refer to a Subsidiary of Holdings;
provided,
however,
      that BMC
      Insurance, Inc. shall only be included as a Subsidiary for purposes of
Sections 6.01,
6.05,
6.06,
6.10,
6.11,
6.14,
6.19,
7.03(b),
7.03(c),
7.04,
7.07,
7.08,
7.10,
8.03,
8.06,
8.07,
8.19,
9.01(b)-(g),
9.01(i)
      and 9.01(j).

     

    “Surety
      Instruments”
means
      all letters
      of credit (including standby and commercial), banker’s acceptances, bank
      guaranties, shipside bonds, surety bonds and similar instruments.

     

    “Swap
      Contract”
means
      any
      agreement, whether or not in writing, relating to any transaction that is a
      rate
      swap, basis swap, forward rate transaction, commodity swap, commodity option,
      equity or equity index swap or option, bond, note or bill option, interest
      rate
      option, forward foreign exchange transaction, cap, collar or floor transaction,
      currency swap, cross-currency rate swap, swaption, currency option or any other,
      similar transaction (including any option to enter into any of the foregoing)
      or
      any combination of the foregoing, and, unless the context otherwise clearly
      requires, any master agreement relating to or governing any or all of the
      foregoing.

     

    “Swap
      Provider”
means
      any Lender,
      or any Affiliate of any Lender, that is at the time of determination party
      to a
      Specified Swap Contract with Holdings.

     

    “Swap
      Termination
      Value”
means,
      in respect
      of any one or more Swap Contracts, after taking into account the effect of
      any
      legally enforceable netting agreement relating to such Swap Contracts,
      (i) for any date on or after the date such Swap Contracts have been closed
      out and termination value(s) determined in accordance therewith, such
      termination value(s), and (ii) for any date prior to the date referenced in
      clause (i) the amount(s) determined as the mark-to-market value(s) for such
      Swap Contracts, as determined by Holdings based upon one or more mid-market
      or
      other readily available quotations provided by any recognized dealer in such
      Swap Contracts (which may include any Lender).

     

    “Swingline
      Lender”
means
      Wells
      Fargo, in its capacity as maker of Swingline Loans hereunder. 

     

    “Swingline
      Commitment”
has
      the meaning
      specified in Section 2.06(a).

     

    “Swingline
      Loan”
has
      the meaning
      specified in Section 2.06(a).

     

    “Taxes”
means
      all present
      or future taxes, levies, imposts, duties, deductions, withholdings, assessments,
      fees or other charges imposed by any Governmental Authority, including any
      interest, additions to tax or penalties applicable thereto.

     

    “Term B
      Commitment,”
as
      to each
      Term B Lender, means
      such
      Term B Lender’s obligation to make or otherwise hold Term B Loans
      hereunder in
      the amounts set
      forth on a schedule maintained with the Administrative Agent.

      
        
          
          

        

        
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    “Term B
      Lender”
means
      any Lender
      that either has a Term B Commitment or a Term B Loan.

     

    “Term B
      Loan”
shall
      mean each
      term loan made under Section 2.01,
      and shall include
      each Existing Term B Loan, New Term B Loan and Additional Term B
      Loan.

     

    “Term B
      Loan
      Maturity Date”
means
      November
      __, 2013.

     

    “Term B
      Note”
means
      a
      promissory note executed by Holdings in favor of a Lender pursuant to
Section 2.02(b),
      in substantially
      the form of Exhibit
      F-2.

     

    “Term B
      Proportionate Share”
has
      the meaning
      specified in the definition of “Proportionate Share”.

     

    “Total
      EBITDA
      Ratio”
means,
      as of the
      end of any fiscal quarter, measured on a consolidated basis for Holdings and
      its
      Subsidiaries as of such date, the ratio of (i) Total Funded Debt existing
      on such date to (ii) EBITDA for the period of four fiscal quarters ending
      on such date.

     

    “Total
      Funded
      Debt”
means,
      as of any
      date of determination, all Funded Debt of Holdings and its Subsidiaries on
      such
      date, on a consolidated basis in accordance with GAAP.

     

    “Trade
      Bank”
means
      Wells Fargo
      HSBC Trade Bank, N.A.

     

    “Type”
has
      the meaning
      specified in the definition of “Loan.”

     

    “UCC”
means
      the Uniform
      Commercial Code as in effect from time to time in the State of
      California.

     

    “Unfunded
      Pension
      Liability”
means
      the excess
      of a Plan’s benefit liabilities under section 4001(a)(16) of ERISA, over
      the current value of that Plan’s assets, determined in accordance with the
      assumptions used for funding the Pension Plan pursuant to section 412 of
      the Code for the applicable plan year.

     

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

     

    “Update
      Certificate”
means
      a
      certificate in substantially the form of Exhibit
      J.

     

    “U.S.
      Subsidiary”
and
“U.S.
      Wholly-Owned Subsidiary”
means
      a
      Subsidiary or Wholly-Owned Subsidiary, as the case may be, that is located
      in
      and a resident of the United States.

     

    “Wells
      Fargo”
has
      the meaning
      specified in the preamble,
      or any successor
      by merger thereto.

     

    “Wholly-Owned
      Subsidiary”
means
      any Person
      in which (other than directors’ qualifying shares required by law) 100% of the
      capital stock or similar equity interest of each class having ordinary voting
      power, and 100% of the capital stock or similar equity interest of

      
        
          
          

        

        
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    every
      other class,
      in each case, at the time as of which any determination is being made, is owned,
      beneficially and of record, by Holdings, or by one or more of the other
      Wholly-Owned Subsidiaries, or both.

     

    1.02 Other
      Interpretive Provisions.

     

    (a) The
      definitions of
      terms herein shall apply equally to the singular and plural forms of the terms
      defined. Whenever the context may require, any pronoun shall include the
      corresponding masculine, feminine and neuter forms. The words “include,”
“includes”
and
“including”
shall
      be deemed
      to be followed by the phrase “without limitation.” The word “will”
shall
      be
      construed to have the same meaning and effect as the word “shall.”
Unless
      the
      context requires otherwise, (i) any definition of or reference to any
      agreement, instrument or other document (including any Organization Document)
      shall be construed as referring to such agreement, instrument or other document
      as from time to time amended, supplemented or otherwise modified (subject to
      any
      restrictions on such amendments, supplements or modifications set forth herein
      or in any other Loan Document), (ii) any reference herein to any Person
      shall be construed to include such Person’s successors and assigns,
      (iii) the words “herein,”
“hereof”
and
“hereunder,”
and
      words of
      similar import when used in any Loan Document, shall be construed to refer
      to
      such Loan Document in its entirety and not to any particular provision thereof,
      (iv) all references in a Loan Document to Articles, Sections, Exhibits and
      Schedules shall be construed to refer to Articles and Sections of, and Exhibits
      and Schedules to, the Loan Document in which such references appear,
      (v) any reference to any law shall include all statutory and regulatory
      provisions consolidating, amending, replacing or interpreting such law and
      any
      reference to any law or regulation shall, unless otherwise specified, refer
      to
      such law or regulation as amended, modified or supplemented from time to time,
      (vi) the words “asset”
and
“property”
shall
      be
      construed to have the same meaning and effect and to refer to any and all
      tangible and intangible assets and properties, including cash, securities,
      accounts and contract rights, and (vii) the term “documents” includes any
      and all instruments, documents, agreements, certificates, indentures, notices
      and other writings, however evidenced.

     

    (b) In
      the computation
      of periods of time from a specified date to a later specified date, the word
      “from” means “from and including”; the words “to” and “until” each mean “to but
      excluding,” and the word “through” means “to and including.”

     

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

     

    (d) This
      Agreement and
      other Loan Documents may use several different limitations, tests or
      measurements to regulate the same or similar matters. All such limitations,
      tests and measurements are cumulative and shall each be performed in accordance
      with their terms. Unless otherwise expressly provided, any reference to any
      action of the Administrative Agent or the Lenders by way of consent, approval
      or
      waiver shall be deemed modified by the phrase “in its/their sole
      discretion.”

     

    (e) This
      Agreement and
      the other Loan Documents are the result of negotiations among the Administrative
      Agent, Holdings, the Company and the other parties, have been reviewed by
      counsel to the Administrative Agent, Holdings, the Company and such

      
        
          
          

        

        
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    other
      parties, and
      are the products of all parties. Accordingly, they shall not be construed
      against the Lenders or the Administrative Agent merely because of the
      Administrative Agent’s or Lenders’ involvement in their
      preparation.

     

    1.03 Accounting
      Principles.
i)
      Unless the context
      otherwise clearly requires, all accounting terms not expressly defined herein
      shall be construed, and all financial computations required under this Agreement
      shall be made, in accordance with GAAP, consistently applied; provided,
however,
      that if GAAP
      shall have been modified after the Effective Date and the application of such
      modified GAAP shall have a material effect on such financial computations
      (including the computations required for the purpose of determining compliance
      with the covenants set forth in Article
      VIII),
      then such
      computations shall be made and such financial statements, certificates and
      reports shall be prepared, and all accounting terms not otherwise defined herein
      shall be construed, in accordance with GAAP as in effect prior to such
      modification, unless and until the Majority Lenders and Holdings shall have
      agreed upon the terms of the application of such modified GAAP.

     

    (b) References
      herein
      to “fiscal year” and “fiscal quarter” refer to such fiscal periods of
      Holdings.

     

    ARTICLE
      II.

     

    THE
      CREDITS

     

    2.01 Amounts
      and
      Terms of Commitments and Loans.

     

    (a) The
      Term B
      Credit.

     

    (i) The
      Existing
      Term B Loans.
      Holdings and each
      other Loan Party hereby acknowledge and agree that pursuant to the Existing
      Credit Agreement, certain Existing Lenders provided to Holdings Term B Loans
      (each such loan, an “Existing
      Term B Loan”)
      in the aggregate
      principal amount of $125,000,000, of which $120,937,500 is outstanding on the
      date hereof. On the Effective Date, the amount of Existing Term B Loans
      then outstanding and held by each Term B Lender (which for purposes of this
Section 2.01(a)(i)
      shall include each
      Departing Term B Lender) shall be adjusted to reflect the changes in the
      Term B Lenders’ Term B Proportionate Shares of the aggregate
      outstanding Term B Loans, subject to Section 4.04.
      Each Term B
      Lender having Existing Term B Loans then outstanding and whose Term B
      Proportionate Share in respect of the aggregate outstanding Term B Loans
      has been decreased on the Effective Date shall be deemed to have assigned on
      the
      Effective Date to each Term B Lender increasing its Term B
      Proportionate Share of the aggregate outstanding Term B Loans on the
      Effective Date (which for purposes of this Section 2.01(a)(i)
      shall include each
      New Term B Lender) such portion of such Existing Term B Loans as shall
      be necessary to effectuate such adjustment (such assignment to be deemed made
      upon the terms and conditions set forth in an Assignment and Assumption in
      the
      form attached hereto as Exhibit E as if such assignor and such assignee(s)
      shall
      have entered into such Assignment and Assumption in respect of the Existing
      Term B Loans so assigned). Each Term B Lender increasing its
      Term B Proportionate Share of the aggregate outstanding Existing
      Term B Loans on the Effective Date shall (i) be deemed to have assumed
      such portion of such Existing Term B Loans and (ii) fund on

      
        
          
          

        

        
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    the
      Effective Date
      such assumed amounts to the Administrative Agent for the account of the
      assigning Term B Lender in accordance with the provisions hereof in the
      amount notified to such increasing Term B Lender by the Administrative
      Agent. For purposes of this Section 2.01(a)(i),
      each Departing
      Term B Lender shall be deemed to have reduced its Term B Proportionate
      Share to zero on the Effective Date. From and after the Effective Date, after
      giving effect to the assignments and assumptions contemplated in this
Section 2.01(a)(i),
      each Departing
      Term B Lender shall cease to be a Term B Lender under and for all
      purposes of this Agreement and the other Loan Documents and shall have no
      further obligation to make Term B Loans; provided,
however,
      that each
      Departing Term B Lender shall continue to be entitled to the benefits of
Sections 4.01,
4.03,
4.04
      and 11.04
      to the extent
      accrued or arising on or prior to the Effective Date. With effect on and after
      the Effective Date, each New Term B Lender shall be a party to this
      Agreement and succeed to all of the rights and be obligated to perform all
      of
      the obligations of a Term B Lender under this Agreement, including the
      requirements concerning confidentiality and the payment of indemnification,
      with
      Term B Loans in the amounts set forth on a schedule maintained with the
      Administrative Agent. Each New Term B Lender agrees that it will perform in
      accordance with their terms all of the obligations which by the terms of this
      Agreement are required to be performed by it as a Term B Lender. Amounts
      that have been borrowed as Existing Term B Loans which are repaid or
      prepaid may not be reborrowed, subject, however, to the provisions of
Section
      2.01(c).

     

    (ii) The
      New
      Term B Loans.
      On the terms and
      subject to the conditions of this Agreement, each Term B Lender severally
      agrees to make an additional term loan (each a “New
      Term B
      Loan”
and,
      collectively, the “New
      Term B
      Loans”)
      to Holdings on
      the Effective Date denominated in Dollars, in a principal amount up to but
      not
      exceeding, when added to the principal amount of such Term B Lender’s
      Existing Term B Loans after giving effect to the operation of Section 2.01(a)(i)
      above, such
      Term B Lender’s Term B Commitment. Any amount of the New Term B
      Loans repaid or prepaid may not be reborrowed, subject, however, to the
      provisions of Section 2.01(c).

     

    (b) The
      Revolving
      Credit.
      On the terms and
      subject to the conditions of this Agreement, each Revolving Lender severally
      agrees to advance to Holdings from time to time during the period beginning
      on
      the Effective Date and ending on the Revolving Loan Maturity Date such loans
      (each such loan, a “Revolving
      Loan”)
      in Dollars as
      Holdings may request under this Section 2.01(b);
provided,
however,
      that
      (i) after giving effect to any Borrowing of Revolving Loans, (A) the
      Effective Amount of all Revolving Loans and Swingline Loans and the Effective
      Amount of all L/C Obligations shall not exceed the combined Revolving
      Commitments of the Revolving Lenders and (B) the Effective Amount of the
      Revolving Loans of any Revolving Lender plus the participation of such Revolving
      Lender in the Effective Amount of all L/C Obligations and in the Effective
      Amount of all Swingline Loans shall not at any time exceed such Revolving
      Lender’s Revolving Commitment. Within the limits of each Revolving Lender’s
      Revolving Commitment, and subject to the other terms and conditions hereof,
      Holdings may borrow under this Section 2.01(b),
      prepay under
Section 2.07
      and reborrow under
      this Section 2.01(b).
      On the Effective
      Date, the amount of Revolving Loans then outstanding and held by each Revolving
      Lender (which for purposes of this Section 2.01(b)
      shall include each
      Departing Revolving Lender) shall be adjusted to reflect the changes in the
      Revolving Lenders’ Revolving Proportionate Shares, subject to Section 4.04.
      Each Revolving
      Lender having Revolving Loans, or participations in L/C Obligations or Swingline
      Loans, then

      
        
          
          

        

        
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    outstanding
      and
      whose Revolving Proportionate Share has been decreased on the Effective Date
      shall be deemed to have assigned on the Effective Date to each Revolving Lender
      increasing its Revolving Proportionate Share on the Effective Date (which for
      purposes of this Section 2.01(b)
      shall include each
      New Revolving Lender) such portion of such Revolving Loans and participations
      as
      shall be necessary to effectuate such adjustment (such assignment to be deemed
      made upon the terms and conditions set forth in an Assignment and Assumption
      in
      the form attached hereto as Exhibit E as if such assignor and such assignee(s)
      shall have entered into such Assignment and Assumption in respect of the
      Revolving Loans and participations so assigned). Each Revolving Lender
      increasing its Revolving Proportionate Share on the Effective Date shall
      (i) be deemed to have assumed such portion of such Revolving Loans and
      participations and (ii) fund on the Effective Date such assumed amounts to
      the Administrative Agent for the account of the assigning Revolving Lender
      in
      accordance with the provisions hereof in the amount notified to such increasing
      Revolving Lender by the Administrative Agent. For purposes of this Section 2.01(b),
      each Departing
      Revolving Lender shall be deemed to have reduced its Revolving Proportionate
      Share to zero on the Effective Date. From and after the Effective Date, after
      giving effect to the assignments and assumptions contemplated in this
Section 2.01(b),
      each Departing
      Revolving Lender shall cease to be a “Revolving Lender” under and for all
      purposes of this Agreement and the other Loan Documents and shall have no
      further obligation to make Revolving Loans or participate in Letters of Credit
      or Swingline Loans; provided,
however,
      that each
      Departing Revolving Lender shall continue to be entitled to the benefits of
      Sections 4.01,
4.03,
4.04
      and 11.04
      to the extent
      accrued or arising on or prior to the Effective Date. With effect on and after
      the Effective Date, each New Revolving Lender shall be a party to this Agreement
      and succeed to all of the rights and be obligated to perform all of the
      obligations of a Revolving Lender under this Agreement, including the
      requirements concerning confidentiality and the payment of indemnification,
      with
      a Revolving Commitment in the amounts set forth on Schedule 2.01(b).
      Each New
      Revolving Lender agrees that it will perform in accordance with their terms
      all
      of the obligations which by the terms of this Agreement are required to be
      performed by it as a Revolving Lender.

     

    (c) Additional
      Term B Loans.
      Upon Holding’s
      written notice to the Administrative Agent, on any Subsequent Effective Date,
      one or more Additional Lenders may, in their sole and absolute discretion,
      become parties to this Agreement (to the extent not already a party to this
      Agreement) for the purpose of making additional Term B Loans in an amount
      in excess of $50,000,000, provided
      that the aggregate
      amount of such additional Term B Loans shall not exceed the difference of
      (A) $250,000,000 minus
      (B) the total
      of (x) the amount (if any) by which the aggregate outstanding principal
      amount of the Term B Loans has been increased on all Subsequent Effective
      Dates that shall have occurred prior to the relevant Subsequent Effective Date
      pursuant to this Section 2.01(b) plus
      (y) the
      amount (if any) by which the Aggregate Revolving Commitment has been increased
      on all Subsequent Effective Dates that shall have occurred prior to, or
      simultaneous with, the relevant Subsequent Effective Date pursuant to
Section 2.01(f)
      (each such
      additional commitment of the Additional Lenders to make additional Term B
      Loans, an “Additional
      Term B Commitment”).
      On the
      applicable Subsequent Effective Date, each Additional Lender holding an
      Additional Term B Commitment shall make a new single loan denominated in
      Dollars to Holdings in the amount of such Additional Lender’s Additional
      Term B Commitment (each such loan, an “Additional
      Term B Loan”)
      upon the terms
      and subject to the conditions contained herein, as such terms and conditions
      may
      be amended pursuant to Section 11.01
      hereof, and any
      such Additional Lenders not already party to this

      
        
          
          

        

        
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    Agreement
      shall
      become parties to this Agreement by executing a counterpart signature page
      to
      this Agreement and shall be treated as a Term B Lender for all purposes of
      this Agreement from and after the relevant Subsequent Effective Date. Once
      the
      Additional Term B Loans shall have been made pursuant to this Agreement,
      (i) the schedule of Term B Loans maintained by the Administrative
      Agent shall be deemed to have been amended to include all Additional Lenders
      holding an Additional Term B Loan together with each such Additional
      Lender’s respective Term B Proportionate Share, (ii) the schedule of
      Term B Loans maintained by the Administrative Agent shall be deemed to have
      been amended to adjust the Term B Proportionate Share of all other
      Term B Lenders party hereto, and (iii) Schedule
      2.09(b)
      hereto shall be
      deemed to have been amended to include the Additional Term B Loans in the
      then applicable Term B Loan amortization schedule based upon the
      percentages set forth therein. The Additional Term B Loans of the
      Additional Lenders shall be deemed to be Term B Loans of such Term B
      Lenders under this Agreement and the other Loan Documents for all
      purposes.

     

    (d) Additional
      Revolving Commitments.
      Upon Holding’s
      written notice to the Administrative Agent, on any Subsequent Effective Date
      one
      or more Additional Lenders may, in their sole and absolute discretion, provide
      additional Revolving Commitments in an amount in excess of $50,000,000,
provided
      that the aggregate
      amount of such additional Revolving Commitments shall not exceed the difference
      of (A) $250,000,000 minus
      (B) the total
      of (x) the amount (if any) by which the Aggregate Revolving Commitment has
      been increased on all Subsequent Effective Dates that shall have occurred prior
      to the relevant Subsequent Effective Date pursuant to this Section 2.01(d) plus
      (y) the
      amount (if any) by which the aggregate outstanding principal amount of the
      Term B Loans has been increased on all Subsequent Effective Dates that
      shall have occurred prior to, or simultaneous with, the relevant Subsequent
      Effective Date pursuant to Section 2.01(b)
      (each such
      additional commitment, an “Additional
      Revolving Commitment”),
      which
      Additional Revolving Commitment may thereafter be made available to Holdings
      as
      Revolving Loans, Swingline Loans and Letters of Credit (subject to the Swingline
      Commitment and L/C Commitment). Any Additional Lender not already party to
      this
      Agreement shall become a party to this Agreement by executing a counterpart
      signature page to this Agreement and shall be treated as a Revolving Lender
      for
      all purposes of this Agreement from and after the Subsequent Effective Date.
      Once such Additional Revolving Commitments shall be deemed to have been made
      available pursuant to this Agreement, (i) Schedule 2.01(b)
      hereto shall be
      deemed to have been amended to include all Additional Lenders holding an
      Additional Revolving Commitment together with such Additional Lender’s
      respective Revolving Commitment and Revolving Proportionate Share,
      (ii) Schedule 2.01(b)
      hereto shall be
      deemed to have been amended to adjust the Revolving Proportionate Share of
      all
      other Revolving Lenders party hereto, and (iii) the definition of
“Aggregate Revolving Commitment” shall be deemed to have been amended to include
      the Additional Revolving Commitments provided by such Additional Lenders on
      the
      relevant Subsequent Effective Date. To effect the foregoing, on the Subsequent
      Effective Date, the amount of Revolving Loans then outstanding and held by
      each
      Revolving Lender shall be adjusted to reflect the changes in the Revolving
      Lenders’ Revolving Proportionate Shares, subject to Section 4.04.
      Each Revolving
      Lender having Revolving Loans, or participations in L/C Obligations or Swingline
      Loans, then outstanding and whose Revolving Proportionate Share has been
      decreased on the Subsequent Effective Date shall be deemed to have assigned
      on
      the Subsequent Effective Date to each Revolving Lender increasing its Revolving
      Proportionate Share on the Subsequent Effective Date such portion of such
      Revolving Loans and participations

      
        
          
          

        

        
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    as
      shall be necessary to effectuate such adjustment (such assignment to be deemed
      made upon the terms and conditions set forth in an Assignment and Assumption
      in
      the form attached hereto as Exhibit E as if such assignor and such assignee(s)
      shall have entered into such Assignment and Acceptance in respect of the
      Revolving Loans and participations so assigned). Each Revolving Lender
      increasing its Revolving Proportionate Share on the Subsequent Effective Date
      shall (i) be deemed to have assumed such portion of such Revolving Loans
      and participations and (ii) fund on the Subsequent Effective Date such
      assumed amounts to the Administrative Agent for the account of the assigning
      Revolving Lender in accordance with the provisions hereof in the amount notified
      to such increasing Revolving Lender by the Administrative Agent. On and after
      each Subsequent Effective Date, after giving effect to any Borrowing of
      Revolving Loans, (i) the Effective Amount of all Revolving Loans and
      Swingline Loans and the Effective Amount of all L/C Obligations shall not exceed
      the combined Revolving Commitments (inclusive of the Additional Revolving
      Commitments) of the Revolving Lenders; and (ii) the Effective Amount of the
      Revolving Loans of any Revolving Lender plus
      the participation
      of such Revolving Lender in the Effective Amount of all L/C Obligations and
      in
      the Effective Amount of all Swingline Loans shall not at any time exceed such
      Revolving Lender’s Revolving Commitment (inclusive of its Additional Revolving
      Commitment, if any). On and after the Subsequent Effective Date, each Additional
      Lender holding an Additional Revolving Commitment shall be a Revolving Lender
      under this Agreement and the other Loan Documents for all purposes with a
      Revolving Commitment and a Revolving Proportionate Share as set forth on
Schedule 2.01(b),
      as deemed amended
      in clause (i) above, with the rights, duties and obligations of a Revolving
      Lender under this Agreement and the other Loan Documents.

     

    2.02 Loan
      Accounts.
ii)
      The Loans made by
      each Lender and the Letters of Credit Issued by the L/C Issuer shall be
      evidenced by one or more accounts or records maintained by such Lender or L/C
      Issuer, as the case may be, in the ordinary course of business. The accounts
      or
      records maintained by the Administrative Agent, the L/C Issuer and each Lender
      shall be conclusive absent manifest error of the amount of the Loans made by
      the
      Lenders to Holdings and the Letters of Credit Issued for the account of
      Holdings, and the interest and payments thereon. Any failure so to record or
      any
      error in doing so shall not, however, limit or otherwise affect the obligation
      of Holdings hereunder to pay any amount owing with respect to the Loans or
      any
      Letter of Credit.

     

    (b) Upon
      the request of
      any Lender made through the Administrative Agent, the Loans made by such Lender
      may be evidenced by one or more Notes, instead of or in addition to loan
      accounts. Each such Lender shall endorse on the schedules annexed to its Note(s)
      the date, amount and maturity of each Loan made by it and the amount of each
      payment of principal made by Holdings with respect thereto. Each such Lender
      is
      irrevocably authorized by Holdings to endorse its Note(s), and each Lender’s
      record shall be conclusive absent manifest error; provided,
however,
      that the failure
      of a Lender to make, or an error in making, a notation thereon with respect
      to
      any Loan shall not limit or otherwise affect the obligations of Holdings
      hereunder or under any such Note to such Lender.

     

    2.03 Procedure
      for
      Borrowing.
iii)
      Each Borrowing of
      Revolving Loans and Term B Loans shall be made upon Holdings’ irrevocable
      written notice delivered to the Administrative Agent in the form of a Notice
      of
      Borrowing, which notice must be received by the Administrative Agent
      (i) prior to 9:00 a.m. (San Francisco time) at least three (3)
      Business

      
        
          
          

        

        
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    Days
      prior to the
      requested Borrowing Date, in the case of Offshore Rate Loans, and
      (ii) prior to 9:00 a.m. (San Francisco time) on the requested
      Borrowing Date, in the case of Base Rate Loans, specifying:

     

    (i) the
      amount of the
      Borrowing, which shall be in a Minimum Amount, and whether such Borrowing shall
      be of Term B Loans or Revolving Loans;

     

    (ii) the
      requested
      Borrowing Date, which shall be a Business Day;

     

    (iii) the
      Type of Loans
      comprising the Borrowing; and

     

    (iv) if
      applicable, the
      duration of the Interest Period applicable to such Loans included in such
      notice, subject to the provisions of the definition of “Interest Period” herein.
      If the Notice of Borrowing fails to specify the duration of the Interest Period
      for any Borrowing comprised of Offshore Rate Loans, such Interest Period shall
      be one month;

     

    provided,
however,
      that with respect
      to the Borrowing to be made on the Effective Date and on any Subsequent
      Effective Date, the Notice of Borrowing shall be delivered to the Administrative
      Agent not later than 11:00 a.m. (San Francisco time) one (1) Business Day before
      the Effective Date or Subsequent Effective Date, as the case may
      be.

     

    (b) The
      Administrative
      Agent will promptly notify each Revolving Lender or Term B Lender, as
      applicable, of its receipt of any Notice of Borrowing and of the amount of
      such
      Lender’s Proportionate Share of that Borrowing.

     

    (c) Each
      Lender will
      make the amount of its Proportionate Share of each Borrowing available to the
      Administrative Agent for the account of Holdings at the Administrative Agent’s
      Payment Office by 11:00 a.m. (San Francisco time) on the Borrowing Date
      requested by Holdings in funds immediately available to the Administrative
      Agent. The proceeds of each such Borrowing will then be made available to
      Holdings by the Administrative Agent at such office by crediting the account
      of
      Holdings on the books of Wells Fargo with the aggregate of the amounts made
      available to the Administrative Agent by the Lenders and in like funds as
      received by the Administrative Agent, or if requested by Holdings, by wire
      transfer in accordance with written instructions provided to the Administrative
      Agent by Holdings of such funds as received by the Administrative Agent, unless
      on the date of the Borrowing all or any portion of the proceeds thereof shall
      then be required to be applied to the repayment of any outstanding Loans or
      L/C
      Obligations, in which case such proceeds or portion thereof shall be applied
      to
      the payment of such Loans or L/C Obligations.

     

    (d) After
      giving effect
      to any Borrowing, unless the Administrative Agent shall otherwise consent,
      there
      may not be more than eight different Interest Periods in effect.

      
        
          
          

        

        
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    2.04 Conversion
      and
      Continuation Elections.
iv)
      Holdings may, upon
      irrevocable written notice to the Administrative Agent in accordance with
Section 2.04(b):

     

    (i) elect,
      as of any
      Business Day, in the case of Base Rate Loans, or as of the last day of the
      applicable Interest Period, in the case of any Offshore Rate Loans, to convert
      any such Loans (or any part thereof in a Minimum Amount) into Loans of any
      other
      Type; or

     

    (ii) elect,
      as of the
      last day of the applicable Interest Period, to continue any Offshore Rate Loans
      having Interest Periods expiring on such day (or any part thereof in a Minimum
      Amount);

     

    provided
      that if at any
      time the aggregate amount of Offshore Rate Loans in respect of any Borrowing
      is
      reduced, by payment, prepayment, or conversion of part thereof to be less than
      $5,000,000, such Offshore Rate Loans shall automatically convert into Base
      Rate
      Loans, and on and after such date the right of Holdings to continue such Loans
      as, and convert such Loans into, Offshore Rate Loans, shall
      terminate.

     

    (b) Holdings
      shall
      deliver a Notice of Conversion/Continuation to be received by the Administrative
      Agent (i) not later than 9:00 a.m. (San Francisco time) at least three (3)
      Business Days in advance of the Conversion/Continuation Date, if the Loans
      are
      to be converted into or continued as Offshore Rate Loans, and (ii) prior to
      9:00 a.m. (San Francisco time) on the Conversion/Continuation Date, if the
      Loans
      are to be converted into Base Rate Loans, specifying:

     

    (i) the
      proposed
      Conversion/Continuation Date;

     

    (ii) the
      aggregate
      amount of Loans to be converted or continued;

     

    (iii) the
      Type of Loans
      resulting from the proposed conversion or continuation; 

     

    (iv) other
      than in the
      case of conversions into Base Rate Loans, the duration of the requested Interest
      Period, subject to the provisions of the definition of “Interest Period” herein;
      and

     

    (v) whether
      such
      conversion or continuation shall be of Term B Loans or Revolving Loans.

     

    (c) If
      upon the
      expiration of any Interest Period applicable to Offshore Rate Loans, Holdings
      has failed to select timely a new Interest Period to be applicable to such
      Offshore Rate Loans, or if any Default then exists, Holdings shall be deemed
      to
      have elected to convert such Offshore Rate Loans into Base Rate Loans effective
      as of the expiration date of such Interest Period.

     

    (d) The
      Administrative
      Agent will promptly notify each Term B Lender and Revolving Lender, as
      applicable, of its receipt of a Notice of

      
        
          
          

        

        
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    Conversion/Continuation,
      or, if no timely notice is provided by Holdings, the Administrative Agent will
      promptly notify each applicable Lender of the details of any automatic
      conversion. All conversions and continuations shall be made ratably according
      to
      the respective outstanding principal amounts of the Loans with respect to which
      the notice was given held by each Lender.

     

    (e) Unless
      the Majority
      Lenders otherwise consent, during the existence of an Event of Default, Holdings
      may not elect to have a Loan converted into or continued as an Offshore Rate
      Loan.

     

    (f) After
      giving effect
      to any conversion or continuation of Loans, unless the Administrative Agent
      shall otherwise consent, there may not be more than eight (8) different Interest
      Periods in effect.

     

    2.05 Voluntary
      Termination or Reduction of Commitments.
v)
      Holdings may, upon
      not less than three (3) Business Days’ prior written notice to the
      Administrative Agent, terminate the Revolving Commitments, or permanently reduce
      the Revolving Commitments, provided
      that the aggregate
      amount of any partial reduction is in a Minimum Amount; unless, after giving
      effect thereto and to any prepayments of any Loans made on the effective date
      thereof, (i) the Effective Amount of all Revolving Loans, Swingline Loans
      and L/C Obligations together would exceed the combined Revolving Commitments
      of
      the Revolving Lenders then in effect, or (ii) the Effective Amount of all
      L/C Obligations would exceed the L/C Commitment then in effect. Once reduced
      in
      accordance with this Section 2.05,
      the Revolving
      Commitments may not be increased (except pursuant to Section 2.01(f)).
      Any reduction of
      the Revolving Commitments shall be applied to each Revolving Lender according
      to
      its Revolving Proportionate Share. If and to the extent specified by Holdings
      in
      the notice to the Administrative Agent, some or all of the reduction in the
      Revolving Commitments shall be applied to reduce the L/C Commitment. All accrued
      commitment and letter of credit fees to, but not including, the effective date
      of any reduction or termination of Revolving Commitments, shall be paid on
      the
      effective date of such reduction or termination.

     

    (b) At
      no time shall
      the Swingline Commitment exceed the combined Revolving Commitments of the
      Revolving Lenders, and any reduction of the Revolving Commitments which reduces
      the combined Revolving Commitments of the Revolving Lenders below the
      then-current amount of the Swingline Commitment shall result in an automatic
      corresponding reduction of the Swingline Commitment to the amount of the
      combined Revolving Commitments of the Revolving Lenders, as so reduced, without
      any action on the part of the Swingline Lender.

     

    2.06 Swingline
      Loans.
vi)
      On the terms and
      subject to the conditions set forth herein, the Swingline Lender agrees to
      make
      a portion of the Revolving Commitment available to Holdings by making swingline
      loans denominated in Dollars (individually, a “Swingline
      Loan”,
      and,
      collectively, the “Swingline
      Loans”)
      to Holdings on
      any Business Day during the period from the Effective Date to the Revolving
      Loan
      Maturity Date in accordance with the procedures set forth in this Section 2.06
      in an aggregate
      principal amount at any one time outstanding not to exceed Thirty Million
      Dollars ($30,000,000), notwithstanding the fact that such Swingline Loans,
      when
      aggregated with any other Revolving Loans made by or Letters of

      
        
          
          

        

        
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    Credit
      participated
      in by the Swingline Lender, may exceed the Swingline Lender’s Revolving
      Commitment (the amount of such commitment of the Swingline Lender to make
      Swingline Loans to Holdings pursuant to this Section 2.06(a),
      as the same shall
      be reduced pursuant to Section 2.05
      or Section 2.08
      or as a result of
      any assignment pursuant to Section 11.08,
      the Swingline
      Lender’s “Swingline
      Commitment”);
provided
      that at no time
      shall (i) the sum of the Effective Amount of all Swingline Loans
plus
      the Effective
      Amount of all Revolving Loans plus
      the Effective
      Amount of all L/C Obligations exceed the combined Revolving Commitments of
      the
      Revolving Lenders, or (ii) the Effective Amount of all Swingline Loans
      exceed the Swingline Commitment. Additionally, no more than three Swingline
      Loans may be outstanding at any one time, and all Swingline Loans shall at
      all
      times accrue interest at the Base Rate plus
      the Applicable
      Margin (for Base Rate Loans) or at such other rate as may be agreed to by the
      Swingline Lender and Holdings. Within the foregoing limits, and subject to
      the
      other terms and conditions hereof, Holdings may borrow under this Section 2.06(a),
      prepay pursuant
      to Section 2.07
      and reborrow
      pursuant to this Section 2.06(a).

     

    (b) Holdings
      shall
      provide the Administrative Agent irrevocable written notice (including notice
      via facsimile confirmed immediately by a telephone call) in the form of a Notice
      of Borrowing of any Swingline Loan requested hereunder (which notice must be
      received by the Administrative Agent prior to 11:00 a.m. (San Francisco time)
      on
      the requested Borrowing Date) specifying (i) the amount to be borrowed,
      which shall be in a Minimum Amount, and (ii) the requested Borrowing Date,
      which shall be a Business Day. Unless the Swingline Lender has received notice
      prior to 11:00 a.m. (San Francisco time) on such Borrowing Date from the
      Administrative Agent (including at the request of any Revolving Lender)
      (A) directing the Swingline Lender not to make the requested Swingline Loan
      as a result of the limitations set forth in the proviso
      set forth in
Section 2.06(a);
      or (B) that
      one or more conditions specified in Article
      V
      are not then satisfied; then,
      subject to the
      terms and conditions hereof, the Swingline Lender will, not later than 12:00
      noon (San Francisco time) on the Borrowing Date specified in such Notice of
      Borrowing, make the amount of its Swingline Loan available to Holdings by
      crediting the account of Holdings on the books of Wells Fargo or if requested
      by
      Holdings, by wire transfer in accordance with written instructions provided
      to
      the Administrative Agent by Holdings. The Administrative Agent will notify
      the
      Revolving Lenders on a quarterly basis if any Swingline Loan Borrowings occurred
      during such quarter.

     

    (c) Holdings
      shall
      repay to the Swingline Lender in full on the Revolving Loan Maturity Date the
      aggregate principal amount of the Swingline Loans outstanding on the Revolving
      Loan Maturity Date.

     

    (d) For
      one (1)
      Business Day during each successive ten (10) Business Day period, the aggregate
      principal amount of Swingline Loans shall be $0 (a “Clean-Up
      Day”);
      Holdings shall
      prepay the outstanding principal amount of the Swingline Loans in whole to
      the
      extent required so that a Clean-Up Day may occur in each such ten (10) Business
      Day period as provided in this Section 2.06(d)
      (which Swingline
      Loans may not be reborrowed until such Clean-Up Day has ended).

      
        
          
          

        

        
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    (e) If:

     

    (i) any
      Swingline Loans
      shall remain outstanding at 9:00 a.m. (San Francisco time) on any day required
      to be a Clean-Up Day (by virtue of there being Swingline Loans outstanding
      for
      ten consecutive Business Days) and by such time on such Business Day the
      Administrative Agent shall have received neither: (A) a Notice of Borrowing
      delivered pursuant to Section 2.03
      requesting that
      Revolving Loans be made pursuant to Section 2.01
      on the Clean-Up
      Day in an amount at least equal to the aggregate principal amount of such
      Swingline Loans; nor (B) any other notice indicating Holdings’ intent to
      repay such Swingline Loans with funds obtained from other sources;
      or

     

    (ii) any
      Swingline Loans
      shall remain outstanding during the existence of an Event of Default and the
      Swingline Lender shall in its sole discretion notify the Administrative Agent
      that the Swingline Lender desires that such Swingline Loans be converted into
      Revolving Loans;

     

    then
      the Administrative
      Agent shall be deemed to have received a Notice of Borrowing from Holdings
      pursuant to Section 2.03
      requesting that
      Revolving Loans consisting of Base Rate Loans be made pursuant to Section 2.01(b)
      on
      such Clean-Up Day (in the case of the circumstances described in clause (i)
      above) or on the first Business Day subsequent to the date of such notice from
      the Swingline Lender (in the case of the circumstances described in
      clause (ii) above) in an amount equal to the aggregate amount of such
      Swingline Loans, the proceeds of which Revolving Loans shall be applied to
      repay
      such Swingline Loans, and the procedures set forth in Section 2.03(b)
      and Section 2.03(c)
      shall be followed
      in making such Revolving Loans; provided,
      that such
      Revolving Loans shall be made notwithstanding Holdings’ failure to comply with
Section 5.03;
      and provided,
further,
      that if a
      Borrowing of Revolving Loans becomes legally impracticable and if so required
      by
      the Swingline Lender at the time such Revolving Loans are required to be made
      by
      the Revolving Lenders in accordance with this Section 2.06(e),
      each Revolving
      Lender agrees that in lieu of making Revolving Loans as described in this
Section 2.06(e),
      such Revolving
      Lender shall purchase a participation from the Swingline Lender in the
      applicable Swingline Loans in an amount equal to such Revolving Lender’s
      Revolving Proportionate Share of such Swingline Loans, and the procedures set
      forth in Section 2.03(b)
      and Section 2.03(c)
      shall be followed
      in connection with the purchases of such participations. Upon such purchases
      of
      participations the prepayment requirements of Section 2.06(d)
      shall
      be deemed
      waived with respect to such Swingline Loans. If any Swingline Loan shall remain
      outstanding in lieu of a Borrowing of Revolving Loans as provided above,
      interest on such Swingline Loan shall be due and payable on demand and shall
      accrue at the rate then applicable to Revolving Loans consisting of Base Rate
      Loans. A copy of each notice given by the Administrative Agent to the Revolving
      Lenders pursuant to this Section 2.06(e)
      with respect to
      the making of Revolving Loans, or the purchases of participations, shall be
      promptly delivered by the Administrative Agent to Holdings. Each Revolving
      Lender’s obligation in accordance with this Agreement to make the Revolving
      Loans, or purchase the participations, as contemplated by this Section 2.06(e),
      shall be absolute
      and unconditional and shall not be affected by any circumstance, including
      (1) any set-off, counterclaim, recoupment, defense or other right which
      such Revolving Lender may have against the Swingline Lender, Holdings or any
      other Person for any reason whatsoever; (2) the occurrence or continuance
      of a Default, an

      
        
          
          

        

        
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    Event
      of Default or
      a Material Adverse Effect; or (3) any other circumstance, happening or
      event whatsoever, whether or not similar to any of the foregoing.

     

    2.07 Optional
      Prepayments.
      Subject to
Section 4.04,
      Holdings may, at
      any time or from time to time, in the case of Offshore Rate Loans, upon not
      less
      than three (3) Business Days’ irrevocable written notice to the Administrative
      Agent, and in the case of Base Rate Loans, upon irrevocable written notice
      to
      the Administrative Agent provided prior to 9:00 a.m. on the day of such
      prepayment (provided that in the case of Base Rate Loans, if such prepayment
      is
      received by the Administrative Agent on or prior to 11:00 a.m. (San
      Francisco time) on any Business Day, such payment shall be applied against
      the
      outstanding Loans on the same Business Day), ratably prepay Loans in whole
      or in
      part, in Minimum Amounts without penalty; provided, however, that such notice
      may state that it is conditioned upon the consummation of a refinancing or
      other
      transaction, in which case such notice may be revoked by Holdings (by written
      notice to the Administrative Agent on or prior to the specified prepayment
      date), subject to Section
      4.04,
      if such condition
      is not satisfied. Such notice of prepayment shall specify the date and amount
      of
      such prepayment, whether such prepayment of Loans is of Term B Loans,
      Revolving Loans or Swingline Loans (or a combination thereof) and the Type(s)
      of
      Loans to be prepaid. The Administrative Agent will promptly notify the
      Term B Lenders, the Revolving Lenders or the Swingline Lender, as
      applicable, of its receipt of any such notice and of such prepayment. If such
      notice is given by Holdings, Holdings shall make such prepayment and the payment
      amount specified in such notice shall be due and payable on the date specified
      therein, together with (other than in the case of Base Rate Loans) accrued
      interest to each such date on the amount prepaid and any amounts required
      pursuant to Section 4.04.
      Optional
      prepayments of Term B Loans shall be applied to reduce the Term B
      Loans with respect to each remaining installment of principal pro rata
      in accordance with
      the then remaining installments payable under Section 2.09(a).

     

    2.08 Mandatory
      Prepayments of Loans; Mandatory Commitment Reductions.

     

    (a) Mandatory
      Prepayments of Loans.

     

    (i) If
      at any time the
      Effective Amount of all L/C Obligations exceeds the L/C Commitment, Holdings
      shall Cash Collateralize on such date the outstanding Letters of Credit in
      an
      amount equal to the excess of the maximum amount then available to be drawn
      under the Letters of Credit over the L/C Commitment.

     

    (ii) If
      at any time the
      Effective Amount of all Revolving Loans and Swingline Loans plus
      the Effective
      Amount of all L/C Obligations exceeds the combined Revolving Commitments of
      the
      Revolving Lenders, Holdings shall immediately, and without notice or demand,
      prepay the outstanding principal amount of the Revolving Loans, Swingline Loans
      and L/C Advances by an amount equal to the applicable excess.

     

    (iii) If
      Holdings, the
      Company or any other Subsidiary shall at any time or from time to time during
      any fiscal year make or agree to make a Disposition, then (A) Holdings
      shall promptly notify the Administrative Agent in advance of such Disposition
      (including notice of the amount of the estimated Net Proceeds to be received
      by
      Holdings, the Company or such other Subsidiary in respect thereof), and
      (B) if, after giving effect to such

      
        
          
          

        

        
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    Disposition,
      the
      Net Proceeds of all Dispositions which have occurred in such fiscal year are
      greater than $50,000,000 in the aggregate, then promptly upon, and in no event
      later than one (1) Business Day after, receipt by Holdings, the Company or
      the
      other Subsidiary of the Net Proceeds of such Disposition, Holdings shall prepay
      the Term B Loans in an aggregate amount equal to 100% of the amount by
      which the Net Proceeds of such Disposition when added to the Net Proceeds
      received by Holdings, the Company or any other Subsidiary on account of all
      other Dispositions which have occurred in such fiscal year, less the amount,
      if
      any, of Net Proceeds already so applied in such fiscal year, exceeds
      $50,000,000; provided,
however,
      that with respect
      to any Non-Wholly-Owned Subsidiary, Holdings shall only be required to prepay
      the Term B Loans as provided above in an amount equal to the ratable
      portion of the Net Proceeds received by such Non-Wholly-Owned Subsidiary based
      on Holdings’ direct or indirect interest in such Non-Wholly-Owned
      Subsidiary.

     

    (iv) If
      Holdings, the
      Company or any other Subsidiary shall at any time or from time to time issue
      any
      debt securities or otherwise borrow money (other than any Loans and other
      Indebtedness permitted under Section 8.05),
      then
      (i) Holdings shall promptly notify the Administrative Agent in advance of
      the estimated Net Issuance Proceeds of such issuance or borrowing, and
      (ii) promptly upon, and in no event later than one (1) Business Day after,
      receipt by Holdings, the Company or the other Subsidiary of the Net Issuance
      Proceeds of such issuance or borrowing, Holdings shall prepay the Term B
      Loans in an aggregate amount equal to 100% of the amount of such Net Issuance
      Proceeds; provided,
however,
      that with respect
      to any Non-Wholly-Owned Subsidiary, Holdings shall only be required to prepay
      the Term B Loans as provided above in an amount equal to the ratable
      portion of the Net Issuance Proceeds received by such Non-Wholly-Owned
      Subsidiary in respect of such issuance or borrowing based on Holdings’ direct or
      indirect interest in such Non-Wholly-Owned Subsidiary.

     

    (v) Any
      prepayments
      pursuant to this Section 2.08
      shall be subject
      to Section 4.04
      and applied,
      first, to any Base Rate Loans then outstanding and then to Offshore Rate Loans
      with the shortest Interest Periods remaining; provided,
however,
      that if the
      amount of Base Rate Loans then outstanding is not sufficient to satisfy the
      entire prepayment requirement, Holdings may, at its option, place any amounts
      which it would otherwise be required to use to prepay Offshore Rate Loans on
      a
      day other than the last day of the Interest Period therefor into an
      interest-bearing account pledged to the Administrative Agent for the benefit
      of
      the Lenders until the end of such Interest Period at which time such pledged
      amounts will be applied to prepay such Offshore Rate Loans. Holdings shall
      pay,
      together with each prepayment under this Section 2.08,
      accrued interest
      on the amount of any Offshore Rate Loans prepaid and any amounts required
      pursuant to Section 4.04.
      Prepayments of
      Term B Loans shall be applied to reduce the Term B Loans with respect
      to each remaining installment of principal pro rata
      in accordance with
      the then remaining installments payable under Section 2.09(a).

     

    (b) Mandatory
      Commitment Reductions.

     

    (i) The
      Aggregate
      Revolving Commitment shall be automatically and permanently reduced to $0 on
      the
      Revolving Loan Maturity Date.

      
        
          
          

        

        
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    (ii) If,
      on the
      Effective Date, the Aggregate Term B Commitment shall exceed the aggregate
      outstanding principal amount of the Existing Term B Loans and the New
      Term B Loans made on the Effective Date, such unused portion of the
      Aggregate Term B Commitment shall thereafter automatically terminate on the
      Effective Date.

     

    (c) Optional
      Waiver
      of Prepayments.
      Any Term B
      Lender may elect, by notice to the Administrative Agent at or prior to the
      time
      and in the manner specified by the Administrative Agent, prior to any mandatory
      prepayment required to be made by Holdings under Section 2.01(a)(iii)
      or 2.01(a)(iv),
      to decline all
      (but not a portion) of its pro rata
      share of such
      prepayment (such declined amounts, the “Declined
      Proceeds”).
      Any Declined
      Proceeds shall be offered to the Term B Lenders not so declining such
      prepayment, with such Term B Lenders having the right to decline any
      prepayment with Declined Proceeds at the time and in the manner specified by
      the
      Administrative Agent. Any Declined Proceeds rejected by such Term B Lenders
      may be retained by Holdings.

     

    2.09 Repayment.

     

    (a) The
      Term B
      Loans.
      Holdings shall
      repay to the Administrative Agent for the account of the Term B Lenders the
      aggregate principal amount of Term B Loans in quarterly installments on the
      last Business Day of each calendar quarter, commencing on December 31, 2006
      in
      the applicable amounts set forth on Schedule
      2.09(a)
      hereto (or as such
      Schedule may be amended pursuant to Section 2.01(c)
      hereof).

     

    (b) The
      Revolving
      Loans and Swingline Loans.
      Holdings shall
      repay to the Administrative Agent for the account of the Revolving Lenders
      and
      Swingline Lender on the Revolving Loan Maturity Date the aggregate principal
      amount of Revolving Loans and Swingline Loans outstanding on such
      date.

     

    2.10 Interest.
vii)
      (i) Subject
      to Section 2.10(c)
      below, each
      Revolving Loan and Term B Loan shall bear interest on the outstanding
      principal amount thereof from the applicable Borrowing Date at a rate per annum
      equal to the Offshore Rate or the Base Rate, as the case may be (and subject
      to
      Holdings’ right to convert to other Types of Loans under Section 2.04),
plus
      the Applicable
      Margin; and (ii) each Swingline Loan shall bear interest on the outstanding
      principal amount thereof from the applicable Borrowing Date at a rate per annum
      equal to the Base Rate plus
      the Applicable
      Margin (for Base Rate Loans), or at such other rate as may be agreed to by
      the
      Swingline Lender.

     

    (b) Interest
      on each
      Revolving Loan, Term B Loan and Swingline Loan shall be paid in arrears on
      each Interest Payment Date. Interest shall also be paid on the date of any
      prepayment of Loans (other than Base Rate Loans) under Section 2.07
      or Section 2.08
      for the portion of
      such Loans so prepaid and upon payment (including prepayment) in full thereof,
      and on the Revolving Loan Maturity Date or Term B Loan Maturity Date, as
      applicable. During the existence of any Event of Default, interest shall be
      paid
      on demand of the Administrative Agent at the request or with the consent of
      the
      Majority Lenders.

     

    (c) Notwithstanding
      Section 2.10(a),
      while any Event
      of Default exists or after acceleration, Holdings shall pay interest (after
      as
      well as before entry of judgment

      
        
          
          

        

        
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    thereon
      to the
      extent permitted by law) on the principal amount of all outstanding Loans and
      other Obligations of Holdings, at a rate per annum which is determined by adding
      2% per annum to the Applicable Margin then in effect for such Loans and other
      Obligations and, in the case of Obligations not subject to an Applicable Margin,
      at a rate per annum equal to the Base Rate plus
      the Applicable
      Margin then in effect for Revolving Loans consisting of Base Rate Loans,
plus
      2% per annum;
provided,
however,
      that on and after
      the expiration of any Interest Period applicable to any Offshore Rate Loan
      outstanding on the date of occurrence of such Event of Default or acceleration,
      the principal amount of such Loan shall, during the continuation of such Event
      of Default or after acceleration, bear interest at a rate per annum equal to
      the
      Base Rate, plus
      the Applicable
      Margin then in effect for Base Rate Loans, plus
      2% per
      annum.

     

    (d) Notwithstanding
      anything to the contrary contained in any Loan Document, the interest paid
      or
      agreed to be paid under the Loan Documents shall not exceed the maximum rate
      of
      non-usurious interest permitted by applicable Law (the “Maximum
      Rate”).
      If the
      Administrative Agent or any Lender shall receive interest in an amount that
      exceeds the Maximum Rate, the excess interest shall be applied to the principal
      of the Loans or, if it exceeds such unpaid principal, refunded to Holdings.
      In
      determining whether the interest contracted for, charged, or received by the
      Administrative Agent or a Lender exceeds the Maximum Rate, such Person may,
      to
      the extent permitted by applicable Law, (a) characterize any payment that
      is not principal as an expense, fee, or premium rather than interest,
      (b) exclude voluntary prepayments and the effects thereof, and
      (c) amortize, prorate, allocate, and spread in equal or unequal parts the
      total amount of interest throughout the contemplated term of the Obligations
      hereunder.

     

    2.11 Fees.
      In addition to
      certain fees described in Section 3.08:

     

    (a) Arrangement
      and
      Agency Fees.
      Holdings shall
      pay the fees specified in (i) that certain letter agreement between
      Holdings and Wells Fargo dated October 9, 2006, (ii) that certain letter
      agreement among Holdings, JPMorgan Chase Bank, N.A., and J.P. Morgan Securities
      Inc. dated October 9, 2006, (iii) that certain letter agreement between
      Holdings and SunTrust Bank dated October 9, 2006 and (iv) that certain
      letter agreement between Holdings and BNP Paribas dated October 9, 2006 (each
      a
“Fee
      Letter”
and,
      collectively, the “Fee
      Letters”).

     

    (b) Commitment
      Fees.
      Holdings shall
      pay to the Administrative Agent for the account of each Revolving Lender a
      commitment fee on the actual daily unused portion of such Revolving Lender’s
      Revolving Commitment (the “Available
      Commitment”),
      computed on a
      quarterly basis in arrears on the last Business Day of each calendar quarter
      based upon the daily utilization for that quarter as calculated by the
      Administrative Agent at a rate per annum equal to the Applicable Fee Amount
      (such fees, the “Commitment
      Fees”).
      For purposes of
      calculating the Available Commitment under this Section 2.11,
      the Revolving
      Commitments shall be deemed used to the extent of the Effective Amount of
      Revolving Loans then outstanding plus the Effective Amount of L/C Obligations
      then outstanding (other than L/C Obligations consisting of the aggregate undrawn
      amount of all Commercial Letters of Credit then outstanding). Swingline Loans
      shall not constitute utilization for purposes of calculating Available
      Commitment. Such Commitment Fees shall accrue from the Effective Date to the
      Revolving Loan Maturity Date and shall be due and payable quarterly in arrears
      on the last

      
        
          
          

        

        
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    Business
      Day of
      each calendar quarter, commencing on December 31, 2006, to the Revolving Loan
      Maturity Date, with the final payment to be made on the Revolving Loan Maturity
      Date; provided
      that in connection
      with any termination of Commitments hereunder, the accrued Commitment Fees
      calculated for the period ending on such date shall also be paid on the date
      of
      termination. The Commitment Fees provided in this Section 2.11(b)
      shall accrue at
      all times after the Effective Date, including at any time during which one
      or
      more conditions in Article
      V
      are not met.

     

    2.12 Computation
      of
      Fees and Interest.
viii)
      All computations
      of interest for Base Rate Loans when the Base Rate is determined by Wells
      Fargo’s “prime rate” shall be made on the basis of a year of 365 or 366 days, as
      the case may be, and actual days elapsed. All other computations of fees and
      interest shall be made on the basis of a 360-day year and actual days elapsed.
      Interest and fees shall accrue during each period during which interest or
      such
      fees are computed from the first day thereof to the last day
      thereof.

     

    (b) Each
      determination
      of an interest rate by the Administrative Agent shall be conclusive and binding
      on Holdings and the Lenders in the absence of manifest error. The Administrative
      Agent will, at the request of Holdings or any Lender, deliver to Holdings or
      the
      Lender, as the case may be, a statement showing the quotations used by the
      Administrative Agent in determining any interest rate and the resulting interest
      rate.

     

    2.13 Payments
      Generally; Administrative Agent’s Clawback.

     

    (a) General.
      All payments to
      be made by Holdings shall be made without condition or deduction for any
      counterclaim, defense, recoupment or setoff. Except as otherwise expressly
      provided herein, all payments by Holdings hereunder shall be made to the
      Administrative Agent, for the account of the respective Lenders to which such
      payment is owed, at the Administrative Agent’s
      Payment Office in
      Dollars and in immediately available funds not later than 11:00 a.m. (San
      Francisco time) on the date specified herein. The Administrative Agent will
      promptly distribute to each Lender its Proportionate Share (or other applicable
      share as provided herein) of such payment in like funds as received by wire
      transfer to such Lender’s Lending Office. All payments received by the
      Administrative Agent after 11:00 a.m. (San Francisco time) shall be deemed
      received on the next succeeding Business Day and any applicable interest or
      fee
      shall continue to accrue. If any payment to be made by Holdings shall come
      due
      on a day other than a Business Day, payment shall be made on the next following
      Business Day, and such extension of time shall be reflected in computing
      interest or fees, as the case may be.

     

    (b) (1) Funding
      by
      Lenders; Presumption by Administrative Agent.
      Unless the
      Administrative Agent shall have received notice from a Lender prior to the
      proposed date of any Borrowing (or prior to the time of any Borrowing, in the
      case of any same day advance of Base Rate Loans) that such Lender will not
      make
      available to the Administrative Agent such Lender’s share of such Borrowing, the
      Administrative Agent may assume that such Lender has made such share available
      on such date in accordance with Section 2.03
      and may, in
      reliance upon such assumption, make available to Holdings a corresponding
      amount. In such event, if a Lender has not in fact made its share of the
      applicable Borrowing available to the Administrative Agent, then the applicable
      Lender and Holdings severally agree to pay to the

      
        
          
          

        

        
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    Administrative
      Agent forthwith on demand such corresponding amount in immediately available
      funds with interest thereon, for each day from and including the date such
      amount is made available to Holdings to but excluding the date of payment to
      the
      Administrative Agent, at (A) in the case of a payment to be made by such
      Lender, the greater of the Federal Funds Rate and a rate determined by the
      Administrative Agent in accordance with banking industry rules on interbank
      compensation and (B) in the case of a payment to be made by Holdings, the
      interest rate applicable to Base Rate Loans. If Holdings and such Lender shall
      pay such interest to the Administrative Agent for the same or an overlapping
      period, the Administrative Agent shall promptly remit to Holdings the amount
      of
      such interest paid by Holdings for such period. If such Lender pays its share
      of
      the applicable Borrowing to the Administrative Agent, then the amount so paid
      shall constitute such Lender’s Loan included in such Borrowing. Any payment by
      Holdings shall be without prejudice to any claim Holdings may have against
      a
      Lender that shall have failed to make such payment to the Administrative
      Agent.

     

    (ii) Payments
      by
      Holdings; Presumptions by Administrative Agent.
      Unless the
      Administrative Agent shall have received notice from Holdings prior to the
      date
      on which any payment is due to the Administrative Agent for the account of
      the
      Lenders or the L/C Issuer hereunder that Holdings will not make such payment,
      the Administrative Agent may assume that Holdings has made such payment on
      such
      date in accordance herewith and may, in reliance upon such assumption,
      distribute to the Lenders or the L/C Issuer, as the case may be, the amount
      due.
      In such event, if Holdings has not in fact made such payment, then each of
      the
      Lenders or the L/C Issuer, as the case may be, severally agrees to repay to
      the
      Administrative Agent forthwith on demand the amount so distributed to such
      Lender or the L/C Issuer, in immediately available funds with interest thereon,
      for each day from and including the date such amount is distributed to it to
      but
      excluding the date of payment to the Administrative Agent, at the greater of
      the
      Federal Funds Rate and a rate determined by the Administrative Agent in
      accordance with banking industry rules on interbank compensation.

     

    A
      notice of the Administrative Agent to any Lender or Holdings with respect to
      any
      amount owing under this subsection (b)
      shall be
      conclusive, absent manifest error.

     

    (c) Failure
      to
      Satisfy Conditions Precedent.
      If any Lender
      makes available to the Administrative Agent funds for any Loan to be made by
      such Lender as provided in the foregoing provisions of this Article
      II,
      and such funds
      are not made available to Holdings by the Administrative Agent because the
      conditions to the applicable Credit Extension set forth in Article
      V
      are not satisfied or waived in accordance with the terms hereof, the
      Administrative Agent shall return such funds (in like funds as received from
      such Lender) to such Lender, without interest.

     

    (d) Obligations
      of
      Lenders Several.
      The obligations
      of the Lenders hereunder to make Loans, to fund participations in Letters of
      Credit and Swingline Loans and to make payments pursuant to Section 11.04(c)
      are several and
      not joint. The failure of any Lender to make any Loan, to fund any such
      participation or to make any payment under Section 11.04(c)
      on any date
      required hereunder shall not relieve any other Lender of its corresponding
      obligation to do so on such date, and no Lender shall be responsible for the
      failure of any other Lender to so make its Loan, to purchase its participation
      or to make its payment under Section 11.04(c).

      
        
          
          

        

        
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    2.14 Sharing
      of
      Payments, Etc.

     

    (a) Except
      as otherwise
      provided herein:

     

    (i) Each
      Revolving Loan
      and reduction of the Aggregate Revolving Commitment shall be made or shared
      among the Revolving Lenders pro rata
      according to their
      respective Revolving Proportionate Shares;

     

    (ii) Each
      Term B
      Loan shall be made or shared among the Term B Lenders pro rata
      according to their
      respective Term B Proportionate Shares;

     

    (iii) Each
      payment of
      principal on Loans in any Borrowing shall be shared among the Lenders which
      made
      or funded the Loans in such Borrowing pro rata
      according to the
      respective unpaid principal amounts of such Loans then owed to such
      Lenders;

     

    (iv) Each
      payment of
      interest on Loans in any Borrowing shall be shared among the Lenders that made
      or funded the Loans in such Borrowing pro rata
      according to
      (A) the respective unpaid principal amounts of such Loans so made or funded
      by such Lenders and (B) the dates on which such Lenders so made or funded
      such Loans;

     

    (v) Each
      payment of
      Commitment Fees pursuant to this Agreement shall be shared among the Revolving
      Lenders (except for Defaulting Lenders) pro rata
      according to
      (A) their respective Revolving Proportionate Shares and (B) in the
      case of each Revolving Lender which becomes a Revolving Lender hereunder after
      the date hereof, the date upon which such Revolving Lender so became a Revolving
      Lender;

     

    (vi) Each
      payment of any
      fees due in connection with any amendment hereto or any waiver of or forbearance
      from any Event of Default existing hereunder shall be shared among those Lenders
      consenting to such amendment, waiver or forbearance or as otherwise agreed
      to by
      such Lenders;

     

    (vii) Each
      payment of
      interest (other than interest on Loans) and fees (other than Commitment Fees)
      shall be shared among the Lenders and the Administrative Agent owed the amount
      upon which such interest or fee accrues pro rata
      according to
      (A) the respective amounts so owed such Lenders and the Administrative
      Agent and (B) the dates on which such amounts became owing to such Lenders
      and the Administrative Agent; and

     

    (viii) All
      other payments
      under this Agreement and the other Loan Documents shall be for the benefit
      of
      the Person or Persons specified.

     

    (b) If
      any Lender
      shall, by exercising any right of setoff or counterclaim or otherwise, obtain
      payment in respect of any principal of or interest on any of the Loans made
      by
      it, or the participations in L/C Obligations or in Swingline Loans held by
      it or
      other obligations hereunder resulting in such Lender’s receiving payment of a
      proportion of the aggregate amount of such Loans or participations and accrued
      interest thereon or other such obligations greater than its pro rata
      share thereof as
      provided herein, then the Lender receiving such greater proportion shall
      (a) notify the Administrative Agent of such fact, and (b) purchase
      (for cash at face value) participations in the Loans, subparticipations in
      L/C
      Obligations and

      
        
          
          

        

        
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    Swingline
      Loans and
      participations in such other obligations of the other Lenders, or make such
      other adjustments as shall be equitable, so that the benefit of all such
      payments shall be shared by the Lenders ratably in accordance with the aggregate
      amount of principal of and accrued interest on their respective Loans and other
      amounts owing them, provided
      that:

     

    (i) if
      any such
      participations or subparticipations are purchased and all or any portion of
      the
      payment giving rise thereto is recovered, such participations or
      subparticipations shall be rescinded and the purchase price restored to the
      extent of such recovery, without interest; and

     

    (ii) the
      provisions of
      this Section 2.14(b)
      shall not be
      construed to apply to (x) any payment made by Holdings pursuant to and in
      accordance with the express terms of this Agreement or (y) any payment
      obtained by a Lender as consideration for the assignment of or sale of a
      participation in any of its Loans or subparticipations in L/C Obligations or
      Swingline Loans to any assignee or participant, other than to Holdings or any
      Subsidiary thereof (as to which the provisions of this Section 2.14(b)
      shall
      apply).

     

    Each
      Loan Party
      consents to the foregoing and agrees, to the extent it may effectively do so
      under applicable law, that any Lender acquiring a participation pursuant to
      the
      foregoing arrangements may exercise against such Loan Party rights of setoff
      and
      counterclaim with respect to such participation as fully as if such Lender
      were
      a direct creditor of such Loan Party in the amount of such participation. The
      Administrative Agent will keep records (which shall be conclusive and binding
      in
      the absence of manifest error) of participations purchased under this
Section 2.14(b)
      and will in each
      case notify the applicable Lenders following any such purchases or
      repayments.

     

    2.15 Security
      and
      Guaranty.
ix)
      All Obligations
      under this Agreement, the Notes and all other Loan Documents shall be secured
      in
      accordance with the Collateral Documents. 

     

    (b) All
      Obligations of
      Holdings under this Agreement, each of the Notes and all other Loan Documents
      to
      which it is a party shall be unconditionally guaranteed by each Guarantor
      pursuant to its Guaranty.

     

    ARTICLE
      III.

     

    THE
      LETTERS OF CREDIT

     

    3.01 The
      Letter of
      Credit Subfacility.
x)
      On the terms and
      subject to the conditions set forth herein (i) the L/C Issuer agrees,
      (A) from time to time on any Business Day during the period from the
      Effective Date to the Revolving Loan Maturity Date to issue Letters of Credit
      for the account of Holdings, and to amend or renew Letters of Credit previously
      issued by it, in accordance with Section 3.02(c)
      and Section 3.02(d),
      and (B) to
      honor drafts under the Letters of Credit; and (ii) the Revolving Lenders
      severally agree to participate in Letters of Credit Issued for the account
      of
      Holdings; provided
      that the L/C
      Issuer shall not be obligated to Issue, and no Revolving Lender shall be
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    Letter
      of Credit is
      not denominated in Dollars or if as of the date of Issuance of such Letter
      of
      Credit (the “Issuance
      Date”)
      and after giving
      effect thereto (x) the Effective Amount of all L/C Obligations plus
      the Effective
      Amount of all Revolving Loans and Swingline Loans shall exceed the combined
      Revolving Commitments, (y) the participation of any Revolving Lender in the
      Effective Amount of all L/C Obligations and in the Effective Amount of all
      Swingline Loans plus
      the Effective
      Amount of the Revolving Loans of such Revolving Lender shall exceed such
      Revolving Lender’s Revolving Commitment, or (z) the Effective Amount of L/C
      Obligations shall exceed the L/C Commitment. Within the foregoing limits, and
      subject to the other terms and conditions hereof, Holdings’ ability to obtain
      Letters of Credit shall be fully revolving, and, accordingly, Holdings may,
      during the foregoing period, obtain Letters of Credit to replace Letters of
      Credit which have expired or which have been drawn upon and reimbursed. All
      Existing Letters of Credit shall be deemed to have been issued pursuant hereto,
      and from and after the Effective Date shall be subject to and governed by the
      terms and conditions hereof.

     

    (b) The
      L/C Issuer is
      under no obligation to Issue any Letter of Credit if:

     

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

     

    (ii) the
      L/C Issuer has
      received written notice from any Revolving Lender, the Administrative Agent
      or
      Holdings, on or prior to the Business Day prior to the requested date of
      Issuance of such Letter of Credit, that one or more of the applicable conditions
      contained in Article
      V
      is not then satisfied;

     

    (iii) the
      expiry date of
      any requested Letter of Credit is (A) more than 365 days after the date of
      Issuance, unless the Majority Revolving Lenders have approved such expiry date
      in writing, or (B) after the Revolving Loan Maturity Date, unless all of
      the Revolving Lenders have approved such expiry date in writing;

     

    (iv) the
      expiry date of
      any requested Letter of Credit is prior to the maturity date of any financial
      obligation to be supported by the requested Letter of Credit;

     

    (v) any
      requested
      Letter of Credit does not provide for drafts, or is not otherwise in form and
      substance acceptable to the L/C Issuer, or the Issuance of a Letter of Credit
      shall violate any applicable policies of the L/C Issuer;

      
        
          
          

        

        
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    (vi) any
      Standby Letter
      of Credit is for the purpose of supporting the issuance of any letter of credit
      by any other Person;

     

    (vii) any
      Standby Letter
      of Credit is in a face amount less than $1,000,000; or 

     

    (viii) any
      requested
      Letter of Credit is to be denominated in a currency other than
      Dollars.

     

    (c) Letters
      of Credit
      issued under this Article
      III
      shall be either
      Commercial Letters of Credit or Standby Letters of Credit.

     

    3.02 Issuance,
      Amendment and Renewal of Letters of Credit.
xi)
      Each Letter of
      Credit shall be issued upon the irrevocable written request of Holdings received
      by the L/C Issuer (with a copy sent by Holdings to the Administrative Agent)
      at
      least four (4) Business Days (or such shorter time as the L/C Issuer may agree
      in a particular instance in its sole discretion) prior to the proposed date
      of
      issuance. Each such request for issuance of a Letter of Credit shall be by
      facsimile, confirmed immediately in an original writing, in the form of an
      L/C
      Application, and shall specify in form and detail satisfactory to the L/C
      Issuer: (i) the proposed date of issuance of the Letter of Credit (which
      shall be a Business Day); (ii) the face amount of the Letter of Credit;
      (iii) the expiry date of the Letter of Credit; (iv) the name and
      address of the beneficiary thereof; (v) the documents to be presented by
      the beneficiary of the Letter of Credit in case of any drawing thereunder;
      (vi) the full text of any certificate to be presented by the beneficiary in
      case of any drawing thereunder; and (vii) such other matters as the L/C
      Issuer may require.

     

    (b) At
      least two (2)
      Business Days prior to the Issuance of any Letter of Credit, the L/C Issuer
      will
      confirm with the Administrative Agent (by telephone or in writing) that the
      Administrative Agent has received a copy of the L/C Application or L/C Amendment
      Application from Holdings and, if not, the L/C Issuer will provide the
      Administrative Agent with a copy thereof. Unless the L/C Issuer has received
      notice on or before the Business Day immediately preceding the date the L/C
      Issuer is to issue a requested Letter of Credit from the Administrative Agent
      (A) directing the L/C Issuer not to issue such Letter of Credit because
      such issuance is not then permitted under Section 3.01(a)
      as a result of the
      limitations set forth in clauses (x) through (z) thereof or
Section 3.01(b)(ii);
      or (B) that
      one or more conditions specified in Article
      V
      are not then satisfied; then, subject to the terms and conditions hereof, the
      L/C Issuer shall, on the requested date, issue a Letter of Credit for the
      account of Holdings in accordance with the L/C Issuer’s usual and customary
      business practices.

     

    (c) From
      time to time
      while a Letter of Credit is outstanding and prior to the Revolving Loan Maturity
      Date, the L/C Issuer will, upon the written request of Holdings received by
      the
      L/C Issuer (with a copy sent by Holdings to the Administrative Agent) at least
      four (4) Business Days (or such shorter time as the L/C Issuer may agree in
      a
      particular instance in its sole discretion) prior to the proposed date of
      amendment (including a renewal or extension thereof), amend any Letter of Credit
      issued by it. Each such request for amendment of a Letter of Credit shall be
      made by facsimile, confirmed immediately in an original writing, made in the
      form of an L/C Amendment Application and shall specify in form and detail
      satisfactory to the

      
        
          
          

        

        
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    L/C
      Issuer:
      (i) the Letter of Credit to be amended; (ii) the proposed date of
      amendment of the Letter of Credit (which shall be a Business Day);
      (iii) the nature of the proposed amendment; and (iv) such other
      matters as the L/C Issuer may require. The L/C Issuer shall be under no
      obligation to amend any Letter of Credit if: (A) the L/C Issuer would have
      no obligation at such time to issue such Letter of Credit in its amended form
      under the terms of this Agreement; or (B) the beneficiary of any such
      Letter of Credit does not accept the proposed amendment to the Letter of Credit.
      The Administrative Agent will promptly notify the Revolving Lenders of the
      Issuance of any Standby Letter of Credit notified to it by the L/C Issuer.
      The
      Revolving Lenders acknowledge and agree that the Administrative Agent will
      not
      notify them of the receipt by the Administrative Agent of any L/C Application
      or
      L/C Amendment Application or of the Issuance of any Commercial Letter of Credit.
      From time to time the Administrative Agent will notify the Revolving Lenders
      of
      the amount of all outstanding Letters of Credit hereunder.

     

    (d) The
      L/C Issuer and
      the Revolving Lenders agree that, while a Letter of Credit is outstanding and
      prior to the Revolving Loan Maturity Date, the L/C Issuer shall be entitled
      to
      authorize the renewal of any Letter of Credit issued by it. The L/C Issuer
      shall
      be under no obligation to so renew any Letter of Credit if: (A) the L/C
      Issuer would have no obligation at such time to issue or amend such Letter
      of
      Credit in its renewed form under the terms of this Agreement; or (B) the
      beneficiary of any such Letter of Credit does not accept the proposed renewal
      of
      the Letter of Credit. If any outstanding Letter of Credit shall provide that
      it
      shall be automatically renewed unless the beneficiary thereof receives notice
      from the L/C Issuer that such Letter of Credit shall not be renewed, and if
      at
      the time of renewal, the L/C Issuer would be entitled to authorize the renewal
      of such Letter of Credit in accordance with this Section 3.02(d)
      upon the request
      of Holdings, but the L/C Issuer shall not have received any written direction
      by
      Holdings with respect thereto, the L/C Issuer shall nonetheless be permitted
      to
      allow such Letter of Credit to renew, and Holdings and the Revolving Lenders
      hereby authorize such renewal, and, accordingly, the L/C Issuer shall be deemed
      to have received an L/C Amendment Application from Holdings requesting such
      renewal. 

     

    (e) The
      L/C Issuer may,
      at its election (or as required by the Administrative Agent at the direction
      of
      the Majority Revolving Lenders), deliver any notices of termination or other
      communications to any Letter of Credit beneficiary or transferee, and take
      any
      other action as necessary or appropriate, at any time and from time to time,
      in
      order to cause the expiry date of such Letter of Credit to be a date not later
      than the Revolving Loan Maturity Date.

     

    (f) This
      Agreement
      shall control in the event of any conflict with any L/C Related Document (other
      than any Letter of Credit).

     

    (g) The
      L/C Issuer will
      also deliver to the Administrative Agent, concurrently or promptly following
      its
      delivery of a Letter of Credit, or amendment to or renewal of a Letter of
      Credit, to an advising bank or a beneficiary, a true and complete copy of each
      such Letter of Credit or amendment to or renewal of a Letter of
      Credit.

     

    3.03 Risk
      Participations, Drawings and Reimbursements.
xii)
      Immediately upon
      the Issuance of each Letter of Credit, each Revolving Lender shall be deemed
      to,
      and

      
        
          
          

        

        
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    hereby
      irrevocably
      and unconditionally agrees to, purchase from the L/C Issuer a participation
      in
      such Letter of Credit and each drawing thereunder in an amount equal to the
      product of (i) the Revolving Proportionate Share of such Revolving Lender,
      times (ii) the maximum amount available to be drawn under such Letter of
      Credit and the amount of such drawing, respectively. Each Issuance of a Letter
      of Credit shall be deemed to utilize the Revolving Commitment of each Revolving
      Lender by an amount equal to the amount of such participation.

     

    (b) In
      the event of any
      request for a drawing under a Letter of Credit by the beneficiary or transferee
      thereof, the L/C Issuer will promptly notify Holdings and specify in such notice
      the date such drawing will be honored by the L/C Issuer (the “Honor
      Date”).
      If the L/C
      Issuer so notifies Holdings prior to 9:00 a.m. (San Francisco time) on the
      Honor
      Date, Holdings, as account party under such Letter of Credit, shall reimburse
      the L/C Issuer no later than 11:00 a.m. (San Francisco time) on the Honor Date
      for the amount paid by the L/C Issuer under such Letter of Credit or, if the
      L/C
      Issuer shall so notify Holdings after 9:00 a.m. (San Francisco time) on the
      Honor Date, Holdings, as account party under such Letter of Credit, shall
      reimburse the L/C Issuer no later than 11:00 a.m. (San Francisco time) on the
      next succeeding Business Day for the amount paid by the L/C Issuer under such
      Letter of Credit on the Honor Date (each such date, a “Reimbursement
      Date”),
      in each case,
      in an amount equal to the amount so paid by the L/C Issuer. In the event
      Holdings fails to reimburse the L/C Issuer for the full amount of any drawing
      under any Letter of Credit by the required time as provided above on the
      Reimbursement Date, the L/C Issuer will promptly notify the Administrative
      Agent, and the Administrative Agent will promptly notify each Revolving Lender
      thereof (including the amount thereof and such Revolving Lender’s Revolving
      Proportionate Share thereof), and Holdings shall be deemed to have requested
      that Base Rate Loans be made by the Revolving Lenders to Holdings to be
      disbursed on the Reimbursement Date for such Letter of Credit, subject to the
      amount of the unutilized portion of the Aggregate Revolving Commitment and
      subject to the conditions set forth in Section 5.03.
      Holdings hereby
      directs that the proceeds of any such Loans deemed to be borrowed by it shall
      be
      used to pay its reimbursement obligations in respect of any such drawing. Solely
      for the purposes of making such Loans, the Minimum Amount limitations set forth
      in Section 2.03
      shall not be
      applicable. Any notice given by the L/C Issuer or the Administrative Agent
      pursuant to this Section 3.03(b)
      may be oral if
      immediately confirmed in writing (including by facsimile); provided
      that the lack of
      such an immediate confirmation shall not affect the conclusiveness or binding
      effect of such notice. In the event that any amount of any drawing under any
      Letter of Credit is not reimbursed by Holdings on the Honor Date, such
      unreimbursed amount shall bear interest until it is either deemed to be an
      L/C
      Borrowing as provided in Section 3.03(d)
      or deemed to be
      converted to a Base Rate Loan as provided in this Section 3.03(b),
      at a rate per
      annum equal to the Base Rate plus
      the Applicable
      Margin then in effect for Revolving Loans consisting of Base Rate
      Loans.

     

    (c) Each
      Revolving
      Lender shall, upon receipt of any notice pursuant to Section 3.03(b),
      make available to
      the Administrative Agent for the account of the L/C Issuer an amount in Dollars
      and in immediately available funds equal to its Revolving Proportionate Share
      of
      the amount of the drawing, whereupon such Revolving Lender shall (subject to
      Section 3.03(f))
      be deemed to have
      made a Revolving Loan consisting of a Base Rate Loan to Holdings in that amount.
      The Administrative Agent will promptly give notice of the occurrence of the
      Reimbursement Date, but failure of the Administrative Agent to give any such
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    the
      Reimbursement
      Date or in sufficient time to enable any Revolving Lender to effect such payment
      on such date shall not relieve such Revolving Lender from its obligations under
      this Section 3.03.

     

    (d) With
      respect to any
      unreimbursed drawing that is not converted into Revolving Loans in whole or
      in
      part, because of Holdings’ failure to satisfy the conditions set forth in
Section 5.03
      or for any other
      reason, Holdings shall be deemed to have incurred from the L/C Issuer an L/C
      Borrowing in the amount of such drawing, which L/C Borrowing shall be due and
      payable on demand (together with interest) and shall bear interest at a rate
      per
      annum equal to the Base Rate, plus
      the Applicable
      Margin then in effect for Revolving Loans consisting of Base Rate Loans,
plus
      2% per annum. In
      such event, each Revolving Lender shall upon receipt of any notice pursuant
      to
Section 3.03(b)
      make available to
      the Administrative Agent for the account of the L/C Issuer an amount in Dollars
      and in immediately available funds equal to its Revolving Proportionate Share
      of
      the amount of the drawing. Each Revolving Lender’s payment to the L/C Issuer
      pursuant to this Section 3.03(d)
      shall be deemed
      payment in respect of its participation in such L/C Borrowing and shall
      constitute an L/C Advance from such Revolving Lender in satisfaction of its
      participation obligation under this Section 3.03.

     

    (e) If
      any Revolving
      Lender fails to make available to the Administrative Agent for the account
      of
      the L/C Issuer the amount of such Revolving Lender’s Revolving Proportionate
      Share of the amount of any drawing by no later than 12:00 noon (San Francisco
      time) on the Reimbursement Date, then interest shall accrue on such Revolving
      Lender’s obligation to make such payment, from the Reimbursement Date to the
      date such Revolving Lender makes such payment, at (i) the Federal Funds
      Rate in effect from time to time during the period commencing on the
      Reimbursement Date and ending on the date three (3) Business Days thereafter,
      and (ii) thereafter at the Base Rate as in effect from time to time,
      payable on demand of the Administrative Agent. 

     

    (f) Each
      Revolving
      Lender’s obligation in accordance with this Agreement to make or participate in
      the Revolving Loans or L/C Advances, as contemplated by this Section 3.03,
      as a result of a
      drawing under a Letter of Credit, shall be absolute and unconditional and
      without recourse to the L/C Issuer and shall not be affected by any
      circumstance, including (i) any set-off, counterclaim, recoupment, defense
      or other right which such Revolving Lender may have against the L/C Issuer,
      Holdings or any other Person for any reason whatsoever; (ii) the occurrence
      or continuance of a Default, an Event of Default or a Material Adverse Effect;
      or (iii) any other circumstance, happening or event whatsoever, whether or
      not similar to any of the foregoing; provided,
however,
      that each
      Revolving Lender’s obligation to make Revolving Loans under this Section 3.03
      is subject to the
      conditions set forth in Section 5.03;
      and provided,
further,
however,
      that a Revolving
      Lender may have recourse against the L/C Issuer, and the L/C Issuer may be
      liable to a Revolving Lender, to the extent, but only to the extent, of any
      direct, as opposed to consequential or exemplary, damages suffered by such
      Revolving Lender which such Revolving Lender proves were caused by the L/C
      Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful
      failure to pay under any Letter of Credit after the presentation to it by the
      beneficiary of a sight draft and certificate(s) strictly complying with the
      terms and conditions of a Letter of Credit.

      
        
          
          

        

        
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    3.04 Repayment
      of
      Participations.
xiii)
      Upon (and only
      upon) receipt by the Administrative Agent for the account of the L/C Issuer
      of
      immediately available funds from Holdings (i) in reimbursement of any
      payment made by the L/C Issuer under the Letter of Credit with respect to which
      any Revolving Lender has paid the Administrative Agent for the account of the
      L/C Issuer for such Revolving Lender’s participation in the Letter of Credit
      pursuant to Section 3.03
      or (ii) in
      payment of interest thereon, the Administrative Agent will pay to each Revolving
      Lender, in the same funds as those received by the Administrative Agent for
      the
      account of the L/C Issuer, the amount of such Revolving Lender’s Revolving
      Proportionate Share of such funds, and the L/C Issuer shall receive the amount
      of the Revolving Proportionate Share of such funds of any Revolving Lender
      that
      did not so pay the Administrative Agent for the account of the L/C
      Issuer.

     

    (b) If
      the
      Administrative Agent or the L/C Issuer is required at any time to return to
      Holdings, or to a trustee, receiver, liquidator, custodian, or any official
      in
      any Insolvency Proceeding, any portion of the payments made by Holdings to
      the
      Administrative Agent for the account of the L/C Issuer pursuant to Section 3.04(a)
      in reimbursement
      of a payment made under the Letter of Credit or interest or fee thereon, each
      Revolving Lender shall, on demand of the Administrative Agent, forthwith return
      to the Administrative Agent or the L/C Issuer the amount of its Revolving
      Proportionate Share of any amounts so returned by the Administrative Agent
      or
      the L/C Issuer plus
      interest thereon
      from the date such demand is made to the date such amounts are returned by
      such
      Revolving Lender to the Administrative Agent or the L/C Issuer, at a rate per
      annum equal to the Federal Funds Rate in effect from time to time.

     

    3.05 Role
      of the L/C
      Issuer.
xiv)
      Each Revolving
      Lender and Holdings agree that, in paying any drawing under a Letter of Credit,
      the L/C Issuer shall not have any responsibility to obtain any document (other
      than any sight draft and certificates expressly required by the Letter of
      Credit) or to ascertain or inquire as to the validity or accuracy of any such
      document or the authority of the Person executing or delivering any such
      document. 

     

    (b) No
      Administrative
      Agent-Related Person nor any of the respective correspondents, participants
      or
      assignees of the L/C Issuer shall be liable to any Revolving Lender for:
      (i) any action taken or omitted in connection herewith at the request or
      with the approval of the Revolving Lender (including the Majority Revolving
      Lenders, as applicable); (ii) any action taken or omitted in the absence of
      gross negligence or willful misconduct; or (iii) the due execution,
      effectiveness, validity or enforceability of any L/C-Related
      Document.

     

    (c) Holdings
      hereby
      assumes all risks of the acts or omissions of any beneficiary or transferee
      with
      respect to its use of any Letter of Credit; provided,
however,
      that this
      assumption is not intended to, and shall not, preclude Holdings pursuing such
      rights and remedies as it may have against the beneficiary or transferee at
      law
      or under any other agreement. No Administrative Agent-Related Person, nor any
      of
      the respective correspondents, participants or assignees of the L/C Issuer,
      shall be liable or responsible for any of the matters described in
      clauses (i) through (vii) of Section 3.06;
provided,
however,
      anything in such
      clauses to the contrary notwithstanding, that Holdings may have a claim against
      the L/C Issuer, and the L/C Issuer may be liable to Holdings, to the extent,
      but
      only to the extent, of any direct, as opposed to consequential or exemplary,
      damages suffered by Holdings which Holdings proves were caused by the L/C
      Issuer’s willful misconduct or gross negligence or the L/C Issuer’s

      
        
          
          

        

        
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    willful
      failure to
      pay under any Letter of Credit after the presentation to it by the beneficiary
      of a sight draft and certificate(s) strictly complying with the terms and
      conditions of a Letter of Credit. In furtherance and not in limitation of the
      foregoing: (i) the L/C Issuer may accept documents that appear on their
      face to be in order, without responsibility for further investigation,
      regardless of any notice or information to the contrary; and (ii) the L/C
      Issuer shall not be responsible for the validity or sufficiency of any
      instrument transferring or assigning or purporting to transfer or assign a
      Letter of Credit or the rights or benefits thereunder or proceeds thereof,
      in
      whole or in part, which may prove to be invalid or ineffective for any
      reason.

     

    3.06 Obligations
      Absolute.
      The obligations
      of Holdings under this Agreement and any L/C-Related Document to reimburse
      the
      L/C Issuer for a drawing under a Letter of Credit, and to repay any L/C
      Borrowing and any drawing under a Letter of Credit converted into Revolving
      Loans, shall be unconditional and irrevocable, and shall be paid strictly in
      accordance with the terms of this Agreement and each such other L/C-Related
      Document under all circumstances, including the following:

     

    (i) any
      lack of
      validity or enforceability of this Agreement or any L/C-Related
      Document;

     

    (ii) any
      change in the
      time, manner or place of payment of, or in any other term of, all or any of
      the
      obligations of Holdings in respect of any Letter of Credit or any other
      amendment or waiver of or any consent to departure from all or any of the
      L/C-Related Documents;

     

    (iii) the
      existence of
      any claim, set-off, defense or other right that Holdings may have at any time
      against any beneficiary or any transferee of any Letter of Credit (or any Person
      for whom any such beneficiary or any such transferee may be acting), the L/C
      Issuer or any other Person, whether in connection with this Agreement, the
      transactions contemplated hereby or by the L/C-Related Documents or any
      unrelated transaction;

     

    (iv) any
      draft, demand,
      certificate or other document presented under any Letter of Credit proving
      to be
      forged, fraudulent, invalid or insufficient in any respect or any statement
      therein being untrue or inaccurate in any respect; or any loss or delay in
      the
      transmission or otherwise of any document required in order to make a drawing
      under any Letter of Credit;

     

    (v) any
      payment by the
      L/C Issuer under any Letter of Credit against presentation of a draft or
      certificate that does not strictly comply with the terms of any Letter of
      Credit; or any payment made by the L/C Issuer under any Letter of Credit to
      any
      Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee
      for the benefit of creditors, liquidator, receiver or other representative
      of or
      successor to any beneficiary or any transferee of any Letter of Credit,
      including any arising in connection with any Insolvency Proceeding;

      
        
          
          

        

        
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    (vi) any
      exchange,
      release or non-perfection of any collateral, or any release or amendment or
      waiver of or consent to departure from any other guarantee, for all or any
      of
      the obligations of Holdings in respect of any Letter of Credit; or

     

    (vii) any
      other
      circumstance or happening whatsoever, whether or not similar to any of the
      foregoing, including any other circumstance that might otherwise constitute
      a
      defense available to, or a discharge of, Holdings or a Guarantor.

     

    3.07 Cash
      Collateral
      Pledge.
      (a) Upon the
      request of the Administrative Agent, if the L/C Issuer has honored any full
      or
      partial drawing request on any Letter of Credit and such drawing has resulted
      in
      an L/C Borrowing hereunder, or (b) if, as of the Revolving Loan Maturity
      Date, any Letters of Credit may for any reason remain outstanding and partially
      or wholly undrawn, or (c) the occurrence of the circumstances described in
Section 2.08(a)(i)
      requiring Holdings
      to Cash Collateralize Letters of Credit, then, Holdings shall immediately Cash
      Collateralize the L/C Obligations in an amount equal to such L/C Obligations.
      Holdings shall, to the extent necessary, make such additional pledges from
      time
      to time as shall be necessary to ensure that all L/C Obligations remain at
      all
      times fully Cash Collateralized. Cash collateral held under this Section 3.07
      or Section 9.02
      shall be
      maintained in blocked, non-interest bearing deposit accounts at Wells Fargo
      pursuant to the Security Agreement.

     

    3.08 Letter
      of Credit
      Fees.
xv)
      Holdings shall pay
      to the Administrative Agent for the account of each of the Revolving Lenders
      in
      accordance with its respective Revolving Proportionate Share a letter of credit
      fee with respect to the Standby Letters of Credit equal to the rate per annum
      equal to the Applicable Fee Amount of the actual daily maximum amount available
      to be drawn of the outstanding Standby Letters of Credit, computed on a
      quarterly basis in arrears on the last Business Day of each calendar quarter
      based upon Standby Letters of Credit outstanding for that quarter as calculated
      by the Administrative Agent. Such letter of credit fees shall be due and payable
      quarterly in arrears on the last Business Day of each calendar quarter during
      which Standby Letters of Credit are outstanding, commencing on the first such
      quarterly date to occur after the Effective Date, to the Revolving Loan Maturity
      Date (or such later date upon which the outstanding Letters of Credit shall
      expire), with the final payment to be made on the Revolving Loan Maturity Date
      (or such later expiration date). Such fees are fully earned when due and, once
      paid, are non-refundable.

     

    (b) Holdings
      shall pay
      to the L/C Issuer, for the L/C Issuer’s sole account, a letter of credit fee
      with respect to the amount from time to time available to be drawn under
      Commercial Letters of Credit in such amount and on such dates as shall
      separately be agreed upon between the L/C Issuer and Holdings. Such fees are
      fully earned when due and, once paid, are non-refundable.

     

    (c) Holdings
      shall pay
      to the L/C Issuer, for the L/C Issuer’s sole account, a letter of credit
      fronting fee for each Standby Letter of Credit Issued by the L/C Issuer equal
      to
      0.125% per annum of the actual daily maximum amount available to be drawn of
      the
      outstanding Standby Letters of Credit, computed on a quarterly basis in arrears
      on the last Business Day of each calendar quarter based upon Standby Letters
      of
      Credit outstanding for that quarter as calculated by the L/C Issuer. Such letter
      of credit fronting fees shall be due and payable quarterly in arrears on the
      last Business Day of each calendar quarter during which

      
        
          
          

        

        
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    Standby
      Letters of
      Credit are outstanding, commencing on the first such quarterly date to occur
      after the Effective Date, to the Revolving Loan Maturity Date (or such later
      date upon which the outstanding Letters of Credit shall expire), with the final
      payment to be made on the Revolving Loan Maturity Date (or such later expiration
      date). Such fees are fully earned when due and, once paid, are
      non-refundable.

     

    (d) Holdings
      shall pay
      to the L/C Issuer from time to time on demand the normal issuance, presentation,
      transfer, amendment and other processing fees, and other standard costs and
      charges, of the L/C Issuer relating to letters of credit as from time to time
      in
      effect.

     

    (e) Notwithstanding
      subsection (a) of this Section 3.08,
      while any Event
      of Default exists or after acceleration, Holdings shall pay a letter of credit
      fee (after as well as before entry of judgment thereon to the extent permitted
      by law) on the actual daily maximum amount available to be drawn of the
      outstanding Letters of Credit, at a rate per annum which is determined by adding
      2% per annum to the rate otherwise then in effect hereunder for such Letters
      of
      Credit.

     

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

     

    3.10 Trade
      Bank as
      L/C Issuer.
      The parties
      hereto acknowledge and agree that, at its option, Wells Fargo, as L/C Issuer,
      may arrange for Letters of Credit to be issued by Trade Bank as agent for Wells
      Fargo. All parties hereto understand and agree that to the extent any Letters
      of
      Credit are issued by Trade Bank as agent for Wells Fargo, (i) Trade Bank is
      agent only to Wells Fargo and not to Holdings and has no obligations to
      Holdings, (ii) the Letters of Credit issued by Trade Bank will be deemed
      Letters of Credit issued by the L/C Issuer for all purposes hereunder and
      (iii) any of the obligations performed or rights exercised pursuant to or
      in connection with the issuance of any Letter of Credit by Trade Bank shall
      be
      deemed obligations performed or rights exercised by Wells Fargo as L/C Issuer.
      To the extent that the L/C Issuer is required to provide any notices to, or
      take
      any other actions for the benefit of, the Administrative Agent hereunder, with
      respect to any Letter of Credit issued by Trade Bank, no such notice or action
      shall be required.

      
        
          
          

        

        
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    ARTICLE
      IV.

     

    TAXES,
      YIELD PROTECTION AND ILLEGALITY

     

    4.01 Taxes.

     

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

     

    (b) Payment
      of Other
      Taxes by Holdings.
      Without limiting
      the provisions of subsection (a) above, Holdings shall timely pay any Other
      Taxes to the relevant Governmental Authority in accordance with applicable
      law.

     

    (c) Indemnification
      by Holdings.
      Holdings shall
      indemnify the Administrative Agent, each Lender and the L/C Issuer, within
      10
      days after demand therefor, for the full amount of any Indemnified Taxes or
      Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted
      on
      or attributable to amounts payable under this Section) paid by the
      Administrative Agent, such Lender or the L/C Issuer, as the case may be, and
      any
      penalties, interest and reasonable expenses arising therefrom or with respect
      thereto, whether or not such Indemnified Taxes or Other Taxes were correctly
      or
      legally imposed or asserted by the relevant Governmental Authority. A
      certificate as to the amount of such payment or liability delivered to Holdings
      by a Lender or the L/C Issuer (with a copy to the Administrative Agent), or
      by
      the Administrative Agent on its own behalf or on behalf of a Lender or the
      L/C
      Issuer, shall be conclusive absent manifest error.

     

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

     

    (e) Status
      of
      Lenders.
      Any Foreign
      Lender that is entitled to an exemption from or reduction of withholding tax
      under the law of the jurisdiction in which Holdings is resident for tax
      purposes, or any treaty to which such jurisdiction is a party, with respect
      to
      payments hereunder or under any other Loan Document shall deliver to Holdings
      (with a copy to the Administrative Agent), at the time or times prescribed
      by
      applicable law or reasonably requested by Holdings or the Administrative Agent,
      such properly completed and executed documentation prescribed by applicable
      law
      as will permit such payments to be made

      
        
          
          

        

        
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    without
      withholding
      or at a reduced rate of withholding. In addition, any Lender, if requested
      by
      Holdings or the Administrative Agent, shall deliver such other documentation
      prescribed by applicable law or reasonably requested by Holdings or the
      Administrative Agent as will enable Holdings or the Administrative Agent to
      determine whether or not such Lender is subject to backup withholding or
      information reporting requirements.

     

    Without
      limiting
      the generality of the foregoing, in the event that Holdings is resident for
      tax
      purposes in the United States, any Foreign Lender shall deliver to Holdings
      and
      the Administrative Agent (in such number of copies as shall be requested by
      the
      recipient) on or prior to the date on which such Foreign Lender becomes a Lender
      under this Agreement (and from time to time thereafter upon the request of
      Holdings or the Administrative Agent, but only if such Foreign Lender is legally
      entitled to do so), whichever of the following is applicable:

     

    (i) duly
      completed
      copies of Internal Revenue Service Form W-8BEN claiming eligibility for benefits
      of an income tax treaty to which the United States is a party,

     

    (ii) duly
      completed
      copies of Internal Revenue Service Form W-8ECI,

     

    (iii) in
      the case of a
      Foreign Lender claiming the benefits of the exemption for portfolio interest
      under section 881(c) of the Code, (x) a certificate to the effect that
      such Foreign Lender is not (A) a “bank” within the meaning of
      section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder”
of Holdings within the meaning of section 881(c)(3)(B) of the Code, or
      (C) a “controlled foreign corporation” described in
      section 881(c)(3)(C) of the Code and (y) duly completed copies of
      Internal Revenue Service Form W-8BEN, or

     

    (iv) any
      other form
      prescribed by applicable law as a basis for claiming exemption from or a
      reduction in United States Federal withholding tax duly completed together
      with
      such supplementary documentation as may be prescribed by applicable law to
      permit Holdings to determine the withholding or deduction required to be
      made.

     

    (f) Treatment
      of
      Certain Refunds.
      If the
      Administrative Agent, any Lender or the L/C Issuer determines, in its sole
      discretion, that it has received a refund of any Taxes or Other Taxes as to
      which it has been indemnified by Holdings or with respect to which Holdings
      has
      paid additional amounts pursuant to this Section, it shall pay to Holdings
      an
      amount equal to such refund (but only to the extent of indemnity payments made,
      or additional amounts paid, by Holdings under this Section with respect to
      the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
      expenses of the Administrative Agent, such Lender or the L/C Issuer, as the
      case
      may be, and without interest (other than any interest paid by the relevant
      Governmental Authority with respect to such refund), provided
      that Holdings,
      upon the request of the Administrative Agent, such Lender or the L/C Issuer,
      agrees to repay the amount paid over to Holdings (plus any penalties, interest
      or other charges imposed by the relevant Governmental Authority) to the
      Administrative Agent, such Lender or the L/C Issuer in the event the
      Administrative Agent, such Lender or the L/C Issuer is required to repay such
      refund to such Governmental Authority. This subsection shall not be construed
      to
      require the Administrative

      
        
          
          

        

        
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    Agent,
      any Lender
      or the L/C Issuer to make available its tax returns (or any other information
      relating to its taxes that it deems confidential) to Holdings or any other
      Person.

     

    (g) Nothing
      contained
      in this Section 4.01
      shall override any
      term or provision of any Specified Swap Contract regarding withholding taxes
      relating to Swap Contracts.

     

    4.02 Illegality.
xvi)
      If any Lender
      determines that the introduction of any Requirement of Law, or any change in
      any
      Requirement of Law, or in the interpretation or administration of any
      Requirement of Law, has made it unlawful, or that any central bank or other
      Governmental Authority has asserted that it is unlawful, for any Lender or
      its
      applicable Lending Office to make Offshore Rate Loans, then, on notice thereof
      by such Lender to Holdings through the Administrative Agent, any obligation
      of
      that Lender to make Offshore Rate Loans shall be suspended until such Lender
      notifies the Administrative Agent and Holdings that the circumstances giving
      rise to such determination no longer exist.

     

    (b) If
      a Lender
      determines that it is unlawful to maintain any Offshore Rate Loan, Holdings
      shall, upon its receipt of notice of such fact and demand from such Lender
      (with
      a copy to the Administrative Agent), prepay in full such Offshore Rate Loans
      of
      that Lender then outstanding, together with interest accrued thereon and amounts
      required under Section 4.04,
      either on the
      last day of the Interest Period thereof, if such Lender may lawfully continue
      to
      maintain such Offshore Rate Loans to such day, or immediately, if such Lender
      may not lawfully continue to maintain such Offshore Rate Loan. If Holdings
      is
      required to so prepay any Offshore Rate Loan, then concurrently with such
      prepayment, Holdings shall borrow from the affected Lender, in the amount of
      such repayment, a Base Rate Loan.

     

    (c) If
      the obligation
      of any Lender to make or maintain Offshore Rate Loans has been so terminated
      or
      suspended, Holdings may elect, by giving notice to such Lender through the
      Administrative Agent that all Loans which would otherwise be made by such Lender
      as Offshore Rate Loans shall be instead Base Rate Loans.

     

    (d) Before
      giving any
      notice to the Administrative Agent under this Section 4.02,
      the affected
      Lender shall designate a different Lending Office with respect to its Offshore
      Rate Loans if such designation will avoid the need for giving such notice or
      making such demand and will not, in the judgment of such Lender, be illegal
      or
      otherwise disadvantageous to such Lender.

     

    4.03 Increased
      Costs.

     

    (a) Increased
      Costs
      Generally.
      If any Change in
      Law shall:

     

    (i) impose,
      modify or
      deem applicable any reserve, special deposit, compulsory loan, insurance charge
      or similar requirement against assets of, deposits with or for the account
      of,
      or credit extended or participated in by, any Lender or the L/C
      Issuer;

     

    (ii) subject
      any Lender
      or the L/C Issuer to any tax of any kind whatsoever with respect to this
      Agreement, any Letter of Credit, any participation in a Letter of

      
        
          
          

        

        
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    Credit
      or any
      Offshore Rate Loan made by it, or change the basis of taxation of payments
      to
      such Lender or the L/C Issuer in respect thereof (except for Indemnified Taxes
      or Other Taxes covered by Section 4.01
      and the imposition
      of, or any change in the rate of, any Excluded Tax payable by such Lender or
      the
      L/C Issuer); or

     

    (iii) impose
      on any
      Lender or the L/C Issuer or the London interbank market any other condition,
      cost or expense affecting this Agreement or Offshore Rate Loans made by such
      Lender or any Letter of Credit or participation therein; and the result of
      any
      of the foregoing shall be to increase the cost to such Lender of making or
      maintaining any Offshore Rate Loan (or of maintaining its obligation to make
      any
      such Loan), or to increase the cost to such Lender or the L/C Issuer of
      participating in, issuing or maintaining any Letter of Credit (or of maintaining
      its obligation to participate in or to issue any Letter of Credit), or to reduce
      the amount of any sum received or receivable by such Lender or the L/C Issuer
      hereunder (whether of principal, interest or any other amount) then, upon
      request of such Lender or the L/C Issuer, Holdings will pay to such Lender
      or
      the L/C Issuer, as the case may be, such additional amount or amounts as will
      compensate such Lender or the L/C Issuer, as the case may be, for such
      additional costs incurred or reduction suffered.

     

    (b) Capital
      Requirements.
      If any Lender or
      the L/C Issuer determines that any Change in Law affecting such Lender or the
      L/C Issuer or any Lending Office of such Lender or such Lender’s or the L/C
      Issuer’s holding company, if any, regarding capital requirements has or would
      have the effect of reducing the rate of return on such Lender’s or the L/C
      Issuer’s capital or on the capital of such Lender’s or the L/C Issuer’s holding
      company, if any, as a consequence of this Agreement, the Commitments of such
      Lender or the Loans made by, or participations in Letters of Credit held by,
      such Lender, or the Letters of Credit issued by the L/C Issuer, to a level
      below
      that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s
      holding company could have achieved but for such Change in Law (taking into
      consideration such Lender’s or the L/C Issuer’s policies and the policies of
      such Lender’s or the L/C Issuer’s holding company with respect to capital
      adequacy), then from time to time Holdings will pay to such Lender or the L/C
      Issuer, as the case may be, such additional amount or amounts as will compensate
      such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding
      company for any such reduction suffered.

     

    (c) Certificates
      for
      Reimbursement.
      A certificate of
      a Lender or the L/C Issuer delivered pursuant to Section 4.06
      setting forth the
      amount or amounts necessary to compensate such Lender or the L/C Issuer or
      its
      holding company, as the case may be, as specified in subsection (a) or (b)
      of this Section and delivered to Holdings shall be conclusive absent manifest
      error. Holdings shall pay such Lender or the L/C Issuer, as the case may be,
      the
      amount shown as due on any such certificate within 10 days after receipt
      thereof.

     

    (d) Delay
      in
      Requests.
      Failure or delay
      on the part of any Lender or the L/C Issuer to demand compensation pursuant
      to
      the foregoing provisions of this Section shall not constitute a waiver of such
      Lender’s or the L/C Issuer’s right to demand such compensation, provided
      that Holdings
      shall not be required to compensate a Lender or the L/C Issuer pursuant to
      the
      foregoing provisions of this Section for any increased costs incurred or
      reductions suffered more than nine months prior to the date that such Lender
      or
      the L/C Issuer, as the case may be, notifies Holdings of the Change in Law
      giving rise to such increased costs or reductions and of

      
        
          
          

        

        
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    such
      Lender’s or
      the L/C Issuer’s intention to claim compensation therefor (except that, if the
      Change in Law giving rise to such increased costs or reductions is retroactive,
      then the nine-month period referred to above shall be extended to include the
      period of retroactive effect thereof).

     

    (e) Reserves
      on
      Offshore Rate Loans.
      Holdings shall
      pay to each Lender, as long as such Lender shall be required to maintain
      reserves with respect to liabilities or assets consisting of or including
      Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”),
      additional interest on the unpaid principal amount of each Offshore Rate Loan
      equal to the actual costs of such reserves allocated to such Loan by such Lender
      (as determined by such Lender in good faith, which determination shall be
      conclusive), which shall be due and payable on each date on which interest
      is
      payable on such Loan, provided Holdings shall have received at least 10 days’
prior notice (with a copy to the Administrative Agent) of such additional
      interest from such Lender. If a Lender fails to give notice 10 days prior to
      the
      relevant Interest Payment Date, such additional interest shall be due and
      payable 10 days from receipt of such notice.

     

    4.04 Funding
      Losses.
      Upon demand of
      any Lender (with a copy to the Administrative Agent) from time to time, Holdings
      shall promptly compensate such Lender for and hold such Lender harmless from
      any
      loss, cost or expense incurred by it as a result of:

     

    (a) any
      continuation,
      conversion, payment or prepayment of any Loan other than a Base Rate Loan on
      a
      day other than the last day of the Interest Period for such Loan (whether
      voluntary, mandatory, automatic, by reason of acceleration, or
      otherwise);

     

    (b) any
      failure by
      Holdings (for a reason other than the failure of such Lender to make a Loan)
      to
      prepay, borrow, continue or convert any Loan other than a Base Rate Loan on
      the
      date or in the amount notified by Holdings; or

     

    (c) any
      assignment of a
      Offshore Rate Loan on a day other than the last day of the Interest Period
      therefor as a result of a request by Holdings pursuant to Section 11.11;

     

    including
      any loss
      or expense arising from the liquidation or reemployment of funds obtained by
      it
      to maintain such Loan or from fees payable to terminate the deposits from which
      such funds were obtained, such loss or expense to be deemed to include an amount
      reasonably determined by such Lender to be the excess, if any, of (i) the amount
      of interest that would have accrued on the principal amount of such Loan had
      such event not occurred, at the Offshore Rate that would have been applicable
      to
      such Loan, for the period from the date of such event to the last day of the
      then current Interest Period therefor (or, in the case of a failure to borrow,
      convert or continue, for the period that would have been the Interest Period
      for
      such Loan), over (ii) the amount of interest that would accrue on such principal
      amount for such period at the interest rate that such Lender would bid were
      it
      to bid, at the commencement of such period, for dollar deposits of a comparable
      amount and period from other banks in the London interbank market. Holdings
      shall also pay any customary administrative fees charged by such Lender in
      connection with the foregoing.

      
        
          
          

        

        
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    For
      purposes of
      calculating amounts payable by Holdings to the Lenders under this Section 4.04,
      each Lender shall
      be deemed to have funded each Offshore Rate Loan made by it at the Offshore
      Rate
      for such Loan by a matching deposit or other borrowing in the London interbank
      market for a comparable amount and for a comparable period, whether or not
      such
      Offshore Rate Loan was in fact so funded.

     

    4.05 Inability
      to
      Determine Rates.
      If the
      Administrative Agent or the Majority Lenders determine that for any reason
      adequate and reasonable means do not exist for determining the Offshore Rate
      for
      any requested Interest Period with respect to a proposed Borrowing of Offshore
      Rate Loans or conversion into or continuation of Offshore Rate Loans, or that
      the Offshore Rate applicable pursuant to Section 2.10(a)
      for any requested
      Interest Period with respect to a proposed Borrowing of Offshore Rate Loans,
      or
      a conversion into or continuation of Offshore Rate Loans does not adequately
      and
      fairly reflect the cost to such Lenders of funding such Loans, the
      Administrative Agent will promptly so notify Holdings and each Lender.
      Thereafter, the obligation of the Lenders to make or maintain Offshore Rate
      Loans, as the case may be, hereunder shall be suspended until the Administrative
      Agent upon the instruction of the Majority Lenders revokes such notice in
      writing. Upon receipt of such notice, Holdings may revoke any Notice of
      Borrowing or Notice of Conversion/Continuation then submitted by it. If Holdings
      does not revoke such Notice, the Lenders shall make, convert or continue the
      Loans, as proposed by Holdings, in the amount specified in the applicable notice
      submitted by Holdings, but such Loans shall be made, converted or continued
      as
      Base Rate Loans instead of Offshore Rate Loans, as the case may be.

     

    4.06 Certificates
      of
      Lenders.
      Any Lender
      claiming reimbursement or compensation under this Article
      IV
      shall deliver to Holdings (with a copy to the Administrative Agent) a
      certificate setting forth in reasonable detail the amount payable to such Lender
      hereunder, and the basis for calculation of such amount, and such certificate
      shall be conclusive and binding on Holdings in the absence of manifest
      error.

     

    4.07 Mitigation
      Obligations; Replacement of Lenders.

     

    (a) Designation
      of a
      Different Lending Office.
      If any Lender
      requests compensation under Section 4.03,
      or Holdings is
      required to pay any additional amount to any Lender or any Governmental
      Authority for the account of any Lender pursuant to Section 4.01,
      or if any Lender
      gives a notice pursuant to Section 4.02,
      then such Lender
      shall use reasonable efforts to designate a different Lending Office for funding
      or booking its Loans hereunder or to assign its rights and obligations hereunder
      to another of its offices, branches or affiliates, if, in the judgment of such
      Lender, such designation or assignment (i) would eliminate or reduce
      amounts payable pursuant to Section 4.01
      or 4.03,
      as the case may
      be, in the future, or eliminate the need for the notice pursuant to Section 4.02,
      as applicable,
      and (ii) in each case, would not subject such Lender to any unreimbursed
      cost or expense and would not otherwise be disadvantageous to such Lender.
      Holdings hereby agrees to pay all reasonable costs and expenses incurred by
      any
      Lender in connection with any such designation or assignment.

     

    (b) Replacement
      of
      Lenders.
      If any Lender
      requests compensation under Section 4.03,
      or if Holdings is
      required to pay any additional amount to any Lender or any

      
        
          
          

        

        
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    Governmental
      Authority for the account of any Lender pursuant to Section 4.01,
      Holdings may
      replace such Lender in accordance with Section 11.11.

     

    4.08 Survival.
      The agreements
      and obligations of Holdings in this Article
      IV
      shall survive the termination of the Commitments, the termination or expiration
      of all Letters of Credit and the payment of all other Obligations.

     

    ARTICLE
      V.

     

    CONDITIONS
      PRECEDENT

     

    5.01 Conditions
      to
      Effective Date.
      The obligations
      of each Lender and the L/C Issuer to make its initial Credit Extension hereunder
      (including the obligations of any New Lender to advance its Proportionate Share
      of any Loans currently outstanding under the Existing Credit Agreement pursuant
      to Section 2.01
      hereof) shall be
      subject to the condition that the Administrative Agent shall have received
      on or
      before the Effective Date all of the following, in form and substance reasonably
      satisfactory to the Administrative Agent and each Lender:

     

    (a) Credit
      Agreement.
      This Agreement
      executed by (i) Holdings, the Company and each direct or indirect U.S.
      Wholly-Owned Subsidiary of Holdings; (ii) each Lender, the Swingline Lender
      and the L/C Issuer; and (iii) the Administrative Agent.

     

    (b) Resolutions;
      Incumbency.

     

    (i) Copies
      of the
      resolutions of the board of directors of each Loan Party (or other similar
      enabling action of each Loan Party that is not a corporation) authorizing the
      transactions contemplated hereby, certified as of the Effective Date by the
      Secretary or an Assistant Secretary of such Person; and

     

    (ii) a
      certificate of
      the Secretary or Assistant Secretary of each Loan Party, dated as of the
      Effective Date, certifying the names, titles and true signatures of the officers
      of such Person authorized to execute, deliver and perform, as applicable, this
      Agreement and all other Loan Documents to be delivered by it hereunder;
      and

     

    (c) Financial
      Statements.

     

    (i) The
      audited
      consolidated balance sheet of Holdings and its Subsidiaries as at December
      31,
      2005 and December 31, 2004, and the related consolidated statements of income
      or
      operations, shareholders’ equity and cash flows for the fiscal year then ended,
      certified by a Responsible Officer of Holdings;

     

    (ii) the
      unaudited
      consolidated balance sheet of Holdings and its Subsidiaries as at September
      30,
      2006, and the related consolidated statements of income or operations,
      shareholders’ equity and cash flows for the fiscal quarter then ended, certified
      by a Responsible Officer of Holdings; and 

     

    (iii) such
      other
      financial information as the Administrative Agent or any Lender may reasonably
      request.

      
        
          
          

        

        
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    (d) Organization
      Documents; Good Standing.
      Each of the
      following documents:

     

    (i) the
      Organization
      Documents of each Loan Party as in effect on the Effective Date, certified
      by
      the Secretary or Assistant Secretary of such Person as of the Effective Date;
      and

     

    (ii) a
      good standing
      certificate, as of a recent date, for each Loan Party from the Secretary of
      State (or similar, applicable Governmental Authority) of its state of
      incorporation or formation and each state where its ownership, lease or
      operation of property or the conduct of its business requires such Loan Party
      be
      qualified or otherwise licensed to do business;

     

    (e) Legal
      Opinion.
      An opinion of
      Gibson, Dunn & Crutcher LLP, counsel to the Loan Parties and addressed to
      the Administrative Agent and the Lenders, dated the Effective Date,
      substantially in the form of Exhibit
      D;

     

    (f) Payment
      of
      Fees.
      Evidence of
      payment by Holdings of all accrued and unpaid fees, costs and expenses to the
      extent then due and payable on the Effective Date, together with reasonable
      Attorney Costs of Wells Fargo to the extent invoiced prior to or on the
      Effective Date, plus
      such additional
      amounts of reasonable Attorney Costs as shall constitute Wells Fargo’s
      reasonable estimate of Attorney Costs incurred or to be incurred by it through
      the closing proceedings (provided
      that such estimate
      shall not thereafter preclude final settling of accounts between Holdings and
      Wells Fargo); including any such costs, fees and expenses arising under or
      referenced in Section 2.11
      and Section 11.04;

     

    (g) Officer’s
      Certificate.
      A certificate
      signed by a Responsible Officer of each of Holdings and the Company, dated
      as of
      the Effective Date, stating that:

     

    (i) the
      representations
      and warranties contained in Article
      VI
      are true and correct on and as of such date, as though made on and as of such
      date;

     

    (ii) no
      Default exists
      or would result from the initial Credit Extension; and

     

    (iii) there
      has occurred
      since December 31, 2005, no event or circumstance that has resulted or could
      reasonably be expected to result in a Material Adverse Effect;

     

    (h) Collateral
      Documents.
      The Collateral
      Documents, executed by each Loan Party, in appropriate form for recording,
      where
      necessary, together with:

     

    (i) copies
      of all
      UCC-l, UCC-2 and UCC-3 financing statements to be filed to perfect or amend the
      security interests of the Administrative Agent for the benefit of the Lenders,
      or other evidence satisfactory to the Administrative Agent that there have
      been
      filed, registered or recorded all financing statements and other filings,
      registrations and recordings necessary and advisable to perfect or amend the
      perfection of the Liens of the Administrative Agent for the benefit of the
      Lenders in accordance with applicable law;

      
        
          
          

        

        
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    (ii) written
      advice
      relating to such Lien and judgment searches as the Administrative Agent shall
      have requested, and such termination statements or other documents as may be
      necessary to confirm that the Collateral is subject to no other Liens in favor
      of any Persons (other than Permitted Liens);

     

    (iii) to
      the extent not
      previously delivered pursuant to the Existing Credit Agreement, receipt by
      the
      Administrative Agent of all certificates and instruments representing the
      Pledged Collateral, together with stock transfer powers executed in blank with
      signatures guaranteed, as the Administrative Agent may specify;

     

    (iv) funds
      sufficient to
      pay any filing or recording tax or fee in connection with any and all UCC-1
      financing statements;

     

    (v) to
      the extent not
      previously delivered pursuant to the Existing Credit Agreement, such consents,
      estoppels, subordination agreements and other documents and instruments executed
      by landlords, tenants, bailees and other Persons party to material contracts
      relating to any Collateral as to which the Administrative Agent shall be granted
      a Lien for the benefit of the Lenders, as requested by the Administrative Agent
      or any Lender; and

     

    (vi) evidence
      that all
      other actions necessary or, in the reasonable opinion of the Administrative
      Agent or the Lenders, desirable to perfect and protect the first priority Lien
      created by the Collateral Documents, and to enhance the Administrative Agent’s
      ability to preserve and protect its and the Lenders’ interests in and access to
      the Collateral, have been taken;

     

    (i) Insurance
      Policies.
      To the extent not
      previously delivered pursuant to the Existing Credit Agreement, evidence that
      the Administrative Agent has been named as loss payee under all policies of
      casualty insurance under a Form 438BFU or other standard lender’s loss payable
      endorsement and as additional insured under all policies of liability insurance
      required in accordance with Section 7.06
      and the Collateral
      Documents, together with a certificate of insurance as to all insurance coverage
      on the properties of Holdings and its Subsidiaries;

     

    (j) Compliance
      Certificate.
      A completed
      Compliance Certificate, as of September 30, 2006, signed by a Responsible
      Officer of Holdings; 

     

    (k) Control
      Agreements.
      Any control
      agreements for the perfection of the Administrative Agent’s Lien on the deposit
      accounts of Holdings and the Guarantors party hereto which have been requested
      by the Administrative Agent prior to the Effective Date shall have been executed
      by Holdings or such Guarantor, as applicable, and any applicable financial
      institutions; 

     

    (l) Assignments
      of
      Trademarks.
      Such actions
      shall have been taken as the Administrative Agent deems necessary to ensure
      the
      Administrative Agent’s and the Lenders’ rights as secured party with respect to
      any trademarks of Holdings or any Guarantor party hereto;

      
        
          
          

        

        
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    (m) Notes.
      Notes executed by
      Holdings for the Lenders requesting Notes; and

     

    (n) Certain
      Transitional Payments.
      Evidence of
      payment by Holdings to each of the Existing Lenders all accrued and unpaid
      interest (to but excluding the Effective Date), fees, expenses and certain
      other
      amounts owing to the Administrative Agent and the Existing Lenders under the
      Existing Credit Agreement as of the Effective Date, including all “Term A Loans”
then outstanding under the Existing Credit Agreement and all amounts, if any,
      payable under Section 4.04
      of the Existing
      Credit Agreement. Such accrued and unpaid interest, fees, expenses and other
      amounts owing to the Administrative Agent and the Existing Lenders shall be
      set
      forth in a closing statement prepared by the Administrative Agent and delivered
      to Holdings on or prior to the Effective Date.

     

    (o) Other
      Documents.
      Such other
      approvals, opinions, documents or materials as the Administrative Agent or
      any
      Lender may reasonably request.

     

    5.02 Conditions
      to
      each Subsequent Effective Date.
      The obligations
      of each Additional Lender to become a party hereto and of each Additional Lender
      to make the Additional Term B Loans and/or to provide any Additional
      Revolving Commitment shall be subject to the condition that the Administrative
      Agent shall have received on or before the relevant Subsequent Effective Date
      all of the following, in form and substance reasonably satisfactory to the
      Administrative Agent and each Additional Lender, and in sufficient copies for
      each Additional Lender:

     

    (a) Credit
      Agreement
      and Notes.
      This Agreement
      executed by each Additional Lender and Notes executed by Holdings for each
      Additional Lender requesting Notes;

     

    (b) Secretary’s
      Certificate.
      A certificate of
      the Secretary or Assistant Secretary of each Loan Party, dated as of the
      relevant Subsequent Effective Date, certifying:

     

    (i) that
      the
      resolutions of the board of directors of each Loan Party (or other similar
      enabling action of each Loan Party that is not a corporation) authorizing the
      transactions contemplated hereby, as delivered on the Effective Date or the
      Additional Guarantor Accession Date, as applicable, are in full force and effect
      and have not been amended, supplemented or modified; and

     

    (ii) the
      names, titles
      and true signatures of the officers of such Person authorized to execute,
      deliver and perform, as applicable, this Agreement and all other Loan Documents
      to be delivered by it hereunder; 

     

    (c) Organization
      Documents; Good Standing.
      Each of the
      following documents:

     

    (i) the
      Organization
      Documents of each Loan Party as in effect on the relevant Subsequent Effective
      Date certified by the Secretary or Assistant Secretary of such Person as of
      the
      relevant Subsequent Effective Date, or a certification by such Secretary or
      Assistant Secretary that the Organization Documents of such Loan Party delivered
      to the Administrative Agent on the Effective Date or the Additional Guarantor
      Accession Date, as

      
        
          
          

        

        
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    applicable,
      or any
      prior Subsequent Effective Date are in full force and effect and have not been
      amended, supplemented or modified; and

     

    (ii) a
      good standing
      certificate, as of a date reasonably prior to the relevant Subsequent Effective
      Date as is determined by the Administrative Agent in good faith, for each Loan
      Party from the Secretary of State (or similar, applicable Governmental
      Authority) of its state of incorporation and each state where its ownership,
      lease or operation of property or the conduct of its business requires such
      Loan
      Party be qualified or otherwise licensed to do business;

     

    (d) Payment
      of
      Fees.
      Evidence of
      payment by Holdings of all accrued and unpaid fees, costs and expenses to the
      extent then due and payable on the relevant Subsequent Effective Date, together
      with reasonable Attorney Costs of Wells Fargo to the extent invoiced prior
      to or
      on the relevant Subsequent Effective Date, plus
      such additional
      amounts of reasonable Attorney Costs as shall constitute Wells Fargo’s
      reasonable estimate of Attorney Costs incurred or to be incurred by it through
      the closing proceedings (provided
      that such estimate
      shall not thereafter preclude final settling of accounts between Holdings and
      Wells Fargo); including any such costs, fees and expenses arising under or
      referenced in Section 2.11
      and Section 11.04;

     

    (e) Officer’s
      Certificate.
      A certificate
      signed by a Responsible Officer of each of Holdings and the Company, dated
      as of
      the relevant Subsequent Effective Date, stating that:

     

    (i) the
      representations
      and warranties contained in Article
      VI
      are true and correct on and as of such date, as though made on and as of such
      date (except to the extent such representations and warranties expressly refer
      to an earlier date, in which case they shall be true and correct as of such
      earlier date);

     

    (ii) no
      Default exists
      or would result from the Credit Extensions to be made as of the relevant
      Subsequent Effective Date; and, after giving effect to such Credit Extensions,
      Holdings would be in pro forma compliance with the financial covenants set
      forth
      in Section 8.19
      measured as of the
      last day of the most recent fiscal quarter for which Holdings has delivered
      financial statements under Section 5.01(c),
Section 7.01(a)
      or Section 7.01(b);
      and

     

    (iii) there
      has occurred
      since the Effective Date, no event or circumstance that has resulted or could
      reasonably be expected to result in a Material Adverse Effect;

     

    (f) Additional
      Conditions.
      The Borrower
      shall have complied with all of the conditions set forth in Section 2.01(c)
      or Section 2.01(d), as applicable; and

     

    (g) Other
      Documents.
      Such other
      approvals, opinions, documents or materials as the Administrative Agent or
      any
      Additional Lender may reasonably request.

     

    5.03 Conditions
      to
      All Credit Extensions.
      The obligation of
      each Lender (including the Swingline Lender) to make any Credit Extension
      (including its initial Credit

      
        
          
          

        

        
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    Extension)
      and the
      obligation of the L/C Issuer to Issue any Letter of Credit (including the
      initial Letter of Credit) shall be subject to the satisfaction of the following
      conditions precedent on the relevant Borrowing Date or Issuance
      Date:

     

    (a) Notice,
      Application.
      The
      Administrative Agent shall have received a Notice of Borrowing or in the case
      of
      any Issuance of any Letter of Credit, the L/C Issuer and the Administrative
      Agent shall have received an L/C Application or L/C Amendment Application,
      as
      required under Section 3.02;

     

    (b) Continuation
      of
      Representations and Warranties.
      The
      representations and warranties in Article
      VI
      shall be true and correct on and as of such Borrowing Date or Issuance Date
      with
      the same effect as if made on and as of such Borrowing Date or Issuance Date,
      except to the extent that such representations and warranties specifically
      refer
      to an earlier date, in which case they shall be true and correct as of such
      earlier date, and except that for purposes of this Section 5.03(b),
      the
      representations and warranties contained in Section 6.11(a)
      shall be deemed to
      refer to the most recent statements furnished pursuant to such
      Section.

     

    (c) No
      Existing
      Default.
      No Default shall
      exist or shall result from such Borrowing or Issuance; 

     

    (d) No
      Material
      Adverse Effect.
      There has
      occurred since December 31, 2005, no event or circumstance that has
      resulted or could reasonably be expected to result in a Material Adverse Effect;
      and

     

    (e) No
      Future
      Advance Notice.
      Neither the
      Administrative Agent nor any Lender shall have received from Holdings or any
      other Person any notice that any Collateral Document will no longer secure
      on a
      first priority basis future advances or future Loans to be made or extended
      under this Agreement.

     

    Each
      Notice of
      Borrowing and L/C Application or L/C Amendment Application submitted by Holdings
      hereunder shall constitute a representation and warranty by Holdings hereunder,
      as of the date of each such notice and as of each Borrowing Date or Issuance
      Date, as applicable, that the conditions in this Section 5.03
      are
      satisfied.

     

    ARTICLE
      VI.

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Each
      of Holdings
      and the Company represents and warrants to the Administrative Agent and each
      Lender that:

     

    6.01 Corporate
      Existence and Power.
      Holdings and each
      of its Subsidiaries:

     

    (a) is
      a corporation,
      limited liability company or partnership duly organized or formed, as the case
      may be, validly existing and in good standing under the laws of the jurisdiction
      of its incorporation or formation; 

     

    
      
        
        

      

      
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    (b) has
      the power and
      authority and all governmental licenses, authorizations, consents and approvals
      (i) to own its assets and carry on its business and (ii) in the case
      of any Loan Party, to execute, deliver, and perform its obligations under the
      Loan Documents;

     

    (c) is
      duly qualified,
      licensed and in good standing under the laws of each jurisdiction where its
      ownership, lease or operation of property or the conduct of its business
      requires such qualification, license or good standing; and

     

    (d) is
      in compliance
      with all Requirements of Law;

     

    except,
      in each
      case referred to in clauses (b)(i), (c) or (d) of this Section 6.01,
      to the extent
      that the failure to do so would not reasonably be expected to have a Material
      Adverse Effect.

     

    6.02 Corporate
      Authorization; No Contravention.
      The execution,
      delivery and performance by each Loan Party of this Agreement and each other
      Loan Document to which such Loan Party is party, have been duly authorized
      by
      all necessary corporate, limited liability company or other applicable
      organizational action, and do not and will not:

     

    (a) contravene
      the
      terms of any of that Person’s Organization Documents;

     

    (b) conflict
      with or
      result in any breach or contravention of, or the creation of any Lien under,
      any
      document evidencing any Indebtedness or any material Contractual Obligation
      to
      which such Person is a party or any order, injunction, writ or decree of any
      Governmental Authority to which such Person or its property is subject;
      or

     

    (c) violate
      any
      Requirement of Law.

     

    6.03 Governmental
      Authorization.
      No approval,
      consent, exemption, authorization, or other action by, or notice to, or filing
      with, any Governmental Authority (except for recordings or filings in connection
      with the Liens granted to the Administrative Agent under the Collateral
      Documents and any filings that may be required under Securities Laws in
      connection with the enforcement of such Liens) is necessary or required in
      connection with the execution, delivery or performance by, or enforcement
      against, any Loan Party of this Agreement or any other Loan
      Document.

     

    6.04 Binding
      Effect.
      This Agreement
      and each other Loan Document to which any Loan Party is a party constitute
      the
      legal, valid and binding obligations of such Loan Party, enforceable against
      such Loan Party in accordance with their respective terms, except as
      enforceability may be limited by applicable bankruptcy, insolvency, or similar
      laws affecting the enforcement of creditors’ rights generally or by equitable
      principles relating to enforceability.

      
        
          
          

        

        
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    6.05 Litigation.
      Except as
      specifically disclosed in Schedule 6.05,
      there are no
      actions, suits, proceedings, claims or disputes pending, or to the best
      knowledge of Holdings and the Company, threatened or contemplated, at law,
      in
      equity, in arbitration or before any Governmental Authority, against Holdings
      or
      any of its Subsidiaries or any of their respective properties
      which:

     

    (a) purport
      to affect
      or pertain to this Agreement or any other Loan Document, or any of the
      transactions contemplated hereby or thereby; or

     

    (b) are
      reasonably
      likely to result in an adverse result for Holdings or any of its Subsidiaries,
      which adverse result would reasonably be expected to have a Material Adverse
      Effect. No injunction, writ, temporary restraining order or any order of any
      nature has been issued by any court or other Governmental Authority purporting
      to enjoin or restrain the execution, delivery or performance of this Agreement
      or any other Loan Document, or directing that the transactions provided for
      herein or therein not be consummated as herein or therein provided.

     

    6.06 No
      Defaults.
      No Default exists
      or would result from the incurring of any Obligations by any Loan Party or
      from
      the grant or perfection of the Liens in favor of the Administrative Agent and
      the Lenders on the Collateral. Neither Holdings nor any Subsidiary is in default
      under or with respect to any Contractual Obligation in any respect which,
      individually or together with all such defaults, could reasonably be expected
      to
      have a Material Adverse Effect, or that would create an Event of Default under
      Section 9.01(e).

     

    6.07 ERISA
      Compliance.
      Except as
      specifically disclosed in Schedule 6.07:

     

    (a) Each
      Plan is in
      compliance in all material respects with the applicable provisions of ERISA,
      the
      Code and other federal or state law. Each Plan which is intended to qualify
      under section 401(a) of the Code has received a favorable determination
      letter from the IRS and to the best knowledge of Holdings and the Company,
      nothing has occurred which would cause the loss of such qualification. Holdings,
      the Company and each ERISA Affiliate have made all required contributions to
      any
      Plan subject to section 412 of the Code, and no application for a funding
      waiver or an extension of any amortization period pursuant to section 412
      of the Code has been made with respect to any Plan.

     

    (b) There
      are no
      pending or, to the best knowledge of Company, threatened claims, actions or
      lawsuits, or action by any Governmental Authority, with respect to any Plan
      which has resulted or would reasonably be expected to result in a Material
      Adverse Effect. There has been no prohibited transaction or violation of the
      fiduciary responsibility rules with respect to any Plan which has resulted
      or
      could reasonably be expected to result in a Material Adverse
      Effect.

     

    (c) Except
      as would not
      reasonably be expected to have a Material Adverse Effect, (i) no ERISA
      Event has occurred or is reasonably expected to occur; (ii) no Pension Plan
      has any Unfunded Pension Liability; (iii) neither Holdings nor any ERISA
      Affiliate has incurred, or reasonably expects to incur, any liability under
      Title IV of ERISA with respect to any Pension Plan (other than premiums due
      and
      not delinquent under section 4007 of ERISA); 

      
        
          
          

        

        
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    (iv) neither
      Holdings nor any ERISA Affiliate has incurred, or reasonably expects to incur,
      any liability (and no event has occurred which, with the giving of notice under
      section 4219 of ERISA, would result in such liability) under
      section 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and
      (v) neither Holdings nor any ERISA Affiliate has engaged in a transaction
      that could be subject to section 4069 or 4212(c) of ERISA.

     

    6.08 Use
      of Proceeds;
      Margin Regulations.
      The proceeds of
      the Loans and the Letters of Credit are to be used solely for the purposes
      set
      forth in and permitted by Section 7.12
      and Section 8.07.
      No Loan Party is
      generally engaged in the business of purchasing or selling Margin Stock or
      extending credit for the purpose of purchasing or carrying Margin
      Stock.

     

    6.09 Title
      to
      Properties; Liens.
      Holdings and each
      Subsidiary have good record and marketable title in fee simple to, or valid
      leasehold interests in, all real property necessary or used in the ordinary
      conduct of their respective businesses, except for such defects in title as
      could not, individually or in the aggregate, have a Material Adverse Effect.
      The
      real and personal property of Holdings and its Subsidiaries is subject to no
      Liens, other than Permitted Liens.

     

    6.10 Taxes.
      Holdings and its
      Subsidiaries have filed all Federal and other material tax returns and reports
      required to be filed, and have paid all Federal and other material taxes,
      assessments, fees and other governmental charges levied or imposed upon them
      or
      their properties, income or assets otherwise due and payable, except those
      which
      are being contested in good faith by appropriate proceedings and for which
      adequate reserves have been provided in accordance with GAAP. There is no
      proposed tax assessment against Holdings or any Subsidiary that would, if made,
      have a Material Adverse Effect.

     

    6.11 Financial
      Condition.
xvii)
      The audited
      consolidated balance sheet of Holdings and its Subsidiaries dated December
      31,
      2005, the unaudited balance sheet of Holdings and its Subsidiaries for the
      fiscal quarter ended September 30, 2006 and, in each case, the related
      consolidated statements of income or operations and cash flows for the fiscal
      period ended on that date:

     

    (i) were
      prepared in
      accordance with GAAP consistently applied throughout the period covered thereby,
      except as otherwise expressly noted therein, subject to year end audit
      adjustments and the absence of footnotes in the case of quarterly financial
      statements; 

     

    (ii) are
      complete and
      accurate in all material respects and fairly present the financial condition
      of
      Holdings and its Subsidiaries as of the date thereof and results of operations
      and cash flows for the period covered thereby; and

     

    (iii) except
      as
      specifically disclosed in Schedule 6.11,
      show all material
      Indebtedness and other material liabilities, direct or contingent, of Holdings
      and its consolidated Subsidiaries as of the date thereof, including liabilities
      for taxes, material commitments and Contingent Obligations.

     

    (b) Since
      December 31,
      2005, there has not been, nor is it reasonably likely that there will be, any
      Material Adverse Effect.

      
        
          
          

        

        
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    (c) Any
      pro forma
      financial statements of Holdings and its Subsidiaries furnished by Holdings
      to
      the Administrative Agent hereunder, and any financial projections furnished
      to
      the Administrative Agent hereunder (including the consolidated forecasted
      balance sheet and statements of income and cash flows of Holdings and its
      Subsidiaries delivered pursuant to Section 7.02(b)), were prepared by
      Holdings based on estimates and assumptions believed to be reasonable and fair
      in light of current conditions and facts known to Holdings on the date such
      pro
      forma financial statements or projections, as the case may be, were furnished
      to
      the Administrative Agent, and as of the date so furnished reflect, in the case
      of pro forma financial statements, Holdings good faith representation of the
      pro
      forma financial condition of Holdings and its Subsidiaries as of the date
      thereof and, in the case of financial projections, Holdings good faith and
      reasonable estimates of the future financial performance of Holdings and its
      Subsidiaries for the periods set forth therein.

     

    (d) Since
      the date of
      the most recent audited financial statements delivered to the Administrative
      Agent pursuant to Section 5.01(c)(i)
      or Section 7.01(a),
      no Internal
      Control Event has occurred that has had, or would reasonably be expected to
      have, a material impact on the financial results of operations of Holdings
      and
      its Subsidiaries.

     

    6.12 Environmental
      Matters.
      Holdings conducts
      in the ordinary course of business a review of the effect of existing
      Environmental Laws and existing Environmental Claims on its business, operations
      and properties, and as a result thereof Holdings has reasonably concluded that,
      except as specifically disclosed in Schedule 6.12,
      such
      Environmental Laws and Environmental Claims could not, individually or in the
      aggregate, reasonably be expected to have a Material Adverse
      Effect.

     

    (a) Except
      as
      specifically disclosed in Schedule 6.12,
      the ongoing
      operations of Holdings and each of its Subsidiaries comply in all respects
      with
      all Environmental Laws, except such non-compliance which would not (if enforced
      in accordance with applicable law) result in liability in excess of $5,000,000
      in the aggregate.

     

    (b) Holdings
      and each
      of its Subsidiaries have obtained all licenses, permits, authorizations and
      registrations required under any Environmental Law (“Environmental
      Permits”)
      and necessary
      for their respective ordinary course operations, all such Environmental Permits
      are in good standing, and Holdings and each of its Subsidiaries are in
      compliance with all material terms and conditions of such Environmental Permits,
      except to the extent the failure to obtain any such Environmental Permit or
      to
      maintain any such Environmental Permit in good standing or otherwise to be
      in
      compliance with the material terms thereof could not reasonably be expected
      to
      have a Material Adverse Effect.

     

    (c) Except
      as
      specifically disclosed in Schedule 6.12,
      none of Holdings,
      any of its Subsidiaries or any of their respective property or operations is
      subject to any outstanding written order from or agreement with any Governmental
      Authority, nor subject to any judicial or docketed administrative proceeding,
      respecting any Environmental Law, Environmental Claim or Hazardous Material
      that
      would reasonably be expected to give rise to a potential liability of Holdings
      and its Subsidiaries in excess of $5,000,000 in the aggregate.

      
        
          
          

        

        
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    (d) Except
      as
      specifically disclosed in Schedule 6.12,
      there are no
      Hazardous Materials or other conditions or circumstances existing with respect
      to any property of Holdings or any Subsidiary, or arising from operations prior
      to the Effective Date of Holdings or any of its Subsidiaries, that would
      reasonably be expected to give rise to Environmental Claims with a potential
      liability of Holdings and its Subsidiaries in excess of $5,000,000 in the
      aggregate for all such conditions, circumstances or property. In addition,
      (i) neither Holdings nor any Subsidiary has any underground storage tanks
      (A) that are not properly registered or permitted under applicable
      Environmental Laws, or (B) that are leaking or disposing of Hazardous
      Materials off-site, in each case, that would reasonably be expected to give
      rise
      to a potential liability of Holdings and its Subsidiaries in excess of
      $5,000,000 in the aggregate and (ii) Holdings and its Subsidiaries have
      notified all of their employees of the existence, if any, of any health hazard
      arising from the conditions of their employment and have met all notification
      requirements under Title III of CERCLA and all other Environmental
      Laws.

     

    6.13 Collateral
      Documents.

     

    (a) (i) The
      provisions of each of the Collateral Documents were, as of the closing of the
      Existing Credit Agreement, and as amended remain, effective to create in favor
      of the Administrative Agent for the benefit of the Lenders, a legal, valid
      and
      enforceable first priority Lien in all right, title and interest of Holdings,
      or
      the applicable Loan Party (as the case may be), in the Collateral described
      therein to secure the Obligations, subject only to Permitted Liens,
      (ii) all filings and other actions necessary or desirable to perfect and
      maintain the perfection and first priority status of such Liens have been duly
      made or taken and remain in full force and effect and (iii) each
      Intellectual Property Security Agreement has been delivered to the
      Administrative Agent when required hereby or by the Security Agreement for
      filing in the U.S. Patent and Trademark Office and the U.S. Copyright
      Office.

     

    (b) All
      representations
      and warranties of Holdings and each of its Subsidiaries party thereto contained
      in the Collateral Documents are true and correct.

     

    6.14 Regulated
      Entities.
      None of Holdings,
      any Person Controlling Holdings, or any Subsidiary is or is required to be
      registered as an “investment company” under the Investment Company Act of
      1940.

     

    6.15 No
      Burdensome
      Restrictions.
      Neither Holdings
      nor any Subsidiary is a party to or bound by any Contractual Obligation, or
      subject to any restriction in any Organization Document, or any Requirement
      of
      Law, which could reasonably be expected to have a Material Adverse Effect.
      Except as set forth on Schedule 6.15
      or otherwise
      permitted hereunder, neither Holdings nor any Subsidiary is a party to or bound
      by any Contractual Obligation which restricts, limits or prohibits the payment
      of dividends by any Subsidiary or the making of any other distribution in
      respect of such Subsidiary’s capital stock or other equity
      interests.

     

    6.16 Copyrights,
      Patents, Trademarks and Licenses, Etc.
      Holdings or its
      Subsidiaries own or are licensed or otherwise have the right to use all of
      the
      patents, trademarks, service marks, trade names, copyrights, contractual
      franchises, authorizations and other rights that are reasonably necessary for
      the operation of their respective businesses, without conflict with the rights
      of any other Person, except for such conflicts as would not reasonably
      be

      
        
          
          

        

        
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    expected
      to have a
      Material Adverse Effect. To the best knowledge of Holdings and the Company,
      no
      slogan or other advertising device, product, process, method, substance, part
      or
      other material now employed, or now contemplated to be employed, by Holdings
      or
      any Subsidiary infringes upon any rights held by any other Person, except for
      those infringements that would, individually or in the aggregate, not reasonably
      be expected to have a Material Adverse Effect. Except as specifically disclosed
      in Schedule 6.05,
      no claim or
      litigation regarding any of the foregoing is pending or, to the best knowledge
      of Holdings and the Company, threatened, and no patent, invention, device,
      application, principle or any statute, law, rule, regulation, standard or code
      is pending or, to the best knowledge of Holdings and the Company, proposed,
      which, in either case, could reasonably be expected to have a Material Adverse
      Effect.

     

    6.17 Subsidiaries.
      As of the
      Effective Date, Holdings has no Subsidiaries other than those specifically
      disclosed in part (a) of Schedule 6.17
      and has no equity
      investments in any other Person other than those specifically disclosed in
      part (b) of Schedule 6.17.
      All U.S.
      Subsidiaries of Holdings as of the Effective Date are identified as such on
      part (a) of Schedule 6.17,
      as well as a
      denotation as to whether such Subsidiary is a Wholly-Owned Subsidiary or
      Non-Wholly-Owned Subsidiary. All of the outstanding equity interests in the
      Subsidiaries of Holdings which are owned directly or indirectly by Holdings
      have
      been validly issued, are fully paid and nonassessable and are owned, as of
      the
      Effective Date, in the amounts specified on Part (a) of Schedule 6.17
      free and clear of
      all Liens, other than Liens granted to the Administrative Agent.

     

    6.18 Insurance.
      Except as
      specifically disclosed in Schedule 6.18,
      the properties of
      Holdings and its Subsidiaries are insured with financially sound and reputable
      insurance companies not Affiliates of Holdings, in such amounts, with such
      deductibles and covering such risks as are deemed to be appropriate by Holdings
      in the exercise of its reasonable business judgment.

     

    6.19 Swap
      Obligations.
xviii)
      Neither Holdings
      nor any of its Subsidiaries has incurred any outstanding obligations under
      any
      Swap Contracts, other than Permitted Swap Obligations. In the ordinary course
      of
      managing its business, Holdings undertakes its own independent assessment of
      its
      consolidated assets, liabilities and commitments and considers appropriate
      means
      of mitigating and managing risks associated with such matters, and Holdings
      has
      not relied on any swap counterparty or any Affiliate of any swap counterparty
      in
      determining whether to enter into any Swap Contract.

     

    (b) Neither
      Holdings
      nor any of its Subsidiaries has entered into any master agreement relating
      to
      Swap Contracts and under which termination values resulting from Swap Contracts
      that are Specified Swap Contracts are nettable against termination values
      resulting from Swap Contracts that are not Specified Swap Contracts, unless
      only
      Specified Swap Contracts are outstanding under such master
      agreement.

     

    6.20 Full
      Disclosure.
      None of the
      representations or warranties made by any Loan Party in the Loan Documents
      as of
      the date such representations and warranties are made or deemed made, and none
      of the statements contained in any exhibit, report, statement or certificate
      furnished by or on behalf of any Loan Party in connection with the Loan
      Documents

      
        
          
          

        

        
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    (including
      the
      offering and disclosure materials delivered by or on behalf of any Loan Party
      to
      the Lenders prior to the Effective Date), contains any untrue statement of
      a
      material fact (when taken as a whole) or omits any material fact required to
      be
      stated therein or necessary to make the statements made therein, in light of
      the
      circumstances under which they are made, not misleading as of the time when
      made
      or delivered; provided,
however,
      that with respect
      to information relating to Holdings’ industry generally and not to Holdings or
      its Subsidiaries specifically, the Loan Parties’ represent and warrant only that
      such information was derived from sources the Loan Parties believe to be
      reliable and the Loan Parties have no reason to believe at the time such
      information was furnished or provided to the Administrative Agent or any Lender
      that such information was misleading; and provided further
      that to the extent
      any such information, report, financial statement, exhibit or schedule was
      based
      upon or constitutes a forecast or projection, such Loan Party represents only
      that it acted in good faith and utilized reasonable assumptions and due care
      in
      the preparation of such information, report, financial statement, exhibit or
      schedule (it being understood that forecasts and projections by their nature
      involve approximations and uncertainties).

     

    6.21 Internal
      Controls.
      To the extent
      that Holdings is a public corporation:

     

    (a) Except
      as set forth
      in the reports of Holdings filed with the SEC under the Exchange Act, Holdings
      has established and maintains disclosure controls and procedures (as such term
      is defined in Rule 13a-14 under the Exchange Act), which (i) are designed
      to ensure that material information relating to Holdings, including its
      consolidated subsidiaries, is made known to Holdings’ principal executive
      officer and its principal financial officer or persons performing similar
      functions by others within those entities, particularly during the periods
      in
      which the periodic reports required under the Exchange Act are being prepared;
      (ii) have been evaluated for effectiveness as of a date within ninety (90)
      days prior to the filing of Holdings’ most recent annual or quarterly report
      filed with the SEC; and (iii) are effective in all material respects to
      perform the functions for which they were established;

     

    (b) Except
      as set forth
      in the reports of Holdings filed with the SEC under the Exchange Act, based
      on
      the evaluation of its disclosure controls and procedures, Holdings is not aware
      of (i) any significant deficiency in the design or operation of internal
      controls over financial reporting which are reasonably likely to adversely
      affect Holdings’ ability to record, process, summarize and report financial
      information in any material respect or (ii) any Internal Control Event;
      and

     

    (c) Since
      the date of
      the most recent evaluation of such disclosure controls and procedures, except
      as
      set forth in the reports of Holdings filed with the SEC under the Exchange
      Act,
      there have been no significant changes in internal controls over financial
      reporting or in other factors that could materially affect internal controls
      over financial reporting, including any corrective actions with regard to
      significant deficiencies and material weaknesses.

      
        
          
          

        

        
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    ARTICLE
      VII.

     

    AFFIRMATIVE
      COVENANTS

     

    So
      long as any Lender shall have any Commitment hereunder, or any Loan or other
      Obligation shall remain unpaid or unsatisfied, or any Letter of Credit shall
      remain outstanding, unless the Majority Lenders waive compliance in
      writing:

     

    7.01 Financial
      Statements.
      Holdings shall
      deliver to the Administrative Agent (which will promptly deliver to each
      Lender):

     

    (a) as
      soon as
      available, but not later than ninety (90) days after the end of each fiscal
      year, a copy of the audited consolidated balance sheet of Holdings and its
      Subsidiaries as at the end of such year and the related consolidated statements
      of income or operations, shareholders’ equity, retained earnings and cash flows
      for such year, setting forth in each case in comparative form the figures for
      the previous fiscal year, and accompanied by (i) the report and opinion of
      KPMG or another nationally recognized registered public accounting firm (the
      “Independent
      Auditor”)
      which report and
      opinion shall be prepared in accordance with generally accepted auditing
      standards and applicable Securities Laws and shall not be subject to any “going
      concern” or like qualification or exception or any qualification or exception as
      to the scope of such audit and which shall state that such consolidated
      financial statements present fairly the financial position and the results
      of
      operations and cash flows of Holdings and its Subsidiaries for the periods
      indicated in conformity with GAAP applied on a basis consistent with prior
      years
      and (ii) an attestation report of such Independent Auditor as to Holdings’
internal controls pursuant to Section 404
      of
      Sarbanes-Oxley;

     

    (b) as
      soon as
      available, but not later than forty-five (45) days after the end of each of
      the
      first three fiscal quarters of each fiscal year, a copy of the unaudited
      consolidated balance sheet of Holdings and its Subsidiaries as of the end of
      such quarter and the related consolidated statements of income, shareholders’
equity and cash flows for the period commencing on the first day and ending
      on
      the last day of such quarter, and certified by a Responsible Officer of Holdings
      as being complete and accurate in all material respects and fairly presenting,
      in accordance with GAAP (subject to year-end audit adjustments and the absence
      of footnotes), the financial position and the results of operations and cash
      flows of Holdings and the Subsidiaries; and

     

    (c) promptly,
      such
      other financial statements and information (including financial information
      regarding Minority Investments) as the Administrative Agent, at the request
      of
      any Lender, may from time to time request.

     

    As
      to any information contained in materials furnished pursuant to Section 7.02(d),
      Holdings shall
      not be separately required to furnish such information under Section 7.01(a)
      or Section 7.01(b)
      above, but the
      foregoing shall not be in derogation of the obligation of Holdings to furnish
      the information and materials described in Section 7.01(a)
      and Section 7.01(b)
      above at the times
      specified therein.

      
        
          
          

        

        
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    7.02 Certificates;
      Other Information.
      Holdings shall
      furnish to the Administrative Agent (which shall promptly furnish to each
      Lender), in form and detail satisfactory to the Administrative Agent and the
      Majority Lenders:

     

    (a) concurrently
      with
      the delivery of the financial statements referred to in Section 7.01(a),
      a certificate of
      the Independent Auditor stating that in the course of the regular examination
      of
      the financial statements of Holdings and its Subsidiaries, which examination
      was
      conducted by such accounting firm in accordance with GAAP, nothing has come
      to
      the attention of the Independent Auditor which would cause it to believe that
      an
      Event of Default under Section 8.19
      has occurred and
      is continuing, or if, in the opinion of the Independent Auditor, an Event of
      Default under Section 8.19
      has occurred and
      is continuing, a statement as to the nature thereof.

     

    (b) within
      ninety (90)
      days after the close of each fiscal year, an update of the projections delivered
      to the Administrative Agent and the Lenders prior to the Effective Date (the
      “Effective
      Date
      Projections”)
      for the
      then-current and next succeeding fiscal years through and including the 2013
      fiscal year, certified by a Responsible Officer of Holdings, together with
      a
      statement of such Responsible Officer explaining in reasonable detail any
      significant variances from the Effective Date Projections;

     

    (c) concurrently
      with
      the delivery of the financial statements referred to in Section 7.01(a)
      and Section 7.01(b),
      a completed
      Compliance Certificate certified by a Responsible Officer of
      Holdings;

     

    (d) promptly,
      copies of
      all financial statements and reports that Holdings sends to its shareholders,
      and copies of all financial statements and regular, periodical or special
      reports (including Forms 10K, 10Q and 8K) that Holdings or any Subsidiary may
      make to, or file with, the SEC;

     

    (e) promptly
      upon
      sending or receipt, copies of any and all management letters and correspondence
      relating to management letters, sent or received by Holdings or any of its
      Subsidiaries to or from the Independent Auditor;

     

    (f) at
      the same time it
      is provided to the holders of any Permitted Subordinated Debt, any notices
      and
      other information provided to such holders pursuant to the reporting and notices
      provisions of the Subordinated Debt Documents (without duplication of any
      notices, financial statements and other information required
      hereunder);

     

    (g) within
      twenty (20)
      days of the Administrative Agent’s or any Lender’s request therefor, (i) a
      current list of the names, addresses and outstanding debts of all account
      debtors, and (ii) a current list of the names, addresses and outstanding
      amounts due all creditors of Holdings or any Subsidiary;

     

    (h) concurrently
      with
      the delivery of the financial statements referred to in Section 7.01(a)
      and Section 7.01(b),
      a completed
      Update Certificate, certified by a Responsible Officer of Holdings;

      
        
          
          

        

        
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    (i) promptly,
      and in
      any event within ten Business Days after receipt thereof by Holdings or any
      Subsidiary, copies of each notice or other correspondence received from the
      SEC
      concerning any investigation or possible investigation or other inquiry by
      such
      agency regarding financial or other operational results of Holdings or any
      Subsidiary thereof; and 

     

    (j) promptly,
      such
      additional information regarding the business, financial or corporate affairs
      of
      Holdings or any Subsidiary as the Administrative Agent, at the request of any
      Lender, may from time to time reasonably request.

     

    7.03 Notices.
      Holdings shall
      promptly notify the Administrative Agent (which shall promptly notify each
      Lender):

     

    (a) of
      the occurrence
      of any Default, and of the occurrence or existence of any event or circumstance
      that foreseeably will become a Default;

     

    (b) of
      any matter that
      has resulted or could reasonably be expected to result in a Material Adverse
      Effect, including (i) any breach or non-performance of, or any default
      under, any Contractual Obligation of Holdings or any of its Subsidiaries which
      has resulted or could result in a Material Adverse Effect; and (ii) any
      dispute, litigation, investigation, proceeding or suspension which may exist
      at
      any time between Holdings or any of its Subsidiaries and any Governmental
      Authority (including under or pursuant to any Environmental Laws) which has
      resulted or could reasonably be expected to result in a Material Adverse
      Effect;

     

    (c) of
      the commencement
      of, or any material development in, any litigation or proceeding affecting
      Holdings or any Subsidiary (i) which, if adversely determined, would
      reasonably be expected to have a Material Adverse Effect, or (ii) in which
      the relief sought is an injunction or other stay of the performance of this
      Agreement or any Loan Document;

     

    (d) upon,
      but in no
      event later than ten (10) days after, becoming aware of (i) any and all
      material enforcement, cleanup, removal or other governmental or regulatory
      actions instituted, completed or threatened against Holdings or any Subsidiary
      or any of their respective properties pursuant to any applicable Environmental
      Laws, (ii) all other Environmental Claims, and (iii) any environmental
      or similar condition on any real property adjoining or in the vicinity of the
      property of Holdings or any Subsidiary that could reasonably be anticipated
      to
      cause such property or any part thereof to be subject to any material
      restrictions on the ownership, occupancy, transferability or use of such
      property under any Environmental Laws;

     

    (e) of
      any other
      litigation or proceeding affecting Holdings or any of its Subsidiaries which
      Holdings would be required to report to the SEC pursuant to the Exchange Act,
      within four (4) days after reporting the same to the SEC;

     

    (f) of
      the occurrence
      of any of the following events affecting Holdings or any ERISA Affiliate (but
      in
      no event more than ten (10) days after such event), and deliver to the
      Administrative Agent and each Lender a copy of any notice with respect to such
      event that is

      
        
          
          

        

        
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    filed
      with a
      Governmental Authority and any notice delivered by a Governmental Authority
      to
      Holdings or any ERISA Affiliate with respect to such event:

     

    (i) an
      ERISA
      Event;

     

    (ii) a
      material increase
      in the Unfunded Pension Liability of any Pension Plan;

     

    (iii) the
      adoption of, or
      the commencement of contributions to, any Plan subject to section 412 of
      the Code by Holdings or any ERISA Affiliate; or

     

    (iv) the
      adoption of any
      amendment to a Plan subject to section 412 of the Code, if such amendment
      results, or would reasonably be expected to result, in a material increase
      in
      contributions or Unfunded Pension Liability;

     

    (g) of
      any material
      change in accounting policies or financial reporting practices by Holdings
      or
      any of its consolidated Subsidiaries;

     

    (h) upon
      the request
      from time to time of the Administrative Agent or any Lender, the Swap
      Termination Values, together with a description of the method by which such
      amounts were determined, relating to any Swap Contracts to which Holdings or
      any
      of its Subsidiaries is party;

     

    (i) the
      occurrence of
      any Event of Loss exceeding $5,000,000;

     

    (j) of
      the entry by
      Holdings into any Specified Swap Contract, together with the details thereof;
      

     

    (k) of
      the occurrence
      of any default, event of default, termination event or other event under any
      Specified Swap Contract that after the giving of notice, passage of time or
      both, would permit either counterparty to such Specified Swap Contract to
      terminate early any or all trades relating to such contract; and

     

    (l) of
      the occurrence
      or existence of any Internal Control Event.

     

    Each
      notice under
      this Section 7.03
      shall be
      accompanied by a written statement by a Responsible Officer of Holdings setting
      forth details of the occurrence referred to therein, and stating what action
      Holdings or any affected Subsidiary proposes to take with respect thereto and
      at
      what time. Each notice under Section 7.03(a)
      shall describe
      with particularity any and all clauses or provisions of this Agreement or other
      Loan Document that have been (or foreseeably will be) breached or
      violated.

     

    7.04 Preservation
      of
      Corporate Existence, Etc.
      Holdings shall,
      and shall cause each Subsidiary to, except in connection with transactions
      permitted by Section 8.03
      and sales of
      assets permitted by Section 8.02:

     

    (a) preserve
      and
      maintain in full force and effect its (i) legal existence and
      (ii) good standing under the laws of its state or jurisdiction of
      incorporation or formation;

      
        
          
          

        

        
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    (b) preserve
      and
      maintain in full force and effect all governmental rights, privileges,
      qualifications, permits, licenses and franchises necessary or desirable in
      the
      normal conduct of its business;

     

    (c) use
      reasonable
      efforts, in the ordinary course of business, to preserve its business
      organization and goodwill; and

     

    (d) preserve
      or renew
      all of its registered patents, trademarks, trade names and service marks, the
      non preservation of which could reasonably be expected to have a Material
      Adverse Effect.

     

    7.05 Maintenance
      of
      Property.
      Holdings shall,
      and shall cause each Subsidiary to, maintain, and preserve all its property
      which is used or useful in its business in good repair and condition (ordinary
      wear and tear excepted), and from time to time make necessary repairs, renewals
      and replacements thereto so that its property shall be preserved and maintained
      consistent with Holdings’ or such Subsidiary’s past practice.

     

    7.06 Insurance.
      In addition to
      insurance requirements set forth in the Collateral Documents, Holdings shall
      maintain, and shall cause each Subsidiary to maintain, with financially sound
      and reputable independent insurers, insurance with respect to its properties
      and
      business against loss or damage of the kinds customarily insured against by
      Persons engaged in the same or similar business, of such types and in such
      amounts as are customarily carried under similar circumstances by such other
      Persons, including workers’ compensation insurance, public liability and
      property and casualty insurance. All such insurance shall name the
      Administrative Agent as loss payee and as additional insured, for the benefit
      of
      the Lenders, as their interests may appear. All casualty and key man insurance
      maintained by Holdings shall name the Administrative Agent as loss payee and
      all
      liability insurance shall name the Administrative Agent as additional insured
      for the benefit of the Lenders, as their interests may appear. Upon the request
      of the Administrative Agent or any Lender, Holdings shall furnish the
      Administrative Agent, with sufficient copies for each Lender, at reasonable
      intervals (but not more than once per calendar year) a certificate of a
      Responsible Officer of Holdings (and, if requested by the Administrative Agent,
      any insurance broker of Holdings) setting forth the nature and extent of all
      insurance maintained by Holdings and its Subsidiaries in accordance with this
      Section 7.06
      or any Collateral
      Documents (and which, in the case of a certificate of a broker, were placed
      through such broker).

     

    7.07 Payment
      of
      Obligations.
      Holdings shall,
      and shall cause each of its Subsidiaries to, pay and discharge as the same
      shall
      become due and payable, all their respective obligations and liabilities,
      including:

     

    (a) all
      material tax
      liabilities, assessments and governmental charges or levies upon it or its
      properties or assets, unless the same are being contested in good faith by
      appropriate proceedings and adequate reserves in accordance with GAAP are being
      maintained by Holdings or such Subsidiary;

     

    (b) all
      lawful claims
      which, if unpaid, would by law become a Lien upon its property not constituting
      a Permitted Lien; and

      
        
          
          

        

        
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    (c) all
      Indebtedness,
      as and when due and payable, but subject to any subordination provisions
      contained in any instrument or agreement evidencing such Indebtedness (except
      where failure to do so would not otherwise constitute a Default
      hereunder).

     

    7.08 Compliance
      with
      Laws.
      Holdings shall
      comply, and shall cause each Subsidiary to comply, with all Requirements of
      Law
      of any Governmental Authority having jurisdiction over it or its business
      (including the Federal Fair Labor Standards Act), except such as may be
      contested in good faith or as to which a bona fide dispute may exist or where
      the failure to do so could not reasonably be expected to have a Material Adverse
      Effect.

     

    7.09 Compliance
      with
      ERISA.
      Holdings shall,
      and shall cause each of its ERISA Affiliates to: (a) maintain each Plan in
      compliance with the applicable provisions of ERISA, the Code and other federal
      or state law except for any noncompliance that would not reasonably be expected
      to have a Material Adverse Effect; (b) cause each Plan which is qualified
      under section 401(a) of the Code to maintain such qualification; and (c)
      make all required contributions to any Plan subject to section 412 of the
      Code.

     

    7.10 Inspection
      of
      Property and Books and Records.
xix)
      Holdings shall,
      and shall cause each Subsidiary to, maintain proper books of record and account,
      in which full, true and correct entries in conformity with GAAP consistently
      applied shall be made of all financial transactions and matters involving the
      assets and business of Holdings and such Subsidiary. Holdings shall permit,
      and
      shall cause each Subsidiary to permit, representatives and independent
      contractors of the Administrative Agent or any Lender to visit and inspect
      any
      of their respective properties, to examine their respective corporate,
      financial, operating and other records, and make copies thereof or abstracts
      therefrom, and to discuss their respective affairs, finances and accounts with
      their respective directors, officers, and independent public accountants, all
      at
      the expense of Holdings and the Company and at such reasonable times during
      normal business hours and as often as may be reasonably desired, upon reasonable
      advance notice to Holdings; provided,
however,
      when an Event of
      Default exists the Administrative Agent or any Lender may do any of the
      foregoing at any time during normal business hours and without advance
      notice.

     

    (b) Without
      limiting
      the generality of Section 7.10(a),
      as frequently as
      the Majority Lenders may deem appropriate, each of Holdings and the Company
      will
      provide Administrative Agent or its designee access to Holdings’ and the
      Company’s records and premises and allow such auditors or appraisers to conduct
      audits of Holdings’ and its Subsidiaries’ accounts, including accounts and
      inventory. Holdings shall pay all reasonable fees and expenses of one such
      audit
      in any 12-month period; provided,
however,
      that during the
      existence of any Event of Default, Holdings shall pay all reasonable fees and
      expenses of each such audit.

     

    7.11 Environmental
      Laws.
xx)
      Holdings shall,
      and shall cause each Subsidiary to, conduct its operations and keep and maintain
      its property in compliance with all Environmental Laws, except to the extent
      the
      failure to comply therewith could not reasonably be expected to have a Material
      Adverse Effect.

      
        
          
          

        

        
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    (b) Upon
      the written
      request of the Administrative Agent or any Lender, Holdings shall submit and
      cause each of its Subsidiaries to submit, to the Administrative Agent, at
      Holdings’ sole cost and expense, at reasonable intervals, a report providing an
      update of the status of any environmental, health or safety compliance, hazard
      or liability issue identified in any notice or report required pursuant to
      Section 7.03(d),
      that could,
      individually or in the aggregate, result in liability in excess of
      $1,000,000.

     

    7.12 Use
      of
      Proceeds.
      Holdings shall,
      directly or indirectly, use the proceeds of the Loans (i) for Permitted
      Acquisitions, (ii) for making Investments permitted under Section 8.04
      or Restricted
      Payments under Section 8.11,
      (iii) to
      refinance existing Indebtedness and (iv) for working capital and other
      general corporate purposes not in contravention of any Requirement of Law or
      of
      any Loan Document.

     

    7.13 Additional
      Guarantors.
xxi)
      If a Minority
      Investment or Subsidiary shall at any time after the Effective Date become
      a
      U.S. Wholly-Owned Subsidiary, or if Holdings, or any U.S. Wholly-Owned
      Subsidiary of Holdings, otherwise shall incorporate, create or acquire any
      U.S.
      Wholly-Owned Subsidiary, Holdings shall cause such U.S. Wholly-Owned Subsidiary
      to furnish promptly, but in no event more than thirty (30) days thereafter,
      each
      of the following to the Administrative Agent:

     

    (i) a
      duly executed
      notice and agreement in substantially the form of Exhibit
      G
      (an “Additional
      Guarantor Assumption Agreement”);

     

    (ii) (A) copies
      of
      the resolutions of the board of directors (or equivalent governing body) of
      such
      Subsidiary approving and authorizing the execution, delivery and performance
      by
      such Subsidiary of its Additional Guarantor Assumption Agreement and this
      Agreement, certified as of the date of such Additional Guarantor Assumption
      Agreement (the “Additional
      Guarantor Accession Date”)
      by the Secretary
      or an Assistant Secretary (or other appropriate officer) of such Subsidiary;
      (B) a certificate of the Secretary or Assistant Secretary (or other
      appropriate officer) of such Subsidiary certifying the names and true signatures
      of the officers of such Subsidiary authorized to execute and deliver and
      perform, as applicable, its Additional Guarantor Assumption Agreement, this
      Agreement and all other Loan Documents to be delivered hereunder;
      (C) copies of the articles or certificate of incorporation and bylaws (or
      other applicable Organization Documents) of such Subsidiary as in effect on
      the
      Additional Guarantor Accession Date, certified by the Secretary or Assistant
      Secretary (or other appropriate officer) of such Subsidiary as of the Additional
      Guarantor Accession Date; and (D) an opinion of counsel to such Subsidiary
      and addressed to the Administrative Agent and the Lenders, substantially in
      the
      form of Exhibit H;
      and 

     

    (iii) (A) such
      amendments to the schedules to the Security Agreement as shall be required
      in
      connection with the accession of such Subsidiary thereto; and (B) UCC-1
      financing statements for each jurisdiction in which such filing is necessary
      to
      perfect the security interest of the Administrative Agent on behalf of the
      Lenders in the Collateral of such Subsidiary and in which the Administrative
      Agent requests that such filing be made.

     

    (b) Additionally,
      Holdings and such Subsidiary shall have executed and delivered to the
      Administrative Agent such other items as reasonably requested by the

      
        
          
          

        

        
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    Administrative
      Agent in connection with the foregoing, including officers’ certificates, search
      reports, control agreements and other certificates and documents.

     

    7.14 Additional
      Stock
      Pledges.
      If Holdings,
      directly or indirectly, incorporates, creates or acquires any additional
      Subsidiary, or if any Person in which Holdings, directly or indirectly, has
      a
      Minority Investment shall become a Subsidiary, then within ten (10) days
      thereafter, Holdings shall (i) (A) pledge the capital stock,
      membership interests or other equity interests of such additional Subsidiary
      to
      the Administrative Agent pursuant to the Security Agreement, if such stock,
      membership interest or other interest is directly owned by Holdings, or
      (B) if such stock, membership interest or other interest is owned by a
      Subsidiary, cause such Subsidiary to pledge the capital stock, membership
      interest or other equity interest of such additional Subsidiary to the
      Administrative Agent pursuant to the Security Agreement, and (ii) execute
      and deliver, or cause such Subsidiary to have executed and delivered, to the
      Administrative Agent stock transfer powers executed in blank with signatures
      guaranteed as the Administrative Agent shall request, such UCC-1 financing
      statements (as furnished by the Administrative Agent) in each jurisdiction
      in
      which such filing is necessary to perfect the security interest of the
      Administrative Agent in the Collateral with respect to Holdings or such
      Subsidiary, and (iii) deliver such other items as reasonably requested by
      the Administrative Agent in connection with the foregoing, including
      resolutions, incumbency and officers’ certificates, opinions of counsel, search
      reports, control agreements and other certificates and documents; provided,
however,
      that if any such
      additional Subsidiary is not a U.S. Subsidiary, in no event shall more than
      65%
      of the voting capital stock (and 100% of the non-voting stock) of any such
      Subsidiary be required to be so pledged.

     

    7.15 Further
      Assurances.
xxii)
      Holdings shall
      ensure that all written information, exhibits and reports furnished to the
      Administrative Agent or the Lenders do not and will not contain, when considered
      with all other information so furnished, any untrue statement of a material
      fact
      and do not and will not omit to state any material fact or any fact necessary
      to
      make the statements contained therein not misleading in light of the
      circumstances in which made, and will promptly disclose to the Administrative
      Agent and the Lenders and correct any material defect or error that may be
      discovered therein or in any Loan Document or in the execution, acknowledgement
      or recordation thereof, provided
      that to the extent
      any such written information, exhibit or report was based upon or constitutes
      a
      forecast or projection, Holdings shall ensure only that it acted in good faith
      and utilized reasonable assumptions and due care in the preparation of such
      information, exhibit or report (it being understood that forecasts and
      projections by their nature involve approximations and
      uncertainties).

     

    (b) Promptly
      upon
      request by the Administrative Agent or the Majority Lenders, Holdings shall
      (and
      shall cause any Guarantor to) do, execute, acknowledge, deliver, record,
      re-record, file, re-file, register and re-register, any and all such further
      acts, deeds, conveyances, security agreements, assignments, estoppel
      certificates, financing statements and continuations thereof, termination
      statements, notices of assignment, transfers, certificates, assurances and
      other
      instruments the Administrative Agent or such Lenders, as the case may be, may
      reasonably require from time to time in order (i) to carry out more
      effectively the purposes of this Agreement or any other Loan Document,
      (ii) to subject to the Liens created by any of the Collateral Documents any
      of the properties, rights or interests covered by any of the Collateral
      Documents, (iii) to perfect and maintain the validity, effectiveness and
      priority of any of the

      
        
          
          

        

        
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    Collateral
      Documents and the Liens intended to be created thereby, and (iv) to better
      assure, convey, grant, assign, transfer, preserve, protect and confirm to the
      Administrative Agent and Lenders the rights granted or now or hereafter intended
      to be granted to the Lenders under any Loan Document or under any other document
      executed in connection therewith.

     

    (c) Without
      limiting
      the generality of the foregoing Sections
      7.15(a)
      and 7.15(b),
      Holdings shall
      complete the post-closing undertakings set forth on Schedule
      7.15(c)
      on or prior to the
      applicable dates specified for completion of such undertakings set forth in
      such
      Schedule.

     

    7.16 Intercompany
      Notes.
      Holdings shall
      use commercially reasonable efforts (i) to deliver to the Administrative
      Agent, within sixty (60) days after the Effective Date, as Collateral for the
      Obligations, promissory notes in form and substance satisfactory to the
      Administrative Agent evidencing all extensions of credit by Holdings to any
      of
      its Subsidiaries that are not Loan Parties, which extensions of credit shall
      be
      secured by a first priority Lien on all of the tangible and intangible property
      of such Subsidiary, and which Lien shall have been assigned to the
      Administrative Agent as Collateral for the Obligations and (ii) to ensure
      that any such promissory notes are demand notes (including by way of converting
      any notes that are not demand notes as of the Effective Date into demand notes
      by the sixtieth day thereafter). In the event that Holdings is unable to comply
      with either clause of the preceding sentence, Holdings shall not renew or amend
      (including to increase the maximum available borrowings under) the notes with
      respect to extensions of credit referred to in the preceding
      sentence.

     

    ARTICLE
      VIII.

     

    NEGATIVE
      COVENANTS

     

    So
      long as any Lender shall have any Commitment hereunder, or any Loan or other
      Obligation shall remain unpaid or unsatisfied, or any Letter of Credit shall
      remain outstanding, unless the Majority Lenders waive compliance in
      writing:

     

    8.01 Limitation
      on
      Liens.
xxiii)
      Holdings shall
      not, and shall not suffer or permit any Subsidiary to, directly or indirectly,
      make, create, incur, assume or suffer to exist any Lien upon or with respect
      to
      any part of its property, whether now owned or hereafter acquired, other than
      the following (“Permitted
      Liens”):

     

    (i) any
      Lien existing
      on the Effective Date and set forth in Schedule 8.01,
provided
      that (a) such
      Lien (including any Lien securing Permitted Refinancing Indebtedness) shall
      not
      attach to any property or asset of Holdings or any Subsidiary other than the
      property or asset originally so encumbered on the Effective Date and
      (b) such Lien shall secure only those obligations that it secures on the
      Effective Date and Permitted Refinancing Indebtedness in respect
      thereof;

     

    (ii) any
      Lien created
      under any Loan Document;

     

    (iii) Liens
      for taxes,
      fees, assessments or other governmental charges which are not delinquent or
      remain payable without penalty, or which are being

      
        
          
          

        

        
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    contested
      in good
      faith and by appropriate proceedings, if adequate reserves in accordance with
      GAAP are maintained by Holdings or such Subsidiary, which proceedings have
      the
      effect of preventing the forfeiture or sale of the property subject
      thereto;

     

    (iv) carriers’,
      warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s or other
      similar Liens arising in the ordinary course of business which are not
      delinquent or which are being contested in good faith and by appropriate
      proceedings, if adequate reserves in accordance with GAAP are maintained by
      Holdings or such Subsidiary, which proceedings have the effect of preventing
      the
      forfeiture or sale of the property subject thereto;

     

    (v) Liens
      (other than
      any Lien imposed by ERISA and other than on the Collateral) consisting of
      pledges or deposits required in the ordinary course of business in connection
      with workers’ compensation, unemployment insurance and other social security
      legislation;

     

    (vi) Liens
      securing
      (A) the non-delinquent performance of bids, trade contracts (other than for
      borrowed money), leases (other than Capital Leases), statutory obligations,
      (B) contingent obligations on surety and appeal bonds, and (C) other
      non-delinquent obligations of a like nature; in each case, incurred in the
      ordinary course of business, provided
      all such Liens in
      the aggregate would not (even if enforced) cause a Material Adverse
      Effect;

     

    (vii) Liens
      consisting of
      judgment or judicial attachment liens with respect to any judgment that does
      not
      constitute an Event of Default under Section 9.01(i);

     

    (viii) easements,
      rights
      of way, restrictions and other similar encumbrances incurred in the ordinary
      course of business which, in the aggregate, are not substantial in amount,
      and
      which do not in any case materially detract from the value of the property
      subject thereto or interfere with the ordinary conduct of the businesses of
      Holdings and its Subsidiaries;

     

    (ix) Liens
      on specific
      tangible assets of Persons which become Subsidiaries after the date of this
      Agreement; provided,
however,
      that
      (A) such Liens existed at the time the respective Persons became
      Subsidiaries and were not created in anticipation thereof, (B) any such
      Lien does not by its terms cover any assets after the time such Person becomes
      a
      Subsidiary which were not covered immediately prior thereto, (C) any such
      Lien does not by its terms secure any Indebtedness other than Indebtedness
      existing immediately prior to the time such Person becomes a Subsidiary and
      Permitted Refinancing Indebtedness in respect thereof, and (D) such
      Indebtedness is permitted by Section 8.05(d);

     

    (x) purchase
      money
      Liens on any property acquired or held by Holdings or its Subsidiaries in the
      ordinary course of business, securing Indebtedness incurred or assumed for
      the
      purpose of financing all or any part of the cost of acquiring such property;
      provided
      that (i) any
      such Lien attaches to such property concurrently with or within one hundred
      eighty (180) days after the acquisition thereof, (ii) such Lien attaches
      solely to the property so acquired in such transaction, (iii) the principal
      amount of the Indebtedness secured

      
        
          
          

        

        
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    thereby
      does not
      exceed 100% of the cost of such property, and (iv) such Indebtedness is
      permitted under Section 8.05(d);

     

    (xi) Liens
      securing
      obligations in respect of Capital Leases on assets subject to such leases,
      provided
      that such Capital
      Leases are otherwise permitted hereunder;

     

    (xii) Liens
      arising
      solely by virtue of any statutory or common law provision relating to banker’s
      liens, rights of set-off or similar rights and remedies as to deposit accounts
      or other funds maintained with a creditor depository institution; provided
      that (A) such
      deposit account is not a dedicated cash collateral account and is not subject
      to
      restrictions against access by Holdings in excess of those set forth by
      regulations promulgated by the FRB, and (B) such deposit account is not
      intended by Holdings or any Subsidiary to provide collateral to the depository
      institution;

     

    (xiii) Liens
      consisting of
      pledges of cash collateral or government securities to secure on a
      mark-to-market basis Permitted Swap Obligations only, provided
      that (A) the
      counterparty to any Swap Contract relating to such Permitted Swap Obligation
      is
      under a similar requirement to deliver similar collateral from time to time
      to
      Holdings or the Subsidiary party thereto on a mark-to-market basis; and
      (B) the aggregate value of such collateral so pledged by Holdings and the
      Subsidiaries together in favor of any counterparty does not at any time exceed
      $3,000,000;

     

    (xiv) Liens
      not otherwise
      permitted hereunder securing Indebtedness and other obligations in principal
      amount not exceeding $5,000,000 in the aggregate at any time outstanding;
provided
      that (A) no
      such Lien shall attach to any Collateral and (B) such Indebtedness and
      other obligations are otherwise permitted hereunder; 

     

    (xv) Liens
      on the
      property of direct and indirect Subsidiaries of Holdings that are not Loan
      Parties in favor of Holdings created in connection with extensions of credit
      provided by Holdings to Subsidiaries that are not Loan Parties as permitted
      pursuant to Section 8.04(d),
      which Liens have
      been assigned to the Administrative Agent for the benefit of the Lenders
      pursuant to Section 8.04(d);
      and

     

    (xvi) precautionary
      Uniform Commercial Code financing statement filings in respect of Operating
      Leases entered into by Holdings or any of its Subsidiaries in the ordinary
      course of business.

     

    (b) Holdings
      shall not,
      and shall not permit any of its Subsidiaries to, enter into or suffer to exist
      any agreement (other than this Agreement) prohibiting or conditioning the
      creation or assumption of any Lien upon any of its properties, revenues or
      assets, whether now owned or hereafter acquired, except (i) with respect to
      specific tangible assets subject to a Permitted Lien, (ii) agreements for
      the sale of a Subsidiary or assets, provided
      that (A) any
      such prohibition or condition on the creation or assumption of any Lien applies
      only to the Subsidiary or assets that are to be sold while such sale is pending
      and (B) such sale is permitted under Section 8.02,
      (iii) stockholders agreements, charter or other formation or joint venture
      documents relating to Non-Wholly-Owned Subsidiaries, and (iv) pursuant to
      customary

      
        
          
          

        

        
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    anti-assignment
      or
      no-subletting clauses in leases, licenses or contracts entered into in the
      ordinary course of business, which restrict only the assignment of such lease,
      license or contract, as applicable.

     

    Notwithstanding
      the
      foregoing, no other Liens may exist at any time on or with respect to the
      Pledged Collateral.

     

    8.02 Disposition
      of
      Assets.
      Holdings shall
      not, and shall not suffer or permit any Subsidiary to, directly or indirectly,
      sell, assign, lease, convey, transfer or otherwise dispose of (whether in one
      or
      a series of transactions) any property (including accounts and notes receivable,
      with or without recourse), except:

     

    (a) dispositions
      of
      inventory or equipment, all in the ordinary course of business; 

     

    (b) the
      sale of
      equipment to the extent that such equipment is exchanged for credit against
      the
      purchase price of similar replacement equipment, or the proceeds of such sale
      are reasonably promptly applied to the purchase price of such replacement
      equipment; 

     

    (c) dispositions
      of
      inventory and equipment by the Company or any other Loan Party to the Company
      or
      any other Loan Party pursuant to reasonable business requirements and in the
      ordinary course of business;

     

    (d) the
      lease or
      sublease of real property by Holdings or any Subsidiary to other Persons in
      the
      ordinary course of business;

     

    (e) the
      sale of cash
      equivalents and other short term money market investments in the ordinary course
      of business pursuant to Holdings’ usual and customary cash management policies
      and procedures;

     

    (f) dispositions
      of
      inventory and equipment (other than dispositions permitted under
      subsection (a)) by Holdings or any Loan Party to any Subsidiary that is not
      a Loan Party or to any Person in which Holdings has a Minority Investment,
      provided
      that the aggregate
      amount of such dispositions, plus
      the aggregate
      amount of Investments under Section 8.04(e),
      does not exceed
      the limitations specified in clauses (i) and (ii) of Section 8.04(e);

     

    (g) dispositions
      pursuant to sales and leaseback transactions permitted under Section 8.14;
      and

     

    (h) dispositions
      not
      otherwise permitted hereunder which are made for fair market value (as
      determined in good faith by Holdings); provided
      that (i) at
      the time of any disposition, no Event of Default shall exist or shall result
      from such disposition, (ii) in the case of any disposition, or series of
      related dispositions, involving aggregate consideration of less than
      $10,000,000, not less than 80%, and in the case of any other disposition, not
      less than 100%, of the aggregate sales price from such disposition shall be
      paid
      in cash, (iii) immediately after giving effect to such disposition, the
      Disposition Value of all assets disposed of as permitted by

      
        
          
          

        

        
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    this
Section 8.02(h)
      during the period
      of 365 days ending on the date of such disposition shall not exceed 15% of
      Consolidated Total Assets determined as of the last day of the fiscal year
      then
      most recently ended, (iv) no disposition by Holdings of any of its equity
      interest in the Company or SelectBuild Construction, Inc. shall be permitted
      hereunder, and (v) no dispositions of accounts or notes receivable shall be
      permitted hereunder unless in connection with the sale of all or substantially
      all of a business unit, division or Subsidiary of Holdings and such sale is
      otherwise permitted hereunder.

     

    8.03 Consolidations
      and Mergers.
      Holdings shall
      not, and shall not suffer or permit any Subsidiary to, merge, consolidate with
      or into, or convey, transfer, lease or otherwise dispose of (whether in one
      transaction or in a series of transactions) all or substantially all of its
      assets (whether now owned or hereafter acquired) to or in favor of any Person,
      except:

     

    (a) any
      Subsidiary may
      merge with Holdings, provided
      that Holdings
      shall be the continuing or surviving Person, or with any one or more
      Subsidiaries, provided
      that if any
      transaction shall be between a Subsidiary and a Wholly-Owned Subsidiary, the
      Wholly-Owned Subsidiary shall be the continuing or surviving Person,
and provided further
      that if any
      transaction shall be between a Subsidiary and a Loan Party, the Loan Party
      shall
      be the continuing or surviving Person; 

     

    (b) as
      permitted by
Section 8.02;

     

    (c) any
      Subsidiary may
      distribute or sell all or substantially all of its assets (upon voluntary
      liquidation, dissolution or otherwise) to Holdings or to a Wholly-Owned
      Subsidiary, provided
      that if the
      Subsidiary distributing or selling its assets is a Loan Party, then the Person
      purchasing or otherwise receiving the assets must also be a Loan Party;
      and

     

    (d) Holdings
      or any
      Subsidiary thereof may merge with or consolidate into any other Person that
      is
      not a Subsidiary, provided
      that (i) in
      the case of Holdings, Holdings shall be the continuing or surviving Person,
      (ii) if a Loan Party is a party to such merger, then the surviving or
      continuing entity must be a Loan Party or become a Loan Party in accordance
      with
Section 7.13,
      (iii) such
      merger or consolidation is in connection with a Permitted Acquisition, and
      (iv) no such merger or consolidation shall be made while there exists a
      Default or if a Default would occur as a result thereof.

     

    8.04 Loans
      and
      Investments.
      Holdings shall
      not purchase or acquire, or suffer or permit any Subsidiary to purchase or
      acquire, any capital stock, equity interest, or any obligations or other
      securities of, or any interest in, any Person, or make any Acquisitions, or
      make
      any advance, loan, extension of credit or capital contribution to or any other
      investment in, any Person including any Affiliate of Holdings (together,
“Investments”)
      except
      for:

     

    (a) Investments
      held by
      Holdings or Subsidiary in the form of cash equivalents and short term money
      market investments in the ordinary course of business pursuant to Holdings’
usual and customary cash management policies and procedures;

     

    (b) extensions
      of
      credit in the nature of accounts receivable or notes receivable arising from
      the
      sale or lease of goods or services in the ordinary course of
      business,

      
        
          
          

        

        
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    together
      with
      investments received in satisfaction or partial satisfaction thereof from
      financially troubled account debtors to the extent reasonably necessary in
      order
      to prevent or limit loss;

     

    (c) (i)
      Investments by
      Holdings and its Subsidiaries in the equity interests of their respective
      Subsidiaries outstanding on the date hereof, (ii) additional Investments by
      Holdings and its Subsidiaries that are Loan Parties in other Loan Parties (other
      than Holdings), (iii) additional Investments by Subsidiaries of Holdings
      that are not Loan Parties in other Subsidiaries that are not Loan Parties and
      (iv) so long as no Default has occurred and is continuing or would result
      from such Investment, additional Investments by the Loan Parties in Subsidiaries
      that are not Loan Parties, provided
      that (A) the
      aggregate amount of such Investments, plus
      the aggregate
      amount of Investments under Section 8.04(e)
      and dispositions
      under Section 8.02(f),
      does not exceed
      the limitations specified in clauses (i) and (ii) of Section 8.04(e),
      (B) any such
      Investments consisting of loans, advances or other extensions of credit shall
      comply with Section 8.04(d)
      below and (C) no
      such Investment shall be made if the Person that is the subject of such
      Investment is located outside the United States;

     

    (d) Loans,
      advances and
      other extensions of credit by Holdings or any Loan Party to any Subsidiary
      in
      the ordinary course of business; provided
      that with respect
      to loans, advances and other extensions of credit by Holdings or any Loan Party
      to any Subsidiary that is not a Loan Party (i) such loans, advances and
      other extensions of credit are evidenced by one or more demand promissory notes
      in form and substance satisfactory to the Administrative Agent, the originals
      of
      which have been delivered to the Administrative Agent as Collateral for the
      Obligations, and (ii) such loans, advances or other extensions of credit
      are secured by a first priority Lien on all of the tangible and intangible
      property of such Subsidiary, which Lien has been assigned to the Administrative
      Agent as Collateral for the Obligations;

     

    (e) Investments
      constituting Minority Investments, Investments incurred in order to consummate
      Permitted Acquisitions and Investments constituting exercised Put Obligations,
      provided
      that (i) all
      such Investments in the aggregate, plus the aggregate amount of dispositions
      under Section 8.02(f)
      and Investments
      under Section 8.04(c)(iv),
      shall not exceed
      (A) $300,000,000 for the period from the Effective Date through December
      31, 2007 and in any calendar year thereafter and (B) $850,000,000 in the
      aggregate from and after the Effective Date; (ii) all such Minority
      Investments, Investments incurred in order to consummate Other Permitted
      Acquisitions and Investments constituting exercised Put Obligations in the
      aggregate, plus the aggregate amount of dispositions under Section
      8.02(f)
      and Investments
      under Section
      8.04(c)(iv),
      shall not exceed
      $250,000,000 from and after the Effective Date; provided,
however,
      that, in the case
      of the preceding clauses (i) and (ii), any such Investments (or any
      applicable portion thereof) for which the consideration provided by Holdings
      or
      the investing Subsidiary shall consist solely of equity securities shall not
      be
      subject to the foregoing dollar limitations; and provided further,
however,
      that, in the case
      of the preceding clause (ii), in the event of any Permitted Acquisition of
      any
      Person in which Holdings shall have a Minority Investment or any further
      Investment in any Non-Wholly Subsidiary, in each case, resulting in such Person
      or Non-Wholly Owned Subsidiary becoming a U.S. Wholly Owned Subsidiary that
      becomes a Loan Party in accordance with Section
      7.13,
      then all prior
      and future permitted Investments in such U.S. Wholly Owned Subsidiary shall
      be
      excluded in determining compliance with the $250,000,000 limitation under the
      preceding clause (ii); (iii) no such

      
        
          
          

        

        
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    Investment
      shall be
      made if the Person that is the subject of such Investment is located outside
      the
      United States; (iv) no such Investment shall be made while there exists a
      Default or if a Default would result therefrom; and (v) Holdings shall be
      in full pro forma compliance with the financial covenants set forth in
Section 8.19,
      measured as of
      the last day of the most recent fiscal quarter for which Holdings has delivered
      financial statements under Section 5.01(c),
Section 7.01(a)
      or Section 7.01(b),
      after giving
      effect to such Investment;

     

    (f) Investments
      constituting Permitted Swap Obligations or payments or advances under Swap
      Contracts relating to Permitted Swap Obligations;

     

    (g) Officer,
      shareholder, director and employee loans and guarantees in accordance with
      applicable law and with Holdings’ and its Subsidiaries’ usual and customary
      practices with respect thereto in an aggregate amount not exceeding $10,000,000
      at any time outstanding;

     

    (h) Investments
      by
      Holdings in BMC Insurance, Inc. in an amount not to exceed the amount needed
      to
      satisfy actuarial requirements as determined by the Insurance Commissioner
      of
      the State of Hawaii and in any event which do not exceed $10,000,000 in the
      aggregate from and after the Effective Date (and in addition to any premiums
      paid in accordance with Section 8.06);

     

    (i) Investments
      constituting non-cash consideration received by Holdings or any Subsidiary
      in
      respect of any asset dispositions permitted under Section 8.02;
      and

     

    (j) Restricted
      Payments, to the extent permitted under Section 8.11.

     

    Notwithstanding
      anything to the contrary in this Section
      8.04,
      Investments by
      any Loan Party in BMC Insurance, Inc., from and after the Effective Date shall
      be governed exclusively by Section
      8.04(h).

     

    8.05 Limitation
      on
      Indebtedness.
      Holdings shall
      not, and shall not suffer or permit any Subsidiary to, create, incur, assume,
      suffer to exist, or otherwise become or remain directly or indirectly liable
      with respect to, any Indebtedness, except:

     

    (a) Indebtedness
      incurred pursuant to this Agreement;

     

    (b) Indebtedness
      consisting of Contingent Obligations permitted pursuant to Section 8.08;

     

    (c) Indebtedness
      existing on the Effective Date and set forth on Schedule 8.05
      and any Permitted
      Refinancing Indebtedness in respect thereof;

     

    (d) Indebtedness
      secured by Liens permitted by clauses (ix), (x), (xi) and (xiv) of
Section 8.01(a)
      in an aggregate
      amount outstanding not to exceed $25,000,000;

     

    (e) Indebtedness
      of
      Holdings or other Loan Parties to Holdings or other Loan Parties;

      
        
          
          

        

        
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    (f) Indebtedness
      of
      Subsidiaries that are not Loan Parties to Holdings or any other Loan Party
      to
      the extent permitted pursuant to Section 8.04(d);

     

    (g) Indebtedness
      incurred pursuant to sales and leaseback transactions permitted under
Section 8.14;

     

    (h) Indebtedness
      of BMC
      Insurance, Inc. to Holdings or any Subsidiary of Holdings;

     

    (i) additional
      unsecured Indebtedness incurred after the Effective Date in an aggregate amount
      outstanding at any time not to exceed $25,000,000, provided
      that (i) no
      such Indebtedness shall be incurred while there exists a Default or if a Default
      would occur as a result thereof, and (ii) without limiting the generality
      of the foregoing, as of the end of the most recent quarter for which Holdings
      has delivered financial statements under Section 5.01(c),
Section 7.01(a)
      or Section 7.01(b)
      and immediately
      after giving effect to such incurrence, Holdings shall be in full pro forma
      compliance with
      the financial covenants set forth in Section 8.19;
      and

     

    (j) additional
      Indebtedness which by its terms is expressly subordinated to the Obligations,
      provided
      that (i) the
      terms of such subordination shall be satisfactory to the Majority Lenders,
      (ii) the terms of such Indebtedness and the indenture or other agreement
      evidencing such Indebtedness otherwise shall be satisfactory in all material
      respects to the Majority Lenders (including terms and conditions relating to
      the
      interest rate, fees, amortization, maturity, covenants, events of default and
      remedies), (iii) no such Indebtedness shall be incurred while there exists
      a Default or if a Default would occur as a result thereof, and (iv) without
      limiting the generality of the foregoing, as of the end of the most recent
      quarter for which Holdings has delivered financial statements under Section 5.01(c),
Section 7.01(a)
      or Section 7.01(b)
      and immediately
      after giving effect to such incurrence, Holdings shall be in full pro forma
      compliance
      with the
      financial covenants set forth in Section 8.19
      (any such
      Indebtedness issued in compliance with this Section 8.05(j)
      hereinafter
“Permitted
      Subordinated Debt”).

     

    Notwithstanding
      anything to the contrary in this Section 8.05,
      the Indebtedness
      of all Subsidiaries that are not Guarantors which is otherwise permitted under
      this Section 8.05
      shall not exceed
      $25,000,000 in the aggregate at any time outstanding, exclusive of any
      Indebtedness at any time outstanding under Section
      8.05(f).

     

    8.06 Transactions
      with Affiliates.
      Holdings shall
      not, and shall not suffer or permit any Subsidiary to, enter into any
      transaction with any Affiliate of Holdings, except upon fair and reasonable
      terms no less favorable to Holdings or such Subsidiary than it would obtain
      in a
      comparable arm’s length transaction with a Person not an Affiliate of Holdings
      or such Subsidiary.

     

    8.07 Use
      of
      Proceeds.
      Holdings shall
      not, and shall not suffer or permit any Subsidiary to, use any portion of the
      Loan proceeds or any Letter of Credit, directly or indirectly, (i) to
      purchase or carry Margin Stock, (ii) to repay or otherwise refinance
      indebtedness of Holdings or others incurred to purchase or carry Margin Stock,
      or (iii) to extend credit for the

      
        
          
          

        

        
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    purpose
      of
      purchasing or carrying any Margin Stock, except, in each case, for the purchase,
      redemption or other acquisition of shares of common stock of Holdings permitted
      under Section 8.11
      in a manner that
      would not result in the contravention of Regulation T, U or X of the
      FRB.

     

    8.08 Contingent
      Obligations.
      Holdings shall
      not, and shall not suffer or permit any Subsidiary to, create, incur, assume
      or
      suffer to exist any Contingent Obligations, except:

     

    (a) endorsements
      for
      collection or deposit in the ordinary course of business;

     

    (b) Permitted
      Swap
      Obligations;

     

    (c) Contingent
      Obligations of Holdings in respect of Indebtedness of any other Loan Party,
      or
      Contingent Obligations of any Loan Party in respect of Indebtedness of another
      Loan Party or of Holdings, in each case to the extent such Indebtedness is
      permitted hereunder;

     

    (d) Contingent
      Obligations of any Subsidiary that is not a Loan Party in respect of
      Indebtedness of any other Subsidiary that is not a Loan Party, to the extent
      such Indebtedness is permitted hereunder;

     

    (e) Contingent
      Obligations of Holdings and its Subsidiaries existing as of the Effective Date
      and listed in Schedule
      8.08;

     

    (f) Contingent
      Obligations with respect to Surety Instruments incurred in the ordinary course
      of business and not exceeding at any time $5,000,000 in the aggregate in respect
      of Holdings and its Subsidiaries together;

     

    (g) Contingent
      Obligations of Holdings with respect to Stock Price Guaranties incurred in
      the
      ordinary course of business and not exceeding at any time $5,000,000 in the
      aggregate;

     

    (h) Contingent
      Obligations of Holdings and its Subsidiaries in respect of any Put Obligations
      to the extent otherwise permitted under this Agreement;

     

    (i) Contingent
      Obligations consisting of normal and customary indemnities issued in the
      ordinary course of business (including, without limitation, under professional
      services agreements, construction and materials supply agreements, intellectual
      property agreements or employment and consulting agreements) or consisting
      of
      normal and customary indemnities pursuant to the issuance and sale of
      securities;

     

    (j) Contingent
      Obligations in respect of Operating Leases, to the extent such Operating Leases
      are permitted to be entered into hereby; and

     

    (k) Contingent
      Obligations consisting of customary indemnification and purchase price
      adjustment obligations incurred in connection with asset dispositions permitted
      under Section 8.02.

      
        
          
          

        

        
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    8.09 Subsidiaries.
      Holdings shall
      not, and shall not suffer or permit any Subsidiary to, incorporate, create
      or
      acquire any Subsidiary which is not a U.S. Subsidiary.

     

    8.10 Lease
      Obligations.
      Holdings shall
      not, and shall not suffer or permit any Subsidiary to, create or suffer to
      exist
      any obligations for the payment of rent for any property under any Operating
      Lease, which exceed an aggregate amount of $50,000,000 for all Operating Leases
      in any fiscal year.

     

    8.11 Restricted
      Payments.
      Holdings shall
      not, and shall not suffer or permit any Subsidiary to, declare or make any
      dividend payment or other distribution of assets, properties, cash, rights,
      obligations or securities on account of any shares of any class of its capital
      stock or other equity interests (other than dividends or other distributions
      by
      a Subsidiary to Holdings or to a Subsidiary that is a Loan Party), or purchase,
      redeem or otherwise acquire for value any shares of its capital stock or other
      equity interests or any warrants, rights or options to acquire such shares
      or
      other equity interests, now or hereafter outstanding (collectively,
“Restricted
      Payments”);
      except that
      Holdings may:

     

    (a) declare
      and make
      dividend payments or other distributions payable solely in its common
      stock;

     

    (b) declare
      and make
      dividend payments or other distributions payable in cash, and purchase, redeem
      or otherwise acquire for cash shares of its capital stock or other equity
      interest or any warrants, rights or option to acquire such shares or other
      equity interests, provided
      that (i) no
      Default has occurred and is continuing on the date of, or will result after
      giving effect to, any such Restricted Payment and (ii) Holdings shall be in
      full pro forma compliance with the financial covenants set forth in Section 8.19,
      measured as of
      the last day of the most recent fiscal quarter for which Holdings has delivered
      financial statements under Section 5.01(c),
Section 7.01(a)
      or Section 7.01(b),
      after giving
      effect to such Restricted Payment;

     

    (c) declare
      and make
      dividends required to be declared or paid pursuant to the terms of any
      securities issued in a Permitted Equity Offering so long as the dividend
      provisions of such securities were approved by the Majority Lenders in writing
      prior to the issuance of such securities;

     

    (d) purchase,
      redeem or
      otherwise acquire shares of its common stock or warrants or options to acquire
      any such shares with the proceeds received from the substantially concurrent
      issue of new shares of its common stock;

     

    (e) allow
      any
      Non-Wholly-Owned Subsidiary to make distributions to its owners (on a
pro rata
      basis);
      and

     

    (f) purchase
      shares of
      Holdings’ common stock either (1) for deposit into the 401(k) trust fund on
      behalf of Holdings’ employees by using funds obtained through employee payroll
      deductions of such employees, or (2) to the extent necessary to provide
      discounts to employees in connection with Holdings’ Employee Stock Purchase
      Plan.

      
        
          
          

        

        
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    8.12 ERISA.
      Holdings shall
      not, and shall not suffer or permit any of its ERISA Affiliates to:
      (a) engage in a prohibited transaction or violation of the fiduciary
      responsibility rules with respect to any Plan which has resulted or could
      reasonably expected to result in liability of Holdings in an aggregate amount
      in
      excess of $5,000,000; or (b) engage in a transaction that could be subject
      to section 4069 or 4212(c) of ERISA and that would reasonably be expected
      to have a Material Adverse Effect.

     

    8.13 [Intentionally
      Omitted]

     

    8.14 Sales
      and
      Leasebacks.
      Holdings shall
      not, and shall not permit any of its Subsidiaries to, become liable, directly
      or
      indirectly, with respect to any lease (a “Subject
      Lease”),
      whether an
      Operating Lease or a Capital Lease, of any property (whether real, personal
      or
      mixed), whether now owned or hereafter acquired, (i) which Holdings or such
      Subsidiary has sold or transferred or is to sell or transfer to any other Person
      or (ii) which Holdings or such Subsidiary intends to use for substantially
      the same purposes as any other property which has been or is to be sold or
      transferred by Holdings or such Subsidiary to any other Person in connection
      with such lease; provided
      that Holdings and
      any of its Subsidiaries may enter into any such lease if either (A) (1) no
      Default shall then exist or would occur as a result thereof and (2) such lease
      is an Operating Lease with a term of not more than three (3) years entered
      into
      in connection with the sale of a facility pending the repurchase and
      construction of a replacement facility in a new location, or (B) (1) no Default
      shall then exist or would occur as a result thereof, (2) as of the end of
      the most recent quarter for which Holdings has delivered financial statements
      under Section 5.01(c),
Section 7.01(a)
      or Section 7.01(b)
      and immediately
      after giving effect to any such lease, Holdings shall be in full pro forma
      compliance with
      the financial covenants set forth in Section 8.19,
      and (3) the
      Disposition Value of the property sold or transferred, or to be sold or
      transferred, in connection with the lease, when added to the aggregate
      Disposition Value of all other property sold or transferred, or to be sold
      or
      transferred, in connection with all other leases entered into pursuant to this
      Section 8.14
      from and after the
      Effective Date, does not exceed $50,000,000.

     

    8.15 Certain
      Payments.
      Holdings shall
      not, and shall not permit any of its Subsidiaries to, (i) prepay, redeem,
      repurchase or otherwise acquire for value any of the Permitted Subordinated
      Debt; or (ii) make any principal, interest or other payments on any
      Permitted Subordinated Debt if not permitted by the respective subordination
      provisions of the Subordinated Debt Documents.

     

    8.16 Modification
      of
      Subordinated Debt Documents.
      Holdings shall
      not, and shall not permit any of its Subsidiaries to, agree to or permit any
      amendment, modification or waiver of any provision of any Subordinated Debt
      Document (including any amendment, modification or waiver pursuant to an
      exchange of other securities or instruments for outstanding Permitted
      Subordinated Debt) if the effect of such amendment, modification or waiver
      is to
      (i) increase the interest rate on such Permitted Subordinated Debt or
      change (to earlier dates) the dates upon which principal and interest are due
      thereon; (ii) alter the redemption, prepayment or subordination provisions
      thereof; (iii) alter the covenants and events of default in a manner which
      would make such provisions more onerous or restrictive to Holdings or such
      Subsidiary; or (iv) otherwise increase the obligations of Holdings or such
      Subsidiary in respect of such

      
        
          
          

        

        
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    Permitted
      Subordinated Debt or confer additional rights upon the holders thereof which
      individually or in the aggregate would be adverse to Holdings, its Subsidiaries
      or the Lenders.

     

    8.17 Change
      in
      Business.
      Holdings shall
      not, and shall not suffer or permit any Subsidiary to, engage in any material
      line of business substantially different from those lines of business carried
      on
      by Holdings and its Subsidiaries on the date hereof and lines of business
      ancillary thereto.

     

    8.18 Accounting
      Changes.
      Holdings shall
      not, and shall not suffer or permit any Subsidiary to, make any significant
      change in accounting treatment or reporting practices, except as permitted
      by
      GAAP, or change the fiscal year of Holdings or of any Subsidiary, except to
      change the fiscal year of a Subsidiary to conform its fiscal year to that of
      Holdings.

     

    8.19 Financial
      Covenants.
xxiv)
      Holdings shall not
      permit its Consolidated Net Worth as of the last day of any fiscal quarter
      to be
      less than (a) $483,590,500, plus
      (b) 50% of
      Consolidated Net Income for each fiscal quarter (without giving effect to any
      net loss for any such period) ending after the Effective Date, plus
      (c) 50% of
      all Net Issuance Proceeds for all issuances of equity by Holdings and its
      Subsidiaries completed in any fiscal quarter ending after the Effective
      Date.

     

    (b) Holdings
      shall not
      permit as at the end of any fiscal quarter, measured on a consolidated basis
      for
      Holdings and its Subsidiaries for the period of four fiscal quarters ended
      on
      such date, the ratio of (i) EBITA to (ii) the sum of (A) cash
      Interest Expense, plus
      (B) cash
      taxes, plus
      (C) scheduled
      principal payments in respect of Indebtedness, plus
      (D) cash
      dividend payments made by Holdings (the “EBITA
      Ratio”)
      to be less than
      the following amounts for the respective periods set forth below:

     

    
      	
              Period

            	 	
              EBITA
                Ratio

            
	
              Effective
                Date through and including December 31, 2008

            	 	
              1.25:1.00

            
	
              January
                1,
                2009 through and including December 31, 2010

            	 	
              1.35:1.00

            
	
              January
                1,
                2011 and thereafter

            	 	
              1.45:1.00

            

    

    

    
      
        
        

      

      
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    (c) Holdings
      shall not
      permit the Total EBITDA Ratio at any time to be greater than the following
      amounts for the respective periods set forth below:

    
      	 	 	 
	
              Period

            	 	
              Total
                EBITDA
                Ratio

            
	
              Effective
                Date through and including December 31, 2008

            	 	
              3.50:1.00

            
	
              January
                1,
                2009 through and including December 31, 2010

            	 	
              3.25:1.00

            
	
              January
                1,
                2011 and thereafter

            	 	
              3.00:1.00

            

    

    

    8.20 No
      Restrictions
      on Subsidiary Dividends.
      Holdings shall
      not, and shall not suffer or permit any Subsidiary to, enter into or be bound
      by
      any Contractual Obligation which restricts, limits or prohibits the payment
      of
      dividends by any Subsidiary or the making of any other distribution in respect
      of such Subsidiary’s capital stock or other equity interests, except for the
      following:

     

    (a) agreements
      of
      Subsidiaries that are not Loan Parties in respect of Indebtedness that is
      permitted to be incurred by Subsidiaries that are not Loan Parties pursuant
      to
Section 8.05
      hereof;

     

    (b) agreements
      for the
      sale of a Subsidiary or assets, provided
      that (i) any
      such restriction, limitation or prohibition on the payment of dividends or
      other
      distributions applies only to the Subsidiary to be sold or to the Subsidiary
      that owns the assets to be sold, in each case, while such sale is pending and
      (ii) such sale is permitted under Section 8.02;

     

    (c) shareholder
      agreements, charter or other formation or joint venture documents in respect
      of
      Subsidiaries that are not Loan Parties; and

     

    (d) agreements
      in
      respect of (i) Indebtedness permitted under Section 8.05
      of any Subsidiary
      acquired after the Effective Date that was incurred by such Subsidiary prior
      to
      the date on which such Subsidiary was acquired (other than Indebtedness incurred
      as consideration for, in contemplation of, or to provide all or any portion
      of
      the funds or credit support utilized to consummate the transaction or series
      of
      related transactions pursuant to which such Subsidiary becomes a Subsidiary
      or
      was otherwise acquired) and (ii) Indebtedness permitted by Section 8.05(j).

     

    ARTICLE
      IX.

     

    EVENTS
      OF DEFAULT

     

    9.01 Event
      of
      Default.
      Any of the
      following shall constitute an “Event
      of
      Default”:

     

    (a) Non
      Payment.
      Holdings fails to
      make, (i) when and as required to be made herein, payments of any amount of
      principal of any Loan or of any L/C Obligation,

      
        
          
          

        

        
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    (ii) within
      three (3) Business Days after the same becomes due, any payment or transfer
      under any Specified Swap Contract, or (iii) within three (3) Business Days
      after the same becomes due, payment of any interest, fee or any other amount
      payable hereunder or under any other Loan Document (other than a Specified
      Swap
      Contract); or

     

    (b) Representation
      or Warranty.
      Any
      representation or warranty by any Loan Party made or deemed made herein, in
      any
      other Loan Document (other than a Specified Swap Contract), or which is
      contained in any certificate, document or financial or other statement by any
      Loan Party, or any Responsible Officer, furnished at any time under this
      Agreement, or in or under any other Loan Document (other than a Specified Swap
      Contract), is incorrect in any material respect on or as of the date made or
      deemed made; or

     

    (c) Specific
      Defaults.
      Holdings, or the
      Company or any other Loan Party fails to perform or observe any term, covenant
      or agreement contained in any of Section 7.03(a),
Section 7.04(a)(i),
      or Section 7.12
      or in Article VIII;
      or 

     

    (d) Other
      Defaults.
      Any Loan Party
      fails to perform or observe any other term or covenant contained in this
      Agreement or any other Loan Document (other than a Specified Swap Contract),
      and
      such default shall continue unremedied for a period of twenty (20) days after
      the earlier of (i) the date upon which a Responsible Officer of Holdings or
      the Company obtained actual knowledge of such failure and (ii) the date
      upon which written notice thereof is given to Holdings by the Administrative
      Agent or any Lender; or

     

    (e) Cross
      Default.
      (i) Holdings
      or any Subsidiary (A) fails to make any payment in respect of any
      Indebtedness or Contingent Obligation (other than in respect of Swap Contracts),
      having an aggregate principal amount (including undrawn committed or available
      amounts and including amounts owing to all creditors under any combined or
      syndicated credit arrangement) of more than $5,000,000 when due (whether by
      scheduled maturity, required prepayment, acceleration, demand, or otherwise)
      and
      such failure continues after the applicable grace or notice period, if any,
      specified in the relevant document on the date of such failure; or
      (B) fails to perform or observe any other condition or covenant, or any
      other event shall occur or condition exist, under any agreement or instrument
      relating to any such Indebtedness or Contingent Obligation, and such failure
      continues after the applicable grace or notice period, if any, specified in
      the
      relevant document on the date of such failure if the effect of such failure,
      event or condition is to cause, or to permit the holder or holders of such
      Indebtedness or beneficiary or beneficiaries of such Indebtedness (or a trustee
      or administrative agent on behalf of such holder or holders or beneficiary
      or
      beneficiaries) to cause such Indebtedness to be declared to be due and payable
      or to be repurchased, prepaid, defeased or redeemed prior to its stated
      maturity, or such Contingent Obligation to become payable or cash collateral
      in
      respect thereof to be demanded; or (ii) there occurs under any Swap
      Contract an Early Termination Date (as defined in such Swap Contract) resulting
      from (1) any event of default under such Swap Contract as to which Holdings
      or any Subsidiary is the Defaulting Party (as defined in such Swap Contract)
      or
      (2) any Termination Event (as so defined) as to which Holdings or any
      Subsidiary is an Affected Party (as so defined), and, in either event, the
      Swap
      Termination Value owed by Holdings or such Subsidiary as a result thereof is
      greater than $5,000,000; or

      
        
          
          

        

        
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    (f) Insolvency;
      Voluntary Proceedings.
      Holdings or any
      Subsidiary (i) ceases or fails to be solvent, or generally fails to pay, or
      admits in writing its inability to pay, its debts as they become due, subject
      to
      applicable grace periods, if any, whether at stated maturity or otherwise;
      (ii) voluntarily ceases to conduct its business in the ordinary course;
      (iii) commences any Insolvency Proceeding with respect to itself; or
      (iv) takes any action to effectuate or authorize any of the foregoing;
      or

     

    (g) Involuntary
      Proceedings.
      (i) Any
      involuntary Insolvency Proceeding is commenced or filed against Holdings or
      any
      Subsidiary, or any writ, judgment, warrant of attachment, execution or similar
      process, is issued or levied against a substantial part of Holdings’ or any
      Subsidiary’s properties, and any such proceeding or petition shall not be
      dismissed, or such writ, judgment, warrant of attachment, execution or similar
      process shall not be released, vacated or fully bonded within sixty (60) days
      after commencement, filing or levy; (ii) Holdings or any Subsidiary admits
      the material allegations of a petition against it in any Insolvency Proceeding,
      or an order for relief (or similar order under non-U.S. law) is ordered in
      any
      Insolvency Proceeding; or (iii) Holdings or any Subsidiary acquiesces in
      the appointment of a receiver, trustee, custodian, conservator, liquidator,
      mortgagee in possession (or administrative agent therefor), or other similar
      Person for itself or a substantial portion of its property or business;
      or

     

    (h) ERISA.
      (i) An ERISA
      Event shall occur with respect to a Pension Plan or Multiemployer Plan which
      has
      resulted or could reasonably be expected to result in liability of Holdings
      under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC
      in
      an aggregate amount in excess of $5,000,000; (ii) the aggregate amount of
      Unfunded Pension Liability among all Pension Plans at any time exceeds
      $5,000,000; or (iii) Holdings or any ERISA Affiliate shall fail to pay when
      due, after the expiration of any applicable grace period, any installment
      payment with respect to its withdrawal liability under section 4201 of
      ERISA under a Multiemployer Plan in an aggregate amount in excess of $5,000,000;
      or

     

    (i) Monetary
      Judgments.
      One or more
      non-interlocutory judgments, non interlocutory orders, decrees or arbitration
      awards is entered against Holdings or any Subsidiary involving in the aggregate
      a liability (to the extent not covered by independent third party insurance
      as
      to which the insurer does not dispute coverage) as to any single or related
      or
      unrelated series of transactions, incidents or conditions, of $5,000,000 or
      more, and the same shall remain unsatisfied, unvacated and unstayed pending
      appeal for a period of thirty (30) days after the entry thereof; or

     

    (j) Non
      Monetary
      Judgments.
      Any non monetary
      judgment, order or decree is entered against Holdings or any Subsidiary which
      does or would reasonably be expected to have a Material Adverse Effect, and
      there shall be any period of thirty (30) consecutive days during which a stay
      of
      enforcement of such judgment or order, by reason of a pending appeal or
      otherwise, shall not be in effect; or

     

    (k) Change
      of
      Control.
      There occurs any
      Change of Control; or

     

    (l) Guarantor
      Defaults.
      Any Guarantor
      fails in any material respect to perform or observe any term, covenant or
      agreement in its Guaranty; or any Guaranty is for any

      
        
          
          

        

        
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    reason
      partially
      (including with respect to future advances) or wholly revoked or invalidated,
      or
      otherwise ceases to be in full force and effect, or such Guarantor or any other
      Person contests in any manner the validity or enforceability thereof or denies
      that it has any further liability or obligation thereunder; or any event
      described at subsections (f) or (g) of this Section 9.01
      occurs with
      respect to any Guarantor; or

     

    (m) Invalidity
      of
      Subordination Provisions.
      The subordination
      provisions applicable to the Permitted Subordinated Debt shall be for any reason
      revoked or invalidated, or otherwise cease to be in full force and effect,
      or
      the holders thereof or any other Person shall contest in any manner the validity
      or enforceability thereof or denies that it has any further liability or
      obligation thereunder, or the Indebtedness hereunder is for any reason
      subordinated or does not have the priority contemplated by this Agreement or
      such subordination provisions.

     

    (n) Collateral.
      (i) Any
      provision of any Collateral Document shall for any reason cease to be valid
      and
      binding on or enforceable against Holdings or any Subsidiary party thereto
      or
      Holdings or any Subsidiary shall so state in writing or bring an action to
      limit
      its obligations or liabilities thereunder; or (ii) any Collateral Document
      shall for any reason (other than pursuant to the terms thereof) cease to create
      a valid security interest in the Collateral purported to be covered thereby
      or
      such security interest shall for any reason cease to be a perfected and first
      priority security interest subject only to Permitted Liens.

     

    9.02 Remedies.
      At any time after
      the occurrence and during the continuance of any Event of Default (other than
      an
      Event of Default referred to in Section 9.01(f)
      or Section 9.01(g)):

     

    (a) the
      Administrative
      Agent may or shall, upon instructions from the Majority Revolving Lenders,
      by
      written notice to Holdings (i) terminate the Revolving Commitments, any
      obligation of the L/C Issuer to make L/C Credit Extensions and the obligations
      of the Revolving Lenders to make Loans, (ii) require that Holdings Cash
      Collateralize the L/C Obligations in an amount equal to the then Effective
      Amount of the L/C Obligations; and/or (iii) declare all or a portion of the
      outstanding Obligations owed to the Revolving Lenders and payable by Holdings
      to
      be immediately due and payable without presentment, demand, protest or any
      other
      notice of any kind, all of which are hereby expressly waived, anything contained
      herein or in the Notes to the contrary notwithstanding; and

     

    (b) the
      Administrative
      Agent may or shall, upon instructions from the Majority Term B Lenders, by
      written notice to Holdings declare all or a portion of the outstanding
      Obligations owed to the Term B Lenders and payable by Holdings to be
      immediately due and payable without presentment, demand, protest or any other
      notice of any kind, all of which are hereby expressly waived, anything contained
      herein or in the Notes to the contrary notwithstanding.

     

    Upon
      the occurrence
      or existence of any Event of Default described in Section 9.01(f)
      or 9.01(g),
      immediately and
      without notice, (1) the Revolving Commitments, any obligation of the L/C
      Issuer to make L/C Credit Extensions and the obligations of the Lenders to
      make
      Loans shall automatically terminate, (2) the obligation of Holdings to Cash
      Collateralize the L/C Obligations

    
      
        
          
          

        

        
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    in
      an amount equal to the then Effective Amount of the L/C Obligations shall
      automatically become effective and (3) all outstanding Obligations payable
      by Holdings hereunder shall automatically become immediately due and payable,
      without presentment, demand, protest or any other notice of any kind, all of
      which are hereby expressly waived, anything contained herein or in the Notes
      to
      the contrary notwithstanding. In addition to the foregoing remedies, upon the
      occurrence or existence of any Event of Default, the Administrative Agent may
      exercise any other right, power or remedy available to it under any of the
      Loan
      Documents or otherwise by law, either by suit in equity or by action at law,
      or
      both.

     

    9.03 Application
      of
      Funds.
      After the
      exercise of remedies provided for in Section 9.02
      (or after the
      Loans have automatically become immediately due and payable and the L/C
      Obligations have automatically been required to be Cash Collateralized as set
      forth in the last paragraph of Section 9.02),
      any amounts
      received on account of the Obligations shall be applied by the Administrative
      Agent in the following order:

     

    First,
      to payment of
      that portion of the Obligations constituting fees, indemnities, expenses and
      other amounts (including fees, charges and disbursements of counsel to the
      Administrative Agent and amounts payable under Article IV)
      payable to the
      Administrative Agent in its capacity as such;

     

    Second,
      to payment of
      that portion of the Obligations constituting fees, indemnities and other amounts
      (other than principal, interest and fees payable under Section
      2.11(b)
      and Section 3.08(a))
      payable to the
      Lenders and the L/C Issuer (including fees, charges and disbursements of counsel
      to the respective Lenders and the L/C Issuer and amounts payable under
Article IV),
      ratably among
      them in proportion to the respective amounts described in this clause
Second
      payable to
      them;

     

    Third,
      to payment of
      that portion of the Obligations constituting accrued and unpaid fees payable
      under Section
      2.11(b)
      and Section 3.08(a)
      and interest on
      the Loans, L/C Borrowings and other Obligations, ratably among the Lenders
      and
      the L/C Issuer in proportion to the respective amounts described in this clause
      Third
      payable to
      them;

     

    Fourth,
      (i) to payment of
      that portion of the Obligations constituting unpaid principal of the Loans
      and
      L/C Borrowings, (ii) to Cash Collateralize that portion of the L/C Obligations
      comprised of the aggregate undrawn amount of Letters of Credit and (iii) to
      payment of that portion of the Obligations constituting amounts owing to any
      Swap Providers in respect of Specified Swap Contracts, ratably among the
      Lenders, the L/C Issuer and the Swap Providers in proportion to the respective
      amounts described in this clause Fourth held by them;

     

    Fifth,
      to payment of all
      other Obligations, ratably among the Persons owed such Obligations in proportion
      to the respective amounts described in this clause Fifth held by them;
      and

     

    Last,
      the balance, if
      any, after all of the Obligations have been indefeasibly paid in full, to
      Holdings or as otherwise required by applicable law.

     

    Subject
      to
Section 3.03,
      amounts used to
      Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant
      to
      clause Fourth
      above shall be
      applied to satisfy drawings under such

      
        
          
          

        

        
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    Letters
      of Credit
      as they occur. If any amount remains on deposit as Cash Collateral after all
      Letters of Credit have either been fully drawn or expired, such remaining amount
      shall be applied to the other Obligations, if any, in the order set forth
      above.

     

    9.04 Specified
      Swap
      Contract Remedies.
      Notwithstanding
      any other provision of this Article IX,
      but subject to
Section
      9.03,
      each Swap
      Provider shall have the right, with prior notice to the Administrative Agent,
      but without the approval or consent of the Administrative Agent or the other
      Lenders, with respect to any Specified Swap Contract of such Swap Provider,
      (a) to declare an event of default, termination event or other similar
      event thereunder and to create an Early Termination Date (as defined in such
      Specified Swap Contract), (b) to determine net termination amounts in
      accordance with the terms of such Specified Swap Contracts and to set-off
      amounts between such Specified Swap Contracts, and (c) to prosecute any
      legal action against Holdings to enforce net amounts owing to such Swap
      Provider.

     

    ARTICLE
      X.

     

    THE
      ADMINISTRATIVE AGENT

     

    10.01 Appointment
      and
      Authority.
      Each of the
      Lenders and the L/C Issuer hereby irrevocably appoints Wells Fargo to act on
      its
      behalf as the Administrative Agent hereunder and under the other Loan Documents
      and authorizes the Administrative Agent to take such actions on its behalf
      and
      to exercise such powers as are delegated to the Administrative Agent by the
      terms hereof or thereof, together with such actions and powers as are reasonably
      incidental thereto. The provisions of this Article are solely for the
      benefit of the Administrative Agent, the Lenders and the L/C Issuer, and neither
      Holdings nor any other Loan Party shall have rights as a third party beneficiary
      of any of such provisions.

     

    10.02 Rights
      as a
      Lender.
      The Person
      serving as the Administrative Agent hereunder shall have the same rights and
      powers in its capacity as a Lender as any other Lender and may exercise the
      same
      as though it were not the Administrative Agent and the term “Lender” or
“Lenders” shall, unless otherwise expressly indicated or unless the context
      otherwise requires, include the Person serving as the Administrative Agent
      hereunder in its individual capacity. Such Person and its Affiliates may accept
      deposits from, lend money to, act as the financial advisor or in any other
      advisory capacity for and generally engage in any kind of business with Holdings
      or any Subsidiary or other Affiliate thereof as if such Person were not the
      Administrative Agent hereunder and without any duty to account therefor to
      the
      Lenders.

     

    10.03 Exculpatory
      Provisions.
      The
      Administrative Agent shall not have any duties or obligations except those
      expressly set forth herein and in the other Loan Documents. Without limiting
      the
      generality of the foregoing, the Administrative Agent:

     

    (a) shall
      not be
      subject to any fiduciary or other implied duties, regardless of whether a
      Default has occurred and is continuing;

     

    (b) shall
      not have any
      duty to take any discretionary action or exercise any discretionary powers,
      except discretionary rights and powers expressly contemplated hereby or by
      the
      other Loan Documents that the Administrative Agent is required to exercise
      as
      directed

      
        
          
          

        

        
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    in
      writing by the Majority Lenders (or such other number or percentage of the
      Lenders as shall be expressly provided for herein or in the other Loan
      Documents), provided
      that the
      Administrative Agent shall not be required to take any action that, in its
      opinion or the opinion of its counsel, may expose the Administrative Agent
      to
      liability or that is contrary to any Loan Document or applicable law;
      and

     

    (c) shall
      not, except
      as expressly set forth herein and in the other Loan Documents, have any duty
      to
      disclose, and shall not be liable for the failure to disclose, any information
      relating to Holdings or any of its Affiliates that is communicated to or
      obtained by the Person serving as the Administrative Agent or any of its
      Affiliates in any capacity.

     

    The
      Administrative
      Agent shall not be liable for any action taken or not taken by it (i) with
      the consent or at the request of the Majority Lenders (or such other number
      or
      percentage of the Lenders as shall be necessary, or as the Administrative Agent
      shall believe in good faith shall be necessary, under the circumstances as
      provided in Sections 11.01
      and 9.02)
      or (ii) in
      the absence of its own gross negligence or willful misconduct. The
      Administrative Agent shall be deemed not to have knowledge of any Default unless
      and until notice describing such Default is given to the Administrative Agent
      by
      Holdings, a Lender or the L/C Issuer.

     

    The
      Administrative
      Agent shall not be responsible for or have any duty to ascertain or inquire
      into
      (i) any statement, warranty or representation made in or in connection with
      this Agreement or any other Loan Document, (ii) the contents of any
      certificate, report or other document delivered hereunder or thereunder or
      in
      connection herewith or therewith, (iii) the performance or observance of
      any of the covenants, agreements or other terms or conditions set forth herein
      or therein or the occurrence of any Default, (iv) the validity,
      enforceability, effectiveness or genuineness of this Agreement, any other Loan
      Document or any other agreement, instrument or document or (v) the
      satisfaction of any condition set forth in Article V
      or elsewhere
      herein, other than to confirm receipt of items expressly required to be
      delivered to the Administrative Agent.

     

    10.04 Reliance
      by
      Administrative Agent.
      The
      Administrative Agent shall be entitled to rely upon, and shall not incur any
      liability for relying upon, any notice, request, certificate, consent,
      statement, instrument, document or other writing (including any electronic
      message, Internet or intranet website posting or other distribution) believed
      by
      it to be genuine and to have been signed, sent or otherwise authenticated by
      the
      proper Person. The Administrative Agent also may rely upon any statement made
      to
      it orally or by telephone and believed by it to have been made by the proper
      Person, and shall not incur any liability for relying thereon. In determining
      compliance with any condition hereunder to the making of a Loan, or the issuance
      of a Letter of Credit, that by its terms must be fulfilled to the satisfaction
      of a Lender or the L/C Issuer, the Administrative Agent may presume that such
      condition is satisfactory to such Lender or the L/C Issuer unless the
      Administrative Agent shall have received notice to the contrary from such Lender
      or the L/C Issuer prior to the making of such Loan or the issuance of such
      Letter of Credit. The Administrative Agent may consult with legal counsel (who
      may be counsel for Holdings), independent accountants and other experts selected
      by it, and shall not be liable for any action taken or not taken by it in
      accordance with the advice of any such counsel, accountants or
      experts.

      
        
          
          

        

        
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    10.05 Delegation
      of
      Duties.
      The
      Administrative Agent may perform any and all of its duties and exercise its
      rights and powers hereunder or under any other Loan Document by or through
      any
      one or more sub agents appointed by the Administrative Agent. The Administrative
      Agent and any such sub agent may perform any and all of its duties and exercise
      its rights and powers by or through their respective Related Parties. The
      exculpatory provisions of this Article shall apply to any such sub agent
      and to the Related Parties of the Administrative Agent and any such sub agent,
      and shall apply to their respective activities in connection with the
      syndication of the credit facilities provided for herein as well as activities
      as Administrative Agent.

     

    10.06 Resignation
      of
      Administrative Agent.
      The
      Administrative Agent may at any time give notice of its resignation to the
      Lenders, the L/C Issuer and Holdings. Upon receipt of any such notice of
      resignation, the Majority Lenders shall have the right, in consultation with
      Holdings (except during the continuance of an Event of Default, in which case
      no
      consultation with Holdings shall be required), to appoint a successor, which
      shall be a bank with an office in the United States, or an Affiliate of any
      such
      bank with an office in the United States. If no such successor shall have been
      so appointed by the Majority Lenders and shall have accepted such appointment
      within 30 days after the retiring Administrative Agent gives notice of its
      resignation, then the retiring Administrative Agent may on behalf of the Lenders
      and the L/C Issuer, appoint a successor Administrative Agent meeting the
      qualifications set forth above; provided
      that if the
      Administrative Agent shall notify Holdings and the Lenders that no qualifying
      Person has accepted such appointment, then such resignation shall nonetheless
      become effective in accordance with such notice and (1) the retiring
      Administrative Agent shall be discharged from its duties and obligations
      hereunder and under the other Loan Documents (except that in the case of any
      collateral security held by the Administrative Agent on behalf of the Lenders
      or
      the L/C Issuer under any of the Loan Documents, the retiring Administrative
      Agent shall continue to hold such collateral security until such time as a
      successor Administrative Agent is appointed) and (2) all payments,
      communications and determinations provided to be made by, to or through the
      Administrative Agent shall instead be made by or to each Lender and the L/C
      Issuer directly, until such time as the Majority Lenders appoint a successor
      Administrative Agent as provided for above in this Section. Upon the acceptance
      of a successor’s appointment as Administrative Agent hereunder, such successor
      shall succeed to and become vested with all of the rights, powers, privileges
      and duties of the retiring (or retired) Administrative Agent, and the retiring
      Administrative Agent shall be discharged from all of its duties and obligations
      hereunder or under the other Loan Documents (if not already discharged therefrom
      as provided above in this Section). The fees payable by Holdings to a successor
      Administrative Agent shall be the same as those payable to its predecessor
      unless otherwise agreed between Holdings and such successor. After the retiring
      Administrative Agent’s resignation hereunder and under the other Loan Documents,
      the provisions of this Article and Section 11.04
      shall continue in
      effect for the benefit of such retiring Administrative Agent, its sub agents
      and
      their respective Related Parties in respect of any actions taken or omitted
      to
      be taken by any of them while the retiring Administrative Agent was acting
      as
      Administrative Agent.

     

    Any
      resignation by
      Wells Fargo as Administrative Agent pursuant to this Section shall also
      constitute its resignation as L/C Issuer and Swingline Lender. Upon the
      acceptance of a successor’s appointment as Administrative Agent hereunder,
      (a) such successor shall succeed to

      
        
          
          

        

        
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    and
      become vested
      with all of the rights, powers, privileges and duties of the retiring L/C Issuer
      and Swingline Lender, (b) the retiring L/C Issuer and Swingline Lender
      shall be discharged from all of their respective duties and obligations
      hereunder or under the other Loan Documents, and (c) the successor L/C
      Issuer shall issue letters of credit in substitution for the Letters of Credit,
      if any, outstanding at the time of such succession or make other arrangements
      satisfactory to the retiring L/C Issuer to effectively assume the obligations
      of
      the retiring L/C Issuer with respect to such Letters of Credit.

     

    10.07 Non-Reliance
      on
      Administrative Agent and Other Lenders.
      Each Lender and
      the L/C Issuer acknowledges that it has, independently and without reliance
      upon
      the Administrative Agent or any other Lender or any of their Related Parties
      and
      based on such documents and information as it has deemed appropriate, made
      its
      own credit analysis and decision to enter into this Agreement. Each Lender
      and
      the L/C Issuer also acknowledges that it will, independently and without
      reliance upon the Administrative Agent or any other Lender or any of their
      Related Parties and based on such documents and information as it shall from
      time to time deem appropriate, continue to make its own decisions in taking
      or
      not taking action under or based upon this Agreement, any other Loan Document
      or
      any related agreement or any document furnished hereunder or
      thereunder.

     

    10.08 No
      Other Duties,
      Etc.
      Anything herein
      to the contrary notwithstanding, none of the “Joint Lead Arrangers”, “Joint Book
      Managers”, “Documentation Agents” or “Co-Syndication Agents” listed on the cover
      page hereof shall have any powers, duties or responsibilities under this
      Agreement or any of the other Loan Documents, except in its capacity, as
      applicable, as the Administrative Agent, a Lender or the L/C Issuer
      hereunder.

     

    10.09 Collateral
      Matters.

     

    (a) The
      Administrative
      Agent is authorized on behalf of all the Lenders, without the necessity of
      any
      notice to or further consent from the Lenders, from time to time to take any
      action with respect to any Collateral or the Collateral Documents which may
      be
      necessary to perfect and maintain perfected the security interest in and Liens
      upon the Collateral granted pursuant to the Collateral Documents.

     

    (b) The
      Lenders
      irrevocably authorize the Administrative Agent, at its option and in its
      discretion, to release any Lien granted to or held by the Administrative Agent
      upon any Collateral (i) upon termination of the Commitments and payment in
      full of all Loans and all other Obligations known to the Administrative Agent
      and payable under this Agreement or any other Loan Document;
      (ii) constituting property sold or to be sold or disposed of as part of or
      in connection with any disposition permitted hereunder; (iii) constituting
      property in which Holdings or any Subsidiary owned no interest at the time
      the
      Lien was granted or at any time thereafter; (iv) constituting property
      leased to Holdings or any Subsidiary in a transaction permitted under this
      Agreement; (v) consisting of an instrument evidencing Indebtedness or other
      debt instrument, if the indebtedness evidenced thereby has been paid in full;
      (vi) if approved, authorized or ratified in writing by the Majority Lenders
      or all the Lenders, as the case may be, as provided in Section 11.01.
      Upon request by
      the Administrative Agent at any time, the Lenders will confirm in writing the
      Administrative Agent’s authority to release particular types or items of
      Collateral pursuant to this Section 10.09(b),
provided
      that the absence
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    such
      confirmation
      for whatever reason shall not affect the Administrative Agent’s rights under
      this Section 10.09.

     

    (c) Each
      Lender agrees
      with and in favor of each other (which agreement shall not be for the benefit
      of
      Holdings or any Subsidiary) that the Obligations to such Lender under this
      Agreement and the other Loan Documents shall not be secured by any real property
      collateral now or hereafter acquired by such Lender.

     

    10.10 Administrative
      Agent May File Proofs of Claim.
      In case of the
      pendency of any receivership, insolvency, liquidation, bankruptcy,
      reorganization, arrangement, adjustment, composition or other judicial
      proceeding relative to any Loan Party, the Administrative Agent (irrespective
      of
      whether the principal of any Loan or L/C Obligation shall then be due and
      payable as herein expressed or by declaration or otherwise and irrespective
      of
      whether the Administrative Agent shall have made any demand on Holdings) shall
      be entitled and empowered, by intervention in such proceeding or
      otherwise

     

    (a) to
      file and prove a
      claim for the whole amount of the principal and interest owing and unpaid in
      respect of the Loans, L/C Obligations and all other Obligations that are owing
      and unpaid and to file such other documents as may be necessary or advisable
      in
      order to have the claims of the Lenders, the L/C Issuer and the Administrative
      Agent (including any claim for the reasonable compensation, expenses,
      disbursements and advances of the Lenders, the L/C Issuer and the Administrative
      Agent and their respective agents and counsel and all other amounts due the
      Lenders, the L/C Issuer and the Administrative Agent under Sections 2.11,
3.08
      and 11.04)
      allowed in such
      judicial proceeding; and

     

    (b) to
      collect and
      receive any monies or other property payable or deliverable on any such claims
      and to distribute the same; and any custodian, receiver, assignee, trustee,
      liquidator, sequestrator or other similar official in any such judicial
      proceeding is hereby authorized by each Lender and the L/C Issuer to make such
      payments to the Administrative Agent and, in the event that the Administrative
      Agent shall consent to the making of such payments directly to the Lenders
      and
      the L/C Issuer, to pay to the Administrative Agent any amount due for the
      reasonable compensation, expenses, disbursements and advances of the
      Administrative Agent and its agents and counsel, and any other amounts due
      the
      Administrative Agent under Sections 2.11
      and 11.04.

     

    Nothing
      contained
      herein shall be deemed to authorize the Administrative Agent to authorize or
      consent to or accept or adopt on behalf of any Lender or the L/C Issuer any
      plan
      of reorganization, arrangement, adjustment or composition affecting the
      Obligations or the rights of any Lender or to authorize the Administrative
      Agent
      to vote in respect of the claim of any Lender in any such
      proceeding.

     

    ARTICLE
      XI.

     

    MISCELLANEOUS

     

    11.01 Amendments
      and
      Waivers.

      
        
          
          

        

        
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    (a) Except
      as otherwise
      provided herein or in any other Loan Document, (i) no amendment to any provision
      of this Agreement or any of the other Loan Documents shall in any event be
      effective unless the same shall be in writing and signed by Holdings (or other
      Loan Party thereto, as applicable), the Administrative Agent and the Majority
      Lenders (or the Administrative Agent with the written consent of the Majority
      Lenders); and (ii) no waiver of any provision of this Agreement or any other
      Loan Document, or consent to any departure by Holdings or other party therefrom,
      shall in any event be effective unless the same shall be in writing and signed
      by the Administrative Agent and the Majority Lenders (or the Administrative
      Agent with the consent of the Majority Lenders). Any such amendment, waiver
      or
      consent shall be effective only in the specific instance and for the specific
      purpose for which given; provided,
however,
      that no
      amendment, waiver or consent shall do any of the following:

     

    (A) increase
      the
      amount, or extend the stated expiration or termination date, of the Term B
      Commitment of any Term B Lender without the consent of such Term B
      Lender;

     

    (B) reduce
      or forgive
      the principal of, or interest or rate of interest on, the Term B Loans of any
      Term B Lender or any fee or other amount payable to any Term B Lender hereunder
      without the consent of such Term B Lender; provided,
however,
      that only the
      consent of the Majority Lenders shall be necessary to change the manner of
      computation of any financial covenant or related definition used in determining
      the Applicable Margin that would result in a reduction of any interest rate
      on
      any Term B Loan, or to amend the default rate of interest as determined under
      Section
      2.10(c)
      or to waive any
      obligation of Holdings to pay interest at the default rate of
      interest;

     

    (C) postpone
      any date
      fixed for any payment in respect of principal of, or interest on, the Term
      B
      Loans of any Term B Lender or any fee or other amount payable to the any Term
      B
      Lender hereunder without the consent of such Term B Lender;

     

    and
      provided
      further, however,
      that no
      amendment, waiver or consent shall do any of the following:

     

    (D) increase
      the
      amount, or extend the stated expiration or termination date, of the Revolving
      Commitment of any Revolving Lender without the consent of such Revolving
      Lender;

     

    (E) reduce
      or forgive
      the principal of, or interest or rate of interest on, the Revolving Loans of
      any
      Revolving Lender or any fee or other amount payable to any Revolving Lender
      hereunder without the consent of such Revolving Lender; provided,
however,
      that only the
      consent of the Majority Lenders shall be necessary to change the manner of
      computation of any financial covenant or related definition used in determining
      the Applicable Margin or Applicable Fee Amount that would result in a reduction
      of any interest rate on any Revolving Loan or in a reduction of any Commitment
      Fees or Letter of Credit fees, or to amend the default rate of interest as
      determined under Section
      2.10(c)
      or to waive any
      obligation of Holdings to pay interest at the default rate of
      interest;

      
        
          
          

        

        
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    (F) postpone
      any date
      fixed for any payment in respect of principal of, or interest on, the Revolving
      Loans of any Revolving Lender or any fee or other amount payable to any
      Revolving Lender hereunder without the consent of such Revolving
      Lender;

     

    and
      provided
      further, however,
      that, unless in
      writing and signed by all of the Lenders (or by the Administrative Agent with
      the written consent of all the Lenders), no amendment, waiver or consent shall
      do any of the following:

     

    (G) change
      the
      definition of “Majority Class Lenders”, “Majority Lenders”, “Majority Revolving
      Lenders” or “Majority Term B Lenders” or any definition or provision of this
      Agreement requiring the approval of Majority Lenders or some other specified
      amount of Lenders;

     

    (H) consent
      to the
      assignment or transfer by Holdings or any other Loan Party of any of its rights
      and obligations under the Loan Documents;

     

    (I) release
      any
      Guarantor or any material portion of the Collateral except as contemplated
      herein, in the Guaranty or in the Collateral Documents;

     

    (J) amend,
      modify or
      waive the provisions of Section
      2.14
      or Section
      9.03;
      or

     

    (K) amend,
      modify or
      waive the provisions of this Section
      11.01(a);

     

    provided,
further,
      that (1) no
      amendment, waiver or consent shall, unless in writing and signed by the
      Administrative Agent in addition to the Lenders required hereinabove to take
      such action, affect the rights, obligations or duties of the Administrative
      Agent under any Loan Document, (2) no amendment, waiver or consent shall,
      unless in writing and signed by the L/C Issuer in addition to the Lenders
      required hereinabove to take such action, affect the rights, obligations or
      duties of the L/C Issuer under any Loan Document, (3) no amendment, waiver
      or consent shall, unless in writing and signed by the Swingline Lender in
      addition to the Lenders required hereinabove to take such action, affect the
      rights, obligations or duties of the Swingline Lender under any Loan Document,
      (4) the Fee Letters and documents evidencing Specified Swap Contracts may
      be amended, or rights or privileges thereunder waived, in a writing executed
      only by the parties thereto and (5) Section 11.07(h)
      may not be
      amended, waived or otherwise modified without the consent of each Granting
      Lender all or any part of whose Loans are being funded by an SPC at the time
      of
      such amendment, waiver or other modification. Notwithstanding anything to the
      contrary herein, a Defaulting Lender shall not have any right to approve or
      disapprove any amendment, waiver or consent hereunder, except that the
      Commitment of such Lender may not be increased without its consent, nor may
      any
      amendment, waiver or consent reduce or forgive the principal of, or accrued
      and
      unpaid interest on, the outstanding Loans of such Lender or any accrued fee
      or
      other accrued amount payable to such Lender without its consent.

     

    (b) In
      connection with
      any such proposed amendment, waiver or consent requiring the consent of all
      Term B Lenders, all Revolving Lenders or all Lenders, as the case may be
      (such proposed amendment, waiver or consent, a “Proposed
      Change”),
      if the consent
      of the Majority Term B Lenders (in the case of any proposed amendment,
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    consent
      requiring
      the consent of all Term B Lenders), the Majority Revolving Lenders (in the
      case of any proposed amendment, waiver or consent requiring the consent of
      all
      Revolving Lenders) or the Majority Lenders (in the case of any proposed
      amendment, waiver or consent requiring the consent of all Lenders) is obtained,
      but the consent of other Lenders whose consent is required is not obtained
      (any
      such Lender whose consent is not obtained as described in this Section 11.01
      being referred to
      as a “Non-Consenting
      Lender”),
      then, so long
      as the Lender that is acting as the Administrative Agent is not a Non-Consenting
      Lender, Holdings may replace such Non-Consenting Lender in accordance with
      Section 11.11.

     

    No
      failure or delay by the Administrative Agent or any Lender in exercising any
      right under this Agreement or any other Loan Document shall operate as a waiver
      thereof or of any other right hereunder or thereunder nor shall any single
      or
      partial exercise of any such right preclude any other further exercise thereof
      or of any other right hereunder or thereunder. Unless otherwise specified in
      such waiver or consent, a waiver or consent given hereunder shall be effective
      only in the specific instance and for the specific purpose for which given.
      The
      Lenders may condition the giving or making of any amendment, waiver or consent
      of any term, covenant, agreement or condition of this Agreement or any other
      Loan Document on payment of a fee by Holdings.

     

    11.02 Notices;
      Effectiveness; Electronic Communication.

     

    (a) Notices
      Generally.
      Except in the
      case of notices and other communications expressly permitted to be given by
      telephone (and except as provided in subsection (b) below), all notices and
      other communications provided for herein shall be in writing and shall be
      delivered by hand or overnight courier service, mailed by certified or
      registered mail or sent by telecopier as follows, and all notices and other
      communications expressly permitted hereunder to be given by telephone shall
      be
      made to the applicable telephone number, as follows:

     

    (i) if
      to Holdings, the
      Administrative Agent, the L/C Issuer or the Swingline Lender, to the address,
      telecopier number, electronic mail address or telephone number specified for
      such Person on Schedule
      11.02;
      and

     

    (ii) if
      to any other
      Lender, to the address, telecopier number, electronic mail address or telephone
      number specified in its Administrative Questionnaire.

     

    Notices
      sent by
      hand or overnight courier service, or mailed by certified or registered mail,
      shall be deemed to have been given when received; notices sent by telecopier
      shall be deemed to have been given when sent (except that, if not given during
      normal business hours for the recipient, shall be deemed to have been given
      at
      the opening of business on the next business day for the recipient). Notices
      delivered through electronic communications to the extent provided in
      subsection (b) below, shall be effective as provided in such
      subsection (b).

     

    (b) Electronic
      Communications.
      Notices and other
      communications to the Lenders and the L/C Issuer hereunder may be delivered
      or
      furnished by electronic communication (including e mail and Internet or intranet
      websites) pursuant to procedures approved by the Administrative Agent,
provided
      that the foregoing
      shall not apply to notices to any Lender or the L/C Issuer pursuant to
Article II
      or Article III
      if such Lender or
      the L/C Issuer,

      
        
          
          

        

        
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    as
      applicable, has notified the Administrative Agent that it is incapable of
      receiving notices under such Article by electronic communication. The
      Administrative Agent or Holdings may, in its discretion, agree to accept notices
      and other communications to it hereunder by electronic communications pursuant
      to procedures approved by it, provided
      that approval of
      such procedures may be limited to particular notices or
      communications.

     

    Unless
      the
      Administrative Agent otherwise prescribes, (i) notices and other
      communications sent to an e-mail address shall be deemed received upon the
      sender’s receipt of an acknowledgement from the intended recipient (such as by
      the “return receipt requested” function, as available, return e-mail or other
      written acknowledgement), provided
      that if such
      notice or other communication is not sent during the normal business hours
      of
      the recipient, such notice or communication shall be deemed to have been sent
      at
      the opening of business on the next business day for the recipient, and
      (ii) notices or communications posted to an Internet or intranet website
      shall be deemed received upon the deemed receipt by the intended recipient
      at
      its e-mail address as described in the foregoing clause (i) of
      notification that such notice or communication is available and identifying
      the
      website address therefor.

     

    (c) Change
      of
      Address, Etc.
      Each of Holdings,
      the Administrative Agent, the L/C Issuer and the Swingline Lender may change
      its
      address, telecopier or telephone number for notices and other communications
      hereunder by notice to the other parties hereto. Each other Lender may change
      its address, telecopier or telephone number for notices and other communications
      hereunder by notice to Holdings, the Administrative Agent, the L/C Issuer and
      the Swingline Lender.

     

    (d) Reliance
      by
      Administrative Agent, L/C Issuer and Lenders. The
      Administrative
      Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon
      any
      notices (including telephonic Notices of Borrowing) purportedly given by or
      on
      behalf of Holdings even if (i) such notices were not made in a manner
      specified herein, were incomplete or were not preceded or followed by any other
      form of notice specified herein, or (ii) the terms thereof, as understood
      by the recipient, varied from any confirmation thereof. Holdings shall indemnify
      the Administrative Agent, the L/C Issuer, each Lender and the Related Parties
      of
      each of them from all losses, costs, expenses and liabilities resulting from
      the
      reliance by such Person on each notice purportedly given by or on behalf of
      Holdings. All telephonic notices to and other telephonic communications with
      the
      Administrative Agent may be recorded by the Administrative Agent, and each
      of
      the parties hereto hereby consents to such recording.

     

    11.03 No
      Waiver;
      Cumulative Remedies.
      No failure to
      exercise and no delay in exercising, on the part of the Administrative Agent
      or
      any Lender, any right, remedy, power or privilege hereunder, shall operate
      as a
      waiver thereof; nor shall any single or partial exercise of any right, remedy,
      power or privilege hereunder preclude any other or further exercise thereof
      or
      the exercise of any other right, remedy, power or privilege. The rights provided
      for in this Agreement and the other Loan Documents are cumulative and are not
      exclusive of any other rights, powers, privileges or remedies provided by law
      or
      in equity, or under any other instrument, document or agreement now existing
      or
      hereafter arising.

     

    11.04 Expenses;
      Indemnity; Damage Waiver.

      
        
          
          

        

        
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    (a) Costs
      and
      Expenses.
      Holdings shall
      pay (i) all reasonable out of pocket expenses incurred by the
      Administrative Agent and its Affiliates (including the reasonable fees, charges
      and disbursements of counsel for the Administrative Agent), in connection with
      the syndication of the credit facilities provided for herein, the preparation,
      negotiation, execution, delivery and administration of this Agreement and the
      other Loan Documents or any amendments, modifications or waivers of the
      provisions hereof or thereof (whether or not the transactions contemplated
      hereby or thereby shall be consummated), (ii) all reasonable out of pocket
      expenses incurred by the L/C Issuer in connection with the issuance, amendment,
      renewal or extension of any Letter of Credit or any demand for payment
      thereunder and (iii) all out of pocket expenses incurred by the
      Administrative Agent, any Lender or the L/C Issuer (including the fees, charges
      and disbursements of any counsel for the Administrative Agent, any Lender or
      the
      L/C Issuer), and shall pay all fees and time charges for attorneys who may
      be
      employees of the Administrative Agent, any Lender or the L/C Issuer, in
      connection with the enforcement or protection of its rights (A) in
      connection with this Agreement and the other Loan Documents, including its
      rights under this Section, or (B) in connection with the Loans made or
      Letters of Credit issued hereunder, including all such out of pocket expenses
      incurred during any workout, restructuring or negotiations in respect of such
      Loans or Letters of Credit.

     

    (b) Indemnification
      by Holdings.
      Holdings shall
      indemnify the Administrative Agent (and any sub-agent thereof), each Lender
      and
      the L/C Issuer, and each Related Party of any of the foregoing Persons (each
      such Person being called an “Indemnitee”)
      against, and
      hold each Indemnitee harmless from, any and all losses, claims, damages,
      liabilities and related expenses (including the fees, charges and disbursements
      of any counsel for any Indemnitee), and shall indemnify and hold harmless each
      Indemnitee from all fees and time charges and disbursements for attorneys who
      may be employees of any Indemnitee, incurred by any Indemnitee or asserted
      against any Indemnitee by any third party or by Holdings or any other Loan
      Party
      arising out of, in connection with, or as a result of (i) the execution or
      delivery of this Agreement, any other Loan Document or any agreement or
      instrument contemplated hereby or thereby, the performance by the parties hereto
      of their respective obligations hereunder or thereunder, the consummation of
      the
      transactions contemplated hereby or thereby, or, in the case of the
      Administrative Agent (and any sub-agent thereof) and its Related Parties only,
      the administration of this Agreement and the other Loan Documents, (ii) any
      Loan or Letter of Credit or the use or proposed use of the proceeds therefrom
      (including any refusal by the L/C Issuer to honor a demand for payment under
      a
      Letter of Credit if the documents presented in connection with such demand
      do
      not strictly comply with the terms of such Letter of Credit), (iii) any
      actual or alleged presence or release of Hazardous Materials on or from any
      property owned or operated by Holdings or any of its Subsidiaries, or any
      Environmental Claims related in any way to Holdings or any of its Subsidiaries,
      or (iv) any actual or prospective claim, litigation, investigation or
      proceeding relating to any of the foregoing, whether based on contract, tort
      or
      any other theory, whether brought by a third party or by Holdings or any other
      Loan Party, and regardless of whether any Indemnitee is a party thereto;
provided
      that such
      indemnity shall not, as to any Indemnitee, be available to the extent that
      such
      losses, claims, damages, liabilities or related expenses (x) are determined
      by a court of competent jurisdiction by final and nonappealable judgment to
      have
      resulted from the gross negligence or willful misconduct of such Indemnitee
      or
      (y) result from a claim brought by Holdings or any other Loan Party against
      an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder
      or under any

      
        
          
          

        

        
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    other
      Loan
      Document, if Holdings or such Loan Party has obtained a final and nonappealable
      judgment in its favor on such claim as determined by a court of competent
      jurisdiction.

     

    (c) Reimbursement
      by
      Lenders.
      To the extent
      that Holdings for any reason fails to indefeasibly pay any amount required
      under
      subsection (a) or (b) of this Section to be paid by it to the
      Administrative Agent (or any sub-agent thereof), the L/C Issuer or any Related
      Party of any of the foregoing, each Lender severally agrees to pay to the
      Administrative Agent (or any such sub-agent), the L/C Issuer or such Related
      Party, as the case may be, such Lender’s Proportionate Share (determined as of
      the time that the applicable unreimbursed expense or indemnity payment is
      sought) of such unpaid amount, provided
      that the
      unreimbursed expense or indemnified loss, claim, damage, liability or related
      expense, as the case may be, was incurred by or asserted against the
      Administrative Agent (or any such sub-agent) or the L/C Issuer in its capacity
      as such, or against any Related Party of any of the foregoing acting for the
      Administrative Agent (or any such sub-agent) or L/C Issuer in connection with
      such capacity. The obligations of the Lenders under this subsection (c) are
      subject to the provisions of Section 2.13(d).

     

    (d) Waiver
      of
      Consequential Damages, Etc.
      To the fullest
      extent permitted by applicable law, Holdings shall not assert, and hereby
      waives, any claim against any Indemnitee, on any theory of liability, for
      special, indirect, consequential or punitive damages (as opposed to direct
      or
      actual damages) arising out of, in connection with, or as a result of, this
      Agreement, any other Loan Document or any agreement or instrument contemplated
      hereby, the transactions contemplated hereby or thereby, any Loan or Letter
      of
      Credit or the use of the proceeds thereof. No Indemnitee referred to in
      subsection (b) above shall be liable for any damages arising from the use
      by unintended recipients of any information or other materials distributed
      by it
      through telecommunications, electronic or other information transmission systems
      in connection with this Agreement or the other Loan Documents or the
      transactions contemplated hereby or thereby.

     

    (e) Payments.
      All amounts due
      under this Section shall be payable not later than ten Business Days after
      demand therefor.

     

    (f) Survival.
      The agreements in
      this Section shall survive the resignation of the Administrative Agent and
      the
      L/C Issuer, the replacement of any Lender, the termination of the Aggregate
      Revolving Commitment and Aggregate Term B Commitment and the repayment,
      satisfaction or discharge of all the other Obligations.

     

    11.05 Marshalling;
      Payments Set Aside.
      Neither the
      Administrative Agent nor the Lenders shall be under any obligation to marshal
      any assets in favor of Holdings or any other Person or against or in payment
      of
      any or all of the Obligations. To the extent that any Loan Party makes a payment
      to the Administrative Agent or the Lenders, or the Administrative Agent or
      the
      Lenders exercise their right of set-off, and such payment or the proceeds of
      such set-off or any part thereof are subsequently invalidated, declared to
      be
      fraudulent or preferential, set aside or required (including pursuant to any
      settlement entered into by the Administrative Agent or such Lender in its
      discretion) to be repaid to a trustee, receiver or any other party, in
      connection with any Insolvency Proceeding or otherwise, then (a) to the
      extent of such recovery the

      
        
          
          

        

        
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    obligation
      or part
      thereof originally intended to be satisfied shall be revived and continued
      in
      full force and effect as if such payment had not been made or such set-off
      had
      not occurred, and (b) each Lender severally agrees to pay to the
      Administrative Agent upon demand its Proportionate Share of any amount so
      recovered from or repaid by the Administrative Agent.

     

    11.06 Successors
      and
      Assigns.

     

    (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
      neither Holdings nor any other Loan Party may assign or otherwise transfer
      any
      of its rights or obligations hereunder 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 subsection (b) of
      this Section, (ii) by way of participation in accordance with the
      provisions of subsection (d) of this Section, (iii) by way of pledge
      or assignment of a security interest subject to the restrictions of
      subsection (f) of this Section, or (iv) to an SPC in accordance with
      the provisions of subsection (h) 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 subsection (d) of
      this Section and, to the extent expressly contemplated hereby, the Related
      Parties of each of the Administrative Agent, the L/C Issuer and the Lenders)
      any
      legal or equitable right, remedy or claim under or by reason of this
      Agreement.

     

    (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 and the Loans (including for purposes of this subsection (b),
      participations in L/C Obligations and in Swingline 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 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 (which for this purpose includes
      Loans outstanding thereunder) or, if the 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 Commitments, or $1,000,000, in the case of any
      assignment in respect of the Term B Loans, unless each of the
      Administrative Agent and, so long as no Event of Default has occurred and is
      continuing, Holdings otherwise consents (each such consent not to be
      unreasonably withheld or delayed); provided,
however,
      that concurrent
      assignments to members of an Assignee Group and concurrent assignments from
      members of an Assignee Group to a single Eligible Assignee (or to an Eligible
      Assignee and members of its Assignee Group) will be treated as a single
      assignment for purposes of determining whether such minimum amount has been
      met;

      
        
          
          

        

        
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    (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 Loans or the Commitment assigned, except that this clause (ii) shall
      not apply to rights in respect of Swingline Loans;

     

    (iii) any
      assignment of a
      Revolving Commitment must be approved by the Administrative Agent, the L/C
      Issuer and the Swingline Lender unless the Person that is the proposed assignee
      is itself a Revolving Lender (whether or not the proposed assignee would
      otherwise qualify as an Eligible Assignee) (each such approval not to be
      unreasonably withheld or delayed); 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 in the amount,
      if
      any, required as set forth in Schedule 11.06,
      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
      subsection (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 4.01,
4.03,
4.04,
      and 11.04.
      Upon request,
      Holdings (at its expense) shall execute and deliver a Note to the assignee
      Lender. Any assignment or transfer by a Lender of rights or obligations under
      this Agreement that does not comply with this subsection 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 subsection (d) of this
      Section.

     

    (c) Register.
      The
      Administrative Agent, acting solely for this purpose as an agent of Holdings,
      shall maintain at the Administrative Agent’s Payment Office 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 Commitments of, and principal
      amounts of the Loans and L/C Obligations owing to, each Lender pursuant to
      the
      terms hereof from time to time (the “Register”).
      The entries in
      the Register shall be conclusive, and Holdings, 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 each of Holdings, the L/C Issuer and J.P. Morgan Securities,
      Inc.
      at any reasonable time and from time to time upon reasonable prior notice.
      In
      addition, at any time that a request for a consent, waiver or amendment to
      the
      Loan Documents is pending, any Lender may request and receive from the
      Administrative Agent a copy of the Register.

      
        
          
          

        

        
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    (d) Participations.
      Any Lender may at
      any time, without the consent of, or notice to, Holdings or the Administrative
      Agent, sell participations to any Person (other than a natural person or
      Holdings or any of Holdings’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 and/or the Loans (including such
      Lender’s participations in L/C Obligations and/or Swingline 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) Holdings, the Administrative
      Agent, the Lenders and the 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, waiver or other modification
      described in the provisos to Section 11.01(a)
      that affects such
      Participant. Subject to subsection (e) of this Section, Holdings agrees
      that each Participant shall be entitled to the benefits of Sections 4.01,
4.03
      and 4.04 to
      the same extent
      as if it were a Lender and had acquired its interest by assignment pursuant
      to
      subsection (b) of this Section. To the extent permitted by law, each
      Participant also shall be entitled to the benefits of Section 11.08 as
      though it were a
      Lender, provided
      such Participant
      agrees to be subject to Section 2.14
      as though it were
      a Lender.

     

    (e) Limitations
      upon
      Participant Rights.
      A Participant
      shall not be entitled to receive any greater payment under Section 4.01
      or 4.03 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 Holdings’s prior written consent. A Participant that
      would be a Foreign Lender if it were a Lender shall not be entitled to the
      benefits of Section 4.01
      unless Holdings is
      notified of the participation sold to such Participant and such Participant
      agrees, for the benefit of Holdings, to comply with Section 4.01(e)
      as though it were
      a Lender.

     

    (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 (including under its Note, if any) 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

      
        
          
          

        

        
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    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.

     

    (h) Special
      Purpose
      Funding Vehicles.
      Notwithstanding
      anything to the contrary contained herein, any Lender (a “Granting
      Lender”)
      may grant to a
      special purpose funding vehicle identified as such in writing from time to
      time
      by the Granting Lender to the Administrative Agent and Holdings (an
“SPC”)
      the option to
      provide all or any part of any Loan that such Granting Lender would otherwise
      be
      obligated to make pursuant to this Agreement; provided
      that
      (i) nothing herein shall constitute a commitment by any SPC to fund any
      Loan, and (ii) if an SPC elects not to exercise such option or otherwise
      fails to make all or any part of such Loan, the Granting Lender shall be
      obligated to make such Loan pursuant to the terms hereof or, if it fails to
      do
      so, to make such payment to the Administrative Agent as is required under
Section 2.13.
      Each party hereto
      hereby agrees that (i) neither the grant to any SPC nor the exercise by any
      SPC of such option shall increase the costs or expenses or otherwise increase
      or
      change the obligations of Holdings under this Agreement (including its
      obligations under Section 4.03),
      (ii) no SPC
      shall be liable for any indemnity or similar payment obligation under this
      Agreement for which a Lender would be liable, and (iii) the Granting Lender
      shall for all purposes, including the approval of any amendment, waiver or
      other
      modification of any provision of any Loan Document, remain the lender of record
      hereunder. The making of a Loan by an SPC hereunder shall utilize the Commitment
      of the Granting Lender to the same extent, and as if, such Loan were made by
      such Granting Lender. In furtherance of the foregoing, each party hereto hereby
      agrees (which agreement shall survive the termination of this Agreement) that,
      prior to the date that is one year and one day after the payment in full of
      all
      outstanding commercial paper or other senior debt of any SPC, it will not
      institute against, or join any other Person in instituting against, such SPC
      any
      bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding
      under the laws of the United States or any State thereof. Notwithstanding
      anything to the contrary contained herein, any SPC may (i) with notice to,
      but without prior consent of Holdings and the Administrative Agent and with
      the
      payment of a processing fee in the amount of $2,500, assign all or any portion
      of its right to receive payment with respect to any Loan to the Granting Lender
      and (ii) disclose on a confidential basis any non-public information
      relating to its funding of Loans to any rating agency, commercial paper dealer
      or provider of any surety or guarantee or credit or liquidity enhancement to
      such SPC.

     

    (i) Resignation
      as
      L/C Issuer or Swingline Lender after Assignment.
      Notwithstanding
      anything to the contrary contained herein, if at any time Wells Fargo assigns
      all of its Commitment and Loans pursuant to subsection (b) above, Wells
      Fargo may, (i) upon 30 days’ notice to Holdings and the Lenders,
      resign as L/C Issuer and/or (ii) upon 30 days’ notice to Holdings, resign
      as Swingline Lender. In the event of any such resignation as L/C Issuer or
      Swingline Lender, Holdings shall be entitled to appoint from among the Revolving
      Lenders a successor L/C Issuer or Swingline Lender hereunder; provided,
however,
      that no failure
      by Holdings to appoint any such successor shall affect the resignation of Wells
      Fargo as L/C Issuer or Swingline Lender, as the case may be. If Wells Fargo
      resigns as L/C Issuer, it shall retain all the rights, powers, privileges and
      duties of the L/C Issuer hereunder with respect to all Letters of Credit
      outstanding as of the effective date of its resignation as L/C Issuer and all
      L/C Obligations with respect thereto (including the right to require the
      Revolving Lenders to make Base Rate Loans or fund risk participations in
      unreimbursed drawings, pursuant to Section 3.03).
      If Wells Fargo
      resigns as Swingline Lender, it shall retain all the rights of the Swingline
      Lender

      
        
          
          

        

        
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    provided
      for
      hereunder with respect to Swingline Loans made by it and outstanding as of
      the
      effective date of such resignation, including the right to require the Revolving
      Lenders to make Base Rate Loans or fund risk participations in outstanding
      Swingline Loans pursuant to Section 2.06.
      Upon the
      appointment of a successor L/C Issuer and/or Swingline Lender, (a) such
      successor shall succeed to and become vested with all of the rights, powers,
      privileges and duties of the retiring L/C Issuer or Swingline Lender, as the
      case may be, and (b) the successor L/C Issuer shall issue letters of credit
      in substitution for the Letters of Credit, if any, outstanding at the time
      of
      such succession or make other arrangements satisfactory to Wells Fargo to
      effectively assume the obligations of Wells Fargo with respect to such Letters
      of Credit.

     

    11.07 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
      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 pledgee referred to in
Section
      11.06(f)
      or (iii) any
      actual or prospective counterparty (or its advisors) to any swap or derivative
      transaction relating to Holdings and its obligations, (g) with the consent
      of Holdings 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
      Holdings.

     

    For
      purposes of
      this Section, “Information”
means
      all
      information received from Holdings or any Subsidiary relating to Holdings or
      any
      Subsidiary 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 Holdings or any
      Subsidiary.
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.

     

    Holdings
      acknowledges that (a) the Administrative Agent and/or the Joint Lead
      Arrangers will make available to the Lenders and the L/C Issuer materials and/or
      information provided by or on behalf of Holdings hereunder (collectively,
“Borrower
      Materials”)
      by posting the
      Borrower Materials on IntraLinks or another similar electronic system (the
      “Platform”)
      and
      (b) certain of the Lenders may be “public-side” Lenders (i.e.,
      Lenders that do
      not wish to receive

      
        
          
          

        

        
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    material
      non-public
      information with respect to the Borrower or its securities) (each, a
“Public
      Lender”).
      Holdings hereby
      agrees that (w) all Borrower Materials that are to be made available to Public
      Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum,
      shall mean that the word “PUBLIC” shall appear prominently on the first page
      thereof; (x) by marking Borrower Materials “PUBLIC,” Holdings shall be deemed to
      have authorized the Administrative Agent, the Joint Lead Arrangers, the L/C
      Issuer and the Lenders to treat such Borrower Materials as not containing any
      material non-public information with respect to Holdings or its securities
      for
      purposes of United States Federal and state securities laws; (y) all Borrower
      Materials marked “PUBLIC” are permitted to be made available through a portion
      of the Platform designated “Public Investor;” and (z) the Administrative Agent
      and the Joint Lead Arrangers shall be entitled to treat any Borrower Materials
      that are not marked “PUBLIC” as being suitable only for posting on a portion of
      the Platform not designated “Public Investor.”

     

    11.08 Set
      off.
      If an Event of
      Default shall have occurred and be continuing, each Lender, the L/C Issuer
      and
      each of their respective Affiliates is hereby authorized at any time and from
      time to time, to the fullest extent permitted by applicable law, to set off
      and
      apply any and all deposits (general or special, time or demand, provisional
      or
      final, in whatever currency) at any time held and other obligations (in whatever
      currency) at any time owing by such Lender, the L/C Issuer or any such Affiliate
      to or for the credit or the account of Holdings or any other Loan Party against
      any and all of the obligations of Holdings or such Loan Party now or hereafter
      existing under this Agreement or any other Loan Document to such Lender or
      the
      L/C Issuer, irrespective of whether or not such Lender or the L/C Issuer shall
      have made any demand under this Agreement or any other Loan Document and
      although such obligations of Holdings or such Loan Party may be contingent
      or
      unmatured or are owed to a branch or office of such Lender or the L/C Issuer
      different from the branch or office holding such deposit or obligated on such
      indebtedness. The rights of each Lender, the L/C Issuer and their respective
      Affiliates under this Section are in addition to other rights and remedies
      (including other rights of setoff) that such Lender, the L/C Issuer or their
      respective Affiliates may have. Each Lender and the L/C Issuer agrees to notify
      Holdings and the Administrative Agent promptly after any such setoff and
      application, provided
      that the failure
      to give such notice shall not affect the validity of such setoff and
      application.

     

    11.09 USA
      PATRIOT Act
      Notice.
      Each Lender that
      is subject to the Act (as hereinafter defined) and the Administrative Agent
      (for
      itself and not on behalf of any Lender) hereby notifies Holdings that pursuant
      to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed
      into law October 26, 2001)) (the “Act”),
      it is required
      to obtain, verify and record information that identifies each Loan Party, which
      information includes the name and address of each Loan Party and other
      information that will allow such Lender or the Administrative Agent, as
      applicable, to identify each Loan Party in accordance with the Act.

     

    11.10 Guaranty.
xxv) Guaranty.
      Each of the
      Guarantors unconditionally and irrevocably, jointly and severally, guarantees
      to
      the Administrative Agent, the Joint Lead Arrangers, the L/C Issuer and the
      Lenders, and their respective successors, endorsers, transferees and assigns
      (the “Guaranteed
      Persons”),
      the full and
      prompt payment when due (whether at stated maturity, by required prepayment,
      declaration, acceleration, demand or otherwise) and performance of all
      indebtedness, liabilities and other obligations of Holdings to any Guaranteed
      Person, whether arising out of or in connection with this Agreement, any other
      Loan Document

      
        
          
          

        

        
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    or
      otherwise, including all unpaid principal of the Loans, all L/C Obligations,
      all
      interest accrued thereon, all fees due under this Agreement and all other
      amounts payable by Holdings to any Guaranteed Person thereunder or in connection
      therewith. The terms “indebtedness,” “liabilities” and “obligations” are used
      herein in their most comprehensive sense and include any and all advances,
      debts, obligations and liabilities, now existing or hereafter arising, whether
      voluntary or involuntary and whether due or not due, absolute or contingent,
      liquidated or unliquidated, determined or undetermined, and whether recovery
      upon such indebtedness, liabilities and obligations may be or hereafter become
      unenforceable or shall be an allowed or disallowed claim under the Bankruptcy
      Code or other applicable law. The foregoing indebtedness, liabilities and other
      obligations of Holdings shall hereinafter be collectively referred to as the
      “Guaranteed
      Obligations.”
The
      Guaranteed
      Obligations include interest which, but for an Insolvency Proceeding, would
      have
      accrued on such Guaranteed Obligations, whether or not a claim is allowed
      against Holdings for such interest in any such Insolvency
      Proceeding.

     

    (b) Separate
      Obligation.
      Each Guarantor
      acknowledges and agrees (i) that the Guaranteed Obligations are separate
      and distinct from any indebtedness, obligations or liabilities arising under
      or
      in connection with any other agreement, instrument or guaranty, including under
      any provision of this Agreement other than this Section 11.10,
      executed at any
      time by such Guarantor in favor of any Guaranteed Person, and (ii) such
      Guarantor shall pay and perform all of the Guaranteed Obligations as required
      under this Section 11.10,
      and each
      Guaranteed Person may enforce any and all of its rights and remedies hereunder,
      without regard to any other agreement, instrument or guaranty, including any
      provision of this Agreement other than this Section 11.10,
      at any time
      executed by such Guarantor in favor of any Guaranteed Person, regardless of
      whether or not any such other agreement, instrument or guaranty, or any
      provision thereof or hereof, shall for any reason become unenforceable or any
      of
      the indebtedness, obligations or liabilities thereunder or hereunder shall
      have
      been discharged, whether by performance, avoidance or otherwise. Each Guarantor
      acknowledges that in providing benefits to Holdings and such Guarantor, the
      Guaranteed Persons are relying upon the enforceability of this Section 11.10
      and the Guaranteed
      Obligations as separate and distinct indebtedness, obligations and liabilities
      of such Guarantor, and each Guarantor agrees that each Guaranteed Person would
      be denied the full benefit of their bargain if at any time this Section 11.10
      or the Guaranteed
      Obligations were treated any differently. The fact that the Guaranty of each
      Guarantor is set forth in this Agreement rather than in a separate guaranty
      document is for the convenience of Holdings and the Guarantors and shall in
      no
      way impair or adversely affect the rights or benefits of any Guaranteed Person
      under this Section 11.10.
      Each Guarantor
      agrees to execute and deliver a separate agreement, immediately upon request
      at
      any time of any Guaranteed Person, evidencing such Guarantor’s obligations under
      this Section 11.10.
      Upon the
      occurrence of any Event of Default, a separate action or actions may be brought
      against each Guarantor, whether or not Holdings or any other Guarantor or Person
      is joined therein or a separate action or actions are brought against Holdings
      or any other Guarantor or Person.

     

    (c) Limitation
      of
      Guaranty.
      To the extent
      that any court of competent jurisdiction shall impose by final judgment under
      applicable law (including the California Uniform Fraudulent Transfer Act and
      §§544 and 548 of the Bankruptcy Code) any limitations on the amount of any
      Guarantor’s liability with respect to the Guaranteed Obligations which any
      Guaranteed Person can enforce under this Section 11.10,
      each Guaranteed
      Person by its

      
        
          
          

        

        
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    acceptance
      hereof
      accepts such limitation on the amount of such Guarantor’s liability hereunder to
      the extent needed to make this Section 11.10
      fully enforceable
      and nonavoidable.

     

    (d) Liability
      of
      Guarantor.
      The liability of
      each Guarantor under this Section 11.10
      shall be
      irrevocable, absolute, independent and unconditional, and shall not be affected
      by any circumstance which might constitute a discharge of a surety or guarantor
      other than the indefeasible payment and performance in full of all Guaranteed
      Obligations. In furtherance of the foregoing and without limiting the generality
      thereof, each Guarantor agrees as follows:

     

    (i) such
      Guarantor’s
      liability hereunder shall be the immediate, direct, and primary obligation
      of
      such Guarantor and shall not be contingent upon any Guaranteed Person’s exercise
      or enforcement of any remedy it may have against Holdings or any other Person,
      or against any collateral or other security for any Guaranteed
      Obligations;

     

    (ii) this
      Guaranty is a
      guaranty of payment when due and not merely of collectibility;

     

    (iii) such
      Guarantor’s
      payment of a portion, but not all, of the Guaranteed Obligations shall in no
      way
      limit, affect, modify or abridge such Guarantor’s liability for any portion of
      the Guaranteed Obligations remaining unsatisfied; and

     

    (iv) such
      Guarantor’s
      liability with respect to the Guaranteed Obligations shall remain in full force
      and effect without regard to, and shall not be impaired or affected by, nor
      shall such Guarantor be exonerated or discharged by, any of the following
      events:

     

    (A) any
      Insolvency
      Proceeding;

     

    (B) any
      limitation,
      discharge, or cessation of the liability of Holdings or any other guarantor
      or
      Person for any Guaranteed Obligations due to any statute, regulation or rule
      of
      law, or any invalidity or unenforceability in whole or in part of any of the
      Guaranteed Obligations or the Loan Documents;

     

    (C) any
      merger,
      acquisition, consolidation or change in structure of Holdings or any other
      Guarantor or Person, or any sale, lease, transfer or other disposition of any
      or
      all of the assets or shares of Holdings or any other Guarantor or other
      Person;

     

    (D) any
      assignment or
      other transfer, in whole or in part, of any Guaranteed Person’s interests in and
      rights under this Guaranty or the other Loan Documents;

     

    (E) any
      claim, defense,
      counterclaim or set-off, other than that of prior performance, that Holdings,
      such Guarantor, any other guarantor or other Person may have or assert,
      including any defense of incapacity or lack of corporate or other authority
      to
      execute any of the Loan Documents;

      
        
          
          

        

        
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    (F) any
      Guaranteed
      Person’s amendment, modification, renewal, extension, cancellation or surrender
      of any Loan Document or any Guaranteed Obligations;

     

    (G) any
      Guaranteed
      Person’s exercise or nonexercise of any power, right or remedy with respect to
      any Guaranteed Obligations or any collateral;

     

    (H) any
      Guaranteed
      Person’s vote, claim, distribution, election, acceptance, action or inaction in
      any Insolvency Proceeding; or

     

    (I) any
      other guaranty,
      whether by any Guarantor or any other Person, of all or any part of the
      Guaranteed Obligations or any other indebtedness, obligations or liabilities
      of
      any Guaranteed Person.

     

    (e) Consents
      of
      Guarantor.
      Each Guarantor
      hereby unconditionally consents and agrees that, without notice to or further
      assent from such Guarantor:

     

    (i) the
      principal
      amount of the Guaranteed Obligations may be increased or decreased and
      additional indebtedness or obligations of Holdings under the Loan Documents
      may
      be incurred and the time, manner, place or terms of any payment under any Loan
      Document be extended or changed, by one or more amendments, modifications,
      renewals or extensions of any Loan Document or otherwise;

     

    (ii) the
      time for
      Holdings’ (or any other Person’s) performance of or compliance with any term,
      covenant or agreement on its part to be performed or observed under any Loan
      Document may be extended, or such performance or compliance waived, or failure
      in or departure from such performance or compliance consented to, all in such
      manner and upon such terms as any Guaranteed Person (or the Majority Lenders,
      as
      the case may be) may deem proper;

     

    (iii) each
      Guaranteed
      Person may request and accept other guarantees and may take and hold other
      security as collateral for the Guaranteed Obligations, and may, from time to
      time, in whole or in part, exchange, sell, surrender, release, subordinate,
      modify, waive, rescind, compromise or extend such other guaranties or security
      and may permit or consent to any such action or the result of any such action,
      and may apply such security and direct the order or manner of sale
      thereof;

     

    (iv) each
      Guaranteed
      Person may exercise, or waive or otherwise refrain from exercising, any other
      right, remedy, power or privilege even if the exercise thereof affects or
      eliminates any right of subrogation or any other right of such Guarantor against
      Holdings.

     

    (f) Guarantor’s
      Waivers.
      Each Guarantor
      waives and agrees not to assert:

     

    (i) any
      right to
      require the Administrative Agent, the L/C Issuer or any Lender to marshal assets
      in favor of Holdings, the Guarantors, any other guarantor or any other Person,
      to proceed against Holdings, any other guarantor or any other Person, to proceed
      against or exhaust any of the Collateral, to give notice of the terms, time
      and
      place of

      
        
          
          

        

        
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    any
      public or
      private sale of personal property security constituting the Collateral or other
      collateral for the Guaranteed Obligations or comply with any other provisions
      of
      Chapter 6 of Division 9 of the UCC (or any equivalent provision of any other
      applicable law) or to pursue any other right, remedy, power or privilege of
      the
      Administrative Agent, the L/C Issuer or any Lender whatsoever;

     

    (ii) the
      defense of the
      statute of limitations in any action hereunder or for the collection or
      performance of the Guaranteed Obligations;

     

    (iii) any
      defense arising
      by reason of any lack of corporate or other authority or any other defense
      of
      Holdings, such Guarantor or any other Person;

     

    (iv) any
      defense based
      upon any Guaranteed Person’s errors or omissions in the administration of the
      Guaranteed Obligations;

     

    (v) any
      rights to
      set-offs and counterclaims;

     

    (vi) without
      limiting
      the generality of the foregoing, to the fullest extent permitted by law, any
      defenses or benefits that may be derived from or afforded by applicable law
      limiting the liability of or exonerating guarantors or sureties, or which may
      conflict with the terms of this Section 11.10;

     

    (vii) any
      defense based
      upon an election of remedies (including, if available, an election to proceed
      by
      nonjudicial foreclosure) which destroys or impairs the subrogation rights of
      such Guarantor or the right of such Guarantor to proceed against Holdings or
      any
      other obligor of the Guaranteed Obligations for reimbursement;

     

    (viii) without
      limiting
      the generality of the foregoing, to the fullest extent permitted by law, any
      defenses or benefits that may be derived from or afforded by applicable law
      limiting the liability of or exonerating guarantors or sureties, or which may
      conflict with the terms of this Section 11.10,
      including any and
      all benefits that otherwise might be available to such Guarantor under
      California Civil Code §§1432, 2809, 2787 to 2855, inclusive, 2899 and 3433 and
      California Code of Civil Procedure §§580a, 580b, 580d and 726 or Texas Property
      Code §§51.003 - 51.005. Accordingly, each Guarantor waives all rights and
      defenses that such Guarantor may have because Holdings’ debt is secured by real
      property. This means, among other things: (A) the Administrative Agent, the
      L/C Issuer and the Lenders may collect from such Guarantor without first
      foreclosing on any real or personal property Collateral pledged by Holdings
      or
      such Guarantor; and (B) if the Administrative Agent forecloses on any real
      property Collateral pledged by Holdings or such Guarantor: (1) the amount
      of the debt may be reduced only by the price for which that Collateral is sold
      at the foreclosure sale, even if the Collateral is worth more than the sale
      price, and (2) the Administrative Agent, the L/C Issuer and the Lenders may
      collect from such Guarantor even if the Administrative Agent, by foreclosing
      on
      the real property Collateral, has destroyed any right such Guarantor may have
      to
      collect from Holdings. This is an unconditional and irrevocable waiver of any
      rights and defenses such Guarantor may have because Holdings’ debt is secured by
      real property. These rights and defenses include, but are not limited to, any
      rights of defenses based upon section 580a, 580b,

      
        
          
          

        

        
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    580d
      or 726 of the
      California Code of Civil Procedure or sections 51.003 - 51.005 of the Texas
      Property Code; and

     

    (ix) any
      and all notice
      of the acceptance of this Guaranty, and any and all notice of the creation,
      renewal, modification, extension or accrual of the Guaranteed Obligations,
      or
      the reliance by any Guaranteed Person upon this Guaranty, or the exercise of
      any
      right, power or privilege hereunder. The Guaranteed Obligations shall
      conclusively be deemed to have been created, contracted, incurred and permitted
      to exist in reliance upon this Guaranty. Each Guarantor waives promptness,
      diligence, presentment, protest, demand for payment, notice of default, dishonor
      or nonpayment and all other notices to or upon Holdings, such Guarantor or
      any
      other Person with respect to the Guaranteed Obligations.

     

    (g) Financial
      Condition of Holdings.
      No Guarantor
      shall have any right to require any Guaranteed Person to obtain or disclose
      any
      information with respect to: the financial condition or character of Holdings
      or
      the ability of Holdings to pay and perform the Guaranteed Obligations; the
      Guaranteed Obligations; any collateral or other security for any or all of
      the
      Guaranteed Obligations; the existence or nonexistence of any other guarantees
      of
      all or any part of the Guaranteed Obligations; any action or inaction on the
      part of any Guaranteed Person or any other Person; or any other matter, fact
      or
      occurrence whatsoever. Each Guarantor hereby acknowledges that it has undertaken
      its own independent investigation of the financial condition of Holdings and
      the
      other Loan Parties and all other matters pertaining to this Guaranty and further
      acknowledges that it is not relying in any manner upon any representation or
      statement of any Guaranteed Person with respect thereto.

     

    (h) Subrogation.
      Until the
      Guaranteed Obligations shall be satisfied in full and the Commitments shall
      be
      terminated, each Guarantor shall not have, and shall not directly or indirectly
      exercise (i) any rights that it may acquire by way of subrogation under
      this Section 11.10,
      by any payment
      hereunder or otherwise, (ii) any rights of contribution, indemnification,
      reimbursement or similar suretyship claims arising out of this Section 11.10
      or (iii) any
      other right which it might otherwise have or acquire (in any way whatsoever)
      which could entitle it at any time to share or participate in any right, remedy
      or security of any Guaranteed Person as against Holdings or other guarantors,
      whether in connection with this Section 11.10,
      any of the other
      Loan Documents or otherwise. If any amount shall be paid to any Guarantor on
      account of the foregoing rights at any time when all the Guaranteed Obligations
      shall not have been paid in full, such amount shall be held in trust for the
      benefit of each Guaranteed Person and shall forthwith be paid to the
      Administrative Agent to be credited and applied to the Guaranteed Obligations,
      whether matured or unmatured, in accordance with the terms of the Loan
      Documents.

     

    (i) Continuing
      Guaranty.
      This Guaranty is
      a continuing guaranty and agreement of subordination and shall continue in
      effect and be binding upon each Guarantor until termination of the Commitments
      and payment and performance in full of all Guaranteed Obligations, including
      Guaranteed Obligations which may exist continuously or which may arise from
      time
      to time under successive transactions, and each Guarantor expressly acknowledges
      that this Guaranty shall remain in full force and effect notwithstanding that
      there may be periods in which no Guaranteed Obligations exist.

      
        
          
          

        

        
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    (j) Reinstatement.
      This Guaranty
      shall continue to be effective or shall be reinstated and revived, as the case
      may be, if, for any reason, any payment of the Guaranteed Obligations by or
      on
      behalf of Holdings (or receipt of any proceeds of collateral) shall be
      rescinded, invalidated, declared to be fraudulent or preferential, set aside,
      voided or otherwise required to be repaid to Holdings, its estate, trustee,
      receiver or any other Person (including under the Bankruptcy Code or other
      state
      or federal law), or must otherwise be restored by any Guaranteed Person, whether
      as a result of Insolvency Proceedings or otherwise. All losses, damages, costs
      and expenses that any Guaranteed Person may suffer or incur as a result of
      any
      voided or otherwise set aside payments shall be specifically covered by the
      indemnity in favor of the Lenders and the Administrative Agent contained in
      Section 11.04.

     

    (k) Substantial
      Benefits.
      The funds that
      have been borrowed from the Lenders by Holdings have been and are to be
      contemporaneously used for the direct or indirect benefit of Holdings and each
      Guarantor. It is the position, intent and expectation of the parties that
      Holdings and each Guarantor have derived and will derive significant and
      substantial direct or indirect benefits from the accommodations that have been
      made by the Lenders under the Loan Documents.

     

    (l) Knowing
      and
      Explicit Waivers.
      EACH GUARANTOR
      ACKNOWLEDGES THAT IT EITHER HAS OBTAINED THE ADVICE OF LEGAL COUNSEL OR HAS
      HAD
      THE OPPORTUNITY TO OBTAIN SUCH ADVICE IN CONNECTION WITH THE TERMS AND
      PROVISIONS OF THIS SECTION 11.10.
      EACH GUARANTOR
      ACKNOWLEDGES AND AGREES THAT EACH OF THE WAIVERS AND CONSENTS SET FORTH HEREIN
      ARE MADE WITH FULL KNOWLEDGE OF THEIR SIGNIFICANCE AND CONSEQUENCES, AND THAT
      ALL SUCH WAIVERS AND CONSENTS HEREIN ARE EXPLICIT AND KNOWING AND WHICH EACH
      GUARANTOR EXPECTS TO BE FULLY ENFORCEABLE.

     

    (m) Release
      of
      Subsidiary Guarantors.
      Holdings may at
      any time deliver to the Administrative Agent a certificate from a Responsible
      Officer of Holdings certifying as of the date of the certificate that, after
      the
      consummation of the transaction or series of transactions described in such
      certificate (which certification shall also state that such transactions,
      individually or in the aggregate, will be in compliance with the terms and
      conditions of this Agreement, including to the extent applicable Section 8.02
      and Section 8.03,
      and that no Event
      of Default existed, exists or will exist, as the case may be, immediately
      before, as a result of or immediately after giving effect to such transaction
      or
      transactions and termination), the Guarantor identified in such certification
      will no longer be a Subsidiary of Holdings. Effective upon the consummation
      of
      the transaction or series of transactions described in such certificate effected
      in compliance with this Agreement, the Subsidiary identified in such
      certification shall thereupon automatically cease to be a Guarantor hereunder
      and shall cease to be a party hereto and shall thereupon automatically be
      released from its obligations under this Section 11.10
      and under the
      Security Agreement, and all Liens in favor of the Administrative Agent and
      the
      Lenders under the Collateral Documents in respect of the property of such
      Subsidiary shall thereupon terminate. Holdings shall promptly notify the
      Administrative Agent of the consummation of any such transaction or series
      of
      transactions. The Administrative Agent, on behalf of the Lenders, shall, at
      Holdings’ expense, execute and deliver such instruments as Holdings may
      reasonably request to evidence such release and Lien termination.

      
        
          
          

        

        
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    11.11 Replacement
      of
      Lenders.
      If any Lender
      requests compensation under Section 4.03,
      or if Holdings is
      required to pay any additional amount to any Lender or any Governmental
      Authority for the account of any Lender pursuant to Section 4.01,
      or if any Lender
      is a Defaulting Lender or if any other circumstance exists hereunder that gives
      Holdings the right to replace a Lender as a party hereto (including pursuant
      to
Section
      11.01(b)),
      then Holdings
      may, at its sole expense and effort, upon notice to such Lender and the
      Administrative Agent, require such Lender to assign and delegate, without
      recourse (in accordance with and subject to the restrictions contained in,
      and
      consents required by, Section 11.06),
      all of its
      interests, rights and obligations under this Agreement and the related Loan
      Documents to an assignee that shall assume such obligations (which assignee
      may
      be another Lender, if a Lender accepts such assignment), provided
      that:

     

    (i) Holdings
      shall have
      paid to the Administrative Agent the assignment fee specified in Section 11.06;

     

    (ii) such
      Lender shall
      have received payment of an amount equal to the outstanding principal of its
      Loans and L/C Advances, accrued interest thereon, accrued fees and all other
      amounts payable to it hereunder and under the other Loan Documents (including
      any amounts under Section 4.04)
      from the assignee
      (to the extent of such outstanding principal and accrued interest and fees)
      or
      Holdings (in the case of all other amounts);

     

    (iii) in
      the case of any
      such assignment resulting from a claim for compensation under Section 4.03
      or payments
      required to be made pursuant to Section 4.01,
      such assignment
      will result in a reduction in such compensation or payments thereafter;
      and

     

    (iv) such
      assignment
      does not conflict with any Requirement of Law.

     

    A
      Lender shall not be required to make any such assignment or delegation if,
      prior
      thereto, as a result of a waiver by such Lender or otherwise, the circumstances
      entitling Holdings to require such assignment and delegation cease to
      apply.

     

    11.12 Notification
      of
      Addresses, Lending Offices, Etc.
      Each Lender shall
      notify the Administrative Agent in writing of any changes in the address to
      which notices to such Lender should be directed, of addresses of any Lending
      Office, of payment instructions in respect of all payments to be made to it
      hereunder and of such other administrative information as the Administrative
      Agent shall reasonably request.

     

    11.13 Counterparts;
      Integration; Effectiveness.
      This Agreement
      may be executed in counterparts (and by different parties hereto in different
      counterparts), each of which shall constitute an original, but all of which
      when
      taken together shall constitute a single contract. This Agreement and the other
      Loan Documents constitute the entire contract among the parties relating to
      the
      subject matter hereof and supersede any and all previous agreements and
      understandings, oral or written, relating to the subject matter hereof. Except
      as provided in Section 5.01,
      this Agreement
      shall become effective when it shall have been executed by the Administrative
      Agent and when the Administrative Agent shall have received counterparts hereof
      that, when taken together, bear the signatures of each of the other parties
      hereto. Delivery

      
        
          
          

        

        
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    of
      an executed counterpart of a signature page of this Agreement by telecopy or
      by
      email in pdf format shall be effective as delivery of a manually executed
      counterpart of this Agreement.

     

    11.14 Severability.
      Whenever
      possible, each provision of the Loan Documents shall be interpreted in such
      manner as to be effective and valid under all applicable laws and regulations.
      If, however, any provision of any of the Loan Documents shall be prohibited
      by
      or invalid under any such law or regulation in any jurisdiction, it shall,
      as to
      such jurisdiction, be deemed modified to conform to the minimum requirements
      of
      such law or regulation, or, if for any reason it is not deemed so modified,
      it
      shall be ineffective and invalid only to the extent of such prohibition or
      invalidity without affecting the remaining provisions of such Loan Document,
      or
      the validity or effectiveness of such provision in any other
      jurisdiction.

     

    11.15 No
      Third Parties
      Benefited.
      This Agreement is
      made and entered into for the sole protection and legal benefit of Holdings,
      the
      Company and the other Loan Parties, the Lenders, the Administrative Agent and
      the Administrative Agent-Related Persons, the Indemnitees and their respective
      permitted successors and assigns, and no other Person shall be a direct or
      indirect legal beneficiary of, or have any direct or indirect cause of action
      or
      claim in connection with, this Agreement or any of the other Loan
      Documents.

     

    11.16 Governing
      Law;
      Jurisdiction, Etc.

     

    (a) GOVERNING
      LAW.
      THIS AGREEMENT
      SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE
      OF
      CALIFORNIA.

     

    (b) SUBMISSION
      TO
      JURISDICTION.
      HOLDINGS AND EACH
      OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
      PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF
      CALIFORNIA SITTING IN SAN FRANCISCO COUNTY AND OF THE UNITED STATES DISTRICT
      COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA, AND ANY APPELLATE COURT FROM
      ANY
      THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
      AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF
      ANY
      JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES
      THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
      DETERMINED IN SUCH CALIFORNIA STATE COURT OR, TO THE FULLEST EXTENT PERMITTED
      BY
      APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT
      A
      FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY
      BE
      ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
      PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL
      AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER
      MAY
      OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT
      OR
      ANY OTHER LOAN DOCUMENT AGAINST HOLDINGS OR

      
        
          
          

        

        
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    ANY
      OTHER LOAN
      PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     

    (c) WAIVER
      OF
      VENUE.
      HOLDINGS AND EACH
      OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
      PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE
      TO
      THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
      TO
      THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH
      (B) OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES,
      TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
      INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
      COURT.

     

    (d) SERVICE
      OF
      PROCESS.
      EACH PARTY HERETO
      IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES
      IN
SECTION 11.02.
      NOTHING IN THIS
      AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY
      OTHER MANNER PERMITTED BY APPLICABLE LAW.

     

    (e) Nothing
      in this
Section 11.16
      shall override any
      contrary provision contained in any Specified Swap Contract.

     

    11.17 Waiver
      of Jury
      Trial.
      EACH PARTY HERETO
      HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
      ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
      INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
      DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED
      ON
      CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT
      NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
      EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF
      LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
      IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
      AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
      CERTIFICATIONS IN THIS SECTION.

     

    11.18 Treatment
      of
      Existing Credit Agreement.
      On the Effective
      Date, all loans outstanding under the Existing Credit Agreement shall be
      purchased by the Lenders in accordance with, and to the extent required under,
      Section 2.01,
      and all
      outstanding letters of credit issued under the Existing Credit Agreement shall
      be deemed to be Letters of Credit issued and outstanding under this Agreement
      (and all accrued unpaid fees thereon shall begin to accrue at the rates set
      forth in this Agreement). On and after the Effective Date, this Agreement shall
      amend, restate and supersede in its entirety and replace the Existing Credit
      Agreement; provided,
however,
      that the
      execution and delivery of this Agreement and the other Loan Documents shall
      not
      (a) operate as a waiver of any right, power or remedy of the Existing
      Lenders under the

      
        
          
          

        

        
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    Existing
      Credit
      Agreement and the other related documents, except to the extent expressly waived
      in this Agreement and the other Loan Documents, (b) extinguish, impair or
      constitute a novation of any obligations of Holdings or the Guarantors under
      the
      Existing Credit Agreement or the related documents except to the extent any
      such
      obligation is actually satisfied by Holdings or a Guarantor thereunder or
      (c) extinguish or impair any indemnification or similar rights under the
      Existing Credit Agreement which by their terms would survive the termination
      of
      the Existing Credit Agreement. Promptly upon the closing of this Agreement
      and
      the receipt by the Lenders of their respective Notes, such Lenders that were
      also Existing Lenders under the Existing Credit Agreement shall return to
      Holdings any Notes delivered to such Existing Lender in connection with the
      Existing Credit Agreement marked “cancelled”.

     

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    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed and delivered in San Francisco, California, by their proper and duly
      authorized officers as of the day and year first above written.

     

    THE
      BORROWER

     

    BUILDING
      MATERIALS
      HOLDING CORPORATION

     

    By:_______________________________________

    Name:

    Title:

    
      
        
           

        

      

      
        
          Signature
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            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    THE
      GUARANTORS

     

     

    BMC
      WEST
      CORPORATION

     

    By:_____________________________________

    Name:

    Title:

     

    BMC
      WEST
      CORPORATION SOUTHCENTRAL

     

    By:_____________________________________

    Name:

    Title:

     

    BMCW
      SOUTHCENTRAL,
      L.P.

     

    By:
      BMC WEST
      CORPORATION 

    SOUTHCENTRAL,
      its
      General Partner

     

    By:_____________________________________

    Name:

    Title:

     

    BMCW,
      LLC

     

    By:
      BMC WEST
      CORPORATION, its Managing Member

     

    By:_____________________________________

    Name:

    Title:

    
      
        
           

        

      

      
        
          Signature
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            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    SELECTBUILD
      CONSTRUCTION, INC.
(formerly known as BMC Construction, Inc.)

     

    By:_____________________________________

    Name:

    Title:

     

    KBI
      CONSTRUCTION,
      LLC

     

    By:
      SELECTBUILD
      CONSTRUCTION, INC., its Managing Member

     

    By:_____________________________________

    Name:

    Title:

     

    SELECTBUILD,
      LP

     

    By:
      BUILDING
      MATERIALS HOLDING CORPORATION, its General Partner

     

    By:_____________________________________

    Name:

    Title:

     

    VAUGHN
      ROAD, L.L.C.

     

    By:
      SELECTBUILD
      CONSTRUCTION, INC., its Sole Member 

     

    By:_____________________________________

    Name:

    Title:

    
      
        
           

        

      

      
        
          Signature
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    C
      CONSTRUCTION, INC.
(successor by merger to KBI Concrete, LLC and Total
      Concrete, LLC)

     

    By:_____________________________________

    Name:

    Title:

     

    KBI
      CONSTRUCTION,
      LLC 

     

    By:
      SELECTBUILD
      CONSTRUCTION, INC., its Sole Member 

     

    By:_____________________________________

    Name:

    Title:

     

    RJ
      NORCAL, LLC

     

    By:
      SELECTBUILD
      CONSTRUCTION, INC., its Sole Member 

     

    By:_____________________________________

    Name:

    Title:

     

    KBI
      NORCAL GENERAL
      PARTNERSHIP

     

    By:_____________________________________

    Name:

    Title:

     

    KBI
      NORCAL WINDOWS,
      INC. 

     

    By:_____________________________________

    Name:

    Title:

    
      
        
           

        

      

      
        
          Signature
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            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    KBI
      STUCCO,
      INC.

     

    By:_____________________________________

    Name:

    Title:

     

    TWF
      CONSTRUCTION,
      INC.

     

    By:_____________________________________

    Name:

    Title:

     

    KBI
      WINDOWS,
      INC.

     

    By:_____________________________________

    Name:

    Title:

     

    H.N.R.
      FRAMING
      SYSTEMS INC.

     

    By:_____________________________________

    Name:

    Title:

     

    FSC
      CONSTRUCTION,
      INC.

     

    By:_____________________________________

    Name:

    Title:

     

    BMC
      REALTY,
      INC.

     

    By:_____________________________________

    Name:

    Title:

    
      
        
           

        

      

      
        
          Signature
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    SELECTBUILD
      FLORIDA, LLC

     

    By:_____________________________________

    Name:

    Title:

     

    BBP
      CONCRETE
      CO.

     

    By:_____________________________________

    Name:

    Title:

     

    BBP
      CONSTRUCTION
      CO.

     

    By:_____________________________________

    Name:

    Title:

     

    BBP
      COMMERCIAL
      CO.

     

    By:_____________________________________

    Name:

    Title:

     

    TBA
      MATERIALS,
      LLC

     

    By:
      SELECTBUILD
      CONSTRUCTION, INC., its Sole Member

     

    By:_____________________________________

    Name:

    Title:

    
      
        
           

        

      

      
        
          Signature
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            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    SEVENTIETH
      AND
      NORTHERN AVENUE HOLDINGS, LLC

     

    By:
      SELECTBUILD
      CONSTRUCTION, INC., its Sole Member

     

    By:_____________________________________

    Name:

    Title:

     

    SELECTBUILD
      DISTRIBUTION, LLC

     

    By:
      SELECTBUILD
      CONSTRUCTION, INC., its Sole Member

     

    By:_____________________________________

    Name:

    Title:

     

    SELECTBUILD
      ARIZONA, LLC

     

    By:
      SELECTBUILD
      CONSTRUCTION, INC., its Sole Member

     

    By:_____________________________________

    Name:

    Title:

    
      
        
           

        

      

      
        
          Signature
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            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    WELLS
      FARGO BANK,
      NATIONAL ASSOCIATION,

     

    as
      Administrative Agent, Joint Lead Arranger,
Joint Book Runner, L/C Issuer,
      Swingline Lender,
Revolving Lender and Term B Lender

     

    By:_____________________________________

    Title:____________________________________

    
      
        
           

        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    JPMORGAN
      CHASE
      BANK, N.A.,

     

    as
      Documentation Agent, Revolving Lender and Term B Lender

     

    By:_____________________________________

    Title:____________________________________

    
      
        
           

        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    SUNTRUST
      BANK,

     

    as
      Joint Lead Arranger, Co-Syndication Agent,
Revolving Lender and Term B
      Lender

     

    By:_____________________________________

    Title:____________________________________

    
      
        
           

        

      

      
        
          Signature
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            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    BNP
      PARIBAS,

     

    as
      Joint Lead Arranger, Co-Syndication Agent,
Revolving
      Lender
      and Term B Lender

     

    By:_____________________________________

    Title:____________________________________

     

    By:_____________________________________

    Title:____________________________________

    
      
        
           

        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    THE
      LENDERS

     

    COMMERZBANK
      AG,
New
      York and Grand
      Cayman Branches

     

    By:_____________________________________

    Title:____________________________________

    
      
        
        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    LASALLE
      BANK,
      NATIONAL ASSOCIATION

     

    By:_____________________________________

    Title:____________________________________

    
      
        
           

        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    U.S.
      BANK NATIONAL
      ASSOCIATION

     

    By:_____________________________________

    Title:____________________________________

    
      
        
           

        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    COOPERATIVE
      CENTRALE
RAIFFEISEN-BOERENLEENBANK B.A.,
“RABOBANK INTERNATIONAL”, NEW
      YORK BRANCH

     

    By:_____________________________________

    Title:____________________________________

    
      
        
           

        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    UNION
      BANK OF
      CALIFORNIA, N.A.

     

    By:_____________________________________

    Title:____________________________________

    
      
        
           

        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    HSBC
      BANK USA,
      NATIONAL ASSOCIATION

     

    By:_____________________________________

    Title:____________________________________

    
      
        
           

        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    GUARANTY
      BANK

     

    By:_____________________________________

    Title:____________________________________

    
      
        
           

        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    RAYMOND
      JAMES BANK
      FSB

     

    By:_____________________________________

    Title:____________________________________

    
      
        
           

        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    PNC
      BANK

     

    By:_____________________________________

    Title:____________________________________

    
      
        
        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    WHITNEY
      NATIONAL
      BANK

     

    By:_____________________________________

    Title:____________________________________

    
      
        
        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    BANK
      LEUMI
      USA

     

    By:_____________________________________

    Title:____________________________________

    
      
        
        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    WEST
      COAST
      BANK

     

    By:_____________________________________

    Title:_____________________________________

    
      
        
           

        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    AMERICAN
      AGCREDIT,
      PCA

     

    By:_____________________________________

    Title:____________________________________

    
      
        
           

        

      

      
        
          Signature
            page to
            Second Amended and Restated Credit Agreement

        

        
          

        

      

      
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    SCHEDULE
      1.01

    

    EXISTING
      LETTERS OF CREDIT

    

    
      	
              LC
                #

            	
              Maturity
                Date

            	
              Face
                Amount

            
	
              410367

            	
              7/13/07

            	
              $3,200,000

            
	
              410365

            	
              6/30/07

            	
              $513,000

            
	
              417949

            	
              5/30/07

            	
              $3,935,000

            
	
              418264

            	
              8/18/07

            	
              $500,000

            
	
              463973

            	
              11/14/06

            	
              $300,000

            
	
              468963

            	
              1/3/07 

            	
              $1,424,000

            
	
              505461

            	
              12/11/06

            	
              $29,540,030

            
	
              551995

            	
              8/25/07

            	
              $3,049,519

            
	
              551996

            	
              8/25/07

            	
              $2,585,611

            
	
              559165

            	
              12/2/06

            	
              $25,500,000

            
	
              574042

            	
              6/19/07

            	
              $1,359,038

            
	 	
              TOTAL

            	
              $71,906,198

            

    

     

    
      
        
        

      

      
        
          Schedule
            1.01
1

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE 2.01(b)

     

    REVOLVING
      LOAN COMMITMENTS AND PROPORTIONATE SHARES

     

    
      	
              Banks

            	
              Revolving
                Commitment

            	
              Proportionate
                Share

              (Revolving
                Commitment)

            
	
              Wells
                Fargo
                Bank, National Association

            	
              $70,000,000

            	
              14.000000000%

            
	
              JPMorgan
                Chase Bank, N.A.

            	
              $60,000,000

            	
              12.000000000%

            
	
              SunTrust
                Bank

            	
              $60,000,000

            	
              12.000000000%

            
	
              BNP
                Paribas

            	
              $60,000,000

            	
              12.000000000%

            
	
              American
                AgCredit, PCA

            	
              $46,000,000

            	
              9.200000000%

            
	
              Rabobank
                International

            	
              $35,000,000

            	
              7.000000000%

            
	
              LaSalle
                Bank,
                National Association

            	
              $25,000,000

            	
              5.000000000%

            
	
              U.S.
                Bank
                National Association

            	
              $25,000,000

            	
              5.000000000%

            
	
              Union
                Bank of
                California, N.A.

            	
              $20,000,000

            	
              4.000000000%

            
	
              Whitney
                National Bank

            	
              $20,000,000

            	
              4.000000000%

            
	
              HSBC
                Bank
                USA, N.A.

            	
              $15,000,000

            	
              3.000000000%

            
	
              PNC
                Bank

            	
              $15,000.000

            	
              3.000000000%

            
	
              Commerzbank
                AG

            	
              $10,000,000

            	
              2.000000000%

            
	
              Guaranty
                Bank

            	
              $10,000,000

            	
              2.000000000%

            
	
              Raymond
                James
                Bank FSB

            	
              $10,000,000

            	
              2.000000000%

            
	
              West
                Coast
                Bank

            	
              $10,000,000

            	
              2.000000000%

            
	
              Bank
                Leumi
                USA

            	
              $9,000,000

            	
              1.800000000%

            
	
              TOTAL

            	
              $500,000,000

            	
              100.000000000%

            

    

     

    
      
        
        

      

      
        
          Schedule
            2.01(b) 
1

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE
      2.09(a)

     

    TERM
      B
      LOAN AMORTIZATION SCHEDULE

     

    
      	
              Date

            	
              %
                of
                Total Due

            	
              Payment
                Due Based

              on
                Aggregate
                Term B

              Commitment

              as
                of
                Effective Date

            
	 	 	 
	
              12/31/06

            	
              0.25%

            	
              $875,000

            
	
               

            	
               

            	
               

            
	
              3/31/07

            	
              0.25%

            	
              $875,000

            
	
              6/30/07

            	
              0.25%

            	
              $875,000

            
	
              9/30/07

            	
              0.25%

            	
              $875,000

            
	
              12/31/07

            	
              0.25%

            	
              $875,000

            
	
               

            	
               

            	
               

            
	
              3/31/08

            	
              0.25%

            	
              $875,000

            
	
              6/30/08

            	
              0.25%

            	
              $875,000

            
	
              9/30/08

            	
              0.25%

            	
              $875,000

            
	
              12/31/08

            	
              0.25%

            	
              $875,000

            
	
               

            	
               

            	
               

            
	
              3/31/09

            	
              0.25%

            	
              $875,000

            
	
              6/30/09

            	
              0.25%

            	
              $875,000

            
	
              9/30/09

            	
              0.25%

            	
              $875,000

            
	
              12/31/09

            	
              0.25%

            	
              $875,000

            
	
               

            	
               

            	
               

            
	
              3/31/10

            	
              0.25%

            	
              $875,000

            
	
              6/30/10

            	
              0.25%

            	
              $875,000

            
	
              9/30/10

            	
              0.25%

            	
              $875,000

            
	
              12/31/10

            	
              0.25%

            	
              $875,000

            
	
               

            	
               

            	
               

            
	
              3/31/11

            	
              0.25%

            	
              $875,000

            
	
              6/30/11

            	
              0.25%

            	
              $875,000

            
	
              9/30/11

            	
              0.25%

            	
              $875,000

            
	
              12/31/11

            	
              0.25%

            	
              $875,000

            
	
               

            	
               

            	
               

            
	
              3/31/12

            	
              0.25%

            	
              $875,000

            
	
              6/30/12

            	
              0.25%

            	
              $875,000

            
	
              9/30/12

            	
              0.25%

            	
              $875,000

            
	
              12/31/12

            	
              0.25%

            	
              $875,000

            
	
               

            	
               

            	
               

            
	
              3/31/13

            	
              0.25%

            	
              $875,000

            
	
              6/30/13

            	
              0.25%

            	
              $875,000

            
	
              9/30/13

            	
              0.25%

            	
              $875,000

            
	
              11/10/13

            	
              93%

            	
              $325,500,000

            
	
               

            	
              100.00%

            	
              $350,000,000

            

    

     

    
      
        
        

      

      
        
          Schedule
            2.09(a)
1

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE
      6.05

    

    LITIGATION

    

     

    None.

    
      
        
        

      

      
        
          Schedule
            6.05
1

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE
      6.07

    

    ERISA

     

    None.

    
      
        
        

      

      
        
          Schedule
            6.07
1

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE
      6.11

    

    PERMITTED
      LIABILITIES

    

    

    None.

    
      
        
        

      

      
        
          Schedule
            6.11
1

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE
      6.12

    

    ENVIRONMENTAL
      MATTERS

    

     

    None.

    
      
        
        

      

      
        
          Schedule
            6.12
1

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE
      6.15

    

    CONTRACTUAL
      OBLIGATIONS

    

    Holdings,
      through
      its subsidiary SelectBuild Construction, Inc., is a party to certain contractual
      arrangements to acquire the minority interest in the following: SelectBuild
      Mid-Atlantic, LLC, A-1 Building Components, LLC, KBI Mechanical, LLC,
      SelectBuild Illinois, LLC and Riggs Plumbing, LLC AND BBD Construction,
      LP.1 

    

    
      	 	
              1.

            	
              The
                Amended
                and Restated Limited Liability Company Operating Agreement of
                SelectBuild-Mid Atlantic, LLC, dated October 1,
                2003.

            

    

    
      	 	
              2.

            	
              The
                Amended
                and Restated Limited Liability Company Operating Agreement of A-1
                Building
                Components, LLC, dated September 1,
                2004.

            

    

    
      	 	
              3.

            	
              The
                Amended
                and Restated Limited Liability Company Operating Agreement of KBI
                Mechanical, LLC, dated October 5,
                2004.

            

    

    
      	 	
              4.

            	
              The
                Amended
                and Restated Limited Liability Company Operating Agreement of SelectBuild
                Illinois, LLC, dated January 1,
                2005.

            

    

    
      	 	
              5.

            	
              The
                Amended
                and Restated Limited Liability Company Operating Agreement of Riggs
                Plumbing, LLC, dated April 1, 2005.

            

    

    
      	 	
              6.

            	
              The
                Amended
                and Restated Limited Partnership Agreement of BBD Construction, LP,
                dated
                July 16, 2003.

            

    

     

    
      

    

    
      	1	
              This
                entity
                is inactive and is scheduled to be dissolved by the end of
                2005.

            

    

     

    
      
        
        

      

      
        
          Schedule
            6.15
1

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE
      6.17

    

    PART
      (A)

    SUBSIDIARIES
      AND MINORITY INTERESTS

     

    Wholly
      Owned
      Subsidiaries:

     

    BMC
      West
      Corporation (Delaware corporation)

    BMCW
      SouthCentral,
      L.P. (a Texas limited partnership)

    BMC
      West
      Corporation SouthCentral (Delaware corporation)

    BMCW,
      LLC (Delaware
      limited liability company)

    SelectBuild
      Construction, Inc. (Delaware corporation)

    SelectBuild,
      LP
      (California limited partnership)

    Vaughn
      Road, LLC
      (California limited liability company)

    KBI
      Norcal
      (California general partnership)

    KBI
      Construction,
      LLC (Delaware limited liability company)

    RJ
      Norcal, LLC (California limited liability company)

    KBI
      Stucco, Inc.
      (Delaware corporation)

    KBI
      Norcal Windows,
      Inc. (Delaware corporation)

    SelectBuild
      Florida, LLC (Delaware limited liability company) 

    FSC
      Construction,
      Inc. (Delaware corporation)

    C
      Construction, Inc. (Delaware corporation)

    TWF
      Construction,
      Inc. (Delaware corporation)

    H.N.R.
      Framing
      Systems, Inc. (California corporation)

    KBI
      Windows, Inc.
      (Delaware corporation)

    BMC
      Realty, Inc.
      (Delaware corporation)

    BBP
      Concrete Co.
      (Arizona corporation)

    BBP
      Construction
      Co. (Arizona corporation)

    BBP
      Commercial Co.
      (Arizona corporation)

    TBA
      Materials, LLC
      (Arizona limited liability company)

    Seventieth
      and
      Northern Avenues Holdings, LLC (Arizona limited liability company)

    SelectBuild
      Distribution, LLC (Delaware limited liability company)

    SelectBuild
      Arizona, LLC (Delaware limited liability company)

    
      
        
          
          

        

        
          
            Schedule
              6.17
1

          

          
            

          

        

        
          Table
            of Contents

        

      

    

     

    Non-Wholly
      Owned
      Subsidiaries:

     

    A-1
      Building
      Components, LLC (Delaware limited liability company)

    KBI
      Mechanical, LLC
      (Delaware limited liability company)

    SelectBuild
      Mid-Atlantic, LLC (Delaware limited liability company)

    SelectBuild
      Illinois, LLC (Delaware limited liability company)

    Riggs
      Plumbing, LLC
      (Arizona limited liability company)

    BBD
      Construction,
      L.P. (Texas limited partnership)2 

     

     

    PART
      (B)

    MINORITY
      EQUITY INTERESTS

    

    None.

    

     

    

    
      
        

      

    

    
      
        
          	2	
                  This
                    entity
                    is inactive and is scheduled to be dissolved by the end of
                    2005.

                

        

      

    

     

    
      
        
        

      

      
        
          Schedule
            6.17
2

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE
      6.18

    

    INSURANCE
      MATTERS

    

    

    N/A

    
      
        
        

      

      
        
          Schedule
            6.18
1

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE
      7.15(c)

     

    POST-CLOSING
      UNDERTAKINGS

     

    
      	
              Description
                of Undertaking

            	
              Completion
                Deadline

            
	
              Holdings
                shall, and shall cause each of the Guarantors to, deliver to the
                Administrative Agent such control agreements as the Administrative
                Agent
                may request for the perfection of the Administrative Agent’s Lien on the
                Primary Accounts (as defined in the Security Agreement) of Holdings
                and
                the Guarantors, executed by Holdings or such Guarantor, as applicable,
                and
                any applicable financial institutions.

            	
              Forty-five
                calendar days following the date hereof.

            
	
              Holdings
                shall, and shall cause each of the Guarantors to, deliver to the
                Administrative Agent such consents, estoppels, subordination agreements
                and other documents and instruments executed by landlords, tenants,
                bailees and other Persons party to material contracts relating to
                any
                Collateral as to which the Administrative Agent shall be granted
                a Lien
                for the benefit of the Lenders, as may be requested by the Administrative
                Agent.

            	
              Commercially
                reasonable efforts to obtain such agreements within forty-five calendar
                days following the date hereof.

            
	
              Holdings
                shall, and shall cause each of the Guarantors to, execute and deliver
                to
                the Administrative Agent such Intellectual Property Security Agreements
                as
                the Administrative Agent may reasonably request, and shall authorize
                the
                Administrative Agent to record such Intellectual Property Security
                Agreements with the U.S. Copyright Office or the U.S. Patent and
                Trademark
                Office, as applicable, and take such other action as may be necessary,
                or
                as the Administrative Agent or the Majority Lenders may reasonably
                request, to perfect the Administrative Agent’s security interest in such
                Intellectual Property Collateral. 

            	
              Forty-five
                calendar days following the date hereof.

            
	
              To
                the extent
                not previously delivered pursuant to the Existing Credit Agreement,
                Holdings shall, and shall cause each Guarantor to, deliver to the
                Administrative Agent all certificates and instruments representing
                the
                Pledged Collateral, together with stock transfer powers executed
                in
                blank.

            	
              Thirty
                calendar days following the date
                hereof.

            

    

     

    
      
        
        

      

      
        
          Schedule
            7.15(c)
1

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE
      8.01 

    

    PERMITTED
      LIENS

    

    In
      addition to Liens (including Capital Leases) described on Schedule 8.05, Liens
      set forth on Annex I attached hereto.

    
      
        
        

      

      
        
          Schedule
            8.01
1

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE
      8.05 

    

    PERMITTED
      INDEBTEDNESS

    

    

    BMCW
      SouthCentral,
      L.P. is a party to a note arising out of a 1999 acquisition, which has an
      outstanding balance of $2,697,193 as of September 30, 2006. 

    

    SelectBuild,
      Florida, LLC is a party to a certain note involving equipment, which has an
      outstanding balance of $29,778 as of September 30, 2006.

    

    A-1
      Building
      Components, LLC is a party to certain capital leases, which have an outstanding
      balance of $359,194 as of September 30, 2006. 

    

    A-1
      Building
      Components, LLC is a party to a certain notes involving equipment, which have
      an
      outstanding balance of $153,268 as of September 30, 2006. 

    

    A-1
      Building
      Components, LLC is a party to a certain bond involving equipment, which has
      an
      outstanding balance of $332,777 as of September 30, 2006. 

    

    SelectBuild
      Illinois, LLC is a party to certain notes involving equipment, which have an
      outstanding balance of $1,477 as of September 30, 2006. 

    

    BMC
      West
      Corporation is a party to certain capital leases, which have an outstanding
      balance of $181,649 as of September 30, 2006.

    

    BMC
      West
      Corporation is a party to certain notes, which have an outstanding balance
      of
      $149,922 as of September 30, 2006.

    

    BMC
      West
      Corporation is a party to certain notes involving land and buildings, which
      have
      an outstanding balance of $1,085,541 as of September 30, 2006.

     

    BBP
      is a party to
      certain notes involving equipment, which have an outstanding balance of
      $8,222,783 as of September 30, 2006.

     

    All
      indebtedness
      secured by Liens set forth in Schedule 8.01.

    
      
        
        

      

      
        
          Schedule
            8.05
1

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE
      8.08

    

    CONTINGENT
      OBLIGATIONS

    

    Under
      the Amended
      and Restated Partnership Agreement of SelectBuild Mid-Atlantic, LLC, Holdings,
      through its subsidiary SelectBuild Construction, Inc., has the option to
      purchase, directly or indirectly, the remaining 32.7% interest in WBC
      Mid-Atlantic from October 1, 2006 (immediately) through October 1, 2010. Under
      the Put Agreement, the principals of ANM Carpentry have the option to require
      Holdings to purchase the remaining 32.7% of WBC Mid-Atlantic from October 1,
      2008 through October 1, 2010. The purchase price for the remaining 32.7% will
      generally be based on a multiple of historical earnings. The option and the
      put
      may be exercised early under certain circumstances.

     

    Under
      the Amended
      and Restated Limited Partnership Agreement of A-1 Building Components, LLC,
      Holdings, through its subsidiary SelectBuild Construction, Inc., has the option
      to purchase, directly or indirectly, the remaining 49% interest in A-1 Building
      Components from September 1, 2009 (immediately) through September 1, 2014.
      Under
      the Put Agreement, the principals of A-1 Building Components, LLC, the
      principals of A-1 Building Components, and John Herring have the option to
      require Holdings to purchase the remaining 49% of A-1 Building Components from
      September 1, 2009 through September 1, 2014. The purchase price for the
      remaining 49% will generally be based on a multiple of historical earnings.
      The
      option and the put may be exercised early under certain
      circumstances.

     

    Under
      the Amended
      and Restated Limited Liability Company Operating Agreement of KBI Mechanical,
      LLC, Holdings, through its subsidiary SelectBuild Construction, Inc., has the
      option to purchase, directly or indirectly, the remaining 40% interest in KBI
      Mechanical from December 31, 2009 through December 31, 2014. Under the Put
      Agreement, the principals of KBI Mechanical have the option to require Holdings
      to purchase the remaining 40% of KBI Mechanical from December 31, 2009 through
      December 31, 2014. The purchase price for the remaining 40% will generally
      be
      based on a multiple of historical earnings. The option and the put may be
      exercised early under certain circumstances.

     

    Under
      the Amended
      and Restated Limited Liability Company Operating Agreement of SelectBuild
      Illinois, LLC, Holdings, through its subsidiary SelectBuild Construction, Inc.,
      has the option to purchase, directly or indirectly, the remaining 49% interest
      in RCI from January 25, 2008 through January 25, 2012. Under the Put Agreement,
      the principals of Residential Carpentry, Inc., Robert Blose, Keith Kotche,
      and
      Edward Levato have the option to require Holdings to purchase the remaining
      49%
      of RCI from January 25, 2008 through January 25, 2012. The purchase price for
      the remaining 49% will generally be based on a multiple of historical earnings.
      The option and the put may be exercised early under certain
      circumstances.

     

    Under
      the Amended
      and Restated Limited Partnership Agreement of Riggs Plumbing, LLC, Holdings,
      through its subsidiary SelectBuild Construction, Inc., has the option to
      purchase, directly or indirectly, the remaining 27% interest in Riggs Plumbing
      from April 1, 2008 through April 1, 2013. Under the Put Agreement, the
      principals of Riggs Plumbing, LLC and Riggs & Associates, LLC have the
      option to require Holdings to purchase the remaining 27% of Riggs Plumbing
      from
      April 1, 2010 through April 1, 2013. The purchase price for the remaining 27%
      will generally be based on a multiple of historical earnings. The option and
      the
      put may be exercised early under certain circumstances.

    
      
        
          
          

        

        
          
            Schedule
              8.08
1

          

          
            

          

        

        
          Table
            of Contents

        

      

    

     

    Under
      the Amended
      and Restated Limited Partnership Agreement of BBD Construction,
      L.P.,3 
      Holdings has the
      option to purchase, directly or indirectly, the remaining 49% interest in BBD
      Construction from July 1, 2005 through June 30, 2008. Under the Put Agreement,
      the principals of Better Builders-Dallas, Inc. have the option to require
      Holdings to purchase the remaining 49% of BBD Construction from July 1, 2008
      through June 30, 2010. The purchase price for the remaining 49% will generally
      be based on a multiple of historical earnings. The option and the put may be
      exercised early under certain circumstances.

    
      
        
        

      

      
        
          Schedule
            8.08
2

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE
      11.02

     

    PAYMENT
      OFFICES; ADDRESSES FOR NOTICES; LENDING OFFICES

     

    Addresses
      for
      Notices:

    

    If
      to Holdings:

    

    Building
      Materials
      Holding Corporation

    4
      Embarcadero Center, Suite 3200

    San
      Francisco, CA
      94105-1475

    

    

    [Lender
      Addresses
      for Notices to be Provided]

    
      
        
        

      

      
        
          Schedule
            11.02
1

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    SCHEDULE
      11.06

     

    PROCESSING
      AND RECORDATION FEES

     

    The
      Administrative
      Agent will charge a processing and recordation fee (an “Assignment
      Fee”)
      in the amount of
      $300.00 for each assignment effected more than 45 days following the Effective
      Date of the Credit Agreement; provided,
however,
      that in the event
      of two or more concurrent assignments to members of the same Assignee Group
      (which may be effected by a suballocation of an assigned amount among members
      of
      such Assignee Group) or two or more concurrent assignments by members of the
      same Assignee Group to a single Eligible Assignee (or to an Eligible Assignee
      and members of its Assignee Group), the Assignment Fee will be $300.00 plus
      the
      amount set forth below:

     

    
      	
              Transaction

            	 	
              Assignment
                Fee

            
	
              First
                four
                concurrent assignments or
suballocations to members of an
                Assignee
Group (or from members of an Assignee
Group, as
                applicable)

            	 	
              -0-

            
	
              Each
                additional concurrent assignment or
suballocation to a member of such
                Assignee
Group (or from a member of such Assignee
Group, as
                applicable)

            	 	
              $100

            

    

     

    
      
        
        

      

      
        
          Schedule
            11.06
1

        

        
          

        

      

      
        Table
          of Contents

      

    

     

    ANNEX
      I

     

    PRICING
      GRID

     

    The
      Applicable
      Margin for Revolving Loans and the Applicable Fee Amount for any day shall
      be
      the amount per annum set forth below based on the Total EBITDA Ratio set forth
      in the most recently delivered Compliance Certificate delivered by Holdings
      pursuant to Section 7.02(c)
      of the Credit
      Agreement. Changes in the Applicable Margin for Revolving Loans and the
      Applicable Fee Amount resulting from a change in the Total EBITDA Ratio shall
      become effective on the date of delivery by Holdings to the Administrative
      Agent
      of a new Compliance Certificate pursuant to Section 7.02(c).
      If Holdings shall
      fail to deliver a Compliance Certificate and accompanying financial statements
      within the number of days after the end of any fiscal quarter or fiscal year
      as
      required pursuant to Section 7.02(c),
      the parties agree
      that the Applicable Margin and the Applicable Fee Amount shall be fixed at
      Level
      5 until such time as Holdings delivers such new Compliance Certificate and
      accompanying financial statements pursuant to Section 7.02(c).
      Notwithstanding
      the foregoing, for the period from the Effective Date until the date of delivery
      by Holdings to the Administrative Agent of a new Compliance Certificate pursuant
      to Section 7.02(c)
      for the fiscal
      quarter ending March 31, 2007, the Applicable Margin for Revolving Loans and
      the
      Applicable Fee Amount shall be no lower than Level 2 (with Level 1 being the
      lowest and Level 5 being the highest). 

     

    
      	
              Level

            	
              Total
                EBITDA Ratio

            	
              Offshore
                Rate Spread

            	
              Base
                Rate

              Spread

            	
              Letter
                of

              Credit
                Fee

            	
              Commitment

              Fee

            
	
              Level
                5

            	
              greater
                than
                or equal to 4.00:1.00

            	
              2.000%

            	
              0.750%

               

            	
              2.000%

            	
              0.350%

            
	
              Level
                4

            	
              greater
                than
                or equal to 3.25:1.00 but less than 4.00:1.00

            	
              1.750%

            	
              0.500%

               

            	
              1.750%

            	
              0.300%

            
	
              Level
                3

            	
              greater
                than
                or equal to 2.50:1.00 but less than 3.25:1.00

            	
              1.500%

            	
              0.250%

               

            	
              1.500%

            	
              0.250%

            
	
              Level
                2

            	
              greater
                than
                or equal to 1.75:1.00 but less than 2.50:1.00

            	
              1.250%

            	
              0.000%

               

            	
              1.250%

            	
              0.225%

            
	
              Level
                1

            	
              less
                than
                1.75:1.00

            	
              1.000%

            	
              0.000%

            	
              1.000%

            	
              0.200%

            

    

     

    
      
        
        

      

      
        
          Annex
            I
1

        

        
          

        

      

      
        Table
          of Contents

      

      
         

        EXHIBIT
          A-1

         

        Date:
          ____________________

         

        FORM
          OF NOTICE
          OF REVOLVING BORROWING

         

        
          	
                  To:

                	
                  Wells
                    Fargo
                    Bank,

                

        

        National
          Association,

        as
          Administrative
          Agent

         

        Ladies
          and
          Gentlemen:

         

        The
          undersigned,
          Building Materials Holding Corporation (“Holdings”),
          refers to the
          Second Amended and Restated Credit Agreement, dated as of November __,
          2006 (as
          extended, renewed, amended or restated from time to time, the “Credit
          Agreement”),
          among Holdings,
          BMC West Corporation (the “Company”)
          and certain
          other affiliates of Holdings, as guarantors, JPMorgan Chase Bank, N.A.,
          as
          Documentation Agent, SunTrust Bank, as Joint Lead Arranger and Co-Syndication
          Agent, BNP Paribas, as Joint Lead Arranger and Co-Syndication Agent, the
          several
          financial institutions from time to time party thereto (the “Lenders”)
          and Wells Fargo
          Bank, National Association, as issuing bank of certain letters of credit
          (in
          such capacity, the “L/C
          Issuer”),
          as Swingline
          Lender, as administrative agent (in such capacity, the “Administrative
          Agent”),
          as Joint Lead
          Arranger and Joint Book Manager, the terms defined therein being used herein
          as
          therein defined, and hereby gives you notice irrevocably, pursuant to
Section
          2.03
          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 to
          be comprised of $ ______ of [Base Rate Loans][Offshore Rate Loans].

         

        4.    [The
          duration of
          the Interest Period for the Offshore Rate 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 Holdings contained in Article
          VI
          of the Credit Agreement are true and correct as though made on and as of
          such
          date, except to the extent such representations and warranties expressly
          refer
          to an earlier date, in which case they are true and correct as of such
          date, and
          except that this notice shall be deemed instead to refer to the last day
          of the
          most recent fiscal year and fiscal quarter for which financial statements
          have
          then been delivered in respect of the representation and warranty made
          in
Section
          6.11(a)
          of the Credit
          Agreement;

          
            
              
              

            

            
              Exhibit
                A-1
1

              
                

              

            

            
              Table
                of Contents

            

          

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

         

        (c)    there
          has occurred
          since December 31, 2005, no event or circumstance that has resulted or
          could
          reasonably be expected to result in a Material Adverse Effect; and

         

        (d)    after
          giving effect
          to the proposed Borrowing, the Effective Amount of all outstanding Revolving
          Loans plus
          the Effective
          Amount of all outstanding Swingline Loans plus
          the Effective
          Amount of all L/C Obligations shall not exceed the Aggregate Revolving
          Commitment.

         

        BUILDING
          MATERIALS
          HOLDING CORPORATION

         

        By:______________________________________

        Title:

        
          
            
            

          

          
            Exhibit
              A-1
2

            
              

            

          

          
            Table
              of Contents

          

        

         

        EXHIBIT
          A-2

         

        Date:
          ____________________

         

        FORM
          OF NOTICE
          OF TERM LOAN BORROWING

         

        
          	
                  To:

                	
                  Wells
                    Fargo
                    Bank,

                

        

        National
          Association,

        as
          Administrative
          Agent

         

        Ladies
          and
          Gentlemen:

         

        The
          undersigned,
          Building Materials Holding Corporation (“Holdings”),
          refers to the
          Second Amended and Restated Credit Agreement, dated as of November __,
          2006 (as
          extended, renewed, amended or restated from time to time, the “Credit
          Agreement”),
          among Holdings,
          BMC West Corporation (the “Company”)
          and certain
          other affiliates of Holdings, as guarantors, JPMorgan Chase Bank, N.A.,
          as
          Documentation Agent, SunTrust Bank, as Joint Lead Arranger and Co-Syndication
          Agent, BNP Paribas, as Joint Lead Arranger and Co-Syndication Agent, the
          several
          financial institutions from time to time party thereto (the “Lenders”)
          and Wells Fargo
          Bank, National Association, as issuing bank of certain letters of credit
          (in
          such capacity, the “L/C
          Issuer”),
          as Swingline
          Lender, as administrative agent (in such capacity, the “Administrative
          Agent”),
          as Joint Lead
          Arranger and Joint Book Manager, the terms defined therein being used herein
          as
          therein defined, and hereby gives you notice irrevocably, pursuant to
Section
          2.03
          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 $______ of Term B Loans.

         

        3.    The
          Borrowing is to
          be comprised of $______ of [Base Rate Loans][Offshore Rate Loans].

         

        4.    [The
          duration of
          the Interest Period for the Offshore Rate 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 Holdings contained in Article VI of the Credit Agreement
          are
          true and correct as though made on and as of such date, except to the extent
          such representations and warranties expressly refer to an earlier date,
          in which
          case they are true and correct as of such date, and except that this notice
          shall be deemed instead to refer to the last day of the most recent fiscal
          year
          and fiscal quarter for which financial statements have then been delivered
          in
          respect of the representation and warranty made in Section 6.11 of the
          Credit
          Agreement;

          
            
              
              

            

            
              Exhibit
                A-2
1

              
                

              

            

            
              Table
                of Contents

            

          

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

         

        (c)    there
          has occurred
          since December 31, 2005, no event or circumstance that has resulted or
          could
          reasonably be expected to result in a Material Adverse Effect.

         

        BUILDING
          MATERIALS
          HOLDING CORPORATION

         

        By:_______________________________________

        Title:

        
          
            
            

          

          
            Exhibit
              A-2
2

            
              

            

          

          
            Table
              of Contents

          

        

         

        EXHIBIT
          B-1

         

        FORM
          OF NOTICE
          OF REVOLVING LOAN CONVERSION/CONTINUATION

         

        Date:
          __________________

         

        
          	
                  To:

                	
                  Wells
                    Fargo
                    Bank, National Association,

                

        

        as
          Administrative
          Agent

         

        Ladies
          and
          Gentlemen:

         

        The
          undersigned,
          Building Materials Holding Corporation (“Holdings”),
          refers to the
          Second Amended and Restated Credit Agreement, dated as of November __,
          2006 (as
          extended, renewed, amended or restated from time to time, the “Credit
          Agreement”),
          among Holdings,
          BMC West Corporation (the “Company”)
          and certain
          other affiliates of Holdings, as guarantors, JPMorgan Chase Bank, N.A.,
          as
          Documentation Agent, SunTrust Bank, as Joint Lead Arranger and Co-Syndication
          Agent, BNP Paribas, as Joint Lead Arranger and Co-Syndication Agent, the
          several
          financial institutions from time to time party thereto (the “Lenders”)
          and Wells Fargo
          Bank, National Association, as issuing bank of certain letters of credit
          (in
          such capacity, the “L/C
          Issuer”),
          as Swingline
          Lender, as administrative agent (in such capacity, the “Administrative
          Agent”),
          as Joint Lead
          Arranger and Joint Book Manager, the terms defined therein being used herein
          as
          therein defined, and hereby gives you notice irrevocably, pursuant to
Section
          2.04
          of the Credit
          Agreement, of the [conversion] [continuation] of Loans specified
          below:

         

        1.    The
          Conversion/Continuation Date is __________________.

         

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

         

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

         

        4.    [The
          duration of
          the Interest Period for the Offshore Rate Loans included in the [conversion]
          [continuation] shall be        
months.]

         

        BUILDING
          MATERIALS
          HOLDING CORPORATION

         

        By:______________________________________

         

        Title:_____________________________________

        
          
            
            

          

          
            Exhibit
              B-1
1

            
              

            

          

          
            Table
              of Contents

          

        

         

        EXHIBIT
          B-2

         

        FORM
          OF NOTICE
          OF TERM B LOAN CONVERSION/CONTINUATION

         

        Date:
          _______________

         

        
          	
                  To:

                	
                  Wells
                    Fargo
                    Bank,

                

        

        National
          Association,

        as
          Administrative
          Agent

         

        Ladies
          and
          Gentlemen:

         

        The
          undersigned,
          Building Materials Holding Corporation (“Holdings”),
          refers to the
          Second Amended and Restated Credit Agreement, dated as of November __,
          2006 (as
          extended, renewed, amended or restated from time to time, the “Credit
          Agreement”),
          among Holdings,
          BMC West Corporation (the “Company”)
          and certain
          other affiliates of Holdings, as guarantors, JPMorgan Chase Bank, N.A., as
          Documentation Agent, SunTrust Bank, as Joint Lead Arranger and Co-Syndication
          Agent, BNP Paribas, as Joint Lead Arranger and Co-Syndication Agent, the
          several
          financial institutions from time to time party thereto (the “Lenders”)
          and Wells Fargo
          Bank, National Association, as issuing bank of certain letters of credit
          (in
          such capacity, the “L/C
          Issuer”),
          as Swingline
          Lender, as administrative agent (in such capacity, the “Administrative
          Agent”),
          as Joint Lead
          Arranger and Joint Book Manager, the terms defined therein being used herein
          as
          therein defined, and hereby gives you notice irrevocably, pursuant to
Section
          2.04
          of the Credit
          Agreement, of the [conversion] [continuation] of Loans specified
          below:

         

        1.    The
          Conversion/Continuation Date is _______________.

         

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

         

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

         

        4.    [The
          duration of
          the Interest Period for the Offshore Rate Loans included in the [conversion]
          [continuation] shall be _______ months.]

         

        BUILDING
          MATERIALS
          HOLDING CORPORATION

         

        By:_______________________________________

         

        Title:______________________________________

        
          
            
            

          

          
            Exhibit
              B-2
1

            
              

            

          

          
            Table
              of Contents

          

        

         

        EXHIBIT
          C

         

        FORM
          OF
          COMPLIANCE CERTIFICATE

         

        BUILDING
          MATERIALS HOLDING CORPORATION

         

        Financial
          Statements Date: _________________

         

        Reference
          is made
          to that certain Second Amended and Restated Credit Agreement, dated as
          of
          November __, 2006 (as extended, renewed, amended or restated from time
          to time,
          the “Credit
          Agreement”),
          among Building
          Materials Holding Corporation (“Holdings”),
          BMC West
          Corporation (the “Company”)
          and certain
          other affiliates of Holdings, as guarantors, JPMorgan Chase Bank, N.A.,
          as
          Documentation Agent, SunTrust Bank, as Joint Lead Arranger and Co-Syndication
          Agent, BNP Paribas, as Joint Lead Arranger and Co-Syndication Agent, the
          several
          financial institutions from time to time party thereto (the “Lenders”)
          and Wells Fargo
          Bank, National Association, as issuing bank of certain letters of credit
          (in
          such capacity, the “L/C
          Issuer”),
          as Swingline
          Lender, as administrative agent (in such capacity, the “Administrative
          Agent”),
          as Joint Lead
          Arranger and Joint Book Manager. Unless otherwise defined herein, capitalized
          terms used herein have the respective meanings assigned to them in the
          Credit
          Agreement.

         

        The
          undersigned
          Responsible Officer of Holdings hereby certifies as of the date hereof
          that
          he/she is the [___________] of Holdings, and that, as such, he/she is authorized
          to execute and deliver this Certificate to the Administrative Agent on
          the
          behalf of Holdings and its consolidated Subsidiaries, and that:

         

        [Use
          the following paragraph if this Certificate is delivered in connection
          with the
          annual financial statements required by Section 7.01(a) of the Credit
          Agreement.]

         

        (a)    Attached
          hereto are
          true and correct copies of the audited consolidated balance sheet of Holdings
          and its Subsidiaries as at the end of the fiscal year ended ___________
          and the
          related consolidated statements of income or operations, shareholders’ equity,
          retained earnings and cash flows for such year, setting forth in each case
          in
          comparative form the figures for the previous fiscal year, accompanied
          by (a)
          the report and opinion of the Independent Auditor, which report and opinion
          shall be prepared in accordance with generally accepted auditing standards
          and
          applicable Securities Laws and shall not be subject to any “going concern” or
          like qualification or exception or any qualification or exception as to
          the
          scope of such audit and which states that such consolidated financial
          statements present fairly the financial position and the results of operations
          and cash flows of Holdings and its Subsidiaries for the periods indicated
          in
          conformity with GAAP applied on a basis consistent with prior years and
          (b) an attestation report of such Independent Auditor as to Holdings’
internal controls pursuant to Section 404 of Sarbanes-Oxley.

         

        or

         

        [Use
          the following paragraph if this Certificate is delivered in connection
          with the
          quarterly financial statements required by Section 7.01(b) of the Credit
          Agreement.]

          
            
              
              

            

            
              Exhibit
                C
1

              
                

              

            

            
              Table
                of Contents

            

          

        (a)    Attached
          hereto are
          true and correct copies of the unaudited consolidated balance sheet of
          Holdings
          and its Subsidiaries as of the end of the fiscal quarter ended ________
          and the
          related consolidated statements of income, shareholders’ equity and cash flows
          for the period commencing on the first day and ending on the last day of
          such
          quarter, which are complete and accurate in all material respects and fairly
          present, in accordance with GAAP (subject to year-end audit adjustments
          and the
          absence of footnotes), the financial position, the results of operations
          and the
          cash flows of Holdings and the Subsidiaries.

         

        (b)    The
          undersigned has
          reviewed and is familiar with the terms of the Credit Agreement and has
          made, or
          has caused to be made under his/her supervision, a detailed review of the
          transactions and condition (financial or otherwise) of Holdings and its
          Subsidiaries during the accounting period covered by the attached financial
          statements.

         

        (c)    Holdings
          and its
          Subsidiaries, during such period, have observed, performed or satisfied
          all of
          the covenants and other agreements, and satisfied every condition in the
          Credit
          Agreement to be observed, performed or satisfied by Holdings and its
          Subsidiaries, and the undersigned has no knowledge of any Default or Event
          of
          Default.

         

        (d)    The
          representations
          and warranties of Holdings and the Company contained in Article VI
          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 shall be true and correct as of such date; and
          except
          that this notice shall be deemed instead to refer to the last day of the
          most
          recent year and fiscal quarter for which financial statements have then
          been
          delivered in respect of the representation and warranty made in Section 6.11(a)
          of the Credit
          Agreement).

         

        (e)    The
          financial
          covenant analyses and information set forth on Schedule
          1
          attached hereto are true and accurate on and as of the date of this
          Certificate.

         

        IN
          WITNESS WHEREOF, the undersigned has executed this Certificate as the __________
          of Holdings as of __________.

         

        BUILDING
          MATERIALS
          HOLDING CORPORATION

         

        By:______________________________________

        Title:

        
          
            
            

          

          
            Exhibit
              C
2

            
              

            

          

          
            Table
              of Contents

          

        

         

        Schedule
          I

         

        to
          Compliance
          Certificate

         

        [to
          be
          provided]

         

        
          
            
            

          

          
            Exhibit
              C
3

            
              

            

          

          
            Table
              of Contents

          

        

         

        EXHIBIT
          D

         

        [to
          be
          provided]

        
          
            
            

          

          
            Exhibit
              D
1

            
              

            

          

          
            Table
              of Contents

          

        

         

        EXHIBIT
          E

         

        FORM
          OF
          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 the
          each
          Assignor identified in item 1 below (the “Assignor”)
          and the Assignee
          identified in item 2 below (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 without limitation 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 by the Assignor
          to the Assignee pursuant to clauses (i) and (ii) above being referred to
          herein
          collectively as the “Assigned
          Interest”).
          Each 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:	___________________________
	 	 	 
	 	 	___________________________
	 	 	 
	 	
                  [for
                    Assignee, indicate [Affiliate][Approved Fund] of [identify
                    Lender]

                
	 	 	 
	3.	Borrower(s): 	Building
                  Materials Holding Corporation

        

         

        
          
            
            

          

          
            Exhibit
              E
1

            
              

            

          

          
            Table
              of Contents

          

        

        
           

          
            	4.	Administrative
                    Agent:	Wells
                    Fargo
                    Bank, National Association, as the administrative agent under
                    the Credit
                    Agreement
	 	 	 
	5.	Credit
                    Agreement:	The Second Amended
                    and
                    Restated Credit Agreement dated as of November __, 2006 among
                    Borrower,
                    BMC West Corporation and certain other affiliates of Borrower,
                    as
                    guarantors, JPMorgan Chase Bank, N.A., as Documentation Agent,
                    SunTrust
                    Bank, as Joint Lead Arranger and Co-Syndication Agent, BNP Paribas,
                    as
                    Joint Lead Arranger and Co-Syndication Agent, the several financial
                    institutions from time to time party thereto and Wells Fargo
                    Bank,
                    National Association, as issuing bank of certain letters of credit,
                    as
                    Swingline Lender, as Administrative Agent, as Joint Lead Arranger
                    and
                    Joint Book Manager.
	 	 	 
	6.	Assigned
                    Interest:	 

          

           

        

        
          	
                  Facility
                    Assigned1

                	
                  Aggregate
                    Amount of Commitment/ Loans for all Lenders2

                	
                  Amount
                    of Commitment/ Loans Assigned8

                	
                  Percentage
                    Assigned of Commitment/ Loans3

                	
                  CUSIP
                    Number

                
	 	
                  $
                    

                	
                  $
                    

                	
                  %

                	 
	 	
                  $
                    

                	
                  $
                    

                	
                  %

                	 
	 	
                  $
                    

                	
                  $
                    

                	
                  %

                	 

        

        

        
          
            	[7. 	Trade
                    Date:	______________________________]4

          

           

           

           

          
            
              

            

          

          
            	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
                      Commitment,” “Term 

                  

          

          
            	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.

                  

          

          
            	4	
                    To
                      be
                      completed if the Assignor and the Assignee intend that the
                      minimum
                      assignment amount is to be determined as of the Trade
                      Date.

                  

          

           

        

        

        [Page
          break]

        
          
            
            

          

          
            Exhibit
              E
2

            
              

            

          

          
            Table
              of Contents

          

        

        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]5 
                    Accepted:

                	 
	
                   

                  WELLS
                    FARGO
                    BANK, NATIONAL ASSOCIATION, as Administrative Agent

                	 
	 	 
	
                  By:______________________________

                  Title:

                	 
	
                   

                  [Consented
                    to:]6

                	 
	 	 
	
                  WELLS
                    FARGO
                    BANK, NATIONAL ASSOCIATION, as Administrative Agent

                	 
	
                   

                  By:______________________________

                  Title:

                	 

        

         

        
          
            

          

          
            	5	
                    To
                      be added
                      only if the consent of the Administrative Agent is required
                      by the terms
                      of the Credit Agreement.

                  

          

          
            	6	
                    To
                      be added
                      only if the consent of the Borrower and/or other parties (e.g.
                      Swingline
                      Lender, Issuing Bank) is required by the terms of the Credit
                      Agreement. 

                  

          

           

        

        
          
            
            

          

          
            Exhibit
              E
3

            
              

            

          

          
            Table
              of Contents

          

        

         

        ANNEX
          1

         

        STANDARD
          TERMS AND
          CONDITIONS FOR

         

        ASSIGNMENT
          AND
          ASSUMPTION

         

        1.    Representations
          and Warranties.

         

        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.

         

        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 11.06(b) of the Credit Agreement (subject to such consents, if
          any, as
          may be required under Section 11.06(b) 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 7.01 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 a Foreign Lender, 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

          
            
              
              

            

            
              Exhibit
                E
4

              
                

              

            

            
              Table
                of Contents

            

          

        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.

         

        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.

         

        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 California.

        
          
            
              
              

            

            
              Exhibit
                E
5

              
                

              

            

            
              Table
                of Contents

            

          

        

         

        EXHIBIT
          F-1

         

        FORM
          OF
          REVOLVING NOTE

         

        U.S.
          $______________________________________________________

         

        FOR
          VALUE RECEIVED,
          the undersigned, BUILDING MATERIALS HOLDING CORPORATION, a Delaware corporation
          (“Holdings”),
          hereby promises
          to pay to the order of _____________ (the “Lender”)
          the principal
          sum of _______________________ Dollars
          ($_____________) or, if less, the aggregate unpaid principal amount of
          all
          Revolving Loans made by the Lender to Holdings pursuant to the Second
          Amended and
          Restated Credit Agreement, dated as of November __, 2006 (as extended,
          renewed,
          amended or restated from time to time, the “Credit
          Agreement”),
          among Holdings,
          BMC West Corporation (the “Company”)
          and certain
          other affiliates of Holdings, as guarantors, JPMorgan Chase Bank, N.A.,
          as
          Documentation Agent, SunTrust Bank, as Joint Lead Arranger and Co-Syndication
          Agent, BNP Paribas, as Joint Lead Arranger and Co-Syndication Agent, the
          several
          financial institutions from time to time party thereto (the “Lenders”)
          and Wells Fargo
          Bank, National Association, as issuing bank of certain letters of credit
          (in
          such capacity, the “L/C
          Issuer”),
          as Swingline
          Lender, as administrative agent (in such capacity, the “Administrative
          Agent”),
          as Joint Lead
          Arranger and Joint Book Manager,
          on the dates and
          in the amounts provided in the Credit Agreement. Holdings further promises
          to
          pay interest on the unpaid principal amount of the Revolving Loans evidenced
          hereby from time to time at the rates, on the dates, and otherwise as provided
          in the Credit Agreement.

         

        The
          Lender is
          authorized to endorse the amount of each Revolving Loan, the date on which
          each
          Revolving Loan is made, and each payment of principal with respect thereto
          on
          the schedule annexed hereto and made a part hereof, or on continuations
          thereof
          which shall be attached hereto and made a part hereof; provided
          that any failure
          to endorse such information on such schedule or continuation thereof shall
          not
          in any manner affect any obligation of Holdings under the Credit Agreement
          and
          this promissory note (this “Note”).

         

        This
          Note is one of
          the Notes referred to in, and is entitled to the benefits of, the Credit
          Agreement, which Credit Agreement, among other things, contains provisions
          for
          acceleration of the maturity hereof upon the happening of certain stated
          events
          and also for prepayments on account of principal hereof prior to the maturity
          hereof upon the terms and conditions therein specified.

         

        This
          Note is
          secured by certain Collateral more specifically described in the Credit
          Agreement and the Collateral Documents.

         

        Terms
          defined in
          the Credit Agreement are used herein with their defined meanings therein
          unless
          otherwise defined herein.

          
            
              
              

            

            
              Exhibit
                F-1
1

              
                

              

            

            
              Table
                of Contents

            

          

        This
          Note shall be
          governed by, and construed and interpreted in accordance with, the laws
          of the
          State of California.

         

        BUILDING
          MATERIALS
          HOLDING CORPORATION

         

         

        By:_______________________________________

        Title:

        
          
            
            

          

          
            Exhibit
              F-1
2

            
              

            

          

          
            Table
              of Contents

          

        

         

        SCHEDULE

         

        to
          Revolving
          Note

         

        
          	
                  Date
                    Loan Disbursed

                	
                  Amount
                    of Loan

                	
                  Principal
                    Payment

                	
                  Date
                    Principal Paid

                
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

        

         

        
          
            
            

          

          
            Exhibit
              F-1
3

            
              

            

          

          
            Table
              of Contents

          

        

         

        EXHIBIT
          F-2

         

        FORM
          OF TERM B
          NOTE

         

        U.S.
          $______________________________________________________

         

        FOR
          VALUE RECEIVED,
          the undersigned, BUILDING MATERIALS HOLDING CORPORATION, a Delaware
          corporation (“Holdings”),
          hereby promises
          to pay to
          the order
          of_________________________ (the “Lender”)
          the principal
          sum of _______________________ Dollars ($__________________) or, if less,
          the
          aggregate unpaid principal amount of the Term B Loan made by the Lender
          to
          Holdings pursuant to the Credit Agreement referred to below and outstanding
          on
          the Term B Loan Maturity Date. Holdings further promises to pay interest
          on the
          unpaid principal amount of the Term B Loan evidenced hereby from
          time to time
          at the rates, on the dates, and otherwise as provided in the Credit
          Agreement.

         

        The
          Lender is
          authorized to endorse the amount of and the date on which the Term B Loan
          is
          made and each payment of principal with respect thereto on the schedule
          annexed
          hereto and made a part hereof, or on continuations thereof which shall
          be
          attached hereto and made a part hereof; provided
          that any failure
          to endorse such information on such schedule or continuation thereof shall
          not
          in any manner affect any obligation of Holdings under the Credit Agreement
          and
          this Promissory Note (this “Note”).

         

        This
          Note is one of
          the Notes referred to in, and is entitled to the benefits of, the Second
          Amended and
          Restated Credit Agreement, dated as of November __, 2006 (as extended,
          renewed,
          amended or restated from time to time, the “Credit
          Agreement”),
          among Holdings,
          BMC West Corporation (the “Company”)
          and certain
          other affiliates of Holdings, as guarantors, JPMorgan Chase Bank, N.A.,
          as
          Documentation Agent, SunTrust Bank, as Joint Lead Arranger and Co-Syndication
          Agent, BNP Paribas, as Joint Lead Arranger and Co-Syndication Agent, the
          several
          financial institutions from time to time party thereto (the “Lenders”)
          and Wells Fargo
          Bank, National Association, as issuing bank of certain letters of credit
          (in
          such capacity, the “L/C
          Issuer”),
          as Swingline
          Lender, as administrative agent (in such capacity, the “Administrative
          Agent”),
          as Joint Lead
          Arranger and Joint Book Manager,
          which Credit
          Agreement, among other things, contains provisions for acceleration of
          the
          maturity hereof upon the happening of certain stated events and also for
          payments and prepayments on account of principal hereof prior to the maturity
          hereof upon the terms and conditions therein specified.

         

        This
          Note is
          secured by certain Collateral more specifically described in the Credit
          Agreement and the Collateral Documents.

         

        Terms
          defined in
          the Credit Agreement are used herein with their defined
          meanings therein
          unless otherwise defined herein.

          
            
              
              

            

            
              Exhibit
                F-2
1

              
                

              

            

            
              Table
                of Contents

            

          

        This
          Note shall be
          governed by, and construed and interpreted in accordance with,
          the laws of the
          State of California.

         

        BUILDING
          MATERIALS
          HOLDING CORPORATION

         

        By:______________________________________

        Title:

        
          
            
            

          

          
            Exhibit
              F-2
2

            
              

            

          

          
            Table
              of Contents

          

        

         

        SCHEDULE 

         

        to
          Term B
          Note

         

        
          	
                  Date
                    Loan
                    Disbursed

                	
                  Amount
                    of
                    Loan

                	
                  Principal
                    Payment

                	
                  Date
                    Principal Paid

                
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

        

         

        
          
            
            

          

          
            Exhibit
              F-2
3

            
              

            

          

          
            Table
              of Contents

          

        

         

        EXHIBIT
          G

         

        FORM
          OF
          ADDITIONAL GUARANTOR ASSUMPTION AGREEMENT

         

        Date:
          _________________

         

        To
          each of the Lenders party to the Credit Agreement

        referred
          to below,
          and to Wells Fargo Bank, National 

        Association,
          as
          Administrative Agent

         

        Ladies
          and
          Gentlemen:

         

        This
          Additional
          Guarantor Assumption Agreement, dated as of __________, is made and delivered
          pursuant to Section
          7.13
          of that certain
          Second Amended and Restated Credit Agreement, dated as of November __,
          2006 (as
          extended, renewed, amended or restated from time to time, the “Credit
          Agreement”),
          among Building
          Materials Holding Corporation (“Holdings”),
          BMC West
          Corporation (the “Company”)
          and certain
          other affiliates of Holdings, as guarantors, JPMorgan Chase Bank, N.A.,
          as
          Documentation Agent, SunTrust Bank, as Joint Lead Arranger and Co-Syndication
          Agent, BNP Paribas, as Joint Lead Arranger and Co-Syndication Agent, the
          several
          financial institutions from time to time party thereto and Wells Fargo
          Bank,
          National Association, as issuing bank of certain letters of credit (in
          such
          capacity, the “L/C
          Issuer”),
          as Swingline
          Lender, as administrative agent (in such capacity, the “Administrative
          Agent”),
          as Joint Lead
          Arranger and Joint Book Manager. All capitalized terms used in this Additional
          Guarantor Assumption Agreement and not otherwise defined herein shall have
          the
          meanings assigned to them in the Credit Agreement. 

         

        __________________________
          (the “Subsidiary”)
          hereby confirms,
          represents and warrants to the Administrative Agent and the Lenders that
          the
          Subsidiary is a U.S. Subsidiary effective as of _________________. 

         

        The
          documents
          required to be delivered to the Administrative Agent under clauses (ii) and
          (iii) of Section 7.13(a)
          of the Credit
          Agreement will be furnished to the Administrative Agent in accordance with
          the
          requirements of the Credit Agreement. 

         

        The
          parties hereto
          hereby confirm that with effect from the date hereof, the Subsidiary shall
          be a
          party to the Credit Agreement and a party to the Security Agreement (as
          amended), and shall have the obligations which the Subsidiary would have
          had if
          the Subsidiary had been an original party to the Credit Agreement as a
          Guarantor
          and the Security Agreement as a Grantor (and pursuant to Section 2(a) of
          the
          Security Agreement (and subject to Section 3(h) of the Security Agreement),
          the
          Subsidiary hereby grants to the Administrative Agent a security interest
          in all
          Collateral (as defined in the Security Agreement) in which Subsidiary has
          an
          interest to secure the Secured Obligations (as defined in the Security
          Agreement)). The Subsidiary confirms its acceptance of, and consents to,
          all
          terms and provisions of the Credit Agreement (including, without limitation,
          Section 11.10 thereof), and the Security Agreement applicable to the Guarantors
          or the Grantors, as the case may be, and to any other Loan Documents to
          which
          the Guarantors or Grantors are parties.

          
            
              
              

            

            
              Exhibit
                G
1

              
                

              

            

            
              Table
                of Contents

            

          

        Without
          limiting
          the generality of the foregoing, the Subsidiary hereby (a) unconditionally
          and
          irrevocably guarantees to the Guaranteed Persons (as defined in Section
          11.10 of
          the Credit Agreement), jointly and severally with each other Guarantor,
          the full
          and prompt payment when due (whether at stated maturity, by required prepayment,
          declaration, acceleration, demand or otherwise) and performance of all
          Guaranteed Obligations (as defined in Section 11.10 of the Credit Agreement)
          of
          Holdings to any such Guaranteed Person, whether arising out of or in connection
          with the Credit Agreement, any other Loan Document or otherwise, including
          all
          unpaid principal of the Loans, all L/C Obligations, all interest accrued
          thereon, all fees due under the Credit Agreement and all other amounts
          payable
          by Holdings to any such Guaranteed Person thereunder or in connection therewith;
          and (b) subject to Section 3(h) of the Security Agreement, pledges, assigns,
          transfers, hypothecates, sets over and grants to the Administrative Agent,
          for
          the benefit of itself and on behalf of and for the ratable benefit of the
          Joint
          Lead Arrangers, the L/C Issuer and the Lenders, and their respective successors,
          endorsers, transferees and assigns, a security interest in all of its right,
          title and interest in, to and under any Collateral (as defined in the Security
          Agreement) to secure the payment and performance of the Secured Obligations
          (as
          defined in the Security Agreement).

         

        This
          Additional
          Guarantor Assumption Agreement shall constitute a Loan Document under the
          Credit
          Agreement.

         

        THIS
          ADDITIONAL
          GUARANTOR ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
          WITH, THE LAW OF THE STATE OF CALIFORNIA.

         

        IN
          WITNESS WHEREOF, the Subsidiary has caused this Additional Guarantor Assumption
          Agreement to be duly executed and delivered in ____________ by its proper
          and
          duly authorized officer as of the day and year first above written.

         

         

        [SUBSIDIARY]

         

         

        By:____________________________

        Title:

        
          
            
            

          

          
            Exhibit
              G
2

            
              

            

          

          
            Table
              of Contents

          

        

         

        EXHIBIT
          H

         

        FORM
          OF LEGAL
          OPINION OF ADDITIONAL GUARANTOR’S COUNSEL

         

        [to
          be
          provided]

         

        
          
            
            

          

          
            Exhibit
              H
1

            
              

            

          

          
            Table
              of Contents

          

        

         

        EXHIBIT
          I

         

        THIRD
          AMENDED
          AND RESTATED SECURITY AGREEMENT

         

        THIS
          THIRD AMENDED
          AND RESTATED SECURITY AGREEMENT (this “Agreement”),
          dated as of
          November 10, 2006, is made by and among Building Materials Holding Corporation,
          a Delaware corporation (“Holdings”),
          BMC West
          Corporation, a Delaware corporation (the “Company”),
          certain other
          affiliates of Holdings signatories hereto or acceding hereto as provided
          in
          Section 25 hereof, and Wells Fargo Bank, National Association
          (“Wells
          Fargo”),
          as
          administrative agent for itself and the other Secured Parties (in such
          capacity,
          the “Administrative
          Agent”).

         

        RECITALS

         

        WHEREAS,
          the
          parties hereto previously entered into that certain Second Amended and
          Restated
          Security Agreement, dated as of June 30, 2005 (as amended through the date
          hereof, the “Existing
          Security Agreement”)
          pursuant to
          which, to secure the Secured Obligations, the Grantors (as defined herein)
          pledged to, and granted a security interest in, all Collateral described
          herein
          in favor of the Secured Parties (as defined herein).

         

        WHEREAS,
          Holdings,
          the Company, the other Loan Parties named therein, certain lending institutions
          as lenders, the L/C Issuer and the Administrative Agent are parties to
          that
          certain Second Amended and Restated Credit Agreement dated as of November
          10,
          2006, (as amended, restated, modified, renewed or extended from time to
          time,
          the “Credit Agreement”); and

         

        WHEREAS,
          it is a
          condition precedent to the borrowings under the Credit Agreement that the
          Grantors enter into this Agreement amending and restating the Existing
          Security
          Agreement and grant to the Administrative Agent, for itself and for the
          ratable
          benefit of the other Secured Parties, the security interests hereinafter
          provided to secure the Secured Obligations described below.

         

        NOW,
          THEREFORE, the
          parties hereto agree as follows:

         

        SECTION
          1
 Definitions;
          Interpretation.

         

        (a)    Terms
          Defined in
          Credit Agreement. All capitalized terms used in this Agreement (including
          in the
          recitals hereof) and not otherwise defined herein shall have the meanings
          assigned to them in the Credit Agreement.

         

        (b)    Certain
          Defined
          Terms. As used in this Agreement, the following terms shall have the following
          meanings:

         

        “Accounts”
means
          any and all
          of any Grantor’s accounts, as such term is defined in Article 9 of the
          UCC.

          
            
              
              

            

            
              Exhibit
                I
1

              
                

              

            

            
              Table
                of Contents

            

          

        “Books”
means
          all books,
          records and other written, electronic or other documentation in whatever
          form
          maintained now or hereafter by or for any Grantor in connection with the
          ownership of its assets or the conduct of its business or evidencing or
          containing information relating to the Collateral, including: (i) ledgers;
          (ii) records indicating, summarizing, or evidencing any Grantor’s assets
          (including Inventory and Rights to Payment), business operations or financial
          condition; (iii) computer programs and software; (iv) computer discs,
          tapes, files, manuals, spreadsheets; (v) computer printouts and output of
          whatever kind; (vi) any other computer prepared or electronically stored,
          collected or reported information and equipment of any kind; and (vii) any
          and all other rights now or hereafter arising out of any contract or agreement
          between any Grantor and any service bureau, computer or data processing
          company
          or other Person charged with preparing or maintaining any of any Grantor’s books
          or records or with credit reporting, including with regard to any Grantor’s
          Accounts.

         

        “Chattel
          Paper”
means
          any and all
          of any Grantor’s chattel paper, as such term is defined in Article 9 of the
          UCC, including all Electronic Chattel Paper.

         

        “Collateral”
has
          the meaning
          set forth in Section 2.

         

        “Commercial
          Tort
          Claims”
means
          any and all
          of any Grantor’s commercial tort claims, as such term is defined in
          Article 9 of the UCC, including any described in
          Schedule 1.

         

        “Control
          Agreement”
means
          any control
          agreement or other agreement with any securities intermediary, bank or
          other
          Person establishing the Administrative Agent’s control with respect to any
          Deposit Accounts, Letter-of-Credit Rights or Investment Property, for purposes
          of Article 9 of the UCC.

         

        “Deposit
          Account”
means
          any deposit
          account, as such term is defined in Article 9 of the UCC, maintained by or
          for the benefit of the Grantors, whether or not restricted or designated
          for a
          particular purpose.

         

        “Documents”
means
          any of the Grantors’ documents, as such term is defined in Article 9 of the
          UCC.

         

        “Electronic
          Chattel Paper”
means
          any and all
          of any Grantor’s electronic chattel paper, as such term is defined in
          Article 9 of the UCC.

         

        “Equipment”
means
          any and all
          of any Grantors’ equipment, including any and all fixtures, as such terms are
          defined in Article 9 of the UCC.

         

        “Filing
          Offices”
has
          the meaning
          set forth in Section 3(a).

         

        “General
          Intangibles”
means
          any and all
          of any Grantor’s general intangibles, as such term is defined in Article 9
          of the UCC.

         

        “Grantors”
means
          Holdings,
          the Company and the other Loan Parties.

          
            
              
              

            

            
              Exhibit
                I
2

              
                

              

            

            
              Table
                of Contents

            

          

        “Instruments”
means
          any and all
          of any Grantor’s instruments, as such term is defined in Article 9 of the
          UCC.

         

        “Intellectual
          Property Collateral”
means
          the
          following properties and assets owned or held by any Grantor or in which
          any
          Grantor otherwise has any interest, now existing or hereafter acquired
          or
          arising:

         

        (i) all
          patents and patent applications, domestic or foreign, all licenses relating
          to
          any of the foregoing and all income and royalties with respect to any licenses
          (including such patents, patent applications and patent licenses as described
          in
          Schedule 2), all rights to sue for past, present or future infringement
          thereof, all rights arising therefrom and pertaining thereto and all reissues,
          divisions, continuations, renewals, extensions and continuations-in-part
          thereof;

         

        (ii)
          all copyrights
          and applications for copyright, domestic or foreign, together with the
          underlying works of authorship (including titles), whether or not the underlying
          works of authorship have been published and whether said copyrights are
          statutory or arise under the common law, and all other rights and works
          of
          authorship (including the copyrights and copyright applications described
          in
          Schedule 2), all computer programs, computer databases, computer program
          flow diagrams, source codes, object codes and all tangible property embodying
          or
          incorporating any copyrights, all licenses relating to any of the foregoing
          and
          all income and royalties with respect to any licenses, and all other rights,
          claims and demands in any way relating to any such copyrights or works,
          including royalties and rights to sue for past, present or future infringement,
          and all rights of renewal and extension of copyright;

         

        (iii) all
          state (including common law), federal and foreign trademarks, service marks
          and
          trade names, and applications for registration of such trademarks, service
          marks
          and trade names, all licenses relating to any of the foregoing and all
          income
          and royalties with respect to any licenses (including such marks, names,
          applications and licenses as described in Schedule 2), whether registered
          or unregistered and wherever registered, all rights to sue for past, present
          or
          future infringement or unconsented use thereof, all rights arising therefrom
          and
          pertaining thereto and all reissues, extensions and renewals
          thereof;

         

        (iv) all
          trade
          secrets, trade dress, trade styles, logos, other source of business identifiers,
          mask-works, mask-work registrations, mask-work applications, software,
          confidential information, customer lists, license rights, advertising materials,
          operating manuals, methods, processes, know-how, algorithms, formulae,
          databases, quality control procedures, product, service and technical
          specifications, operating, production and quality control manuals, sales
          literature, drawings, specifications, blue prints, descriptions, inventions,
          name plates and catalogs;

         

        (v) the
          entire
          goodwill of or associated with the businesses now or hereafter conducted
          by such
          Grantor connected with and symbolized by any of the aforementioned properties
          and assets; and

          
            
              
              

            

            
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                I
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        (vi)
          all accounts,
          all intangible intellectual or other similar property and other general
          intangibles associated with or arising out of any of the aforementioned
          properties and assets and not otherwise described above.

         

        “Intellectual
          Property Security Agreement”
means
          each Patent
          and Trademark Security Agreement, each Copyright Security Agreement or
          any
          amendment thereto, in form and substance satisfactory to the Administrative
          Agent, supplementary to this Agreement and prepared for purposes of recordation
          with the U.S. Copyright Office or the U.S. Patent and Trademark Office,
          as
          applicable.

         

        “Inventory”
means
          any of any
          Grantor’s inventory, as such term is defined in Article 9 of the
          UCC.

         

        “Investment
          Property”
means
          any of any
          Grantor’s investment property, as such term is defined in Article 9 of the
          UCC.

         

        “Lenders”
has
          the meaning
          specified in the Credit Agreement, and includes the Revolving Lenders,
          the Term
          B Lenders, and Additional Lenders, the L/C Issuer, the Swingline Lender
          and any
          Swap Providers.

         

        “Letter-of-Credit
          Rights”
means
          any and all
          of any Grantor’s letter-of-credit rights, as such term is defined in
          Article 9 of the UCC.

         

        “Partnership
          and
          LLC Collateral”
means
          any and all
          limited, limited liability and general partnership interests and limited
          liability company interests of any type or nature, whether now existing
          or
          hereafter acquired or arising, including any more specifically described
          in
          Schedule 3.

         

        “Pledged
          Collateral”
means
          any and all
          (i) Pledged Shares; (ii) additional capital stock or other equity
          securities of the direct or indirect Subsidiaries of Holdings (other than
          Subsidiaries which are owned by Non-Wholly-Owned Subsidiaries), whether
          certificated or uncertificated; (iii) other Investment Property of any
          Grantor; (iv) warrants, options or other rights entitling any Grantor
          to acquire any interest in capital stock or other securities of such
          Subsidiaries or any other Person; (v) Partnership and LLC Collateral;
          (vi) Instruments; (vii) Pledged Debt; (viii) securities,
          property, interest, dividends and other payments and distributions issued
          as an
          addition to, in redemp-tion of, in renewal or exchange for, in substitution
          or
          upon conversion of, or otherwise on account of, any of the foregoing;
          (ix) certificates and instruments now or hereafter representing or
          evidencing any of the foregoing; (x) rights, interests and claims with
          respect to the foregoing, including under any and all related agreements,
          instruments and other documents, and (xi) cash and non-cash proceeds of any
          of the foregoing, in each case whether presently existing or owned or hereafter
          arising or acquired and wherever located, and as from time to time received
          or
          receivable by, or otherwise paid or distributed to or acquired by, any
          Grantor.

         

        “Pledged
          Debt”
means
          the
          indebtedness in described in Schedule 3.

          
            
              
              

            

            
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        “Pledged
          Shares”
means
          all of the
          issued and outstanding shares of capital stock, whether certificated or
          uncertificated, of Holdings’ direct or indirect Subsidiaries (other than
          Subsidiaries which are owned by Non-Wholly-Owned Subsidiaries) now owned
          by any
          Grantor, as more specifically described in Schedule 3.

         

        “Primary
          Account”
means
          each
          Deposit Account for which a Control Agreement in form and substance reasonably
          satisfactory to the Administrative Agent has been executed and delivered
          to the
          Administrative Agent by the applicable Grantor and the bank or other depository
          institution at which such Deposit Account is maintained. 

         

        “Proceeds”
means
          all
          proceeds, as such term is defined in Article 9 of the UCC.

         

        “Rights
          to
          Payment”
means
          any and all
          of any Grantor’s Accounts and any and all of any Grantor’s rights and claims to
          the payment or receipt of money or other forms of consideration of any
          kind in,
          to and under or with respect to its Chattel Paper, Documents, General
          Intangibles, Instruments, Investment Property, Letter-of-Credit Rights,
          Proceeds
          and Supporting Obligations.

         

        “Secured
          Obligations”
means
          all
          indebtedness, liabilities and other obligations of the Grantors to the
          Secured
          Parties created under, or arising out of or in connection with, the Credit
          Agreement, the Notes or any of the other Loan Documents, and any and all
          other
          indebtedness, liabilities and other obligations of the Grantors to the
          Administrative Agent, the Lenders or any Affiliate thereof, including all
          unpaid
          principal of the Loans, all interest accrued thereon, all fees due under
          the
          Credit Agreement, all Secured Swap Obligations, and all other amounts payable
          by
          the Grantors to any Secured Party thereunder or in connection therewith,
          whether
          now existing or hereafter arising, and whether due or to become due, absolute
          or
          contingent, liquidated or unliquidated, determined or undetermined, and
          including interest that accrues after the commencement by or against any
          Grantor
          of any Insolvency Proceedings naming such Person as the debtor in such
          proceeding.

         

        “Secured
          Parties”
means
          the Lenders
          and the Administrative Agent, and each of their respective successors,
          transferees and assigns.

         

        “Secured
          Swap
          Obligations”
means
          all
          obligations and liabilities of any Grantor of any kind arising under all
          Specified Swap Contracts, including obligations and liabilities arising
          in
          connection with or as a result of early termination of a Swap Contract,
          whether
          or not occurring as a result of a default thereunder), absolute or contingent,
          due or to become due, now existing or hereafter created or incurred, liquidated
          or unliquidated, determined or undetermined.

         

        “Supporting
          Obligations”
means
          all
          supporting obligations, as such term is defined in Article 9 of the
          UCC.

         

        “UCC”
means
          the Uniform
          Commercial Code as the same may, from time to time, be in effect in the
          State of
          California. 

          
            
              
              

            

            
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        “Zero
          Balance
          Account”
means
          each
          Deposit Account designated as a “zero balance” account on Schedule
          I
          hereto and any other Deposit Account designated as a “zero balance” account in a
          written notice to the Administrative Agent pursuant to Section 5(m)
          hereof.

         

        (c)    Terms
          Defined in
          UCC.
          Where applicable and except as otherwise defined herein, terms used in
          this
          Agreement shall have the meanings assigned to them in the UCC.

         

        (d)    Interpretation.
          The rules of
          interpretation set forth in Section 1.02 of the Credit Agreement shall be
          applicable to this Agreement and are incorporated herein by this
          reference.

         

        SECTION
          2
 Security
          Interest.

         

        (a)    Grant
          of Security
          Interest.
          As security for
          the payment and performance of the Secured Obligations, each Grantor hereby
          reaffirms that the security interests granted to the Administrative Agent
          under
          the Existing Security Agreement constitute, and shall constitute on and
          after
          the date hereof, valid and perfected Liens on the Collateral (subject only
          to
          Permitted Liens) to secure the Secured Obligations. Additionally, as security
          for the payment and performance of the Secured Obligations, each Grantor
          hereby
          further grants to the Administrative Agent, for itself and on behalf of
          and for
          the ratable benefit of the other Secured Parties, a security interest in
          all of
          such Grantor’s right, title and interest in, to and under all of its personal
          property, wherever located and whether now existing or owned or hereafter
          acquired or arising, including the following property (collectively, the
          “Collateral”):
          (i) all
          Accounts; (ii) all Chattel Paper; (iii) all Commercial Tort Claims; (iv)
          all
          Deposit Accounts; (v) all Documents; (vi) all Equipment; (vii) all General
          Intangibles; (viii) all Instruments; (ix) all Inventory; (x) all Investment
          Property; (xi) all Letter-of-Credit Rights; and (xii) all money, all products
          and Proceeds of any and all of the foregoing, and all Supporting Obligations
          of
          any and all of the foregoing. Notwithstanding the foregoing, except for
          fixtures
          (to the extent covered by Article 9 of the UCC), such grant of a security
          interest shall not extend to, and the term “Collateral” shall not include, any
          Chattel Paper, contracts and other General Intangibles which are now or
          hereafter held by any Grantor as licensee, lessee or otherwise, to the
          extent
          that (i) such Chattel Paper, contracts and other General Intangibles are
          not
          assignable or capable of being encumbered as a matter of law or under the
          terms
          of the license, lease or other agreement applicable thereto (but solely
          to the
          extent that any such restriction shall be enforceable under applicable
          law),
          without the consent of the licensor or lessor thereof or other applicable
          party
          thereto and (ii) such consent has not been obtained; provided, however,
          that the
          foregoing grant of security interest shall extend to, and the term "Collateral"
          shall include (A) any General Intangible which is Rights to Payment or
          a proceed
          of, or otherwise related to the enforcement and

          
            
              
              

            

            
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                I
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        collection
          of, any
          Rights to Payment, or goods which are the subject of any Rights to Payment,
          (B)
          any and all proceeds of such Chattel Paper, contracts and other General
          Intangibles to the extent that the assignment or encumbering of such proceeds
          is
          not so restricted and (C) upon any such licensor's, lessor's or other applicable
          party's consent with respect to any such otherwise excluded Chattel Paper,
          contracts or other General Intangibles being obtained, thereafter such
          Chattel
          Paper, contracts or other General Intangibles as well as any and all proceeds
          thereof that might have theretofore been excluded from such grant of a
          security
          interest and the term “Collateral.”

         

        (b)    Grantors
          Remain
          Liable.
          Anything herein
          to the contrary notwithstanding, (i) each Grantor shall remain liable under
          any contracts, agreements and other documents included in the Collateral,
          to the
          extent set forth therein, to perform all of its duties and obligations
          thereunder to the same extent as if this Agreement had not been executed,
          (ii) the exercise by the Administrative Agent of any of the rights
          hereunder shall not release any Grantor from any of its duties or obligations
          under such contracts, agreements and other documents included in the Collateral,
          and (iii) neither the Administrative Agent nor any other Secured Party
          shall have any obligation or liability under any contracts, agreements
          and other
          documents included in the Collateral by reason of this Agreement, nor shall
          the
          Administrative Agent or any other Secured Party be obligated to perform
          any of
          the obligations or duties of any Grantor thereunder or to take any action
          to
          collect or enforce any such contract, agreement or other document included
          in
          the Collateral hereunder.

         

        (c)    Continuing
          Security
          Interest.
          Each Grantor
          agrees that this Agreement shall create a continuing security interest
          in the
          Collateral which shall remain in effect until terminated in accordance
          with
          Section 24.

         

        SECTION
          3
 Perfection
          Procedures.
          Each Grantor
          shall (if necessary) execute and deliver to the Administrative Agent
          concurrently with the execution of this Agreement, and each Grantor hereby
          authorizes the Administrative Agent to file (with or without such Grantor’s
          signature) at any time and from time to time thereafter, all financing
          statements, continuation statements, termination statements, security agreements
          relating to the Intellectual Property Collateral, assignments, fixture
          filings,
          affidavits, reports, notices, and other documents and instruments, in form
          satisfactory to the Administrative Agent, and take all other action, as
          the
          Administrative Agent or the Majority Lenders may request, to perfect and
          continue perfected, maintain the priority of or provide notice of the
          Administrative Agent’s security interest in the Collateral and to accomplish the
          purposes of this Agreement. Without limiting the generality of the foregoing,
          each Grantor (1) ratifies and authorizes the filing by the Administrative
          Agent of any financing statements filed prior to the date hereof and
          (2) shall from time to time take the following actions:

          
            
              
              

            

            
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        (a)    Filing
          of Financing
          Statements.
          On or prior to
          the Effective Date each Grantor authorizes the Administrative Agent to
          file completed UCC-1 financing statements in the offices described in
Schedule 4
          (the “Filing
          Offices”),
          and after the
          Effective Date the applicable Grantor authorizes the Administrative Agent
          to
          file completed UCC-1 financing statements in the appropriate filing office
          or
          offices in any state identified by a Grantor in a notice delivered to the
          Administrative Agent pursuant to subsection 5(e).

         

        (b)    Delivery
          of Pledged
          Collateral.
          Each Grantor
          hereby agrees to deliver to or for the account of the Administrative Agent,
          at
          the address and to the Person to be designated by the Administrative Agent,
          the
          certificates, instruments and other writings representing any Pledged
          Collateral, which shall be in suitable form for transfer by delivery, or
          shall
          be accompanied by duly executed instruments of transfer or assignment in
          blank,
          in form satisfactory to the Administrative Agent. If any Grantor shall
          become
          entitled to receive or shall receive any Pledged Collateral after the date
          hereof, such Grantor shall accept the foregoing as the agent for the
          Administrative Agent, shall hold it in trust for the Administrative Agent,
          shall
          segregate it from other property or funds of such Grantor, and shall immediately
          deliver the same and all certificates, instruments and other writings
          representing such Pledged Collateral forthwith to or for the account of
          the
          Administrative Agent, at the address and to the Person to be designated
          by the
          Administrative Agent, which shall be in suitable form for transfer by delivery,
          or shall be accompanied by duly executed instruments of transfer or assignment
          in blank in form satisfactory to the Administrative Agent. Anything to
          the
          contrary notwithstanding, so long as no Event of Default shall have occurred
          and
          be continuing, (i) each Grantor may retain for collection in the ordinary
          course any Instruments received by such Grantor in the ordinary course
          of
          business, and the Administrative Agent shall, promptly upon request of
          such
          Grantor, make appropriate arrangements for making any other Instruments
          and/or
          Pledged Debt pledged by such Grantor available to the payor of any such
          Instrument or Pledged Debt for purposes of presentation, collection or
          renewal
          (any such arrangement to be effected, to the extent required under applicable
          law to continue perfected the Administrative Agent’s security interest hereunder
          in such Instruments or Pledged Debt, against trust receipt or like document),
          and (ii) each Grantor may retain any additional Pledged Collateral
          consisting of Instruments with a face value of less than $1,000,000 individually
          and $5,000,000 in the aggregate for all such Instruments or, in the case
          of any
          such additional Pledged Collateral with no face value, then such additional
          Pledged Collateral with a fair market value of less than $1,000,000 individually
          and $5,000,000 in the aggregate for all such Instruments, as determined
          by such
          Grantor in good faith.

         

        (c)    Transfer
          of
          Security Interest Other Than by Delivery.
          If for any reason
          Pledged Collateral cannot be delivered to or for the account of the
          Administrative Agent as provided in subsection 3(b), each Grantor shall
          promptly
          take such other steps as may be necessary or as shall be reasonably requested
          from time to time by the Administrative Agent to effect a transfer of a
          perfected first

          
            
              
              

            

            
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        priority
          security
          interest in and pledge of the Pledged Collateral to the Administrative
          Agent for
          itself and on behalf of and for the ratable benefit of the other Secured
          Parties
          pursuant to the UCC. To the extent practicable, such Grantor shall thereafter
          deliver the Pledged Collateral to or for the account of the Administrative
          Agent
          as provided in subsection 3(b).

         

        (d)    Deposit
          Accounts.
          Each Grantor
          shall execute such notices, and shall take such other action, including
          delivery
          of Control Agreements, as the Administrative Agent may reasonably request,
          to
          perfect and continue perfected, maintain the priority of or provide notice
          of
          the Administrative Agent’s security interest in Collateral consisting of Deposit
          Accounts (other than any Zero Balance Accounts, unless the Administrative
          Agent
          determines in its reasonable discretion that obtaining a Control Agreement
          in
          respect of one or more Zero Balance Accounts is necessary or desirable)
          and to
          accomplish the purposes of this Agreement.

         

        (e)    Intellectual
          Property Collateral.
          (i)  Each
          Grantor shall execute and deliver to the Administrative Agent, concurrently
          with
          the execution of this Agreement, such Intellectual Property Security Agreements
          as the Administrative Agent and the Majority Lenders may reasonably request,
          and
          authorizes the Administrative Agent to record such Intellectual Property
          Security Agreements with the U.S. Copyright Office or the U.S. Patent and
          Trademark Office, as applicable, and take such other action as may be necessary,
          or as the Administrative Agent or the Majority Lenders may reasonably request,
          to perfect the Administrative Agent’s security interest in such Intellectual
          Property Collateral. (ii) Immediately following the creation or other
          acquisition of any Intellectual Property Collateral by any Grantor after
          the
          date hereof which is registered or becomes registered or the subject of
          an
          application for registration with the U.S. Copyright Office or the U.S.
          Patent
          and Trademark Office, as applicable, such Grantor shall modify this Agreement
          by
          amending Schedule 2
          to include any
          Intellectual Property Collateral which becomes part of the Collateral and
          which
          was not included on Schedule 2
          as of the date
          hereof and authorizes the Administrative Agent to record any Intellectual
          Property Security Agreement related thereto with the U.S. Copyright Office
          or
          the U.S. Patent and Trademark Office, as applicable, and take such other
          action
          as may be necessary, or as the Administrative Agent or the Majority Lenders
          may
          reasonably request, to perfect the Administrative Agent’s security interest in
          such Intellectual Property Collateral.

         

        (f)    Documents,
          Etc.  Each
          Grantor shall
          deliver to the Administrative Agent, or an agent designated by it, appropriately
          endorsed or accompanied by appropriate instruments of transfer or assignment,
          all Docu-ments and Chattel Paper, and all other Rights to Payment at any
          time
          evidenced by promissory notes, trade acceptances or other instruments,
          not
          already delivered hereunder pursuant to this Section 3; provided,
however,
          that unless an
          Event of Default shall have occurred and be continuing, such Grantor shall
          not
          be

        
          
            
            

          

          
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        required
          to deliver
          any Document, Chattel Paper, promissory note, trade acceptance or other
          instrument having a face amount not in excess of $1,000,000 individually
          and
          $5,000,000 in the aggregate for all such items. Upon the request of the
          Administrative Agent, Grantors shall mark all Documents and Chattel Paper
          with
          such legends as the Administrative Agent shall reasonably specify.

         

        (g)    Bailees.
          At any time and
          from time to time, the Administrative Agent may give notice to any Person
          holding all or any portion of the Collateral that such Person is holding
          the
          Collateral as the agent and bailee of, and as pledge holder for, the
          Administrative Agent, and obtain such Person’s written acknowledgment thereof.
          Without limiting the generality of the foregoing, each Grantor, upon the
          Administrative Agent’s reasonable request, will join with the Administrative
          Agent in notifying any Person who has possession of any Collateral of the
          Administrative Agent’s security interest therein and obtaining an acknowledgment
          from such Person that it is holding the Collateral for the benefit of the
          Administrative Agent.

         

        (h)    Control.
          Without limiting
          the foregoing provisions of this Section 3, each Grantor will cooperate
          with the Administrative Agent in obtaining control (as defined in the
          UCC) of Collateral consisting of any Deposit Accounts (other than any Zero
          Balance Account, unless the Administrative Agent determines in its reasonable
          discretion that obtaining a Control Agreement in respect of one or more
          Zero
          Balance Accounts is necessary or desirable), Electronic Chattel Paper,
          Investment Property or Letter-of-Credit Rights.

         

        (i)
 Controlled
          Foreign
          Corporations. Notwithstanding anything herein to the contrary, in no event
          shall
          the Collateral include, and no Grantor shall be deemed to have granted
          a
          security interest in, any of such Grantor’s right, title or interest in any of
          the outstanding capital stock or other ownership interests of a Controlled
          Foreign Corporation (as defined below) in excess of 65% of the voting power
          of
          all classes of capital stock or other ownership interests of such Controlled
          Foreign Corporation entitled to vote; provided that immediately upon the
          amendment of the Code to allow the pledge of a greater percentage of the
          voting
          power of capital stock or other ownership interests in a Controlled Foreign
          Corporation without adverse tax consequences, the Collateral shall include,
          and
          such Grantor shall be deemed to have granted a security interest in, such
          greater percentage of capital stock or other ownership interests of each
          Controlled Foreign Corporation. As used herein, “Controlled Foreign Corporation”
shall mean a “controlled foreign corporation” as defined in the
          Code.

         

        SECTION
          4
 Representations
          and
          Warranties.
          In addition to
          the representations and warranties of the Grantors set forth in the Credit
          Agreement, which are incorporated herein by this reference, each Grantor
          represents and warrants to each Lender and the Administrative Agent
          that:

          
            
              
              

            

            
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        (a)    Location
          of Chief
          Executive Office.
          Each Grantor’s
          chief executive office is set forth in Schedule 1.

         

        (b)    Locations
          of
          Books.
          All locations where Books pertaining to the Rights to Payment are kept,
          including all equipment necessary for accessing such Books and the names
          and
          addresses of all service bureaus, computer or data processing companies
          and
          other Persons keeping any Books or collecting Rights to Payment for any
          Grantor,
          are set forth in Schedule 1.

         

        (c)    Jurisdiction
          of
          Organization and Names.
          Each Grantor’s
          jurisdiction of organization is set forth in Schedule 1;
          and each
          Grantor’s exact legal name is as set forth in the first paragraph of this
          Agreement. All trade names and trade styles under which each Grantor presently
          conducts its business operations are set forth in Schedule 1,
          and, except as
          set forth in Schedule 1,
          each Grantor has
          not, at any time in the past five years: (i) been known as or used any
          other corporate, trade or fictitious name; (ii) changed its name;
          (iii) been the surviving or resulting corporation in a merger or
          consolidation; or (iv) acquired through asset purchase or otherwise any
          business of any Person.

         

        (d)    Collateral.
          Each Grantor has
          rights in or the power to transfer the Collateral, and each Grantor is,
          and,
          except as permitted by Section 5(i), will continue to be, the sole and
          complete owner of the Collateral (or, in the case of after-acquired Collateral,
          at the time any Grantor acquires rights in such Collateral, will be the
          sole and
          complete owner thereof), free from any Lien other than Permitted
          Liens.

         

        (e)    Enforceability;
          Priority of Security Interest.
          (i) This
          Agreement creates a security interest which is enforceable against the
          Collateral in which each Grantor now has rights and will create a security
          interest which is enforceable against the Collateral in which such Grantor
          hereafter acquires rights at the time such Grantor acquires any such rights;
          and
          (ii) the Administrative Agent has a perfected and first priority security
          interest in the Collateral in which such Grantor now has rights, and will
          have a
          perfected and first priority security interest in the Collateral in which
          such
          Grantor hereafter acquires rights at the time such Grantor acquires any
          such
          rights, in each case for the Administrative Agent’s own benefit and for the
          ratable benefit of the other Secured Parties and subject to Permitted Liens,
          securing the payment and performance of the Secured Obligations.

         

        (f)    Other
          Financing
          Statements.
          Other than
          (i) financing statements disclosed to the Administrative Agent and
          (ii) financing statements in favor of the Administrative Agent in its
          capacity as Administrative Agent for itself and the other Secured Parties
          under
          the Credit Agreement

          
            
              
              

            

            
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        and
          any other Loan
          Documents, no effective financing statement naming the Grantor as debtor,
          assignor, grantor, mortgagor, pledgor or the like and covering all or any
          part
          of the Collateral is on file in any filing or recording office in any
          jurisdiction, except in respect of Permitted Liens.

         

        (g)    Rights
          to
          Payment.

         

        (i)    The
          Rights to
          Payment represent valid, binding and enforceable obligations of the account
          debtors or other Persons obligated thereon, representing undisputed, bona
          fide
          transactions completed in accordance with the terms and provisions contained
          in
          any documents related thereto, and are and will be genuine, free from Liens
          (other than Permitted Liens), and not subject to any adverse claims,
          counterclaims, setoffs, defaults, disputes, defenses, discounts, retainages,
          holdbacks or conditions precedent of any kind of character, except to the
          extent
          reflected by the Grantors’ reserves for uncollectible Rights to Payment or to
          the extent, if any, that such account debtors or other Persons may be entitled
          to normal and ordinary course trade discounts, returns, adjustments and
          allowances in accordance with Section 5(k), or as otherwise disclosed to
          the Administrative Agent and the Lenders in writing or occurring in the
          ordinary
          course of business;

         

        (ii)    to
          the best of each
          Grantor’s knowledge, all account debtors and other obligors on the Rights to
          Payment are solvent and generally paying their debts as they come due,
          except to
          the extent that such Grantor has established adequate reserves therefor
          in
          accordance with GAAP;

         

        (iii)    all
          Rights to
          Payment comply in all material respects with all applicable laws concerning
          form, content and manner of preparation and execution, including where
          applicable any federal or state consumer credit laws; 

         

        (iv)    no
          Grantor has
          assigned any of its rights under the Rights to Payment except as provided
          in
          this Agreement or as set forth in the other Loan Documents;

         

        (v)    all
          statements
          made, all unpaid balances and all other information in the Books and other
          documentation relating to the Rights to Payment in all material respects
          are
          true and correct and what they purport to be; and

         

        (vi)    no
          Grantor has any
          knowledge of any fact or circumstance which would materially impair the
          validity
          or collectibility of any of the Rights to Payment, except to the extent
          that
          such Grantor has established adequate reserves therefor in accordance with
          GAAP;

         

        (h)    Inventory.
          No Inventory is
          stored with any bailee, warehouseman or similar Person, nor has any Inventory
          been consigned to any Grantor or consigned by any Grantor to any

          
            
              
              

            

            
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        Person
          or is held
          by any Grantor for any Person under any “bill and hold” or other arrangement,
          except at locations listed, and as specified, in Schedule 1.

         

        (i)    Intellectual
          Property.

         

        (i)    Except
          as set forth
          in Schedule 2,
          no Grantor
          (directly or through any Subsidiary) owns, possesses or uses under any
          licensing
          arrangement any patents, copyrights, trademarks, service marks or trade
          names,
          nor is there currently pending before any Governmental Authority any application
          for registration of any patent, copyright, trademark, service mark or trade
          name
          material to its business and operations;

         

        (ii)    all
          of each
          Grantor’s patents, copyrights, trademarks, service marks and trade names are
          subsisting and have not been adjudged invalid or unenforceable in whole
          or in
          part;

         

        (iii)    all
          maintenance
          fees required to be paid by any Grantor on account of any of its patents
          have
          been timely paid for maintaining such patents in force, and, to the best
          of such
          Grantor’s knowledge, each of such patents is valid and enforceable;

         

        (iv)    to
          the best of each
          Grantor’s knowledge, no infringement or unauthorized use presently is being made
          of any Intellectual Property Collateral by any Person that could reasonably
          be
          expected to have a Material Adverse Effect; and

         

        (v)    each
          Grantor owns,
          has material rights under, is a party to, or an assignee of a party to
          all
          material licenses, patents, patent applications, copyrights, service marks,
          trademarks, trademark applications, trade names and all other Intellectual
          Property Collateral necessary to continue to conduct its business as heretofore
          conducted.

         

        (j)    Equipment.
          As of the
          Effective Date, none
          of the
          Equipment that is material to any Grantor is leased from any Person, except
          as
          set forth in UCC record searches delivered to the Administrative Agent
          or as
          otherwise disclosed to the Administrative Agent and the Lenders.

         

        (k)    Deposit
          Accounts.
          The names and
          addresses of all financial institutions at which any Grantor maintains
          its
          Deposit Accounts, and the account numbers and account names of such Deposit
          Accounts, are set forth in Schedule 1.

         

        (l)    Pledged
          Debt and
          Instrument Collateral.
          (i) No
          Grantor has previously assigned any interest in the Pledged Debt or any
          Instrument Collateral (other than to the Administrative Agent and such
          interests
          as will be released on or before the date hereof), (ii) no Person other
          than such Grantor owns an interest in the Pledged Debt or Instrument Collateral
          (whether as joint holders, participants or otherwise), (iii) the entire
          Pledged Debt and Instrument Collateral is

          
            
              
              

            

            
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        owing
          only to such
          Grantor, and (iv) no material default exists under or in respect of the
          Pledged Debt or Instrument Collateral.

         

        (m)    Pledged
          Shares,
          Partnership and LLC Collateral and other Pledged Collateral.
          (i) All the
          Pledged Shares and Partnership and LLC Collateral have been, and upon issuance
          any additional Pledged Collateral consisting of Pledged Shares, Partnership
          and
          LLC Collateral or any other securities, will be, duly and validly issued,
          and
          are and will be fully paid and non-assessable, subject in the case of
          Partnership and LLC Collateral to future assessments required under applicable
          law and any applicable partnership agreement, (ii) the applicable Grantor
          is or, in the case of any such additional Pledged Collateral will be, the
          legal
          record and beneficial owner thereof, (iii) there are no restrictions on the
          transferability of the Pledged Collateral or such additional Pledged Collateral
          to the Administrative Agent or with respect to the foreclosure, transfer
          or
          disposition thereof by the Administrative Agent, except as provided under
          applicable securities or “Blue Sky” laws, (iv) except as set forth in
          Section 3(j), in Schedule 3
          or in
          Schedule 6.17 of the Credit Agreement, the Pledged Shares and Partnership
          and LLC Collateral constitute 100% of the issued and outstanding shares
          of
          capital stock, membership interests and partnership interests of Holdings’
direct and indirect U.S. Subsidiaries (other than Subsidiaries which are
          owned
          by Non-Wholly-Owned Subsidiaries), and no securities convertible into or
          exchangeable for any shares of capital stock, membership interests and
          partnership interests of any such Subsidiary, or any options, warrants
          or other
          commitments entitling any Person to purchase or otherwise acquire any shares
          of
          capital stock, membership interests and partnership interests of any such
          Subsidiary, are issued and outstanding, and (v) any and all shareholders
          agreements, voting trusts, proxy agreements or other agreements or
          understandings which affect or relate to the voting or giving of written
          consents with respect to any of the Pledged Shares, and any and all partnership
          agreements, operating agreements and other agreements relating to the
          Partnership and LLC Collateral, have been disclosed in writing to the
          Administrative Agent and the Lenders.

         

        (n)    Other
          Investment
          Property; Instruments; and Chattel Paper.
          All securities
          accounts of the Grantors and other Investment Property of the Grantors
          are set
          forth in Schedule 1,
          and all
          Instruments and Chattel Paper held by Grantors are also set forth in
Schedule 1.

         

        (o)    Control
          Agreements.
          No Control
          Agreements exist with respect to any Collateral other than any Control
          Agreements in favor of the Administrative Agent.

         

        (p)    Letter-of-Credit
          Rights.
          None of the
          Grantors have any Letter-of-Credit Rights except as set forth in Schedule 1.

          
            
              
              

            

            
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        (q)    Commercial
          Tort
          Claims.
          None of the
          Grantors have any Commercial Tort Claims except as set forth in Schedule 1.

         

        SECTION
          5
 Covenants.
          In addition to
          the covenants of the Grantors set forth in the Credit Agreement, which
          are
          incorporated herein by this reference, so long as any of the Secured Obligations
          remain unsatisfied or any Lender shall have any Commitment or any Letter
          of
          Credit shall be outstanding or any Specified Swap Contract shall be in
          effect,
          each Grantor agrees that:

         

        (a)    Defense
          of
          Collateral.
          Each Grantor
          shall appear in and defend any action, suit or proceeding which may affect
          to a
          material extent its title to, or right or interest in, or the Administrative
          Agent’s right or interest in, the Collateral.

         

        (b)    Preservation
          of
          Collateral.
          Each Grantor
          shall do and perform all reasonable acts that may be necessary and appropriate
          to maintain, preserve and protect the Collateral.

         

        (c)    Compliance
          with
          Laws, Etc.  Each
          Grantor shall
          comply in all material respects with all laws, regulations and ordinances,
          and
          all policies of insurance, relating in a material way to the possession,
          operation, maintenance and control of the Collateral.

         

        (d)    Location
          of Books
          and Chief Executive Office.
          Each Grantor
          shall: (i) keep all Books (other than copies) pertaining to the Rights to
          Payment at the locations set forth in Schedule 1;
          and
          (ii) give prompt written notice to the Administrative Agent, but in any
          event within 30 days, of (a) any changes in any such location where Books
          pertaining to the Rights to Payment are kept, including any change of name
          or
          address of any service bureau, computer or data processing company or other
          Person preparing or maintaining any Books or collecting Rights to Payment
          for
          such Grantor or (b) any changes in the location of such Grantor’s chief
          executive office or principal place of business.

         

        (e)    Change
          in Name,
          Identity or Structure.
          Each Grantor
          shall give prompt written notice to the Administrative Agent, but in any
          event
          within 10 days, of (i) any change in name, (ii) any change in its
          jurisdiction of organization, (iii) any change in its registration as an
          organization (or any new such registration); and (iv) any changes in its
          identity or structure in any manner which might make any financing statement
          filed hereunder incorrect or misleading;

          
            
              
              

            

            
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        provided
          that no Grantor
          shall change its jurisdiction of organization to a jurisdiction outside
          of the
          United States.

         

        (f)    Maintenance
          of
          Records.
          Each Grantor
          shall keep accurate and complete Books with respect to the Collateral,
          disclosing the Administrative Agent’s security interest hereunder.

         

        (g)    Invoicing
          of
          Sales.
          The Grantor will invoice all of its sales upon forms customary in the industry
          and maintain proof of delivery and customer acceptance of goods.

         

        (h)    Disposition
          of
          Collateral.
          Each Grantor
          shall not surrender or lose possession of (other than to the Administrative
          Agent), sell, lease, rent, or otherwise dispose of or transfer any of the
          Collateral or any right or interest therein, except to the extent permitted
          by
          the Loan Documents (including disposition permitted under Section 8.02 of
          the Credit Agreement).

         

        (i)    Liens.
          Each Grantor
          shall keep the Collateral free of all Liens except Permitted Liens.

         

        (j)    Expenses.
          The Grantor (or
          purchaser of Inventory) will pay all expenses of protecting, storing,
          warehousing, insuring, handling and shipping the Collateral.

         

        (k)    Leased
          Premises.
          At the
          Administrative Agent’s request, any Grantor shall obtain from each Person from
          whom such Grantor leases any premises at which any Collateral is at any
          time
          present such collateral access, subordination, waiver, consent and estoppel
          agreements as the Administrative Agent may reasonably require, in form
          and
          substance satisfactory to the Administrative Agent.

         

        (l)    Rights
          to
          Payment.
          Each Grantor
          shall:

         

        (i)    with
          such frequency
          as the Administrative Agent or the Majority Lenders may require, furnish
          to the
          Administrative Agent such information relating to the Accounts as the
          Administrative Agent or the Majority Lenders shall from time to time reasonably
          request;

          
            
              
              

            

            
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        (ii)    give
          only normal
          discounts, allowances and credits as to Accounts and other Rights to Payment,
          in
          the ordinary course of business, according to normal trade practices, and
          enforce all Accounts and other Rights to Payment strictly in accordance
          with
          their terms, and during the existence of an Event of Default, take all
          such
          action to such end as may from time to time be reasonably requested by
          the
          Administrative Agent or the Majority Lenders, except that such Grantor
          may at
          any time grant any extension of the time for payment or enter into any
          agreement
          to make a rebate or otherwise to reduce the amount owing on or with respect
          to,
          or compromise or settle for less than the full amount thereof, any Account
          or
          other Right to Payment, in the ordinary course of business, according to
          normal
          trade practices;

         

        (iii)    if
          any discount,
          allowance, credit, extension of time for payment, agreement to make a rebate
          or
          otherwise to reduce the amount owing on, or compromise or settle, an Account
          or
          other Right to Payment exists or occurs, or if, to the knowledge of any
          Grantor,
          any dispute, setoff, claim, counterclaim or defense exists or has been
          asserted
          or threatened with respect to an Account or other Right to Payment, disclose
          such fact to the Administrative Agent in the Books relating to such Account
          or
          other Right to Payment when such Books are requested for inspection by
          the
          Administrative Agent, and in connection with any invoice or report furnished
          by
          any Grantor to the Administrative Agent relating to such Account or other
          Right
          to Payment; 

         

        (iv)    if
          any Accounts
          arise from contracts with the United States or any department, agency or
          instrumentality thereof, promptly notify the Administrative Agent thereof
          and
          execute any documents and instruments and take any other steps reasonably
          requested by the Administrative Agent in order that all monies due and
          to become
          due thereunder shall be assigned to the Administrative Agent and notice
          thereof
          given to the Federal authorities under the Federal Assignment of Claims
          Act
          (provided
          that such
          assignment and notice shall not be required if the applicable contract
          prohibits
          assignment);

         

        (v)    in
          accordance with
          its sound business judgment perform and comply in all material respects
          with its
          obligations in respect of the Accounts and other Rights to Payment;

         

        (vi)    upon
          the request of
          the Administrative Agent or the Majority Lenders (a) at any time, notify
          all or any designated portion of the account debtors and other obligors
          on the
          Rights to Payment of the security interest hereunder, and (b) upon the
          occurrence of an Event of Default) notify the account debtors and other
          obligors on the Rights to Payment or any designated portion thereof that
          payment
          shall be made directly to the Administrative Agent or to such other Person
          or
          location as the Administrative Agent shall specify; and

         

        (vii)    upon
          the occurrence
          of any Event of Default, establish such lockbox or similar arrangements
          for the
          payment of the Accounts and other Rights to Payment as the Administrative
          Agent
          shall require.

        
          
            
            

          

          
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        (m)    Deposit
          Accounts
          and Securities Accounts.
          Each Grantor
          shall give the Administrative Agent notice of the establishment of any
          new
          Deposit Account and any new securities account with respect to any Investment
          Property in each Update Certificate delivered by Holdings to the Administrative
          Agent pursuant to Section 7.02(h) of the Credit Agreement; provided,
however,
          that upon the
          occurrence of an Event of Default, each Grantor shall give the Administrative
          Agent notice of any such Deposit Account or securities account at such
          times and
          with such frequency as the Administrative Agent or the Majority Lenders
          shall
          request.

         

        (n)    Inventory.
          Each Grantor
          shall:

         

        (i)    at
          such times as
          the Administrative Agent or the Majority Lenders shall request, prepare
          and
          deliver to the Administrative Agent a report of all Inventory, in form
          and
          substance satisfactory to the Administrative Agent and the Majority
          Lenders;

         

        (ii)    upon
          the request of
          the Administrative Agent or the Majority Lenders, take a physical listing
          of the
          Inventory and promptly deliver a copy of such physical listing to the
          Administrative Agent; and

         

        (iii)    not
          store any
          Inventory with a bailee, warehouseman or similar Person or on premises
          leased to
          any Grantor, nor dispose of any Inventory on a bill-and-hold, guaranteed
          sale,
          sale and return, sale on approval, consignment or similar basis, nor acquire
          any
          Inventory from any Person on any such basis, except in the ordinary course
          of
          business and in accordance with its normal practices.

         

        (o)    Equipment.
          Each Grantor
          shall, upon the Administrative Agent’s or the Majority Lenders’ request, deliver
          to the Administrative Agent a report of each item of Equipment, in form
          and
          substance satisfactory to the Administrative Agent and the Majority
          Lenders.

         

        (p)    Intellectual
          Property Collateral.
          Each Grantor
          shall:

         

        (i)    not
          allow or suffer
          any Intellectual Property Collateral to become abandoned, nor any registration
          thereof to be terminated, forfeited, expired or dedicated to the public,
          except
          for Intellectual Property Collateral having negligible commercial
          value;

         

        (ii)    not
          enter into any
          agreements or transactions (including any license, sublicense or royalty
          agreement) pertaining to any Intellectual Property Collateral outside of
          the
          ordinary course of business, or enter into any exclusive license or sublicense
          of any Intellectual Property Collateral, except in a transaction permitted
          under
          the Loan Documents;

          
            
              
              

            

            
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        (iii)    promptly
          give the
          Administrative Agent notice of any rights any Grantor may obtain to any
          new
          patentable inventions, copyrightable works or other new Intellectual Property
          Collateral which such Grantor intends to register, prior to the filing
          of any
          application for registration thereof; and

         

        (iv)    diligently
          prosecute all applications for patents, copyrights and trademarks, and
          file and
          prosecute any and all continuations, continuations-in-part, applications
          for
          reissue, applications for certificate of correction and like matters as
          shall be
          reasonable and appropriate in accordance with prudent business practice,
          and
          promptly and timely pay any and all maintenance, license, registration
          and other
          fees, taxes and expenses incurred in connection with any Intellectual Property
          Collateral.

         

        (q)    Notices,
          Reports
          and Information.
          Each Grantor
          shall (i) notify the Administrative Agent of any material claim made or
          asserted against the Collateral by any Person and of any change in the
          composition of the Collateral or other event which could materially adversely
          affect the value of the Collateral or the Administrative Agent’s Lien thereon;
          (ii) furnish to the Administrative Agent such statements and schedules
          further identifying and describing the Collateral and such other reports
          and
          other information in connection with the Collateral as the Administrative
          Agent
          or the Majority Lenders may reasonably request, all in reasonable detail;
          and
          (iii) upon reasonable request of the Administrative Agent or the Majority
          Lenders make such demands and requests for information and reports as any
          Grantor is entitled to make in respect of the Collateral.

         

        (r)    Commercial
          Tort
          Claims.
          Each Grantor will
          give the Administrative Agent prompt notice if such Grantor shall at any
          time
          hold or acquire any Commercial Tort Claim.

         

        (s)    Letter-of-Credit
          Rights.
          Each Grantor will
          give the Administrative Agent immediate notice if such Grantor shall at
          any time
          hold or acquire any Letter-of-Credit Rights.

         

        (t)    Shareholder
          Agreements and Other Agreements.
          (i) Each Grantor
          shall comply with all of its obligations under any shareholders agreement,
          operating agreement, partnership agreement, voting trust, proxy agreement
          or
          other agreement or understanding (collectively, the “Pledged Collateral
          Agreements”) to which it is a party and shall enforce all of its rights
          thereunder. 

         

        (ii)    No
          Grantor shall vote
          to enable or take any other action to  amend or terminate, or waive
          compliance with any of the terms of, any Pledged Collateral Agreement,
          certificate or articles of incorporation, bylaws or other organizational
          documents in any way that materially changes the rights of such Grantor
          with
          respect to any Pledged Collateral in a manner adverse to the Administrative
          Agent or the Lenders or

          
            
              
              

            

            
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        that
          adversely
          affects the validity, perfection or priority of the Administrative Agent’s
          security interest therein.

         

        (u)    Insurance
          (i).
          (i) Each
          Grantor shall carry and maintain in full force and effect, at the expense
          of the
          Grantors and with financially sound and reputable insurance companies,
          insurance
          with respect to the Collateral in such amounts, with such deductibles and
          covering such risks as shall be specified in the Credit Agreement. Upon
          the
          request of the Administrative Agent or the Majority Lenders, and in any
          event
          not less often than annually, each Grantor shall furnish the Administrative
          Agent with full information as to the insurance carried by it and, if so
          requested, copies of all such insurance policies. All insurance policies
          required under this subsection (v) shall provide that they shall not be
          terminated or cancelled nor shall any such policy be materially changed
          without
          at least 30 days’ prior written notice to the Grantor and the
          Administrative Agent (or 10 days’ prior written notice if the Administrative
          Agent consents to such shorter notice). Receipt of notice of termination
          or
          cancellation of any such insurance policies or reduction of coverages or
          amounts
          thereunder shall entitle the Administrative Agent to renew any such policies,
          cause the coverages and amounts thereof to be maintained at levels required
          pursuant to the first sentence of this subsection (v) or otherwise to
          obtain similar insurance in place of such policies, in each case at the
          expense
          of the Grantors.

         

        (ii)    If
          Collateral with
          a value exceeding $5,000,000 of any Grantor shall be materially damaged
          or
          destroyed, in whole or in part, by fire or other casualty, such Grantor
          shall
          give prompt notice thereof to the Administrative Agent. No settlement on
          account
          of any loss on any such Collateral covered by insurance shall be made for
          less
          than insured value without the consent of the Majority Lenders. After the
          occurrence and during the continuance of an Event of Default, or as otherwise
          required under the Loan Documents, all sums payable to any Grantor by any
          insurer with respect to a casualty relating to all or any part of the Collateral
          shall be paid to the Administrative Agent. If any Grantor shall receive
          any
          insurance proceeds which are to be paid to the Administrative Agent pursuant
          to
          the previous sentence, such Grantor shall hold such proceeds in trust for
          the
          Administrative Agent, shall segregate such proceeds from other funds of
          such
          Grantor, and shall immediately forward such proceeds in the form received
          to the
          Administrative Agent (appropriately indorsed by such Grantor to the order
          of the
          Administrative Agent or in such other manner as shall be satisfactory to
          the
          Administrative Agent). All such insurance proceeds may be retained by the
          Administrative Agent as part of Collateral hereunder and held in the Proceeds
          Account, applied by the Administrative Agent toward payment of all or part
          of
          the Secured Obligations in such order as is provided herein, or released
          to such
          Grantor upon its request with the consent of the Majority Lenders.

         

        (v)    Zero
          Balance
          Accounts.
          Each Grantor
          shall take all steps necessary to ensure that (i) each Zero Balance Account
          is
          swept into a Primary Account no less frequently than every other

          
            
              
              

            

            
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        day,
          and (ii) no
          Zero Balance Account shall maintain a balance in excess of $5,000 for a
          period
          in excess of three consecutive Business Days.

         

        SECTION
          6
 Administration
          of
          the Rights to Payment and Pledged Collateral.

         

        (a)    Collection
          of
          Rights to Payment.
          Until the
          Administrative Agent exercises its rights hereunder to collect Rights to
          Payment, each Grantor shall endeavor in the first instance diligently to
          collect
          all amounts due or to become due on or with respect to the Rights to Payment.
          At
          the request of the Administrative Agent or the Majority Lenders, during
          the
          continuance of any Event of Default, all remittances received by any Grantor
          shall be held in trust for the Administrative Agent and, in accordance
          with the
          Administrative Agent’s instructions, remitted to the Administrative Agent or
          deposited to an account with the Administrative Agent in the form received
          (with
          any necessary endorsements or instruments of assignment or
          transfer).

         

        (b)    Investment
          Property
          and Instruments.
          Unless and until
          an Event of Default shall have occurred, each Grantor shall be entitled
          to
          receive and retain for its own account any cash dividend on or other cash
          distribution, if any, in respect of the Pledged Collateral, to the extent
          consistent with the Credit Agreement; provided,
however,
          that, except in
          connection with transactions permitted under Section  8.02 or
          Section 8.03 of the Credit Agreement, such Grantor shall not be entitled to
          receive (i) cash paid, payable or otherwise distributed in redemption of,
          or in exchange for or in substitution of, any Pledged Collateral, or
          (ii) dividends and other distributions paid or payable in cash in respect
          of any Pledged Collateral in connection with a partial or total liquidation
          or
          dissolution of such Grantor or in connection with a reduction of capital,
          capital surplus or paid-in-surplus or any other type of recapitalization.
          At the
          request of the Administrative Agent or the Majority Lenders, during the
          continuance of any Event of Default, the Administrative Agent shall be
          entitled
          to receive all distributions and payments of any nature with respect to
          any
          Investment Property or Instruments, and all such distributions or payments
          received by any Grantor shall be held in trust for the Administrative Agent
          and,
          in accordance with the Administrative Agent’s instructions, remitted to the
          Administrative Agent or deposited to an account with the Administrative
          Agent in
          the form received (with any necessary endorsements or instruments of assignment
          or transfer). During the continuance of an Event of Default any such
          distributions and payments with respect to any Investment Property held
          in any
          securities account shall be held and retained in such securities account,
          in
          each case as part of the Collateral hereunder. Additionally, the Administrative
          Agent shall have the right, during the continuance of an Event of Default,
          following prior written notice to any Grantor, to vote and to give consents,
          ratifications and waivers with respect to any Investment Property, Pledged
          Debt
          and Instruments, and to exercise all rights of conversion, exchange,
          subscription or any other rights, privileges or options pertaining thereto,
          as
          if the Administrative Agent were the absolute owner thereof; provided that
          the
          Administrative Agent shall have no duty to exercise any of the

          
            
              
              

            

            
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        foregoing
          rights
          afforded to it and shall not be responsible to any Grantor or any other
          Person
          for any failure to do so or delay in doing so.

         

        (c)    Voting
          Prior to an
          Event of Default.
          Unless and until
          an Event of Default shall have occurred and be continuing each Grantor
          shall
          have the right to vote the Pledged Collateral and to give consents,
          ratifications and waivers in respect thereof, and shall retain the power
          to
          control the direction, management and policies of any Person comprising
          the
          Pledged Collateral to the same extent as such Grantor would if the Pledged
          Collateral were not pledged to the Administrative Agent pursuant to this
          Agreement; provided,
however,
          that no vote
          shall be cast or consent, waiver or ratification given or action taken
          which
          would have the effect of materially impairing the position or interest
          of the
          Administrative Agent and the Secured Parties in respect of the Pledged
          Collateral or which would alter the voting rights with respect to the stock
          or
          other ownership interest in or of any such Person or be inconsistent with
          or
          violate any provision of this Agreement, the Credit Agreement, or any other
          Loan
          Documents. If applicable, such Grantor shall be deemed the beneficial owner
          of
          all Pledged Collateral for purposes of Sections 13 and 16 of the Exchange
          Act and agrees to file all reports required to be filed by beneficial owners
          of
          securities thereunder. The Administrative Agent shall execute and deliver
          (or
          cause to be executed and delivered) to each Grantor all such proxies and
          other instruments as such Grantor may reasonably request for the purpose
          of
          enabling such Grantor to exercise the voting and other rights which it
          is
          entitled to exercise pursuant to this subsection (c) and to receive
          the distributions which it is authorized to receive and retain pursuant
          to this
          subsec-tion (c).

         

        (d)    General
          Authority
          upon an Event of Default.
          During the
          continuance of any Event of Default:

         

        (i)    the
          Administrative
          Agent shall be entitled to receive all distributions and payments of any
          nature
          with respect to the Pledged Collateral, to be held by the Administrative
          Agent
          as part of the Pledged Collateral; and

         

        (ii)    the
          Administrative
          Agent shall have the right following prior written notice to the Grantor
          to vote
          or consent to take any action with respect to the Pledged Collateral and
          exercise all rights of conversion, exchange, subscription or any other
          rights,
          privileges or options pertaining to the Pledged Collateral, as if the
          Administrative Agent were the absolute owner thereof.

         

        (e)    Distributions
          to Be
          Held for Administrative Agent.
          Distributions and
          other payments which are received by the Grantor but which it is not entitled
          to
          retain as a result of the operation of this Section 6 shall be held in
          trust for the benefit of the Administrative Agent, be segregated from the
          other
          property or funds of such Grantor, and be forthwith paid over or delivered
          to
          the Administrative Agent in the same form as so received.

          
            
              
              

            

            
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        (f)    Certain
          Other
          Administrative Matters.
          The
          Administrative Agent may cause any of the Pledged Collateral to be transferred
          into its name or into the name of its nominee or nominees (subject to the
          revocable rights specified in this Section 6) if, in the Administrative
          Agent’s reasonable discretion, such action is necessary or desirable to protect
          or exercise the Administrative Agent’s rights and interests hereunder. The
          Administrative Agent shall at all times have the right to exchange
          uncertificated Pledged Collateral for certificated Pledged Collateral,
          and to
          exchange certificated Pledged Collateral for certificates of larger or
          smaller
          denominations, for any purpose consistent with this Agreement.

         

        SECTION
          7
 Authorization;
          Administrative Agent Appointed Attorney-in-Fact.
          The
          Administrative Agent shall have the right to, in the name of any Grantor,
          or in
          the name of the Administrative Agent or otherwise, without notice to or
          assent
          by such Grantor, and each Grantor hereby constitutes and appoints the
          Administrative Agent (and any of the Administrative Agent’s officers or
          employees or agents designated by the Administrative Agent) as such Grantor’s
          true and lawful attorney-in-fact, with full power and authority to:

         

        (a)    sign
          and file any
          of the financing statements which must be executed or filed to perfect
          or
          continue perfected, maintain the priority of or provide notice of the
          Administrative Agent’s security interest in the Collateral and file any such
          financing statements by electronic means with or without a signature as
          authorized or required by applicable law or filing procedures;

         

        (b)    take
          possession of
          and endorse any notes, acceptances, checks, drafts, money orders or other
          forms
          of payment or security and collect any Proceeds of any Collateral;

         

        (c)    sign
          and endorse
          any invoice or bill of lading relating to any of the Collateral, warehouse
          or
          storage receipts, drafts against customers or other obligors, assignments,
          notices of assignment, verifications and notices to customers or other
          obligors;

         

        (d)    notify
          the U.S.
          Postal Service and other postal authorities to change the address for delivery
          of mail addressed to any Grantor to such address as the Administrative
          Agent may
          designate (provided
          that the
          Administrative Agent agrees it will promptly deliver over to such Grantors
          any
          mail that does not relate to the Collateral); and, without limiting the
          generality of the foregoing, establish with any Person lockbox or similar
          arrangements for the payment of the Rights to Payment;

         

        (e)    receive,
          open and
          dispose of all mail addressed to any Grantor (provided
          that the
          Administrative Agent agrees it will promptly deliver over to such Grantors
          any
          mail that does not relate to the Collateral);

          
            
              
              

            

            
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        (f)    send
          requests for
          verification of Rights to Payment to the customers or other obligors of
          any
          Grantor;

         

        (g)    contact,
          or direct
          any Grantor to contact, all account debtors and other obligors on the Rights
          to
          Payment and instruct such account debtors and other obligors to make all
          payments directly to the Administrative Agent;

         

        (h)    assert,
          adjust, sue
          for, compromise or release any claims under any policies of
          insurance;

         

        (i)    exercise
          dominion
          and control over, and refuse to permit further withdrawals from, Deposit
          Accounts maintained with Wells Fargo or any other bank, financial institution
          or
          other Person;

         

        (j)    notify
          each Person
          maintaining lockbox or similar arrangements for the payment of the Rights
          to
          Payment to remit all amounts representing collections on the Rights to
          Payment
          directly to the Administrative Agent;

         

        (k)    ask,
          demand,
          collect, receive and give acquittances and receipts for any and all Rights
          to
          Payment, enforce payment or any other rights in respect of the Rights to
          Payment
          and other Collateral, grant consents, agree to any amendments, modifications
          or
          waivers of the agreements and documents governing the Rights to Payment
          and
          other Collateral, and otherwise file any claims, take any action or institute,
          defend, settle or adjust any actions, suits or proceedings with respect
          to the
          Collateral, as the Administrative Agent or the Majority Lenders may deem
          necessary or desirable to maintain, preserve and protect the Collateral,
          to
          collect the Collateral or to enforce the rights of the Administrative Agent
          with
          respect to the Collateral;

         

        (l)    execute
          any and all
          applications, documents, papers and instruments necessary for the Administrative
          Agent to use the Intellectual Property Collateral and grant or issue any
          exclusive or non-exclusive license or sublicense with respect to any
          Intellectual Property Collateral;

         

        (m)    execute
          any and all
          endorsements, assignments or other documents and instruments necessary
          to sell,
          lease, assign, convey or otherwise transfer title in or dispose of the
          Collateral;

         

        (n)    execute
          and deliver
          to any securities intermediary or other Person any entitlement order or
          other
          notice, document or instrument which the Administrative Agent may deem
          necessary
          or advisable (A) to realize upon the Collateral, and (B) to maintain,
          protect and preserve the Deposit Accounts and Investment Property and the
          Administrative Agent’s security interest therein; and

         

        (o)    execute
          any and all
          such other documents and instruments, and do any and all acts and things
          for and
          on behalf of any Grantor, which the Administrative Agent or the Majority
          Lenders
          may deem necessary or advisable (A) to realize upon the

          
            
              
              

            

            
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        Collateral,
          and
          (B) to maintain, protect and preserve the Collateral and the Administrative
          Agent’s security interest therein and to accomplish the purposes of this
          Agreement.

         

        The
          Administrative
          Agent agrees that, except during the continuance of an Event of Default,
          it
          shall not exercise the power of attorney, or any rights granted to the
          Administrative Agent, pursuant to clauses (b) through (m), (n)(A) and
          (o)(A) above. The foregoing power of attorney is coupled with an interest
          and
          irrevocable so long as the Lenders have any Commitments or any Letter of
          Credit
          remains outstanding or any Specified Swap Contract shall be in effect or
          the
          Secured Obligations have not been paid and performed in full. Each Grantor
          hereby ratifies, to the extent permitted by law, all that the Administrative
          Agent shall lawfully and in good faith do or cause to be done by virtue
          of and
          in compliance with this Section 7.

         

        SECTION
          8
 Administrative
          Agent Performance of Company Obligations.
          The
          Administrative Agent may perform or pay any obligation which any Grantor
          has
          agreed to perform or pay under or in connection with this Agreement, and
          which
          such Grantor has failed to perform or pay as and when due, and such Grantor
          shall reimburse the Administrative Agent on demand for any amounts paid
          by the
          Administrative Agent pursuant to this Section 8.

         

        SECTION
          9
 Administrative
          Agent’s Duties.
          Notwithstanding
          any provision contained in this Agreement, the Administrative Agent shall
          have
          no duty to exercise any of the rights, privileges or powers afforded to
          it and
          shall not be responsible to any Grantor or any other Person for any failure
          to
          do so or delay in doing so. Beyond the exercise of reasonable care to assure
          the
          safe custody of Collateral in the Administrative Agent’s possession and the
          accounting for moneys actually received by the Administrative Agent hereunder,
          the Administrative Agent shall have no duty or liability to exercise or
          preserve
          any rights, privileges or powers pertaining to the Collateral.

         

        SECTION
          10
 Remedies.

         

        (a)    Remedies.
          During the
          continuance of any Event of Default, the Administrative Agent shall have,
          in
          addition to all other rights and remedies granted to it in this Agreement,
          the
          Credit Agreement or any other Loan Document, all rights and remedies of
          a
          secured party under the UCC and other applicable laws. Without limiting
          the
          generality of the foregoing, each Grantor agrees that:

         

        (i)    The
          Administrative
          Agent may peaceably and without notice enter any premises of any Grantor,
          take
          possession of any Collateral, remove or dispose of all or part of the Collateral
          on any premises of any Grantor or elsewhere, or, in the case of

          
            
              
              

            

            
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        Equipment,
          render
          it nonfunctional, and otherwise collect, receive, appropriate and realize
          upon
          all or any part of the Collateral, and demand, give receipt for, settle,
          renew,
          extend, exchange, compromise, adjust, or sue for all or any part of the
          Collateral, as the Administrative Agent may determine.

         

        (ii)    The
          Administrative
          Agent may require any Grantor to assemble all or any part of the Collateral
          and
          make it available to the Administrative Agent, at any place and time designated
          by the Administrative Agent.

         

        (iii)    The
          Administrative
          Agent may use or transfer any of any Grantor’s rights and interests in any
          Intellectual Property Collateral, by license, by sublicense (to the extent
          permitted by an applicable license) or otherwise, on such conditions and in
          such manner as the Administrative Agent may determine.

         

        (iv)    The
          Administrative
          Agent may secure the appointment of a receiver of the Collateral or any
          part
          thereof (to the extent and in the manner provided by applicable
          law).

         

        (v)    The
          Administrative
          Agent may withdraw (or cause to be withdrawn) any and all funds from any
          Deposit
          Accounts or securities accounts.

         

        (vi)    The
          Administrative
          Agent may sell, resell, lease, use, assign, transfer or otherwise dispose
          of any
          or all of the Collateral in its then condition or following any commercially
          reasonable preparation or processing (utilizing in connection therewith
          any of
          any Grantor’s assets, without charge or liability to the Administrative Agent
          therefor) at public or private sale, by one or more contracts, in one or
          more
          parcels, at the same or different times, for cash or credit or for future
          delivery without assumption of any credit risk, all as the Administrative
          Agent
          deems advisable; provided,
however,
          that such Grantor
          shall be credited with the net proceeds of sale only when such proceeds
          are
          finally collected by the Administrative Agent. The Administrative Agent
          and each
          of the Lenders shall have the right upon any such public sale, and, to
          the
          extent permitted by law, upon any such private sale, to purchase the whole
          or
          any part of the Collateral so sold, free of any right or equity of redemption,
          which right or equity of redemption each Grantor hereby releases, to the
          extent
          permitted by law. The Administrative Agent shall give each Grantor such
          notice
          of any public or private sale as may be required by the UCC or other applicable
          law. Each Grantor recognizes that the Administrative Agent may be unable
          to make
          a public sale of any or all of the Pledged Collateral, by reason of prohibitions
          contained in applicable securities laws or otherwise, and expressly agrees
          that
          a private sale to a restricted group of purchasers for investment and not
          with a
          view to any distribution thereof shall be considered a commercially reasonable
          sale.

         

        (b)    Sale
          of Collateral;
          Administrative Agent’s Obligations.
          Neither the
          Administrative Agent nor any Lender shall have any obligation to clean
          up or
          otherwise prepare the Collateral for sale. The Administrative Agent has
          no
          obligation to attempt to satisfy the Secured Obligations by collecting
          them from
          any other Person liable for them and the Administrative Agent and the Lenders
          may

          
            
              
              

            

            
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        release,
          modify or
          waive any Collateral provided by any other Person to secure any of the
          Secured
          Obligations, all without affecting the Administrative Agent’s or any Lender’s
          rights against the Grantors. Each Grantor waives any right it may have
          to
          require the Administrative Agent or any Lender to pursue any third Person
          for
          any of the Secured Obligations. The Administrative Agent and the Lenders
          may
          comply with any applicable state or federal law requirements in connection
          with
          a disposition of the Collateral and compliance will not be considered adversely
          to affect the commercial reasonableness of any sale of the Collateral.
          The
          Administrative Agent may sell the Collateral without giving any warranties
          as to
          the Collateral. The Administrative Agent may specifically disclaim any
          warranties of title or the like. This procedure will not be considered
          adversely
          to affect the commercial reasonableness of any sale of the Collateral.
          If the
          Administrative Agent sells any of the Collateral upon credit, the Grantors
          will
          be credited only with payments actually made by the purchaser, received
          by the
          Administrative Agent and applied to the indebtedness of the purchaser.
          In the
          event the purchaser fails to pay for the Collateral, the Administrative
          Agent
          may resell the Collateral and the Grantors shall be credited with the proceeds
          of the sale.

         

        (c)    License.
          For the purpose
          of enabling the Administrative Agent to exercise its rights and remedies
          under
          this Section 10 or otherwise in connection with this Agreement, each
          Grantor hereby grants to the Administrative Agent an irrevocable, non-exclusive
          and assignable license (exercisable without payment or royalty or other
          compensation to any Grantor) to use, license or sublicense any Intellectual
          Property Collateral.

         

        (d)    Proceeds
          Account.
          To the extent
          that any of the Secured Obligations may be contingent, unmatured or unliquidated
          at such time as there may exist an Event of Default(including with respect
          to
          undrawn amounts under any Letter of Credit or contingent amounts due under
          any
          Specified Swap Contract), the Administrative Agent may, at its election
          (in
          accordance with the direction of the Majority Lenders), (i) retain the
          proceeds of any sale, collection, disposition or other realization upon
          the
          Collateral (or any portion thereof) in a special purpose
          non-interest-bearing restricted deposit account (the “Proceeds Account”) created
          and maintained by the Administrative Agent for such purpose (which shall
          constitute a Deposit Account included within the Collateral hereunder)
          until
          such time as the Administrative Agent may elect to apply such proceeds
          to the
          Secured Obligations, and each Grantor agrees that such retention of such
          proceeds by the Administrative Agent shall not be deemed strict foreclosure
          with
          respect thereto; (ii) in any manner elected by the Administrative Agent,
          estimate the liquidated amount of any such contingent, unmatured or unliquidated
          claims and apply the proceeds of the Collateral against such amount; or
          (iii) otherwise proceed in any manner permitted by applicable law. Each
          Grantor agrees that the Proceeds Account shall be a blocked account and
          that
          upon the irrevocable deposit of funds into the Proceeds Account, such Grantor
          shall not have any right of withdrawal with respect to such funds. Accordingly,
          each Grantor irrevocably waives until the termination of the security interests
          granted under this Agreement in

          
            
              
              

            

            
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        accordance
          with
          Section 24 the right to make any withdrawal from the Proceeds Account and
          the right to instruct the Administrative Agent to honor drafts against
          the
          Proceeds Account.

         

        (e)    Application
          of
          Proceeds.
          Subject to
          subsection (d), cash proceeds actually received from the sale or other
          disposition or collection of Collateral, and any other amounts received
          in
          respect of the Collateral the application of which is not otherwise provided
          for
          herein, shall be applied in the order specified in Section 9.03 of the
          Credit
          Agreement. Any surplus thereof which exists after payment and performance
          in
          full of the Secured Obligations shall be promptly paid over to the Grantors
          entitled thereto or otherwise disposed of in accordance with the UCC or
          other
          applicable law. Each Grantor shall remain liable to the Administrative
          Agent and
          other Secured Parties for any deficiency which exists after any sale or
          other
          disposition or collection of Collateral.

         

        SECTION
          11
 Certain
          Waivers.
          Each Grantor
          waives, to the fullest extent permitted by law, (i) any right of redemption
          with respect to the Collateral, whether before or after sale hereunder,
          and all
          rights, if any, of marshalling of the Collateral or other collateral or
          security
          for the Secured Obligations; (ii) any right to require the Administrative
          Agent or the Lenders (a) to proceed against any Person, (b) to exhaust
          any other collateral or security for any of the Secured Obligations, (c) to
          pursue any remedy in the Administrative Agent’s or any of the Lenders’ power, or
          (d) to make or give any presentments, demands for performance, notices of
          nonperformance, protests, notices of protests or notices of dishonor in
          connection with any of the Collateral; and (iii) all claims, damages, and
          demands against the Administrative Agent or the Lenders arising out of
          the
          repossession, retention, sale or application of the proceeds of any sale
          of the
          Collateral.

         

        SECTION
          12
 Notices.
          All notices or
          other communications hereunder shall be given in the manner and to the
          addresses
          specified in, and shall be effective as provided in, the Credit
          Agreement.

         

        SECTION
          13
 No
          Waiver;
          Cumulative Remedies.
          No failure on the
          part of the Administrative Agent or any Lender to exercise, and no delay
          in
          exercising, any right, remedy, power or privilege hereunder shall operate
          as a
          waiver thereof, nor shall any single or partial exercise of any such right,
          remedy, power or privilege preclude any other or further exercise thereof
          or the
          exercise of any other right, remedy, power or privilege. The rights and
          remedies
          under this Agreement are cumulative and not exclusive of any rights, remedies,
          powers and privileges that may otherwise be available to the Administrative
          Agent or any Lender.

         

        SECTION
          14
 Costs
          and Expenses;
          Indemnification; Other Charges.

          
            
              
              

            

            
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        (a)    Costs
          and
          Expenses.
          The Grantors
          jointly and severally agree to pay on demand:

         

        (i)    the
          reasonable
          out-of-pocket costs and expenses of the Administrative Agent and any of
          its
          Affiliates, and the Administrative Agent’s reasonable Attorney Costs, in
          connection with the negotiation, preparation, execution, delivery and
          administration of this Agreement, and any amendments, modifications or
          waivers
          of the terms thereof, any releases of Collateral, and the custody of the
          Collateral;

         

        (ii)    all
          reasonable
          title, appraisal (including the allocated costs of internal appraisal services),
          survey, audit, consulting, search, recording, filing and similar fees,
          costs and
          expenses incurred or sustained by the Administrative Agent or any of its
          Affiliates in connection with this Agreement or the Collateral; and

         

        (iii)    all
          costs and
          expenses of the Administrative Agent and its Affiliates, including all
          Attorney
          Costs, in connection with the enforcement or attempted enforcement of,
          and
          preservation of any rights or interests under, this Agreement, any out-of-court
          workout or other refinancing or restructuring or in any bankruptcy case,
          and the
          protection, sale or collection of, or other realization upon, any of the
          Collateral, including all expenses of taking, collecting, holding, sorting,
          handling, preparing for sale, selling, or the like, and other such expenses
          of
          sales and collections of Collateral, and any and all losses, costs and
          expenses
          sustained by the Administrative Agent and any Lender as a result of any
          failure
          by any Grantor to perform or observe its obligations contained
          herein.

         

        (b)    Indemnification.
          The Grantors
          jointly and severally hereby agree to indemnify, defend and hold the
          Agent-Related Persons, and each Secured Party and their respective Affiliates,
          directors, officers, employees, counsel, agents and attorneys-in-fact
          (collectively the “Indemnitees”)
          from and against
          any and all liabilities, obligations, losses, damages, penalties, claims,
          demands, actions, judgments, suits, costs, expenses and disbursements (including
          Attorney Costs) of any kind or nature whatsoever which may at any time
          be
          imposed on, incurred by or asserted against any such Indemnitee in any
          way
          relating to or arising out of or in connection with (i) the execution,
          delivery,
          enforcement, performance or administration of this Agreement or other Loan
          Document to which any Grantor is a party or any other agreement, letter
          or
          instrument delivered in connection with the transactions contemplated thereby
          or
          the consummation of the transactions contemplated thereby, or (ii) any
          actual or
          prospective claim, litigation, investigation or proceeding relating to
          any of
          the foregoing, whether based on contract, tort or any other theory (including
          any investigation of, preparation for, or defense of any pending or threatened
          claim, investigation, litigation or proceeding) and regardless of whether
          any
          Indemnitee is a party thereto (all the foregoing, collectively, the “Indemnified
          Liabilities”), in all cases, whether or not caused by or arising, in whole or in
          part, out of the negligence of the Indemnitee; provided that such indemnity
          shall not, as to any Indemnitee, be available to the extent that such
          liabilities, obligations, losses,

          
            
              
              

            

            
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        damages,
          penalties,
          claims, demands, actions, judgments, suits, costs, expenses or disbursements
          (x)
          are determined by a court of competent jurisdiction by final and nonappealable
          judgment to have resulted to have resulted from the gross negligence or
          willful
          misconduct of such Indemnitee or (y) result from a claim brought by Holdings
          or
          any other Loan Party against an Indemnitee for breach in bad faith of such
          Indemnitee’s obligations hereunder or under any other Loan Document, if Holdings
          or such Loan Party has obtained a final and nonappealable judgment in its
          favor
          on such claim as determined by a court of competent jurisdiction. No Indemnitee
          shall be liable for any damages arising from the use by others of any
          information or other materials obtained through IntraLinks or other similar
          information transmission systems in connection with this Agreement, except
          to
          the extent such damages are determined by a court of competent jurisdiction
          by
          final and nonappealable judgment to have resulted from the gross negligence
          or
          willful misconduct of such Indemnitee, nor shall any Indemnitee have any
          liability for any indirect or consequential damages relating to this Agreement
          or any other Loan Document or arising out of its activities in connection
          herewith or therewith (whether before or after the Effective Date).

         

        (c)    Other
          Charges.
          The Grantors
          jointly and severally agree to indemnify the Administrative Agent and each
          of
          the other Secured Parties against and hold each of them harmless from any
          and
          all present and future stamp, transfer, documentary and other such taxes,
          levies, fees, assessments and other charges made by any jurisdiction by
          reason
          of the execution, delivery, performance and enforcement of this
          Agreement.

         

        (d)    Interest.
          Any amounts
          payable to the Administrative Agent or any Secured Party under this
          Section 14 or otherwise under this Agreement if not paid upon demand shall
          bear interest from the date of such demand until paid in full, at a fluctuating
          interest rate per annum at all times equal to the default rate of interest
          applicable to Base Rate Loans specified in Section 2.10(c) of the Credit
          Agreement to the fullest extent permitted by applicable Law. Any such interest
          shall be due and payable upon demand and shall be calculated on the basis
          of a
          year of 365 or 366 days, as the case may be, and the actual number of days
          elapsed.

         

        (e)    Payment.
          Any All amounts
          due under this Section 14 shall be payable within ten Business Days after
          demand
          therefor. 

         

        (f)    Survival.
          The agreements in
          this Section 14 shall survive the termination of the Commitments and repayment
          of all Secured Obligations.

        
          
            
            

          

          
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        SECTION
          15
 Binding
          Effect.
          This Agreement
          shall be binding upon, inure to the benefit of and be enforceable by any
          Grantor, the Administrative Agent , each Secured Party, each Indemnified
          Person
          referred to in Section 14 and their respective successors and assigns and
          shall bind any Person who becomes bound as a debtor to this
          Agreement.

         

        SECTION
          16
 Governing
          Law.
          THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
          THE LAW
          OF THE STATE OF CALIFORNIA, EXCEPT AS REQUIRED BY MANDATORY PROVISIONS
          OF LAW
          AND TO THE EXTENT THE VALIDITY OR PERFECTION OF THE SECURITY INTERESTS
          HEREUNDER, OR THE REMEDIES HEREUNDER, IN RESPECT OF ANY COLLATERAL ARE
          GOVERNED
          BY THE LAW OF A JURISDICTION OTHER THAN CALIFORNIA; PROVIDED THAT THE
          ADMINISTRATIVE AGENT SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.
          

         

        SECTION
          17
 Forum
          Selection and
          Consent to Jurisdiction.

         

        (a)    SUBMISSION
          TO
          JURISDICTION. THE GRANTORS AND ADMINISTRATIVE AGENT EACH IRREVOCABLY AND
          UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
          JURISDICTION OF THE COURTS OF THE STATE OF CALIFORNIA SITTING IN SAN FRANCISCO
          COUNTY AND OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT
          OF
          CALIFORNIA, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
          PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY DOCUMENT
          RELATING
          HERETO, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF
          THE
          PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN
          RESPECT
          OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH CALIFORNIA
          STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH
          FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT
          IN ANY
          SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
          JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY
          LAW.
          NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE
          AGENT,
          ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
          PROCEEDING RELATING TO THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO AGAINST
          HOLDINGS OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY
          JURISDICTION.

         

        (b)    WAIVER
          OF VENUE.
          THE GRANTORS AND ADMINISTRATIVE AGENT EACH IRREVOCABLY AND UNCONDITIONALLY
          WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY

          
            
              
              

            

            
              Exhibit
                I
31

              
                

              

            

            
              Table
                of Contents

            

          

        OBJECTION
          THAT IT
          MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING
          ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO
          IN
          ANY COURT REFERRED TO IN PARAGRAPH (A) OF THIS SECTION. EACH OF THE PARTIES
          HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
          LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION
          OR
          PROCEEDING IN ANY SUCH COURT.

         

        (c)    SERVICE
          OF PROCESS.
          EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER
          PROVIDED FOR NOTICES IN SECTION 11.02 OF THE CREDIT AGREEMENT. NOTHING
          IN THIS
          AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN
          ANY
          OTHER MANNER PERMITTED BY APPLICABLE LAW.

         

        SECTION
          18
 WAIVER
          OF JURY
          TRIAL.
          EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
          BY
          APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
          DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
          ANY OTHER
          LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER
          BASED
          ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
          THAT NO
          REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
          EXPRESSLY
          OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION,
          SEEK
          TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
          PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER
          LOAN
          DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
          IN THIS
          SECTION. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
          SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE OTHER LOAN
          DOCUMENTS.

         

        SECTION
          19
 Entire
          Agreement;
          Amendment.
          This Agreement,
          together with the other Loan Documents, embodies the entire agreement and
          understanding among the Grantors, the Lenders and the Administrative Agent,
          and
          supersedes all prior or contemporaneous agreements and understandings of
          such
          Persons, verbal or written, relating to the subject matter hereof and thereof
          and shall not be amended except by the written agreement of the parties
          as
          provided in the Credit Agreement.

        
          
            
            

          

          
            Exhibit
              I
32

            
              

            

          

          
            Table
              of Contents

          

        

         

        SECTION
          20
 Severability.
          If any provision
          of this Agreements or the other Loan Documents is held to be illegal, invalid
          or
          unenforceable, (a) the legality, validity and enforceability of the remaining
          provisions of this Agreement and the other Loan Documents shall not be
          affected
          or impaired thereby and (b) the parties shall endeavor in good faith
          negotiations to replace the illegal, invalid or unenforceable provisions
          with
          valid provisions the economic effect of which comes as close as possible
          to that
          of the illegal, invalid or unenforceable provisions. The invalidity of
          a
          provision in a particular jurisdiction shall not invalidate or render
          unenforceable such provision in any other jurisdiction.

         

        SECTION
          21
 Counterparts.
          This Agreement
          may be executed in one or more counterparts, each of which shall be deemed
          an
          original, but all of which together shall constitute one and the same
          instrument.

         

        SECTION
          22
 Incorporation
          of
          Provisions of the Credit Agreement.
          To the extent the
          Credit Agreement contains provisions of general applicability to the Loan
          Documents, including any such provisions contained in Article XI thereof,
          such provisions are incorporated herein by this reference.

         

        SECTION
          23
 No
          Inconsistent
          Requirements.
          Each Grantor
          acknowledges that this Agreement and the other Loan Documents may contain
          covenants and other terms and provisions variously stated regarding the
          same or
          similar matters, and agrees that all such covenants, terms and provisions
          are
          cumulative and all shall be performed and satisfied in accordance with
          their
          respective terms.

         

        SECTION
          24
 Termination;
          Releases. (i) (i) Upon
          the
          termination of the Commitments of the Lenders the surrender of any Letters
          of
          Credit issued for the account of any Grantor under the Credit Agreement,
          termination of all Specified Swap Contracts and payment and performance
          in full
          of all Secured Obligations, the security interests granted under this Agreement
          shall terminate and the Administrative Agent shall promptly execute and
          deliver
          to each Grantor such documents and instruments reasonably requested by
          such
          Grantor as shall be necessary to evidence termination of all security interests
          given by any Grantor to the Administrative Agent hereunder;
          (ii) Concurrently with any permitted disposition of Collateral under the
          Loan Documents, the security interest hereunder shall automatically be
          released
          from the Collateral so disposed of; provided,
however,
          that the security
          interest shall continue in the Proceeds thereof. Upon satisfaction of all
          conditions precedent to any permitted disposition set forth herein or in
          the
          other Loan Documents, the Administrative Agent shall execute and deliver
          any
          releases or other documents reasonably requested by the relevant Grantor
          to
          accomplish or confirm the release of

          
            
              
              

            

            
              Exhibit
                I
33

              
                

              

            

            
              Table
                of Contents

            

          

        Collateral
          provided
          by this Section. Any such release shall specifically describe the portion
          of the
          Collateral to be released, shall be expressed to be unconditional and shall
          be
          without recourse or warranty (other than a warranty that the Administrative
          Agent has not assigned its rights and interests to any other
          Person).

         

        SECTION
          25
 Accession.
          Upon execution
          and delivery to the Administrative Agent of an Additional Guarantor Accession
          Agreement by a Subsidiary of Holdings as provided in Section 7.13 of the
          Credit Agreement, effective as of the Additional Guarantor Accession Date
          applicable thereto, such Guarantor shall be deemed a Grantor party hereto,
          and
          this Agreement shall be deemed amended to include any amendments to the
          Schedules provided by such Subsidiary in connection therewith.

         

        SECTION
          26
 Amendment
          and
          Restatement.
          On and after the
          Effective Date, this Agreement shall amend, restate and supersede in its
          entirety and replace the Existing Security Agreement; provided, however,
          that
          the execution and delivery of this Agreement and the other Loan Documents
          shall
          not (a) operate as a waiver of any right, power or remedy of the Secured
          Parties
          under the Existing Security Agreement and the other related documents,
          except to
          the extent expressly waived in this Agreement and the other Loan Documents,
          (b)
          extinguish, impair or constitute a novation of any obligations of Holdings
          or
          any other Grantor under the Existing Security Agreement or the related
          documents
          except to the extent any such obligation is actually satisfied by Holdings
          or
          the relevant Grantor thereunder or (c) extinguish or impair any indemnification
          or similar rights under the Existing Security Agreement which by their
          terms
          would survive the termination of the Existing Security Agreement.

         

         

        [Remainder
          of
          page intentionally left blank]

        
          
            
            

          

          
            Exhibit
              I
34

            
              

            

          

          
            Table
              of Contents

          

        

         

        IN
          WITNESS WHEREOF, the
          parties hereto
          have caused this Agreement to be duly executed and delivered in San Francisco,
          California, by their proper and duly authorized officers as of the day
          and year
          first above written.

         

        GRANTORS:

         

        BUILDING
          MATERIALS
          HOLDING CORPORATION

         

        By:
          _______________________________________

        Name:

        Title:

        
           

        

         

        BMC
          WEST
          CORPORATION

        
 

        

        By:________________________________________

        Name:

        Title:

         

        BMC
          WEST
          CORPORATION SOUTHCENTRAL

         

        By:________________________________________

        Name:

        Title:

         

        BMCW
          SOUTHCENTRAL,
          L.P.

         

        By:
          BMC WEST
          CORPORATION 

        SOUTHCENTRAL,
          its
          General Partner

         

        By:________________________________________

        Name:

        Title:

        
          
            
            

          

          
            Exhibit
              I
35

            
              

            

          

          
            Table
              of Contents

          

        

         

        BMCW,
          LLC

         

        By:
          BMC WEST
          CORPORATION, its Managing Member

         

        By:________________________________________

        Name:

        Title:

         

        SELECTBUILD
          CONSTRUCTION, INC. 
(formerly known as BMC Construction, Inc.)

         

        By:________________________________________

        Name:

        Title:

        
 

        KBI
          CONSTRUCTION,
          LLC

         

        By:
          SELECTBUILD
          CONSTRUCTION, INC.,
its Managing Member

         

        By:________________________________________

        Name:

        Title:

         

        KB
          INDUSTRIES LIMITED PARTNERSHIP

         

        By:
          BUILDING
          MATERIALS HOLDING CORPORATION,
its General Partner

         

        By:_________________________________________

        Name:

        Title:

        
          
            
            

          

          
            Exhibit
              I
36

            
              

            

          

          
            Table
              of Contents

          

        

         

        VAUGHN
          ROAD, L.L.C.

         

        By:
          SELECTBUILD
          CONSTRUCTION, INC.,
its Sole Member 

         

        By:________________________________________

        Name:

        Title:

         

        C
          CONSTRUCTION, INC.
(successor by merger to KBI Concrete, LLC
and Total
          Concrete, LLC)

         

        By:________________________________________

        Name:

        Title:

         

        KBI
          CONSTRUCTION,
          LLC

         

        By:
          SELECTBUILD
          CONSTRUCTION, INC.,
its Sole Member 

         

        By:________________________________________

        Name:

        Title:

         

        RJ
          NORCAL, LLC

         

        By:
          SELECTBUILD
          CONSTRUCTION, INC.,
its Sole Member 

         

        By:________________________________________

        Name:

        Title:

        
          
            
            

          

          
            Exhibit
              I
37

            
              

            

          

          
            Table
              of Contents

          

        

         

        KBI
          NORCAL GENERAL
          PARTNERSHIP

         

        By:________________________________________

        Name:

        Title:

         

        KBI
          NORCAL WINDOWS,
          INC. 

         

        By:_________________________________________

        Name:

        Title:

         

        KBI
          STUCCO,
          INC.

         

        By:_________________________________________

        Name:

        Title:

         

        TWF
          CONSTRUCTION,
          INC.

         

        By:_________________________________________

        Name:

        Title:

         

        KBI
          WINDOWS,
          INC.

         

        By:_________________________________________

        Name:

        Title:

         

        H.N.R.
          FRAMING
          SYSTEMS INC.

         

        By:_________________________________________

        Name:

        Title:

        
          
            
            

          

          
            Exhibit
              I
38

            
              

            

          

          
            Table
              of Contents

          

        

         

        FSC
          CONSTRUCTION,
          INC.

         

        By_________________________________________

        Name:

        Title:

         

        BMC
          REALTY,
          INC.

         

        By:_________________________________________

        Name:

        Title:

         

        SELECTBUILD
          FLORIDA, LLC

         

        By:_________________________________________

        Name:

        Title:

         

        BBP
          CONCRETE
          CO.

         

        By:_________________________________________

        Name:

        Title:

         

        BBP
          CONSTRUCTION
          CO.

         

        By:_________________________________________

        Name:

        Title:

        
          
            
            

          

          
            Exhibit
              I
39

            
              

            

          

          
            Table
              of Contents

          

        

         

        BBP
          COMMERCIAL
          CO.

         

        By:________________________________________

        Name:

        Title:

         

        TBA
          MATERIALS,
          LLC

         

        By:
          SELECTBUILD
          CONSTRUCTION, INC.,
its Sole Member

         

        By:________________________________________

        Name:

        Title:

         

        SEVENTIETH
          AND
          NORTHERN AVENUE HOLDINGS, LLC

         

        By:
          SELECTBUILD
          CONSTRUCTION, INC.,
its Sole Member

         

        By:________________________________________

        Name:

        Title:

         

        SELECTBUILD
          DISTRIBUTION, LLC

         

        By:
          SELECTBUILD
          CONSTRUCTION, INC.,
its Sole Member

         

        By:_______________________________________

        Name:

        Title:

         

        
          
            
            

          

          
            Exhibit
              I
40

            
              

            

          

          
            Table
              of Contents

          

        

        SELECTBUILD
          ARIZONA, LLC

         

        By:
          SELECTBUILD
          CONSTRUCTION, INC.,
its Sole Member

         

        By:_______________________________________

        Name:

        Title:

         

        ADMINISTRATIVE
          AGENT:

         

        WELLS
          FARGO BANK,
          NATIONAL ASSOCIATION

         

         

        By:_______________________________________

        Name:____________________________________

        Title:_____________________________________

         

         

        By:______________________________________

        Name:___________________________________

        Title:_____________________________________

        
          
            
            

          

          
            Exhibit
              I
41

            
              

            

          

          
            Table
              of Contents

          

        

         

        SCHEDULE
          1

         

        to
          the Security
          Agreement

         

        
          	
                  1.

                	
                  Locations
                    of Chief Executive Office and other Locations, including of
                    Collateral

                

        

         

        
          	 	
                  a.

                	
                  Chief
                    Executive Office and Principal Place of
                    Business:

                

        

         

         

         

         

         

         

        
          	 	
                  b.

                	
                  Other
                    locations where any Grantor conducts business or Collateral is
                    kept:

                

        

         

         

         

         

         

         

        
          	
                  2.

                	
                  Locations
                    of Books Pertaining to Rights to
                    Payment

                

        

         

         

         

         

         

         

        
          	
                  3.

                	
                  Jurisdiction
                    of Organization

                

        

         

         

         

         

         

         

        
          	
                  4.

                	
                  Trade
                    Names and Trade Styles; Other Corporate, Trade or Fictitious
                    Names;
                    Etc.

                

        

         

        
          
            
            

          

          
            1

            
              

            

          

          
            Table
              of Contents

          

        

        
          	
                  5.

                	
                  Deposit
                    Accounts

                

        

         

         

         

         

         

         

        
          	
                  6.

                	
                  Investment
                    Property

                

        

         

         

         

         

         

         

        
          	
                  7.

                	
                  Instruments
                    and Chattel Paper

                

        

         

         

         

         

         

         

        
          	
                  8.

                	
                  Leased
                    Equipment

                

        

         

         

         

         

         

         

        
          	
                  9.

                	
                  Commercial
                    Tort Claims

                

        

         

         

         

         

         

         

        
          	
                  10.

                	
                  Letter-of-Credit
                    Rights

                

        

         

         

         

         

         

         

        
          
            
            

          

          
            2

            
              

            

          

          
            Table
              of Contents

          

        

         

        SCHEDULE
          2

         

        to
          the Security
          Agreement

         

        
          	
                  1.

                	
                  Patents,
                    Trademarks, Copyrights,
                    Etc.

                

        

         

         

         

         

         

         

        
          
            
            

          

          
            1

            
              

            

          

          
            Table
              of Contents

          

        

         

        SCHEDULE 3

         

        to
          the Security
          Agreement

        

        1.
          Pledged
          LLC
          Interests.
          Interests in each
          limited liability company that is a Subsidiary as follows: 

         

        
          	
                  Subsidiary
                    and

                  Percentage
                    Ownership Interest

                	
                  Number
                    of Units

                	
                  Date
                    of Issuance of Units

                
	 	 	 
	 	 	 
	 	 	 
	 	 	 

        

        2.
          Pledged
          Partnership Interests.
          Interests in each
          general partnership, limited partnership, limited liability partnership
          or other
          partnership that is a Subsidiary as follows: 

         

        
          	
                  Subsidiary
                    and

                  Percentage
                    Ownership Interest

                	
                  Type
                    of

                  Partnership
                    Interest (e.g.,
                    general, limited)

                	
                   

                  Date
                    of Issuance 

                  or
                    Formation

                	
                  Number
                    of Units or Other Ownership Interests

                
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

        

        3.
          Pledged
          Shares.
          Capital stock of
          each Subsidiary being represented by stock certificates as follows:

         

        
          	
                  Subsidiary
                    and

                  Percentage
                    Ownership Interest

                	
                  Certificate
                    No.

                	
                  Certificate
                    Date

                	
                  No.
                    and Class 

                  of
                    Shares

                
	 	 	 	 
	 	 	 	 
	 	 	 	 

        

         

        
          
            
              
              

            

            
              1

              
                

              

            

            
              Table
                of Contents

            

          

        

         

        2. Pledged
          Debt

         

        
          
            
            

          

          
            2

            
              

            

          

          
            Table
              of Contents

          

        

         

        SCHEDULE 4

         

        to
          the Security
          Agreement

        

        

        Filing
          Offices

         

         

        
          
            
            

          

          
            3

            
              

            

          

          
            Table
              of Contents

          

        

         

        EXHIBIT
          J

         

        FORM
          OF UPDATE
          CERTIFICATE

         

         

        for
          the Reporting
          Period ended __________________, 20__

         

        TO:
          Wells Fargo
          Bank, National Association, as Administrative Agent

         

        Reference
          is made
          to the Second Amended and Restated Credit Agreement, dated as of November
          __,
          2006 (as extended, renewed, amended or restated from time to time, the
          “Credit
          Agreement”),
          among Building
          Materials Holding Corporation (“Holdings”),
          BMC West
          Corporation (the “Company”)
          and certain
          other affiliates of Holdings, as guarantors, JPMorgan Chase Bank, N.A.,
          as
          Documentation Agent, SunTrust Bank, as Joint Lead Arranger and Co-Syndication
          Agent, BNP Paribas, as Joint Lead Arranger and Co-Syndication Agent, the
          several
          financial institutions from time to time party thereto (the “Lenders”)
          and Wells Fargo
          Bank, National Association, as issuing bank of certain letters of credit
          (in
          such capacity, the “L/C
          Issuer”),
          as Swingline
          Lender, as administrative agent (in such capacity, the “Administrative
          Agent”),
          as Joint Lead
          Arranger and Joint Book Manager. Capitalized terms used and not defined
          herein
          shall have the meanings assigned to such terms in the Credit
          Agreement.

         

        This
          Update
Certificate
          is provided
          pursuant to Section
          7.02(h)
          of the Credit
          Agreement without limiting the ongoing reporting obligations of the Loan
          Parties
          under the Credit Agreement and the Security Agreement (as amended) with
          respect
          to the matters covered by this Update Certificate.

         

        The
          undersigned
          hereby certifies to the Administrative Agent and the Lenders on behalf
          of each
          Loan Party that, during the fiscal quarter ended __________, 20_ (the “Reporting
          Period”), there has not been (i) any change in its corporate name or in its
          jurisdiction of organization, (ii) any change in the location of its chief
          executive office or (iii) the creation or acquisition of any Wholly-Owned
          Subsidiary by a Loan Party, except as follows:

         

        1.    Names.

         

        (a)    During
          the
          Reporting Period, a Loan Party changed its corporate name as
          follows:

         

        (b)    During
          the
          Reporting Period, a Loan Party changed its jurisdiction of organization
          as
          follows:

         

        2.    Locations.
During
          the
          Reporting Period, a Loan Party changed the location of its chief executive
          office as follows:

         

        3.    Subsidiaries.
          During the
          Reporting Period, a Loan Party created or acquired the following direct
          or
          indirect Wholly-Owned Subsidiaries:

         

        The
          undersigned
          hereby certifies to the Administrative Agent and the Lenders on behalf
          of each
          Loan Party that, during the Reporting Period, no new Deposit Account
          or

          
            
              
              

            

            
              Exhibit
                J

1

              
                

              

            

            
              Table
                of Contents

            

          

        securities
          account
          with respect to any Investment Property (as such terms are defined in the
          Security Agreement) has been established, except as follows:

         

        Consistent
          with the
          provisions of revised Article 9 of the Uniform Commercial Code of the relevant
          jurisdiction(s) (as and when adopted), the Loan Parties hereby authorize
          the
          Administrative Agent to file (with or without a Loan Party’s signature), at any
          time and from time to time thereafter, all financing statements, assignments,
          continuation financing statements, financing statement amendments, termination
          statements and other documents and instruments, in form reasonably satisfactory
          to the Administrative Agent, and take all other action, as the Administrative
          Agent may deem reasonable, to perfect and continue perfected, maintain
          the
          priority of or provide notice of any security interest of the Administrative
          Agent in the Collateral and to accomplish the purposes of the Credit
          Agreement.

         

        IN
          WITNESS WHEREOF, the undersigned has executed this Update
          Certificate
          on behalf of
          itself and each other Loan Party this ____________ day of
          ____________________.

         

        BUILDING
          MATERIALS
          HOLDING CORPORATION

         

         

        By:
          ____________________________

        Name:

        Title:

        
          
            
            

          

          Exhibit
            J
2

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